Customers Bancorp(US:CUBI)2020-10-30 17:21Financial Performance - The company expects to earn $100 million in pre-tax origination fees from PPP loans, with the majority recognized in the first half of 2021[8] - The company reported a Return on Average Assets (ROAA) of 1.12% and a Return on Common Equity (ROCE) of 23.05% for Q3 2020[8] - Core earnings per share (EPS) was $1.20 in Q3 2020, compared to $0.74 in Q3 2019[10] - Tangible book value per share was $25.97 as of September 30, 2020[10] - The company projects the recognition of PPP fees and interest income to drive the company's Tangible Common Equity (TCE) to Total Assets (TA) Ratio to approximately 8.0% and Total Capital Ratio to approximately 14.0% by year-end 2021[11] Asset Quality - Non-Performing Assets (NPAs) to total assets ratio decreased to 0.34% at the end of Q3 2020 from 0.48% three months prior[8, 13] - The coverage ratio, excluding PPP loans, was 2.02% at the end of Q3 2020[8, 13] - Commercial criticized loans were 2.56% of total loans and leases, excluding PPP balances, at the end of Q3 2020[8, 16] - Total loan deferrals were 2.6% of total loans and leases, excluding PPP balances, as of September 30, 2020[8, 17] Loan and Deposit Portfolio - Total loans and leases, excluding PPP balances, increased by $1.4 billion, or 13% year-over-year[9] - Commercial and Industrial (C&I) loans grew by 23%, or $408 million year-over-year[9] - Demand deposits increased by 71% year-over-year[9] - The total cost of deposits decreased by 115 basis points year-over-year to 0.67%[9]