Record Full Year 2021 Net Income of $300.1
million, or $8.91 Per Diluted Share, Up 153% Over Full Year
2020
Record Deposit Growth of $5.5 billion,
Up 48% Year-Over-Year
Q4 2021 Net Income of $98.6 million, or
$2.87 Per Diluted Share, Up 87% Over Q4 2020
Q4 2021 ROAA of 2.08% and ROCE of
33.2%
Q4 2021 Loan Growth of $1.0 billion
(Excluding PPP Loans and Loans to Mortgage Companies), Up 13% Over
Q3 2021
Q4 2021 Tangible Book Value Increased 33%
Over Q4 2020
- Full year 2021 net income available to common shareholders was
$300.1 million, or $8.91 per diluted share, up 153% over full year
2020.
- Full year 2021 core earnings (a non-GAAP measure) were $343.6
million, or $10.20 per diluted share, up 187% over full year
2020.
- Full year 2021 core earnings (excluding Paycheck Protection
Program ("PPP") loans) (a non-GAAP measure) were $148.5 million, or
$4.41 per diluted share, up 90% over full year 2020.
- Q4 2021 net income available to common shareholders was $98.6
million, or $2.87 per diluted share, up 87% over Q4 2020.
- Q4 2021 core earnings (a non-GAAP measure) were $100.1 million,
or $2.92 per diluted share, up 83% over Q4 2020.
- Q4 2021 ROAA was 2.08% and Core ROAA (a non-GAAP measure) was
2.11%. Q4 2020 ROAA was 1.23% and Core ROAA (a non-GAAP measure)
was 1.26%.
- Q4 2021 ROCE was 33.2% and Core ROCE (a non-GAAP measure) was
33.7%. Q4 2020 ROCE was 24.3% and Core ROCE (a non-GAAP measure)
was 25.1%.
- Adjusted pre-tax pre-provision net income (a non-GAAP measure)
for Q4 2021 was $129.3 million, an increase of 66% over Q4 2020. Q4
2021 adjusted pre-tax pre-provision ROAA (a non-GAAP measure) was
2.67% compared to 1.70% for Q4 2020.
- Q4 2021 commercial and industrial (C&I) loan growth of
$742.3 million (up 29%), multifamily loan growth of $99.1 million
(up 7%), and consumer loan growth of $207.5 million (up 11%) over
Q3 2021.
- Net interest margin (a non-GAAP measure) was 4.14% for Q4 2021
and 3.70% for full year 2021. Net interest margin, excluding the
impact of PPP loans (a non-GAAP measure) was 3.12% for Q4 2021 and
3.16% for full year 2021. Significant excess cash balances further
negatively impacted net interest margin in Q4 2021 by approximately
6 basis points.
- Digital asset-related deposits increased by $400 million,
or 27%, in Q4 2021, bringing total CBIT-related deposits to
$1.9 billion by December 31, 2021.
- Total deposits increased $5.5 billion, or 48.3% year-over-year,
which included a $6.2 billion, or 130.9%, increase in demand
deposits. The total cost of deposits dropped 22 basis points from
the year-ago quarter.
- Funded, directly or indirectly, about 358,000 PPP loans for
$10.3 billion in total.
- Purchased $313 million PPP loan portfolio in December 2021
at a discount further increasing deferred revenue recognition in
future quarters.
- Technology-led loans sales in Consumer and SBA Groups resulted
in gains realized from the sales of consumer and SBA loans of
$0.7 million and $1.8 million, respectively, in Q4 2021,
bringing full year 2021 gains realized from the sales of consumer
and SBA loans to $5.2 million and $6.2 million,
respectively, approximately 14% higher than targeted total gains of
$10 million for full year 2021.
- Repurchased 527,789 common shares in Q4 2021 at an average
price of $52.41 pursuant to a one-year common stock repurchase
program to repurchase up to 3.2 million shares of common stock
that was adopted in Q3 2021.
- Q4 2021 efficiency ratio was 38.70% compared to 43.56% for Q4
2020. Q4 2021 core efficiency ratio was 38.73% compared to 42.89%
in Q4 2020 (non-GAAP measures).
- Q4 2021 provision for credit losses on loans and leases was
$13.9 million compared to $13.2 million in Q3 2021. At
December 31, 2021, the coverage of credit loss reserves for
loans and leases held for investment, excluding PPP loans (a
non-GAAP measure), was 1.53% compared to 1.65% at
September 30, 2021.
- Non-performing assets were 0.25% of total assets at
December 31, 2021 compared to 0.39% at December 31, 2020.
Allowance for credit losses equaled 278% of non-performing loans at
December 31, 2021, compared to 204% at December 31,
2020.
- All commercial loan deferments became current by December 31,
2021, down from a peak of $1.2 billion in July 2020.
- Well positioned for strong core sustainable growth in 2022 and
2023 and project core earnings (excluding PPP) between $4.75 -
$5.00 in 2022 and well over $6.00 in 2023.
Customers Bancorp, Inc. (NYSE: CUBI), the parent company of
Customers Bank (collectively "Customers" or "CUBI"), today reported
fourth quarter 2021 ("Q4 2021") net income to common shareholders
of $98.6 million, or $2.87 per diluted share, resulting in record
full year 2021 ("FY 2021") net income to common shareholders of
$300.1 million, or $8.91 per diluted share. Q4 2021 core earnings
(a non-GAAP measure) was $100.1 million, or $2.92 per diluted
share, resulting in record FY 2021 core earnings (a non-GAAP
measure) of $343.6 million, or $10.20 per diluted share. Adjusted
pre-tax pre-provision net income was $129.3 million for Q4 2021 and
$469.8 million for FY 2021 (non-GAAP measures). Net interest
margin, tax equivalent ("NIM") was 4.14% for Q4 2021 and 3.70% for
FY 2021 (non-GAAP measures). Excluding PPP, NIM was 3.12% for Q4
2021 and 3.16% for FY 2021 (non-GAAP measures).
“2021 was a remarkable year for our company and we could not be
prouder of our team members who executed superbly to achieve all of
our exceptional accomplishments,” remarked Customers Bancorp
Chairman and CEO, Jay Sidhu. “We made over $300 million in net
income after taxes, provided our shareholders with approximately
$73 million in BMTX stock upon divestiture of BankMobile, helped
save over an estimated 1 million American jobs by supporting about
350,000 small businesses across the country through PPP program
funding of over $10 billion. In October 2021, we launched a
blockchain-based instant payments token that will serve a growing
array of B2B clients who want the benefit of instant payments, and
generated close to $2 billion of low-to-no cost core deposits in
only 90 days. Following a successful soft launch in Q4 2021, we
went into full launch in January 2022. Our organic growth rates
remain remarkable, with our C&I loans growing 45%
year-over-year and non-interest bearing deposits growing 89%. This
combined with our market expansion plans, new teams and new lending
verticals, and strong pipeline leave us very well positioned to
support future growth. We are very excited and optimistic about our
future,” Mr. Sidhu continued.
Paycheck Protection Program (PPP)
We funded, either directly or indirectly, about 256,000 PPP
loans totaling $5.2 billion in 2021, bringing total PPP loans
funded to approximately 358,000 and $10.3 billion. We also earned
close to $350 million of deferred origination fees from the SBA
through the PPP loans, which is significantly accretive to our
earnings and capital levels as these loans are forgiven by the
government. Through year-end 2021, we recognized about $260 million
of these fees in earnings and expect most of the remaining $90
million to be recognized over the next two to three quarters.
Launch of Customers Bank Instant Token (CBITTM)
“We were thrilled to announce that CBIT on the TassatPayTM
payments platform went live in October 2021. We received $1.5
billion in new non-interest bearing demand deposits at September
30, 2021 in anticipation of the soft launch, and added $400 million
of demand deposits in Q4 2021. We not only developed and
implemented this new technology partnership in record time, but did
so following a very thorough strategic initiative process,"
commented Mr. Sidhu. "Following a successful soft launch in Q4
2021, we are pleased to report a full launch of CBIT in January
2022. We believe our technology, compliance and customer service
and support systems are among the best in the country," concluded
Mr. Sidhu.
As of December 31, 2021, $1.9 billion in core low-to-no cost
demand deposits have been attracted to the Bank through this
system. We expect these deposits to grow significantly in 2022,
giving us an opportunity to transform our deposits into high
quality, low-to-no cost, stable and growing deposit franchise.
Key Balance Sheet Trends
Commercial and industrial loans and leases increased $1.0
billion, or 45% year-over-year, to $3.3 billion, consumer
installment loans increased $509.1 million, or 41% year-over-year,
to $1.7 billion, commercial real estate owner occupied loans
increased $82.6 million, or 14% year-over-year, to $654.9 million
and construction loans increased $58.1 million, or 41%
year-over-year, to $199.0 million. These increases in loans and
leases were partially offset by decreases in multi-family loans of
$275.0 million to $1.5 billion and commercial real estate non-owner
occupied loans of $92.6 million to $1.1 billion. “Looking ahead, we
see continued growth in core C&I, multi-family and consumer
loans offsetting the continued expected seasonal and yield curve
related decreases in loans to mortgage companies," stated Mr.
Sidhu.
Total loans and leases, including PPP loans, decreased $1.3
billion, or 8.0%, to $14.6 billion at December 31, 2021 compared to
the year-ago period. As expected, commercial loans to mortgage
companies declined $1.3 billion to $2.4 billion compared to the
year-ago period. PPP loans declined $1.3 billion to $3.3 billion at
December 31, 2021 compared to the year-ago period, primarily driven
by $6.5 billion in forgiveness, repayments and associated net
deferred fees from the new round and earlier rounds of PPP loans,
offset by current year originations and purchases. Excluding PPP
loans and commercial loans to mortgage companies, total loans and
leases increased $1.3 billion, or 17.6%, as the loan mix continued
to improve year-over-year.
Total deposits increased $5.5 billion, or 48.3%, to $16.8
billion at December 31, 2021 compared to the year-ago period. Total
demand deposits increased $6.2 billion, or 130.9%, to $10.9
billion. These increases were offset, in part, by decreases in
savings deposits of $341.5 million, or 26.0%, to $1.0 billion,
money market deposits of $252.4 million, or 5.5%, to $4.3 billion,
and time deposits of $144.6 million, or 22.2%, to $507.3 million.
The total cost of deposits declined by 22 basis points to 0.36% in
Q4 2021 from 0.58% in the year-ago quarter. "Our current spot cost
of deposits was approximately 30 basis points at December 31, 2021,
a dramatic improvement over the prior year. Given the
transformational improvements in the quality of our deposit
franchise over the past year, we feel very well positioned against
future interest rate hikes from a deposit repricing standpoint,"
stated Mr. Sidhu.
Other borrowings increased $99.0 million to $223.1 million at
December 31, 2021 compared to the year-ago period from the issuance
of our 2.875% fixed-to-floating rate senior notes, the proceeds of
which were used to redeem all outstanding shares of our Series C
and Series D Preferred Stock in Q3 2021.
Very Strong Growth in Tangible Common Equity and Tangible
Book Value Per Share
Customers experienced significant improvements in regulatory
capital ratios in Q4 2021 as compared to a year ago. Customers
Bancorp's tangible common equity (a non-GAAP measure) increased by
$339.4 million to $1.2 billion at December 31, 2021 from $885.3
million at December 31, 2020, and the tangible book value per
common share (a non-GAAP measure) increased to $37.21 at December
31, 2021 from $27.92 at December 31, 2020, an increase of 33.3%.
Customers remains well capitalized by all regulatory measures.
At the Customers Bancorp level, the total risk based capital
ratio (estimate) and tangible common equity to tangible assets
ratio ("TCE ratio"), excluding PPP loans (a non-GAAP measure), were
13.2% and 7.5%, respectively, at December 31, 2021.
Loan Portfolio Management During the COVID-19 Crisis
Over the last decade, Customers has developed a suite of
commercial and retail loan products with one particularly important
common denominator: relatively low credit risk assumption. The
Bank’s C&I, mortgage warehouse, specialty finance lines of
business, and multi-family loans for example, are characterized by
conservative underwriting standards and low loss rates. Because of
this emphasis, the Bank’s credit quality to date has been healthy
despite a highly adverse economic environment. Maintaining strong
asset quality also requires a highly active portfolio monitoring
process. In addition to frequent client outreach and monitoring at
the individual loan level, Customers employs a bottom-up data
driven approach to analyze its commercial portfolio.
Strong commercial loan portfolio with very low concentration in
COVID-19 impacted industries and CRE
- All commercial loans previously on deferments became current by
December 31, 2021, down from $73.4 million, or 0.7% of total loans
and leases, excluding PPP loans (a non-GAAP measure), at September
30, 2021. Customers' commercial deferments peaked at about $1.2
billion in July 2020.
- Exposure to industry segments and CRE significantly impacted by
COVID-19 initially is not substantial.
Consumer installment, mortgage and home equity loan portfolios
continue to perform well
- Total consumer-related deferments declined to $6.1 million, or
0.1% of total loans and leases, excluding PPP loans (a non-GAAP
measure), at December 31, 2021, down from $6.7 million at September
30, 2021.
Key Profitability Trends
Net Interest Income
Net interest income totaled $193.7 million in Q4 2021, a
decrease of $26.2 million from Q3 2021, primarily due to lower PPP
loan forgiveness from the first two rounds and the latest round,
which resulted in lower net deferred loan origination fees
recognized in Q4 2021. Excluding PPP loans, average
interest-earning assets increased $1.4 billion. Interest-earning
asset growth was driven by increases in commercial and industrial
loans, consumer installment loans and investment securities, offset
in part by decreases in commercial loans to mortgage companies and
multi-family loans. Compared to Q3 2021, total loan yields
decreased 23 basis points to 5.48% primarily resulting from a lower
average balance of PPP loans in Q4 2021 driven by PPP loan
forgiveness. Excluding PPP loans, the Q4 2021 total loan yield was
relatively unchanged from Q3 2021. Total deposits and borrowing
costs decreased by 4 basis points to 0.46% primarily due to growth
in non-interest-bearing deposits and 4 basis points decrease in the
cost of interest-bearing deposits to 0.50%. "As we've stated
previously, it is difficult to predict net interest income in
future periods because the timing of PPP forgiveness results in the
accelerated recognition of net deferred fees and also affects the
amount of net interest income expected to be earned while the PPP
loans are held on our balance sheet," commented Mr. Sidhu.
Provision for Credit Losses
The provision for credit losses on loans and leases in Q4 2021
was $13.9 million, compared to a $13.2 million provision in Q3
2021. The provision in Q4 2021 was primarily to support the
continued growth in CB Direct consumer installment loan
originations. The allowance for credit losses on loans and leases
represented 1.53% of total loans and leases receivable, excluding
PPP loans (a non-GAAP measure) at December 31, 2021, compared to
1.65% at September 30, 2021 and 1.90% at December 31, 2020.
Customers' non-performing loans at December 31, 2021 were only
0.34% of total loans and leases, an improvement from 0.45% at
December 31, 2020.
Non-Interest Income
Non-interest income totaled $17.0 million for Q4 2021, a
decrease of $8.6 million compared to Q3 2021. The decrease was
primarily due to lower gains from the sale of investment securities
and consumer installment loans of $6.1 million and $3.4 million,
respectively, offset in part by an increase in gains realized from
the sale of SBA loans of $0.5 million. A technology-led new
initiative for selling excess consumer installment loans into
securitizations was launched earlier this year. This resulted in a
$0.7 million gain on sale in Q4 2021, bringing YTD December 2021
consumer loan gains to $5.2 million. The SBA gains were $1.8
million in Q4 2021, bringing the YTD December 2021 SBA gains to
$6.2 million. "We were pleased with the success of this initiative
in 2021, exceeding our initial target by 14%," commented Mr.
Sidhu.
Non-Interest Expense
The management of non-interest expenses remains a priority at
Customers. However, this will not be at the expense of not making
adequate investments with new technologies to support efficient
growth. Our Q4 2021 total non-interest expenses increased by $1.5
million compared to Q3 2021. The increase was primarily due to
higher salaries and employee benefits of $3.7 million mostly due to
increased incentives resulting from record 2021 financial
performance, $1.6 million increase in occupancy expense primarily
associated with the relocation of the Bank headquarters, technology
and deposit servicing-related expenses of $1.8 million, and $1.2
million in charitable contributions and corporate sponsorships.
These increases were offset in part by certain one-time or other
transitory items in Q3 2021 including a $6.2 million make-whole fee
paid to a single high-cost deposit customer and a litigation
settlement amount of $1.2 million.
Taxes
Income tax expense from continuing operations decreased by $23.3
million to $13.0 million in Q4 2021 from $36.3 million in Q3 2021
primarily due to lower pre-tax income from continuing operations
during Q4 2021 compared to Q3 2021 pre-tax income from continuing
operations, an increase in excess tax benefits from stock option
exercises, additional investments in tax credit vehicles and a
reduction in the overall state tax effective rate. The effective
tax rate from continuing operations for FY 2021 was 20%. Customers
expects the full-year 2022 effective tax rate from continuing
operations to be approximately 21% to 23%.
Net Loss From Discontinued Operations
The divestiture of BankMobile Technologies, Inc. was completed
on January 4, 2021, and its historical financial results are
presented as discontinued operations. An income tax expense of $1.6
million was recorded in net loss from discontinued operations in Q4
2021 resulting from the refinement of state income tax expense on
the gain from the divestiture treated as a taxable asset sale for
tax purposes.
BM Technologies, Inc. (BMTX)
We previously entered into a Deposit Servicing Agreement with
BMTX, which was profitable at the time as we were in the early
stage of building out our commercial and digital deposit franchise.
However, with the advent of CBIT, which went into full launch in
January 2022, we now have a low-to-no cost core deposit aggregation
strategy that is expected to be far more profitable. We are
preparing for the expiration of the Deposit Servicing Agreement
scheduled to expire on December 31, 2022, which cost us
approximately $60 million ($48 million after taxes) in 2021 and
will not be renewed. The expiration of the Deposit Servicing
Agreement is expected to be accretive to our 2023 earnings by $60
million (pre-tax). At December 31, 2021, $1.8 billion of deposits
were serviced by BMTX, which we expect to leave the Bank by
December 31, 2022.
Outlook
“Looking ahead, we have sustainable core growth and are very
optimistic about the prospects of our company. We expect strong
core above average low-double-digit growth in loans and deposits,
improving profitability, and an efficiency ratio in the low 40s
through a combination of revenue growth and prudent expense
management over the next two to three years. The best-in-class tech
agility of Customers Bancorp allowed us to be a major participant
in the PPP program, significantly improving our capital ratios. We
also incubated new lines of businesses that leverage our fintech
relationships. In 2021 we launched a private instant,
blockchain-based B2B payments platform with integration of digital
and legacy payment rails. The platform will deliver enhanced
payments functionality for our business clients and is expected to
generate additional deposit growth in targeted niches, such as real
estate, monetary and currency exchanges and institutional
investments. We've achieved significant accretion in our capital
levels over the past 12 months and our credit quality is expected
to remain in line with or better than peers. We project our core
earnings (excluding PPP) to be between $4.75 - $5.00 in 2022 and
well over $6.00 in 2023, two to three years ahead of our previous
guidance of $6.00 by 2025/2026,” concluded Mr. Sidhu.
Webcast
Date: Tuesday, January 25, 2022 Time: 9:00 AM EST
The live audio webcast, presentation slides, and earnings press
release will be made available at
https://www.customersbank.com/investor-relations/ and at the
Customers Bancorp 4th Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by
emailing Customers' Communications & Marketing Director, David
Patti at dpatti@customersbank.com; questions may also be asked
during the webcast through the webcast application.
The webcast will be archived for viewing on the Customers Bank
Investor Relations page and available beginning approximately two
hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is a bank holding company
located in West Reading, Pennsylvania engaged in banking and
related businesses through its bank subsidiary, Customers Bank, a
full-service bank with $19.6 billion in assets at December 31,
2021. A member of the Federal Reserve System with deposits insured
by the Federal Deposit Insurance Corporation, Customers Bank is an
equal opportunity lender that provides a range of banking and
lending services to small and medium-sized businesses,
professionals, individuals and families. Services and products are
available wherever permitted by law through mobile-first apps,
online portals, and a network of offices and branches. Customers
Bank provides blockchain-based digital payments via the Customers
Bank Instant Token (CBITTM) which allows clients to make instant
payments in U.S. dollars, 24 hours a day, 7 days a week, 365 days a
year.
“Safe Harbor” Statement
In addition to historical information, this press release may
contain “forward-looking statements” within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include
statements with respect to Customers Bancorp, Inc.’s strategies,
goals, beliefs, expectations, estimates, intentions, capital
raising efforts, financial condition and results of operations,
future performance and business. Statements preceded by, followed
by, or that include the words “may,” “could,” “should,” “pro
forma,” “looking forward,” “would,” “believe,” “expect,”
“anticipate,” “estimate,” “intend,” “plan,” “project,” or similar
expressions generally indicate a forward-looking statement. These
forward-looking statements involve risks and uncertainties that are
subject to change based on various important factors (some of
which, in whole or in part, are beyond Customers Bancorp, Inc.’s
control). Numerous competitive, economic, regulatory, legal and
technological events and factors, among others, could cause
Customers Bancorp, Inc.’s financial performance to differ
materially from the goals, plans, objectives, intentions and
expectations expressed in such forward-looking statements,
including: the impact of the ongoing pandemic on the U.S. economy
and customer behavior, the impact that changes in the economy have
on the performance of our loan and lease portfolio, the market
value of our investment securities, the continued success and
acceptance of our blockchain payments system, the demand for our
products and services and the availability of sources of funding;
the effects of actions by the federal government, including the
Board of Governors of the Federal Reserve System and other
government agencies, that affect market interest rates and the
money supply; actions that we and our customers take in response to
these developments and the effects such actions have on our
operations, products, services and customer relationships; and the
effects of any changes in accounting standards or policies.
Customers Bancorp, Inc. cautions that the foregoing factors are not
exclusive, and neither such factors nor any such forward-looking
statement takes into account the impact of any future events. All
forward-looking statements and information set forth herein are
based on management’s current beliefs and assumptions as of the
date hereof and speak only as of the date they are made. For a more
complete discussion of the assumptions, risks and uncertainties
related to our business, you are encouraged to review Customers
Bancorp, Inc.’s filings with the Securities and Exchange
Commission, including its most recent annual report on Form 10-K
for the year ended December 31, 2020, subsequently filed quarterly
reports on Form 10-Q and current reports on Form 8-K, including any
amendments thereto, that update or provide information in addition
to the information included in the Form 10-K and Form 10-Q filings,
if any. Customers Bancorp, Inc. does not undertake to update any
forward-looking statement whether written or oral, that may be made
from time to time by Customers Bancorp, Inc. or by or on behalf of
Customers Bank, except as may be required under applicable law.
Q4 2021 Overview
The following table presents a summary of key earnings and
performance metrics for the quarter ended December 31, 2021, the
preceding four quarters, and full year 2021 and 2020:
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share
data and stock price data)
Q4
Q3
Q2
Q1
Q4
Twelve Months Ended
December 31,
2021
2021
2021
2021
2020
2021
2020
GAAP Profitability Metrics:
Net income available to common
shareholders
(from continuing and discontinued
operations)
$
98,647
$
110,241
$
58,042
$
33,204
$
52,831
$
300,134
$
118,537
Per share amounts:
Earnings per share - basic
$
3.02
$
3.40
$
1.80
$
1.04
$
1.67
$
9.29
$
3.76
Earnings per share - diluted
$
2.87
$
3.25
$
1.72
$
1.01
$
1.65
$
8.91
$
3.74
Book value per common share (1)
$
37.32
$
35.24
$
31.94
$
30.13
$
28.37
$
37.32
$
28.37
CUBI stock price (1)
$
65.37
$
43.02
$
38.99
$
31.82
$
18.18
$
65.37
$
18.18
CUBI stock price as % of book value
(1)
175
%
122
%
122
%
106
%
64
%
175
%
64
%
Average shares outstanding - basic
32,625,960
32,449,853
32,279,625
31,883,946
31,638,447
32,312,262
31,506,699
Average shares outstanding - diluted
34,320,327
33,868,553
33,741,468
32,841,711
31,959,100
33,697,547
31,727,784
Shares outstanding (1)
32,913,267
32,537,976
32,353,256
32,238,762
31,705,088
32,913,267
31,705,088
Return on average assets ("ROAA")
2.08
%
2.33
%
1.27
%
0.80
%
1.23
%
1.64
%
0.85
%
Return on average common equity
("ROCE")
33.18
%
40.82
%
23.22
%
14.66
%
24.26
%
28.75
%
14.55
%
Efficiency ratio
38.70
%
33.42
%
46.59
%
48.89
%
43.56
%
40.38
%
48.20
%
Non-GAAP Profitability Metrics
(2):
Core earnings
$
100,095
$
113,876
$
59,303
$
70,308
$
54,588
$
343,582
$
119,526
Adjusted pre-tax pre-provision net
income
$
129,335
$
167,215
$
86,467
$
86,769
$
77,896
$
469,786
$
240,198
Per share amounts:
Core earnings per share - diluted
$
2.92
$
3.36
$
1.76
$
2.14
$
1.71
$
10.20
$
3.77
Tangible book value per common share
(1)
$
37.21
$
35.12
$
31.82
$
30.01
$
27.92
$
37.21
$
27.92
CUBI stock price as % of tangible book
value (1)
176
%
122
%
123
%
106
%
65
%
176
%
65
%
Core ROAA
2.11
%
2.35
%
1.30
%
1.61
%
1.26
%
1.85
%
0.86
%
Core ROCE
33.67
%
42.16
%
23.72
%
31.03
%
25.06
%
32.91
%
14.67
%
Adjusted ROAA - pre-tax and
pre-provision
2.67
%
3.36
%
1.80
%
1.90
%
1.70
%
2.45
%
1.54
%
Adjusted ROCE - pre-tax and
pre-provision
42.82
%
60.81
%
33.27
%
36.80
%
34.20
%
43.88
%
27.76
%
Net interest margin, tax equivalent
4.14
%
4.59
%
2.98
%
3.00
%
2.78
%
3.70
%
2.71
%
Net interest margin, tax equivalent,
excluding PPP loans
3.12
%
3.24
%
3.30
%
2.99
%
3.04
%
3.16
%
2.96
%
Core efficiency ratio
38.73
%
30.36
%
44.33
%
41.13
%
42.89
%
37.71
%
46.92
%
Asset Quality:
Net charge-offs
$
7,582
$
7,104
$
6,591
$
12,521
$
8,472
$
33,798
$
54,807
Annualized net charge-offs to average
total loans and leases
0.21
%
0.17
%
0.16
%
0.33
%
0.21
%
0.22
%
0.41
%
Non-performing loans ("NPLs") to total
loans and leases (1)
0.34
%
0.34
%
0.27
%
0.30
%
0.45
%
0.34
%
0.45
%
Reserves to NPLs (1)
277.72
%
252.68
%
269.96
%
264.21
%
204.48
%
277.72
%
204.48
%
Non-performing assets ("NPAs") to total
assets
0.25
%
0.27
%
0.24
%
0.26
%
0.39
%
0.25
%
0.39
%
Customers Bank Capital Ratios
(3):
Common equity Tier 1 capital to
risk-weighted assets
12.13
%
12.77
%
12.40
%
11.75
%
10.62
%
12.13
%
10.62
%
Tier 1 capital to risk-weighted assets
12.13
%
12.77
%
12.40
%
11.75
%
10.62
%
12.13
%
10.62
%
Total capital to risk-weighted assets
13.46
%
14.16
%
13.77
%
13.11
%
12.06
%
13.46
%
12.06
%
Tier 1 capital to average assets (leverage
ratio)
7.92
%
8.66
%
9.07
%
9.35
%
9.21
%
7.92
%
9.21
%
(1) Metric is a spot balance for the last
day of each quarter presented.
(2) Non-GAAP measures exclude net loss
from discontinued operations, loss on sale of foreign subsidiaries,
unrealized gains (losses) on loans held for sale, investment
securities gains and losses, loss on cash flow hedge derivative
terminations, severance expense, merger and acquisition-related
expenses, losses realized from the sale of non-QM residential
mortgage loans, loss upon acquisition of interest-only GNMA
securities, legal reserves, credit valuation adjustments on
derivatives, risk participation agreement mark-to-market
adjustments, deposit relationship adjustment fees, loss on
redemption of preferred stock, goodwill and intangible assets, and
PPP loans. These notable items are not included in Customers'
disclosures of core earnings and other core profitability metrics.
Please note that not each of the aforementioned adjustments
affected the reported amount in each of the periods presented.
Customers' reasons for the use of these non-GAAP measures and a
detailed reconciliation between the non-GAAP measures and the
comparable GAAP amounts are included at the end of this
document.
(3) Regulatory capital ratios are
estimated for Q4 2021 and actual for the remaining periods. In
accordance with regulatory capital rules, Customers elected an
option to delay the estimated impact of CECL on its regulatory
capital over a five-year transition period ending January 1, 2025.
As a result, capital ratios and amounts as of Q4 2021 exclude the
impact of the increased allowance for credit losses on loans and
leases and unfunded loan commitments attributed to the adoption of
CECL and 25% of the quarterly provision for credit losses for
subsequent quarters through Q4 2021.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS -
UNAUDITED
(Dollars in thousands, except per share
data)
Twelve Months Ended
Q4
Q3
Q2
Q1
Q4
December 31,
2021
2021
2021
2021
2020
2021
2020
Interest income:
Loans and leases
$
198,000
$
233,097
$
153,608
$
152,117
$
145,414
$
736,822
$
512,048
Investment securities
15,202
8,905
8,327
7,979
6,777
40,413
24,206
Other
835
849
946
1,019
902
3,649
7,050
Total interest income
214,037
242,851
162,881
161,115
153,093
780,884
543,304
Interest expense:
Deposits
15,415
15,915
15,653
15,658
16,107
62,641
92,045
FHLB advances
51
5
963
5,192
5,749
6,211
21,637
Subordinated debt
2,688
2,689
2,689
2,689
2,688
10,755
10,755
FRB PPP liquidity facility, federal funds
purchased and other borrowings
2,189
4,350
4,819
4,845
5,603
16,203
15,179
Total interest expense
20,343
22,959
24,124
28,384
30,147
95,810
139,616
Net interest income
193,694
219,892
138,757
132,731
122,946
685,074
403,688
Provision (benefit) for credit losses on
loans and leases
13,890
13,164
3,291
(2,919
)
(2,913
)
27,426
62,774
Net interest income after provision
(benefit) for credit losses on loans and leases
179,804
206,728
135,466
135,650
125,859
657,648
340,914
Non-interest income:
Interchange and card revenue
84
83
84
85
91
336
646
Deposit fees
1,026
994
891
863
823
3,774
2,526
Commercial lease income
5,378
5,213
5,311
5,205
4,853
21,107
18,139
Bank-owned life insurance
1,984
1,988
2,765
1,679
1,744
8,416
7,009
Mortgage warehouse transactional fees
2,262
3,100
3,265
4,247
3,681
12,874
11,535
Gain (loss) on sale of SBA and other
loans
2,493
5,359
1,900
1,575
1,689
11,327
2,009
Loan fees
2,513
1,909
1,670
1,436
1,746
7,527
5,652
Mortgage banking income (loss)
262
425
386
463
346
1,536
1,693
Gain (loss) on sale of investment
securities
(49
)
6,063
1,812
23,566
44
31,392
20,078
Unrealized gain (loss) on investment
securities
—
—
1,746
974
1,387
2,720
1,447
Loss on sale of foreign subsidiaries
—
—
(2,840
)
—
—
(2,840
)
—
Unrealized gain (loss) on derivatives
586
524
(439
)
2,537
804
3,208
(3,951
)
Loss on cash flow hedge derivative
terminations
—
—
—
(24,467
)
—
(24,467
)
—
Other
452
(72
)
271
305
(1,125
)
957
(2,965
)
Total non-interest income
16,991
25,586
16,822
18,468
16,083
77,867
63,818
Non-interest expense:
Salaries and employee benefits
29,940
26,268
28,023
23,971
25,600
108,202
94,067
Technology, communication and bank
operations
22,657
21,281
19,618
19,988
16,021
83,544
50,668
Professional services
7,058
6,871
6,882
5,877
4,732
26,688
13,557
Occupancy
4,336
2,704
2,482
2,621
2,742
12,143
11,362
Commercial lease depreciation
4,625
4,493
4,415
4,291
3,982
17,824
14,715
FDIC assessments, non-income taxes and
regulatory fees
2,427
2,313
2,602
2,719
2,642
10,061
11,661
Loan servicing
4,361
4,265
1,700
437
879
10,763
3,431
Merger and acquisition related
expenses
—
—
—
418
709
418
1,367
Loan workout
226
198
102
(261
)
123
265
3,143
Advertising and promotion
344
302
313
561
—
1,520
1,796
Deposit relationship adjustment fees
—
6,216
—
—
—
6,216
—
Other
5,574
5,098
4,686
1,305
2,503
16,663
9,209
Total non-interest expense
81,548
80,009
70,823
61,927
59,933
294,307
214,976
Income before income tax expense
115,247
152,305
81,465
92,191
82,009
441,208
189,756
Income tax expense
12,993
36,263
20,124
17,560
23,447
86,940
46,717
Net income from continuing
operations
$
102,254
$
116,042
$
61,341
$
74,631
$
58,562
$
354,268
$
143,039
Loss from discontinued operations before
income taxes
$
—
$
—
$
—
$
(20,354
)
$
(3,539
)
$
(20,354
)
$
(13,798
)
Income tax expense (benefit) from
discontinued operations
1,585
—
—
17,682
(1,222
)
19,267
(3,337
)
Net loss from discontinued operations
(1,585
)
—
—
(38,036
)
(2,317
)
(39,621
)
(10,461
)
Net income
100,669
116,042
61,341
36,595
56,245
314,647
132,578
Preferred stock dividends
2,022
2,981
3,299
3,391
3,414
11,693
14,041
Loss on redemption of preferred
stock
—
2,820
—
—
—
2,820
—
Net income available to common
shareholders
$
98,647
$
110,241
$
58,042
$
33,204
$
52,831
$
300,134
$
118,537
Basic earnings per common share from
continuing operations
$
3.07
$
3.40
$
1.80
$
2.23
$
1.74
$
10.51
$
4.09
Basic earnings per common share
3.02
3.40
1.80
1.04
1.67
9.29
3.76
Diluted earnings per common share from
continuing operations
2.92
3.25
1.72
2.17
1.73
10.08
4.07
Diluted earnings per common share
2.87
3.25
1.72
1.01
1.65
8.91
3.74
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEET -
UNAUDITED
(Dollars in thousands)
December 31,
September 30,
June 30,
March 31,
December 31,
2021
2021
2021
2021
2020
ASSETS
Cash and due from banks
$
35,238
$
51,169
$
36,837
$
3,123
$
78,090
Interest earning deposits
482,794
1,000,885
393,663
512,241
615,264
Cash and cash equivalents
518,032
1,052,054
430,500
515,364
693,354
Investment securities, at fair value
3,817,150
1,866,697
1,526,792
1,441,904
1,210,285
Loans held for sale
16,254
29,957
34,540
46,106
79,086
Loans receivable, mortgage warehouse, at
fair value
2,284,325
2,557,624
2,855,284
3,407,622
3,616,432
Loans receivable, PPP
3,250,008
4,957,357
6,305,056
5,178,089
4,561,365
Loans and leases receivable
9,018,298
7,970,599
7,772,142
7,536,489
7,575,368
Allowance for credit losses on loans and
leases
(137,804
)
(131,496
)
(125,436
)
(128,736
)
(144,176
)
Total loans and leases receivable, net of
allowance for credit losses on loans and leases
14,414,827
15,354,084
16,807,046
15,993,464
15,608,989
FHLB, Federal Reserve Bank, and other
restricted stock
64,584
57,184
39,895
69,420
71,368
Accrued interest receivable
92,239
93,514
90,009
83,186
80,412
Bank premises and equipment, net
8,890
9,944
10,391
10,943
11,225
Bank-owned life insurance
333,705
331,423
329,421
281,923
280,067
Goodwill and other intangibles
3,736
3,794
3,853
3,911
3,969
Other assets
305,611
310,271
362,661
371,439
338,438
Assets of discontinued operations
—
—
—
—
62,055
Total assets
$
19,575,028
$
19,108,922
$
19,635,108
$
18,817,660
$
18,439,248
LIABILITIES AND SHAREHOLDERS'
EQUITY
Demand, non-interest bearing deposits
$
4,459,790
$
4,954,331
$
2,699,869
$
2,687,628
$
2,356,998
Interest bearing deposits
12,318,134
12,016,694
11,174,070
9,784,812
8,952,931
Total deposits
16,777,924
16,971,025
13,873,939
12,472,440
11,309,929
Federal funds purchased
75,000
—
—
365,000
250,000
FHLB advances
700,000
—
—
850,000
850,000
Other borrowings
223,086
223,151
124,240
124,138
124,037
Subordinated debt
181,673
181,603
181,534
181,464
181,394
FRB PPP liquidity facility
—
—
3,865,865
3,284,156
4,415,016
Accrued interest payable and other
liabilities
251,128
448,844
338,801
351,741
152,082
Liabilities of discontinued operations
—
—
—
—
39,704
Total liabilities
18,208,811
17,824,623
18,384,379
17,628,939
17,322,162
Preferred stock
137,794
137,794
217,471
217,471
217,471
Common stock
34,722
33,818
33,634
33,519
32,986
Additional paid in capital
542,391
525,894
519,294
515,318
455,592
Retained earnings
705,732
607,085
496,844
438,802
438,581
Accumulated other comprehensive income
(loss), net
(4,980
)
1,488
5,266
5,391
(5,764
)
Treasury stock, at cost
(49,442
)
(21,780
)
(21,780
)
(21,780
)
(21,780
)
Total shareholders' equity
1,366,217
1,284,299
1,250,729
1,188,721
1,117,086
Total liabilities & shareholders'
equity
$
19,575,028
$
19,108,922
$
19,635,108
$
18,817,660
$
18,439,248
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST
MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
December 31, 2021
September 30, 2021
December 31, 2020
Average Balance
Average Yield or Cost
(%)
Average Balance
Average Yield or Cost
(%)
Average Balance
Average Yield or Cost
(%)
Assets
Interest earning deposits
$
1,568,510
0.15
%
$
1,279,983
0.15
%
$
413,381
0.12
%
Investment securities (1)
2,621,844
2.32
%
1,511,319
2.36
%
1,120,491
2.42
%
Loans and leases:
Commercial loans to mortgage companies
2,289,061
3.02
%
2,658,020
3.14
%
3,518,371
3.06
%
Multi-family loans
1,327,732
3.72
%
1,443,846
3.64
%
1,871,956
3.70
%
Commercial & industrial loans and
leases (2)
3,514,186
3.71
%
3,024,620
3.76
%
2,801,172
3.96
%
Loans receivable, PPP
3,898,607
8.35
%
5,778,367
8.04
%
4,782,606
2.45
%
Non-owner occupied commercial real estate
loans
1,334,184
3.80
%
1,346,629
3.73
%
1,358,541
3.80
%
Residential mortgages
314,551
3.68
%
325,851
3.50
%
400,771
3.80
%
Installment loans
1,657,049
8.96
%
1,615,411
9.21
%
1,253,679
8.50
%
Total loans and leases (3)
14,335,370
5.48
%
16,192,744
5.71
%
15,987,096
3.62
%
Other interest-earning assets
50,709
1.81
%
49,780
2.86
%
81,031
3.80
%
Total interest-earning assets
18,576,433
4.57
%
19,033,826
5.06
%
17,601,999
3.46
%
Non-interest-earning assets
637,808
705,514
573,400
Assets of discontinued operations
—
—
75,320
Total assets
$
19,214,241
$
19,739,340
$
18,250,719
Liabilities
Interest checking accounts
5,258,982
0.58
%
4,537,421
0.67
%
2,240,959
0.86
%
Money market deposit accounts
5,293,529
0.43
%
5,131,433
0.43
%
4,166,635
0.60
%
Other savings accounts
1,189,899
0.45
%
1,376,077
0.50
%
1,205,592
0.74
%
Certificates of deposit
541,528
0.51
%
614,404
0.59
%
833,689
1.30
%
Total interest-bearing deposits (4)
12,283,938
0.50
%
11,659,335
0.54
%
8,446,875
0.76
%
Federal funds purchased
815
0.15
%
—
—
%
120,891
0.10
%
FRB PPP liquidity facility
—
—
%
2,788,897
0.35
%
4,684,756
0.35
%
Borrowings
465,600
4.20
%
371,077
4.90
%
1,155,321
3.40
%
Total interest-bearing
liabilities
12,750,353
0.63
%
14,819,309
0.62
%
14,407,843
0.83
%
Non-interest-bearing deposits (4)
4,817,835
3,335,198
2,543,529
Total deposits and borrowings
17,568,188
0.46
%
18,154,507
0.50
%
16,951,372
0.71
%
Other non-interest-bearing liabilities
328,782
310,519
162,723
Liabilities of discontinued operations
—
—
52,742
Total liabilities
17,896,970
18,465,026
17,166,837
Shareholders' equity
1,317,271
1,274,314
1,083,882
Total liabilities and shareholders'
equity
$
19,214,241
$
19,739,340
$
18,250,719
Interest spread
4.11
%
4.56
%
2.75
%
Net interest margin
4.14
%
4.58
%
2.78
%
Net interest margin tax equivalent
(5)
4.14
%
4.59
%
2.78
%
Net interest margin tax equivalent
excl. PPP (6)
3.12
%
3.24
%
3.04
%
(1) For presentation in this table,
average balances and the corresponding average yields for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial
real estate loans.
(3) Includes non-accrual loans, the effect
of which is to reduce the yield earned on loans and leases, and
deferred loan fees.
(4) Total costs of deposits (including
interest bearing and non-interest bearing) were 0.36%, 0.42% and
0.58% for the three months ended December 31, 2021, September 30,
2021 and December 31, 2020, respectively.
(5) Non-GAAP tax-equivalent basis, using
an estimated marginal tax rate of 26% for the three months ended
December 31, 2021, September 30, 2021 and December 31, 2020,
presented to approximate interest income as a taxable asset.
Management uses non-GAAP measures to present historical periods
comparable to the current period presentation. In addition,
management believes the use of these non-GAAP measures provides
additional clarity when assessing Customers’ financial results.
These disclosures should not be viewed as substitutes for results
determined to be in accordance with U.S. GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other entities.
(6) Non-GAAP tax-equivalent basis, as
described in note (5) for the three months ended December 31, 2021,
September 30, 2021 and December 31, 2020, excluding net interest
income from PPP loans and related borrowings, along with the
related PPP loan balances and PPP fees receivable from
interest-earning assets. Management uses non-GAAP measures to
present historical periods comparable to the current period
presentation. In addition, management believes the use of these
non-GAAP measures provides additional clarity when assessing
Customers’ financial results. These disclosures should not be
viewed as substitutes for results determined to be in accordance
with U.S. GAAP, nor are they necessarily comparable to non-GAAP
performance measures that may be presented by other entities.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST
MARGIN - UNAUDITED
(Dollars in thousands)
Twelve Months Ended
December 31, 2021
December 31, 2020
Average Balance
Average Yield
or Cost (%)
Average Balance
Average Yield
or Cost (%)
Assets
Interest earning deposits
$
1,169,416
0.14
%
$
564,218
0.59
%
Investment securities (1)
1,753,649
2.30
%
836,815
2.89
%
Loans and leases:
Commercial loans to mortgage companies
2,699,300
3.09
%
2,668,642
3.11
%
Multi-family loans
1,501,878
3.77
%
2,020,640
3.85
%
Commercial & industrial loans and
leases (2)
3,068,005
3.75
%
2,581,119
4.12
%
Loans receivable, PPP
5,108,192
5.46
%
3,121,157
2.10
%
Non-owner occupied commercial real estate
loans
1,349,563
3.81
%
1,368,684
3.91
%
Residential mortgages
339,845
3.65
%
422,696
3.82
%
Installment loans
1,517,165
9.14
%
1,264,255
8.68
%
Total loans and leases (3)
15,583,948
4.73
%
13,447,193
3.81
%
Other interest-earning assets
59,308
3.48
%
85,091
4.41
%
Total interest-earning assets
18,566,321
4.21
%
14,933,317
3.64
%
Non-interest-earning assets
633,615
592,770
Assets of discontinued operations
—
78,714
Total assets
$
19,199,936
$
15,604,801
Liabilities
Interest checking accounts
$
4,006,354
0.69
%
$
2,098,138
0.89
%
Money market deposit accounts
4,933,027
0.47
%
3,657,422
0.96
%
Other savings accounts
1,358,708
0.56
%
1,162,472
1.44
%
Certificates of deposit
619,859
0.72
%
1,357,688
1.58
%
Total interest-bearing deposits (4)
10,917,948
0.57
%
8,275,720
1.11
%
Federal funds purchased
22,110
0.07
%
239,481
0.19
%
FRB PPP liquidity facility
2,636,925
0.35
%
2,537,744
0.35
%
Borrowings
610,503
3.92
%
1,265,279
3.02
%
Total interest-bearing
liabilities
14,187,486
0.68
%
12,318,224
1.13
%
Non-interest-bearing deposits (4)
3,470,788
2,052,376
Total deposits and borrowings
17,658,274
0.54
%
14,370,600
0.97
%
Other non-interest-bearing liabilities
304,078
148,045
Liabilities of discontinued operations
—
53,916
Total liabilities
17,962,352
14,572,561
Shareholders' equity
1,237,584
1,032,240
Total liabilities and shareholders'
equity
$
19,199,936
$
15,604,801
Interest spread
3.66
%
2.67
%
Net interest margin
3.69
%
2.70
%
Net interest margin tax equivalent
(5)
3.70
%
2.71
%
Net interest margin tax equivalent
excl. PPP (6)
3.16
%
2.96
%
(1) For presentation in this table,
average balances and the corresponding average yields for
investment securities are based upon historical cost, adjusted for
amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial
real estate loans.
(3) Includes non-accrual loans, the effect
of which is to reduce the yield earned on loans and leases, and
deferred loan fees.
(4) Total costs of deposits (including
interest bearing and non-interest bearing) were 0.44% and 0.89% for
the twelve months ended December 31, 2021 and 2020,
respectively.
(5) Non-GAAP tax-equivalent basis, using
an estimated marginal tax rate of 26% for the twelve months ended
December 31, 2021 and 2020, presented to approximate interest
income as a taxable asset. Management uses non-GAAP measures to
present historical periods comparable to the current period
presentation. In addition, management believes the use of these
non-GAAP measures provides additional clarity when assessing
Customers’ financial results. These disclosures should not be
viewed as substitutes for results determined to be in accordance
with U.S. GAAP, nor are they necessarily comparable to non-GAAP
performance measures that may be presented by other entities.
(6) Non-GAAP tax-equivalent basis as
described in note (5), for the twelve months ended December 31,
2021 and 2020, excluding net interest income from PPP loans and
related borrowings, along with the related PPP loan balances and
PPP fees receivable from interest-earning assets. Management uses
non-GAAP measures to present historical periods comparable to the
current period presentation. In addition, management believes the
use of these non-GAAP measures provides additional clarity when
assessing Customers’ financial results. These disclosures should
not be viewed as substitutes for results determined to be in
accordance with U.S. GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other
entities.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION -
UNAUDITED
(Dollars in thousands)
December 31,
September 30,
June 30,
March 31,
December 31,
2021
2021
2021
2021
2020
Commercial:
Multi-family
$
1,486,308
$
1,387,166
$
1,497,485
$
1,659,529
$
1,761,301
Loans to mortgage companies
2,362,438
2,626,483
2,922,217
3,463,490
3,657,350
Commercial & industrial
3,346,670
2,604,367
2,293,723
2,164,784
2,304,206
Commercial real estate owner occupied
654,922
656,044
653,649
590,093
572,338
Loans receivable, PPP
3,250,008
4,957,357
6,305,056
5,178,089
4,561,365
Commercial real estate non-owner
occupied
1,121,238
1,144,643
1,206,646
1,194,832
1,213,815
Construction
198,981
198,607
179,198
156,837
140,905
Total commercial loans and leases
12,420,565
13,574,667
15,057,974
14,407,654
14,211,280
Consumer:
Residential
350,984
260,820
273,493
295,654
323,322
Manufactured housing
52,861
55,635
57,904
59,977
62,243
Installment
1,744,475
1,624,415
1,577,651
1,405,021
1,235,406
Total consumer loans
2,148,320
1,940,870
1,909,048
1,760,652
1,620,971
Total loans and leases
$
14,568,885
$
15,515,537
$
16,967,022
$
16,168,306
$
15,832,251
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION -
UNAUDITED
(Dollars in thousands)
December 31,
September 30,
June 30,
March 31,
December 31,
2021
2021
2021
2021
2020
Demand, non-interest bearing
$
4,459,790
$
4,954,331
$
2,699,869
$
2,687,628
$
2,356,998
Demand, interest bearing
6,488,406
5,023,081
4,206,355
3,228,941
2,384,691
Total demand deposits
10,948,196
9,977,412
6,906,224
5,916,569
4,741,689
Savings
973,317
1,310,343
1,431,756
1,483,482
1,314,817
Money market
4,349,073
5,090,121
4,908,809
4,406,508
4,601,492
Time deposits
507,338
593,149
627,150
665,881
651,931
Total deposits
$
16,777,924
$
16,971,025
$
13,873,939
$
12,472,440
$
11,309,929
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of December 31,
2021
As of September 30,
2021
As of December 31,
2020
Total loans
Non accrual /NPLs
Allowance for credit
losses
Total NPLs to total
loans
Total reserves to total
NPLs
Total loans
Non accrual /NPLs
Allowance for credit
losses
Total NPLs to total
loans
Total reserves to total
NPLs
Total loans
Non accrual /NPLs
Allowance for credit
losses
Total NPLs to total
loans
Total reserves to total
NPLs
Loan
type
Multi-family
$
1,486,308
$
22,654
$
4,477
1.52
%
19.76
%
$
1,369,876
$
24,524
$
4,397
1.79
%
17.93
%
$
1,761,301
$
21,728
$
12,620
1.23
%
58.08
%
Commercial & industrial (1)
3,424,783
6,096
12,702
0.18
%
208.37
%
2,673,226
6,951
10,860
0.26
%
156.24
%
2,289,441
8,453
12,239
0.37
%
144.79
%
Commercial real estate owner occupied
654,922
2,475
3,213
0.38
%
129.82
%
656,044
2,412
3,617
0.37
%
149.96
%
572,338
3,411
9,512
0.60
%
278.86
%
Commercial real estate non- owner
occupied
1,121,238
2,815
6,210
0.25
%
220.60
%
1,144,643
2,845
7,375
0.25
%
259.23
%
1,196,564
2,356
19,452
0.20
%
825.64
%
Construction
198,981
—
692
—
%
—
%
198,607
—
886
—
%
—
%
140,905
—
5,871
—
%
—
%
Total commercial loans and leases
receivable
6,886,232
34,040
27,294
0.49
%
80.18
%
6,042,396
36,732
27,135
0.61
%
73.87
%
5,960,549
35,948
59,694
0.60
%
166.06
%
Residential
334,730
7,727
2,383
2.31
%
30.84
%
248,153
7,738
1,912
3.12
%
24.71
%
317,170
9,911
3,977
3.12
%
40.13
%
Manufactured housing
52,861
3,563
4,278
6.74
%
120.07
%
55,635
3,520
4,410
6.33
%
125.28
%
62,243
2,969
5,189
4.77
%
174.77
%
Installment
1,744,475
3,783
103,849
0.22
%
2745.15
%
1,624,415
3,544
98,039
0.22
%
2766.34
%
1,235,406
3,211
75,316
0.26
%
2345.56
%
Total consumer loans receivable
2,132,066
15,073
110,510
0.71
%
733.17
%
1,928,203
14,802
104,361
0.77
%
705.05
%
1,614,819
16,091
84,482
1.00
%
525.03
%
Loans and leases receivable (1)
9,018,298
49,113
137,804
0.54
%
280.59
%
7,970,599
51,534
131,496
0.65
%
255.16
%
7,575,368
52,039
144,176
0.69
%
277.05
%
Loans receivable, PPP
3,250,008
—
—
—
%
—
%
4,957,357
—
—
—
%
—
%
4,561,365
—
—
—
%
—
%
Loans receivable, mortgage warehouse,
at fair value
2,284,325
—
—
—
%
—
%
2,557,624
—
—
—
%
—
%
3,616,432
—
—
—
%
—
%
Total loans held for sale
16,254
507
—
3.12
%
—
%
29,957
507
—
1.69
%
—
%
79,086
18,469
—
23.35
%
—
%
Total portfolio
$
14,568,885
$
49,620
$
137,804
0.34
%
277.72
%
$
15,515,537
$
52,041
$
131,496
0.34
%
252.68
%
$
15,832,251
$
70,508
$
144,176
0.45
%
204.48
%
(1) Excluding loans receivable, PPP from total loans and leases
receivable is a non-GAAP measure. Management believes the use of
these non-GAAP measures provides additional clarity when assessing
Customers' financial results. These disclosures should not be
viewed as substitutes for results determined to be in accordance
with U.S. GAAP, nor are they necessarily comparable to non-GAAP
performance measures that may be presented by other entities.
Please refer to the reconciliation schedules that follow this
table.
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) -
UNAUDITED
(Dollars in thousands)
Q4
Q3
Q2
Q1
Q4
Twelve Months Ended December
31,
2021
2021
2021
2021
2020
2021
2020
Loan type
Multi-family
$
—
$
—
$
—
$
1,132
$
—
$
1,132
$
—
Commercial & industrial
240
116
(283
)
375
155
448
139
Commercial real estate owner occupied
66
50
(1
)
134
12
249
51
Commercial real estate non-owner
occupied
(14
)
943
(59
)
(10
)
(35
)
860
24,486
Construction
(3
)
(3
)
(114
)
(5
)
(6
)
(125
)
(128
)
Residential
(6
)
54
(12
)
40
46
76
(26
)
Installment
7,299
5,944
7,060
10,855
8,300
31,158
30,285
Total net charge-offs (recoveries) from
loans held for investment
$
7,582
$
7,104
$
6,591
$
12,521
$
8,472
$
33,798
$
54,807
Customers believes that the non-GAAP
measurements disclosed within this document are useful for
investors, regulators, management and others to evaluate our core
results of operations and financial condition relative to other
financial institutions. These non-GAAP financial measures are
frequently used by securities analysts, investors, and other
interested parties in the evaluation of companies in Customers'
industry. These non-GAAP financial measures exclude from
corresponding GAAP measures the impact of certain elements that we
do not believe are representative of our ongoing financial results,
which we believe enhance an overall understanding of our
performance and increases comparability of our period to period
results. Investors should consider our performance and financial
condition as reported under GAAP and all other relevant information
when assessing our performance or financial condition. The non-GAAP
measures presented are not necessarily comparable to non-GAAP
measures that may be presented by other financial institutions.
Although non-GAAP financial measures are frequently used in the
evaluation of a company, they have limitations as analytical tools
and should not be considered in isolation or as a substitute for
analysis of our results of operations or financial condition as
reported under GAAP.
The following tables present reconciliations of GAAP to non-GAAP
measures disclosed within this document.
Core Earnings - Customers
Bancorp
Twelve Months Ended
December 31,
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
(dollars in thousands except per share
data)
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
GAAP net income to common shareholders
$
98,647
$
2.87
$
110,241
$
3.25
$
58,042
$
1.72
$
33,204
$
1.01
$
52,831
$
1.65
$
300,134
$
8.91
$
118,537
$
3.74
Reconciling items (after tax):
Net loss from discontinued operations
1,585
0.05
—
—
—
—
38,036
1.16
2,317
0.07
39,621
1.18
10,461
0.33
Severance expense
—
—
—
—
1,517
0.04
—
—
—
—
1,517
0.05
—
—
Merger and acquisition related
expenses
—
—
—
—
—
—
320
0.01
508
0.02
320
0.01
1,038
0.03
Legal reserves
—
—
897
0.03
—
—
—
—
—
—
897
0.03
258
0.01
(Gains) losses on investment
securities
43
0.00
(4,591
)
(0.14
)
(2,694
)
(0.08
)
(18,773
)
(0.57
)
(1,419
)
(0.04
)
(26,015
)
(0.77
)
(17,412
)
(0.55
)
Loss on sale of foreign subsidiaries
—
—
—
—
2,150
0.06
—
—
—
—
2,150
0.06
—
—
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
18,716
0.57
—
—
18,716
0.56
—
—
Derivative credit valuation adjustment
(180
)
(0.01
)
(198
)
(0.01
)
288
0.01
(1,195
)
(0.04
)
(448
)
(0.01
)
(1,285
)
(0.04
)
5,811
0.18
Risk participation agreement
mark-to-market adjustment
—
—
—
—
—
—
—
—
—
—
—
—
(1,080
)
(0.03
)
Deposit relationship adjustment fees
—
—
4,707
0.14
—
—
—
—
—
—
4,707
0.14
—
—
Loss on redemption of preferred stock
—
—
2,820
0.08
—
—
—
—
—
—
2,820
0.08
—
—
Unrealized losses on loans held for
sale
—
—
—
—
—
—
—
—
799
0.03
—
—
1,913
0.06
Core earnings
$
100,095
$
2.92
$
113,876
$
3.36
$
59,303
$
1.76
$
70,308
$
2.14
$
54,588
$
1.71
$
343,582
$
10.20
$
119,526
$
3.77
(Dollars in thousands, except per share
data)
Core Earnings, excluding PPP -
Customers Bancorp
Twelve Months Ended
December 31,
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
(dollars in thousands except per share
data)
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
GAAP net income to common shareholders
$
98,647
$
2.87
$
110,241
$
3.25
$
58,042
$
1.72
$
33,204
$
1.01
$
52,831
$
1.65
$
300,134
$
8.91
$
118,537
$
3.74
Less: PPP net income (after tax)
64,323
1.87
81,337
2.40
24,312
0.72
25,079
0.76
19,148
0.60
195,050
5.79
41,509
1.31
GAAP net income to common shareholders,
excluding PPP
34,324
1.00
28,904
0.85
33,730
1.00
8,125
0.25
33,683
1.05
105,084
3.12
77,028
2.43
Reconciling items (after tax):
Net loss from discontinued operations
1,585
0.05
—
—
—
—
38,036
1.16
2,317
0.07
39,621
1.18
10,461
0.33
Severance expense
—
—
—
—
1,517
0.04
—
—
—
—
1,517
0.05
—
—
Merger and acquisition related
expenses
—
—
—
—
—
—
320
0.01
508
0.02
320
0.01
1,038
0.03
Legal reserves
—
—
897
0.03
—
—
—
—
—
—
897
0.03
258
0.01
(Gains) losses on investment
securities
43
0.00
(4,591
)
(0.14
)
(2,694
)
(0.08
)
(18,773
)
(0.57
)
(1,419
)
(0.04
)
(26,015
)
(0.77
)
(17,412
)
(0.55
)
Loss on sale of foreign subsidiaries
—
—
—
—
2,150
0.06
—
—
—
—
2,150
0.06
—
—
Loss on cash flow hedge derivative
terminations
—
—
—
—
—
—
18,716
0.57
—
—
18,716
0.56
—
—
Derivative credit valuation adjustment
(180
)
(0.01
)
(198
)
(0.01
)
288
0.01
(1,195
)
(0.04
)
(448
)
(0.01
)
(1,285
)
(0.04
)
5,811
0.18
Risk participation agreement
mark-to-market adjustment
—
—
—
—
—
—
—
—
—
—
—
—
(1,080
)
(0.03
)
Deposit relationship adjustment fees
—
—
4,707
0.14
—
—
—
—
—
—
4,707
0.14
—
—
Loss on redemption of preferred stock
—
—
2,820
0.08
—
—
—
—
—
—
2,820
0.08
—
—
Unrealized losses on loans held for
sale
—
—
—
—
—
—
—
—
799
0.03
—
—
1,913
0.06
Core earnings, excluding PPP
$
35,772
$
1.04
$
32,539
$
0.96
$
34,991
$
1.04
$
45,229
$
1.38
$
35,440
$
1.10
$
148,532
$
4.41
$
78,017
$
2.46
Core Return on Average Assets -
Customers Bancorp
Twelve Months Ended
December 31,
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
GAAP net income
$
100,669
$
116,042
$
61,341
$
36,595
$
56,245
$
314,647
$
132,578
Reconciling items (after tax):
Net loss from discontinued operations
1,585
—
—
38,036
2,317
39,621
10,461
Severance expense
—
—
1,517
—
—
1,517
—
Merger and acquisition related
expenses
—
—
—
320
508
320
1,038
Legal reserves
—
897
—
—
—
897
258
(Gains) losses on investment
securities
43
(4,591
)
(2,694
)
(18,773
)
(1,419
)
(26,015
)
(17,412
)
Loss on sale of foreign subsidiaries
—
—
2,150
—
—
2,150
—
Loss on cash flow hedge derivative
terminations
—
—
—
18,716
—
18,716
—
Derivative credit valuation adjustment
(180
)
(198
)
288
(1,195
)
(448
)
(1,285
)
5,811
Risk participation agreement
mark-to-market adjustment
—
—
—
—
—
—
(1,080
)
Deposit relationship adjustment fees
—
4,707
—
—
—
4,707
—
Unrealized losses on loans held for
sale
—
—
—
—
799
—
1,913
Core net income
$
102,117
$
116,857
$
62,602
$
73,699
$
58,002
$
355,275
$
133,567
Average total assets
$
19,214,241
$
19,739,340
$
19,306,948
$
18,525,721
$
18,250,719
$
19,199,936
$
15,604,801
Core return on average assets
2.11
%
2.35
%
1.30
%
1.61
%
1.26
%
1.85
%
0.86
%
Adjusted Net Income and Adjusted ROAA -
Pre- Tax Pre-Provision - Customers Bancorp
Twelve Months Ended
December 31,
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
GAAP net income
$
100,669
$
116,042
$
61,341
$
36,595
$
56,245
$
314,647
$
132,578
Reconciling items:
Income tax expense
12,993
36,263
20,124
17,560
23,447
86,940
46,717
Provision (benefit) for credit losses on
loans and leases
13,890
13,164
3,291
(2,919
)
(2,913
)
27,426
62,774
Provision (benefit) for credit losses on
unfunded commitments
352
669
45
(1,286
)
(968
)
(220
)
(1,100
)
Severance expense
—
—
2,004
—
—
2,004
—
Net loss from discontinued operations
1,585
—
—
38,036
2,317
39,621
10,461
Merger and acquisition related
—
—
—
418
709
418
1,367
Legal reserves
—
1,185
—
—
—
1,185
320
(Gains) losses on investment
securities
49
(6,063
)
(3,558
)
(24,540
)
(1,431
)
(34,112
)
(21,525
)
Loss on sale of foreign subsidiaries
—
—
2,840
—
—
2,840
—
Loss on cash flow hedge derivative
terminations
—
—
—
24,467
—
24,467
—
Derivative credit valuation adjustment
(203
)
(261
)
380
(1,562
)
(625
)
(1,646
)
7,448
Risk participation agreement
mark-to-market adjustment
—
—
—
—
—
—
(1,407
)
Deposit relationship adjustment fees
—
6,216
—
—
—
6,216
—
Unrealized losses on loans held for
sale
—
—
—
—
1,115
—
2,565
Adjusted net income - pre-tax
pre-provision
$
129,335
$
167,215
$
86,467
$
86,769
$
77,896
$
469,786
$
240,198
Average total assets
$
19,214,241
$
19,739,340
$
19,306,948
$
18,525,721
$
18,250,719
$
19,199,936
$
15,604,801
Adjusted ROAA - pre-tax pre-provision
2.67
%
3.36
%
1.80
%
1.90
%
1.70
%
2.45
%
1.54
%
Core Return on Average Common Equity -
Customers Bancorp
Twelve Months Ended
December 31,
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
GAAP net income to common shareholders
$
98,647
$
110,241
$
58,042
$
33,204
$
52,831
$
300,134
$
118,537
Reconciling items (after tax):
Net loss from discontinued operations
1,585
—
—
38,036
2,317
39,621
10,461
Severance expense
—
—
1,517
—
—
1,517
—
Merger and acquisition related
—
—
—
320
508
320
1,038
Legal reserves
—
897
—
—
—
897
258
(Gains) losses on investment
securities
43
(4,591
)
(2,694
)
(18,773
)
(1,419
)
(26,015
)
(17,412
)
Loss on sale of foreign subsidiaries
—
—
2,150
—
—
2,150
—
Loss on cash flow hedge derivative
terminations
—
—
—
18,716
—
18,716
—
Derivative credit valuation adjustment
(180
)
(198
)
288
(1,195
)
(448
)
(1,285
)
5,811
Risk participation agreement
mark-to-market adjustment
—
—
—
—
—
—
(1,080
)
Deposit relationship adjustment fees
—
4,707
—
—
—
4,707
—
Loss on redemption of preferred stock
—
2,820
—
—
—
2,820
—
Unrealized losses on loans held for
sale
—
—
—
—
799
—
1,913
Core earnings
$
100,095
$
113,876
$
59,303
$
70,308
$
54,588
$
343,582
$
119,526
Average total common shareholders'
equity
$
1,179,478
$
1,071,566
$
1,002,624
$
918,795
$
866,411
$
1,043,906
$
814,769
Core return on average common equity
33.67
%
42.16
%
23.72
%
31.03
%
25.06
%
32.91
%
14.67
%
Adjusted ROCE - Pre-Tax Pre-Provision -
Customers Bancorp
Twelve Months Ended
December 31,
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
GAAP net income to common shareholders
$
98,647
$
110,241
$
58,042
$
33,204
$
52,831
$
300,134
$
118,537
Reconciling items:
Income tax expense
12,993
36,263
20,124
17,560
23,447
86,940
46,717
Provision (benefit) for credit losses on
loan and leases
13,890
13,164
3,291
(2,919
)
(2,913
)
27,426
62,774
Provision (benefit) for credit losses on
unfunded commitments
352
669
45
(1,286
)
(968
)
(220
)
(1,100
)
Net loss from discontinued operations
1,585
—
—
38,036
2,317
39,621
10,461
Severance expense
—
—
2,004
—
—
2,004
—
Merger and acquisition related
expenses
—
—
—
418
709
418
1,367
Legal reserves
—
1,185
—
—
—
1,185
320
(Gains) losses on investment
securities
49
(6,063
)
(3,558
)
(24,540
)
(1,431
)
(34,112
)
(21,525
)
Loss on sale of foreign subsidiaries
—
—
2,840
—
—
2,840
—
Loss on cash flow hedge derivative
terminations
—
—
—
24,467
—
24,467
—
Derivative credit valuation adjustment
(203
)
(261
)
380
(1,562
)
(625
)
(1,646
)
7,448
Risk participation agreement
mark-to-market adjustment
—
—
—
—
—
—
(1,407
)
Deposit relationship adjustment fees
—
6,216
—
—
—
6,216
—
Loss on redemption of preferred stock
—
2,820
—
—
—
2,820
—
Unrealized losses on loans held for
sale
—
—
—
—
1,115
—
2,565
Pre-tax pre-provision adjusted net income
available to common shareholders
$
127,313
$
164,234
$
83,168
$
83,378
$
74,482
$
458,093
$
226,157
Average total common shareholders'
equity
$
1,179,478
$
1,071,566
$
1,002,624
$
918,795
$
866,411
$
1,043,906
$
814,769
Adjusted ROCE - pre-tax pre-provision
42.82
%
27.76
%
33.27
%
36.80
%
34.20
%
43.88
%
27.76
%
Net Interest Margin, Tax
Equivalent - Customers Bancorp
Twelve Months Ended
December 31,
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
GAAP net interest income
$
193,694
$
219,892
$
138,757
$
132,731
$
122,946
$
685,074
$
403,688
Tax-equivalent adjustment
276
290
289
292
219
1,147
874
Net interest income tax equivalent
$
193,970
$
220,182
$
139,046
$
133,023
$
123,165
$
686,221
$
404,562
Average total interest earning assets
$
18,576,433
$
19,033,826
$
18,698,996
$
17,943,944
$
17,601,999
$
18,566,321
$
14,933,317
Net interest margin, tax equivalent
4.14
%
4.59
%
2.98
%
3.00
%
2.78
%
3.70
%
2.71
%
Net Interest Margin, Tax Equivalent,
excluding PPP - Customers Bancorp
Twelve Months Ended
December 31,
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
GAAP net interest income
$
193,694
$
219,892
$
138,757
$
132,731
$
122,946
$
685,074
$
403,688
PPP net interest income
(78,647
)
(112,005
)
(35,785
)
(34,842
)
(25,257
)
(261,279
)
(54,583
)
Tax-equivalent adjustment
276
290
289
292
219
1,147
874
Net interest income, tax equivalent,
excluding PPP
$
115,323
$
108,177
$
103,261
$
98,181
$
97,908
$
424,942
$
349,979
GAAP average total interest earning
assets
$
18,576,433
$
19,033,826
$
18,698,996
$
17,943,944
$
17,601,999
$
18,566,321
$
14,933,317
Average PPP loans
(3,898,607
)
(5,778,367
)
(6,133,184
)
(4,623,213
)
(4,782,606
)
(5,108,192
)
(3,121,157
)
Adjusted average total interest earning
assets
$
14,677,826
$
13,255,459
$
12,565,812
$
13,320,731
$
12,819,393
$
13,458,129
$
11,812,160
Net interest margin, tax equivalent,
excluding PPP
3.12
%
3.24
%
3.30
%
2.99
%
3.04
%
3.16
%
2.96
%
Core Efficiency Ratio - Customers
Bancorp
Twelve Months Ended
December 31,
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
2021
2020
GAAP net interest income
$
193,694
$
219,892
$
138,757
$
132,731
$
122,946
$
685,074
$
403,688
GAAP non-interest income
$
16,991
$
25,586
$
16,822
$
18,468
$
16,083
$
77,867
$
63,818
(Gains) losses on investment
securities
49
(6,063
)
(3,558
)
(24,540
)
(1,431
)
(34,112
)
(21,525
)
Derivative credit valuation adjustment
(203
)
(261
)
380
(1,562
)
(625
)
(1,646
)
7,448
Risk participation agreement
mark-to-market adjustment
—
—
—
—
—
—
(1,407
)
Unrealized losses on loans held for
sale
—
—
—
—
1,115
—
2,565
Loss on cash flow hedge derivative
terminations
—
—
—
24,467
—
24,467
—
Loss on sale of foreign subsidiaries
—
—
2,840
—
—
2,840
—
Core non-interest income
16,837
19,262
16,484
16,833
15,142
69,416
50,899
Core revenue
$
210,531
$
239,154
$
155,241
$
149,564
$
138,088
$
754,490
$
454,587
GAAP non-interest expense
$
81,548
$
80,009
$
70,823
$
61,927
$
59,933
$
294,307
$
214,976
Severance expense
—
—
(2,004
)
—
—
(2,004
)
—
Legal reserves
—
(1,185
)
—
—
—
(1,185
)
(320
)
Merger and acquisition related
expenses
—
—
—
(418
)
(709
)
(418
)
(1,367
)
Deposit relationship adjustment fees
—
(6,216
)
—
—
—
(6,216
)
—
Core non-interest expense
$
81,548
$
72,608
$
68,819
$
61,509
$
59,224
$
284,484
$
213,289
Core efficiency ratio (1)
38.73
%
30.36
%
44.33
%
41.13
%
42.89
%
37.71
%
46.92
%
(1) Core efficiency ratio calculated as core non-interest
expense divided by core revenue.
Tangible Common Equity to Tangible
Assets - Customers Bancorp
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
GAAP total shareholders' equity
$
1,366,217
$
1,284,299
$
1,250,729
$
1,188,721
$
1,117,086
Reconciling items:
Preferred stock
(137,794
)
(137,794
)
(217,471
)
(217,471
)
(217,471
)
Goodwill and other intangibles (1)
(3,736
)
(3,794
)
(3,853
)
(3,911
)
(14,298
)
Tangible common equity
$
1,224,687
$
1,142,711
$
1,029,405
$
967,339
$
885,317
GAAP total assets
$
19,575,028
$
19,108,922
$
19,635,108
$
18,817,660
$
18,439,248
Reconciling items:
Goodwill and other intangibles (1)
(3,736
)
(3,794
)
(3,853
)
(3,911
)
(14,298
)
Tangible assets
$
19,571,292
$
19,105,128
$
19,631,255
$
18,813,749
$
18,424,950
Tangible common equity to tangible
assets
6.26
%
5.98
%
5.24
%
5.14
%
4.80
%
(1) Includes goodwill and other intangibles reported in assets
of discontinued operations.
Tangible Book Value per Common Share -
Customers Bancorp
(dollars in thousands except share and per
share data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
GAAP total shareholders' equity
$
1,366,217
$
1,284,299
$
1,250,729
$
1,188,721
$
1,117,086
Reconciling Items:
Preferred stock
(137,794
)
(137,794
)
(217,471
)
(217,471
)
(217,471
)
Goodwill and other intangibles (1)
(3,736
)
(3,794
)
(3,853
)
(3,911
)
(14,298
)
Tangible common equity
$
1,224,687
$
1,142,711
$
1,029,405
$
967,339
$
885,317
Common shares outstanding
$
32,913,267
$
32,537,976
$
32,353,256
$
32,238,762
$
31,705,088
Tangible book value per common share
$
37.21
$
35.12
$
31.82
$
30.01
$
27.92
(1) Includes goodwill and other intangibles reported in assets
of discontinued operations.
Total Loans and Leases, excluding
PPP
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Total loans and leases
$
14,568,885
$
15,515,537
$
16,967,022
$
16,168,306
$
15,832,251
Loans receivable, PPP
(3,250,008
)
(4,957,357
)
(6,305,056
)
(5,178,089
)
(4,561,365
)
Loans and leases, excluding PPP
$
11,318,877
$
10,558,180
$
10,661,966
$
10,990,217
$
11,270,886
Total Assets, excluding PPP
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Total assets
$
19,575,028
$
19,108,922
$
19,635,108
$
18,817,660
$
18,439,248
Loans receivable, PPP
(3,250,008
)
(4,957,357
)
(6,305,056
)
(5,178,089
)
(4,561,365
)
Total assets, excluding PPP
$
16,325,020
$
14,151,565
$
13,330,052
$
13,639,571
$
13,877,883
Coverage of credit loss reserves for
loans and leases held for investment, excluding PPP
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Loans and leases receivable
$
12,268,306
$
12,927,956
$
14,077,198
$
12,714,578
$
12,136,733
Loans receivable, PPP
(3,250,008
)
(4,957,357
)
(6,305,056
)
(5,178,089
)
(4,561,365
)
Loans and leases held for investment,
excluding PPP
$
9,018,298
$
7,970,599
$
7,772,142
$
7,536,489
$
7,575,368
Allowance for credit losses on loans and
leases
$
137,804
$
131,496
$
125,436
$
128,736
$
144,176
Coverage of credit loss reserves for loans
and leases held for investment, excluding PPP
1.53
%
1.65
%
1.61
%
1.71
%
1.90
%
Tangible Common Equity to Tangible
Assets, excluding PPP - Customers Bancorp
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
GAAP total shareholders' equity
$
1,366,217
$
1,284,299
$
1,250,729
$
1,188,721
$
1,117,086
Reconciling items:
Preferred stock
(137,794
)
(137,794
)
(217,471
)
(217,471
)
(217,471
)
Goodwill and other intangibles (1)
(3,736
)
(3,794
)
(3,853
)
(3,911
)
(14,298
)
Tangible common equity
$
1,224,687
$
1,142,711
$
1,029,405
$
967,339
$
885,317
GAAP total assets
$
19,575,028
$
19,108,922
$
19,635,108
$
18,817,660
$
18,439,248
Loans receivable, PPP
(3,250,008
)
(4,957,357
)
(6,305,056
)
(5,178,089
)
(4,561,365
)
Total assets, excluding PPP
$
16,325,020
$
14,151,565
$
13,330,052
$
13,639,571
$
13,877,883
Reconciling items:
Goodwill and other intangibles (1)
(3,736
)
(3,794
)
(3,853
)
(3,911
)
(14,298
)
Tangible assets
$
16,321,284
$
14,147,771
$
13,326,199
$
13,635,660
$
13,863,585
Tangible common equity to tangible
assets
7.50
%
8.08
%
7.72
%
7.09
%
6.39
%
(1) Includes goodwill and other intangibles reported in assets
of discontinued operations.
Deferments to total loans and leases,
excluding PPP
(dollars in thousands except per share
data)
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Total loans and leases
$
14,568,885
$
15,515,537
$
16,967,022
$
16,168,306
$
15,832,251
Loans receivable, PPP
(3,250,008
)
(4,957,357
)
(6,305,056
)
(5,178,089
)
(4,561,365
)
Total loans and leases, excluding PPP
$
11,318,877
$
10,558,180
$
10,661,966
$
10,990,217
$
11,270,886
Commercial deferments
$
—
$
73,400
$
89,800
$
176,100
$
202,100
Consumer deferments
6,060
6,708
8,400
13,000
16,400
Total deferments
$
6,060
$
80,108
$
98,200
$
189,100
$
218,500
Commercial deferments to total loans and
leases, excluding PPP
—
%
0.7
%
0.8
%
1.6
%
1.8
%
Consumer deferments to total loans and
leases, excluding PPP
0.1
%
0.1
%
0.1
%
0.1
%
0.1
%
Total deferments to total loans and
leases, excluding PPP
0.1
%
0.8
%
0.9
%
1.7
%
1.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220123005128/en/
Jay Sidhu, Chairman & CEO 610-935-8693 Sam Sidhu, President
484-744-8985 Carla Leibold, CFO 484-923-8802
Customers Bancorp (NYSE:CUBI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Customers Bancorp (NYSE:CUBI)
Historical Stock Chart
From Jul 2023 to Jul 2024