Customers Bancorp Reports Results for Fourth Quarter and Full Year 2024

01/23/2025
16:30

WEST READING, Pa.--(BUSINESS WIRE)-- Customers Bancorp, Inc. (NYSE:CUBI):

Fourth Quarter 2024 Highlights

Q4 2024 net income available to common shareholders was $23.3 million, or $0.71 per diluted share; ROAA was 0.48% and ROCE was 5.50%.
Q4 2024 core earnings*¹were $44.2 million, or $1.36 per diluted share; Core ROAA* was 0.86% and Core ROCE* was 10.44%.
Q4 2024 net income available to common shareholders included $20.0 million of post-tax losses in connection with the securities portfolio repositioning executed to improve structural liquidity, reduce asset sensitivity and benefit margin.
Total loans and leases held for investment grew by $671.1 million in Q4 2024 from Q3 2024 or 19% annualized.
Total deposits increased by $777.1 million or 4.3% in Q4 2024 from Q3 2024.
Non-interest bearing demand deposits increased $937.5 million or 20.1% in Q4 2024 from Q3 2024; non-interest bearing deposits represented 29.7% of total deposits at December 31, 2024.
Q4 2024 average cost of deposits was 3.07% compared to Q3 2024 of 3.46%, a decrease of 39 basis points.
Q4 2024 net interest margin, tax equivalent (“NIM”) was 3.11%, compared to Q3 2024 NIM of 3.06%, an increase of 5 basis points primarily due to lower deposit costs.
Ratio of non-performing assets to total assets was 0.25% at December 31, 2024 compared to 0.22% at September 30, 2024.
Q4 2024 provision for credit losses on loans and leases was $18.2 million compared to $17.8 million in Q3 2024 and the allowance for credit losses on loans and leases equaled 316% of non-performing loans at December 31, 2024, compared to 281% at September 30, 2024.
CET 1 ratio of 12.0%²at December 31, 2024, compared to 12.5% at September 30, 2024.
TCE / TA ratio* of 7.6% at December 31, 2024, compared to 7.7% at September 30, 2024.
Q4 2024 book value per share and tangible book value per share* both grew by approximately $1.12, or 2.1% over Q3 2024, or 8.4% annualized, with a tangible book value per share* of $54.08 at December 31, 2024. This was driven by current quarter earnings and a decrease in AOCI losses of $9.5 million.


*		Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
¹		Excludes pre-tax losses on investment securities of $26.7 million, severance expense of $1.6 million, derivative credit valuation adjustment of $0.4 million, unrealized gain on equity method investments of $0.4 million, legal settlement of $0.2 million and unrealized losses on loans held for sale of $0.1 million.
²		Regulatory capital ratios as of December 31, 2024 are estimates.

Full Year 2024 Highlights

2024 net income available to common shareholders was $166.4 million, or $5.09 per diluted share; ROAA was 0.85% and ROCE was 10.36%.
2024 core earnings* were $183.1 million, or $5.60 per diluted share; Core ROAA* was 0.92% and Core ROCE* was 11.40%.
Total loans and leases held for investment grew by $1.6 billion or 12.3% from December 31, 2023 to December 31, 2024.
Total deposits increased by $926.2 million or 5.2%, from December 31, 2023 to December 31, 2024.
Non-interest bearing demand deposits increased $1.2 billion, or 26.8%, from December 31, 2023 to December 31, 2024.
2024 NIM was 3.15% compared to 2023 NIM of 3.29%.
Ratio of non-performing assets to total assets was 0.25% at December 31, 2024 compared to 0.13% at December 31, 2023.
Allowance for credit losses on loans and leases equaled 316% of non-performing loans at December 31, 2024, compared to 499% at December 31, 2023.
CET 1 capital ratio of 12.0%¹at December 31, 2024, compared to 12.2% at December 31, 2023.
TCE / TA ratio* of 7.6% at December 31, 2024, compared to 7.0% at December 31, 2023.
Book value per share and tangible book value per share* grew year over year by approximately $6.47 or 13.6%, driven by strong 2024 annual earnings combined with the decreased AOCI losses of $40.0 million over the same time period. Tangible book value per share* has grown at a 16% compound annual growth rate (CAGR) over the past 5 years, significantly higher than the regional bank peer median²of 4%.
Repurchased 393,303 common shares below book value at a weighted-average price of $48.36 for $19.2 million in 2024.


*		Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document.
¹		Regulatory capital ratios as of December 31, 2024 are estimates.
²		Regional bank peers based on selected 2024 proxy peers with a reporting date on or before January 22, 2025.

CEO Commentary

“We are pleased to share our fourth quarter and full year 2024 results that highlight the company’s continuing incredible deposit transformation and underscore our success in growing franchise value in a competitive market environment. Exceptional client service is the cornerstone of our culture and business model, and is so important it is in our name. To measure customer satisfaction, we recently participated in an annual Net Promoter Score survey, also known as NPS. Our most recent score of 73 is well above the U.S. banking industry average of 41¹ and is above the scores of many other service-oriented brands across all industries. We are delighted by the positive response from our customers and the trust they place in us. This is a testament to our customer-centric mindset and commitment to service provided by our extraordinary colleagues,” said Customers Bancorp Chairman and CEO Jay Sidhu.

“In the fourth quarter, we once again brought in over $1 billion of gross deposit inflows which we utilized in part to paydown higher-cost and brokered deposits. Non-interest bearing deposits increased by $937.5 million and represented 29.7% of total deposits at December 31, 2024. These efforts, along with proactive management of the cost of our existing deposit portfolio, resulted in a 39 basis point reduction in our cost of deposits during the quarter.

“Our deposit pipelines continue to expand with a significant conversion ratio. In addition, deposit focused teams we have recruited since March 2023 managed $1.7 billion or 9% of total deposits. Enhanced by their efforts, we’ve increased commercial deposit accounts by 48% over the past two years, adding granular and sticky relationships while significantly lowering our cost of deposits, increasing our non-interest bearing deposits, and driving franchise value. During the quarter, we opportunistically repositioned a portion of the securities portfolio to improve structural liquidity, reduce asset sensitivity and benefit margin. Even with the repositioning transaction and balance sheet growth we experienced during the quarter, our TCE / TA ratio* remained roughly flat. 2024 was a year in which we made significant investments in our future. We believe the company is extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.

“Our Q4 2024 GAAP earnings were $23.3 million, or $0.71 per diluted share, and core earnings* were $44.2 million, or $1.36 per diluted share. Fourth quarter GAAP results include losses in connection the accretive securities portfolio repositioning. We maintain a strong liquidity position, with $9.1 billion of liquidity immediately available, which covers approximately 159% of uninsured deposits² and our loan to deposit ratio was 78%, at December 31, 2024. We continue to focus on loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $671.1 million which represent a 19% annualized growth rate, driven by strong commercial loan growth of $683.1 million led by growth in our existing specialized lending verticals. In 2024, total loans and leases held for investment grew by $1.6 billion which represent a 12.3% growth rate. Asset quality remains strong with our NPA ratio at just 0.25% of total assets and reserve levels are robust at 316% of total non-performing loans at the end of Q4 2024. Total net charge-offs declined by $2.4 million. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. Tangible Book Value per share* grew to $54.08. We believe that our unique strategy and the investments we have and are making, along with the exceptional talent in our organization, will position us for success in 2025 and beyond. We are extremely excited about the future of this company especially in what we expect to be a more favorable banking environment,” Jay Sidhu continued.


*		Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
¹		The Qualtrics U.S. Banking Relational Net Promoter® Score (NPS®) benchmark is derived from Qualtrics' vast Customer Experience dataset. The dataset includes 2022-2023 anonymized results from 50+ U.S. banking organizations, covering 80+ separate relationship surveys, and encompassing 400,000 individual survey respondents.
²		Uninsured deposits (estimate) of $7.3 billion to be reported on the Bank’s call report, less deposits of $1.5 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $176.2 million.

Financial Highlights

	At or Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024			September 30, 2024			Increase (Decrease)
Profitability Metrics:
Net income available for common shareholders	$	23,266		$	42,937		$	(19,671	)	(45.8	)%
Diluted earnings per share	$	0.71		$	1.31		$	(0.60	)	(45.8	)%
Core earnings*	$	44,168		$	43,838		$	330		0.8	%
Adjusted core earnings*	$	44,168		$	41,381		$	2,787		6.7	%
Core earnings per share*	$	1.36		$	1.34		$	0.02		1.5	%
Adjusted core earnings per share*	$	1.36		$	1.26		$	0.10		7.9	%
Return on average assets (“ROAA”)		0.48	%		0.88	%		(0.40	)
Core ROAA*		0.86	%		0.89	%		(0.03	)
Adjusted core ROAA*		0.86	%		0.85	%		0.01
Return on average common equity (“ROCE”)		5.50	%		10.44	%		(4.94	)
Core ROCE*		10.44	%		10.66	%		(0.22	)
Adjusted core ROCE*		10.44	%		10.06	%		0.38
Core pre-tax pre-provision net income*	$	84,224		$	64,824		$	19,400		29.9	%
Adjusted core pre-tax pre-provision net income*	$	84,224		$	61,827		$	22,397		36.2	%
Net interest margin, tax equivalent		3.11	%		3.06	%		0.05
Yield on loans (Loan yield)		6.78	%		6.99	%		(0.21	)
Cost of deposits		3.07	%		3.46	%		(0.39	)
Efficiency ratio		56.86	%		62.40	%		(5.54	)
Core efficiency ratio*		56.12	%		61.69	%		(5.57	)
Adjusted core efficiency ratio*		56.12	%		63.48	%		(7.36	)
Non-interest expense to average total assets		1.98	%		1.95	%		0.03
Core non-interest expense to average total assets*		1.95	%		1.94	%		0.01
Adjusted core non-interest expense to average total assets*		1.95	%		1.99	%		(0.04	)
Balance Sheet Trends:
Total assets	$	22,308,241		$	21,456,082		$	852,159		4.0	%
Total cash and investment securities	$	6,797,562		$	6,564,528		$	233,034		3.5	%
Total loans and leases	$	14,653,556		$	14,053,116		$	600,440		4.3	%
Non-interest bearing demand deposits	$	5,608,288		$	4,670,809		$	937,479		20.1	%
Total deposits	$	18,846,461		$	18,069,389		$	777,072		4.3	%
Capital Metrics:
Common Equity	$	1,698,889		$	1,663,386		$	35,503		2.1	%
Tangible Common Equity*	$	1,695,260		$	1,659,757		$	35,503		2.1	%
Common Equity to Total Assets		7.6	%		7.8	%		(0.2	)
Tangible Common Equity to Tangible Assets*		7.6	%		7.7	%		(0.1	)
Book Value per common share	$	54.20		$	53.07		$	1.13		2.1	%
Tangible Book Value per common share*	$	54.08		$	52.96		$	1.12		2.1	%
Common equity Tier 1 capital ratio⁽¹⁾		12.0	%		12.5	%		(0.5	)
Total risk based capital ratio⁽¹⁾		14.8	%		15.4	%		(0.6	)

(1) Regulatory capital ratios as of December 31, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Financial Highlights

	At or Three Months Ended											Twelve Months Ended
(Dollars in thousands, except per share data)	December 31, 2024			December 31, 2023			Increase (Decrease)					December 31, 2024			December 31, 2023			Increase (Decrease)
Profitability Metrics:
Net income available for common shareholders	$	23,266		$	58,223		$	(34,957	)	(60.0	)%	$	166,429		$	235,448		$	(69,019	)	(29.3	)%
Diluted earnings per share	$	0.71		$	1.79		$	(1.08	)	(60.3	)%	$	5.09		$	7.32		$	(2.23	)	(30.5	)%
Core earnings*	$	44,168		$	61,633		$	(17,465	)	(28.3	)%	$	183,105		$	248,233		$	(65,128	)	(26.2	)%
Adjusted core earnings*	$	44,168		$	61,633		$	(17,465	)	(28.3	)%	$	189,253		$	248,233		$	(58,980	)	(23.8	)%
Core earnings per share*	$	1.36		$	1.90		$	(0.54	)	(28.4	)%	$	5.60		$	7.72		$	(2.12	)	(27.5	)%
Adjusted core earnings per share*	$	1.36		$	1.90		$	(0.54	)	(28.4	)%	$	5.78		$	7.72		$	(1.94	)	(25.1	)%
Return on average assets (“ROAA”)		0.48	%		1.16	%		(0.68	)				0.85	%		1.16	%		(0.31	)
Core ROAA*		0.86	%		1.22	%		(0.36	)				0.92	%		1.22	%		(0.30	)
Adjusted core ROAA*		0.86	%		1.22	%		(0.36	)				0.95	%		1.22	%		(0.27	)
Return on average common equity (“ROCE”)		5.50	%		15.93	%		(10.43	)				10.36	%		17.33	%		(6.97	)
Core ROCE*		10.44	%		16.87	%		(6.43	)				11.40	%		18.27	%		(6.87	)
Adjusted core ROCE*		10.44	%		16.87	%		(6.43	)				11.78	%		18.27	%		(6.49	)
Core pre-tax pre-provision net income*	$	84,224		$	101,884		$	(17,660	)	(17.3	)%	$	321,942		$	416,563		$	(94,621	)	(22.7	)%
Adjusted core pre-tax pre-provision net income*	$	84,224		$	101,884		$	(17,660	)	(17.3	)%	$	330,259		$	416,563		$	(86,304	)	(20.7	)%
Net interest margin, tax equivalent		3.11	%		3.31	%		(0.20	)				3.15	%		3.29	%		(0.14	)
Yield on loans (Loan yield)		6.78	%		7.30	%		(0.52	)				6.99	%		7.16	%		(0.17	)
Cost of deposits		3.07	%		3.39	%		(0.32	)				3.34	%		3.27	%		0.07
Efficiency ratio		56.86	%		49.08	%		7.78					56.21	%		46.49	%		9.72
Core efficiency ratio*		56.12	%		46.70	%		9.42					56.25	%		45.45	%		10.80
Adjusted core efficiency ratio*		56.12	%		46.70	%		9.42					55.11	%		45.45	%		9.66
Non-interest expense to average total assets		1.98	%		1.75	%		0.23					1.95	%		1.64	%		0.31
Core non-interest expense to average total assets*		1.95	%		1.67	%		0.28					1.92	%		1.62	%		0.30
Adjusted core non-interest expense to average total assets*		1.95	%		1.67	%		0.28					1.88	%		1.62	%		0.26

(1) Regulatory capital ratios as of December 31, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Financial Highlights

	At or Three Months Ended
(Dollars in thousands, except per share data)	December 31, 2024			December 31, 2023			Increase (Decrease)
Balance Sheet Trends:
Total assets	$	22,308,241		$	21,316,265		$	991,976		4.7	%
Total cash and investment securities	$	6,797,562		$	7,355,156		$	(557,594	)	(7.6	)%
Total loans and leases	$	14,653,556		$	13,202,084		$	1,451,472		11.0	%
Non-interest bearing demand deposits	$	5,608,288		$	4,422,494		$	1,185,794		26.8	%
Total deposits	$	18,846,461		$	17,920,236		$	926,225		5.2	%
Capital Metrics:
Common Equity	$	1,698,889		$	1,500,600		$	198,289		13.2	%
Tangible Common Equity*	$	1,695,260		$	1,496,971		$	198,289		13.2	%
Common Equity to Total Assets		7.6	%		7.0	%		0.6
Tangible Common Equity to Tangible Assets*		7.6	%		7.0	%		0.6
Book Value per common share	$	54.20		$	47.73		$	6.47		13.6	%
Tangible Book Value per common share*	$	54.08		$	47.61		$	6.47		13.6	%
Common equity Tier 1 capital ratio⁽¹⁾		12.0	%		12.2	%		(0.2	)
Total risk based capital ratio⁽¹⁾		14.8	%		15.3	%		(0.5	)

(1) Regulatory capital ratios as of December 31, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Key Balance Sheet Trends

Loans and Leases

The following table presents the composition of total loans and leases as of the dates indicated:

(Dollars in thousands)	December 31, 2024		% of Total		September 30, 2024		% of Total		December 31, 2023		% of Total
Loans and Leases Held for Investment
Commercial:
Commercial & industrial:
Specialized lending	$	5,842,420	40.4	%	$	5,468,507	39.7	%	$	5,006,693	38.9	%
Other commercial & industrial⁽¹⁾		1,062,631	7.4			1,087,222	7.9			1,162,317	9.1
Mortgage finance		1,440,847	10.0			1,367,617	9.9			1,014,742	7.9
Multifamily		2,252,246	15.6			2,115,978	15.4			2,138,622	16.6
Commercial real estate owner occupied		1,100,944	7.6			981,904	7.1			797,319	6.2
Commercial real estate non-owner occupied		1,359,130	9.4			1,326,591	9.6			1,177,650	9.2
Construction		147,209	1.0			174,509	1.3			166,393	1.2
Total commercial loans and leases		13,205,427	91.4			12,522,328	90.9			11,463,736	89.1
Consumer:
Residential		496,559	3.4			500,786	3.6			484,435	3.8
Manufactured housing		33,123	0.3			34,481	0.3			38,670	0.3
Installment:
Personal		463,854	3.2			453,739	3.3			555,533	4.3
Other		249,799	1.7			266,362	1.9			319,393	2.5
Total installment loans		713,653	4.9			720,101	5.2			874,926	6.8
Total consumer loans		1,243,335	8.6			1,255,368	9.1			1,398,031	10.9
Total loans and leases held for investment	$	14,448,762	100.0	%	$	13,777,696	100.0	%	$	12,861,767	100.0	%

Loans Held for Sale
Residential	$	1,836	0.9	%	$	2,523	0.9	%	$	1,215	0.3	%
Installment:
Personal		40,903	20.0			55,799	20.3			151,040	44.4
Other		162,055	79.1			217,098	78.8			188,062	55.3
Total installment loans		202,958	99.1			272,897	99.1			339,102	99.7
Total loans held for sale	$	204,794	100.0	%	$	275,420	100.0	%	$	340,317	100.0	%
Total loans and leases portfolio	$	14,653,556			$	14,053,116			$	13,202,084

(1)

Includes PPP loans of $22.8 million, $30.5 million and $74.7 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively.

Loans and Leases Held for Investment

Loans and leases held for investment were $14.4 billion at December 31, 2024, up $671.1 million, or 4.9%, from September 30, 2024. Specialized lending increased by $373.9 million, or 6.8% quarter-over-quarter, to $5.8 billion. Multifamily loans increased by $136.3 million, or 6.4% to $2.3 billion. Owner-occupied commercial real estate loans increased by $119.0 million, or 12.1% to $1.1 billion. Mortgage finance loans increased by $73.2 million, or 5.4% to $1.4 billion. Non-owner occupied commercial real estate loans increased by $32.5 million, or 2.5% to $1.4 billion. These increases were partially offset by a decrease in other commercial and industrial loans of $24.6 million, or 2.3%, to $1.1 billion.

Loans and leases held for investment of $14.4 billion at December 31, 2024 were up $1.6 billion, or 12.3%, year-over-year. Specialized lending increased by $835.7 million, or 16.7% year-over-year. Mortgage finance loans increased by $426.1 million. Owner-occupied commercial real estate loans increased by $303.6 million. Non-owner occupied commercial real estate loans increased by $181.5 million. Multifamily loans increased by $113.6 million. These increases were partially offset by decreases in consumer installment loans of $161.3 million and other commercial and industrial loans of $99.7 million.

Loans Held for Sale

Loans held for sale decreased $70.6 million quarter-over-quarter, and were $204.8 million at December 31, 2024.

Allowance for Credit Losses on Loans and Leases

The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:

	At or Three Months Ended									At or Three Months Ended
(Dollars in thousands)	December 31, 2024			September 30, 2024			Increase (Decrease)			December 31, 2024			December 31, 2023			Increase (Decrease)
Allowance for credit losses on loans and leases	$	136,775		$	133,158		$	3,617		$	136,775		$	135,311		$	1,464
Provision (benefit) for credit losses on loans and leases	$	18,229		$	17,766		$	463		$	18,229		$	13,420		$	4,809
Net charge-offs from loans held for investment	$	14,612		$	17,044		$	(2,432	)	$	14,612		$	17,322		$	(2,710	)
Annualized net charge-offs to average loans and leases		0.41	%		0.50	%					0.41	%		0.51	%
Coverage of credit loss reserves for loans and leases held for investment		1.04	%		1.06	%					1.04	%		1.13	%

Net charge-offs decreased with $14.6 million in Q4 2024, compared to $17.0 million in Q3 2024 and $17.3 million in Q4 2023.

Provision (benefit) for Credit Losses

	Three Months Ended									Three Months Ended
(Dollars in thousands)	December 31, 2024			September 30, 2024			Increase (Decrease)			December 31, 2024			December 31, 2023			Increase (Decrease)
Provision (benefit) for credit losses on loans and leases	$	18,229		$	17,766		$	463		$	18,229		$	13,420		$	4,809
Provision (benefit) for credit losses on available for sale debt securities		2,965			(700	)		3,665			2,965			103			2,862
Provision for credit losses		21,194			17,066			4,128			21,194			13,523			7,671
Provision (benefit) for credit losses on unfunded commitments		(664	)		642			(1,306	)		(664	)		(136	)		(528	)
Total provision for credit losses	$	20,530		$	17,708		$	2,822		$	20,530		$	13,387		$	7,143

The provision for credit losses on loans and leases in Q4 2024 was $18.2 million, compared to $17.8 million in Q3 2024. The higher provision in Q4 2024 was primarily due to slight deterioration in macroeconomic forecasts.

The provision for credit losses on available for sale investment securities in Q4 2024 was a provision of $3.0 million, compared to a benefit to provision of $0.7 million in Q3 2024.

The provision for credit losses on loans and leases in Q4 2024 was $18.2 million, compared to $13.4 million in Q4 2023. The higher provision in Q4 2024 compared to the year ago period was primarily due to higher balances in commercial and industrial loan balances held for investment, partially offset by improvements in macroeconomic forecasts and lower balances in consumer installment loans held for investment.

The provision for credit losses on available for sale investment securities in Q4 2024 was a provision of $3.0 million compared to $0.1 million in Q4 2023.

Asset Quality

The following table presents asset quality metrics as of the dates indicated:

(Dollars in thousands)	December 31, 2024			September 30, 2024			Increase (Decrease)			December 31, 2024			December 31, 2023			Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)	$	43,275		$	47,326		$	(4,051	)	$	43,275		$	27,110		$	16,165
Non-performing assets	$	55,807		$	47,326		$	8,481		$	55,807		$	27,209		$	28,598
NPLs to total loans and leases		0.30	%		0.34	%					0.30	%		0.21	%
Reserves to NPLs		316.06	%		281.36	%					316.06	%		499.12	%
NPAs to total assets		0.25	%		0.22	%					0.25	%		0.13	%

Loans and leases⁽¹⁾ risk ratings:
Commercial loans and leases
Pass	$	11,403,930		$	10,844,500		$	559,430		$	11,403,930		$	9,955,243		$	1,448,687
Special Mention		175,055			178,026			(2,971	)		175,055			196,182			(21,127	)
Substandard		282,563			218,921			63,642			282,563			339,664			(57,101	)
Total commercial loans and leases		11,861,548			11,241,447			620,101			11,861,548			10,491,089			1,370,459
Consumer loans
Performing		1,227,359			1,240,581			(13,222	)		1,227,359			1,379,603			(152,244	)
Non-performing		15,976			14,787			1,189			15,976			18,428			(2,452	)
Total consumer loans		1,243,335			1,255,368			(12,033	)		1,243,335			1,398,031			(154,696	)
Loans and leases receivable⁽¹⁾	$	13,104,883		$	12,496,815		$	608,068		$	13,104,883		$	11,889,120		$	1,215,763

(1)

Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value and eligible PPP loans that are fully guaranteed by the Small Business Administration.

Over the last decade, the Bank has developed a suite of commercial loan products with one particularly important common denominator: a relatively low credit risk assumption. The Bank’s commercial and industrial (“C&I”), mortgage finance, corporate and specialized lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and historically low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite a challenging economic and rate 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, management employs a bottom-up data driven approach to analyze the commercial portfolio.

Total consumer installment loans held for investment at December 31, 2024 were less than 4% of total assets and approximately 5% of total loans and leases held for investment, and were supported by an allowance for credit losses of $49.7 million. At December 31, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 742, average debt-to-income of 20% and average borrower income of $102 thousand.

Non-performing loans at December 31, 2024 decreased to 0.30% of total loans and leases, compared to 0.34% at September 30, 2024 and increased, compared to 0.21% at December 31, 2023.

Investment Securities

The investment securities portfolio, including debt securities classified as available for sale (“AFS”) and held to maturity (“HTM”) provides periodic cash flows through regular maturities and amortization, can be used as collateral to secure additional funding, and is an important component of the Bank’s liquidity position.

The following table presents the composition of the investment securities portfolio as of the dates indicated:

(Dollars in thousands)	December 31, 2024		September 30, 2024		December 31, 2023
Debt securities, available for sale	$	1,985,438	$	2,377,733	$	2,376,860
Equity securities		34,256		34,336		28,780
Investment securities, at fair value		2,019,694		2,412,069		2,405,640
Debt securities, held to maturity		991,937		1,064,437		1,103,170
Total investment securities portfolio	$	3,011,631	$	3,476,506	$	3,508,810

Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At December 31, 2024, the AFS debt securities portfolio had a spot yield of 5.62%, an effective duration of approximately 2.6 years, and approximately 32% are variable rate. Additionally, 66% of the AFS securities portfolio was AAA rated at December 31, 2024.

At December 31, 2024, the HTM debt securities portfolio represented only 4.4% of total assets at December 31, 2024, had a spot yield of 4.13% and an effective duration of approximately 3.5 years. Additionally, at December 31, 2024, approximately 44% of the HTM securities were AAA rated and 52% were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

The following table presents the composition of our deposit portfolio as of the dates indicated:

(Dollars in thousands)	December 31, 2024		% of Total		September 30, 2024		% of Total		December 31, 2023		% of Total
Demand, non-interest bearing	$	5,608,288	29.7	%	$	4,670,809	25.9	%	$	4,422,494	24.7	%
Demand, interest bearing		5,553,698	29.5			5,606,500	31.0			5,580,527	31.1
Total demand deposits		11,161,986	59.2			10,277,309	56.9			10,003,021	55.8
Savings		1,131,819	6.0			1,399,968	7.7			1,402,941	7.8
Money market		3,844,451	20.4			3,961,028	21.9			3,226,395	18.0
Time deposits		2,708,205	14.4			2,431,084	13.5			3,287,879	18.4
Total deposits	$	18,846,461	100.0	%	$	18,069,389	100.0	%	$	17,920,236	100.0	%

Total deposits increased $777.1 million, or 4.3%, to $18.8 billion at December 31, 2024 as compared to the prior quarter. Non-interest bearing demand deposits increased $937.5 million, or 20.1%, to $5.6 billion and time deposits increased $277.1 million, or 11.4%, to $2.7 billion. These increases were offset by decreases in savings deposits of $268.1 million, or 19.2%, to $1.1 billion, money market deposits of $116.6 million, or 2.9%, to $3.8 billion and interest bearing demand deposits of $52.8 million, or 0.9%, to $5.6 billion. The total average cost of deposits decreased by 39 basis points to 3.07% in Q4 2024 from 3.46% in the prior quarter primarily due to a favorable shift in deposit mix and lower market interest rates. Total estimated uninsured deposits were $5.7 billion¹ , or 30% of total deposits (inclusive of accrued interest) at December 31, 2024.

Total deposits increased $926.2 million, or 5.2%, to $18.8 billion at December 31, 2024 as compared to a year ago. Non-interest bearing demand deposits increased $1.2 billion, or 26.8%, to $5.6 billion and money market deposits increased $618.1 million, or 19.2%, to $3.8 billion. These increases were offset by decreases in time deposits of $579.7 million, or 17.6% to $2.7 billion, savings deposits of $271.1 million, or 19.3%, to $1.1 billion and interest bearing demand deposits of $26.8 million, or 0.5%, to $5.6 billion. The total average cost of deposits decreased by 32 basis points to 3.07% in Q4 2024 from 3.39% in the prior year primarily due to a favorable shift in deposit mix and lower market interest rates.

¹ Uninsured deposits (estimate) of $7.3 billion to be reported on the Bank’s call report, less deposits of $1.5 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $176.2 million.

Borrowings

The following table presents the composition of our borrowings as of the dates indicated:

(Dollars in thousands)	December 31, 2024		September 30, 2024		December 31, 2023
FHLB advances	$	1,128,352	$	1,117,229	$	1,203,207
Senior notes		99,068		99,033		123,840
Subordinated debt		182,509		182,439		182,230
Total borrowings	$	1,409,929	$	1,398,701	$	1,509,277

Total borrowings increased $11.2 million, or 0.8%, to $1.4 billion at December 31, 2024 as compared to the prior quarter. This increase primarily resulted from net draws of $25.0 million in FHLB advances. As of December 31, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.9 billion, of which $1.1 billion of available capacity was utilized in borrowings and $1.5 billion was utilized to collateralize deposits.

Total borrowings decreased $99.3 million, or 6.6%, to $1.4 billion at December 31, 2024 as compared to a year ago. This decrease primarily resulted from net repayments of $70.0 million in FHLB advances and $25.0 million in senior notes upon maturity.

Capital

The following table presents certain capital amounts and ratios as of the dates indicated:

(Dollars in thousands except per share data)	December 31, 2024			September 30, 2024			December 31, 2023
Customers Bancorp, Inc.
Common Equity	$	1,698,889		$	1,663,386		$	1,500,600
Tangible Common Equity*	$	1,695,260		$	1,659,757		$	1,496,971
Common Equity to Total Assets		7.6	%		7.8	%		7.0	%
Tangible Common Equity to Tangible Assets*		7.6	%		7.7	%		7.0	%
Book Value per common share	$	54.20		$	53.07		$	47.73
Tangible Book Value per common share*	$	54.08		$	52.96		$	47.61
Common equity Tier 1 (“CET 1”) capital ratio⁽¹⁾		12.0	%		12.5	%		12.2	%
Total risk based capital ratio⁽¹⁾		14.8	%		15.4	%		15.3	%

(1) Regulatory capital ratios as of December 31, 2024 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Customers Bancorp’s common equity increased $35.5 million to $1.7 billion, and tangible common equity* increased $35.5 million to $1.7 billion, at December 31, 2024 compared to the prior quarter, respectively, primarily from earnings of $23.3 million and decreased unrealized losses on investment securities of $9.5 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). These increases were offset in part by $1.0 million of common share repurchases in Q4 2024. Similarly, book value per common share increased to $54.20 from $53.07, and tangible book value per common share* increased to $54.08 from $52.96, at December 31, 2024 and September 30, 2024, respectively.

Customers Bancorp’s common equity increased $198.3 million to $1.7 billion, and tangible common equity* increased $198.3 million to $1.7 billion, at December 31, 2024 compared to a year ago, respectively, primarily from earnings of $166.4 million and decreased unrealized losses on investment securities in AOCI of $40.0 million (net of taxes), offset in part by $19.2 million of common share repurchases. Similarly, book value per common share increased to $54.20 from $47.73, and tangible book value per common share* increased to $54.08 from $47.61, at December 31, 2024 and December 31, 2023, respectively.

At the Customers Bancorp level, the CET 1 ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.0%, 14.8%, 7.6%, and 7.6%, respectively, at December 31, 2024.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At December 31, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 12.9% and 14.3%, respectively.

Key Profitability Trends

Net Interest Income

Net interest income totaled $167.8 million in Q4 2024, an increase of $9.3 million from Q3 2024. This increase was primarily due to lower interest expense of $11.5 million due to a favorable shift in deposit mix and lower market interest rates. Interest income decreased $2.2 million primarily due to lower interest income from investment securities, partially offset by higher balances in interest-earning deposits.

“Net interest income and net interest margin expanded in the quarter primarily driven by improvements in the liability side of the balance sheet as we lowered interest bearing deposit costs and had higher levels of average non-interest bearing deposits. This is evident in the fact that our total cost of deposits declined by 39 basis points during the quarter. Additionally, robust loan growth late in the quarter should provide a strong foundation for our net interest income in 2025,” stated Customers Bancorp President Sam Sidhu. “We have positive drivers to net interest income on both sides of the balance sheet though we continue to believe the best opportunity remains in reducing our interest expense with continued momentum from our new deposit focused commercial banking teams and across our franchise.”

Net interest income totaled $167.8 million in Q4 2024, a decrease of $4.7 million from Q4 2023. This decrease was primarily due to lower interest income in specialized lending and investment securities, partially offset by lower interest expense from a favorable shift in deposit mix, lower market interest rates and lower balances in other borrowings.

Non-Interest Income

The following table presents details of non-interest income for the periods indicated:

	Three Months Ended									Three Months Ended
(Dollars in thousands)	December 31, 2024			September 30, 2024			Increase (Decrease)			December 31, 2024			December 31, 2023			Increase (Decrease)
Commercial lease income	$	10,604		$	10,093		$	511		$	10,604		$	9,035		$	1,569
Loan fees		8,639			8,011			628			8,639			5,926			2,713
Bank-owned life insurance		2,125			2,049			76			2,125			2,160			(35	)
Mortgage finance transactional fees		1,010			1,087			(77	)		1,010			927			83
Net gain (loss) on sale of loans and leases		(852	)		(14,548	)		13,696			(852	)		(91	)		(761	)
Net gain (loss) on sale of investment securities		(26,260	)		—			(26,260	)		(26,260	)		(145	)		(26,115	)
Unrealized gain on equity method investments		389			—			389			389			—			389
Other		3,954			1,865			2,089			3,954			860			3,094
Total non-interest income	$	(391	)	$	8,557		$	(8,948	)	$	(391	)	$	18,672		$	(19,063	)

Reported non-interest income totaled a loss of $0.4 million for Q4 2024, a decrease of $8.9 million compared to Q3 2024. The decrease was primarily due to $26.3 million in net realized loss on sale of investment securities, partially offset by a decrease of $13.6 million in loss on leases of commercial clean vehicles that were accounted for as sales-type leases and included within net gain (loss) on sale of loans and leases, and an increase in deposit account fees of $1.9 million. The commercial clean vehicle leases generated the same amount of investment tax credits that were included as a benefit to income tax expense in Q4 2024 and Q3 2024. In Q4 2024, the Bank invested the proceeds from the sale of lower yielding investment securities into higher yielding loans and investment securities.

Non-interest income totaled a loss of $0.4 million for Q4 2024, a decrease of $19.1 million compared to Q4 2023. The decrease was primarily due to $26.3 million in net realized loss on sale of investment securities, partially offset by increases in commercial lease income of $1.6 million, loan fees of $2.7 million primarily resulting from increased unused line of credit fees, and deposit account fees of $1.9 million.

Non-Interest Expense

The following table presents details of non-interest expense for the periods indicated:

	Three Months Ended							Three Months Ended
(Dollars in thousands)	December 31, 2024		September 30, 2024		Increase (Decrease)			December 31, 2024		December 31, 2023		Increase (Decrease)
Salaries and employee benefits	$	47,147	$	47,717	$	(570	)	$	47,147	$	33,965	$	13,182
Technology, communication and bank operations		13,435		13,588		(153	)		13,435		16,887		(3,452	)
Commercial lease depreciation		8,933		7,811		1,122			8,933		7,357		1,576
Professional services		13,473		9,048		4,425			13,473		9,820		3,653
Loan servicing		4,584		3,778		806			4,584		3,779		805
Occupancy		3,335		2,987		348			3,335		2,320		1,015
FDIC assessments, non-income taxes and regulatory fees		10,077		7,902		2,175			10,077		13,977		(3,900	)
Advertising and promotion		1,645		908		737			1,645		850		795
Other		7,746		10,279		(2,533	)		7,746		4,812		2,934
Total non-interest expense	$	110,375	$	104,018	$	6,357		$	110,375	$	93,767	$	16,608

Non-interest expenses totaled $110.4 million in Q4 2024, an increase of $6.4 million compared to Q3 2024. The increase was primarily attributable to increases of $4.4 million in professional fees including continued investment in our risk management infrastructure, and $2.2 million in FDIC assessments, non-income taxes and regulatory fees mainly due to a credit of $3.0 million in non-income taxes recorded in Q3 2024 for periods prior to 2024.

“In the quarter we incurred professional services expense of approximately $5.7 million as we made investments to enhance our risk management infrastructure. We expect these costs to remain elevated for the next quarter or so before tapering down as we seek to build a best-in-class risk management function which we believe can be a competitive advantage for the bank in the future. During the quarter we advanced our operational excellence initiative to provide the capacity for these and other investments which we are, and will continue to make, in our franchise to position us for success in the both the near-term and over the long-term,” stated Sam Sidhu.

Non-interest expenses totaled $110.4 million in Q4 2024, an increase of $16.6 million compared to Q4 2023. The increase was primarily attributable to increases of $13.2 million in salaries and employee benefits primarily due to higher headcount including the addition of new banking teams in 2024, annual merit increases, incentives and severance, $3.7 million in professional fees including the investment in our risk management infrastructure, and fees paid to a fintech company related to consumer installment loans originated and held for sale. These increases were partially offset by decreases in FDIC assessments primarily due to $3.7 million of FDIC special assessment in Q4 2023 and deposit servicing fees.

Taxes

Income tax expense increased by $9.7 million to a provision of $8.9 million in Q4 2024 from a benefit of $0.7 million in Q3 2024 primarily due to lower investment tax credits in Q4 2024, partially offset by lower pre-tax income. The decrease in investment tax credits was primarily due to $0.6 million of investment tax credits generated from commercial clean vehicles in Q4 2024 as compared to $14.3 million in Q3 2024. The investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases in Q4 2024 and Q3 2024.

Income tax expense decreased by $12.9 million to a provision of $8.9 million in Q4 2024 from a provision of $21.8 million in Q4 2023 primarily due to lower pre-tax income and an increase in income tax credits for 2024, including $14.9 million of investment tax credits generated from commercial clean vehicles in 2024. The investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases in 2024. The effective tax rate was 24.9% for Q4 2024 and 19.1% for the full year 2024.

Outlook

“Looking forward, our strategy remains unchanged. We are focused on continuing the transformation of our deposit franchise, further strengthening our risk management and compliance infrastructure, improving our profitability and growing net interest income, and maintaining strong capital ratios, liquidity, and credit quality. Our deposit transformation momentum is continuing. As a result, we expect deposit growth of 5% to 9% during 2025 with gross inflows expected to be higher as we continue to remix out less strategic deposits especially in the first half of the year. With strong loan pipelines and attractive opportunities from across our various verticals we are targeting to increase the loan portfolio by about 7% to 10% in 2025. Through the combination of these factors we expect our net interest income to increase between 3% to 7% in 2025. Operating efficiency has been and remains a priority for us even while we continue to make significant investments in our future. We see our core efficiency ratio* for the year in the low to mid 50’s as the execution of our strategic priorities take hold and as we move toward completion of some of our outsized investment. We remain committed to maintaining higher levels of capital with CET 1 ratio target of 11.5% in 2025. We expect an effective tax rate to be between 22% to 25%. We remain focused on executing in those areas which differentiate us from our peers and believe that providing truly exceptional service, sophisticated product offerings and a single-point-of-contact service model will deliver strategic, organic growth. We believe we are incredibly well positioned to continue to win new client relationships and that we have the right strategy, the right team, and a client-centric culture to achieve our goals in 2025 and beyond,” concluded Sam Sidhu.


*		Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Webcast
Date:		Friday, January 24, 2025
Time:		9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 4th Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Head of Corporate Communications, Jordan Baucum at [email protected].

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 one of the nation’s top-performing banking companies with over $22 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:

No. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets
No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list
No. 52 on Investor’s Business Daily 100 Best Stocks for 2023

A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.

“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: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and escalating conflict in the Middle East, which could impact economic conditions in the United States; 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 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; higher inflation and its impacts; 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, 2023, 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 2024 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended December 31, 2024 and the preceding four quarters, and full year 2024 and 2023:

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED

	Q4			Q3			Q2			Q1			Q4			Twelve Months Ended December 31,
(Dollars in thousands, except per share data and stock price data)	2024			2024			2024			2024			2023			2024			2023

GAAP Profitability Metrics:
Net income available to common shareholders	$	23,266		$	42,937		$	54,300		$	45,926		$	58,223		$	166,429		$	235,448
Per share amounts:
Earnings per share - basic	$	0.74		$	1.36		$	1.72		$	1.46		$	1.86		$	5.28		$	7.49
Earnings per share - diluted	$	0.71		$	1.31		$	1.66		$	1.40		$	1.79		$	5.09		$	7.32
Book value per common share⁽¹⁾	$	54.20		$	53.07		$	50.81		$	49.29		$	47.73		$	54.20		$	47.73
CUBI stock price⁽¹⁾	$	48.68		$	46.45		$	47.98		$	53.06		$	57.62		$	48.68		$	57.62
CUBI stock price as % of book value⁽¹⁾		90	%		88	%		94	%		108	%		121	%		90	%		121	%
Average shares outstanding - basic		31,346,920			31,567,797			31,649,715			31,473,424			31,385,043			31,509,179			31,435,647
Average shares outstanding - diluted		32,557,621			32,766,488			32,699,149			32,854,534			32,521,787			32,719,134			32,158,788
Shares outstanding⁽¹⁾		31,346,507			31,342,107			31,667,655			31,521,931			31,440,906			31,346,507			31,440,906
Return on average assets (“ROAA”)		0.48	%		0.88	%		1.11	%		0.94	%		1.16	%		0.85	%		1.16	%
Return on average common equity (“ROCE”)		5.50	%		10.44	%		13.85	%		12.08	%		15.93	%		10.36	%		17.33	%
Net interest margin, tax equivalent		3.11	%		3.06	%		3.29	%		3.10	%		3.31	%		3.15	%		3.29	%
Efficiency ratio		56.86	%		62.40	%		51.87	%		54.58	%		49.08	%		56.21	%		46.49	%
Non-GAAP Profitability Metrics⁽²⁾ :
Core earnings	$	44,168		$	43,838		$	48,567		$	46,532		$	61,633		$	183,105		$	248,233
Core pre-tax pre-provision net income	$	84,224		$	64,824		$	89,220		$	83,674		$	101,884		$	321,942		$	416,563
Per share amounts:
Core earnings per share - diluted	$	1.36		$	1.34		$	1.49		$	1.42		$	1.90		$	5.60		$	7.72
Tangible book value per common share⁽¹⁾	$	54.08		$	52.96		$	50.70		$	49.18		$	47.61		$	54.08		$	47.61
CUBI stock price as % of tangible book value⁽¹⁾		90	%		88	%		95	%		108	%		121	%		90	%		121	%
Core ROAA		0.86	%		0.89	%		1.00	%		0.95	%		1.22	%		0.92	%		1.22	%
Core ROCE		10.44	%		10.66	%		12.39	%		12.24	%		16.87	%		11.40	%		18.27	%
Core pre-tax pre-provision ROAA		1.51	%		1.21	%		1.71	%		1.58	%		1.90	%		1.50	%		1.94	%
Core pre-tax pre-provision ROCE		19.04	%		14.84	%		21.79	%		21.01	%		26.82	%		19.10	%		29.58	%
Core efficiency ratio		56.12	%		61.69	%		53.47	%		54.24	%		46.70	%		56.25	%		45.45	%
Asset Quality:
Net charge-offs	$	14,612		$	17,044		$	18,711		$	17,968		$	17,322		$	68,335		$	69,035
Annualized net charge-offs to average total loans and leases		0.41	%		0.50	%		0.56	%		0.55	%		0.51	%		0.50	%		0.48	%
Non-performing loans (“NPLs”) to total loans and leases⁽¹⁾		0.30	%		0.34	%		0.35	%		0.27	%		0.21	%		0.30	%		0.21	%
Reserves to NPLs⁽¹⁾		316.06	%		281.36	%		279.52	%		373.86	%		499.12	%		316.06	%		499.12	%
Non-performing assets (“NPAs”) to total assets		0.25	%		0.22	%		0.23	%		0.17	%		0.13	%		0.25	%		0.13	%
Customers Bank Capital Ratios⁽³⁾ :
Common equity Tier 1 capital to risk-weighted assets		12.9	%		13.64	%		14.17	%		14.16	%		13.77	%		12.9	%		13.77	%
Tier 1 capital to risk-weighted assets		12.9	%		13.64	%		14.17	%		14.16	%		13.77	%		12.9	%		13.77	%
Total capital to risk-weighted assets		14.3	%		15.06	%		15.64	%		15.82	%		15.28	%		14.3	%		15.28	%
Tier 1 capital to average assets (leverage ratio)		8.7	%		9.08	%		9.16	%		8.82	%		8.71	%		8.7	%		8.71	%

(1) Metric is a spot balance for the last day of each quarter presented.
(2) 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 2024 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of December 31, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.

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,
	2024			2024			2024			2024			2023			2024			2023
Interest income:
Loans and leases	$	230,534		$	228,659		$	224,265		$	217,999		$	239,453		$	901,457		$	996,517
Investment securities		39,638			46,265			47,586			46,802			51,074			180,291			200,659
Interest earning deposits		48,147			44,372			45,506			52,817			44,104			190,842			125,923
Loans held for sale		9,447			10,907			13,671			12,048			8,707			46,073			36,221
Other		2,140			1,910			3,010			2,111			2,577			9,171			8,040
Total interest income		329,906			332,113			334,038			331,777			345,915			1,327,834			1,367,360

Interest expense:
Deposits		144,974			155,829			148,784			153,725			150,307			603,312			576,437
FHLB advances		12,595			12,590			13,437			13,485			18,868			52,107			80,008
FRB advances		—			—			—			—			—			—			6,286
Subordinated debt		3,349			3,537			2,734			2,689			2,688			12,309			10,755
Other borrowings		1,167			1,612			1,430			1,493			1,546			5,702			6,425
Total interest expense		162,085			173,568			166,385			171,392			173,409			673,430			679,911
Net interest income		167,821			158,545			167,653			160,385			172,506			654,404			687,449
Provision for credit losses		21,194			17,066			18,121			17,070			13,523			73,451			74,611
Net interest income after provision for credit losses		146,627			141,479			149,532			143,315			158,983			580,953			612,838

Non-interest income:
Commercial lease income		10,604			10,093			10,282			9,683			9,035			40,662			36,179
Loan fees		8,639			8,011			5,233			5,280			5,926			27,163			20,216
Bank-owned life insurance		2,125			2,049			2,007			3,261			2,160			9,442			11,777
Mortgage finance transactional fees		1,010			1,087			1,058			946			927			4,101			4,395
Net gain (loss) on sale of loans and leases		(852	)		(14,548	)		(238	)		10			(91	)		(15,628	)		(1,200	)
Loss on sale of capital call lines of credit		—			—			—			—			—			—			(5,037	)
Net gain (loss) on sale of investment securities		(26,260	)		—			(719	)		(30	)		(145	)		(27,009	)		(574	)
Unrealized gain on equity method investments		389			—			11,041			—			—			11,430			—
Other		3,954			1,865			2,373			2,081			860			10,273			4,809
Total non-interest income		(391	)		8,557			31,037			21,231			18,672			60,434			70,565

Non-interest expense:
Salaries and employee benefits		47,147			47,717			44,947			36,025			33,965			175,836			133,275
Technology, communication and bank operations		13,435			13,588			16,227			21,904			16,887			65,154			65,550
Commercial lease depreciation		8,933			7,811			7,829			7,970			7,357			32,543			29,898
Professional services		13,473			9,048			6,104			6,353			9,820			34,978			35,177
Loan servicing		4,584			3,778			3,516			4,031			3,779			15,909			17,075
Occupancy		3,335			2,987			3,120			2,347			2,320			11,789			10,070
FDIC assessments, non-income taxes and regulatory fees		10,077			7,902			10,236			13,469			13,977			41,684			35,036
Advertising and promotion		1,645			908			1,254			682			850			4,489			3,095
Legal settlement expense		—			—			—			—			—			—			4,096
Other		7,746			10,279			10,219			6,388			4,812			34,632			19,391
Total non-interest expense		110,375			104,018			103,452			99,169			93,767			417,014			352,663
Income before income tax expense (benefit)		35,861			46,018			77,117			65,377			83,888			224,373			330,740
Income tax expense (benefit)		8,946			(725	)		19,032			15,651			21,796			42,904			80,597
Net income		26,915			46,743			58,085			49,726			62,092			181,469			250,143
Preferred stock dividends		3,649			3,806			3,785			3,800			3,869			15,040			14,695
Net income available to common shareholders	$	23,266		$	42,937		$	54,300		$	45,926		$	58,223		$	166,429		$	235,448

Basic earnings per common share	$	0.74		$	1.36		$	1.72		$	1.46		$	1.86		$	5.28		$	7.49
Diluted earnings per common share		0.71			1.31			1.66			1.40			1.79			5.09			7.32

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
ASSETS
Cash and due from banks	$	56,787		$	39,429		$	45,045		$	51,974		$	45,210
Interest earning deposits		3,729,144			3,048,593			3,003,542			3,649,146			3,801,136
Cash and cash equivalents		3,785,931			3,088,022			3,048,587			3,701,120			3,846,346
Investment securities, at fair value		2,019,694			2,412,069			2,511,650			2,604,868			2,405,640
Investment securities held to maturity		991,937			1,064,437			962,799			1,032,037			1,103,170
Loans held for sale		204,794			275,420			375,724			357,640			340,317
Loans and leases receivable		13,127,634			12,527,283			12,254,204			11,936,621			11,963,855
Loans receivable, mortgage finance, at fair value		1,321,128			1,250,413			1,002,711			962,610			897,912
Allowance for credit losses on loans and leases		(136,775	)		(133,158	)		(132,436	)		(133,296	)		(135,311	)
Total loans and leases receivable, net of allowance for credit losses on loans and leases		14,311,987			13,644,538			13,124,479			12,765,935			12,726,456
FHLB, Federal Reserve Bank, and other restricted stock		96,214			95,035			92,276			100,067			109,548
Accrued interest receivable		108,351			115,588			112,788			120,123			114,766
Bank premises and equipment, net		6,668			6,730			7,019			7,253			7,371
Bank-owned life insurance		297,641			295,531			293,108			293,400			292,193
Goodwill and other intangibles		3,629			3,629			3,629			3,629			3,629
Other assets		481,395			455,083			410,916			361,295			366,829
Total assets	$	22,308,241		$	21,456,082		$	20,942,975		$	21,347,367		$	21,316,265

LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand, non-interest bearing deposits	$	5,608,288		$	4,670,809		$	4,474,862		$	4,688,880		$	4,422,494
Interest bearing deposits		13,238,173			13,398,580			13,203,231			13,272,503			13,497,742
Total deposits		18,846,461			18,069,389			17,678,093			17,961,383			17,920,236
FHLB advances		1,128,352			1,117,229			1,018,349			1,195,088			1,203,207
Other borrowings		99,068			99,033			123,970			123,905			123,840
Subordinated debt		182,509			182,439			182,370			182,300			182,230
Accrued interest payable and other liabilities		215,168			186,812			193,328			193,074			248,358
Total liabilities		20,471,558			19,654,902			19,196,110			19,655,750			19,677,871

Preferred stock		137,794			137,794			137,794			137,794			137,794
Common stock		35,758			35,734			35,686			35,540			35,459
Additional paid in capital		575,333			571,609			567,345			567,490			564,538
Retained earnings		1,326,011			1,302,745			1,259,808			1,205,508			1,159,582
Accumulated other comprehensive income (loss), net		(96,560	)		(106,082	)		(131,358	)		(132,305	)		(136,569	)
Treasury stock, at cost		(141,653	)		(140,620	)		(122,410	)		(122,410	)		(122,410	)
Total shareholders’ equity		1,836,683			1,801,180			1,746,865			1,691,617			1,638,394
Total liabilities and shareholders’ equity	$	22,308,241		$	21,456,082		$	20,942,975		$	21,347,367		$	21,316,265

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
	Three Months Ended
	December 31, 2024						September 30, 2024						December 31, 2023
	Average Balance		Interest Income or Expense		Average Yield or Cost (%)		Average Balance		Interest Income or Expense		Average Yield or Cost (%)		Average Balance		Interest Income or Expense		Average Yield or Cost (%)
Assets
Interest earning deposits	$	3,973,262	$	48,147	4.82	%	$	3,224,940	$	44,372	5.47	%	$	3,191,677	$	44,104	5.48	%
Investment securities⁽¹⁾		3,392,850		39,638	4.65	%		3,706,974		46,265	4.97	%		4,007,418		51,074	5.10	%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases⁽²⁾		6,022,062		121,818	8.05	%		5,805,389		124,667	8.54	%		5,574,149		130,838	9.31	%
Other commercial & industrial loans⁽²⁾⁽³⁾		1,529,478		25,514	6.64	%		1,533,057		24,654	6.40	%		1,666,052		28,053	6.68	%
Mortgage finance loans		1,316,884		16,704	5.05	%		1,267,656		17,723	5.56	%		997,353		13,726	5.46	%
Multifamily loans		2,162,825		22,400	4.12	%		2,071,340		21,147	4.06	%		2,131,750		22,347	4.16	%
Non-owner occupied commercial real estate loans		1,491,170		21,770	5.81	%		1,411,533		21,065	5.94	%		1,392,684		20,686	5.89	%
Residential mortgages		535,833		6,301	4.68	%		525,285		6,082	4.61	%		526,422		5,942	4.48	%
Installment loans		1,023,569		25,474	9.90	%		1,029,812		24,228	9.36	%		1,198,043		26,568	8.80	%
Total loans and leases⁽⁴⁾		14,081,821		239,981	6.78	%		13,644,072		239,566	6.99	%		13,486,453		248,160	7.30	%
Other interest-earning assets		122,784		2,140	6.93	%		118,914		1,910	6.39	%		116,756		2,577	8.75	%
Total interest-earning assets		21,570,717		329,906	6.09	%		20,694,900		332,113	6.39	%		20,802,304		345,915	6.61	%
Non-interest-earning assets		609,253						535,504						449,969
Total assets	$	22,179,970					$	21,230,404					$	21,252,273
Liabilities
Interest checking accounts	$	5,597,302	$	57,268	4.07	%	$	5,787,026	$	65,554	4.51	%	$	5,656,212	$	62,041	4.35	%
Money market deposit accounts		3,974,776		42,492	4.25	%		3,676,994		42,128	4.56	%		2,802,309		29,990	4.25	%
Other savings accounts		1,258,018		12,939	4.09	%		1,563,970		18,426	4.69	%		1,218,118		13,849	4.51	%
Certificates of deposit		2,612,246		32,275	4.92	%		2,339,937		29,721	5.05	%		3,625,311		44,427	4.86	%
Total interest-bearing deposits⁽⁵⁾		13,442,342		144,974	4.29	%		13,367,927		155,829	4.64	%		13,301,950		150,307	4.48	%
Borrowings		1,364,138		17,111	4.99	%		1,334,905		17,739	5.29	%		1,816,047		23,102	5.05	%
Total interest-bearing liabilities		14,806,480		162,085	4.36	%		14,702,832		173,568	4.70	%		15,117,997		173,409	4.55	%
Non-interest-bearing deposits⁽⁵⁾		5,346,912						4,557,815						4,270,557
Total deposits and borrowings		20,153,392			3.20	%		19,260,647			3.59	%		19,388,554			3.55	%
Other non-interest-bearing liabilities		204,947						195,722						276,198
Total liabilities		20,358,339						19,456,369						19,664,752
Shareholders’ equity		1,821,631						1,774,035						1,587,521
Total liabilities and shareholders’ equity	$	22,179,970					$	21,230,404					$	21,252,273
Net interest income				167,821						158,545						172,506
Tax-equivalent adjustment				377						392						398
Net interest earnings			$	168,198					$	158,937					$	172,904
Interest spread					2.89	%					2.80	%					3.06	%
Net interest margin					3.10	%					3.05	%					3.30	%
Net interest margin tax equivalent⁽⁶⁾					3.11	%					3.06	%					3.31	%


(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 PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.07%, 3.46% and 3.39% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, presented to approximate interest income as a taxable asset.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
	Twelve Months Ended
	December 31, 2024						December 31, 2023
	Average Balance		Interest Income or Expense		Average Yield or Cost (%)		Average Balance		Interest Income or Expense		Average Yield or Cost (%)
Assets
Interest earning deposits	$	3,597,260	$	190,842	5.31	%	$	2,375,488	$	125,923	5.30	%
Investment securities⁽¹⁾		3,650,320		180,291	4.94	%		4,057,564		200,659	4.95	%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases⁽²⁾		5,637,189		483,052	8.57	%		5,704,220		513,976	9.01	%
Other commercial & industrial loans⁽²⁾⁽³⁾		1,564,167		102,001	6.52	%		1,976,924		133,451	6.75	%
Mortgage finance loans		1,192,827		62,344	5.23	%		1,179,141		67,660	5.74	%
Multifamily loans		2,116,168		86,263	4.08	%		2,165,067		85,204	3.94	%
Non-owner occupied commercial real estate loans		1,412,201		83,484	5.91	%		1,423,929		81,970	5.76	%
Residential mortgages		526,133		24,046	4.57	%		533,213		23,240	4.36	%
Installment loans		1,104,470		106,340	9.63	%		1,437,078		127,237	8.85	%
Total loans and leases⁽⁴⁾		13,553,155		947,530	6.99	%		14,419,572		1,032,738	7.16	%
Other interest-earning assets		114,983		9,171	7.98	%		118,574		8,040	6.78	%
Total interest-earning assets		20,915,718		1,327,834	6.35	%		20,971,198		1,367,360	6.52	%
Non-interest-earning assets		518,472						515,185
Total assets	$	21,434,190					$	21,486,383
Liabilities
Interest checking accounts	$	5,660,890	$	248,400	4.39	%	$	6,048,797	$	241,025	3.98	%
Money market deposit accounts		3,559,362		159,598	4.48	%		2,358,437		93,434	3.96	%
Other savings accounts		1,595,357		73,947	4.64	%		1,029,951		41,556	4.03	%
Certificates of deposit		2,434,622		121,367	4.99	%		4,401,855		200,422	4.55	%
Total interest-bearing deposits⁽⁵⁾		13,250,231		603,312	4.55	%		13,839,040		576,437	4.17	%
Federal funds purchased		—		—	—	%		3,781		188	4.97	%
Borrowings		1,414,583		70,118	4.96	%		2,073,553		103,286	4.98	%
Total interest-bearing liabilities		14,664,814		673,430	4.59	%		15,916,374		679,911	4.27	%
Non-interest-bearing deposits⁽⁵⁾		4,807,647						3,801,053
Total deposits and borrowings		19,472,461			3.46	%		19,717,427			3.45	%
Other non-interest-bearing liabilities		217,172						272,599
Total liabilities		19,689,633						19,990,026
Shareholders’ equity		1,744,557						1,496,357
Total liabilities and shareholders’ equity	$	21,434,190					$	21,486,383
Net interest income				654,404						687,449
Tax-equivalent adjustment				1,556						1,568
Net interest earnings			$	655,960					$	689,017
Interest spread					2.89	%					3.07	%
Net interest margin					3.14	%					3.28	%
Net interest margin tax equivalent⁽⁶⁾					3.15	%					3.29	%


(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 PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.34% and 3.27% for the twelve months ended December 31, 2024 and 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the twelve months ended December 31, 2024 and 2023, presented to approximate interest income as a taxable asset.

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,
	2024		2024		2024		2024		2023
Loans and leases held for investment
Commercial:
Commercial & industrial:
Specialized lending	$	5,842,420	$	5,468,507	$	5,528,745	$	5,104,405	$	5,006,693
Other commercial & industrial⁽¹⁾		1,062,631		1,087,222		1,092,146		1,113,517		1,162,317
Mortgage finance		1,440,847		1,367,617		1,122,812		1,071,146		1,014,742
Multifamily		2,252,246		2,115,978		2,067,332		2,123,675		2,138,622
Commercial real estate owner occupied		1,100,944		981,904		805,779		806,278		797,319
Commercial real estate non-owner occupied		1,359,130		1,326,591		1,202,606		1,182,084		1,177,650
Construction		147,209		174,509		163,409		185,601		166,393
Total commercial loans and leases		13,205,427		12,522,328		11,982,829		11,586,706		11,463,736
Consumer:
Residential		496,559		500,786		481,503		482,537		484,435
Manufactured housing		33,123		34,481		35,901		37,382		38,670
Installment:
Personal		463,854		453,739		474,481		492,892		555,533
Other		249,799		266,362		282,201		299,714		319,393
Total installment loans		713,653		720,101		756,682		792,606		874,926
Total consumer loans		1,243,335		1,255,368		1,274,086		1,312,525		1,398,031
Total loans and leases held for investment	$	14,448,762	$	13,777,696	$	13,256,915	$	12,899,231	$	12,861,767
Loans held for sale
Residential	$	1,836	$	2,523	$	2,684	$	870	$	1,215
Installment:
Personal		40,903		55,799		125,598		137,755		151,040
Other		162,055		217,098		247,442		219,015		188,062
Total installment loans		202,958		272,897		373,040		356,770		339,102
Total loans held for sale	$	204,794	$	275,420	$	375,724	$	357,640	$	340,317
Total loans and leases portfolio	$	14,653,556	$	14,053,116	$	13,632,639	$	13,256,871	$	13,202,084

(1)

Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
	December 31,		September 30,		June 30,		March 31,		December 31,
	2024		2024		2024		2024		2023

Demand, non-interest bearing	$	5,608,288	$	4,670,809	$	4,474,862	$	4,688,880	$	4,422,494
Demand, interest bearing		5,553,698		5,606,500		5,894,056		5,661,775		5,580,527
Total demand deposits		11,161,986		10,277,309		10,368,918		10,350,655		10,003,021
Savings		1,131,819		1,399,968		1,573,661		2,080,374		1,402,941
Money market		3,844,451		3,961,028		3,539,815		3,347,843		3,226,395
Time deposits		2,708,205		2,431,084		2,195,699		2,182,511		3,287,879
Total deposits	$	18,846,461	$	18,069,389	$	17,678,093	$	17,961,383	$	17,920,236

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
	As of December 31, 2024						As of September 30, 2024						As of December 31, 2023
Loan type	Total loans		Allowance for credit losses		Total reserves to total loans		Total loans		Allowance for credit losses		Total reserves to total loans		Total loans		Allowance for credit losses		Total reserves to total loans
Commercial:
Commercial & industrial, including specialized lending⁽¹⁾	$	7,024,770	$	29,379	0.42	%	$	6,672,933	$	25,191	0.38	%	$	6,285,840	$	23,503	0.37	%
Multifamily		2,252,246		18,511	0.82	%		2,115,978		18,090	0.85	%		2,138,622		16,343	0.76	%
Commercial real estate owner occupied		1,100,944		10,755	0.98	%		981,904		10,913	1.11	%		797,319		9,882	1.24	%
Commercial real estate non-owner occupied		1,359,130		17,405	1.28	%		1,326,591		17,303	1.30	%		1,177,650		16,859	1.43	%
Construction		147,209		1,250	0.85	%		174,509		1,606	0.92	%		166,393		1,482	0.89	%
Total commercial loans and leases receivable		11,884,299		77,300	0.65	%		11,271,915		73,103	0.65	%		10,565,824		68,069	0.64	%

Consumer:
Residential		496,559		5,968	1.20	%		500,786		5,838	1.17	%		484,435		6,586	1.36	%
Manufactured housing		33,123		3,829	11.56	%		34,481		4,080	11.83	%		38,670		4,239	10.96	%
Installment		713,653		49,678	6.96	%		720,101		50,137	6.96	%		874,926		56,417	6.45	%
Total consumer loans receivable		1,243,335		59,475	4.78	%		1,255,368		60,055	4.78	%		1,398,031		67,242	4.81	%

Loans and leases receivable held for investment		13,127,634		136,775	1.04	%		12,527,283		133,158	1.06	%		11,963,855		135,311	1.13	%

Loans receivable, mortgage finance, at fair value		1,321,128		—	—	%		1,250,413		—	—	%		897,912		—	—	%
Loans held for sale		204,794		—	—	%		275,420		—	—	%		340,317		—	—	%

Total loans and leases portfolio	$	14,653,556	$	136,775	0.93	%	$	14,053,116	$	133,158	0.95	%	$	13,202,084	$	135,311	1.02	%

(1)

Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
	As of December 31, 2024						As of September 30, 2024						As of December 31, 2023
Loan type	Non accrual /NPLs		Total NPLs to total loans		Total reserves to total NPLs		Non accrual /NPLs		Total NPLs to total loans		Total reserves to total NPLs		Non accrual /NPLs		Total NPLs to total loans		Total reserves to total NPLs
Commercial:
Commercial & industrial, including specialized lending⁽¹⁾	$	4,041	0.06	%	727.02	%	$	4,615	0.07	%	545.85	%	$	4,436	0.07	%	529.82	%
Multifamily		11,834	0.53	%	156.42	%		11,834	0.56	%	152.86	%		—	—	%	—	%
Commercial real estate owner occupied		8,090	0.73	%	132.94	%		8,613	0.88	%	126.70	%		5,869	0.74	%	168.38	%
Commercial real estate non-owner occupied		354	0.03	%	4916.67	%		763	0.06	%	2267.76	%		—	—	%	—	%
Construction		—	—	%	—	%		—	—	%	—	%		—	—	%	—	%
Total commercial loans and leases receivable		24,319	0.20	%	317.86	%		25,825	0.23	%	283.07	%		10,305	0.10	%	660.54	%

Consumer:
Residential		8,714	1.75	%	68.49	%		7,997	1.60	%	73.00	%		6,802	1.40	%	96.82	%
Manufactured housing		1,852	5.59	%	206.75	%		1,869	5.42	%	218.30	%		2,331	6.03	%	181.85	%
Installment		5,613	0.79	%	885.05	%		6,328	0.88	%	792.30	%		7,211	0.82	%	782.37	%
Total consumer loans receivable		16,179	1.30	%	367.61	%		16,194	1.29	%	370.85	%		16,344	1.17	%	411.42	%

Loans and leases receivable		40,498	0.31	%	337.73	%		42,019	0.34	%	316.90	%		26,649	0.22	%	507.75	%

Loans receivable, mortgage finance, at fair value		—	—	%	—	%		—	—	%	—	%		—	—	%	—	%
Loans held for sale		2,777	1.36	%	—	%		5,307	1.93	%	—	%		461	0.14	%	—	%

Total loans and leases portfolio	$	43,275	0.30	%	316.06	%	$	47,326	0.34	%	281.36	%	$	27,110	0.21	%	499.12	%

(1)

Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
	Q4			Q3			Q2			Q1		Q4			Twelve Months Ended December 31,
	2024			2024			2024			2024		2023			2024			2023
Loan type
Commercial & industrial, including specialized lending	$	3,653		$	5,056		$	5,665		$	3,672	$	5,282		$	18,046		$	8,443
Multifamily		—			2,167			1,433			473		127			4,073			3,574
Commercial real estate owner occupied		339			4			—			22		—			365			5
Commercial real estate non-owner occupied		145			—			—			—		(288	)		145			4,212
Construction		—			(3	)		(7	)		—		—			(10	)		(116	)
Residential		(18	)		(21	)		(20	)		18		(1	)		(41	)		34
Installment		10,493			9,841			11,640			13,783		12,202			45,757			52,883
Total net charge-offs (recoveries) from loans held for investment	$	14,612		$	17,044		$	18,711		$	17,968	$	17,322		$	68,335		$	69,035

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

We believe 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 our 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.

																												Twelve Months Ended December 31,
*Core Earnings and Adjusted Core Earnings - Customers Bancorp*	Q4 2024						Q3 2024						Q2 2024						Q1 2024				Q4 2023					2024						2023
(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	$	23,266		$	0.71		$	42,937		$	1.31		$	54,300		$	1.66		$	45,926	$	1.40	$	58,223		$	1.79	$	166,429		$	5.09		$	235,448	$	7.32
Reconciling items (after tax):
Severance expense		1,198			0.04			540			0.02			1,928			0.06			—		—		473			0.01		3,666			0.11			1,251		0.04
Impairments on fixed assets and leases		—			—			—			—			—			—			—		—		—			—		—			—			98		0.00
Loss on sale of capital call lines of credit		—			—			—			—			—			—			—		—		—			—		—			—			3,914		0.12
Legal settlement		157			0.00			—			—			—			—			—		—		—			—		157			0.00			—		—
(Gains) losses on investment securities		20,035			0.62			(322	)		(0.01	)		561			0.02			57		0.00		(85	)		0.00		20,331			0.62			407		0.01
Derivative credit valuation adjustment		(306	)		(0.01	)		185			0.01			(44	)		0.00			169		0.01		267			0.01		4			0.00			219		0.01
Tax on surrender of bank-owned life insurance policies		—			—			—			—			—			—			—		—		—			—		—			—			4,141		0.13
FDIC special assessment		—			—			—			—			138			0.00			380		0.01		2,755			0.08		518			0.02			2,755		0.09
Unrealized (gain) on equity method investments		(292	)		(0.01	)		—			—			(8,316	)		(0.25	)		—		—		—			—		(8,608	)		(0.26	)		—		—
Unrealized losses on loans held for sale		110			0.00			498			0.02			—			—			—		—		—			—		608			0.02			—		—
Core earnings	$	44,168		$	1.36		$	43,838		$	1.34		$	48,567		$	1.49		$	46,532	$	1.42	$	61,633		$	1.90	$	183,105		$	5.60		$	248,233	$	7.72

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024		—			—			—			—			—			—			5,405		0.16		—			—		5,405			0.17			—		—
FDIC premiums prior to 2024		—			—			—			—			—			—			3,200		0.10		—			—		3,200			0.10			—		—
Non-income taxes prior to 2024		—			—			(2,457	)		(0.07	)		—			—			—		—		—			—		(2,457	)		(0.08	)		—		—
Total one-time non-interest expense items		—			—			(2,457	)		(0.07	)		—			—			8,605		0.26		—			—		6,148			0.19			—		—
Adjusted core earnings (adjusted for one-time non-interest expense items)	$	44,168		$	1.36		$	41,381		$	1.26		$	48,567		$	1.49		$	55,137	$	1.68	$	61,633		$	1.90	$	189,253		$	5.78		$	248,233	$	7.72

*Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp*																Twelve Months Ended December 31,
(Dollars in thousands, except per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			2024			2023
GAAP net income	$	26,915		$	46,743		$	58,085		$	49,726		$	62,092		$	181,469		$	250,143
Reconciling items (after tax):
Severance expense		1,198			540			1,928			—			473			3,666			1,251
Impairments on fixed assets and leases		—			—			—			—			—			—			98
Loss on sale of capital call lines of credit		—			—			—			—			—			—			3,914
Legal settlement		157			—			—			—			—			157			—
(Gains) losses on investment securities		20,035			(322	)		561			57			(85	)		20,331			407
Derivative credit valuation adjustment		(306	)		185			(44	)		169			267			4			219
Tax on surrender of bank-owned life insurance policies		—			—			—			—			—			—			4,141
FDIC special assessment		—			—			138			380			2,755			518			2,755
Unrealized (gain) on equity method investments		(292	)		—			(8,316	)		—			—			(8,608	)		—
Unrealized losses on loans held for sale		110			498			—			—			—			608			—
Core net income	$	47,817		$	47,644		$	52,352		$	50,332		$	65,502		$	198,145		$	262,928

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024		—			—			—			5,405			—			5,405			—
FDIC premiums prior to 2024		—			—			—			3,200			—			3,200			—
Non-income taxes prior to 2024		—			(2,457	)		—			—			—			(2,457	)		—
Total one-time non-interest expense items		—			(2,457	)		—			8,605			—			6,148			—
Adjusted core net income (adjusted for one-time non-interest expense items)	$	47,817		$	45,187		$	52,352		$	58,937		$	65,502		$	204,293		$	262,928

Average total assets	$	22,179,970		$	21,230,404		$	20,985,203		$	21,335,229		$	21,252,273		$	21,434,190		$	21,486,383

Core return on average assets		0.86	%		0.89	%		1.00	%		0.95	%		1.22	%		0.92	%		1.22	%

Adjusted core return on average assets (adjusted for one-time non-interest expense items)		0.86	%		0.85	%		1.00	%		1.11	%		1.22	%		0.95	%		1.22	%

*Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp*																Twelve Months Ended December 31,
(Dollars in thousands, except per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			2024			2023
GAAP net income	$	26,915		$	46,743		$	58,085		$	49,726		$	62,092		$	181,469		$	250,143
Reconciling items:
Income tax expense (benefit)		8,946			(725	)		19,032			15,651			21,796			42,904			80,597
Provision (benefit) for credit losses		21,194			17,066			18,121			17,070			13,523			73,451			74,611
Provision (benefit) for credit losses on unfunded commitments		(664	)		642			1,594			430			(136	)		2,002			(112	)
Severance expense		1,595			659			2,560			—			639			4,814			1,630
Impairments on fixed assets and leases		—			—			—			—			—			—			124
Loss on sale of capital call lines of credit		—			—			—			—			—			—			5,037
Legal settlement		209			—			—			—			—			209			—
(Gains) losses on investment securities		26,678			(394	)		744			75			(114	)		27,103			512
Derivative credit valuation adjustment		(407	)		226			(58	)		222			361			(17	)		298
FDIC special assessment		—			—			183			500			3,723			683			3,723
Unrealized (gain) on equity method investments		(389	)		—			(11,041	)		—			—			(11,430	)		—
Unrealized losses on loans held for sale		147			607			—			—			—			754			—
Core pre-tax pre-provision net income	$	84,224		$	64,824		$	89,220		$	83,674		$	101,884		$	321,942		$	416,563

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024		—			—			—			7,106			—			7,106			—
FDIC premiums prior to 2024		—			—			—			4,208			—			4,208			—
Non-income taxes prior to 2024		—			(2,997	)		—			—			—			(2,997	)		—
Total one-time non-interest expense items		—			(2,997	)		—			11,314			—			8,317			—
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)	$	84,224		$	61,827		$	89,220		$	94,988		$	101,884		$	330,259		$	416,563

Average total assets	$	22,179,970		$	21,230,404		$	20,985,203		$	21,335,229		$	21,252,273		$	21,434,190		$	21,486,383

Core pre-tax pre-provision ROAA		1.51	%		1.21	%		1.71	%		1.58	%		1.90	%		1.50	%		1.94	%

Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)		1.51	%		1.16	%		1.71	%		1.79	%		1.90	%		1.54	%		1.94	%

*Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp*																Twelve Months Ended December 31,
(Dollars in thousands, except per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			2024			2023
GAAP net income to common shareholders	$	23,266		$	42,937		$	54,300		$	45,926		$	58,223		$	166,429		$	235,448
Reconciling items (after tax):
Severance expense		1,198			540			1,928			—			473			3,666			1,251
Impairments on fixed assets and leases		—			—			—			—			—			—			98
Loss on sale of capital call lines of credit		—			—			—			—			—			—			3,914
Legal settlement		157			—			—			—			—			157			—
(Gains) losses on investment securities		20,035			(322	)		561			57			(85	)		20,331			407
Derivative credit valuation adjustment		(306	)		185			(44	)		169			267			4			219
Tax on surrender of bank-owned life insurance policies		—			—			—			—			—			—			4,141
FDIC special assessment		—			—			138			380			2,755			518			2,755
Unrealized (gain) on equity method investments		(292	)		—			(8,316	)		—			—			(8,608	)		—
Unrealized losses on loans held for sale		110			498			—			—			—			608			—
Core earnings	$	44,168		$	43,838		$	48,567		$	46,532		$	61,633		$	183,105		$	248,233

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024		—			—			—			5,405			—			5,405			—
FDIC premiums prior to 2024		—			—			—			3,200			—			3,200			—
Non-income taxes prior to 2024		—			(2,457	)		—			—			—			(2,457	)		—
Total one-time non-interest expense items		—			(2,457	)		—			8,605			—			6,148			—
Adjusted core earnings (adjusted for one-time non-interest expense items)	$	44,168		$	41,381		$	48,567		$	55,137		$	61,633		$	189,253		$	248,233

Average total common shareholders’ equity	$	1,683,838		$	1,636,242		$	1,576,595		$	1,529,211		$	1,449,728		$	1,606,764		$	1,358,564

Core return on average common equity		10.44	%		10.66	%		12.39	%		12.24	%		16.87	%		11.40	%		18.27	%

Adjusted core return on average common equity (adjusted for one-time non-interest expense items)		10.44	%		10.06	%		12.39	%		14.50	%		16.87	%		11.78	%		18.27	%

*Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp*																Twelve Months Ended December 31,
(Dollars in thousands, except per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			2024			2023
GAAP net income to common shareholders	$	23,266		$	42,937		$	54,300		$	45,926		$	58,223		$	166,429		$	235,448
Reconciling items:
Income tax expense (benefit)		8,946			(725	)		19,032			15,651			21,796			42,904			80,597
Provision (benefit) for credit losses		21,194			17,066			18,121			17,070			13,523			73,451			74,611
Provision (benefit) for credit losses on unfunded commitments		(664	)		642			1,594			430			(136	)		2,002			(112	)
Severance expense		1,595			659			2,560			—			639			4,814			1,630
Impairments on fixed assets and leases		—			—			—			—			—			—			124
Loss on sale of capital call lines of credit		—			—			—			—			—			—			5,037
Legal settlement		209			—			—			—			—			209			—
(Gains) losses on investment securities		26,678			(394	)		744			75			(114	)		27,103			512
Derivative credit valuation adjustment		(407	)		226			(58	)		222			361			(17	)		298
FDIC special assessment		—			—			183			500			3,723			683			3,723
Unrealized (gain) on equity method investments		(389	)		—			(11,041	)		—			—			(11,430	)		—
Unrealized losses on loans held for sale		147			607			—			—			—			754			—
Core pre-tax pre-provision net income available to common shareholders	$	80,575		$	61,018		$	85,435		$	79,874		$	98,015		$	306,902		$	401,868

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024		—			—			—			7,106			—			7,106			—
FDIC premiums prior to 2024		—			—			—			4,208			—			4,208			—
Non-income taxes prior to 2024		—			(2,997	)		—			—			—			(2,997	)		—
Total one-time non-interest expense items		—			(2,997	)		—			11,314			—			8,317			—
Adjusted core pre-tax pre-provision net income available to common shareholders	$	80,575		$	58,021		$	85,435		$	91,188		$	98,015		$	315,219		$	401,868

Average total common shareholders’ equity	$	1,683,838		$	1,636,242		$	1,576,595		$	1,529,211		$	1,449,728		$	1,606,764		$	1,358,564

Core pre-tax pre-provision ROCE		19.04	%		14.84	%		21.79	%		21.01	%		26.82	%		19.10	%		29.58	%

Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)		19.04	%		14.11	%		21.79	%		23.98	%		26.82	%		19.62	%		29.58	%

*Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp*																Twelve Months Ended December 31,
(Dollars in thousands, except per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			2024			2023
GAAP net interest income	$	167,821		$	158,545		$	167,653		$	160,385		$	172,506		$	654,404		$	687,449

GAAP non-interest income	$	(391	)	$	8,557		$	31,037		$	21,231		$	18,672		$	60,434		$	70,565
Loss on sale of capital call lines of credit		—			—			—			—			—			—			5,037
(Gains) losses on investment securities		26,678			(394	)		744			75			(114	)		27,103			512
Derivative credit valuation adjustment		(407	)		226			(58	)		222			361			(17	)		298
Unrealized (gain) on equity method investments		(389	)		—			(11,041	)		—			—			(11,430	)		—
Unrealized losses on loans held for sale		147			607			—			—			—			754			—
Core non-interest income		25,638			8,996			20,682			21,528			18,919			76,844			76,412
Core revenue	$	193,459		$	167,541		$	188,335		$	181,913		$	191,425		$	731,248		$	763,861


GAAP non-interest expense	$	110,375		$	104,018		$	103,452		$	99,169		$	93,767		$	417,014		$	352,663
Severance expense		(1,595	)		(659	)		(2,560	)		—			(639	)		(4,814	)		(1,630	)
Impairments on fixed assets and leases		—			—			—			—			—			—			(124	)
FDIC special assessment		—			—			(183	)		(500	)		(3,723	)		(683	)		(3,723	)
Legal settlement		(209	)		—			—			—			—			(209	)		—
Core non-interest expense	$	108,571		$	103,359		$	100,709		$	98,669		$	89,405		$	411,308		$	347,186

One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024		—			—			—			(7,106	)		—			(7,106	)		—
FDIC premiums prior to 2024		—			—			—			(4,208	)		—			(4,208	)		—
Non-income taxes prior to 2024		—			2,997			—			—			—			2,997			—
Total one-time non-interest expense items		—			2,997			—			(11,314	)		—			(8,317	)		—
Adjusted core non-interest expense	$	108,571		$	106,356		$	100,709		$	87,355		$	89,405		$	402,991		$	347,186

Core efficiency ratio⁽¹⁾		56.12	%		61.69	%		53.47	%		54.24	%		46.70	%		56.25	%		45.45	%

Adjusted core efficiency ratio (adjusted for one-time non-interest expense items)⁽²⁾		56.12	%		63.48	%		53.47	%		48.02	%		46.70	%		55.11	%		45.45	%

(1)		Core efficiency ratio calculated as core non-interest expense divided by core revenue.
(2)		Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue.

*Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- Customers Bancorp*																Twelve Months Ended December 31,
(Dollars in thousands, except per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023			2024			2023
GAAP non-interest expense	$	110,375		$	104,018		$	103,452		$	99,169		$	93,767		$	417,014		$	352,663
Severance expense		(1,595	)		(659	)		(2,560	)		—			(639	)		(4,814	)		(1,630	)
Impairments on fixed assets and leases		—			—			—			—			—			—			(124	)
FDIC special assessment		—			—			(183	)		(500	)		(3,723	)		(683	)		(3,723	)
Legal settlement		(209	)		—			—			—			—			(209	)		—
Core non-interest expense	$	108,571		$	103,359		$	100,709		$	98,669		$	89,405		$	411,308		$	347,186

One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024		—			—			—			(7,106	)		—			(7,106	)		—
FDIC premiums prior to 2024		—			—			—			(4,208	)		—			(4,208	)		—
Non-income taxes prior to 2024		—			2,997			—			—			—			2,997			—
Total one-time non-interest expense items		—			2,997			—			(11,314	)		—			(8,317	)		—
Adjusted core non-interest expense	$	108,571		$	106,356		$	100,709		$	87,355		$	89,405		$	402,991		$	347,186

Average total assets	$	22,179,970		$	21,230,404		$	20,985,203		$	21,335,229		$	21,252,273		$	21,434,190		$	21,486,383

Core non-interest expense to average total assets		1.95	%		1.94	%		1.93	%		1.86	%		1.67	%		1.92	%		1.62	%

Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items)		1.95	%		1.99	%		1.93	%		1.65	%		1.67	%		1.88	%		1.62	%

*Tangible Common Equity to Tangible Assets - Customers Bancorp*

(Dollars in thousands, except per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
GAAP total shareholders’ equity	$	1,836,683		$	1,801,180		$	1,746,865		$	1,691,617		$	1,638,394
Reconciling items:
Preferred stock		(137,794	)		(137,794	)		(137,794	)		(137,794	)		(137,794	)
Goodwill and other intangibles		(3,629	)		(3,629	)		(3,629	)		(3,629	)		(3,629	)
Tangible common equity	$	1,695,260		$	1,659,757		$	1,605,442		$	1,550,194		$	1,496,971

GAAP total assets	$	22,308,241		$	21,456,082		$	20,942,975		$	21,347,367		$	21,316,265
Reconciling items:
Goodwill and other intangibles		(3,629	)		(3,629	)		(3,629	)		(3,629	)		(3,629	)
Tangible assets	$	22,304,612		$	21,452,453		$	20,939,346		$	21,343,738		$	21,312,636

Tangible common equity to tangible assets		7.6	%		7.7	%		7.7	%		7.3	%		7.0	%

*Tangible Book Value per Common Share - Customers Bancorp*

(Dollars in thousands, except share and per share data)	Q4 2024			Q3 2024			Q2 2024			Q1 2024			Q4 2023
GAAP total shareholders’ equity	$	1,836,683		$	1,801,180		$	1,746,865		$	1,691,617		$	1,638,394
Reconciling Items:
Preferred stock		(137,794	)		(137,794	)		(137,794	)		(137,794	)		(137,794	)
Goodwill and other intangibles		(3,629	)		(3,629	)		(3,629	)		(3,629	)		(3,629	)
Tangible common equity	$	1,695,260		$	1,659,757		$	1,605,442		$	1,550,194		$	1,496,971

Common shares outstanding		31,346,507			31,342,107			31,667,655			31,521,931			31,440,906

Tangible book value per common share	$	54.08		$	52.96		$	50.70		$	49.18		$	47.61

Jordan Baucum, Head of Corporate Communications 951-608-8314

Source: Customers Bancorp, Inc.