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Customers Bancorp Reports Strong Second Quarter 2020 Results GAAP Net Income of $19.1 million, or $0.61 Per Diluted Share, up 237% over Q2 2019


  • Adjusted Pre-tax Pre-provision Earnings of $50.8 million, up 94% over Q2 2019
  • Total Assets Grew by $5.9 billion to $17.9 billion, up 49% in Q2 2020
  • Originated $5.2 billion in PPP Loans
  • Ranking #6 in Nation With Approximately 100,000 loans to Small Businesses and Non-Profits

  • Q2 2020 GAAP earnings of $19.1 million, or $0.61 per diluted share, and core earnings of $19.2 million, or $0.61 per diluted share (non-GAAP measures), up 51% over Q2 2019.
  • Adjusted pre-tax pre-provision net income for Q2 2020 was $50.8 million, an increase of 94% over Q2 2019 pre-tax pre-provision net income of $26.1 million (non-GAAP measures).
  • Q2 2020 results include a provision for credit losses on loans and leases of $20.9 million. At June 30, 2020, the coverage of credit loss reserves for loans and leases held for investment, excluding Paycheck Protection Program (“PPP”) loans (non-GAAP measure), was 2.2%, up from 2.0% at March 31, 2020 and 0.8% at December 31, 2019.
  • Total revenues up 11% over Q1 2020 and 49% over Q2 2019.
  • Net interest income increased by $10.7 million, or 13.1%, over Q1 2020 and $27.3 million, or 42.2%, over Q2 2019. Net interest income, excluding the impact of PPP loan originations ( non- GAAP measure) increased by $1.4 million, or 1.7%, over Q1 2020 and $18.0 million, or 27.8%, over Q2 2019.
  • Q2 2020 net interest margin excluding the impact of PPP loan originations (non-GAAP measure) was 2.97%, a 2 basis point decline from Q1 2020 and a 33 basis point increase over Q2 2019. Q2 2020 net interest margin (a non-GAAP measure) declined 34 basis points from Q1 2020 to 2.65%, mostly due to the origination of $4.8 billion of PPP loans in Q2 2020 at an average yield of 1.71%.
  • Total commercial deferments declined to less than $700 million, or down to about 8.0%, as of July 24, 2020, from a peak of $1.2 billion. Total consumer deferments declined to $60 million, or 3.7%, as of July 24, 2020, from a peak of $108 million.
  • Total assets were $17.9 billion at June 30, 2020, compared to $11.2 billion at June 30, 2019 and $12.0 billion at March 31, 2020. Average assets were $14.7 billion for Q2 2020, compared to $10.4 billion for Q2 2019 and $11.6 billion for Q1 2020.
  • Total loans and leases increased $5.6 billion, or 57%, year-over-year driven by PPP loans of $4.8 billion and strong growth in mortgage warehouse loans of $0.8 billion and commercial and industrial loans and leases of $0.5 billion. Total loans and leases, excluding PPP loans (a non- GAAP measure), increased by $808 million, or 8%, year-over-year.
  • Total deposits increased $2.8 billion, or 34%, year-over-year, which included a $2.2 billion, or 97%, increase in demand deposits.
  • Asset quality remains strong. Non-performing assets were only 0.48% of total assets at June 30, 2020 and reserves equaled 185% of non-performing loans. Net charge-offs were $10.3 million, or 32 basis points of average total loans and leases on an annualized basis.
  • Helped approximately 100,000 small businesses and non-profits by originating about $5.2 billion in PPP loans directly or through fintech partnerships, which is expected to add about $100 million in origination revenues over the life of the PPP loans.