EX-99.1 2 q424pressrelease.htm EX-99.1 Document

Exhibit 99.1
customersbancorp_logoxprima.jpg
Customers Bancorp, Inc. (NYSE:CUBI)
701 Reading Avenue
West Reading, PA 19611

Contact:
Jordan Baucum, Head of Corporate Communications 951-608-8314
Customers Bancorp Reports Results for Fourth Quarter and Full Year 2024
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*1 were $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%2 at 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.
1

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%1 at 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 median2 of 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.
2

CEO Commentary
West Reading, Pa, January 23, 2025 - “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.
3

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)
December 31, 2024September 30, 2024
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 equivalent3.11 %3.06 %0.05 
Yield on loans (Loan yield)
6.78 %6.99 %(0.21)
Cost of deposits3.07 %3.46 %(0.39)
Efficiency ratio56.86 %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 Assets7.6 %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.
4

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)Twelve Months EndedIncrease (Decrease)
December 31, 2024December 31, 2023December 31, 2024December 31, 2023
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 equivalent3.11 %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 deposits3.07 %3.39 %(0.32)3.34 %3.27 %0.07 
Efficiency ratio56.86 %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.

5

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)
December 31, 2024December 31, 2023
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 Assets7.6 %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.
6

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 TotalSeptember 30, 2024% of TotalDecember 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 finance1,440,847 10.0 1,367,617 9.9 1,014,742 7.9 
Multifamily2,252,246 15.6 2,115,978 15.4 2,138,622 16.6 
Commercial real estate owner occupied1,100,944 7.6 981,904 7.1 797,319 6.2 
Commercial real estate non-owner occupied1,359,130 9.4 1,326,591 9.6 1,177,650 9.2 
Construction147,209 1.0 174,509 1.3 166,393 1.2 
Total commercial loans and leases13,205,427 91.4 12,522,328 90.9 11,463,736 89.1 
Consumer:
Residential496,559 3.4 500,786 3.6 484,435 3.8 
Manufactured housing33,123 0.3 34,481 0.3 38,670 0.3 
Installment:
Personal463,854 3.2 453,739 3.3 555,533 4.3 
Other249,799 1.7 266,362 1.9 319,393 2.5 
Total installment loans713,653 4.9 720,101 5.2 874,926 6.8 
Total consumer loans1,243,335 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:
Personal40,903 20.0 55,799 20.3 151,040 44.4 
Other162,055 79.1 217,098 78.8 188,062 55.3 
Total installment loans202,958 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.
7

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 EndedIncrease (Decrease)At or Three Months EndedIncrease (Decrease)
(Dollars in thousands)December 31, 2024September 30, 2024December 31, 2024December 31, 2023
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 leases0.41 %0.50 %0.41 %0.51 %
Coverage of credit loss reserves for loans and leases held for investment1.04 %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 EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)December 31, 2024September 30, 2024December 31, 2024December 31, 2023
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 securities2,965 (700)3,665 2,965 103 2,862 
Provision for credit losses21,194 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.
8

Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands)December 31, 2024September 30, 2024Increase (Decrease)December 31, 2024December 31, 2023Increase (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 assets0.25 %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 leases11,861,548 11,241,447 620,101 11,861,548 10,491,089 1,370,459 
Consumer loans
Performing1,227,359 1,240,581 (13,222)1,227,359 1,379,603 (152,244)
Non-performing15,976 14,787 1,189 15,976 18,428 (2,452)
Total consumer loans1,243,335 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, 2024September 30, 2024December 31, 2023
Debt securities, available for sale$1,985,438 $2,377,733 $2,376,860 
Equity securities34,256 34,336 28,780 
Investment securities, at fair value2,019,694 2,412,069 2,405,640 
Debt securities, held to maturity991,937 1,064,437 1,103,170 
Total investment securities portfolio$3,011,631 $3,476,506 $3,508,810 
9

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 TotalSeptember 30, 2024% of TotalDecember 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 bearing5,553,698 29.5 5,606,500 31.0 5,580,527 31.1 
Total demand deposits11,161,986 59.2 10,277,309 56.9 10,003,021 55.8 
Savings1,131,819 6.0 1,399,968 7.7 1,402,941 7.8 
Money market3,844,451 20.4 3,961,028 21.9 3,226,395 18.0 
Time deposits2,708,205 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.
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
(Dollars in thousands)December 31, 2024September 30, 2024December 31, 2023
FHLB advances$1,128,352 $1,117,229 $1,203,207 
Senior notes99,068 99,033 123,840 
Subordinated debt182,509 182,439 182,230 
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.
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.
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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, 2024September 30, 2024December 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 Assets7.6 %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.
11

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,” stated Sam Sidhu.
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 EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)December 31, 2024September 30, 2024December 31, 2024December 31, 2023
Commercial lease income$10,604 $10,093 $511 $10,604 $9,035 $1,569 
Loan fees8,639 8,011 628 8,639 5,926 2,713 
Bank-owned life insurance 2,125 2,049 76 2,125 2,160 (35)
Mortgage finance transactional fees1,010 1,087 (77)1,010 927 83 
Net gain (loss) on sale of loans and leases(852)(14,548)13,696 (852)(91)(761)
Net gain (loss) on sale of investment securities(26,260)— (26,260)(26,260)(145)(26,115)
Unrealized gain on equity method investments389 — 389 389 — 389 
Other3,954 1,865 2,089 3,954 860 3,094 
Total non-interest income$(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.
12

Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
Three Months EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)December 31, 2024September 30, 2024December 31, 2024December 31, 2023
Salaries and employee benefits$47,147 $47,717 $(570)$47,147 $33,965 $13,182 
Technology, communication and bank operations13,435 13,588 (153)13,435 16,887 (3,452)
Commercial lease depreciation8,933 7,811 1,122 8,933 7,357 1,576 
Professional services13,473 9,048 4,425 13,473 9,820 3,653 
Loan servicing4,584 3,778 806 4,584 3,779 805 
Occupancy3,335 2,987 348 3,335 2,320 1,015 
FDIC assessments, non-income taxes and regulatory fees10,077 7,902 2,175 10,077 13,977 (3,900)
Advertising and promotion1,645 908 737 1,645 850 795 
Other7,746 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.
13

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.
14

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 jbaucum@customersbank.com.
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
15

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.
16

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
(Dollars in thousands, except per share data and stock price data)
Q4Q3Q2Q1Q4Twelve Months Ended December 31,
2024202420242024202320242023
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 - basic31,346,920 31,567,797 31,649,715 31,473,424 31,385,043 31,509,179 31,435,647 
Average shares outstanding - diluted32,557,621 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 ratio56.86 %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 ROAA0.86 %0.89 %1.00 %0.95 %1.22 %0.92 %1.22 %
Core ROCE10.44 %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 ratio56.12 %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 leases0.41 %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 assets12.9 %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.

17

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)Twelve Months Ended
Q4Q3Q2Q1Q4December 31,
2024202420242024202320242023
Interest income:
Loans and leases$230,534 $228,659 $224,265 $217,999 $239,453 $901,457 $996,517 
Investment securities39,638 46,265 47,586 46,802 51,074 180,291 200,659 
Interest earning deposits48,147 44,372 45,506 52,817 44,104 190,842 125,923 
Loans held for sale9,447 10,907 13,671 12,048 8,707 46,073 36,221 
Other2,140 1,910 3,010 2,111 2,577 9,171 8,040 
Total interest income329,906 332,113 334,038 331,777 345,915 1,327,834 1,367,360 
Interest expense:
Deposits144,974 155,829 148,784 153,725 150,307 603,312 576,437 
FHLB advances12,595 12,590 13,437 13,485 18,868 52,107 80,008 
FRB advances— — — — — — 6,286 
Subordinated debt3,349 3,537 2,734 2,689 2,688 12,309 10,755 
Other borrowings1,167 1,612 1,430 1,493 1,546 5,702 6,425 
Total interest expense162,085 173,568 166,385 171,392 173,409 673,430 679,911 
Net interest income167,821 158,545 167,653 160,385 172,506 654,404 687,449 
Provision for credit losses21,194 17,066 18,121 17,070 13,523 73,451 74,611 
Net interest income after provision for credit losses146,627 141,479 149,532 143,315 158,983 580,953 612,838 
Non-interest income:
Commercial lease income10,604 10,093 10,282 9,683 9,035 40,662 36,179 
Loan fees8,639 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 fees1,010 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 investments389 — 11,041 — — 11,430 — 
Other3,954 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 benefits47,147 47,717 44,947 36,025 33,965 175,836 133,275 
Technology, communication and bank operations13,435 13,588 16,227 21,904 16,887 65,154 65,550 
Commercial lease depreciation8,933 7,811 7,829 7,970 7,357 32,543 29,898 
Professional services13,473 9,048 6,104 6,353 9,820 34,978 35,177 
Loan servicing4,584 3,778 3,516 4,031 3,779 15,909 17,075 
Occupancy3,335 2,987 3,120 2,347 2,320 11,789 10,070 
FDIC assessments, non-income taxes and regulatory fees10,077 7,902 10,236 13,469 13,977 41,684 35,036 
Advertising and promotion1,645 908 1,254 682 850 4,489 3,095 
Legal settlement expense— — — — — — 4,096 
Other7,746 10,279 10,219 6,388 4,812 34,632 19,391 
Total non-interest expense110,375 104,018 103,452 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 income26,915 46,743 58,085 49,726 62,092 181,469 250,143 
Preferred stock dividends3,649 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 
18

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
December 31,September 30,June 30,March 31,December 31,
20242024202420242023
ASSETS
Cash and due from banks$56,787 $39,429 $45,045 $51,974 $45,210 
Interest earning deposits3,729,144 3,048,593 3,003,542 3,649,146 3,801,136 
Cash and cash equivalents3,785,931 3,088,022 3,048,587 3,701,120 3,846,346 
Investment securities, at fair value2,019,694 2,412,069 2,511,650 2,604,868 2,405,640 
Investment securities held to maturity991,937 1,064,437 962,799 1,032,037 1,103,170 
Loans held for sale204,794 275,420 375,724 357,640 340,317 
Loans and leases receivable13,127,634 12,527,283 12,254,204 11,936,621 11,963,855 
Loans receivable, mortgage finance, at fair value1,321,128 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 leases14,311,987 13,644,538 13,124,479 12,765,935 12,726,456 
FHLB, Federal Reserve Bank, and other restricted stock96,214 95,035 92,276 100,067 109,548 
Accrued interest receivable108,351 115,588 112,788 120,123 114,766 
Bank premises and equipment, net6,668 6,730 7,019 7,253 7,371 
Bank-owned life insurance297,641 295,531 293,108 293,400 292,193 
Goodwill and other intangibles3,629 3,629 3,629 3,629 3,629 
Other assets481,395 455,083 410,916 361,295 366,829 
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 deposits13,238,173 13,398,580 13,203,231 13,272,503 13,497,742 
Total deposits18,846,461 18,069,389 17,678,093 17,961,383 17,920,236 
FHLB advances1,128,352 1,117,229 1,018,349 1,195,088 1,203,207 
Other borrowings99,068 99,033 123,970 123,905 123,840 
Subordinated debt182,509 182,439 182,370 182,300 182,230 
Accrued interest payable and other liabilities215,168 186,812 193,328 193,074 248,358 
Total liabilities20,471,558 19,654,902 19,196,110 19,655,750 19,677,871 
Preferred stock137,794 137,794 137,794 137,794 137,794 
Common stock35,758 35,734 35,686 35,540 35,459 
Additional paid in capital575,333 571,609 567,345 567,490 564,538 
Retained earnings1,326,011 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’ equity1,836,683 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 

19

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
December 31, 2024September 30, 2024December 31, 2023
Average BalanceInterest Income or Expense
Average Yield or Cost (%)
Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)Average BalanceInterest Income or ExpenseAverage 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 loans1,316,884 16,704 5.05%1,267,656 17,723 5.56%997,353 13,726 5.46%
Multifamily loans2,162,825 22,400 4.12%2,071,340 21,147 4.06%2,131,750 22,347 4.16%
Non-owner occupied commercial real estate loans1,491,170 21,770 5.81%1,411,533 21,065 5.94%1,392,684 20,686 5.89%
Residential mortgages535,833 6,301 4.68%525,285 6,082 4.61%526,422 5,942 4.48%
Installment loans1,023,569 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 assets122,784 2,140 6.93%118,914 1,910 6.39%116,756 2,577 8.75%
Total interest-earning assets21,570,717 329,906 6.09%20,694,900 332,113 6.39%20,802,304 345,915 6.61%
Non-interest-earning assets609,253 535,504 449,969 
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 accounts3,974,776 42,492 4.25%3,676,994 42,128 4.56%2,802,309 29,990 4.25%
Other savings accounts1,258,018 12,939 4.09%1,563,970 18,426 4.69%1,218,118 13,849 4.51%
Certificates of deposit2,612,246 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%
Borrowings1,364,138 17,111 4.99%1,334,905 17,739 5.29%1,816,047 23,102 5.05%
Total interest-bearing liabilities14,806,480 162,085 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 borrowings20,153,392 3.20%19,260,647 3.59%19,388,554 3.55%
Other non-interest-bearing liabilities204,947 195,722 276,198 
Total liabilities 20,358,339 19,456,369 19,664,752 
Shareholders’ equity1,821,631 1,774,035 1,587,521 
Total liabilities and shareholders’ equity$22,179,970 $21,230,404 $21,252,273 
Net interest income167,821 158,545 172,506 
Tax-equivalent adjustment377 392 398 
Net interest earnings$168,198 $158,937 $172,904 
Interest spread2.89%2.80%3.06%
Net interest margin3.10%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.
20

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
Twelve Months Ended
December 31, 2024December 31, 2023
Average Balance
Interest Income or ExpenseAverage Yield or Cost (%)Average BalanceInterest Income or ExpenseAverage 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 loans1,192,827 62,344 5.23%1,179,141 67,660 5.74%
Multifamily loans2,116,168 86,263 4.08%2,165,067 85,204 3.94%
Non-owner occupied commercial real estate loans1,412,201 83,484 5.91%1,423,929 81,970 5.76%
Residential mortgages526,133 24,046 4.57%533,213 23,240 4.36%
Installment loans1,104,470 106,340 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 assets114,983 9,171 7.98%118,574 8,040 6.78%
Total interest-earning assets20,915,718 1,327,834 6.35%20,971,198 1,367,360 6.52%
Non-interest-earning assets518,472 515,185 
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 accounts3,559,362 159,598 4.48%2,358,437 93,434 3.96%
Other savings accounts1,595,357 73,947 4.64%1,029,951 41,556 4.03%
Certificates of deposit2,434,622 121,367 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%
Borrowings1,414,583 70,118 4.96%2,073,553 103,286 4.98%
Total interest-bearing liabilities14,664,814 673,430 4.59%15,916,374 679,911 4.27%
Non-interest-bearing deposits (5)
4,807,647 3,801,053 
Total deposits and borrowings19,472,461 3.46%19,717,427 3.45%
Other non-interest-bearing liabilities217,172 272,599 
Total liabilities 19,689,633 19,990,026 
Shareholders’ equity1,744,557 1,496,357 
Total liabilities and shareholders’ equity$21,434,190 $21,486,383 
Net interest income654,404 687,449 
Tax-equivalent adjustment1,556 1,568 
Net interest earnings$655,960 $689,017 
Interest spread2.89%3.07%
Net interest margin3.14%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.
21

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,
20242024202420242023
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 
Multifamily2,252,246 2,115,978 2,067,332 2,123,675 2,138,622 
Commercial real estate owner occupied1,100,944 981,904 805,779 806,278 797,319 
Commercial real estate non-owner occupied1,359,130 1,326,591 1,202,606 1,182,084 1,177,650 
Construction147,209 174,509 163,409 185,601 166,393 
Total commercial loans and leases13,205,427 12,522,328 11,982,829 11,586,706 11,463,736 
Consumer:
Residential496,559 500,786 481,503 482,537 484,435 
Manufactured housing33,123 34,481 35,901 37,382 38,670 
Installment:
Personal463,854 453,739 474,481 492,892 555,533 
Other249,799 266,362 282,201 299,714 319,393 
Total installment loans713,653 720,101 756,682 792,606 874,926 
Total consumer loans1,243,335 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:
Personal40,903 55,799 125,598 137,755 151,040 
Other162,055 217,098 247,442 219,015 188,062 
Total installment loans202,958 272,897 373,040 356,770 339,102 
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,
20242024202420242023
Demand, non-interest bearing$5,608,288 $4,670,809 $4,474,862 $4,688,880 $4,422,494 
Demand, interest bearing5,553,698 5,606,500 5,894,056 5,661,775 5,580,527 
Total demand deposits11,161,986 10,277,309 10,368,918 10,350,655 10,003,021 
Savings1,131,819 1,399,968 1,573,661 2,080,374 1,402,941 
Money market3,844,451 3,961,028 3,539,815 3,347,843 3,226,395 
Time deposits2,708,205 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 

22



CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of December 31, 2024As of September 30, 2024As of December 31, 2023
Loan typeTotal loansAllowance for credit lossesTotal reserves to total loansTotal loansAllowance for credit lossesTotal reserves to total loansTotal loansAllowance for credit lossesTotal 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 %
Multifamily2,252,246 18,511 0.82 %2,115,978 18,090 0.85 %2,138,622 16,343 0.76 %
Commercial real estate owner occupied1,100,944 10,755 0.98 %981,904 10,913 1.11 %797,319 9,882 1.24 %
Commercial real estate non-owner occupied1,359,130 17,405 1.28 %1,326,591 17,303 1.30 %1,177,650 16,859 1.43 %
Construction147,209 1,250 0.85 %174,509 1,606 0.92 %166,393 1,482 0.89 %
Total commercial loans and leases receivable11,884,299 77,300 0.65 %11,271,915 73,103 0.65 %10,565,824 68,069 0.64 %
Consumer:
Residential496,559 5,968 1.20 %500,786 5,838 1.17 %484,435 6,586 1.36 %
Manufactured housing33,123 3,829 11.56 %34,481 4,080 11.83 %38,670 4,239 10.96 %
Installment713,653 49,678 6.96 %720,101 50,137 6.96 %874,926 56,417 6.45 %
Total consumer loans receivable1,243,335 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 value1,321,128 — — %1,250,413 — — %897,912 — — %
Loans held for sale204,794 — — %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.
23


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED (CONTINUED)
(Dollars in thousands)
As of December 31, 2024As of September 30, 2024As of December 31, 2023
Loan typeNon accrual /NPLsTotal NPLs to total loansTotal reserves to total NPLsNon accrual /NPLsTotal NPLs to total loansTotal reserves to total NPLsNon accrual /NPLsTotal NPLs to total loansTotal 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 %
Multifamily11,834 0.53 %156.42 %11,834 0.56 %152.86 %— — %— %
Commercial real estate owner occupied8,090 0.73 %132.94 %8,613 0.88 %126.70 %5,869 0.74 %168.38 %
Commercial real estate non-owner occupied354 0.03 %4916.67 %763 0.06 %2267.76 %— — %— %
Construction— — %— %— — %— %— — %— %
Total commercial loans and leases receivable24,319 0.20 %317.86 %25,825 0.23 %283.07 %10,305 0.10 %660.54 %
Consumer:
Residential8,714 1.75 %68.49 %7,997 1.60 %73.00 %6,802 1.40 %96.82 %
Manufactured housing1,852 5.59 %206.75 %1,869 5.42 %218.30 %2,331 6.03 %181.85 %
Installment5,613 0.79 %885.05 %6,328 0.88 %792.30 %7,211 0.82 %782.37 %
Total consumer loans receivable16,179 1.30 %367.61 %16,194 1.29 %370.85 %16,344 1.17 %411.42 %
Loans and leases receivable40,498 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 sale2,777 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.
24


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
Q4Q3Q2Q1Q4Twelve Months Ended December 31,
2024
2024
2024
2024
2023
20242023
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 occupied339 4 — 22 — 365 5 
Commercial real estate non-owner occupied145 — — — (288)145 4,212 
Construction— (3)(7)— — (10)(116)
Residential(18)(21)(20)18 (1)(41)34 
Installment10,493 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 
25


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.

Core Earnings and Adjusted Core Earnings - Customers Bancorp
Twelve Months Ended
December 31,
Q4 2024Q3 2024Q2 2024Q1 2024Q4 202320242023
(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 expense1,198 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 settlement157 0.00 — — — — — — — — 157 0.00 — — 
(Gains) losses on investment securities20,035 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 sale110 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 


26


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

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 2024Q3 2024Q2 2024Q1 2024Q4 202320242023
GAAP net income$26,915 $46,743 $58,085 $49,726 $62,092 $181,469 $250,143 
Reconciling items (after tax):
Severance expense1,198 540 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 settlement157 — — — — 157 — 
(Gains) losses on investment securities20,035 (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 sale110 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 assets0.86 %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 %





27


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

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 2024Q3 2024Q2 2024Q1 2024Q4 202320242023
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 expense1,595 659 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 settlement209 — — — — 209 — 
(Gains) losses on investment securities26,678 (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 sale147 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 %
28


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
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 2024Q3 2024Q2 2024Q1 2024Q4 202320242023
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 expense1,198 540 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 settlement157 — — — — 157 — 
(Gains) losses on investment securities20,035 (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 sale110 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 equity10.44 %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 %




29


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

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 2024Q3 2024Q2 2024Q1 2024Q4 202320242023
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 expense1,595 659 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 settlement209 — — — — 209 — 
(Gains) losses on investment securities26,678 (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 sale147 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 %
30


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp
Twelve Months Ended
December 31,
(Dollars in thousands, except per share data)Q4 2024Q3 2024Q2 2024Q1 2024Q4 202320242023
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 securities26,678 (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 sale147 607 — — — 754 — 
Core non-interest income25,638 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.



31


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

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 2024Q3 2024Q2 2024Q1 2024Q4 202320242023
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 2024Q3 2024Q2 2024Q1 2024Q4 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 assets7.6 %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 2024Q3 2024Q2 2024Q1 2024Q4 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 outstanding31,346,507 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 
32