EX-99.1 2 q119pressrelease.htm EXHIBIT 99.1 Exhibit
                                
                                            

Exhibit 99.1
bancorpa24.jpg
Customers Bancorp, Inc.
1015 Penn Avenue
Wyomissing, PA 19610
Contacts:
Jay Sidhu, Chairman & CEO 610-935-8693
Carla Leibold, CFO 484-923-8802
Bob Ramsey, Director of IR and Strategic Planning 484-926-7118
 
 
 
 
 
Customers Bancorp Reports Net Income
For First Quarter 2019

Wyomissing, PA, April 24, 2019 - Customers Bancorp, Inc. (NYSE: CUBI) the parent company of Customers Bank (collectively “Customers” or "CUBI"), today reported first quarter 2019 ("Q1 2019") net income to common shareholders of $11.8 million, or $0.38 per diluted share. Core earnings for Q1 2019 also totaled $11.8 million, or $0.38 per diluted share (a non-GAAP measure).
(Dollars in thousands, except per share amounts)
USD
 
Per Share
Q1 2019 Net Income to Common Shareholders (GAAP)
 
 
 
Customers Bank Business Banking
$
11,988

 
$
0.38

BankMobile
(163
)
 
(0.01
)
Consolidated
$
11,825

 
$
0.38

 
 
 
 
•
Net interest margin, tax equivalent ("NIM") (a non-GAAP measure) was 2.59% in Q1 2019, an expansion of 2 basis points from fourth quarter 2018 ("Q4 2018"). Excluding prepayment fees, NIM expanded 3 basis points from Q4 2018.
•
Total assets were $10.1 billion at March 31, 2019, compared to $9.8 billion at December 31, 2018 and $10.8 billion at March 31, 2018. Average interest earning assets for Q1 2019 were $9.3 billion, compared to $9.5 billion for Q4 2018 and $9.9 billion for Q1 2018.
•
Total deposits increased year-over-year by $383 million, or 5.4%, from March 31, 2018, with demand deposits increasing $413 million, or 23%.
•
Loan mix improved year-over-year, as commercial and industrial ("C&I") loans, excluding commercial loans to mortgage companies, increased $335 million, or 20%, and residential mortgages and other consumer loans increased $550 million, or 239%, from March 31, 2018. As planned, multi-family loans decreased $433 million and commercial real estate non-owner occupied loans decreased $88.6 million over this same period. Reflecting broader market trends, commercial loans to mortgage companies decreased $396 million from March 31, 2018.
•
Reflecting this change in mix, the provision for loan losses was $4.8 million in Q1 2019, compared to $1.4 million in Q4 2018 and $2.1 million in Q1 2018.
•
Asset quality remains strong. Non-performing loans improved slightly and were only 0.26% of total loans at March 31, 2019. Net charge-offs were only $1.1 million, or 5 basis points of average total loans on an annualized basis, during Q1 2019. Reserves to non-performing loans were 194% at March 31, 2019.
•
The Q1 2019 BankMobile segment loss narrowed to $163 thousand, or less than a penny per diluted share, which reflected favorable seasonality in the first quarter and the addition of new monthly deposit fees which were initiated late in Q1 2019.

1

                                
                                            

•
In late November 2018, BankMobile's first White Label banking partnership went live in beta test phase, offering BankMobile's best in class banking products to the partner's broad customer base. At March 31, 2019, the partnership had generated over $11 million in total deposits during the beta test phase with no advertising. On April 18, 2019, T-Mobile "launched" the first phase of its national marketing plan, and in the first week new account openings have exceeded our expectations. We expect significant account openings and deposit growth through the remainder of 2019.
•
Q1 2019 book value per common share was $24.44 and tangible book value per common share (a non-GAAP measure) was $23.92. Tangible book value per common share has increased at a compound annual growth rate of 10.2% over the past five years.
•
Based on the April 18, 2019 closing price of $22.30, Customers Bancorp common equity is trading at 0.93x tangible book value of $23.92 (a non-GAAP measure) and 8.6x the 2020 consensus estimate of $2.60.

"We are on track to meet or exceed Street expectations for 2019, continue to further strengthen the quality of our balance sheet by improving capital while maintaining strong credit quality, and achieve a ROAA of 1.25% within 2-3 years. Looking ahead, we expect core EPS to be $3.00 per share or higher in 2020. We are also excited about the recent "launch" of BankMobile's T-Mobile partnership and expect to add significant new customers and deposits to our bank," stated Jay Sidhu, CEO and Chairman of Customers Bank.

Strategic Priorities

Improve Profitability: Target a 2.75% NIM by Q4 2019 and a 1.25% ROAA in 2-3 years

Customers expects to keep total assets relatively flat in 2019, with a focus on growing its core businesses with improving margins, capital and profitability. Through favorable mix shifts in both assets and liabilities, Customers expects to improve the overall quality of its balance sheet and deposit franchise, expand its net interest margin, enhance liquidity and improve interest rate sensitivity.

•
Target ROAA in top quartile of peer group, which we expect will equate to a ratio of 1.25% or higher over the next 2-3 years.
•
Achieve NIM expansion to 2.75% or greater by Q4 2019, with a full year 2019 NIM above 2.70%, through an expected shift in asset and funding mix.
•
BankMobile growth and maturity expected to enhance profitability; we expect BankMobile to be profitable by the end of 2019.
•
Expense control; we expect modest growth in most Customers Bank Business Banking segment expenses, and incremental spend in other areas will be driven by revenue growth.
•
Core deposit and higher-yielding loan growth are strategic priorities. Customers currently has $2.1 billion of loans with yields below 3.75% at March 31, 2019, of which $1.8 billion are multi-family loans. Over the next two years, we expect to run-off these lower-yielding multi-family loans and replace them with higher-yielding interest earning assets.
•
Maintain strong credit quality and superior risk management.

Build and Deploy Capital

The estimated total risk-based capital ratio was approximately 12.9% for Q1 2019. The estimated common equity Tier 1 capital ratio was approximately 9.0% for Q1 2019. The estimated Tier 1 leverage capital ratio was approximately 10.1% for Q1 2019. The tangible common equity to tangible assets ratio (a non-GAAP measure) was 7.4% at March 31, 2019.

In January 2019, Customers repurchased 31,159 shares of common stock at an average price of $18.35 per share, completing its existing share repurchase authorization, which it used to repurchase approximately 2% of shares

2

                                
                                            

outstanding at 80% of tangible book in December 2018 and January 2019. "We still have excess capital above our targeted minimum tangible common equity ratio of 7.0%, which gives us options," Sidhu stated. "As capital builds, we will evaluate the best uses for our excess capital, which may include calling our preferred equity as it becomes callable, starting in 2020," Sidhu continued.

BankMobile Segment is Expected to Generate a Positive Earnings Contribution by Q4 2019

BankMobile, a division of Customers Bank, operates a branchless digital bank offering low cost banking services to over 1.0 million active deposit customers. Customers expects to retain BankMobile for a 2-3 year period, but will regularly evaluate the best options for BankMobile.

BankMobile deposits averaged $635 million in Q1 2019 with an average cost of just 0.11%, and the Q1 2019 segment net loss decreased to $163 thousand, or $(0.01) per diluted share, from $3.3 million, or $(0.10) per diluted share in Q4 2018. This loss, however, is likely to increase in the seasonally slower second quarter, which is expected to include a larger provision expense for planned consumer loan growth. BankMobile is expected to generate a positive contribution to Customers' earnings in Q4 2019, given expected core deposit growth from its new White Label banking partnership and fee changes to its student disbursement business. BankMobile initiated monthly deposit fees across its student business late in the first quarter, resulting in a minimal impact in Q1 2019, but is expected to improve revenues in future periods. These fees will be waived for customers that meet minimum monthly deposit requirements, as part of BankMobile's goals of creating customers for life with very low cost banking products. The new fees help balance that strategy with the need to cover costs from more transactional accounts and encourage customers to use BankMobile as a primary banking relationship.
  
In late November 2018, BankMobile's first White Label banking partnership went live in beta test phase, making BankMobile's best in class banking products available to the partner's broad customer base, and on April 18, 2019, the partnership entered the next phase with the "launch" of the first phase of national marketing efforts. Even before any marketing efforts, the partnership has generated over $11 million in total deposits in the first several months. Account openings and deposit growth are expected to accelerate throughout the remainder of the year when our partner begins to gradually market the account.

Outlook for 2019 and 2020

Customers' expects core earnings per share to be $3.00 or higher in 2020, an increase of over 35% from the January 2019 consensus estimate. Customers has previously indicated it is on track to earn at least $2.21 in core earnings per share for 2019. “We are off to a good start in 2019, with strong growth in higher margin C&I and consumer loans, supported by corresponding increases in core deposits. The planned commercial and consumer loan growth expected in 2019 would require appropriate provision expense in 2019. This provision expense caused a drag on Q1 2019 earnings and will also result in a temporary drag on Q2 2019 earnings; however, earnings should show acceleration starting in Q3 2019, with Customers projecting 2020 core EPS of at least $3.00," stated Sidhu.

Net interest margin is expected to increase to 2.75% or higher by Q4 2019, with full-year 2019 net interest margin above 2.70%. Average interest earning assets for 2019 are expected to be roughly equal to 2018 average interest earning assets. Core non-interest income is expected to grow approximately 10% - 20% from 2018 and the core efficiency ratio for full-year 2019 is expected to be in the mid-60%s. Continued growth in retained earnings is expected to provide flexibility to call preferred equity as it becomes callable beginning in 2020 and to consider common stock buybacks, subject to regulatory approval.




3

                                
                                            

Q1 2019 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended March 31, 2019 and the preceding four quarters, respectively:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands, except per share data and stock price data)
Q1
Q4
Q3
Q2
Q1
2019
2018
2018
2018
2018
 
 
 
 
 
 
 
GAAP Profitability Metrics:
 
 
 
 
 
Net income available to common shareholders
$
11,825

$
14,247

$
2,414

$
20,048

$
20,527

Per share amounts:
 
 
 
 
 
 
Earnings per share - basic
$
0.38

$
0.45

$
0.08

$
0.64

$
0.65

 
Earnings per share - diluted
$
0.38

$
0.44

$
0.07

$
0.62

$
0.64

 
Book value per common share (3)
$
24.44

$
23.85

$
23.27

$
22.70

$
22.30

 
CUBI stock price (3)
$
18.31

$
18.20

$
23.53

$
28.38

$
29.15

Average shares outstanding - basic
31,047,191

31,616,740

31,671,122

31,564,893

31,424,496

Average shares outstanding - diluted
31,482,867

32,051,030

32,277,590

32,380,662

32,273,973

Shares outstanding (3)
31,131,247

31,003,028

31,687,340

31,669,643

31,466,271

Return on average assets ("ROAA")
0.64
%
0.71
%
0.22
%
0.89
%
0.95
%
Return on average common equity ("ROCE")
6.38
%
7.58
%
1.31
%
11.32
%
11.73
%
Efficiency ratio
68.32
%
69.99
%
66.42
%
64.35
%
60.84
%
Non-GAAP Profitability Metrics (1):
 
 
 
 
 
Core earnings
$
11,823

$
16,992

$
20,053

$
20,841

$
20,597

Per share amounts:
 
 
 
 
 
 
Core earnings per share - diluted
$
0.38

$
0.53

$
0.62

$
0.64

$
0.64

 
Tangible book value per common share (3)
$
23.92

$
23.32

$
22.74

$
22.15

$
21.74

Net interest margin, tax equivalent
2.59
%
2.57
%
2.47
%
2.62
%
2.67
%
Tangible common equity to tangible assets (3)
7.35
%
7.36
%
6.80
%
6.33
%
6.36
%
Core ROAA
0.64
%
0.82
%
0.88
%
0.91
%
0.96
%
Core ROCE
6.38
%
9.05
%
10.86
%
11.76
%
11.77
%
Pre-tax pre-provision core net income
$
25,036

$
27,957

$
31,821

$
30,652

$
33,757

Core ROAA - pre-tax and pre-provision
1.04
%
1.12
%
1.18
%
1.15
%
1.33
%
Core ROCE - pre-tax and pre-provision
11.57
%
12.96
%
15.28
%
15.26
%
17.23
%
Core efficiency ratio
68.32
%
66.18
%
62.99
%
63.31
%
60.72
%
Asset Quality:
 
 
 
 
 
Net charge-offs
$
1,060

$
2,154

$
471

$
427

$
633

Annualized net charge-offs to average total loans
0.05
%
0.10
%
0.02
%
0.02
%
0.03
%
Non-performing loans ("NPLs") to total loans (3)
0.26
%
0.32
%
0.27
%
0.29
%
0.26
%
Reserves to NPLs (3)
194.15
%
147.16
%
174.56
%
149.25
%
173.02
%
Regulatory Capital Ratios (2):
 
 
 
 
 
Common equity Tier 1 capital to risk-weighted assets
8.96
%
8.96
%
8.70
%
8.61
%
8.51
%
Tier 1 capital to risk-weighted assets
11.50
%
11.58
%
11.26
%
11.16
%
11.11
%
Total capital to risk-weighted assets
12.93
%
13.00
%
12.69
%
12.55
%
12.55
%
Tier 1 capital to average assets (leverage ratio)
10.07
%
9.66
%
8.91
%
8.87
%
9.03
%
 
 
 
 
 
 
 
(1) Non-GAAP measures exclude investment securities gains and losses, executive severance expense, merger and acquisition-related expenses, losses realized from the sale of lower-yielding investment securities and multi-family loans, and certain intangible assets. These notable items are not included in Customers' disclosures of core earnings and other core profitability metrics. Please note that not each of the aforementioned adjustments affected the reported amount in each of the periods presented. Customers' reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.
(2) Regulatory capital ratios are estimated for Q1 2019.
(3) Metric is a spot balance for the last day of each quarter presented.

4

                                
                                            

Net Interest Income

Net interest income totaled $59.3 million in Q1 2019, a decrease of $2.2 million from Q4 2018, primarily due to a $0.2 billion reduction in average interest-earning assets, partially offset by two basis points of NIM expansion. Compared to Q4 2018, total loan yields increased 11 basis points to 4.48%, driven by a 21 basis point increase in commercial and industrial loan yields given higher market interest rates, and a 37 basis point increase in the yield on "all other loans" which principally includes residential mortgages and consumer loans. The increase in all other loan yields principally reflects the purchase of $132.5 million of residential mortgages and consumer loans in Q1 2019. The cost of total deposits increased by a modest four basis points to 1.75%. Borrowing costs decreased 15 basis points to 2.98% due to an increase in shorter-term borrowings.

Q1 2019 net interest income decreased $5.7 million from Q1 2018, primarily due to a $0.6 billion reduction in average interest-earning assets and eight basis points of NIM compression. NIM compression reflected a 69 basis point increase in the cost of interest-bearing liabilities, partially offset by a 44 basis point increase in the yield of interest-earnings assets. Given the four Federal Reserve interest rate hikes in 2018 and the associated increases in market interest rates, the cost of total deposits increased 62 basis points to 1.75% and borrowing costs increased 73 basis points to 2.98%.

Total loans decreased $73 million, or 0.8%, to $8.7 billion at March 31, 2019 compared to the year-ago period. Commercial and industrial loans, excluding commercial loans to mortgage companies, increased $335 million, or 20.3%, to $2.0 billion; residential mortgages and other consumer loans increased $550 million, or 239%, to $780 million; multi-family loans decreased $433 million, or 11.9%, to $3.2 billion; commercial real estate non-owner-occupied loans decreased $88.6 million, or 7.4%, to $1.1 billion; and commercial loans to mortgage companies decreased $396 million, or 20.5%, to $1.5 billion.

Total deposits increased $383 million, or 5.4%, to $7.4 billion at March 31, 2019 compared to the year-ago period. Total demand deposits increased $413 million, or 23.3%, to $2.2 billion; savings and money market deposits increased $301 million, or 8.9%, to $3.7 billion; and certificates of deposit accounts decreased $331 million, or 17.5%, to $1.6 billion. In July 2018, Customers launched a new digital, on-line banking product with a goal of gathering retail deposits. As of March 31, 2019, this new business generated $361 million in retail deposits, an increase of $27.5 million since December 31, 2018.

Provision, Credit Quality and Risk Management

The provision for loan losses totaled $4.8 million in Q1 2019, compared to $1.4 million in Q4 2018 and $2.1 million in Q1 2018. The Q1 2019 provision expense included $4.2 million for growth in the consumer and commercial and industrial loan portfolios, net of the multi-family and commercial real estate loan run-off (including $4.0 million relating to increases in residential mortgages and consumer loans) and $0.6 million for impaired loan provisions. Net charge-offs for Q1 2019 were $1.1 million, or 5 basis points of average loans on an annualized basis, compared to net charge offs of $2.2 million, or 10 basis points in Q4 2018, and $0.6 million, or 3 basis points in Q1 2018.
Risk management is a critical component of how Customers creates long-term shareholder value, and Customers believes that asset quality is one of the most important risks in banking to be understood and managed. Customers believes that asset quality risks must be diligently addressed during good economic times with prudent underwriting standards so that when the economy deteriorates the bank's capital is sufficient to absorb all losses without threatening its ability to operate and serve its community and other constituents. "Customers' non-performing loans at March 31, 2019 were only 0.26% of total loans, compared to our peer group non-performing loans of approximately 0.74% in the most recent period available, and industry average non-performing loans of 1.11% in the most recent period available. Our expectation is superior asset quality performance in good times and in difficult years," said Mr. Sidhu.

5

                                
                                            

Non-Interest Income

Non-interest income totaled $19.7 million in Q1 2019, a small decrease of $0.2 million compared to Q4 2018. The small decrease in non-interest income primarily reflects a reduction in other income given a Q4 2018 gain of $2.0 million realized from the termination of certain interest rate swaps, offset in part by increases of $1.2 million in interchange and card revenue and $0.4 million in commercial lease income. The increase in interchange and card revenue primarily resulted from a seasonal increase in activity volumes at BankMobile, coinciding with the beginning of a new academic semester. The increase in commercial lease income primarily resulted from the continued growth of our Equipment Finance Group.

Q1 2019 non-interest income decreased $1.2 million compared to Q1 2018. The decrease in non-interest income primarily resulted from decreases of $0.6 million in mortgage warehouse transactional fees, $0.9 million in interchange and card revenue, and $1.4 million in gains on sales of SBA loans, offset in part by a $1.5 million increase in commercial lease income. The decrease in mortgage warehouse transactional fees primarily resulted from a 30% decrease in the number of loans funded in Q1 2019 compared to Q1 2018, as increasing interest rates reduced the volume of mortgage originations. The decrease in interchange and card revenue primarily resulted from lower activity volumes at BankMobile. The reduction of gains on sale of SBA loans reflects a strategic shift to retain SBA loans on our balance sheet. The increase in commercial lease income primarily resulted from the continued growth of our Equipment Finance Group.

Non-Interest Expense

Non-interest expense totaled $54.0 million in Q1 2019, a decrease of $3.1 million from $57.0 million in Q4 2018. The decrease in non-interest expense primarily resulted from decreases of $0.9 million in salaries and employee benefits, $1.1 million in professional services, $0.5 million in merger related expenses, and $1.2 million in other non-interest expense, offset in part by increases of $0.4 million in technology, communication, and bank operations and $0.4 million in commercial lease depreciation. The decrease in salaries and employee benefits primarily resulted from fewer working days during Q1 2019 compared to Q4 2018, and a reduction in variable compensation. The decrease in professional services and other non-interest expenses primarily resulted from efforts to monitor and control expenses. The increase in technology, communication, and bank operations primarily resulted from the continued investment to improve and maintain Customers' digital information technology infrastructure. The increase in commercial lease expense primarily resulted from the continued growth of our Equipment Finance Group.
Q1 2019 non-interest expense increased $1.7 million from $52.3 million in Q1 2018. The increase in non-interest expense primarily resulted from increases of $0.9 million in salaries and employee benefits, $2.0 million in technology, communication, and bank operations, $0.4 million in advertising and promotion, and $1.1 million in commercial lease depreciation, offset in part by decreases of $1.4 million in professional services and $1.0 million in other non-interest expense. The increase in salaries and employee benefits primarily resulted from an increase in average full-time equivalent employees and annual merit increases. The increase in technology, communication, and bank operations primarily resulted from the continued investment to improve and maintain Customers' digital information technology infrastructure. The increase in advertising and promotion primarily supported growth in Customers' digital banking products. The increase in commercial lease expense primarily resulted from the continued growth of our Equipment Finance Group. The decrease in professional services and other non-interest expenses primarily resulted from efforts to monitor and control expenses.
Tax

Customers' effective tax rate was 23.8% for Q1 2019, compared to 22.2% for Q4 2018 and 23.5% for Q1 2018. The increase in the effective tax rate from Q4 2018 was primarily driven by discrete provision items, including the income tax expense from restricted stock units that vested during Q1 2019 and an estimated research and development tax credit recorded in Q4 2018. Customers expects the 2019 effective tax rate to be approximately 23% to 24%.


6

                                
                                            

Segment Discussion

Customers Bancorp has two operating segments: Customers Bank Business Banking and BankMobile.

The Customers Bank Business Banking segment reported net income available to common shareholders of $12.0 million, or $0.38 per diluted share, for Q1 2019, down from $17.5 million, or $0.55 per diluted share, for Q4 2018. The segment's core earnings for Q1 2019 totaled $12.0 million, or $0.38 per diluted share, compared to $19.9 million, or $0.62 per diluted share, for Q4 2018 (non-GAAP measures). The decrease in earnings resulted from decreases in net interest income given a smaller balance sheet and non-interest income, and an increase in the provision for loan losses mostly attributable to growth in residential mortgages and commercial and industrial loan portfolios, offset in part by decreases in non-interest expense and income tax expense.

The Customers Bank Business Banking segment net income available to common shareholders for Q1 2019 decreased from $21.5 million, or $0.67 per diluted share, for Q1 2018. The segment's core earnings for Q1 2019 decreased from $21.5 million, or $0.67 per diluted share, for Q1 2018 (non-GAAP measures). The decrease in earnings resulted from decreases in net interest income and non-interest income and increases in the provision for loan losses and non-interest expenses, offset in part by a decrease in income tax expense.

The BankMobile segment reported a net loss of $0.2 million, or less than $(0.01) per diluted share, for Q1 2019, an improvement from a net loss of $3.3 million, or $(0.10) per diluted share, for Q4 2018. The segment's core loss (a non-GAAP measure) for Q1 2019 totaled $0.2 million, or $(0.01) per diluted share, an improvement from a core loss (a non-GAAP measure) for Q4 2018 of $2.9 million, or $(0.09) per diluted share. The improvement in net loss resulted from increases in revenues, given the purchase of consumer loans in Q4 2018 of $30 million and Q1 2019 of $66 million and a seasonal increase in card volume at BankMobile, coinciding with the beginning of a new academic semester. Amounts reported for BankMobile include funds transfer pricing of $5.6 million and $3.8 million for Q1 2019 and Q4 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of low/no cost deposits. Part of BankMobile's strategy to reach profitability in 2019 includes the addition of reasonable monthly fees in the student disbursement business during 2019, which began to be implemented late in Q1 2019. In order to incentivize desired behaviors, monthly fees can be waived and an attractive rate of interest can be earned for customers who meet certain requirements. BankMobile also intends to deploy its low-cost deposits into consumer loans to increase net interest income. This strategy will be front-end loaded in 2019, with higher provision cost expected in the first half of the year and higher interest income expected in the second half of the year.

The BankMobile segment net loss of $0.2 million, or less than $(0.01) per diluted share, for Q1 2019, improved from a net loss of $1.0 million, or $(0.03) per diluted share, for Q1 2018. The segment's core loss (a non-GAAP measure) for Q1 2019 totaled $0.2 million, or $(0.01) per diluted share, an improvement from a core loss (a non-GAAP measure) for Q1 2018 of $0.9 million, or $(0.03) per diluted share. The improvement in net loss resulted from an increase in net interest income, primarily given consumer loan additions, offset by an increase in the provision for those loans.

Conference Call
Date:            Thursday, April 25, 2019        
Time:            9:00 AM EDT        
US Dial-in:        800-289-0459
International Dial-in:    323-794-2558
Participant Code:    135554

Please dial in at least 10 minutes before the start of the call to ensure timely participation. Slides accompanying the presentation will be available on Customers' website at https://www.customersbank.com/investor-relations/ prior to the call.

7

                                
                                            


Please submit any questions you have regarding the earnings in advance to rramsey@customersbank.com and the executives will address them on the call. Customers will also open the lines to questions following management's presentation of the first quarter results. A playback of the call will be available beginning April 25, 2019 at 12:00 PM EDT until 12:00 PM EDT on May 25, 2019. To listen, call within the United States 888-203-1112, or 719-457-0820 when calling internationally. Please use the replay passcode 1339299.

Institutional Background
Customers Bancorp, Inc. is a bank holding company located in Wyomissing, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $10.1 billion at March 31, 2019. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, the District of Columbia, Illinois, New York, Rhode Island, Massachusetts, New Hampshire and New Jersey. Committed to fostering customer loyalty, Customers Bank uses a High Tech/High Touch strategy that includes use of industry-leading technology to provide customers better access to their money, as well as Concierge Banking® by appointment at customers’ homes or offices 12 hours a day, seven days a week. Customers Bank offers a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.

Customers Bancorp, Inc.'s voting common shares are listed on the New York Stock Exchange under the symbol CUBI. Additional information about Customers Bancorp, Inc. can be found on the Company’s website, 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,'' 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 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. In addition, important factors relating to the acquisition of the Disbursements business, the combination of Customers' BankMobile business with the acquired Disbursements business, the implementation of Customers Bancorp, Inc.'s strategy to retain BankMobile for 2-3 years, the possibility that the expected benefits of retaining BankMobile for 2-3 years may not be achieved, or the possible effects on Customers' results of operations if BankMobile is never divested could cause Customers Bancorp's actual results to differ from those in the forward-looking statements. Further, Customers' expectations with respect to the effects of the new tax law could be affected by future clarifications, amendments, and interpretations of such law. 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, 2018, 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.

8

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
Q1
 
Q4
 
Q3
 
Q2
 
Q1
 
2019
 
2018
 
2018
 
2018
 
2018
Interest income:
 
 
 
 
 
 
 
 
 
Loans
$
93,116

 
$
94,248

 
$
97,815

 
$
95,240

 
$
85,931

Investment securities
6,241

 
6,277

 
8,495

 
9,765

 
8,672

Other
1,718

 
2,778

 
3,735

 
2,634

 
2,361

Total interest income
101,075

 
103,303

 
110,045

 
107,639

 
96,964

 
 
 
 
 
 
 
 
 
 
Interest expense:
 
 
 
 
 
 
 
 
 
Deposits
31,225

 
34,029

 
32,804

 
24,182

 
19,793

Other borrowings
3,569

 
2,404

 
2,431

 
3,275

 
3,376

FHLB advances
5,293

 
3,662

 
9,125

 
11,176

 
7,080

Subordinated debt
1,684

 
1,684

 
1,684

 
1,684

 
1,684

Total interest expense
41,771

 
41,779

 
46,044

 
40,317

 
31,933

Net interest income
59,304

 
61,524

 
64,001

 
67,322

 
65,031

Provision for loan losses
4,767

 
1,385

 
2,924

 
(784
)
 
2,117

Net interest income after provision for loan losses
54,537

 
60,139

 
61,077

 
68,106

 
62,914

 
 
 
 
 
 
 
 
 
 
Non-interest income:
 
 
 
 
 
 
 
 
 
Interchange and card revenue
8,806

 
7,568

 
7,084

 
6,382

 
9,661

Deposit fees
2,209

 
2,099

 
2,002

 
1,632

 
2,092

Commercial lease income
2,401

 
1,982

 
1,419

 
1,091

 
862

Bank-owned life insurance
1,816

 
1,852

 
1,869

 
1,869

 
2,031

Mortgage warehouse transactional fees
1,314

 
1,495

 
1,809

 
1,967

 
1,887

Gain (loss) on sale of SBA and other loans
—

 
(110
)
 
1,096

 
947

 
1,361

Mortgage banking income
167

 
73

 
207

 
205

 
121

Gain (loss) on sale of investment securities
—

 
—

 
(18,659
)
 
—

 
—

Other
3,005

 
4,918

 
5,257

 
2,034

 
2,895

Total non-interest income
19,718

 
19,877

 
2,084

 
16,127

 
20,910

 
 
 
 
 
 
 
 
 
 
Non-interest expense:
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
25,823

 
26,706

 
25,462

 
27,748

 
24,925

Technology, communication and bank operations
11,953

 
11,531

 
11,657

 
11,322

 
9,943

Professional services
4,573

 
5,674

 
4,743

 
3,811

 
6,008

Occupancy
2,903

 
2,933

 
2,901

 
3,141

 
2,834

Commercial lease depreciation
1,923

 
1,550

 
1,103

 
920

 
815

FDIC assessments, non-income taxes, and regulatory fees
1,988

 
1,892

 
2,415

 
2,135

 
2,200

Provision for operating losses
1,779

 
1,685

 
1,171

 
1,233

 
1,526

Advertising and promotion
809

 
917

 
820

 
319

 
390

Merger and acquisition related expenses
—

 
470

 
2,945

 
869

 
106

Loan workout
320

 
360

 
516

 
648

 
659

Other real estate owned expense
57

 
285

 
66

 
58

 
40

Other
1,856

 
3,042

 
3,305

 
1,546

 
2,834

Total non-interest expense
53,984

 
57,045

 
57,104

 
53,750

 
52,280

Income before income tax expense
20,271

 
22,971

 
6,057

 
30,483

 
31,544

Income tax expense
4,831

 
5,109

 
28

 
6,820

 
7,402

Net income
15,440

 
17,862

 
6,029

 
23,663

 
24,142

Preferred stock dividends
3,615

 
3,615

 
3,615

 
3,615

 
3,615

Net income available to common shareholders
$
11,825

 
$
14,247

 
$
2,414

 
$
20,048

 
$
20,527

 
 
 
 
 
 
 
 
 
 
 Basic earnings per common share
$
0.38

 
$
0.45

 
$
0.08

 
$
0.64

 
$
0.65

 Diluted earnings per common share
$
0.38

 
$
0.44

 
$
0.07

 
$
0.62

 
$
0.64



9

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
2019
 
2018
 
2018
 
2018
 
2018
ASSETS
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
41,723

 
$
17,696

 
$
12,943

 
$
22,969

 
$
9,198

Interest-earning deposits
75,939

 
44,439

 
653,091

 
228,757

 
206,213

Cash and cash equivalents
117,662

 
62,135


666,034


251,726


215,411

Investment securities, at fair value
678,142

 
665,012

 
668,851

 
1,161,000

 
1,181,661

Loans held for sale
1,602

 
1,507

 
1,383

 
1,043

 
662

Loans receivable, mortgage warehouse, at fair value
1,480,195

 
1,405,420

 
1,516,327

 
1,930,738

 
1,874,853

Loans receivable
7,264,049

 
7,138,074

 
7,239,950

 
7,181,726

 
6,943,566

Allowance for loan losses
(43,679
)
 
(39,972
)
 
(40,741
)
 
(38,288
)
 
(39,499
)
Total loans receivable, net of allowance for loan losses
8,700,565


8,503,522


8,715,536


9,074,176


8,778,920

FHLB, Federal Reserve Bank, and other restricted stock
80,416

 
89,685

 
74,206

 
136,066

 
130,302

Accrued interest receivable
35,716

 
32,955

 
32,986

 
33,956

 
31,812

Bank premises and equipment, net
10,542

 
11,063

 
11,300

 
11,224

 
11,556

Bank-owned life insurance
266,740

 
264,559

 
263,117

 
261,121

 
259,222

Other real estate owned
976

 
816

 
1,450

 
1,705

 
1,742

Goodwill and other intangibles
16,173

 
16,499

 
16,825

 
17,150

 
17,477

Other assets
235,360

 
185,672

 
165,416

 
143,679

 
140,501

Total assets
$
10,143,894


$
9,833,425


$
10,617,104


$
11,092,846


$
10,769,266

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Demand, non-interest bearing deposits
$
1,372,358

 
$
1,122,171

 
$
1,338,167

 
$
1,090,744

 
$
1,260,853

Interest-bearing deposits
6,052,960

 
6,020,065

 
7,175,547

 
6,205,210

 
5,781,606

Total deposits
7,425,318


7,142,236


8,513,714


7,295,954


7,042,459

Federal funds purchased
388,000

 
187,000

 
—

 
105,000

 
195,000

FHLB advances
1,025,832

 
1,248,070

 
835,000

 
2,389,797

 
2,252,615

Other borrowings
123,963

 
123,871

 
123,779

 
186,888

 
186,735

Subordinated debt
109,002

 
108,977

 
108,953

 
108,929

 
108,904

Accrued interest payable and other liabilities
93,406

 
66,455

 
80,846

 
70,051

 
64,465

Total liabilities
9,165,521


8,876,609


9,662,292


10,156,619


9,850,178

 
 
 
 
 
 
 
 
 
 
Preferred stock
217,471

 
217,471

 
217,471

 
217,471

 
217,471

Common stock
32,412

 
32,252

 
32,218

 
32,200

 
31,997

Additional paid in capital
436,713

 
434,314

 
431,205

 
428,796

 
424,099

Retained earnings
328,476

 
316,651

 
302,404

 
299,990

 
279,942

Accumulated other comprehensive loss
(14,919
)
 
(22,663
)
 
(20,253
)
 
(33,997
)
 
(26,188
)
Treasury stock, at cost
(21,780
)
 
(21,209
)
 
(8,233
)
 
(8,233
)
 
(8,233
)
Total shareholders' equity
978,373


956,816


954,812


936,227


919,088

Total liabilities & shareholders' equity
$
10,143,894


$
9,833,425


$
10,617,104


$
11,092,846


$
10,769,266



10

                                
                                            

 
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
 
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
 
(Dollars in thousands)
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
December 31,
 
March 31,
 
 
2019
 
2018
 
2018
 
 
Average Balance
Average Yield or Cost (%)
 
Average Balance
Average Yield or Cost (%)
 
Average Balance
Average Yield or Cost (%)
 
Assets
 
 
 
 
 
 
 
 
 
Interest earning deposits
$
85,263

2.52%
 
$
185,145

2.24%
 
$
184,033

1.53%
 
Investment securities
691,823

3.61%
 
697,474

3.60%
 
1,085,429

3.20%
 
Loans:
 
 
 
 
 
 
 
 
 
Commercial loans to mortgage companies
1,264,478

5.05%
 
1,409,197

5.03%
 
1,591,749

4.69%
 
Multi-family loans
3,253,792

3.79%
 
3,445,267

3.76%
 
3,637,929

3.71%
 
Commercial and industrial
1,921,139

5.14%
 
1,823,189

4.93%
 
1,653,655

4.34%
 
Non-owner occupied commercial real estate
1,169,333

4.47%
 
1,224,750

4.40%
 
1,281,502

4.18%
 
All other loans
812,043

4.87%
 
660,007

4.50%
 
330,100

4.10%
 
Total loans
8,420,785

4.48%
 
8,562,410

4.37%
 
8,494,935

4.10%
 
Other interest-earning assets
80,542

5.98%
 
73,091

9.41%
 
116,823

5.79%
 
Total interest earning assets
9,278,413

4.41%
 
9,518,120

4.31%
 
9,881,220

3.97%
 
Non-interest earning assets
481,116

 
 
429,247

 
 
394,487

 
 
Total assets
$
9,759,529

 
 
$
9,947,367

 
 
$
10,275,707

 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
Total interest bearing deposits (1)
$
5,893,024

2.15%
 
$
6,650,598

2.03%
 
$
5,812,055

1.38%
 
Borrowings
1,432,685

2.98%
 
983,540

3.13%
 
2,182,463

2.25%
 
Total interest bearing liabilities
7,325,709

2.31%
 
7,634,138

2.17%
 
7,994,518

1.62%
 
Non-interest bearing deposits (1)
1,360,815

 
 
1,261,330

 
 
1,278,947

 
 
Total deposits & borrowings
8,686,524

1.95%
 
8,895,468

1.86%
 
9,273,465

1.39%
 
Other non-interest bearing liabilities
104,401

 
 
89,202

 
 
75,307

 
 
Total liabilities
8,790,925

 
 
8,984,670

 
 
9,348,772

 
 
Common equity
751,133

 
 
745,226

 
 
709,464

 
 
Preferred stock
217,471

 
 
217,471

 
 
217,471

 
 
Shareholders' equity
968,604

 
 
962,697

 
 
926,935

 
 
Total liabilities and shareholders' equity
$
9,759,529

 
 
$
9,947,367

 
 
$
10,275,707

 
 
 
 
 
 
 
 
 
 
 
 
Net interest margin
 
2.59%
 
 
2.57%
 
 
2.66%
 
Net interest margin tax equivalent (2)
 
2.59%
 
 
2.57%
 
 
2.67%
 
 
 
 
 
 
 
 
 
 
 
(1) Total costs of deposits (including interest bearing and non-interest bearing) were 1.75%, 1.71% and 1.13% for the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, respectively.
 
 
(2) Non-GAAP measure. A detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document.



11

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
SEGMENT REPORTING - UNAUDITED
(Dollars in thousands, except per share amounts)
The following tables present Customers' business segment results for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31, 2019
 
Three Months Ended March 31, 2018
 
Customers Bank Business Banking
 
BankMobile
 
Consolidated
 
Customers Bank Business Banking
 
BankMobile
 
Consolidated
Interest income (1)
$
92,871

 
$
8,204

 
$
101,075

 
$
92,554

 
$
4,410

 
$
96,964

Interest expense
41,605

 
166

 
41,771

 
31,917

 
16

 
31,933

Net interest income
51,266

 
8,038

 
59,304


60,637


4,394


65,031

Provision for loan losses
2,976

 
1,791

 
4,767

 
1,874

 
243

 
2,117

Non-interest income
7,577

 
12,141

 
19,718

 
8,439

 
12,471

 
20,910

Non-interest expense
35,384

 
18,600

 
53,984

 
34,331

 
17,949

 
52,280

Income (loss) before income tax expense (benefit)
20,483

 
(212
)
 
20,271


32,871


(1,327
)
 
31,544

Income tax expense (benefit)
4,880

 
(49
)
 
4,831

 
7,728

 
(326
)
 
7,402

Net income (loss)
15,603

 
(163
)
 
15,440


25,143


(1,001
)
 
24,142

Preferred stock dividends
3,615

 
—

 
3,615

 
3,615

 
—

 
3,615

Net income (loss) available to common shareholders
$
11,988

 
$
(163
)
 
$
11,825


$
21,528


$
(1,001
)
 
$
20,527

 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per common share
$
0.39

 
$
(0.01
)
 
$
0.38

 
$
0.69

 
$
(0.03
)
 
$
0.65

Diluted earnings (loss) per common share
$
0.38

 
$
(0.01
)
 
$
0.38

 
$
0.67

 
$
(0.03
)
 
$
0.64

As of March 31, 2019 and 2018
 
 
 
 
 
 
 
 
 
 
 
Goodwill and other intangibles
$
3,629

 
$
12,544

 
$
16,173

 
$
3,630

 
$
13,847

 
$
17,477

Total assets
$
9,916,308

 
$
227,586

 
$
10,143,894

 
$
10,690,479

 
$
78,787

 
$
10,769,266

Total deposits
$
6,798,562

 
$
626,756

 
$
7,425,318

 
$
6,418,810

 
$
623,649

 
$
7,042,459

Total non-deposit liabilities
$
1,719,469

 
$
20,734

 
$
1,740,203

 
$
2,759,156

 
$
48,563

 
$
2,807,719

 
 
 
 
 
 
 
 
 
 
 
 
(1) Amounts reported include funds transfer pricing of $5.6 million and $4.4 million for the three months ended March 31, 2019 and 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of low/no cost deposits.
 
 
 
 
 
 
 
 
 
 
 
 


12

                                
                                            

The following tables present Customers' business segment results for the quarter ended March 31, 2019 and the preceding four quarters:
Customers Bank Business Banking:
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
Interest income (1)
 
$
92,871

 
$
98,129

 
$
106,156

 
$
104,110

 
$
92,554

Interest expense
 
41,605

 
41,592

 
45,982

 
40,182

 
31,917

Net interest income
 
51,266


56,537


60,174


63,928


60,637

Provision for loan losses
 
2,976

 
(200
)
 
2,502

 
(1,247
)
 
1,874

Non-interest income (loss)
 
7,577

 
9,352

 
(7,756
)
 
7,465

 
8,439

Non-interest expense
 
35,384

 
38,778

 
36,115

 
37,721

 
34,331

Income before income tax expense
 
20,483


27,311


13,801


34,919


32,871

Income tax expense
 
4,880

 
6,175

 
1,930

 
7,910

 
7,728

Net income
 
15,603


21,136


11,871


27,009


25,143

Preferred stock dividends
 
3,615

 
3,615

 
3,615

 
3,615

 
3,615

Net income available to common shareholders
 
$
11,988


$
17,521


$
8,256


$
23,394


$
21,528

 
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share
 
$
0.39

 
$
0.55

 
$
0.26

 
$
0.74

 
$
0.69

Diluted earnings per common share
 
$
0.38

 
$
0.55

 
$
0.26

 
$
0.72

 
$
0.67

 
 
 
 
 
 
 
 
 
 
 
(1) Amounts reported include funds transfer pricing of $5.6 million, $3.8 million, $3.9 million, $3.5 million and $4.4 million for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of low/no cost deposits.


BankMobile:
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
Interest income (2)
 
$
8,204

 
$
5,174

 
$
3,889

 
$
3,529

 
$
4,410

Interest expense
 
166

 
187

 
62

 
135

 
16

Net interest income
 
8,038

 
4,987

 
3,827

 
3,394

 
4,394

Provision for loan losses
 
1,791

 
1,585

 
422

 
463

 
243

Non-interest income
 
12,141

 
10,525

 
9,840

 
8,662

 
12,471

Non-interest expense
 
18,600

 
18,267

 
20,989

 
16,029

 
17,949

Loss before income tax expense or benefit
 
(212
)
 
(4,340
)
 
(7,744
)
 
(4,436
)
 
(1,327
)
Income tax benefit
 
(49
)
 
(1,066
)
 
(1,902
)
 
(1,090
)
 
(326
)
Net loss available to common shareholders
 
$
(163
)
 
$
(3,274
)
 
$
(5,842
)
 
$
(3,346
)
 
$
(1,001
)
 
 
 
 
 
 
 
 
 
 
 
Basic loss per common share
 
$
(0.01
)

$
(0.10
)

$
(0.18
)

$
(0.11
)

$
(0.03
)
Diluted loss per common share
 
$
(0.01
)
 
$
(0.10
)
 
$
(0.18
)
 
$
(0.10
)
 
$
(0.03
)
 
 
 
 
 
 
 
 
 
 
 
(2) Amounts reported include funds transfer pricing of $5.6 million, $3.8 million, $3.9 million, $3.5 million and $4.4 million for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and March 31, 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of low/no cost deposits.


13

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN COMPOSITION - UNAUDITED
(Dollars in thousands)
 
 
 
 
 
 
 
 
 

March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
2019
 
2018
 
2018
 
2018
 
2018
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
Multi-family
$
3,212,312

 
$
3,285,297

 
$
3,504,540

 
$
3,542,770

 
$
3,645,374

Mortgage warehouse
1,535,343

 
1,461,810

 
1,574,731

 
1,987,306

 
1,931,320

Commercial & industrial
1,983,081

 
1,894,887

 
1,783,300

 
1,755,183

 
1,648,324

Commercial real estate non-owner occupied
1,107,336

 
1,125,106

 
1,157,849

 
1,155,998

 
1,195,903

Construction
53,372

 
56,491

 
95,250

 
88,141

 
81,102

Total commercial loans
7,891,444


7,823,591


8,115,670


8,529,398


8,502,023

 
 
 
 
 
 
 
 
 
 
Consumer:
 
 
 
 
 
 
 
 
 
Residential
626,668

 
568,068

 
511,236

 
494,265

 
226,501

Manufactured housing
77,778

 
79,731

 
82,589

 
85,328

 
87,687

Other consumer
153,153

 
74,035

 
51,210

 
3,874

 
3,570

Total consumer loans
857,599


721,834

 
645,035


583,467


317,758

Deferred (fees)/costs and unamortized (discounts)/premiums, net
(3,197
)
 
(424
)
 
(3,045
)
 
642

 
(700
)
Total loans
$
8,745,846


$
8,545,001

 
$
8,757,660


$
9,113,507


$
8,819,081


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
March 31,
 
December 31,
 
September 30,
 
June 30,
 
March 31,
 
2019
 
2018
 
2018
 
2018
 
2018
 
 
 
 
 
 
 
 
 
 
Demand, non-interest bearing
$
1,372,358

 
$
1,122,171

 
$
1,338,167

 
$
1,090,744

 
$
1,260,853

Demand, interest bearing
811,490

 
803,948

 
833,176

 
623,343

 
510,418

Savings
417,346

 
384,545

 
275,825

 
38,457

 
36,584

Money market
3,265,823

 
3,097,391

 
3,673,065

 
3,471,249

 
3,345,573

Time deposits
1,558,301

 
1,734,181

 
2,393,481

 
2,072,161

 
1,889,031

Total deposits
$
7,425,318

 
$
7,142,236

 
$
8,513,714

 
$
7,295,954

 
$
7,042,459



14

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of March 31, 2019
As of December 31, 2018
As of March 31, 2018
 
Total Loans
Non Accrual /NPLs
Total Credit Reserves
NPLs / Total Loans
Total Reserves to Total NPLs
Total Loans
Non Accrual /NPLs
Total Credit Reserves
NPLs / Total Loans
Total Reserves to Total NPLs
Total Loans
Non Accrual /NPLs
Total Credit Reserves
NPLs / Total Loans
Total Reserves to Total NPLs
Loan Type
Originated Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-family
$
3,209,975

$
1,997

$
10,630

0.06
%
532.30
%
$
3,282,903

$
1,155

$
11,524

0.04
%
997.75
%
$
3,642,808

$
—

$
12,545

—
%
—
%
Commercial & Industrial (1)
1,967,230

12,933

15,734

0.66
%
121.66
%
1,874,779

18,543

14,866

0.99
%
80.17
%
1,618,845

15,299

14,353

0.95
%
93.82
%
Commercial Real Estate Non-Owner Occupied
1,095,395

—

4,001

—
%
—
%
1,111,903

—

4,093

—
%
—
%
1,176,949

—

4,444

—
%
—
%
Residential
110,805

2,035

2,091

1.84
%
102.75
%
107,070

1,999

2,013

1.87
%
100.70
%
107,920

1,767

2,111

1.64
%
119.47
%
Construction
53,372

—

584

—
%
—
%
56,491

—

624

—
%
—
%
81,102

—

921

—
%
—
%
Other Consumer
60,540

—

3,425

—
%
—
%
42,596

—

2,371

—
%
—
%
1,339

—

101

—
%
—
%
Total Originated Loans (2)
6,497,317

16,965

36,465

0.26
%
214.94
%
6,475,742

21,697

35,491

0.34
%
163.58
%
6,628,963

17,066

34,475

0.26
%
202.01
%
Loans Acquired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bank Acquisitions
118,598

3,880

3,066

3.27
%
79.02
%
125,718

4,104

3,224

3.26
%
78.56
%
141,343

4,146

4,848

2.93
%
116.93
%
Loan Purchases
651,331

1,924

4,675

0.30
%
242.98
%
537,038

1,693

1,745

0.32
%
103.07
%
173,960

1,979

803

1.14
%
40.58
%
Total Acquired Loans
769,929

5,804

7,741

0.75
%
133.37
%
662,756

5,797

4,969

0.87
%
85.72
%
315,303

6,125

5,651

1.94
%
92.26
%
Deferred (fees) costs and unamortized (discounts) premiums, net
(3,197
)
—

—

—
%
—
%
(424
)
—

—

—
%
—
%
(700
)
—

—

—
%
—
%
Loans Receivable
7,264,049

22,769

44,206

0.31
%
194.15
%
7,138,074

27,494

40,460

0.39
%
147.16
%
6,943,566

23,191

40,126

0.33
%
173.02
%
Loans Receivable, Mortgage Warehouse, at Fair Value
1,480,195

—

—

—
%
—
%
1,405,420

—

—

—
%
—
%
1,874,853

—

—

—
%
—
%
Total Loans Held for Sale
1,602

—

—

—
%
—
%
1,507

—

—

—
%
—
%
662

—

—

—
%
—
%
Total Portfolio
$
8,745,846

$
22,769

$
44,206

0.26
%
194.15
%
$
8,545,001

$
27,494

$
40,460

0.32
%
147.16
%
$
8,819,081

$
23,191

$
40,126

0.26
%
173.02
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Commercial & industrial loans, including owner occupied commercial real estate loans.
(2) Does not include loans receivable, mortgage warehouse, at fair value.

15

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
Q1
 
Q4

Q3

Q2
 
Q1

2019
 
2018
 
2018
 
2018
 
2018
Originated Loans
 
 
 
 
 
 
 
 
 
Multi-family
$
541

 
$
—

 
$
—

 
$
—

 
$
—

Commercial & Industrial (1)
(38
)
 
1,490

 
86

 
140

 
54

Commercial Real Estate Non-Owner Occupied
—

 
—

 
—

 
—

 
—

Residential
37

 
35

 
—

 
42

 
—

Other Consumer
667

 
664

 
434

 
459

 
254

Total Net Charge-offs (Recoveries) from Originated Loans
1,207

 
2,189

 
520

 
641

 
308

Loans Acquired
 
 
 
 
 
 
 
 
 
Bank Acquisitions
(185
)
 
(35
)
 
(49
)
 
(214
)
 
325

Loan Purchases
38

 
—

 
—

 
—

 
—

Total Net Charge-offs (Recoveries) from Acquired Loans
(147
)
 
(35
)
 
(49
)
 
(214
)
 
325

Total Net Charge-offs from Loans Held for Investment
$
1,060

 
$
2,154


$
471


$
427

 
$
633

 
 
 
 
 
 
 
 
 
 
(1) Commercial & industrial loans, including owner occupied commercial real estate.
            

            

16

                                
                                            


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED
Customers believes that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our results of operations and financial condition relative to other financial institutions. Presentation of these non-GAAP financial measures is consistent with how Customers evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in Customers' industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our financial results, which we believe enhance an overall understanding of our performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.
The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.
Core Earnings - Customers Bancorp
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
(dollars in thousands except per share data)
USD
Per share
 
USD
Per share
 
USD
Per share
 
USD
Per share
 
USD
Per share
GAAP net income to common shareholders
$
11,825

$
0.38

 
$
14,247

$
0.44

 
$
2,414

$
0.07

 
$
20,048

$
0.62

 
$
20,527

$
0.64

Reconciling items (after tax):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Executive severance expense
—

—

 
1,421

0.04

 
—

—

 
—

—

 
—

—

Merger and acquisition related expenses
—

—

 
355

0.01

 
2,222

0.07

 
655

0.02

 
80

—

Losses on sale of multi-family loans
—

—

 
868

0.03

 
—

—

 
—

—

 
—

—

(Gains) losses on investment securities
(2
)
—

 
101

—

 
15,417

0.48

 
138

—

 
(10
)
—

Core earnings
$
11,823

$
0.38

 
$
16,992

$
0.53

 
$
20,053

$
0.62

 
$
20,841

$
0.64

 
$
20,597

$
0.64

 
 
 
 
 
 
Core Return on Average Assets - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP net income
 
$
15,440

 
$
17,862

 
$
6,029

 
$
23,663

 
$
24,142

Reconciling items (after tax):
 
 
 
 
 
 
 
 
 
 
Executive severance expense
 
—

 
1,421

 
—

 
—

 
—

Merger and acquisition related expenses
 
—

 
355

 
2,222

 
655

 
80

Losses on sale of multi-family loans
 
—

 
868

 
—

 
—

 
—

(Gains) losses on investment securities
 
(2
)
 
101

 
15,417

 
138

 
(10
)
Core net income
 
$
15,438

 
$
20,607

 
$
23,668

 
$
24,456

 
$
24,212

 
 
 
 
 
 
 
 
 
 
 
Average total assets
 
$
9,759,529

 
$
9,947,367

 
$
10,728,339

 
$
10,721,190

 
$
10,275,707

 
 
 
 
 
 
 
 
 
 
 
Core return on average assets
 
0.64
%
 
0.82
%
 
0.88
%
 
0.91
%
 
0.96
%

17

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core Net Income and Core ROAA - Pre-Tax Pre-Provision -
Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP net income
 
$
15,440

 
$
17,862

 
$
6,029

 
$
23,663

 
$
24,142

Reconciling items:
 
 
 
 
 
 
 
 
 
 
Income tax expense
 
4,831

 
5,109

 
28

 
6,820

 
7,402

Provision for loan losses
 
4,767

 
1,385

 
2,924

 
(784
)
 
2,117

Executive severance expense
 
—

 
1,869

 
—

 
—

 
—

Merger and acquisition related expenses
 
—

 
470

 
2,945

 
869

 
106

Losses on sale of multi-family loans
 
—

 
1,161

 
—

 
—

 
—

(Gains) losses on investment securities
 
(2
)
 
101

 
19,895

 
84

 
(10
)
Core net income - pre-tax pre-provision
 
$
25,036

 
$
27,957

 
$
31,821

 
$
30,652

 
$
33,757

 
 
 
 
 
 
 
 
 
 
 
Average total assets
 
$
9,759,529

 
$
9,947,367

 
$
10,728,339

 
$
10,721,190

 
$
10,275,707

 
 
 
 
 
 
 
 
 
 
 
Core ROAA - pre-tax pre-provision
 
1.04
%
 
1.12
%
 
1.18
%
 
1.15
%
 
1.33
%

Core Return on Average Common Equity - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP net income to common shareholders
 
$
11,825

 
$
14,247

 
$
2,414

 
$
20,048

 
$
20,527

Reconciling items (after tax):
 
 
 
 
 
 
 
 
 
 
Executive severance expense
 
—

 
1,421

 
—

 
—

 
—

Merger and acquisition related expenses
 
—

 
355

 
2,222

 
655

 
80

Losses on sale of multi-family loans
 
—

 
868

 
—

 
—

 
—

(Gains) losses on investment securities
 
(2
)
 
101

 
15,417

 
138

 
(10
)
Core earnings
 
$
11,823

 
$
16,992

 
$
20,053

 
$
20,841

 
$
20,597

 
 
 
 
 
 
 
 
 
 
 
Average total common shareholders' equity
 
$
751,133

 
$
745,226

 
$
732,302

 
$
710,549

 
$
709,464

 
 
 
 
 
 
 
 
 
 
 
Core return on average common equity
 
6.38
%
 
9.05
%
 
10.86
%
 
11.76
%
 
11.77
%


18

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core ROCE - Pre-Tax Pre-Provision - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP net income to common shareholders
 
$
11,825

 
$
14,247

 
$
2,414

 
$
20,048

 
$
20,527

Reconciling items:
 
 
 
 
 
 
 
 
 
 
Income tax expense
 
4,831

 
5,109

 
28

 
6,820

 
7,402

Provision for loan losses
 
4,767

 
1,385

 
2,924

 
(784
)
 
2,117

Executive severance expense
 
—

 
1,869

 
—

 
—

 
—

Merger and acquisition related expenses
 
—

 
470

 
2,945

 
869

 
106

Losses on sale of multi-family loans
 
—

 
1,161

 
—

 
—

 
—

(Gains) losses on investment securities
 
(2
)
 
101

 
19,895

 
84

 
(10
)
Pre-tax pre-provision core net income available to common shareholders
 
21,421

 
24,342

 
28,206

 
27,037

 
30,142

 
 
 
 
 
 
 
 
 
 
 
Average total common shareholders' equity
 
$
751,133

 
$
745,226

 
$
732,302

 
$
710,549

 
$
709,464

 
 
 
 
 
 
 
 
 
 
 
Core ROCE - pre-tax pre-provision
 
11.57
%
 
12.96
%
 
15.28
%
 
15.26
%
 
17.23
%

Net Interest Margin, Tax Equivalent - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP net interest income
 
$
59,304

 
$
61,524

 
$
64,001

 
$
67,322

 
$
65,031

Tax-equivalent adjustment
 
181

 
171

 
172

 
171

 
171

Net interest income tax equivalent
 
$
59,485

 
$
61,695

 
$
64,173

 
$
67,493

 
$
65,202

 
 
 
 
 
 
 
 
 
 
 
Average total interest earning assets
 
$
9,278,413

 
$
9,518,120

 
$
10,318,943

 
$
10,329,530

 
$
9,881,220

 
 
 
 
 
 
 
 
 
 
 
Net interest margin, tax equivalent
 
2.59
%
 
2.57
%
 
2.47
%
 
2.62
%
 
2.67
%
 
 
 
 
 
 
 
 
 
 
 

19

                                
                                            

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

Core Efficiency Ratio - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP net interest income
 
$
59,304

 
$
61,524

 
$
64,001

 
$
67,322

 
$
65,031

 
 
 
 
 
 
 
 
 
 
 
GAAP non-interest income
 
$
19,718

 
$
19,877

 
$
2,084

 
$
16,127

 
$
20,910

(Gains) losses on investment securities
 
(2
)
 
101

 
19,895

 
84

 
(10
)
Losses on sale of multi-family loans
 
—

 
1,161

 
—

 
—

 
—

Core non-interest income
 
19,716

 
21,139

 
21,979

 
16,211

 
20,900

Core revenue
 
$
79,020

 
$
82,663

 
$
85,980

 
$
83,533

 
$
85,931

 
 
 
 
 
 
 
 
 
 
 
GAAP non-interest expense
 
$
53,984

 
$
57,045

 
$
57,104

 
$
53,750

 
$
52,280

Executive severance expense
 
—


(1,869
)

—


—


—

Merger and acquisition related expenses
 
—


(470
)

(2,945
)

(869
)

(106
)
Core non-interest expense
 
$
53,984

 
$
54,706

 
$
54,159

 
$
52,881

 
$
52,174

 
 
 
 
 
 
 
 
 
 
 
Core efficiency ratio (1)
 
68.32
%

66.18
%
 
62.99
%
 
63.31
%
 
60.72
%
 
 
 
 
 
 
 
 
 
 
 
(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.

Tangible Common Equity to Tangible Assets - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP - Total shareholders' equity
 
$
978,373

 
$
956,816

 
$
954,812

 
$
936,227

 
$
919,088

Reconciling items:
 
 
 
 
 
 
 
 
 
 
   Preferred stock
 
(217,471
)
 
(217,471
)
 
(217,471
)
 
(217,471
)
 
(217,471
)
   Goodwill and other intangibles
 
(16,173
)
 
(16,499
)
 
(16,825
)
 
(17,150
)
 
(17,477
)
Tangible common equity
 
$
744,729

 
$
722,846

 
$
720,516

 
$
701,606

 
$
684,140

 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
10,143,894

 
$
9,833,425

 
$
10,617,104

 
$
11,092,846

 
$
10,769,266

Reconciling items:
 
 
 
 
 
 
 
 
 
 
Goodwill and other intangibles
 
(16,173
)
 
(16,499
)
 
(16,825
)
 
(17,150
)
 
(17,477
)
Tangible assets
 
$
10,127,721

 
$
9,816,926

 
$
10,600,279

 
$
11,075,696

 
$
10,751,789

 
 
 
 
 
 
 
 
 
 
 
Tangible common equity to tangible assets
 
7.35
%

7.36
%
 
6.80
%
 
6.33
%
 
6.36
%
 
 
 
 
 
 
 
 
 
 
 



20

                                
                                            

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

Tangible Book Value per Common Share - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
GAAP - Total shareholders' equity
 
$
978,373

 
$
956,816

 
$
954,812

 
$
936,227

 
$
919,088

Reconciling Items:
 
 
 
 
 
 
 
 
 
 
   Preferred stock
 
(217,471
)
 
(217,471
)
 
(217,471
)
 
(217,471
)
 
(217,471
)
   Goodwill and other intangibles
 
(16,173
)
 
(16,499
)
 
(16,825
)
 
(17,150
)
 
(17,477
)
Tangible common equity
 
$
744,729

 
$
722,846

 
$
720,516

 
$
701,606

 
$
684,140

 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
 
31,131,247

 
31,003,028

 
31,687,340

 
31,669,643

 
31,466,271

 
 
 
 
 
 
 
 
 
 
 
Tangible book value per common share
 
$
23.92

 
$
23.32

 
$
22.74

 
$
22.15

 
$
21.74

 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tangible Book Value per Common Share - CAGR - Customers Bancorp
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands except per share data)
Q1 2019
 
Q4 2018
 
Q4 2017
 
Q4 2016
 
Q4 2015
 
Q4 2014
 
Q4 2013
GAAP - Total shareholders' equity
$
978,373

 
$
956,816

 
$
920,964

 
$
855,872

 
$
553,902

 
$
443,145

 
$
386,623

Reconciling Items:
 
 
 
 
 
 
 
 
 
 
 
 
 
   Preferred stock
(217,471
)
 
(217,471
)
 
(217,471
)
 
(217,471
)
 
(55,569
)
 
—

 
—

   Goodwill and other intangibles
(16,173
)
 
(16,499
)
 
(16,295
)
 
(17,621
)
 
(3,651
)
 
(3,664
)
 
(3,676
)
Tangible common equity
$
744,729

 
$
722,846

 
$
687,198

 
$
620,780

 
$
494,682

 
$
439,481

 
$
382,947

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding
31,131,247

 
31,003,028

 
31,382,503

 
30,289,917

 
26,901,801

 
26,745,529

 
26,646,566

 
 
 
 
 
 
 
 
 
 
 
 
 

Tangible book value per common share
$
23.92

 
$
23.32

 
$
21.90

 
$
20.49

 
$
18.39

 
$
16.43

 
$
14.37

CAGR
10.19
%
 
 
 
 
 
 
 
 
 
 
 
 


21

                                
                                            

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Core Earnings - Customers Bank Business Banking Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
(dollars in thousands except per share data)
USD
Per share
 
USD
Per share
 
USD
Per share
 
USD
Per share
 
USD
Per share
GAAP net income to common shareholders
$
11,988

$
0.38

 
$
17,521

$
0.55

 
$
8,256

$
0.26

 
$
23,394

$
0.72

 
$
21,528

$
0.67

Reconciling items (after tax):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Executive severance expense
—

—

 
1,421

0.04

 
—

—

 
—

—

 
—

—

Losses on sale of multi-family loans
—

—

 
868

0.03

 
—

—

 
—

—

 
—

—

(Gains) losses on investment securities
(2
)
—

 
101

—

 
15,417

0.48

 
138

—

 
(10
)
—

Core earnings
$
11,986

$
0.38

 
$
19,911

$
0.62

 
$
23,673

$
0.73

 
$
23,532

$
0.73

 
$
21,518

$
0.67

 
 
 
 
 
 
 
 
 
 
Core Loss - BankMobile Segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1 2019
 
Q4 2018
 
Q3 2018
 
Q2 2018
 
Q1 2018
(dollars in thousands except per share data)
USD
Per share
 
USD
Per share
 
USD
Per share
 
USD
Per share
 
USD
Per share
GAAP net loss to common shareholders
$
(163
)
$
(0.01
)
 
$
(3,274
)
$
(0.10
)
 
$
(5,842
)
$
(0.18
)
 
$
(3,346
)
$
(0.10
)
 
$
(1,001
)
$
(0.03
)
Reconciling items (after tax):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merger and acquisition related expenses
—

—

 
355

0.01

 
2,222

0.07

 
655

0.02

 
80

—

Core loss
$
(163
)
$
(0.01
)
 
$
(2,919
)
$
(0.09
)
 
$
(3,620
)
$
(0.11
)
 
$
(2,691
)
$
(0.08
)
 
$
(921
)
$
(0.03
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

22