EX-99.1 2 q222pressreleasenew.htm EX-99.1 Document

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

Contact:
David W. Patti, Communications Director 610-451-9452
Customers Bancorp Reports Results for Second Quarter 2022

Second Quarter 2022 Results
EarningsEarnings Per ShareReturn on AssetsReturn on Common Equity
$56.5 million
$1.68
1.2%
18.2%
Net Income
Diluted Earnings Per Share
ROAA
ROCE
$59.4 million
$1.77
1.2%
19.1%
Core Earnings*
Core Earnings Per Diluted Share*
Core ROAA*
Core ROCE*
$46.3 million
$1.38
2.1%
33.4%
Core Earnings, excluding PPP*
Core Earnings Per Diluted Share, excluding PPP*
Pre-tax and Pre-provision Adjusted ROAA*Pre-tax and Pre-provision Adjusted ROCE*

Second Quarter 2022 Highlights
•Q2 2022 net income available to common shareholders was $56.5 million, or $1.68 per diluted share, down 2.6% over Q2 2021.
•Q2 2022 adjusted pre-tax pre-provision net income* was $105.7 million, up 22% over Q2 2021.
•Q2 2022 core earnings* were $59.4 million, or $1.77 per diluted share, up 0.1% over Q2 2021.
•Q2 2022 core earnings excluding Paycheck Protection Program* ("PPP") were $46.3 million, or $1.38 per diluted share, up 32.3% over Q2 2021.
•Q2 2022 ROAA was 1.17% and Core ROAA* was 1.23%. Q2 2021 ROAA was 1.27% and Core ROAA* was 1.30%.
•Q2 2022 ROCE was 18.2% and Core ROCE* was 19.1%. Q2 2021 ROCE was 23.2% and Core ROCE* was 23.7%.
•Q2 2022 adjusted pre-tax pre-provision ROAA* was 2.11%. Q2 2021 adjusted pre-tax pre-provision ROAA* was 1.80%.

*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

•Year-over-year loan growth (excluding PPP loans and loans to mortgage companies*) was $4.4 billion or 56.6%, led by our low-risk variable rate specialty lending verticals.
•Year-over-year commercial and industrial (C&I) loans and leases growth, including specialty lending, of $3.3 billion (up 145.8%), multifamily loan growth of $515.4 million (up 34.4%), and consumer loan increase of $500.8 million (up 26.2%).
•Q2 2022 net interest margin, tax equivalent* increased 41 basis points from Q2 2021 to 3.39%. Q2 2022 net interest margin, tax equivalent, excluding the impact of PPP loans* increased 2 basis points from Q2 2021 to 3.32%.
•Year-over-year deposit growth was $3.1 billion, up 22.1%. Total demand deposits increased $4.4 billion, or 64.0% year-over-year. This increase included CBIT-related deposits with a balance of $2.1 billion at June 30, 2022, up $0.3 billion from March 31, 2022.
•Onboarded 90 new CBIT customers in Q2 2022, bringing total customers to 190.
•Q2 2022 efficiency ratio was 42.14% compared to 46.59% for Q2 2021. Q2 2022 core efficiency ratio* was 41.74% compared to 44.33% in Q2 2021.
•Q2 2022 provision for credit losses on loans and leases of $24.2 million was largely driven by strong loan growth as asset quality remains exceptional and compares to $15.3 million in Q1 2022 and $3.3 million in Q2 2021.
•Non-performing assets were $28.2 million, or 0.14% of total assets, at June 30, 2022 compared to $43.9 million, or 0.23% of total assets, at March 31, 2022 and $46.9 million, or 0.24% of total assets, at June 30, 2021. Allowance for credit losses on loans and leases equaled 558% of non-performing loans at June 30, 2022, compared to 333% at March 31, 2022 and 270% at June 30, 2021.
•Well positioned to support growth in 2022 and 2023 and expect to meet or beat projections of core earnings (excluding PPP)* between $4.75 - $5.00 in 2022 and over $6.00 in 2023.
CEO Commentary
West Reading, PA, July 27, 2022 - “We continued to perform well in the second quarter and are extremely pleased with our results for the first half of 2022,” remarked Customers Bancorp Chairman and CEO, Jay Sidhu. “Despite the challenging macro and geopolitical environment, we remain laser focused on executing on our strategy which has not changed. Our core earnings per share, excluding PPP* were up over 32.3% year-over-year. Core ROAA* was 1.23% and core ROCE* was 19.1%. We continue to responsibly deliver remarkable organic loan growth without sacrificing credit quality. Our core loans* increased $2.2 billion in Q2 2022, up 18.7% from Q1 2022, and well above our $500 million average quarterly target. Nearly all of this growth was in low-risk specialty lending verticals and was predominately floating rate as we manage overall asset sensitivity. Asset quality remains exceptional and credit reserves are strong. Continuing the momentum from record 2021 performance and strong results for the first half of 2022, our loan and deposit pipelines remain robust, a testament to our customer centric business model supported by best-in-class service and technology. We remain very excited and optimistic about our future,” Mr. Jay Sidhu continued.
2

Financial Highlights
At or Three Months EndedIncrease (Decrease)Six Months EndedIncrease (Decrease)
(Dollars in thousands, except per share data and stock price data)
June 30, 2022June 30, 2021June 30, 2022June 30, 2021
Profitability Metrics:
Net income available for common shareholders$56,519 $58,042 $(1,523)(2.6)%$131,415 $91,246 $40,169 44.0 %
Diluted earnings per share$1.68 $1.72 $(0.04)(2.3)%$3.87 $2.74 $1.13 41.2 %
Core earnings*$59,367 $59,303 $64 0.1 %$134,777 $129,611 $5,166 4.0 %
Core earnings per share*$1.77 $1.76 $0.01 0.6 %$3.97 $3.89 $0.08 2.1 %
Core earnings, excluding PPP*$46,301 $34,991 $11,310 32.3 %$96,998 $80,220 $16,778 20.9 %
Core earnings per share, excluding PPP*$1.38 $1.04 $0.34 32.7 %$2.86 $2.41 $0.45 18.7 %
Return on average assets ("ROAA")1.17 %1.27 %(0.10)1.39 %1.04 %0.35 
Core ROAA*1.23 %1.30 %(0.07)1.43 %1.45 %(0.02)
Return on average common equity ("ROCE")18.21 %23.22 %(5.01)21.23 %19.15 %2.08 
Core ROCE*19.13 %23.72 %(4.59)21.77 %27.20 %(5.43)
Adjusted pre-tax pre-provision net income*$105,692 $86,467 $19,225 22.2 %$218,341 $173,236 $45,105 26.0 %
Net interest margin, tax equivalent*3.39 %2.98 %0.41 3.49 %2.99 %0.50 
Net interest margin, tax equivalent, excluding PPP loans*3.32 %3.30 %0.02 3.32 %3.14 %0.18 
Loan yield, excluding PPP*4.56 %4.36 %0.20 4.50 %4.32 %0.18 
Cost of deposits0.54 %0.47 %0.07 0.44 %0.50 %(0.06)
Efficiency ratio42.14 %46.59 %(4.45)40.76 %47.64 %(6.88)
Core efficiency ratio*41.74 %44.33 %(2.59)40.59 %42.76 %(2.17)
Balance Sheet Trends:
Total assets$20,251,996 $19,635,108 $616,888 3.1 %
Total assets, excluding PPP*$18,681,836 $13,330,052 $5,351,784 40.1 %
Total loans and leases$15,664,353 $16,967,022 $(1,302,669)(7.7)%
Total loans and leases, excluding PPP*$14,094,193 $10,661,966 $3,432,227 32.2 %
Non-interest bearing demand deposits$4,683,030 $2,699,869 $1,983,161 73.5 %
Total deposits$16,944,719 $13,873,939 $3,070,780 22.1 %
Capital Metrics:
Common Equity$1,215,596 $1,033,258 $182,338 17.6 %
Tangible Common Equity*$1,211,967 $1,029,405 $182,562 17.7 %
Tangible Common Equity to Tangible Assets*5.99 %5.24 %0.75 
Tangible Common Equity to Tangible Assets, excluding PPP*6.49 %7.72 %(1.23)
Tangible Book Value per common share*$37.35 $31.82 $5.53 17.4 %
Total risk based capital ratio (1)
12.6 %13.3 %(0.7)
(1) Total risk based capital ratio as of June 30, 2022 is an estimate.
*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.
3

Customers Bank Instant Token (CBITTM)
"Despite significant market volatility in the digital asset space during second quarter, we are very pleased with our progress to date. In Q2 2022, we onboarded 90 new CBIT-related customers to the Digital Bank, once again beating our internal target, and bringing total customers to 190. Our digital asset-related deposits stabilized in Q2 2022 and ended the quarter approximately$0.3 billion higher than Q1 2022. We continue to expect digital asset-related deposits to grow in 2022 as our pipelines remain strong, giving us an opportunity to further transform our deposits into a high quality, low-to-no cost, stable and growing deposit franchise. We believe our technology, compliance and customer service and support systems remain among the best in the country," commented Mr. Sam Sidhu, President and CEO of Customers Bank.
At June 30, 2022, $2.1 billion in core low-to-no cost demand deposits have been attracted to the Bank through this system.
Paycheck Protection Program (PPP)
We funded, either directly or indirectly, about 256,000 PPP loans totaling $5.2 billion in 2021, bringing total PPP loans funded to approximately 358,000 and $10.3 billion. We also earned close to $350 million of deferred origination fees from the SBA through the PPP loans, which is significantly accretive to our earnings and capital levels as these loans are forgiven by the government. In Q2 2022, we recognized $15 million of these fees in earnings, bringing total fees recognized to date to $307 million, resulting in approximately $43 million remaining to be recognized throughout 2022 and 2023. "As we've stated previously, it is difficult to predict the timing of PPP forgiveness. We continue to expect most of the fees to be recognized in 2022, with approximately two-thirds of the remaining fees to be recognized in the second half of this year," commented Customers Bancorp CFO, Carla Leibold.
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)June 30, 2022% of TotalMarch 31, 2022% of TotalJune 30, 2021% of Total
Commercial:
Commercial & industrial, including specialty lending$5,637,083 36.0 %$3,921,439 27.9 %$2,293,723 13.5 %
Multi-family2,012,920 12.9 1,705,027 12.1 1,497,485 8.8 
Loans to mortgage companies1,975,189 12.6 1,830,121 13.0 2,922,217 17.2 
Commercial real estate owner occupied710,577 4.5 701,893 5.0 653,649 3.9 
Loans receivable, PPP1,570,160 10.0 2,195,902 15.6 6,305,056 37.2 
Commercial real estate non-owner occupied1,152,869 7.4 1,140,311 8.1 1,206,646 7.1 
Construction195,687 1.2 161,024 1.1 179,198 1.1 
Total commercial loans and leases13,254,485 84.6 11,655,717 82.8 15,057,974 88.8 
Consumer:
Residential460,228 2.9 469,426 3.3 273,493 1.6 
Manufactured housing48,570 0.3 50,669 0.4 57,904 0.3 
Installment1,901,070 12.1 1,897,706 13.5 1,577,651 9.3 
Total consumer loans2,409,868 15.4 2,417,801 17.2 1,909,048 11.2 
Total loans and leases$15,664,353 100.0 %$14,073,518 100.0 %$16,967,022 100.0 %
4

C&I loans and leases, including specialty lending, increased $3.3 billion, or 145.8% year-over-year, to $5.6 billion. Practically all of the increases in outstanding balances were in the low-risk variable rate secured categories of Fund Finance and Lender Finance. Multi-family loans increased $515.4 million, or 34.4%, to $2.0 billion, consumer installment loans increased $323.4 million, or 20.5%, to $1.9 billion, residential loans increased $186.7 million, or 68.3%, to $460.2 million, commercial real estate owner occupied loans increased $56.9 million, or 8.7%, to $710.6 million and construction loans increased $16.5 million, or 9.2%, to $195.7 million. These increases in loans and leases were partially offset by a decrease in commercial real estate non-owner occupied loans of $53.8 million, or 4.5% year-over-year to $1.2 billion.
Allowance for Credit Losses on Loans and Leases
The following table presents allowance for credit losses on loans and leases information as of the dates and periods indicated:
At or Three Months EndedIncrease (Decrease)At or Three Months EndedIncrease (Decrease)
(Dollars in thousands)June 30, 2022March 31, 2022June 30, 2022June 30, 2021
Allowance for credit losses on loans and leases$156,530 $145,847 $10,683 $156,530 $125,436 $31,094 
Provision for credit losses on loans and leases24,164 15,269 8,895 24,164 3,291 20,873 
Net charge-offs (recoveries)13,481 7,226 6,255 13,481 6,591 6,890 
Annualized net charge-offs (recoveries) to average loans and leases0.36 %0.21 %0.36 %0.16 %
Coverage of credit loss reserves for loans and leases held for investment1.14 %1.18 %1.14 %0.89 %
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP*1.28 %1.44 %1.28 %1.61 %
*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.
Provision for Credit Losses
Three Months EndedIncrease (Decrease)
(Dollars in thousands)June 30, 2022March 31, 2022
Provision for credit losses on loans and leases$24,164 $15,269 $8,895 
Provision (benefit) for credit losses on unfunded commitments608 (109)717 
Provision (benefit) for credit losses on available for sale debt securities(317)728 (1,045)
Total provision for credit losses$24,455 $15,888 $8,567 
The provision for credit losses on loans and leases in Q2 2022 was $24.2 million, compared to $15.3 million in Q1 2022. The provision in Q2 2022 was primarily to support loan growth. The provision (benefit) for credit losses for available for sale investment securities in Q2 2022 was a benefit to provision of $0.3 million compared to provision expense of $0.7 million in Q1 2022.
5

Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands)June 30, 2022March 31, 2022Increase (Decrease)June 30, 2022June 30, 2021Increase (Decrease)
Non-performing assets ("NPAs"):
Nonaccrual / non-performing loans ("NPLs")$28,064 $43,778 $(15,714)$28,064 $46,465 $(18,401)
Non-performing assets28,150 43,864 (15,714)28,150 46,932 (18,782)
NPLs to total loans and leases (1)
0.18 %0.31 %0.18 %0.27 %
Reserves to NPLs (1)
557.76 %333.15 %557.76 %269.96 %
NPAs to total assets0.14 %0.23 %0.14 %0.24 %
Loans and leases risk ratings:
Commercial loans and leases (1)
Pass$9,355,846 $7,274,294 $2,081,552 $9,355,846 $5,381,909 $3,973,937 
Special Mention106,566 128,622 (22,056)106,566 268,130 (161,564)
Substandard343,175 301,141 42,034 343,175 247,595 95,580 
Total commercial loans and leases9,805,587 7,704,057 2,101,530 9,805,587 5,897,634 3,907,953 
Consumer loans
Performing2,392,852 2,399,860 (7,008)2,392,852 1,858,204 534,648 
Non-performing14,556 14,938 (382)14,556 16,304 (1,748)
Total consumer loans2,407,408 2,414,798 (7,390)2,407,408 1,874,508 532,900 
Loans and leases receivable$12,212,995 $10,118,855 $2,094,140 $12,212,995 $7,772,142 $4,440,853 
(1)    Excludes loan receivable, PPP, as PPP loans are fully guaranteed by the Small Business Administration.
Over the last decade, we have developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s C&I, loans to mortgage companies, specialty finance lines of business, and multi-family loans for example, are characterized by conservative underwriting standards and low loss rates. Because of this emphasis, the Bank’s credit quality to date has been healthy despite a highly adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, we employ a bottom-up data driven approach to analyze the commercial portfolio. Exposure to industry segments and CRE significantly impacted by COVID-19 initially is not substantial.
Total consumer installment loans were approximately 9% of total assets at June 30, 2022 and were supported by an allowance for credit losses of $111.2 million. At June 30, 2022, our consumer installment portfolio had the following characteristics: average FICO score of 729, average debt-to-income of 17.4% and average borrower income of $102 thousand.
Non-performing loans at June 30, 2022 were 0.18% of total loans and leases, compared to 0.31% at March 31, 2022 and 0.27% at June 30, 2021.

6

Deposits and Borrowings
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands)June 30, 2022% of TotalMarch 31, 2022% of TotalJune 30, 2021% of Total
Demand, non-interest bearing$4,683,030 27.6 %$4,594,428 28.0 %$2,699,869 19.5 %
Demand, interest bearing6,644,398 39.2 5,591,468 34.1 4,206,355 30.3 
Total demand deposits11,327,428 66.8 10,185,896 62.1 6,906,224 49.8 
Savings640,062 3.8 802,395 4.9 1,431,756 10.3 
Money market4,254,205 25.1 4,981,077 30.3 4,908,809 35.4 
Time deposits723,024 4.3 446,192 2.7 627,150 4.5 
Total deposits$16,944,719 100.0 %$16,415,560 100.0 %1$13,873,939 100.0 %
Total deposits increased $3.1 billion, or 22.1%, to $16.9 billion at June 30, 2022 as compared to a year ago. Total demand deposits increased $4.4 billion, or 64.0%, to $11.3 billion. Time deposits increased $95.9 million, or 15.3%, to $723.0 million. These increases were offset, in part, by decreases in savings deposits of $791.7 million, or 55.3%, to $640.1 million and money market deposits of $654.6 million, or 13.3%, to $4.3 billion. The total cost of deposits increased by 7 basis points to 0.54% in Q2 2022 from 0.47% in the prior year.
Other borrowings remained relatively unchanged at $123.5 million at June 30, 2022 compared to the prior year due to the issuance of the Customers Bancorp 2.875% senior notes in August 2021, offset by the pay off at maturity of the Customers Bancorp 3.95% senior notes in June 2022.
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
(Dollars in thousands except per share data)June 30, 2022March 31, 2022June 30, 2021
Customers Bancorp, Inc.
Common Equity$1,215,596 $1,239,612 $1,033,258 
Tangible Common Equity*1,211,967 1,235,934 1,029,405 
Tangible Common Equity to Tangible Assets*5.99 %6.45 %5.24 %
Tangible Common Equity to Tangible Assets, excluding PPP*6.49 %7.29 %7.72 %
Tangible Book Value per common share*$37.35 $37.50 $31.82 
Total risk based capital ratio (1)
12.6 %12.9 %13.3 %
(1) Total risk-based capital ratio as of June 30, 2022 is an estimate.
*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.
Customers Bancorp's tangible common equity* increased $182.3 million to $1.2 billion at June 30, 2022 compared to a year ago, as earnings of $340.3 million more than offset a negative impact to accumulated other comprehensive income ("AOCI") from increased unrealized losses on investment securities of $130.9 million (net of taxes) and share buyback of $55.5 million. Similarly, tangible book value per common share* increased to $37.35 at June 30, 2022 from $31.82 at June 30, 2021. Customers remains well capitalized by all regulatory measures.
At the Customers Bancorp level, the total risk based capital ratio (estimate) and tangible common equity to tangible assets ratio ("TCE ratio"), excluding PPP loans*, were 12.6% and 6.49%, respectively, at June 30, 2022. "We expect our TCE ratio to be at or above 7.5% within the next three to four quarters," stated Mr. Sam Sidhu.
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At June 30, 2022, estimated Tier 1 capital and total risk-based capital were 11.5% and 12.9%, respectively.
7

Key Profitability Trends
Net Interest Income
Net interest income totaled $164.9 million in Q2 2022, an increase of $0.2 million from Q1 2022, primarily due to increased net interest income earned by the core bank, including increased interest income on investment securities and core loans* of $5.1 million and $28.1 million, respectively, mostly due to higher average balances. This increase was offset in part by lower PPP interest income of $16.3 million resulting from reduced recognition of deferred fees of $14.7 million driven by lower loan forgiveness in Q2 2022 and by dividend income of $5.2 million primarily from an equity investment distribution in Q1 2022. In addition, higher expenses paid on deposits, FHLB advances and other borrowings of $12.7 million resulted mainly from higher interest rates during Q2 2022. Excluding PPP loans, average interest-earning assets increased $1.7 billion. Interest-earning asset growth was primarily driven by increases in C&I loans and leases and multi-family loans, offset in part by a decrease in interest earning deposits. Compared to Q1 2022, total loan yields decreased 13 basis points to 4.54% primarily due to higher PPP yields driven by deferred fee recognition and average balances in Q1 2022. Excluding PPP loans, the Q2 2022 total loan yield was 13 basis points higher than Q1 2022 reflecting increased interest rates and the variable rate nature of the loan portfolio.
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
Three Months EndedIncrease (Decrease)
(Dollars in thousands)June 30, 2022March 31, 2022
Interchange and card revenue$24 $76 $(52)
Deposit fees964 940 24 
Commercial lease income6,592 5,895 697 
Bank-owned life insurance 1,947 8,326 (6,379)
Mortgage warehouse transactional fees1,883 2,015 (132)
Gain (loss) on sale of SBA and other loans1,542 1,507 35 
Loan fees2,618 2,545 73 
Mortgage banking income (loss)173 481 (308)
Gain (loss) on sale of investment securities(3,029)(1,063)(1,966)
Unrealized gain (loss) on investment securities(203)(276)73 
Unrealized gain (loss) on derivatives821 964 (143)
Other(586)(212)(374)
Total non-interest income$12,746 $21,198 $(8,452)
Non-interest income totaled $12.7 million for Q2 2022, a decrease of $8.5 million compared to Q1 2022. The decrease was primarily due to $6.4 million of death benefits from bank-owned life insurance policies in Q1 2022 and higher realized losses from the sale of investment securities of $2.0 million in Q2 2022 compared to Q1 2022.
8

Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
Three Months EndedIncrease (Decrease)
(Dollars in thousands)June 30, 2022March 31, 2022
Salaries and employee benefits$25,334 $26,607 $(1,273)
Technology, communication and bank operations22,738 24,068 (1,330)
Professional services7,415 6,956 459 
Occupancy4,279 3,050 1,229 
Commercial lease depreciation5,552 4,942 610 
FDIC assessments, non-income taxes and regulatory fees1,619 2,383 (764)
Loan servicing4,341 2,371 1,970 
Loan workout179 (38)217 
Advertising and promotion353 315 38 
Other4,395 3,153 1,242 
Total non-interest expense$76,205 $73,807 $2,398 
The management of non-interest expenses remains a priority for us. However, this will not be at the expense of not making adequate investments with new technologies to support efficient and responsible growth.
Non-interest expenses totaled $76.2 million in Q2 2022, an increase of $2.4 million compared to Q1 2022. The increase was primarily attributable to $2.0 million in higher loan servicing costs for consumer loans, $0.9 million in one-time impairment charges included in occupancy primarily due to consolidation of five branches into other existing locations in Southeastern Pennsylvania, $0.7 million in higher provision for credit losses on unfunded commitments, $0.6 million in commercial lease depreciation due to growth in our leasing business and $0.5 million in professional fees primarily associated with the PPP loan forgiveness. These increases were offset in part by a $1.3 million decrease in technology, processing and deposit servicing-related expenses mostly due to lower deposit servicing and interchange maintenance fees and lower salaries and employee benefits of $1.3 million due to expense management initiatives.
Taxes
Income tax expense from continuing operations decreased by $0.4 million to $18.9 million in Q2 2022 from $19.3 million in Q1 2022 primarily due to a reduction in pre-tax income, partially offset by a decrease in excess tax benefits from restricted stock units that vested in Q1 2022. The effective tax rate from continuing operations for Q2 2022 was 24%, resulting in an effective tax rate of 22% for the six months ended June 30, 2022. Customers expects the full-year 2022 effective tax rate from continuing operations to be approximately 21% to 23%.
Outlook
“Looking ahead, we continue to project sustainable and responsible organic core growth and are very optimistic about the prospects of our company. We are focused on improving the quality of our balance sheet and deposit franchise and are not focused on growth just for the sake of growth. We continue to expect, on average, $500 million of quarterly loan growth and continued digital asset-related deposit growth by year-end 2022. Through a combination of revenue growth and prudent expense management we expect our efficiency ratio to be around 45% by early 2023. Customers Bancorp stock at the close of business on July 22, 2022 was trading at $38.02, only 1 times tangible book value* at June 30, 2022. We continue to expect to meet or beat projections of our core earnings (excluding PPP)* between $4.75 - $5.00 in 2022 and over $6.00 in 2023, two to three years ahead of our previous guidance of $6.00 by 2025/2026,” concluded Mr. Jay 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 is included at the end of this document.
9

Webcast
Date:            Thursday, July 28, 2022        
Time:            9:00 AM EDT
The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com/investor-relations/ and at the Customers Bancorp 2nd Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Communications Director, David Patti at dpatti@customersbank.com; questions may also be asked during the webcast through the webcast application.
The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is a bank holding company located in West Reading, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank, a full-service bank with $20.3 billion in assets at June 30, 2022. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking and lending services to small and medium-sized businesses, professionals, individuals and families. Services and products are available wherever permitted by law through mobile-first apps, online portals, and a network of offices and branches. Customers Bank provides blockchain-based digital payments via the Customers Bank Instant Token (CBITTM) which allows clients to make instant payments in U.S. dollars, 24 hours a day, 7 days a week, 365 days a year.
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: the impact of the ongoing pandemic on the U.S. economy and customer behavior, the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the continued success and acceptance of our blockchain payments system, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply, actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships, 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, 2021, 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
10

from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.
11

Q2 2022 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended June 30, 2022 and the preceding four quarters:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share data and stock price data)
Q2Q1Q4Q3Q2
Six Months Ended
June 30,
2022202220212021202120222021
GAAP Profitability Metrics:
Net income available to common shareholders
(from continuing and discontinued operations)
$56,519 $74,896 $98,647 $110,241 $58,042 $131,415 $91,246 
Per share amounts:
Earnings per share - basic
$1.73 $2.27 $3.02 $3.40 $1.80 $4.00 $2.84 
Earnings per share - diluted$1.68 $2.18 $2.87 $3.25 $1.72 $3.87 $2.74 
Book value per common share (1)
$37.46 $37.61 $37.32 $35.24 $31.94 $37.46 $31.94 
CUBI stock price (1)
$33.90 $52.14 $65.37 $43.02 $38.99 $33.90 $38.99 
CUBI stock price as % of book value (1)
90 %139 %175 %122 %122 %90 %122 %
Average shares outstanding - basic32,712,616 32,957,033 32,625,960 32,449,853 32,279,625 32,834,150 32,082,878 
Average shares outstanding - diluted33,579,013 34,327,065 34,320,327 33,868,553 33,741,468 33,950,973 33,294,075 
Shares outstanding (1)
32,449,486 32,957,847 32,913,267 32,537,976 32,353,256 32,449,486 32,353,256 
Return on average assets ("ROAA")1.17 %1.63 %2.08 %2.33 %1.27 %1.39 %1.04 %
Return on average common equity ("ROCE")18.21 %24.26 %33.18 %40.82 %23.22 %21.23 %19.15 %
Efficiency ratio42.14 %39.42 %38.70 %33.42 %46.59 %40.76 %47.64 %
Non-GAAP Profitability Metrics (2):
Core earnings$59,367 $75,410 $101,213 $113,876 $59,303 $134,777 $129,611 
Adjusted pre-tax pre-provision net income$105,692 $112,649 $130,595 $167,215 $86,467 $218,341 $173,236 
Per share amounts:
Core earnings per share - diluted$1.77 $2.20 $2.95 $3.36 $1.76 $3.97 $3.89 
Tangible book value per common share (1)
$37.35 $37.50 $37.21 $35.12 $31.82 $37.35 $31.82 
CUBI stock price as % of tangible book value (1)
91 %139 %176 %122 %123 %91 %123 %
Core ROAA1.23 %1.64 %2.13 %2.35 %1.30 %1.43 %1.45 %
Core ROCE19.13 %24.43 %34.04 %42.16 %23.72 %21.77 %27.20 %
Adjusted ROAA - pre-tax and pre-provision2.11 %2.39 %2.70 %3.36 %1.80 %2.25 %1.85 %
Adjusted ROCE - pre-tax and pre-provision33.37 %35.89 %43.25 %60.81 %33.27 %34.62 %34.95 %
Net interest margin, tax equivalent 3.39 %3.60 %4.14 %4.59 %2.98 %3.49 %2.99 %
Net interest margin, tax equivalent, excluding PPP loans3.32 %3.32 %3.12 %3.24 %3.30 %3.32 %3.14 %
Core efficiency ratio41.74 %39.47 %38.14 %30.36 %44.33 %40.59 %42.76 %
Asset Quality:
Net charge-offs $13,481 $7,226 $7,582 $7,104 $6,591 $20,707 $19,112 
Annualized net charge-offs to average total loans and leases0.36 %0.21 %0.21 %0.17 %0.16 %0.29 %0.24 %
Non-performing loans ("NPLs") to total loans and leases (1)
0.18 %0.31 %0.34 %0.34 %0.27 %0.18 %0.27 %
Reserves to NPLs (1)
557.76 %333.15 %277.72 %252.68 %269.96 %557.76 %269.96 %
Non-performing assets ("NPAs") to total assets0.14 %0.23 %0.25 %0.27 %0.24 %0.14 %0.24 %
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets11.47 %11.60 %11.83 %12.77 %12.40 %11.47 %12.40 %
Tier 1 capital to risk-weighted assets 11.47 %11.60 %11.83 %12.77 %12.40 %11.47 %12.40 %
Total capital to risk-weighted assets 12.92 %13.03 %13.11 %14.16 %13.77 %12.92 %13.77 %
Tier 1 capital to average assets (leverage ratio) 8.09 %8.21 %7.93 %8.66 %9.07 %8.09 %9.07 %
(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 Q2 2022 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 June 30, 2022, our regulatory capital ratios reflected 75%, or $46.2 million, benefit associated with the CECL transition provisions.

12

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)Six Months Ended
Q2Q1Q4Q3Q2June 30,
2022202220212021202120222021
Interest income:
Loans and leases$168,941 $157,175 $198,000 $233,097 $153,608 $326,116 $305,725 
Investment securities25,442 20,295 15,202 8,905 8,327 45,737 16,306 
Other1,951 6,006 835 849 946 7,957 1,965 
Total interest income196,334 183,476 214,037 242,851 162,881 379,810 323,996 
Interest expense:
Deposits22,781 13,712 15,415 15,915 15,653 36,493 31,311 
FHLB advances2,316 — 51 5 963 2,316 6,155 
Subordinated debt2,689 2,689 2,688 2,689 2,689 5,378 5,378 
FRB PPP liquidity facility, federal funds purchased and other borrowings3,696 2,376 2,189 4,350 4,819 6,072 9,664 
Total interest expense31,482 18,777 20,343 22,959 24,124 50,259 52,508 
Net interest income164,852 164,699 193,694 219,892 138,757 329,551 271,488 
Provision for credit losses23,847 15,997 13,890 13,164 3,291 39,844 372 
Net interest income after provision for credit losses141,005 148,702 179,804 206,728 135,466 289,707 271,116 
Non-interest income:
Interchange and card revenue24 76 84 83 84 100 169 
Deposit fees964 940 1,026 994 891 1,904 1,754 
Commercial lease income6,592 5,895 5,378 5,213 5,311 12,487 10,516 
Bank-owned life insurance 1,947 8,326 1,984 1,988 2,765 10,273 4,444 
Mortgage warehouse transactional fees1,883 2,015 2,262 3,100 3,265 3,898 7,512 
Gain (loss) on sale of SBA and other loans1,542 1,507 2,493 5,359 1,900 3,049 3,475 
Loan fees2,618 2,545 2,513 1,909 1,670 5,163 3,106 
Mortgage banking income (loss)173 481 262 425 386 654 849 
Gain (loss) on sale of investment securities(3,029)(1,063)(49)6,063 1,812 (4,092)25,378 
Unrealized gain (loss) on investment securities(203)(276)— — 1,746 (479)2,720 
Loss on sale of foreign subsidiaries— — — — (2,840)— (2,840)
Unrealized gain (loss) on derivatives821 964 586 524 (439)1,785 2,098 
Loss on cash flow hedge derivative terminations— — — — — — (24,467)
Other(586)(212)452 (72)271 (798)576 
Total non-interest income12,746 21,198 16,991 25,586 16,822 33,944 35,290 
Non-interest expense:
Salaries and employee benefits25,334 26,607 29,940 26,268 28,023 51,941 51,994 
Technology, communication and bank operations22,738 24,068 22,657 21,281 19,618 46,806 39,606 
Professional services7,415 6,956 7,058 6,871 6,882 14,371 12,759 
Occupancy4,279 3,050 4,336 2,704 2,482 7,329 5,103 
Commercial lease depreciation5,552 4,942 4,625 4,493 4,415 10,494 8,706 
FDIC assessments, non-income taxes and regulatory fees1,619 2,383 2,427 2,313 2,602 4,002 5,321 
Loan servicing4,341 2,371 4,361 4,265 1,700 6,712 2,137 
Merger and acquisition related expenses— — — — — — 418 
Loan workout179 (38)226 198 102 141 (159)
Advertising and promotion353 315 344 302 313 668 874 
Deposit relationship adjustment fees— — — 6,216 — — — 
Other4,395 3,153 5,574 5,098 4,686 7,548 5,991 
Total non-interest expense76,205 73,807 81,548 80,009 70,823 150,012 132,750 
Income before income tax expense77,546 96,093 115,247 152,305 81,465 173,639 173,656 
Income tax expense18,896 19,332 12,993 36,263 20,124 38,228 37,684 
Net income from continuing operations$58,650 $76,761 $102,254 $116,042 $61,341 $135,411 $135,972 
(continued)
13

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)Six Months Ended
Q2Q1Q4Q3Q2June 30,
2022202220212021202120222021
Loss from discontinued operations before income taxes$— $— $— $— $— $— $(20,354)
Income tax expense (benefit) from discontinued operations— — 1,585 — — — 17,682 
Net loss from discontinued operations— — (1,585)— — — (38,036)
Net income58,650 76,761 100,669 116,042 61,341 135,411 97,936 
Preferred stock dividends2,131 1,865 2,022 2,981 3,299 3,996 6,690 
Loss on redemption of preferred stock— — — 2,820 — — — 
Net income available to common shareholders$56,519 $74,896 $98,647 $110,241 $58,042 $131,415 $91,246 
Basic earnings per common share from continuing operations$1.73 $2.27 $3.07 $3.40 $1.80 $4.00 $4.03 
Basic earnings per common share1.73 2.27 3.02 3.40 1.80 4.00 2.84 
Diluted earnings per common share from continuing operations1.68 2.18 2.92 3.25 1.72 3.87 3.88 
Diluted earnings per common share 1.68 2.18 2.87 3.25 1.72 3.87 2.74 
14

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
June 30,March 31,December 31,September 30,June 30,
20222022202120212021
ASSETS
Cash and due from banks$66,703 $55,515 $35,238 $51,169 $36,837 
Interest earning deposits178,475 219,085 482,794 1,000,885 393,663 
Cash and cash equivalents245,178 274,600 518,032 1,052,054 430,500 
Investment securities, at fair value3,144,882 4,169,853 3,817,150 1,866,697 1,526,792 
Investment securities held to maturity495,039 — — — — 
Loans held for sale6,595 3,003 16,254 29,957 34,540 
Loans receivable, mortgage warehouse, at fair value1,874,603 1,755,758 2,284,325 2,557,624 2,855,284 
Loans receivable, PPP1,570,160 2,195,902 3,250,008 4,957,357 6,305,056 
Loans and leases receivable12,212,995 10,118,855 9,018,298 7,970,599 7,772,142 
Allowance for credit losses on loans and leases(156,530)(145,847)(137,804)(131,496)(125,436)
Total loans and leases receivable, net of allowance for credit losses on loans and leases15,501,228 13,924,668 14,414,827 15,354,084 16,807,046 
FHLB, Federal Reserve Bank, and other restricted stock74,626 54,553 64,584 57,184 39,895 
Accrued interest receivable98,727 94,669 92,239 93,514 90,009 
Bank premises and equipment, net6,755 8,233 8,890 9,944 10,391 
Bank-owned life insurance335,153 332,239 333,705 331,423 329,421 
Goodwill and other intangibles3,629 3,678 3,736 3,794 3,853 
Other assets340,184 298,212 305,611 310,271 362,661 
Total assets$20,251,996 $19,163,708 $19,575,028 $19,108,922 $19,635,108 
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand, non-interest bearing deposits$4,683,030 $4,594,428 $4,459,790 $4,954,331 $2,699,869 
Interest bearing deposits12,261,689 11,821,132 12,318,134 12,016,694 11,174,070 
Total deposits16,944,719 16,415,560 16,777,924 16,971,025 13,873,939 
Federal funds purchased770,000 700,000 75,000 — — 
FHLB advances635,000 — 700,000 — — 
Other borrowings123,450 223,230 223,086 223,151 124,240 
Subordinated debt181,812 181,742 181,673 181,603 181,534 
FRB PPP liquidity facility— — — — 3,865,865 
Accrued interest payable and other liabilities243,625 265,770 251,128 448,844 338,801 
Total liabilities18,898,606 17,786,302 18,208,811 17,824,623 18,384,379 
Preferred stock137,794 137,794 137,794 137,794 217,471 
Common stock34,922 34,882 34,722 33,818 33,634 
Additional paid in capital545,670 542,402 542,391 525,894 519,294 
Retained earnings837,147 780,628 705,732 607,085 496,844 
Accumulated other comprehensive income (loss), net(124,881)(62,548)(4,980)1,488 5,266 
Treasury stock, at cost(77,262)(55,752)(49,442)(21,780)(21,780)
Total shareholders' equity1,353,390 1,377,406 1,366,217 1,284,299 1,250,729 
Total liabilities and shareholders' equity$20,251,996 $19,163,708 $19,575,028 $19,108,922 $19,635,108 

15

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
June 30, 2022March 31, 2022June 30, 2021
Average Balance
Average Yield or Cost (%)
Average BalanceAverage Yield or Cost (%)Average BalanceAverage Yield or Cost (%)
Assets
Interest earning deposits $434,950 0.85%$826,240 0.16%$646,342 0.12%
Investment securities (1)
4,104,463 2.48%4,036,966 2.01%1,512,644 2.20%
Loans and leases:
Commercial loans to mortgage companies1,898,554 3.30%1,836,647 3.09%2,737,629 3.09%
Multi-family loans1,845,527 3.76%1,531,846 3.64%1,551,370 3.88%
Commercial & industrial loans and leases (2)
5,577,830 3.87%4,124,408 3.60%2,878,045 3.59%
Loans receivable, PPP1,863,429 4.43%2,641,318 5.66%6,133,184 2.69%
Non-owner occupied commercial real estate loans1,307,995 3.91%1,312,210 3.77%1,368,695 3.86%
Residential mortgages515,612 3.81%416,417 3.58%346,284 3.62%
Installment loans1,909,551 9.23%1,794,145 9.03%1,467,595 9.37%
Total loans and leases (3)
14,918,498 4.54%13,656,991 4.67%16,482,802 3.74%
Other interest-earning assets68,025 6.09%52,111 
NM(7)
57,208 5.32%
Total interest-earning assets19,525,936 4.03%18,572,308 4.00%18,698,996 3.49%
Non-interest-earning assets530,084 557,022 607,952 
Total assets $20,056,020 $19,129,330 $19,306,948 
Liabilities
Interest checking accounts6,409,617 0.85%5,769,372 0.54%3,503,242 0.76%
Money market deposit accounts4,704,767 0.64%4,880,051 0.39%4,859,614 0.47%
Other savings accounts695,176 0.44%880,113 0.36%1,456,777 0.57%
Certificates of deposit530,180 0.65%450,644 0.47%658,698 0.78%
Total interest-bearing deposits (4)
12,339,740 0.74%11,980,180 0.46%10,478,331 0.60%
Federal funds purchased642,747 0.89%88,611 0.33%71,703 0.07%
FRB PPP liquidity facility— —%— —%3,858,733 0.35%
Borrowings940,068 3.10%532,610 3.80%460,054 4.44%
Total interest-bearing liabilities13,922,555 0.91%12,601,401 0.60%14,868,821 0.65%
Non-interest-bearing deposits (4)
4,491,574 4,900,983 2,889,781 
Total deposits and borrowings18,414,129 0.69%17,502,384 0.43%17,758,602 0.54%
Other non-interest-bearing liabilities259,279 237,131 328,251 
Total liabilities 18,673,408 17,739,515 18,086,853 
Shareholders' equity1,382,612 1,389,815 1,220,095 
Total liabilities and shareholders' equity$20,056,020 $19,129,330 $19,306,948 
Interest spread3.35%3.57%2.95%
Net interest margin3.38%3.59%2.98%
Net interest margin tax equivalent (5)
3.39%3.60%2.98%
Net interest margin tax equivalent excl. PPP (6)
3.32%3.32%3.30%
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(4) Total costs of deposits (including interest bearing and non-interest bearing) were 0.54%, 0.33% and 0.47% for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively.
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(6) Non-GAAP tax-equivalent basis, as described in note (5) for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(7) Not meaningful.
16

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
Six Months Ended
June 30, 2022June 30, 2021
Average Balance
Average Yield
or Cost (%)		Average BalanceAverage Yield
or Cost (%)
Assets
Interest earning deposits $629,514 0.40%$910,362 0.11%
Investment securities (1)
4,070,901 2.25%1,435,529 2.27%
Loans and leases:
Commercial loans to mortgage companies1,867,772 3.20%2,928,802 3.09%
Multi-family loans1,689,553 3.71%1,619,891 3.84%
Commercial & industrial loans and leases (2)
4,855,134 3.76%2,863,268 3.78%
Loans receivable, PPP2,250,224 5.15%5,382,370 3.00%
Non-owner occupied commercial real estate loans1,310,091 3.84%1,358,871 3.86%
Residential mortgages466,288 3.71%359,815 3.71%
Installment loans1,852,167 9.13%1,396,126 9.22%
Total loans and leases (3)
14,291,229 4.60%15,909,143 3.88%
Other interest-earning assets60,113 
NM (7)
68,521 4.34%
Total interest-earning assets19,051,757 4.02%18,323,555 3.56%
Non-interest-earning assets543,479 594,936 
Total assets $19,595,236 $18,918,491 
Liabilities
Interest checking accounts$6,091,263 0.71%$3,099,725 0.80%
Money market deposit accounts4,791,925 0.51%4,648,942 0.51%
Other savings accounts787,134 0.39%1,435,681 0.63%
Certificates of deposit490,632 0.57%662,447 0.87%
Total interest-bearing deposits (4)
12,160,954 0.61%9,846,795 0.64%
Federal funds purchased367,210 0.82%44,171 0.07%
FRB PPP liquidity facility— —%3,899,996 0.35%
Borrowings737,464 3.35%805,853 3.61%
Total interest-bearing liabilities13,265,628 0.76%14,596,815 0.72%
Non-interest-bearing deposits (4)
4,695,148 2,855,019 
Total deposits and borrowings17,960,776 0.56%17,451,834 0.61%
Other non-interest-bearing liabilities248,266 288,246 
Total liabilities 18,209,042 17,740,080 
Shareholders' equity1,386,194 1,178,411 
Total liabilities and shareholders' equity$19,595,236 $18,918,491 
Interest spread3.45%2.96%
Net interest margin3.48%2.99%
Net interest margin tax equivalent (5)
3.49%2.99%
Net interest margin tax equivalent excl. PPP (6)
3.32%3.14%
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(4) Total costs of deposits (including interest bearing and non-interest bearing) were 0.44% and 0.50% for the six months ended June 30, 2022 and 2021, respectively.
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the six months ended June 30, 2022 and 2021, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(6) Non-GAAP tax-equivalent basis as described in note (5), for the six months ended June 30, 2022 and 2021, excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(7) Not meaningful.

17

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
June 30,March 31,December 31,September 30,June 30,
20222022202120212021
Commercial:
Commercial & industrial, including specialty lending$5,637,083 $3,921,439 $3,346,670 $2,604,367 $2,293,723 
Multi-family2,012,920 1,705,027 1,486,308 1,387,166 1,497,485 
Loans to mortgage companies1,975,189 1,830,121 2,362,438 2,626,483 2,922,217 
Commercial real estate owner occupied710,577 701,893 654,922 656,044 653,649 
Loans receivable, PPP1,570,160 2,195,902 3,250,008 4,957,357 6,305,056 
Commercial real estate non-owner occupied1,152,869 1,140,311 1,121,238 1,144,643 1,206,646 
Construction195,687 161,024 198,981 198,607 179,198 
Total commercial loans and leases13,254,485 11,655,717 12,420,565 13,574,667 15,057,974 
Consumer:
Residential460,228 469,426 350,984 260,820 273,493 
Manufactured housing48,570 50,669 52,861 55,635 57,904 
Installment1,901,070 1,897,706 1,744,475 1,624,415 1,577,651 
Total consumer loans2,409,868 2,417,801 2,148,320 1,940,870 1,909,048 
Total loans and leases$15,664,353 $14,073,518 $14,568,885 $15,515,537 $16,967,022 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
June 30,March 31,December 31,September 30,June 30,
20222022202120212021
Demand, non-interest bearing$4,683,030 $4,594,428 $4,459,790 $4,954,331 $2,699,869 
Demand, interest bearing6,644,398 5,591,468 6,488,406 5,023,081 4,206,355 
Total demand deposits11,327,428 10,185,896 10,948,196 9,977,412 6,906,224 
Savings640,062 802,395 973,317 1,310,343 1,431,756 
Money market4,254,205 4,981,077 4,349,073 5,090,121 4,908,809 
Time deposits723,024 446,192 507,338 593,149 627,150 
Total deposits$16,944,719 $16,415,560 $16,777,924 $16,971,025 $13,873,939 

18


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)As of June 30, 2022As of March 31, 2022As of June 30, 2021
Total loansNon accrual /NPLsAllowance for credit lossesTotal NPLs to total loansTotal reserves to total NPLsTotal loansNon accrual /NPLsAllowance for credit lossesTotal NPLs to total loansTotal reserves to total NPLsTotal loansNon accrual /NPLsAllowance for credit lossesTotal NPLs to total loansTotal reserves to total NPLs
Loan type
Commercial & industrial, including specialty lending (1)
$5,737,670 $4,061 $11,081 0.07 %272.86 %$3,995,802 $5,490 $10,765 0.14 %196.08 %$2,360,656 $6,717 $8,127 0.28 %120.99 %
Multi-family2,008,784 1,153 9,765 0.06 %846.92 %1,705,027 17,869 7,437 1.05 %41.62 %1,497,485 21,595 5,028 1.44 %23.28 %
Commercial real estate owner occupied710,577 2,913 4,745 0.41 %162.89 %701,893 2,191 3,841 0.31 %175.31 %653,649 2,688 4,464 0.41 %166.07 %
Commercial real estate non-owner occupied1,152,869 — 8,880 — %— %1,140,311 1,302 5,955 0.11 %457.37 %1,206,646 — 7,374 — %— %
Construction195,687 — 1,179 — %— %161,024 — 939 — %— %179,198 — 2,643 — %— %
Total commercial loans and leases receivable9,805,587 8,127 35,650 0.08 %438.66 %7,704,057 26,852 28,937 0.35 %107.76 %5,897,634 31,000 27,636 0.53 %89.15 %
Residential457,768 6,258 5,578 1.37 %89.13 %466,423 8,124 4,685 1.74 %57.67 %266,911 8,991 2,299 3.37 %25.57 %
Manufactured housing48,570 3,071 4,080 6.32 %132.86 %50,669 3,430 4,342 6.77 %126.59 %57,904 3,239 4,372 5.59 %134.98 %
Installment1,901,070 5,965 111,222 0.31 %1864.58 %1,897,706 4,865 107,883 0.26 %2217.53 %1,549,693 2,728 91,129 0.18 %3340.51 %
Total consumer loans receivable2,407,408 15,294 120,880 0.64 %790.38 %2,414,798 16,419 116,910 0.68 %712.04 %1,874,508 14,958 97,800 0.80 %653.83 %
Loans and leases receivable (1)
12,212,995 23,421 156,530 0.19 %668.33 %10,118,855 43,271 145,847 0.43 %337.05 %7,772,142 45,958 125,436 0.59 %272.94 %
Loans receivable, PPP1,570,160 — — — %— %2,195,902 — — — %— %6,305,056 — — — %— %
Loans receivable, mortgage warehouse, at fair value1,874,603 — — — %— %1,755,758 — — — %— %2,855,284 — — — %— %
Total loans held for sale6,595 4,643 — 70.40 %— %3,003 507 — 16.88 %— %34,540 507 — 1.47 %— %
Total portfolio$15,664,353 $28,064 $156,530 0.18 %557.76 %$14,073,518 $43,778 $145,847 0.31 %333.15 %$16,967,022 $46,465 $125,436 0.27 %269.96 %
(1) Excluding loans receivable, PPP from total loans and leases receivable is a non-GAAP measure. Management believes the use of these non-GAAP measures provides additional clarity when assessing Customers' financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. Please refer to the reconciliation schedules that follow this table.
19


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
Q2Q1Q4Q3Q2Six Months Ended June 30,
2022202220212021202120222021
Loan type
Multi-family$1,990 $(337)$— $— $— $1,653 $1,132 
Commercial & industrial(416)(59)240 116 (283)(475)92 
Commercial real estate owner occupied(42)(7)66 50 (1)(49)133 
Commercial real estate non-owner occupied159 (8)(14)943 (59)151 (69)
Construction(103)(113)(3)(3)(114)(216)(119)
Residential(39)(2)(6)54 (12)(41)28 
Installment11,932 7,752 7,299 5,944 7,060 19,684 17,915 
Total net charge-offs (recoveries) from loans held for investment$13,481 $7,226 $7,582 $7,104 $6,591 $20,707 $19,112 

20


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 - Customers Bancorp
Six Months Ended
June 30,
Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
(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$56,519 $1.68 $74,896 $2.18 $98,647 $2.87 $110,241 $3.25 $58,042 $1.72 $131,415 $3.87 $91,246 $2.74 
Reconciling items (after tax):
Net loss from discontinued operations— — — — 1,585 0.05 — — — — — — 38,036 1.14 
Severance expense— — — — — — — — 1,517 0.04 — — 1,517 0.05 
Impairments on fixed assets and leases705 0.02 220 0.01 1,118 0.03 — — — — 925 0.03 — — 
Merger and acquisition related expenses— — — — — — — — — — — — 320 0.01 
Legal reserves— — — — — — 897 0.03 — — — — — — 
(Gains) losses on investment securities2,494 0.07 1,030 0.03 43 0.00(4,591)(0.14)(2,694)(0.08)3,524 0.10 (21,467)(0.64)
Loss on sale of foreign subsidiaries— — — — — — — — 2,150 0.06 — — 2,150 0.06 
Loss on cash flow hedge derivative terminations— — — — — — — — — — — — 18,716 0.56 
Derivative credit valuation adjustment(351)(0.01)(736)(0.02)(180)(0.01)(198)(0.01)288 0.01 (1,087)(0.03)(907)(0.03)
Deposit relationship adjustment fees— — — — — — 4,707 0.14 — — — — — — 
Loss on redemption of preferred stock— — — — — — 2,820 0.08 — — — — — — 
Core earnings$59,367 $1.77 $75,410 $2.20 $101,213 $2.95 $113,876 $3.36 $59,303 $1.76 $134,777 $3.97 $129,611 $3.89 





21


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

Core Earnings, excluding PPP - Customers Bancorp
Six Months Ended
June 30,
Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
(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$56,519 $1.68 $74,896 $2.18 $98,647 $2.87 $110,241 $3.25 $58,042 $1.72 $131,415 $3.87 $91,246 $2.74 
Less: PPP net income (after tax)13,066 0.39 24,713 0.72 64,323 1.87 81,337 2.40 24,312 0.72 37,779 1.11 49,391 1.48 
GAAP net income to common shareholders, excluding PPP43,453 1.29 50,183 1.46 34,324 1.00 28,904 0.85 33,730 1.00 93,636 2.76 41,855 1.26 
Reconciling items (after tax):
Net loss from discontinued operations— — — — 1,585 0.05 — — — — — — 38,036 1.14 
Severance expense— — — — — — — — 1,517 0.04 — — 1,517 0.05 
Impairments on fixed assets and leases705 0.02 220 0.01 1,118 0.03 — — — — 925 0.03 — — 
Merger and acquisition related expenses— — — — — — — — — — — — 320 0.01 
Legal reserves— — — — — — 897 0.03 — — — — — — 
(Gains) losses on investment securities2,494 0.07 1,030 0.0343 0.00(4,591)(0.14)(2,694)(0.08)3,524 0.10 (21,467)(0.64)
Loss on sale of foreign subsidiaries— — — — — — — — 2,150 0.06 — — 2,150 0.06 
Loss on cash flow hedge derivative terminations— — — — — — — — — — — — 18,716 0.56 
Derivative credit valuation adjustment(351)(0.01)(736)(0.02)(180)(0.01)(198)(0.01)288 0.01 (1,087)(0.03)(907)(0.03)
Deposit relationship adjustment fees— — — — — — 4,707 0.14 — — — — — — 
Loss on redemption of preferred stock— — — — — — 2,820 0.08 — — — — — — 
Core earnings, excluding PPP$46,301 $1.38 $50,697 $1.48 $36,890 $1.07 $32,539 $0.96 $34,991 $1.04 $96,998 $2.86 $80,220 $2.41 
















22


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 - Customers Bancorp
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
GAAP net income$58,650 $76,761 $100,669 $116,042 $61,341 $135,411 $97,936 
Reconciling items (after tax):
Net loss from discontinued operations— — 1,585 — — — 38,036 
Severance expense— — — — 1,517 — 1,517 
Impairments on fixed assets and leases705 220 1,118 — — 925 — 
Merger and acquisition related expenses
— — — — — — 320 
Legal reserves— — — 897 — — — 
(Gains) losses on investment securities2,494 1,030 43 (4,591)(2,694)3,524 (21,467)
Loss on sale of foreign subsidiaries— — — — 2,150 — 2,150 
Loss on cash flow hedge derivative terminations— — — — — — 18,716 
Derivative credit valuation adjustment(351)(736)(180)(198)288 (1,087)(907)
Deposit relationship adjustment fees— — — 4,707 — — — 
Core net income
$61,498 $77,275 $103,235 $116,857 $62,602 $138,773 $136,301 
Average total assets
$20,056,020 $19,129,330 $19,214,241 $19,739,340 $19,306,948 $19,595,236 $18,918,491 
Core return on average assets1.23 %1.64 %2.13 %2.35 %1.30 %1.43 %1.45 %


Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
GAAP net income$58,650 $76,761 $100,669 $116,042 $61,341 $135,411 $97,936 
Reconciling items:
Income tax expense
18,896 19,332 12,993 36,263 20,124 38,228 37,684 
Provision (benefit) for credit losses
23,847 15,997 13,890 13,164 3,291 39,844 372 
Provision (benefit) for credit losses on unfunded commitments608 (109)352 669 45 499 (1,241)
Severance expense— — — — 2,004 — 2,004 
Net loss from discontinued operations— — 1,585 — — — 38,036 
Impairments on fixed assets and leases914 286 1,260 — — 1,200 — 
Merger and acquisition related expenses
— — — — — — 418 
Legal reserves— — — 1,185 — — — 
(Gains) losses on investment securities3,232 1,339 49 (6,063)(3,558)4,571 (28,098)
Loss on sale of foreign subsidiaries— — — — 2,840 — 2,840 
Loss on cash flow hedge derivative terminations— — — — — — 24,467 
Derivative credit valuation adjustment(455)(957)(203)(261)380 (1,412)(1,182)
Deposit relationship adjustment fees— — — 6,216 — — — 
Adjusted net income - pre-tax pre-provision
$105,692 $112,649 $130,595 $167,215 $86,467 $218,341 $173,236 
Average total assets
$20,056,020 $19,129,330 $19,214,241 $19,739,340 $19,306,948 $19,595,236 $18,918,491 
Adjusted ROAA - pre-tax pre-provision2.11 %2.39 %2.70 %3.36 %1.80 %2.25 %1.85 %

23


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 - Customers Bancorp
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
GAAP net income to common shareholders$56,519 $74,896 $98,647 $110,241 $58,042 $131,415 $91,246 
Reconciling items (after tax):
Net loss from discontinued operations— — 1,585 — — — 38,036 
Severance expense— — — — 1,517 — 1,517 
Impairments on fixed assets and leases705 220 1,118 — — 925 — 
Merger and acquisition related expenses— — — — — — 320 
Legal reserves— — — 897 — — — 
(Gains) losses on investment securities2,494 1,030 43 (4,591)(2,694)3,524 (21,467)
Loss on sale of foreign subsidiaries— — — — 2,150 — 2,150 
Loss on cash flow hedge derivative terminations— — — — — — 18,716 
Derivative credit valuation adjustment(351)(736)(180)(198)288 (1,087)(907)
Deposit relationship adjustment fees— — — 4,707 — — — 
Loss on redemption of preferred stock— — — 2,820 — — — 
Core earnings$59,367 $75,410 $101,213 $113,876 $59,303 $134,777 $129,611 
Average total common shareholders' equity $1,244,819 $1,252,022 $1,179,478 $1,071,566 $1,002,624 $1,248,400 $960,940 
Core return on average common equity19.13 %24.43 %34.04 %42.16 %23.72 %21.77 %27.20 %


Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
GAAP net income to common shareholders$56,519 $74,896 $98,647 $110,241 $58,042 $131,415 $91,246 
Reconciling items:
Income tax expense
18,896 19,332 12,993 36,263 20,124 38,228 37,684 
Provision (benefit) for credit losses
23,847 15,997 13,890 13,164 3,291 39,844 372 
Provision (benefit) for credit losses on unfunded commitments608 (109)352 669 45 499 (1,241)
Net loss from discontinued operations— — 1,585 — — — 38,036 
Severance expense— — — — 2,004 — 2,004 
Impairments on fixed assets and leases914 286 1,260 — — 1,200 — 
Merger and acquisition related expenses— — — — — — 418 
Legal reserves— — — 1,185 — — — 
(Gains) losses on investment securities3,232 1,339 49 (6,063)(3,558)4,571 (28,098)
Loss on sale of foreign subsidiaries— — — — 2,840 — 2,840 
Loss on cash flow hedge derivative terminations— — — — — — 24,467 
Derivative credit valuation adjustment(455)(957)(203)(261)380 (1,412)(1,182)
Deposit relationship adjustment fees— — — 6,216 — — — 
Loss on redemption of preferred stock— — — 2,820 — — — 
Pre-tax pre-provision adjusted net income available to common shareholders$103,561 $110,784 $128,573 $164,234 $83,168 $214,345 $166,546 
Average total common shareholders' equity$1,244,819 $1,252,022 $1,179,478 $1,071,566 $1,002,624 $1,248,400 $960,940 
Adjusted ROCE - pre-tax pre-provision33.37 %35.89 %43.25 %60.81 %33.27 %34.62 %34.95 %
24


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Net Interest Margin, Tax Equivalent - Customers Bancorp
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
GAAP net interest income$164,852 $164,699 $193,694 $219,892 $138,757 $329,551 $271,488 
Tax-equivalent adjustment270 239 276 290 289 509 581 
Net interest income tax equivalent$165,122 $164,938 $193,970 $220,182 $139,046 $330,060 $272,069 
Average total interest earning assets$19,525,936 $18,572,308 $18,576,433 $19,033,826 $18,698,996 $19,051,757 $18,323,555 
Net interest margin, tax equivalent3.39 %3.60 %4.14 %4.59 %2.98 %3.49 %2.99 %

Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
GAAP net interest income$164,852 $164,699 $193,694 $219,892 $138,757 $329,551 $271,488 
PPP net interest income(18,946)(34,615)(78,647)(112,005)(35,785)(53,561)(70,627)
Tax-equivalent adjustment270 239 276 290 289 509 581 
Net interest income, tax equivalent, excluding PPP$146,176 $130,323 $115,323 $108,177 $103,261 $276,499 $201,442 
GAAP average total interest earning assets$19,525,936 $18,572,308 $18,576,433 $19,033,826 $18,698,996 $19,051,757 $18,323,555 
Average PPP loans(1,863,429)(2,641,318)(3,898,607)(5,778,367)(6,133,184)(2,250,224)(5,382,370)
Adjusted average total interest earning assets$17,662,507 $15,930,990 $14,677,826 $13,255,459 $12,565,812 $16,801,533 $12,941,185 
Net interest margin, tax equivalent, excluding PPP3.32 %3.32 %3.12 %3.24 %3.30 %3.32 %3.14 %

Loan Yield, excluding PPP
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
Interest income on loans and leases$168,941 $157,175 $198,000 $233,097 $153,608 $326,116 $305,725 
PPP interest income(20,572)(36,894)(82,086)(117,102)(41,137)(57,466)(79,969)
Interest income on core loans (Loans and leases, excluding PPP)$148,369 $120,281 $115,914 $115,995 $112,471 $268,650 $225,756 
Average loans and leases14,918,498 13,656,991 14,335,370 16,192,744 16,482,802 14,291,229 15,909,143 
Average PPP loans(1,863,429)(2,641,318)(3,898,607)(5,778,367)(6,133,184)(2,250,224)(5,382,370)
Adjusted average total interest earning assets13,055,069 11,015,673 10,436,763 10,414,377 10,349,618 12,041,005 10,526,773 
Loan yield, excluding PPP4.56 %4.43 %4.41 %4.42 %4.36 %4.50 %4.32 %




25


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
Six Months Ended
June 30,
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 202120222021
GAAP net interest income$164,852 $164,699 $193,694 $219,892 $138,757 $329,551 $271,488 
GAAP non-interest income$12,746 $21,198 $16,991 $25,586 $16,822 $33,944 $35,290 
(Gains) losses on investment securities3,232 1,339 49 (6,063)(3,558)4,571 (28,098)
Derivative credit valuation adjustment(455)(957)(203)(261)380 (1,412)(1,182)
Loss on cash flow hedge derivative terminations— — — — — — 24,467 
Loss on sale of foreign subsidiaries— — — — 2,840 — 2,840 
Core non-interest income15,523 21,580 16,837 19,262 16,484 37,103 33,317 
Core revenue$180,375 $186,279 $210,531 $239,154 $155,241 $366,654 $304,805 
GAAP non-interest expense$76,205 $73,807 $81,548 $80,009 $70,823 $150,012 $132,750 
Severance expense— — — — (2,004)— (2,004)
Impairments on fixed assets and leases(914)(286)(1,260)— — (1,200)— 
Legal reserves— — — (1,185)— — — 
Merger and acquisition related expenses— — — — — — (418)
Deposit relationship adjustment fees— — — (6,216)— — — 
Core non-interest expense$75,291 $73,521 $80,288 $72,608 $68,819 $148,812 $130,328 
Core efficiency ratio (1)
41.74 %39.47 %38.14 %30.36 %44.33 %40.59 %42.76 %
(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)Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
GAAP total shareholders' equity$1,353,390 $1,377,406 $1,366,217 $1,284,299 $1,250,729 
Reconciling items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(217,471)
   Goodwill and other intangibles(3,629)(3,678)(3,736)(3,794)(3,853)
Tangible common equity$1,211,967 $1,235,934 $1,224,687 $1,142,711 $1,029,405 
GAAP total assets$20,251,996 $19,163,708 $19,575,028 $19,108,922 $19,635,108 
Reconciling items:
Goodwill and other intangibles(3,629)(3,678)(3,736)(3,794)(3,853)
Tangible assets$20,248,367 $19,160,030 $19,571,292 $19,105,128 $19,631,255 
Tangible common equity to tangible assets5.99 %6.45 %6.26 %5.98 %5.24 %




















26


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

Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
GAAP total shareholders' equity$1,353,390 $1,377,406 $1,366,217 $1,284,299 $1,250,729 
Reconciling items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(217,471)
   Goodwill and other intangibles(3,629)(3,678)(3,736)(3,794)(3,853)
Tangible common equity$1,211,967 $1,235,934 $1,224,687 $1,142,711 $1,029,405 
GAAP total assets$20,251,996 $19,163,708 $19,575,028 $19,108,922 $19,635,108 
Loans receivable, PPP(1,570,160)(2,195,902)(3,250,008)(4,957,357)(6,305,056)
Total assets, excluding PPP$18,681,836 $16,967,806 $16,325,020 $14,151,565 $13,330,052 
Reconciling items:
Goodwill and other intangibles(3,629)(3,678)(3,736)(3,794)(3,853)
Tangible assets, excluding PPP$18,678,207 $16,964,128 $16,321,284 $14,147,771 $13,326,199 
Tangible common equity to tangible assets, excluding PPP6.49 %7.29 %7.50 %8.08 %7.72 %

Tangible Book Value per Common Share - Customers Bancorp
(Dollars in thousands except share and per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
GAAP total shareholders' equity$1,353,390 $1,377,406 $1,366,217 $1,284,299 $1,250,729 
Reconciling Items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(217,471)
   Goodwill and other intangibles(3,629)(3,678)(3,736)(3,794)(3,853)
Tangible common equity$1,211,967 $1,235,934 $1,224,687 $1,142,711 $1,029,405 
Common shares outstanding32,449,486 32,957,847 32,913,267 32,537,976 32,353,256 
Tangible book value per common share$37.35 $37.50 $37.21 $35.12 $31.82 

Core Loans (Total Loans and Leases, excluding PPP)
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Total loans and leases$15,664,353 $14,073,518 $14,568,885 $15,515,537 $16,967,022 
Loans receivable, PPP(1,570,160)(2,195,902)(3,250,008)(4,957,357)(6,305,056)
Core Loans (Loans and leases, excluding PPP)$14,094,193 $11,877,616 $11,318,877 $10,558,180 $10,661,966 

Total loans and leases, excluding mortgage banking lending and PPP
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Total loans and leases$15,664,353 $14,073,518 $14,568,885 $15,515,537 $16,967,022 
Loans to mortgage companies(1,975,189)(1,830,121)(2,362,438)(2,626,483)(2,922,217)
Loans receivable, PPP(1,570,160)(2,195,902)(3,250,008)(4,957,357)(6,305,056)
Total loans and leases, excluding mortgage banking lending and PPP$12,119,004 $10,047,495 $8,956,439 $7,931,697 $7,739,749 

Total Assets, excluding PPP
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Total assets$20,251,996 $19,163,708 $19,575,028 $19,108,922 $19,635,108 
Loans receivable, PPP(1,570,160)(2,195,902)(3,250,008)(4,957,357)(6,305,056)
Total assets, excluding PPP$18,681,836 $16,967,806 $16,325,020 $14,151,565 $13,330,052 



27


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

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP
(Dollars in thousands except per share data)Q2 2022Q1 2022Q4 2021Q3 2021Q2 2021
Loans and leases receivable$13,783,155 $12,314,757 $12,268,306 $12,927,956 $14,077,198 
Loans receivable, PPP(1,570,160)(2,195,902)(3,250,008)(4,957,357)(6,305,056)
Loans and leases held for investment, excluding PPP$12,212,995 $10,118,855 $9,018,298 $7,970,599 $7,772,142 
Allowance for credit losses on loans and leases$156,530 $145,847 $137,804 $131,496 $125,436 
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP1.28 %1.44 %1.53 %1.65 %1.61 %


28