EX-99.1 2 q124pressrelease.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 First Quarter
First Quarter 2024 Highlights
•Q1 2024 net income available to common shareholders was $45.9 million, or $1.40 per diluted share; ROAA was 0.94% and ROCE was 12.08%.
•Q1 2024 core earnings* were $46.5 million, or $1.42 per diluted share; Core ROAA* was 0.95% and Core ROCE* was 12.24%.
•Q1 2024 adjusted core earnings* excluding certain one-time items were $55.1 million, or $1.68 per diluted share; Adjusted Core ROAA* excluding certain one-time items was 1.11% and Adjusted Core ROCE* excluding certain one-time items was 14.50%.
•CET 1 ratio of 12.5%1 at March 31, 2024, compared to 12.2% at December 31, 2023, above the approximately 11.5% target.
•TCE / TA ratio* of 7.3% at March 31, 2024, compared to 7.0% at December 31, 2023, on track to achieve 7.5% target within one to two quarters.
•Q1 2024 net interest margin, tax equivalent (“NIM”) was 3.10%, compared to Q4 2023 NIM of 3.31%, due to higher cash balances and lower average loans during the quarter.
•Total deposits increased by $41.1 million in Q1 2024 from Q4 2023 with a significant positive mix shift. Q1 2024 business unit deposit*2 growth of $1.2 billion funded the repayment of maturing wholesale CDs of $1.2 billion.
•Non-interest bearing deposits increased by $266.4 million in Q1 2024 from Q4 2023 and represented 26% of total deposits.
•Total estimated insured deposits were 78%3 of total deposits at March 31, 2024, with immediately available liquidity covering estimated uninsured deposits3 by approximately 224%.
•Non-performing assets were $35.8 million, or 0.17% of total assets, at March 31, 2024 compared to 0.13% at December 31, 2023. Allowance for credit losses on loans and leases equaled 374% of non-performing loans at March 31, 2024, compared to 499% at December 31, 2023.
•Q1 2024 provision for credit losses on loans and leases was $16.0 million compared to $13.4 million in Q4 2023 and the coverage of credit loss reserves for loans and leases held for investment was 1.12%. The coverage of credit loss reserves for loans and leases held for investment decreased modestly from 1.13% in Q4 2023 largely driven by lower consumer installment loans held for investment.
•Q1 2024 book value per share and tangible book value per share* both grew by approximately $1.56, or 3.3% over Q4 2023, driven by strong quarterly earnings and a decrease in AOCI losses of $4.3 million over the same time period.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
1 Regulatory capital ratios as of March 31, 2024 are estimates.
2 Total deposits excluding wholesale CDs and BMTX student-related deposits.
3 Uninsured deposits (estimate) of $5.2 billion to be reported on the Bank’s call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $124.5 million.
1

CEO Commentary
West Reading, PA, April 25, 2024 - “Following an exceptional year in 2023, we are pleased to share continued progress on the execution of our strategic priorities which we believe will grow our franchise value, our margins and net interest income in 2024 and beyond,” said Customers Bancorp Chairman and CEO Jay Sidhu. “We are excited to announce that in April we welcomed 10 new, very experienced, banking teams to Customers Bank that are commercial focused deposit generators in the New York metropolitan area and in selected markets in California and Nevada. These commercial and business banking teams are highly experienced, have worked together for decades and have longstanding and deep client relationships. We expect the addition of these teams to accelerate the continued improvement of our deposit franchise with low cost, granular, primary relationship-based deposit accounts. We look forward to delivering exceptional service to their clients with our single point of contact, high-touch, technology-enabled banking capabilities. In the quarter, we once again demonstrated the momentum of our deposit franchise transformation by growing business unit deposits*2 by $1.2 billion which funded the repayment of maturing wholesale CDs in the amount of $1.2 billion. This was our fourth consecutive quarter of approximately $1 billion of business unit deposit*2 growth. The business unit deposit*2 growth was, once again, broad-based with more than 20 different channels increasing balances and roughly half contributing $25 million or more. Non-interest bearing deposits increased by $266.4 million during the quarter and represented 26 percent of total deposits. Our net interest margin moderated in the first quarter to 3.10% driven primarily by elevated cash balances resulting from strong business unit deposit*2 growth and the timing associated with replenishing higher yielding interest-earning assets that exited in the fourth quarter as we continue to remain focused on loan growth supporting holistic relationships. Capital levels continued to build as evidenced by a 24 basis point increase in our TCE / TA ratio* and an increase in our CET 1 ratio to 12.5%1. We are confident in our ability to achieve the 7.5% TCE / TA ratio* target that we disclosed last quarter. Enhanced by the addition of our new banking teams, we believe we are extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.
“Our Q1 2024 GAAP earnings were $45.9 million, or $1.40 per diluted share, and core earnings* were $46.5 million, or $1.42 per diluted share. Excluding certain one-time items incurred during the quarter, our adjusted core earnings* were $55.1 million, or $1.68 per diluted share. At March 31, 2024, our deposit base was well diversified, with approximately 78%3 of total deposits insured. We maintain a strong liquidity position, with $8.9 billion of liquidity immediately available, which covers approximately 224% of uninsured deposits3 and our loan to deposit ratio was 74%. We continue to focus loan production where we have a holistic and primary relationship. Commercial loans grew by $123.0 million though gross loan balances remained relatively flat given targeted reductions in consumer installment loans in the quarter. Our loan pipeline grew meaningfully through the first quarter, and we remain confident in the 10% – 15% loan growth outlook previously provided. We have ample liquidity and capital to support the needs of our customers. At March 31, 2024, we had $3.7 billion of cash on hand, to fund strategic loan growth as well as prudent balance sheet and liquidity management. Asset quality remains strong with our NPA ratio at just 0.17% of total assets and reserve levels are robust at over 370% of total non-performing loans at the end of Q1 2024. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. Continued execution on our strategic priorities has positioned us favorably for success in 2024 from a capital, credit, liquidity, interest rate risk and earnings perspective. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. We are confident in our risk management capabilities and ability to provide excellent and differentiated service to our clients. We are excited and optimistic about the opportunities we had entering 2024, which will only be enhanced by the addition of the new banking teams,” Jay Sidhu continued.


*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
1 Regulatory capital ratios as of March 31, 2024 are estimates.
2 Total deposits excluding wholesale CDs and BMTX student-related deposits.
3 Uninsured deposits (estimate) of $5.2 billion to be reported on the Bank’s call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $124.5 million.
2

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)
March 31, 2024December 31, 2023
Profitability Metrics:
Net income available for common shareholders$45,926 $58,223 $(12,297)(21.1)%
Diluted earnings per share$1.40 $1.79 $(0.39)(21.8)%
Core earnings*$46,532 $61,633 $(15,101)(24.5)%
Adjusted core earnings*
$55,137 $61,633 $(6,496)(10.5)%
Core earnings per share*$1.42 $1.90 $(0.48)(25.3)%
Adjusted core earnings per share*
$1.68 $1.90 $(0.22)(11.6)%
Return on average assets (“ROAA”)
0.94 %1.16 %(0.22)
Core ROAA*0.95 %1.22 %(0.27)
Adjusted core ROAA*
1.11 %1.22 %(0.11)
Return on average common equity (“ROCE”)
12.08 %15.93 %(3.85)
Core ROCE*12.24 %16.87 %(4.63)
Adjusted core ROCE*
14.50 %16.87 %(2.37)
Core pre-tax pre-provision net income*
$83,674 $101,884 $(18,210)(17.9)%
Adjusted core pre-tax pre-provision net income*
$94,988 $101,884 $(6,896)(6.8)%
Net interest margin, tax equivalent3.10 %3.31 %(0.21)
Yield on loans (Loan yield)
7.05 %7.30 %(0.25)
Cost of deposits3.45 %3.39 %0.06 
Efficiency ratio54.58 %49.08 %5.50 
Core efficiency ratio*54.24 %46.70 %7.54 
Adjusted core efficiency ratio*
48.02 %46.70 %1.32 
Non-interest expense to average total assets
1.87 %1.75 %0.12 
Core non-interest expense to average total assets*
1.86 %1.67 %0.19 
Adjusted core non-interest expense to average total assets*
1.65 %1.67 %(0.02)
Balance Sheet Trends:
Total assets$21,347,367 $21,316,265 $31,102 0.1 %
Total cash and investment securities
$7,338,025 $7,355,156 $(17,131)(0.2)%
Total loans and leases$13,256,871 $13,202,084 $54,787 0.4 %
Non-interest bearing demand deposits$4,688,880 $4,422,494 $266,386 6.0 %
Total deposits$17,961,383 $17,920,236 $41,147 0.2 %
Capital Metrics:
Common Equity$1,553,823 $1,500,600 $53,223 3.5 %
Tangible Common Equity*$1,550,194 $1,496,971 $53,223 3.6 %
Common Equity to Total Assets7.3 %7.0 %0.3 
Tangible Common Equity to Tangible Assets*7.3 %7.0 %0.3 
Book Value per common share$49.29 $47.73 $1.56 3.3 %
Tangible Book Value per common share*$49.18 $47.61 $1.57 3.3 %
Common equity Tier 1 capital ratio (1)
12.5 %12.2 %0.3 
Total risk based capital ratio (1)
15.6 %15.3 %0.3 
(1) Regulatory capital ratios as of March 31, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
3

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)
March 31, 2024March 31, 2023
Profitability Metrics:
Net income available for common shareholders$45,926 $50,265 $(4,339)(8.6)%
Diluted earnings per share$1.40 $1.55 $(0.15)(9.7)%
Core earnings*$46,532 $51,143 $(4,611)(9.0)%
Adjusted core earnings*
$55,137 $51,143 $3,994 7.8 %
Core earnings per share*$1.42 $1.58 $(0.16)(10.1)%
Adjusted core earnings per share*
$1.68 $1.58 $0.10 6.3 %
Return on average assets (“ROAA”)
0.94 %1.03 %(0.09)
Core ROAA*0.95 %1.05 %(0.10)
Adjusted core ROAA*
1.11 %1.05 %0.06 
Return on average common equity (“ROCE”)
12.08 %16.00 %(3.92)
Core ROCE*12.24 %16.28 %(4.04)
Adjusted core ROCE*
14.50 %16.28 %(1.78)
Core pre-tax pre-provision net income*
$83,674 $89,282 $(5,608)(6.3)%
Adjusted core pre-tax pre-provision net income*
$94,988 $89,282 $5,706 6.4 %
Net interest margin, tax equivalent3.10 %2.96 %0.14 
Yield on loans (Loan yield)
7.05 %6.70 %0.35 
Cost of deposits3.45 %3.32 %0.13 
Efficiency ratio54.58 %47.71 %6.87 
Core efficiency ratio*54.24 %47.09 %7.15 
Adjusted core efficiency ratio*
48.02 %47.09 %0.93 
Non-interest expense to average total assets
1.87 %1.54 %0.33 
Core non-interest expense to average total assets*
1.86 %1.53 %0.33 
Adjusted core non-interest expense to average total assets*
1.65 %1.53 %0.12 
Balance Sheet Trends:
Total assets$21,347,367 $21,751,614 $(404,247)(1.9)%
Total cash and investment securities
$7,338,025 $5,843,948 $1,494,077 25.6 %
Total loans and leases$13,256,871 $15,063,034 $(1,806,163)(12.0)%
Non-interest bearing demand deposits$4,688,880 $3,487,517 $1,201,363 34.4 %
Total deposits$17,961,383 $17,723,617 $237,766 1.3 %
Capital Metrics:
Common Equity$1,553,823 $1,283,226 $270,597 21.1 %
Tangible Common Equity*$1,550,194 $1,279,597 $270,597 21.1 %
Common Equity to Total Assets7.3 %5.9 %1.4 
Tangible Common Equity to Tangible Assets*7.3 %5.9 %1.4 
Book Value per common share$49.29 $41.08 $8.21 20.0 %
Tangible Book Value per common share*$49.18 $40.96 $8.22 20.1 %
Common equity Tier 1 capital ratio (1)
12.5 %9.6 %2.9 
Total risk based capital ratio (1)
15.6 %12.3 %3.3 
(1) Regulatory capital ratios as of March 31, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
4

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)March 31, 2024% of TotalDecember 31, 2023% of TotalMarch 31, 2023% of Total
Loans and Leases Held for Investment
Commercial:
Commercial & industrial:
Specialized lending$5,104,405 39.6 %$5,006,693 38.9 %$5,519,176 37.7 %
Other commercial & industrial (1)
1,113,517 8.6 1,162,317 9.0 1,414,419 9.7 
Mortgage finance1,071,146 8.3 1,014,742 7.9 1,374,894 9.4 
Multifamily2,123,675 16.5 2,138,622 16.6 2,195,211 15.0 
Commercial real estate owner occupied806,278 6.3 797,319 6.2 895,314 6.1 
Commercial real estate non-owner occupied1,182,084 9.2 1,177,650 9.2 1,245,248 8.5 
Construction185,601 1.3 166,393 1.3 188,123 1.3 
Total commercial loans and leases11,586,706 89.8 11,463,736 89.1 12,832,385 87.7 
Consumer:
Residential482,537 3.8 484,435 3.8 494,815 3.4 
Manufactured housing37,382 0.3 38,670 0.3 43,272 0.3 
Installment:
Personal492,892 3.8 555,533 4.3 849,420 5.8 
Other299,714 2.3 319,393 2.5 419,085 2.8 
Total installment loans792,606 6.1 874,926 6.8 1,268,505 8.6 
Total consumer loans1,312,525 10.2 1,398,031 10.9 1,806,592 12.3 
Total loans and leases held for investment$12,899,231 100.0 %$12,861,767 100.0 %$14,638,977 100.0 %
Loans Held for Sale
Commercial:
Multifamily$— — %$— — %$4,051 1.0 %
Commercial real estate non-owner occupied— — — — 16,000 3.7 
Total commercial loans and leases— — — — 20,051 4.7 
Consumer:
Residential870 0.2 1,215 0.3 821 0.2 
Installment:
Personal137,755 38.5 151,040 44.4 307,336 72.5 
Other219,015 61.3 188,062 55.3 95,849 22.6 
Total installment loans356,770 99.8 339,102 99.7 403,185 95.1 
Total consumer loans357,640 100.0 340,317 100.0 404,006 95.3 
Total loans held for sale$357,640 100.0 %$340,317 100.0 %$424,057 100.0 %
Total loans and leases portfolio$13,256,871 $13,202,084 $15,063,034 
(1)    Includes PPP loans of $52.0 million, $74.7 million and $246.3 million as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

Loans and Leases Held for Investment
Loans and leases held for investment were $12.9 billion at March 31, 2024, up $37.5 million, or 0.3%, from December 31, 2023. Specialized lending increased $97.7 million, or 2.0% quarter-over-quarter, to $5.1 billion. Mortgage finance loans increased $56.4 million, or 5.6% quarter-over-quarter due to higher mortgage activity. Construction loans increased $19.2 million, or 11.5% quarter-over-quarter, to $185.6 million. Consumer installment loans held for investment decreased $82.3 million, or 9.4% quarter-over-quarter, to $792.6 million due to the continued build out of the held-for-sale strategy and de-risking of the held-for-investment loan portfolio. Other commercial and industrial loans decreased $48.8 million, or 4.2% quarter-over-quarter, to $1.1 billion, which included a decrease in PPP loans primarily from guarantee payments.
5

Loans and leases held for investment of $12.9 billion at March 31, 2024 was down $1.7 billion, or 11.9%, year-over-year, largely driven by reduced balances in consumer installment loans of $475.9 million, or 37.5% year-over-year, specialized lending of $414.8 million, mortgage finance loans of $303.7 million and other commercial and industrial loans of $300.9 million, which included a decrease in PPP loans primarily from guarantee payments.
Loans Held for Sale
Loans held for sale increased $17.3 million quarter-over-quarter, and were $357.6 million at March 31, 2024 due to the continued build out of the held-for-sale strategy in 2024.
Allowance for Credit Losses on Loans and Leases
The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:
At or Three Months EndedIncrease (Decrease)At or Three Months EndedIncrease (Decrease)
(Dollars in thousands)March 31, 2024December 31, 2023March 31, 2024March 31, 2023
Allowance for credit losses on loans and leases$133,296 $135,311 $(2,015)$133,296 $130,281 $3,015 
Provision (benefit) for credit losses on loans and leases$15,953 $13,420 $2,533 $15,953 $18,008 $(2,055)
Net charge-offs from loans held for investment$17,968 $17,322 $646 $17,968 $18,651 $(683)
Annualized net charge-offs to average loans and leases0.55 %0.51 %0.55 %0.49 %
Coverage of credit loss reserves for loans and leases held for investment1.12 %1.13 %1.12 %0.97 %
Net charge-offs were relatively stable with $18.0 million in Q1 2024, compared to $17.3 million in Q4 2023 and $18.7 million in Q1 2023.
Provision (benefit) for Credit Losses
Three Months EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)March 31, 2024December 31, 2023March 31, 2024March 31, 2023
Provision (benefit) for credit losses on loans and leases
$15,953 $13,420 $2,533 $15,953 $18,008 $(2,055)
Provision (benefit) for credit losses on available for sale debt securities1,117 103 1,014 1,117 1,595 (478)
Provision for credit losses17,070 13,523 3,547 17,070 19,603 (2,533)
Provision (benefit) for credit losses on unfunded commitments430 (136)566 430 280 150 
Total provision for credit losses$17,500 $13,387 $4,113 $17,500 $19,883 $(2,383)
The provision for credit losses on loans and leases in Q1 2024 was $16.0 million, compared to $13.4 million in Q4 2023. The higher provision in Q1 2024 was primarily due to increased uncertainty and slightly weaker macroeconomic forecasts, partially offset by lower balances in consumer installment loans held for investment.
The provision for credit losses on available for sale investment securities in Q1 2024 was $1.1 million, compared to provision of $0.1 million in Q4 2023.
The provision for credit losses on loans and leases in Q1 2024 was $16.0 million, compared to $18.0 million in Q1 2023. The lower provision in Q1 2024 compared to the year ago period was primarily due to lower balances in loans held for investment.
The provision for credit losses on available for sale investment securities in Q1 2024 was $1.1 million compared to provision of $1.6 million in Q1 2023.
6

Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands)March 31, 2024December 31, 2023Increase (Decrease)March 31, 2024March 31, 2023Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)
$35,654 $27,110 $8,544 $35,654 $32,124 $3,530 
Non-performing assets$35,753 $27,209 $8,544 $35,753 $32,260 $3,493 
NPLs to total loans and leases
0.27 %0.21 %0.27 %0.21 %
Reserves to NPLs
373.86 %499.12 %373.86 %405.56 %
NPAs to total assets0.17 %0.13 %0.17 %0.15 %
Loans and leases (1) risk ratings:
Commercial loans and leases
Pass$10,095,611 $9,955,243 $140,368 $10,095,611 $10,928,620 $(833,009)
Special Mention
194,365 196,182 (1,817)194,365 136,986 57,379 
Substandard
282,163 339,664 (57,501)282,163 273,154 9,009 
Total commercial loans and leases10,572,139 10,491,089 81,050 10,572,139 11,338,760 (766,621)
Consumer loans
Performing1,293,457 1,379,603 (86,146)1,293,457 1,787,123 (493,666)
Non-performing19,068 18,428 640 19,068 19,469 (401)
Total consumer loans1,312,525 1,398,031 (85,506)1,312,525 1,806,592 (494,067)
Loans and leases receivable (1)
$11,884,664 $11,889,120 $(4,456)$11,884,664 $13,145,352 $(1,260,688)
(1)    Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value and eligible PPP loans that are fully guaranteed by the Small Business Administration.
Over the last decade, the Bank has developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s commercial and industrial (“C&I”), mortgage finance, corporate and specialized lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an 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, management employs a bottom-up data driven approach to analyze the commercial portfolio.
Total consumer installment loans held for investment at March 31, 2024 were less than 4% of total assets and approximately 6% of total loans and leases held for investment, and were supported by an allowance for credit losses of $50.7 million. At March 31, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 737, average debt-to-income of 20% and average borrower income of $107 thousand.
Non-performing loans at March 31, 2024 increased to 0.27% of total loans and leases, compared to 0.21% at December 31, 2023 and 0.21% at March 31, 2023.
Investment Securities
The investment securities portfolio, including debt securities classified as available for sale (“AFS”) and held to maturity (“HTM”) provides periodic cash flows through regular maturities and amortization, can be used as collateral to secure additional funding, and is an important component of the Bank’s liquidity position.
The following table presents the composition of the investment securities portfolio as of the dates indicated:
(Dollars in thousands)March 31, 2024December 31, 2023March 31, 2023
Debt securities, available for sale$2,571,139 $2,376,860 $2,900,259 
Equity securities33,729 28,780 26,710 
Investment securities, at fair value2,604,868 2,405,640 2,926,969 
Debt securities, held to maturity1,032,037 1,103,170 870,294 
Total investment securities portfolio$3,636,905 $3,508,810 $3,797,263 
7

Critically important to performance during the recent banking crisis are the characteristics of a bank’s securities portfolio. While there may be virtually no credit risk in some of these portfolios, holding longer term and lower yielding securities is creating challenges for many banks. Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At March 31, 2024, the AFS debt securities portfolio had a spot yield of 5.33%, an effective duration of approximately 1.7 years, and approximately 40% are variable rate. Additionally, 62% of the AFS securities portfolio was AAA rated at March 31, 2024.
At March 31, 2024, the HTM debt securities portfolio represented only 4.8% of total assets at March 31, 2024, had a spot yield of 4.26% and an effective duration of approximately 3.0 years. Additionally, at March 31, 2024, approximately 41% of the HTM securities were AAA rated and 49% were credit enhanced asset backed securities with no current expectation of credit losses.
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands)March 31, 2024% of TotalDecember 31, 2023% of TotalMarch 31, 2023% of Total
Demand, non-interest bearing$4,688,880 26.1 %$4,422,494 24.7 %$3,487,517 19.7 %
Demand, interest bearing5,661,775 31.5 5,580,527 31.1 5,791,302 32.7 
Total demand deposits10,350,655 57.6 10,003,021 55.8 9,278,819 52.4 
Savings2,080,374 11.6 1,402,941 7.8 924,359 5.2 
Money market3,347,843 18.6 3,226,395 18.0 2,019,633 11.4 
Time deposits2,182,511 12.2 3,287,879 18.4 5,500,806 31.0 
Total deposits$17,961,383 100.0 %$17,920,236 100.0 %$17,723,617 100.0 %
Total deposits increased $41.1 million, or 0.2%, to $18.0 billion at March 31, 2024 as compared to the prior quarter. Non-interest bearing demand deposits increased $266.4 million, or 6.0%, to $4.7 billion, savings deposits increased $677.4 million, or 48.3%, to $2.1 billion, money market deposits increased $121.4 million, or 3.8%, to $3.3 billion and interest bearing demand deposits of $81.2 million, or 1.5%, to $5.7 billion. These increases were offset by a decrease in time deposits of $1.1 billion, or 33.6%, to $2.2 billion. The total average cost of deposits increased modestly by 6 basis points to 3.45% in Q1 2024 from 3.39% in the prior quarter largely driven by continued competitive dynamics in the deposit market that the industry continues to experience. Total estimated uninsured deposits were $4.0 billion1, or 22% of total deposits (inclusive of accrued interest) at March 31, 2024. Customers is also highly focused on total deposits with contractual term to manage its liquidity profile and the funding of loans and securities.
Total deposits increased $237.8 million, or 1.3%, to $18.0 billion at March 31, 2024 as compared to a year ago. Non-interest bearing demand deposits increased $1.2 billion, or 34.4%, to $4.7 billion, money market deposits increased $1.3 billion, or 65.8%, to $3.3 billion and savings deposits increased $1.2 billion, or 125.1%, to $2.1 billion. These increases were offset by decreases in time deposits of $3.3 billion, or 60.3% to $2.2 billion and interest bearing demand deposits of $129.5 million, or 2.2%, to $5.7 billion. The total average cost of deposits increased modestly by 13 basis points to 3.45% in Q1 2024 from 3.32% in the prior year primarily due to higher market interest rates, offsetting a positive shift in deposit mix.
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
(Dollars in thousands)March 31, 2024December 31, 2023March 31, 2023
FHLB advances$1,195,088 $1,203,207 $2,052,143 
Senior notes123,905 123,840 123,645 
Subordinated debt182,300 182,230 182,021 
Total borrowings$1,501,293 $1,509,277 $2,357,809 
1 Uninsured deposits (estimate) of $5.2 billion to be reported on the Bank’s call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $124.5 million.
8

Total borrowings decreased $8.0 million, or 0.5%, to $1.5 billion at March 31, 2024 as compared to the prior quarter. As of March 31, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.5 billion, of which $1.2 billion of available capacity was utilized in borrowings and $1.1 billion was utilized to collateralize deposits.
Total borrowings decreased $856.5 million, or 36.3%, to $1.5 billion at March 31, 2024 as compared to a year ago. This decrease primarily resulted from repayments of $340.0 million and $510.0 million in callable FHLB advances in Q4 2023 and Q3 2023, respectively.
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
(Dollars in thousands except per share data)March 31, 2024December 31, 2023March 31, 2023
Customers Bancorp, Inc.
Common Equity$1,553,823 $1,500,600 $1,283,226 
Tangible Common Equity*$1,550,194 $1,496,971 $1,279,597 
Common Equity to Total Assets7.3 %7.0 %5.9 %
Tangible Common Equity to Tangible Assets*7.3 %7.0 %5.9 %
Book Value per common share$49.29 $47.73 $41.08 
Tangible Book Value per common share*$49.18 $47.61 $40.96 
Common equity Tier 1 (“CET 1”) capital ratio (1)
12.5 %12.2 %9.6 %
Total risk based capital ratio (1)
15.6 %15.3 %12.3 %
(1) Regulatory capital ratios as of March 31, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
Customers Bancorp’s common equity increased $53.2 million to $1.6 billion, and tangible common equity* increased $53.2 million to $1.6 billion, at March 31, 2024 compared to the prior quarter, respectively, primarily from earnings of $45.9 million and decreased unrealized losses on investment securities of $4.3 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). Similarly, book value per common share increased to $49.29 from $47.73, and tangible book value per common share* increased to $49.18 from $47.61, at March 31, 2024 and December 31, 2023, respectively.
Customers Bancorp’s common equity increased $270.6 million to $1.6 billion, and tangible common equity* increased $270.6 million to $1.6 billion, at March 31, 2024 compared to a year ago, respectively, primarily from earnings of $231.1 million and decreased unrealized losses on investment securities in AOCI of $24.0 million (net of taxes). Similarly, book value per common share increased to $49.29 from $41.08, and tangible book value per common share* increased to $49.18 from $40.96, at March 31, 2024 and March 31, 2023, respectively.
At the Customers Bancorp level, the CET 1 ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.5%, 15.6%, 7.3%, and 7.3%, respectively, at March 31, 2024.
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At March 31, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 14.0% and 15.7%, respectively.
“Even though we remain well capitalized by all regulatory measures, we are committed to maintaining our CET 1 ratio around 11.5% and growing our TCE / TA ratio* to 7.5% in 2024,” stated Jay Sidhu.
9

Key Profitability Trends
Net Interest Income
Net interest income totaled $160.4 million in Q1 2024, a decrease of $12.1 million from Q4 2023. This decrease was due to lower interest income of $14.1 million primarily due to the reduction of higher yielding loans and securities that exited the bank in the fourth quarter, and the measured pace of replenishing those interest-earning assets in the first quarter. Partially offsetting this decline was lower interest expense of $2.0 million due to the reduction of FHLB advances and positive remix of wholesale CDs with business unit deposits*2 that we executed in the fourth and first quarters.
“We experienced a modest decline in net interest income in the first quarter due to the selective reduction of higher yielding loans and securities in last quarter. This quarter we also reserved loan growth capacity in anticipation of the onboarding of the new teams. As we deploy excess liquidity, currently on the balance sheet in cash and securities, our net interest income is expected to grow and our net interest margin is expected to expand over the remainder of the year. Our loan pipeline grew meaningfully in the first quarter, which will benefit interest income and margin for the remainder of the year. For the second quarter in a row we reported lower interest expense compared to the prior quarter. The continued replacement of wholesale deposits and the remix of higher cost less strategic business unit deposits*2 is expected to continue to drive interest expense lower going forward. The combination of these efforts will benefit our net interest income throughout 2024 and beyond,” stated Customers Bancorp President Sam Sidhu.
Net interest income totaled $160.4 million in Q1 2024, an increase of $10.5 million from Q1 2023. This increase was due to higher interest income of $16.8 million primarily due to variable rate lower credit risk specialized lending verticals and interest earning deposits from higher market interest rates, and lower interest expense from lower average balances of borrowings, offset in part by higher interest expense on deposits of $9.8 million primarily resulting from increased market interest rates. The decrease in interest-earning assets was primarily driven by decreases in specialized lending verticals, consumer installment loans, mortgage finance loans and PPP loans included in other C&I loans. Total consumer installment loans decreased in Q1 2024 as compared to Q1 2023, as installment loans held for investment decreased primarily for risk management purposes and the implementation of a held-for-sale strategy.
Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
Three Months EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)March 31, 2024December 31, 2023March 31, 2024March 31, 2023
Commercial lease income$9,683 $9,035 $648 $9,683 $9,326 $357 
Loan fees5,280 5,926 (646)5,280 3,990 1,290 
Bank-owned life insurance 3,261 2,160 1,101 3,261 2,647 614 
Mortgage finance transactional fees946 927 19 946 1,074 (128)
Gain (loss) on sale of loans10 (91)101 10 — 10 
Net gain (loss) on sale of investment securities(30)(145)115 (30)— (30)
Other2,081 860 1,221 2,081 1,084 997 
Total non-interest income$21,231 $18,672 $2,559 $21,231 $18,121 $3,110 
Non-interest income totaled $21.2 million for Q1 2024, an increase of $2.6 million compared to Q4 2023. The increase was primarily due to increases in death benefits paid by insurance carriers under bank-owned life insurance policies, commercial lease income and other income.
Non-interest income totaled $21.2 million for Q1 2024, an increase of $3.1 million compared to Q1 2023. The increase was primarily due to increases in loan fees of $1.3 million resulting from increased servicing-related revenue and unused line of credit fees, death benefits paid by insurance carriers under bank-owned life insurance policies, commercial lease income and other income.
2 Total deposits excluding wholesale CDs and BMTX student-related deposits.
10

Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
Three Months EndedIncrease (Decrease)Three Months EndedIncrease (Decrease)
(Dollars in thousands)March 31, 2024December 31, 2023March 31, 2024March 31, 2023
Salaries and employee benefits$36,025 $33,965 $2,060 $36,025 $32,345 $3,680 
Technology, communication and bank operations21,904 16,887 5,017 21,904 16,589 5,315 
Commercial lease depreciation7,970 7,357 613 7,970 7,875 95 
Professional services6,353 9,820 (3,467)6,353 7,596 (1,243)
Loan servicing4,031 3,779 252 4,031 4,661 (630)
Occupancy2,347 2,320 27 2,347 2,760 (413)
FDIC assessments, non-income taxes and regulatory fees13,469 13,977 (508)13,469 2,728 10,741 
Advertising and promotion682 850 (168)682 1,049 (367)
Other6,388 4,812 1,576 6,388 4,530 1,858 
Total non-interest expense$99,169 $93,767 $5,402 $99,169 $80,133 $19,036 
Non-interest expenses totaled $99.2 million in Q1 2024, an increase of $5.4 million compared to Q4 2023. The increase was primarily attributable to certain one-time items which included deposit servicing-related fees of $7.1 million in technology, communications and bank operations and FDIC premiums of $4.2 million, both of which relate to periods prior to 2024. There was also an increase in the estimated industry-wide FDIC special assessment of $0.5 million in Q1 2024 from the $3.7 million FDIC special assessment fee recorded in Q4 2023. Excluding the impact of these amounts, total non-interest expenses were $87.4 million, which decreased $2.7 million in Q1 2024 compared to $90.0 million in Q4 2023. Other changes during the quarter include an increase of $2.1 million in salaries and employee benefits primarily due to higher incentives and stock awards and a decrease of $3.5 million in professional fees. Q1 2024 adjusted core non-interest expenses* were $87.4 million, a decrease of $2.1 million over Q4 2023.
Non-interest expenses totaled $99.2 million in Q1 2024, an increase of $19.0 million compared to Q1 2023. The increase was primarily attributable to increases of $10.7 million in FDIC assessments, non-income taxes and regulatory fees resulting primarily from higher FDIC assessments, one-time FDIC premiums of $4.2 million relating to periods prior to 2024 and an increase in the estimated industry-wide FDIC special assessment of $0.5 million, $5.3 million in technology, communications and bank operations which included the one-time deposit servicing-related fees and $3.7 million in salaries and employee benefits primarily due to higher headcount, annual merit increases and incentives. These increases were partially offset by a decrease of $1.2 million in professional fees.
Taxes
Income tax expense decreased by $6.1 million to $15.7 million in Q1 2024 from $21.8 million in Q4 2023 primarily due to lower pre-tax income.
Income tax expense increased by $1.1 million to $15.7 million in Q1 2024 from $14.6 million in Q1 2023 primarily due to a decrease in estimated income tax credits for 2024.
The effective tax rate for Q1 2024 was 24%. Customers expects the full-year 2024 effective tax rate to be approximately 22% to 24%.
11

Outlook
“Looking forward, our strategy and risk management principles remain unchanged. We are focused on managing risk, strengthening our deposit franchise, further improving our profitability and maintaining our strong capital ratios. Our deposits are expected to grow modestly with continued improvement in the quality of deposits, reducing higher cost business unit deposits*1 with lower cost deposits where we have a holistic and primary relationship. The addition of the new banking teams is expected to accelerate and enhance these efforts which were already well underway. We see attractive opportunities to deploy cash and securities cash flows into franchise-enhancing loan growth and our pipeline is strong. We remain confident in our ability to deliver 10% - 15% loan growth for the full year. The management of non-interest expenses remains a priority for us. Our adjusted core non-interest expense*, which excludes certain one-time items, declined from the core non-interest expense in the prior quarter. We expect the investments made in recruiting the new banking teams will produce significant benefits by increasing our net interest income and net interest margin primarily through lowering our interest expense costs as well as improving the overall quality of our deposit franchise. Operating efficiency has and will continue to be a differentiator of our business model, and we will continue to only make investments that generate long-term positive operating leverage and enable the organization to operate at a mid-40’s efficiency ratio. The onboarding of our new banking teams will elevate our efficiency ratio temporarily, but we are confident in our ability to operate with a mid-40’s efficiency ratio over the medium term. We remain committed to maintaining a CET 1 ratio around 11.5% in 2024, and growing our TCE / TA ratio* to 7.5%. We are highly focused on preserving superior credit quality, managing interest rate risk, maintaining robust liquidity, operating with higher capital ratios and generating positive operating leverage,” concluded Sam Sidhu.

















*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.
1 Total deposits excluding wholesale CDs and BMTX student-related deposits.
12

Webcast
Date:            Friday, April 26, 2024        
Time:            9:00 AM EDT
The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 1st Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Communications Director, David Patti at dpatti@customersbank.com.
The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with nearly $22 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:
•No. 5 on American Banker 2023 list of top-performing banks with $10B to $50B in assets
•No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list
•No. 52 on Investor’s Business Daily 100 Best Stocks for 2023
A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.
“Safe Harbor” Statement
In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments, the impact of COVID-19 and its variants 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
13

takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2023, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.
14

Q1 2024 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended March 31, 2024 and the preceding four quarters:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share data and stock price data)
Q1Q4Q3Q2Q1
20242023202320232023
GAAP Profitability Metrics:
Net income available to common shareholders
$45,926 $58,223 $82,953 $44,007 $50,265 
Per share amounts:
Earnings per share - basic
$1.46 $1.86 $2.65 $1.41 $1.58 
Earnings per share - diluted$1.40 $1.79 $2.58 $1.39 $1.55 
Book value per common share (1)
$49.29 $47.73 $45.47 $42.16 $41.08 
CUBI stock price (1)
$53.06 $57.62 $34.45 $30.26 $18.52 
CUBI stock price as % of book value (1)
108 %121 %76 %72 %45 %
Average shares outstanding - basic31,473,424 31,385,043 31,290,581 31,254,125 31,819,203 
Average shares outstanding - diluted32,854,534 32,521,787 32,175,084 31,591,142 32,345,017 
Shares outstanding (1)
31,521,931 31,440,906 31,311,254 31,282,318 31,239,750 
Return on average assets (“ROAA”)
0.94 %1.16 %1.57 %0.88 %1.03 %
Return on average common equity (“ROCE”)
12.08 %15.93 %23.97 %13.22 %16.00 %
Net interest margin, tax equivalent 3.10 %3.31 %3.70 %3.15 %2.96 %
Efficiency ratio54.58 %49.08 %41.01 %49.25 %47.71 %
Non-GAAP Profitability Metrics (2):
Core earnings$46,532 $61,633 $83,294 $52,163 $51,143 
Core pre-tax pre-provision net income
$83,674 $101,884 $128,564 $96,833 $89,282 
Per share amounts:
Core earnings per share - diluted$1.42 $1.90 $2.59 $1.65 $1.58 
Tangible book value per common share (1)
$49.18 $47.61 $45.36 $42.04 $40.96 
CUBI stock price as % of tangible book value (1)
108 %121 %76 %72 %45 %
Core ROAA0.95 %1.22 %1.57 %1.03 %1.05 %
Core ROCE12.24 %16.87 %24.06 %15.67 %16.28 %
Core pre-tax pre-provision ROAA
1.58 %1.90 %2.32 %1.79 %1.72 %
Core pre-tax pre-provision ROCE
21.01 %26.82 %36.04 %28.01 %27.33 %
Core efficiency ratio54.24 %46.70 %41.04 %47.84 %47.09 %
Asset Quality:
Net charge-offs $17,968 $17,322 $17,498 $15,564 $18,651 
Annualized net charge-offs to average total loans and leases0.55 %0.51 %0.50 %0.42 %0.49 %
Non-performing loans (“NPLs”) to total loans and leases (1)
0.27 %0.21 %0.22 %0.20 %0.21 %
Reserves to NPLs (1)
373.86 %499.12 %466.11 %494.46 %405.56 %
Non-performing assets (“NPAs”) to total assets
0.17 %0.13 %0.14 %0.13 %0.15 %
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets14.0 %13.77 %12.97 %11.96 %11.31 %
Tier 1 capital to risk-weighted assets 14.0 %13.77 %12.97 %11.96 %11.31 %
Total capital to risk-weighted assets 15.7 %15.28 %14.45 %13.38 %12.64 %
Tier 1 capital to average assets (leverage ratio) 8.8 %8.71 %8.25 %8.00 %8.09 %
(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 Q1 2024 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of March 31, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.

15

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)
Q1Q4Q3Q2Q1
20242023202320232023
Interest income:
Loans and leases$217,999 $239,453 $271,107 $241,745 $244,212 
Investment securities46,802 51,074 54,243 48,026 47,316 
Interest earning deposits52,817 44,104 43,800 27,624 10,395 
Loans held for sale12,048 8,707 4,664 11,149 11,701 
Other2,111 2,577 2,526 1,616 1,321 
Total interest income331,777 345,915 376,340 330,160 314,945 
Interest expense:
Deposits153,725 150,307 145,825 136,375 143,930 
FHLB advances13,485 18,868 26,485 24,285 10,370 
FRB advances— — — — 6,286 
Subordinated debt2,689 2,688 2,689 2,689 2,689 
Other borrowings1,493 1,546 1,568 1,540 1,771 
Total interest expense171,392 173,409 176,567 164,889 165,046 
Net interest income160,385 172,506 199,773 165,271 149,899 
Provision for credit losses17,070 13,523 17,856 23,629 19,603 
Net interest income after provision for credit losses143,315 158,983 181,917 141,642 130,296 
Non-interest income:
Commercial lease income9,683 9,035 8,901 8,917 9,326 
Loan fees5,280 5,926 6,029 4,271 3,990 
Bank-owned life insurance 3,261 2,160 1,973 4,997 2,647 
Mortgage finance transactional fees946 927 1,018 1,376 1,074 
Gain (loss) on sale of loans10 (91)(348)(761)— 
Loss on sale of capital call lines of credit— — — (5,037)— 
Net gain (loss) on sale of investment securities(30)(145)(429)— — 
Other2,081 860 631 2,234 1,084 
Total non-interest income21,231 18,672 17,775 15,997 18,121 
Non-interest expense:
Salaries and employee benefits36,025 33,965 33,845 33,120 32,345 
Technology, communication and bank operations21,904 16,887 15,667 16,407 16,589 
Commercial lease depreciation7,970 7,357 7,338 7,328 7,875 
Professional services6,353 9,820 8,569 9,192 7,596 
Loan servicing4,031 3,779 3,858 4,777 4,661 
Occupancy2,347 2,320 2,471 2,519 2,760 
FDIC assessments, non-income taxes and regulatory fees13,469 13,977 8,551 9,780 2,728 
Advertising and promotion682 850 650 546 1,049 
Legal settlement expense— — 4,096 — — 
Other6,388 4,812 4,421 5,628 4,530 
Total non-interest expense99,169 93,767 89,466 89,297 80,133 
Income before income tax expense65,377 83,888 110,226 68,342 68,284 
Income tax expense15,651 21,796 23,470 20,768 14,563 
Net income49,726 62,092 86,756 47,574 53,721 
Preferred stock dividends3,800 3,869 3,803 3,567 3,456 
Net income available to common shareholders$45,926 $58,223 $82,953 $44,007 $50,265 
Basic earnings per common share$1.46 $1.86 $2.65 $1.41 $1.58 
Diluted earnings per common share 1.40 1.79 2.58 1.39 1.55 
16

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
ASSETS
Cash and due from banks$51,974 $45,210 $68,288 $54,127 $77,251 
Interest earning deposits3,649,146 3,801,136 3,351,686 3,101,097 1,969,434 
Cash and cash equivalents3,701,120 3,846,346 3,419,974 3,155,224 2,046,685 
Investment securities, at fair value2,604,868 2,405,640 2,773,207 2,824,638 2,926,969 
Investment securities held to maturity1,032,037 1,103,170 1,178,370 1,258,560 870,294 
Loans held for sale357,640 340,317 150,368 78,108 424,057 
Loans and leases receivable11,936,621 11,963,855 12,600,548 12,826,531 13,391,610 
Loans receivable, mortgage finance, at fair value962,610 897,912 962,566 1,006,268 1,247,367 
Allowance for credit losses on loans and leases(133,296)(135,311)(139,213)(139,656)(130,281)
Total loans and leases receivable, net of allowance for credit losses on loans and leases12,765,935 12,726,456 13,423,901 13,693,143 14,508,696 
FHLB, Federal Reserve Bank, and other restricted stock100,067 109,548 126,098 126,240 124,733 
Accrued interest receivable120,123 114,766 123,984 119,501 123,754 
Bank premises and equipment, net7,253 7,371 7,789 8,031 8,581 
Bank-owned life insurance293,400 292,193 291,670 290,322 339,607 
Goodwill and other intangibles3,629 3,629 3,629 3,629 3,629 
Other assets361,295 366,829 358,162 471,169 374,609 
Total assets$21,347,367 $21,316,265 $21,857,152 $22,028,565 $21,751,614 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand, non-interest bearing deposits$4,688,880 $4,422,494 $4,758,682 $4,490,198 $3,487,517 
Interest bearing deposits13,272,503 13,497,742 13,436,682 13,460,233 14,236,100 
Total deposits17,961,383 17,920,236 18,195,364 17,950,431 17,723,617 
FHLB advances1,195,088 1,203,207 1,529,839 2,046,142 2,052,143 
Other borrowings123,905 123,840 123,775 123,710 123,645 
Subordinated debt182,300 182,230 182,161 182,091 182,021 
Accrued interest payable and other liabilities193,074 248,358 264,406 269,539 249,168 
Total liabilities19,655,750 19,677,871 20,295,545 20,571,913 20,330,594 
Preferred stock137,794 137,794 137,794 137,794 137,794 
Common stock35,540 35,459 35,330 35,301 35,258 
Additional paid in capital567,490 564,538 559,346 555,737 552,255 
Retained earnings1,205,508 1,159,582 1,101,359 1,018,406 974,399 
Accumulated other comprehensive income (loss), net(132,305)(136,569)(149,812)(168,176)(156,276)
Treasury stock, at cost(122,410)(122,410)(122,410)(122,410)(122,410)
Total shareholders’ equity1,691,617 1,638,394 1,561,607 1,456,652 1,421,020 
Total liabilities and shareholders’ equity$21,347,367 $21,316,265 $21,857,152 $22,028,565 $21,751,614 

17

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
March 31, 2024December 31, 2023March 31, 2023
Average BalanceInterest Income or Expense
Average Yield or Cost (%)
Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)
Assets
Interest earning deposits $3,865,028 $52,817 5.50%$3,191,677 $44,104 5.48%$914,149 $10,395 4.61%
Investment securities (1)
3,771,097 46,802 4.99%4,007,418 51,074 5.10%4,031,247 47,316 4.69%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases (2)
5,268,345 115,590 8.82%5,574,149 130,838 9.31%5,694,168 103,688 7.38%
Other commercial & industrial loans (2)(3)
1,654,665 26,714 6.49%1,666,052 28,053 6.68%2,594,440 49,121 7.68%
Mortgage finance loans1,033,177 12,830 4.99%997,353 13,726 5.46%1,262,139 17,412 5.59%
Multifamily loans2,121,650 21,255 4.03%2,131,750 22,347 4.16%2,206,600 20,470 3.76%
Non-owner occupied commercial real estate loans1,348,468 20,179 6.02%1,392,684 20,686 5.89%1,449,722 20,199 5.65%
Residential mortgages522,528 5,708 4.39%526,422 5,942 4.48%542,909 5,598 4.18%
Installment loans1,179,721 27,771 9.47%1,198,043 26,568 8.80%1,727,995 39,425 9.25%
Total loans and leases (4)
13,128,554 230,047 7.05%13,486,453 248,160 7.30%15,477,973 255,913 6.70%
Other interest-earning assets107,525 2,111 7.90%116,756 2,577 8.75%91,308 1,321 5.87%
Total interest-earning assets20,872,204 331,777 6.39%20,802,304 345,915 6.61%20,514,677 314,945 6.21%
Non-interest-earning assets463,025 449,969 538,243 
Total assets $21,335,229 $21,252,273 $21,052,920 
Liabilities
Interest checking accounts$5,538,846 $61,531 4.47%$5,656,212 $62,041 4.35%$7,494,379 $70,485 3.81%
Money market deposit accounts3,233,103 36,811 4.58%2,802,309 29,990 4.25%2,470,004 20,783 3.41%
Other savings accounts1,753,118 21,399 4.91%1,218,118 13,849 4.51%822,312 6,286 3.10%
Certificates of deposit2,750,788 33,984 4.97%3,625,311 44,427 4.86%4,504,333 46,376 4.18%
Total interest-bearing deposits (5)
13,275,855 153,725 4.66%13,301,950 150,307 4.48%15,291,028 143,930 3.82%
Federal funds purchased— — —%— — —%15,333 188 4.97%
Borrowings1,506,707 17,667 4.72%1,816,047 23,102 5.05%1,788,116 20,928 4.75%
Total interest-bearing liabilities14,782,562 171,392 4.66%15,117,997 173,409 4.55%17,094,477 165,046 3.91%
Non-interest-bearing deposits (5)
4,620,986 4,270,557 2,299,295 
Total deposits and borrowings19,403,548 3.55%19,388,554 3.55%19,393,772 3.45%
Other non-interest-bearing liabilities264,677 276,198 247,575 
Total liabilities 19,668,225 19,664,752 19,641,347 
Shareholders’ equity1,667,004 1,587,521 1,411,573 
Total liabilities and shareholders’ equity$21,335,229 $21,252,273 $21,052,920 
Net interest income160,385 172,506 149,899 
Tax-equivalent adjustment394 398 375 
Net interest earnings$160,779 $172,904 $150,274 
Interest spread2.84%3.06%2.76%
Net interest margin3.09%3.30%2.95%
Net interest margin tax equivalent (6)
3.10%3.31%2.96%
(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.45%, 3.39% and 3.32% for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, presented to approximate interest income as a taxable asset.
18

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
Loans and leases held for investment
Commercial:
Commercial & industrial:
Specialized lending$5,104,405 $5,006,693 $5,422,161 $5,534,832 $5,519,176 
Other commercial & industrial (1)
1,113,517 1,162,317 1,252,427 1,240,908 1,414,419 
Mortgage finance
1,071,146 1,014,742 1,042,549 1,108,598 1,374,894 
Multifamily2,123,675 2,138,622 2,130,213 2,151,734 2,195,211 
Commercial real estate owner occupied806,278 797,319 794,815 842,042 895,314 
Commercial real estate non-owner occupied1,182,084 1,177,650 1,178,203 1,211,091 1,245,248 
Construction185,601 166,393 252,588 212,214 188,123 
Total commercial loans and leases11,586,706 11,463,736 12,072,956 12,301,419 12,832,385 
Consumer:
Residential482,537 484,435 483,133 487,199 494,815 
Manufactured housing37,382 38,670 40,129 41,664 43,272 
Installment:
Personal492,892 555,533 629,843 752,470 849,420 
Other299,714 319,393 337,053 250,047 419,085 
Total installment loans792,606 874,926 966,896 1,002,517 1,268,505 
Total consumer loans1,312,525 1,398,031 1,490,158 1,531,380 1,806,592 
Total loans and leases held for investment$12,899,231 $12,861,767 $13,563,114 $13,832,799 $14,638,977 
Loans held for sale
Commercial:
Multifamily$— $— $— $— $4,051 
Commercial real estate non-owner occupied— — — — 16,000 
Total commercial loans and leases— — — — 20,051 
Consumer:
Residential870 1,215 1,005 1,234 821 
Installment:
Personal137,755 151,040 124,848 76,874 307,336 
Other219,015 188,062 24,515 — 95,849 
Total installment loans356,770 339,102 149,363 76,874 403,185 
Total consumer loans357,640 340,317 150,368 78,108 404,006 
Total loans held for sale$357,640 $340,317 $150,368 $78,108 $424,057 
Total loans and leases portfolio$13,256,871 $13,202,084 $13,713,482 $13,910,907 $15,063,034 
(1)    Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
March 31,December 31,September 30,June 30,March 31,
20242023202320232023
Demand, non-interest bearing$4,688,880 $4,422,494 $4,758,682 $4,490,198 $3,487,517 
Demand, interest bearing5,661,775 5,580,527 5,824,410 5,551,037 5,791,302 
Total demand deposits10,350,655 10,003,021 10,583,092 10,041,235 9,278,819 
Savings2,080,374 1,402,941 1,118,353 1,048,229 924,359 
Money market3,347,843 3,226,395 2,499,593 2,004,264 2,019,633 
Time deposits2,182,511 3,287,879 3,994,326 4,856,703 5,500,806 
Total deposits$17,961,383 $17,920,236 $18,195,364 $17,950,431 $17,723,617 

19


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)As of March 31, 2024As of December 31, 2023As of March 31, 2023
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 specialized lending (1)
$6,326,458 $3,608 $23,003 0.06 %637.56 %$6,285,840 $4,436 $23,503 0.07 %529.82 %$7,061,122 $3,886 $20,050 0.06 %515.95 %
Multifamily2,123,675 5,161 18,307 0.24 %354.72 %2,138,622 — 16,343 — %— %2,195,211 881 15,084 0.04 %1712.15 %
Commercial real estate owner occupied806,278 8,920 10,201 1.11 %114.36 %797,319 5,869 9,882 0.74 %168.38 %895,314 3,621 8,472 0.40 %233.97 %
Commercial real estate non-owner occupied1,182,084 62 18,320 0.01 %29548.39 %1,177,650 — 16,859 — %— %1,245,248 — 11,032 — %— %
Construction185,601 — 1,866 — %— %166,393 — 1,482 — %— %188,123 — 2,336 — %— %
Total commercial loans and leases receivable10,624,096 17,751 71,697 0.17 %403.90 %10,565,824 10,305 68,069 0.10 %660.54 %11,585,018 8,388 56,974 0.07 %679.23 %
Residential482,537 8,089 6,707 1.68 %82.92 %484,435 6,802 6,586 1.40 %96.82 %494,815 6,473 6,853 1.31 %105.87 %
Manufactured housing37,382 2,268 4,160 6.07 %183.42 %38,670 2,331 4,239 6.03 %181.85 %43,272 2,568 4,339 5.93 %168.96 %
Installment792,606 6,958 50,732 0.88 %729.12 %874,926 7,211 56,417 0.82 %782.37 %1,268,505 8,720 62,115 0.69 %712.33 %
Total consumer loans receivable1,312,525 17,315 61,599 1.32 %355.76 %1,398,031 16,344 67,242 1.17 %411.42 %1,806,592 17,761 73,307 0.98 %412.74 %
Loans and leases receivable
11,936,621 35,066 133,296 0.29 %380.13 %11,963,855 26,649 135,311 0.22 %507.75 %13,391,610 26,149 130,281 0.20 %498.23 %
Loans receivable, mortgage finance, at fair value962,610 — — — %— %897,912 — — — %— %1,247,367 — — — %— %
Loans held for sale357,640 588 — 0.16 %— %340,317 461 — 0.14 %— %424,057 5,975 — 1.41 %— %
Total portfolio$13,256,871 $35,654 $133,296 0.27 %373.86 %$13,202,084 $27,110 $135,311 0.21 %499.12 %$15,063,034 $32,124 $130,281 0.21 %405.56 %
(1)    Includes PPP loans.
20


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
Q1Q4Q3Q2Q1
2024
2023
2023
2023 (1)
2023
Loan type
Commercial & industrial, including specialized lending$3,672 $5,282 $2,974 $258 $(71)
Multifamily473 127 1,999 1,448 — 
Commercial real estate owner occupied22 — 39 (34)— 
Commercial real estate non-owner occupied— (288)— 266 4,234 
Construction— — — — (116)
Residential18 (1)13 24 (2)
Installment13,783 12,202 12,473 13,602 14,606 
Total net charge-offs (recoveries) from loans held for investment$17,968 $17,322 $17,498 $15,564 $18,651 
(1)    Excludes $6.2 million of charge-offs for certain PCD loans acquired from the FDIC that were immediately applied against $8.7 million of allowance for credit losses on PCD loans recognized upon the acquisition of the loan portfolio on June 15, 2023. Subsequent recoveries and charge-offs of these PCD loans will be included in the period in which they occur.
21


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED
We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.
The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.

Core Earnings and Adjusted Core Earnings - Customers Bancorp
Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
(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$45,926 $1.40 $58,223 $1.79 $82,953 $2.58 $44,007 $1.39 $50,265 $1.55 
Reconciling items (after tax):
Severance expense— — 473 0.01 — — 141 0.00 637 0.02 
Impairments on fixed assets and leases— — — — — — 12 0.00 86 0.00 
Loss on sale of capital call lines of credit— — — — — — 3,914 0.12 — — 
(Gains) losses on investment securities57 0.00 (85)0.00 492 0.02 49 0.00 (49)0.00 
Derivative credit valuation adjustment169 0.01 267 0.01 (151)0.00 (101)0.00 204 0.01 
Tax on surrender of bank-owned life insurance policies— — — — — — 4,141 0.13 — — 
FDIC special assessment380 0.01 2,755 0.08 — — — — — — 
Core earnings$46,532 $1.42 $61,633 $1.90 $83,294 $2.59 $52,163 $1.65 $51,143 $1.58 
One-time non-interest expense items recorded during Q1 2024 (after-tax):
Deposit servicing fees prior to 2024
5,405 0.16 
FDIC premiums prior to 2024
3,200 0.10 
Total one-time non-interest expense items
8,605 0.26 
Adjusted core earnings (adjusted for one-time non-interest expense items)
$55,137 $1.68 



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 and Adjusted Core Return on Average Assets - Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP net income$49,726 $62,092 $86,756 $47,574 $53,721 
Reconciling items (after tax):
Severance expense— 473 — 141 637 
Impairments on fixed assets and leases— — — 12 86 
Loss on sale of capital call lines of credit— — — 3,914 — 
(Gains) losses on investment securities57 (85)492 49 (49)
Derivative credit valuation adjustment169 267 (151)(101)204 
Tax on surrender of bank-owned life insurance policies— — — 4,141 — 
FDIC special assessment380 2,755 — — — 
Core net income
$50,332 $65,502 $87,097 $55,730 $54,599 
One-time non-interest expense items recorded during Q1 2024 (after-tax):
Deposit servicing fees prior to 2024
5,405 
FDIC premiums prior to 2024
3,200 
Total one-time non-interest expense items
8,605 
Adjusted core net income (adjusted for one-time non-interest expense items)
$58,937 
Average total assets
$21,335,229 $21,252,273 $21,978,010 $21,654,735 $21,052,920 
Core return on average assets0.95 %1.22 %1.57 %1.03 %1.05 %
Adjusted core return on average assets (adjusted for one-time non-interest expense items)
1.11 %

Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP net income$49,726 $62,092 $86,756 $47,574 $53,721 
Reconciling items:
Income tax expense
15,651 21,796 23,470 20,768 14,563 
Provision (benefit) for credit losses
17,070 13,523 17,856 23,629 19,603 
Provision (benefit) for credit losses on unfunded commitments430 (136)48 (304)280 
Severance expense— 639 — 182 809 
Impairments on fixed assets and leases— — — 15 109 
Loss on sale of capital call lines of credit— — — 5,037 — 
(Gains) losses on investment securities75 (114)626 62 (62)
Derivative credit valuation adjustment222 361 (192)(130)259 
FDIC special assessment500 3,723 — — — 
Core pre-tax pre-provision net income
$83,674 $101,884 $128,564 $96,833 $89,282 
One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024
7,106 
FDIC premiums prior to 2024
4,208 
Total one-time non-interest expense items
11,314 
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)
$94,988 
Average total assets
$21,335,229 $21,252,273 $21,978,010 $21,654,735 $21,052,920 
Core pre-tax pre-provision ROAA
1.58 %1.90 %2.32 %1.79 %1.72 %
Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)
1.79 %
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 and Adjusted Core Return on Average Common Equity - Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP net income to common shareholders$45,926 $58,223 $82,953 $44,007 $50,265 
Reconciling items (after tax):
Severance expense— 473 — 141 637 
Impairments on fixed assets and leases— — — 12 86 
Loss on sale of capital call lines of credit— — — 3,914 — 
(Gains) losses on investment securities57 (85)492 49 (49)
Derivative credit valuation adjustment169 267 (151)(101)204 
Tax on surrender of bank-owned life insurance policies— — — 4,141 — 
FDIC special assessment380 2,755 — — — 
Core earnings$46,532 $61,633 $83,294 $52,163 $51,143 
One-time non-interest expense items recorded during Q1 2024 (after-tax):
Deposit servicing fees prior to 2024
5,405 
FDIC premiums prior to 2024
3,200 
Total one-time non-interest expense items
8,605 
Adjusted core earnings (adjusted for one-time non-interest expense items)
$55,137 
Average total common shareholders’ equity
$1,529,211 $1,449,728 $1,373,244 $1,335,408 $1,273,780 
Core return on average common equity12.24 %16.87 %24.06 %15.67 %16.28 %
Adjusted core return on average common equity (adjusted for one-time non-interest expense items)
14.50 %


Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP net income to common shareholders$45,926 $58,223 $82,953 $44,007 $50,265 
Reconciling items:
Income tax expense
15,651 21,796 23,470 20,768 14,563 
Provision (benefit) for credit losses
17,070 13,523 17,856 23,629 19,603 
Provision (benefit) for credit losses on unfunded commitments430 (136)48 (304)280 
Severance expense— 639 — 182 809 
Impairments on fixed assets and leases— — — 15 109 
Loss on sale of capital call lines of credit— — — 5,037 — 
(Gains) losses on investment securities75 (114)626 62 (62)
Derivative credit valuation adjustment222 361 (192)(130)259 
FDIC special assessment500 3,723 — — — 
Core pre-tax pre-provision net income available to common shareholders
$79,874 $98,015 $124,761 $93,266 $85,826 
One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024
7,106 
FDIC premiums prior to 2024
4,208 
Total one-time non-interest expense items
11,314 
Adjusted core pre-tax pre-provision net income available to common shareholders
$91,188 
Average total common shareholders’ equity
$1,529,211 $1,449,728 $1,373,244 $1,335,408 $1,273,780 
Core pre-tax pre-provision ROCE
21.01 %26.82 %36.04 %28.01 %27.33 %
Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)
23.98 %
24


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP net interest income$160,385 $172,506 $199,773 $165,271 $149,899 
GAAP non-interest income$21,231 $18,672 $17,775 $15,997 $18,121 
Loss on sale of capital call lines of credit— — — 5,037 — 
(Gains) losses on investment securities75 (114)626 62 (62)
Derivative credit valuation adjustment222 361 (192)(130)259 
Core non-interest income21,528 18,919 18,209 20,966 18,318 
Core revenue$181,913 $191,425 $217,982 $186,237 $168,217 
GAAP non-interest expense$99,169 $93,767 $89,466 $89,297 $80,133 
Severance expense— (639)— (182)(809)
Impairments on fixed assets and leases— — — (15)(109)
FDIC special assessment(500)(3,723)— — — 
Core non-interest expense$98,669 $89,405 $89,466 $89,100 $79,215 
One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024
(7,106)
FDIC premiums prior to 2024
(4,208)
Total one-time non-interest expense items
(11,314)
Adjusted core non-interest expense
$87,355 
Core efficiency ratio (1)
54.24 %46.70 %41.04 %47.84 %47.09 %
Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)
48.02 %
(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.
(2) Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue.


Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP non-interest expense$99,169 $93,767 $89,466 $89,297 $80,133 
Severance expense— (639)— (182)(809)
Impairments on fixed assets and leases— — — (15)(109)
FDIC special assessment(500)(3,723)— — — 
Core non-interest expense$98,669 $89,405 $89,466 $89,100 $79,215 
One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024(7,106)
FDIC premiums prior to 2024(4,208)
Total one-time non-interest expense items(11,314)
Adjusted core non-interest expense
$87,355 
Average total assets
$21,335,229 $21,252,273 $21,978,010 $21,654,735 $21,052,920 
Core non-interest expense to average total assets
1.86 %1.67 %1.62 %1.65 %1.53 %
Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items)
1.65 %
25


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

Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
Total deposits$17,961,383 $17,920,236 $18,195,364 $17,950,431 $17,723,617 
Reconciling items:
Wholesale CDs1,809,573 2,970,615 3,713,933 4,651,054 5,311,083 
BMTX student deposits850 1,157 636,951 407,118 506,922 
Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits)
$16,150,960 $14,948,464 $13,844,480 $12,892,259 $11,905,612 


Tangible Common Equity to Tangible Assets - Customers Bancorp
(Dollars in thousands, except per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP total shareholders’ equity
$1,691,617 $1,638,394 $1,561,607 $1,456,652 $1,421,020 
Reconciling items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(137,794)
   Goodwill and other intangibles(3,629)(3,629)(3,629)(3,629)(3,629)
Tangible common equity$1,550,194 $1,496,971 $1,420,184 $1,315,229 $1,279,597 
GAAP total assets$21,347,367 $21,316,265 $21,857,152 $22,028,565 $21,751,614 
Reconciling items:
Goodwill and other intangibles(3,629)(3,629)(3,629)(3,629)(3,629)
Tangible assets$21,343,738 $21,312,636 $21,853,523 $22,024,936 $21,747,985 
Tangible common equity to tangible assets7.3 %7.0 %6.5 %6.0 %5.9 %


Tangible Book Value per Common Share - Customers Bancorp
(Dollars in thousands, except share and per share data)Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023
GAAP total shareholders’ equity
$1,691,617 $1,638,394 $1,561,607 $1,456,652 $1,421,020 
Reconciling Items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(137,794)
   Goodwill and other intangibles(3,629)(3,629)(3,629)(3,629)(3,629)
Tangible common equity$1,550,194 $1,496,971 $1,420,184 $1,315,229 $1,279,597 
Common shares outstanding31,521,931 31,440,906 31,311,254 31,282,318 31,239,750 
Tangible book value per common share$49.18 $47.61 $45.36 $42.04 $40.96 
26