Condensed Financial Statements of Parent Company

12 Months Ended

Dec. 31, 2015

CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY

The following tables present the condensed financial statements for Customers Bancorp, Inc. (parent company only)

Balance Sheets



	December 31,
	2015		2014
(amounts in thousands)
Assets
Cash in subsidiary bank	$	54,567	$	16,465
Investment securities available for sale, at fair value	5		5
Investments in and receivables due from subsidiaries	583,875		509,465
Other assets	4,190		6,678
Total assets	$	642,637	$	532,613
Liabilities and Shareholders’ equity
Borrowings	88,250		88,250
Other liabilities	485		1,218
Total liabilities	88,735		89,468
Shareholders’ equity	553,902		443,145
Total Liabilities and Shareholders’ Equity	$	642,637	$	532,613

Income and Comprehensive Income Statements



	For the Years Ended December 31,
	2015		2014			2013
(amounts in thousands)
Operating income:
Other	$	18,545	$	90		$	758
Total operating income	18,545		90			758
Operating expense:
Interest	5,854		5,251			1,923
Other	4,604		5,611			3,395
Total operating expense	10,458		10,862			5,318
Income (loss) before taxes and undistributed income of subsidiaries	8,087		(10,772		)	(4,560		)
Income tax benefit	3,516		3,797			1,596
Income (loss) before undistributed income of subsidiaries	11,603		(6,975		)	(2,964		)
Equity in undistributed income of subsidiaries	46,980		50,189			35,658
Net income	58,583		43,214			32,694
Preferred stock dividends	2,493		—			—
Net income available to common shareholders	56,090		43,214			32,694
Comprehensive income	$	50,721	$	51,210		$	23,512

Statements of Cash Flows



	For the Years Ended December 31,
	2015			2014			2013
(amounts in thousands)
Cash Flows from Operating Activities:
Net income	$	58,583		$	43,214		$	32,694
Adjustments to reconcile net income to net cash used in operating activities:
Equity in undistributed earnings of subsidiaries, net of dividends received from Bank	(46,980		)	(50,189		)	(35,658		)
(Increase) decrease in other assets	2,488			(1,354		)	(1,465		)
Increase (decrease) in other liabilities	(112		)	1,497			(281		)
Net Cash Provided By (Used in) Operating Activities	13,979			(6,832		)	(4,710		)
Cash Flows from Investing Activities:
Purchases of investment securities available for sale	—			—			—
Payments for investments in and advances to subsidiaries	(30,036		)	(15,032		)	(177,068		)
Net Cash Used in Investing Activities	(30,036		)	(15,032		)	(177,068		)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock	904			77			97,507
Proceeds from issuance of preferred stock	55,569			—			—
Proceeds from issuance of long-term debt	—			25,000			60,336
Exercise and redemption of warrants	—			6			264
Payments on partial shares for stock dividend	—			(8		)	—
Preferred stock dividends paid	(2,314		)	—			—
Purchase of treasury stock	—			—			(7,754		)
Net Cash Provided by Financing Activities	54,159			25,075			150,353
Net Increase (Decrease) in Cash and Cash Equivalents	38,102			3,211			(31,425		)
Cash and Cash Equivalents – Beginning	16,465			13,254			44,679
Cash and Cash Equivalents – Ending	$	54,567		$	16,465		$	13,254