Thursday, December 1 2022

WEST READING, Pa.–(BUSINESS WIRE)–Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively “Customers” or “CUBI”), today released a mid-quarter financial update highlighting what follows:

  • Management expects to meet or exceed base EPS guidance of $4.75-$5.00 (excluding PPP) for full year 2022

    • Tangible book value per share expected to exceed $40 by year-end 2022

    • Return on equity should be above 17% for the whole of 2022

  • Credit trends remain stable with no noticeable deterioration in credit despite economic tightening

    • NPL/Total Loans: 0.25% as of May 31, 2022 versus 0.31% as of March 31, 2022

    • Unpaid 30-89 days: 0.27% as of May 31, 2022 compared to 0.25% as of March 31, 2022

  • Year-to-date (“QTD”) loan growth (excluding PPP) exceeded $1.5 billion, driven by our well-structured low credit risk specialty lending verticals

    • Over 98% of growth came from commercial lending, with 72% coming from specialty lending verticals

    • Our new fund finance specialty lending vertical surpassed $1 billion in outstanding balances this quarter

  • QTD deposit growth topped $1 billion

    • CBIT/Digital Asset deposits flat and expected to grow in Q2 2022

  • Our portfolio of AFS securities was $3.8 billion as of May 31, 2022

    • The portfolio has a short duration of approximately 2.1 years, an average yield of approximately 2.5% and approximately 50% of the securities are floating rate

    • Approximately 0 million of available-for-sale securities have been reclassified as held-to-maturity securities in June 2022

    • We do not expect any other material negative impact on the book value of AOCI in the coming quarters.

  • ~549,000 shares repurchased from QTD at average price below $40

  • We remain moderately sensitive to assets in a rapidly rising interest rate environment

Institutional context

Customers Bancorp, Inc. (NYSE: CUBI) is a West Reading, Pennsylvania-based bank holding company engaged in banking and related businesses through its banking subsidiary, Customers Bank, a full-service bank with 19 $.2 billion in assets as of March 31, 2022. A member of the Federal Reserve with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that offers a range of banking and lending services small and medium-sized businesses, professionals, individuals and families. Services and products are available wherever permitted by law through mobile applications, online portals and a network of offices and branches. Customers Bank provides blockchain-based digital payments through the Customers Bank Instant Token (CBIT MT) which allows customers to make real-time payments in US dollars, 24 hours a day, 7 days a week, 365 days a year.

Safe Harbor Declaration

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. Such forward-looking statements include statements regarding Customers Bancorp, Strategies , Inc.’s objectives, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, performance and future activities. Statements preceded, followed by or containing the words “may”, “could”, “should”, “pro forma”, “looks 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 a variety of important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Many competitive, economic, regulatory, legal, technological and other events and factors could cause the financial performance of Customers Bancorp, Inc. to differ materially from the goals, plans, objectives, intentions and expectations expressed in these forward-looking statements, including: the impact of the ongoing pandemic on the US 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 securities, the continued success and acceptance of our blockchain payment system, demand for our products and services and the availability of funding sources; the effects of actions by the federal government, including the Federal Reserve Board of Governors and other government agencies, that affect market interest rates and the money supply; the actions we and our customers take in response to these developments and the effects these actions have on our operations, products, services and customer relationships; and the effects of any changes in accounting standards or policies. Clients Bancorp, Inc. cautions that the foregoing factors are not exclusive and that neither these factors nor any such forward-looking statements take into account the impact of 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 relating to our business, we encourage you 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 fiscal year ended December 31, 2021, then filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including any amendments thereto, which update or provide information in addition to the information included in Form 10-K and Form 10-Q filings, if applicable. Customers Bancorp, Inc. does not undertake to update any forward-looking statements, written or oral, which 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. right.


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