Customers Bancorp Reports Record Earnings
WYOMISSING, PA -- (Marketwired) -- 04/28/15 --
• Q1 2015 Net Income up 71.5%, and EPS up 69.0%, over Q1 2014
• Q1 2015 Return on Equity of 12.5%
• Tangible Book Value up 13.9% from Q1 2014 to $16.94 per share
Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively "Customers"), reported earnings of $14.0 million for the quarter ended March 31, 2015 ("Q1 2015") compared to earnings of $8.1 million for the quarter ended March 31, 2014 ("Q1 2014"), an increase of $5.8 million, or 71.5%. Fully diluted earnings per share for Q1 2015 was $0.49 compared to $0.29 fully diluted earnings per share for Q1 2014, an increase of $0.20 per share, or 69.0%. Average fully diluted shares for Q1 2015 were 28.3 million compared to average fully diluted shares for Q1 2014 of 27.8 million.
Jay Sidhu, Chairman and CEO of Customers stated, "Our record setting first quarter 2015 financial performance results from our strong banking franchise built upon our strategies of creating a high quality loan portfolio funded by a stable deposit platform, using technology to deliver high quality "single point of contact" service and create a lower cost infrastructure, and hiring highly experienced banking professionals to accelerate our growth while controlling our risks. The strong Q1 2015 performance demonstrates the value inherent in our strategies as well as our commitment to shareholder value creation, and sets the stage for a record 2015."
Other financial and business highlights for Q1 2015 include:
- Customers achieved a return on common equity of 12.5% in Q1 2015 compared to 8.4% in Q1 2014.
- Total loans, including loans held for sale, increased $2.0 billion, or 50.4%, to $6.1 billion as of March 31, 2015 compared to total loans as of March 31, 2014 of $4.1 billion.
- Total deposits in Q1 2015 increased $1.3 billion, or 35.7%, to $4.9 billion as of March 31, 2015 compared to total deposits as of March 31, 2014 of $3.6 billion.
- Q1 2015 net interest income of $46.3 million was up $16.5 million, or 55.5%, compared to Q1 2014 net interest income of $29.8 million.
- Non-performing loans reached their lowest level in six years. As of March 31, 2015, non-performing loans totaled $11.8 million, down $6.3 million, or 34.7%, compared to March 31, 2014 non-performing loans of $18.1 million. Other real estate owned as of March 31, 2015 of $13.1 million declined $2.5 million, or 16.2%, from March 31, 2014 other real estate owned of $15.7 million.
- The allowance for loan losses increased to $33.6 million at March 31, 2015, an increase of $6.9 million, or 25.7%, from $26.7 million at March 31, 2014, to support the loan growth and changes in loan mix. The Q1 2015 provision for loan losses was $3.0 million compared to $4.4 million in Q1 2014.
- The Q1 2015 efficiency ratio improved to 52.8% compared to 61.8% in Q1 2014.
- Customers adopted the Basel III capital ratio calculations effective January 1, 2015. Capital levels continue to exceed the "well-capitalized" thresholds established by regulation at both the holding company and bank.
- The tangible book value per share continued to increase, reaching $16.94 at March 31, 2015, compared to $16.43 at December 31, 2014 and $14.87 at March 31, 2014, an increase of 13.9% year-over-year.
- Customers launched Phase 1 of Bank Mobile in January 2015, an absolutely no customer fee mobile banking offering, and the first to allow opening of deposit accounts using smartphone technology.
Q1 2015 compared to Q4 2014:
Customers' Q1 2015 earnings of $14.0 million increased $0.8 million, or 5.9%, from the quarter ended December 31, 2014 ("Q4 2014"). The increase in Q1 2015 compared to Q4 2014 earnings results primarily from a $348 million increase in loan balances during Q1 2015, largely the result of increases in the mortgage warehouse product, which increased $342 million during Q1 2015. Net interest margin increased approximately 6 basis points in Q1 2015 compared to Q4 2014 as the result of action taken to maintain our loan pricing while modestly decreasing interest rates paid on money market deposits, receipt of early prepayment penalties on multi-family and commercial real estate loans, sale of lower yielding multi-family loans, cash payments received on purchased credit impaired loans in excess of expectations, and dividends received on FHLB Pittsburgh stock.
Other financial highlights for Q1 2015 compared to Q4 2014 include:
- Customers continued its planned strategy to moderate its balance sheet growth, with total assets increasing $308 million during Q1 2015 to $7.1 billion, a 4.5% increase.
- Total deposits in Q1 2015 increased by $360 million, or 7.9%, to $4.9 billion, including a $125 million increase in non-interest bearing demand deposit accounts, compared to total deposits of $4.5 billion at December 31, 2014.
- Multi-family loan sales totaled approximately $140 million in Q1 2015, generating a gain of approximately $1.2 million. Q1 2015 was the third consecutive quarter in which Customers sold $100 million to $150 million in multi-family loans.
- Asset quality continued to be outstanding with non-performing loans declining to 0.19% of total loans, and other real estate owned declining by approximately $2.2 million to $13.1 million, a 15% decrease.
- The Q1 2015 efficiency ratio improved to 52.8% compared to 54.9% in Q4 2014.
- Customers achieved a return on common equity of 12.5% in Q1 2015 compared to 11.9% in Q4 2014.
"Management and the Board are pleased with our Q1 2015 financial performance and the outlook for the remainder of 2015," stated Robert Wahlman, Chief Financial Officer of Customers Bancorp, Inc. "Our performance is driven by remaining true to our core strategies including emphasizing originating loans of high asset quality, limiting the growth of operational expenses by investing in new technology as a means to deliver quality service to our customers at a low cost, and hiring experienced bankers who can deliver growth and manage the risks of our business. Execution of these strategies is reflected in our increasing net interest income, strong asset quality, outstanding efficiency ratio, and improving profitability metrics."
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
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EARNINGS SUMMARY - UNAUDITED
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(Dollars in thousands, except per-share data)
Q1 Q4 Q1
2015 2014 2014
--------------------------------------
Net income available to common
shareholders $ 13,952 $ 13,178 $ 8,136
Basic earnings per share ("EPS") (1) $ 0.52 $ 0.49 $ 0.30
Diluted EPS (1) $ 0.49 $ 0.47 $ 0.29
Average shares outstanding - diluted
(1) 28,337,803 28,009,532 27,775,031
Return on average assets 0.83% 0.80% 0.76%
Return on average common equity 12.48% 11.94% 8.35%
Net interest margin, tax equivalent 2.90% 2.84% 2.91%
Efficiency ratio 52.8% 54.9% 61.8%
Non-performing loans to total loans
(including held for sale and FDIC
covered loans) 0.19% 0.20% 0.45%
Reserves to non-performing loans
(NPL's) 293.6% 289.5% 165.4%
Tangible book value per common share
(period end) (1) (2) $ 16.94 $ 16.43 $ 14.87
Period end stock price (1) $ 24.36 $ 19.46 $ 18.97
(1) Share and per share amounts for Q1 2014 have been adjusted to give
effect to the 10% stock dividend declared on May 15, 2014 and issued on June
30, 2014.
(2) Calculated as total equity less goodwill and other intangibles divided
by common shares outstanding at period end.
Net Income, Earnings Per Share and Tangible Book Value
Q1 2015 net income of $14.0 million was up $5.8 million, or 71.5%, from Q1 2014. Q1 2015 fully diluted earnings per share was $0.49 with 28.3 million diluted shares, compared to Q1 2014 earnings of $8.1 million and fully diluted earnings per share of $0.29 with 27.8 million diluted shares. Customers' tangible book value per share increased to $16.94 as of March 31, 2015 compared to $14.87 as of March 31, 2014, an increase of 13.9%. The increase in net income in Q1 2015 compared to Q1 2014 was primarily due to increased net interest income, fueled by a $2.0 billion increase in the loan portfolio while maintaining strong asset quality, growing deposits and controlling expenses. The increased tangible book value reflects Customers' strategic commitment to consistently maintain and grow tangible book value per share through growth in earnings with the expectation that it will eventually result in superior shareholder value creation.
Net Interest Margin
The net interest margin of 2.90% in Q1 2015 declined 1 basis point from Q1 2014 and increased 6 basis points from Q4 2014. The 12 basis points decrease in the net interest margin resulting from the Q2 2014 issuance of $110 million of subordinated debt and $25 million of senior debt was generally offset by decreasing rates paid on money market deposits, prepayment penalties received on multi-family and commercial real estate loans, cash payments received on purchased credit impaired loans in excess of expectations, sale of lower yielding multi-family loans, and increased dividends received on FHLB stock. The increase in net interest margin during Q1 2015 compared to Q4 2014 of 6 basis points also results from these developments.
Non-Interest Income
Q1 2015 non-interest income of $5.7 million declined $1.6 million compared to non-interest income of $7.3 million in Q1 2014, and declined $0.1 million compared to non-interest income of $5.8 million in Q4 2014. The $1.6 million decrease in Q1 2015 non-interest income compared to Q1 2014 non-interest income resulted primarily from a $2.8 million gain realized from the sale of investment securities in Q1 2014. The $0.1 million Q1 2015 decrease in non-interest income compared to Q4 2014 resulted primarily from lower gains realized on multi-family and SBA loan sales.
Non-Interest Expense
Q1 2015 operating expenses of $27.5 million increased $6.3 million, or 29.7%, compared to Q1 2014, and decreased $0.4 million compared to Q4 2014 operating expenses of $27.9 million. The Q1 2015 compared to Q1 2014 operating expense increase of $6.3 million resulted primarily from the $2.0 billion growth in Customers' loan portfolio, requiring increased staffing for loan origination and administrative support (up $4.6 million) and higher occupancy expense, FDIC assessments, taxes, and other regulatory fees (up $1.6 million). Costs related to Bank Mobile totaling approximately $1.0 million are also included in Q1 2015 operating expenses. The decrease in Q1 2015 compared to Q4 2014 non-interest expenses resulted from $1.0 million lower write-downs for repossessed properties in Q1 2015 and the cost of settling certain litigation matters in Q4 2014, offset in part by increased staffing, occupancy costs, and Bank Mobile related costs as Customers continues to grow.
Provision for Loan Losses and Asset Quality
The provision expense of $3.0 million for Q1 2015 includes $2.0 million for decreased valuation estimates on property collateralizing impaired loans, $0.9 million for growth and change in mix of the held for investment portfolio, and $0.8 million for increased loss estimates on purchased credit impaired loans, partially offset by $0.7 million for increased benefits expected to be collected from the FDIC.
Customers separates its loan portfolio into "covered" and "non-covered" loans for purposes of analyzing and managing asset quality. Covered loans are those loans that are covered by FDIC purchase and assumption, or loss sharing, agreements, and for which Customers is reimbursed 80% of allowable incurred losses. Covered loans totaled $37.4 million at March 31, 2015, $42.2 million at December 31, 2014, and $61.6 million at March 31, 2014. Non-performing covered loans totaled $4.1 million at March 31, 2015, $4.2 million at December 31, 2014, and $5.5 million at March 31, 2014. Covered real estate owned totaled $8.2 million at March 31, 2015, $9.4 million at December 31, 2014, and $9.3 million at March 31, 2014.
Non-covered loans are all loans not covered by the FDIC loss share agreements. Non-covered loans include loans accounted for as held for sale as well as loans accounted for as held for investment. Non-covered loans totaled $6.1 billion at March 31, 2015, $5.7 billion at December 31, 2014, and $4.0 billion at March 31, 2014. Non-performing non-covered loans totaled $7.7 million at March 31, 2015 (0.13% of total non-covered loans), $7.5 million (0.13% of total non-covered loans) at December 31, 2014, and $12.6 million (0.32% of total non-covered loans) at March 31, 2014. Non-covered loans 30 to 89 days delinquent at March 31, 2015 totaled $5.2 million (0.09% of non-covered loans). Total reserves for loan losses at March 31, 2015 were 423.1% of non-covered non-performing loans.
Risk Management
Customers continues to focus on its well defined Enterprise Risk Management process, specifically considering such areas as capital planning and management, asset quality, liquidity management, interest rate risk management, attraction and retention of talent, cyber security and risk mitigation, and regulatory compliance, while striving to achieve above average return on equity and return on assets. "Our Company is well positioned to meet or exceed its guidance of $1.95 to $2.00 of earnings per share in 2015 irrespective of the slope of the yield curve or level of short term rates," stated Mr. Sidhu. "By increasing our level of variable rate loans and core deposits by over $300 million during Q1 2015 compared to Q4 2014, and decreasing the level of multi-family loans, we believe we are better positioned for any movements in rates in 2015 and beyond," Mr. Sidhu concluded.
Diversified Loan Portfolio
Customers is a Business Bank that principally focuses on four lending activities; commercial and industrial loans to privately held businesses, multi-family loans principally to high net worth families in the New York City area, selected commercial real estate loans, and banking services to privately held mortgage companies. Commercial and industrial loans, including commercial real estate loans, were $1.8 billion at March 31, 2015. Multi-family loans and mortgage warehouse loans were $2.1 billion and $1.7 billion, respectively, at March 31, 2015.
Looking Ahead
"Customers is looking forward to an exciting year in 2015. We are off to a great start with our first quarter 2015 performance," Mr. Sidhu said. "We will continue our focus on our core businesses at Customers, growing commercial loans and core deposits, as we look to build our franchise value by building an exceptional business bank."
Conference Call
Date: April 29, 2015
Time: 10:00 am ET
US Dial-in: 1-800-289-0463
International Dial-in: 1-913-981-5571
Conference ID: 8578136
Webcast: http://public.viavid.com/index.php?id=114199
Institutional Background
Customers Bancorp, Inc. is a bank holding company located in Wyomissing, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $7.1 billion. A member of the Federal Reserve System and deposits insured by the Federal Deposit Insurance Corporation ("FDIC"), Customers Bank provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, New York, Rhode Island, Massachusetts, and New Jersey. Committed to fostering customer loyalty, Customers Bank uses a High Tech/High Touch strategy that includes use of industry-leading technology to provide customers better access to their money, as well as a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.
Customers Bancorp, Inc. voting common shares are listed on the New York Stock Exchange under the symbol CUBI. Additional information about Customers Bancorp, Inc. can be found on the company's website, www.customersbank.com.
"Safe Harbor" Statement
In addition to historical information, this press release may contain "forward-looking statements" which are made in good faith by Customers Bancorp, Inc., pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements with respect to Customers Bancorp, Inc.'s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words "may," "could," "should," "pro forma," "looking forward," "would," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.'s control). Numerous competitive, economic, regulatory, legal and technological factors, among others, could cause Customers Bancorp, Inc.'s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. 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. 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.
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED - UNAUDITED
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(Dollars in thousands, except per share data)
Q1 Q4 Q1
2015 2014 2014
------------ ------------- ------------
Interest income:
Loans receivable, including fees $ 43,093 $ 43,172 $ 28,355
Loans held for sale 10,900 10,500 5,083
Investment securities 2,363 2,442 3,040
Other 2,362 1,047 396
------------ ------------- ------------
Total interest income 58,718 57,161 36,874
Interest expense:
Deposits 7,526 7,133 5,415
Other borrowings 1,488 1,508 1,155
FHLB Advances 1,689 1,846 496
Subordinated debt 1,685 1,688 16
------------ ------------- ------------
Total interest expense 12,388 12,175 7,082
------------ ------------- ------------
Net interest income 46,330 44,986 29,792
Provision for loan losses 2,964 2,459 4,368
------------ ------------- ------------
Net interest income after
provision for loan losses 43,366 42,527 25,424
------------ ------------- ------------
Non-interest income:
Mortgage warehouse transactional
fees 2,273 2,105 1,759
Gain on sale of loans 1,231 1,859 -
Bank-owned life insurance income 1,061 1,056 835
Deposit fees 179 183 214
Mortgage loan and banking income
(expense) 151 (127) 409
Gain on sale of investment
securities - - 2,832
Other 838 728 1,261
------------ ------------- ------------
Total non-interest income 5,733 5,804 7,310
Non-interest expense:
Salaries and employee benefits 13,952 13,415 9,351
FDIC assessments, taxes, and
regulatory fees 3,278 3,283 2,131
Occupancy 3,078 2,848 2,637
Professional services 1,913 1,914 2,282
Technology, communication and bank
operations 1,554 1,190 1,560
Other real estate owned expense 884 1,756 351
Advertising and promotion 347 221 414
Loan workout 269 400 441
Other 2,190 2,837 2,002
------------ ------------- ------------
Total non-interest expense 27,465 27,864 21,169
------------ ------------- ------------
Income before tax expense 21,634 20,467 11,565
Income tax expense 7,682 7,289 3,429
------------ ------------- ------------
Net income $ 13,952 $ 13,178 $ 8,136
============ ============= ============
Basic earnings per share (1) $ 0.52 $ 0.49 $ 0.30
Diluted earnings per share (1) 0.49 0.47 0.29
(1) Earnings per share amounts for Q1 2014 have been adjusted to give effect
to the 10% common stock dividend declared on May 15, 2014 and issued on June
30, 2014.
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEET - UNAUDITED
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(Dollars in thousands, except per share data)
March 31, December 31, March 31,
2015 2014 2014
------------- ------------- -------------
ASSETS
Cash and due from banks $ 68,216 $ 62,746 $ 73,544
Interest-earning deposits 265,607 308,277 216,923
------------- ------------- -------------
Cash and cash equivalents 333,823 371,023 290,467
Investment securities available
for sale, at fair value 396,194 416,685 458,302
Loans held for sale 1,758,084 1,435,459 697,532
Loans receivable 4,337,851 4,312,173 3,356,547
Allowance for loan losses (33,566) (30,932) (26,704)
------------- ------------- -------------
Total loans receivable, net of
allowance for loan losses 4,304,285 4,281,241 3,329,843
FHLB, Federal Reserve Bank, and
other restricted stock 81,798 82,002 50,430
Accrued interest receivable 15,702 15,205 9,629
FDIC loss sharing receivable 3,427 2,320 8,272
Bank premises and equipment, net 11,061 10,810 11,234
Bank-owned life insurance 154,821 138,676 105,303
Other real estate owned 13,127 15,371 15,670
Goodwill and other intangibles 3,661 3,664 3,673
Other assets 57,242 52,914 33,876
------------- ------------- -------------
Total assets $ 7,133,225 $ 6,825,370 $ 5,014,231
============= ============= =============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Demand, non-interest bearing $ 670,771 $ 546,436 $ 634,578
Interest-bearing deposits 4,222,550 3,986,102 2,971,754
------------- ------------- -------------
Total deposits 4,893,321 4,532,538 3,606,332
FHLB advances 1,545,000 1,618,000 905,000
Other borrowings 88,250 88,250 63,250
Subordinated debt 110,000 110,000 2,000
Accrued interest payable and other
liabilities 38,703 33,437 36,711
------------- ------------- -------------
Total liabilities 6,675,274 6,382,225 4,613,293
------------- ------------- -------------
Common stock 27,356 27,278 24,826
Additional paid in capital 357,523 355,822 308,820
Retained earnings 82,373 68,421 79,144
Accumulated other comprehensive
loss (1,047) (122) (3,598)
Treasury stock, at cost (8,254) (8,254) (8,254)
------------- ------------- -------------
Total shareholders' equity 457,951 443,145 400,938
------------- ------------- -------------
Total liabilities &
shareholders' equity $ 7,133,225 $ 6,825,370 $ 5,014,231
============= ============= =============
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
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AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED)
----------------------------------------------------------------------------
(Dollars in thousands, except per share data)
Three Months Ended March 31,
-------------------------------------------------
2015 2014
------------------------ ------------------------
Average Average
Average yield or Average yield or
Balance cost (%) Balance cost (%)
------------------------ ------------------------
Assets
Interest earning deposits $ 283,613 0.25 $ 186,563 0.25
Investment securities 406,600 2.32 516,902 2.35
Loans held for sale 1,367,301 3.23 566,535 3.64
Loans receivable 4,361,664 4.00 2,842,050 4.04
Other interest-earning
assets 75,068 11.8 38,010 2.99
------------ ------------
Total interest earning
assets 6,494,246 3.66 4,150,060 3.59
Non-interest earning
assets 285,280 220,180
------------ ------------
Total assets $ 6,779,526 $ 4,370,240
============ ============
Liabilities
Total interest bearing
deposits (1) $ 4,121,262 0.74 $ 2,745,549 0.80
Borrowings 1,471,494 1.33 551,339 1.22
------------ ------------
Total interest-bearing
liabilities 5,592,756 0.90 3,296,888 0.87
Non-interest-bearing
deposits (1) 708,901 666,775
------------ ------------
Total deposits &
borrowings 6,301,657 0.80 3,963,663 0.72
Other non-interest bearing
liabilities 24,542 11,619
------------ ------------
Total liabilities 6,326,199 3,975,282
Shareholders' equity 453,327 394,958
------------ ------------
Total liabilities and
shareholders' equity $ 6,779,526 $ 4,370,240
============ ============
Net interest margin 2.89 2.90
Net interest margin tax
equivalent 2.90 2.91
(1) Total costs of deposits (including interest bearing and non-interest
bearing) were 0.63% and 0.64% for the three months ended March 31, 2015 and
2014, respectively.
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
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Asset Quality as of March 31, 2015 (Unaudited)
-----------------------------------------------------------------------
(Dollars in thousands, except per share data)
Other Non
Non Real Performing
Total Accrual Estate Assets
Loan Type Loans /NPL's Owned (NPA's)
-----------------------------------------------------------------------
New Century Originated
Loans
Legacy $ 49,559 $ 2,537 $ 4,104 $ 6,641
Troubled debt
restructurings (TDR's) 1,251 62 - 62
-----------------------------------------------------------------------
Total New Century
Originated Loans 50,810 2,599 4,104 6,703
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Originated Loans
Multi-Family 2,049,029 - - -
Commercial Real Estate 1,077,664 1,852 - 1,852
Commercial & Industrial 491,159 901 271 1,172
Residential 157,109 160 - 160
Construction 62,343 - - -
Warehouse 43,725 - - -
Other Consumer 391 - - -
TDR's 551 - - -
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Total Originated Loans 3,881,971 2,913 271 3,184
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Acquired Loans
Covered 28,747 4,058 8,239 12,297
Non-Covered 319,998 1,123 513 1,636
TDR's Covered 528 - - -
TDR's Non-Covered 2,875 1,102 - 1,102
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Total Acquired Loans 352,148 6,283 8,752 15,035
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Acquired Purchased Credit-
impaired Loans
Covered 8,090 - - -
Non-Covered 44,084 - - -
-----------------------------------------------------------------------
Total Acquired Purchased
Credit-impaired Loans 52,174 - - -
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Deferred Origination
Fees/Unamortized
Premium/Discounts, net 748 - - -
-----------------------------------------------------------------------
Total Loans Held for
Investment 4,337,851 11,795 13,127 24,922
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Total Loans Held for Sale 1,758,084
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Total Portfolio $6,095,935 $ 11,795 $ 13,127 $ 24,922
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CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
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Asset Quality as of March 31, 2015 (Unaudited)
----------------------------------------------------------------------------
(Dollars in thousands, except per share data)
Total
Allowance Total NPL's / Reserves
for loan Cash Credit Total to Total
Loan Type losses Reserve Reserves Loans NPL's
----------------------------------------------------------------------------
New Century Originated
Loans
Legacy $ 1,691 $ - $ 1,691 5.12% 66.65%
Troubled debt
restructurings (TDR's) 2 - 2 4.96% 3.23%
----------------------------------------------------------------------------
Total New Century
Originated Loans 1,693 - 1,693 5.12% 65.14%
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Originated Loans
Multi-Family 8,196 - 8,196 -% -%
Commercial Real Estate 9,900 - 9,900 0.17% 534.56%
Commercial & Industrial 3,618 - 3,618 0.18% 401.55%
Residential 1,393 - 1,393 0.10% -%
Construction 468 - 468 -% -%
Warehouse 328 - 328 -% -%
Other Consumer 6 - 6 -% -%
TDR's - - - -% -%
----------------------------------------------------------------------------
Total Originated Loans 23,909 - 23,909 0.08% 820.77%
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Acquired Loans
Covered 672 - 672 14.12% 16.56%
Non-Covered 467 1,065 1,532 0.35% 136.42%
TDR's Covered - - - -% -%
TDR's Non-Covered - - - 38.33% -%
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Total Acquired Loans 1,139 1,065 2,204 1.78% 35.08%
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Acquired Purchased Credit-
impaired Loans
Covered 1,220 - 1,220 -% -%
Non-Covered 5,605 - 5,605 -% -%
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Total Acquired Purchased
Credit-impaired Loans 6,825 - 6,825 -% -%
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Deferred Origination
Fees/Unamortized
Premium/Discounts, net - - - -% -%
----------------------------------------------------------------------------
Total Loans Held for
Investment 33,566 1,065 34,631 0.27% 293.61%
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Total Loans Held for Sale - - -
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Total Portfolio $ 33,566 $ 1,065 $ 34,631 0.19% 293.61%
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Jay SidhuChairman & CEO610-935-8693Richard EhstPresident & COO610-917-3263Investor Contact:Robert WahlmanCFO610-743-8074
Source: Customers Bancorp, Inc.