Customers Bancorp Reports Record Net Income for Full Year and Fourth Quarter 2015
WYOMISSING, PA -- (Marketwired) -- 01/20/16 -- Customers Bancorp, Inc. (NYSE: CUBI)
- 2015 Net Income Up 29.8% Over 2014 Net Income
- Q4 2015 Net Income Up 27.3% Over Q4 2014 Net Income
- 2015 Return on Common Equity of 11.8%; Q4 2015 Return on Common Equity of 13.5%
- Tangible Book Value Up 11.9% in 2015 to $18.39
- Loans Grew 26.1% and Deposits Grew 30.4% in 2015
- Asset Quality Exceptional with NPLs 0.15% of Total Loans and Reserves 342% of NPLs
- BankMobile Reports over 100,000 New Checking Accounts
Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively "Customers"), reported net income to common shareholders of $56.1 million for the full year of 2015 compared to net income to common shareholders of $43.2 million for 2014, an increase of $12.9 million, or 29.8%. Fully diluted earnings per share for the full year of 2015 was $1.96 compared to $1.55 fully diluted earnings per share for 2014, an increase of $0.41 per share, or 26.5%. Average fully diluted shares for 2015 were 28.7 million compared to average fully diluted shares for 2014 of 27.9 million.
Customers also reported net income to common shareholders of $16.8 million for the fourth quarter of 2015 ("Q4 2015") compared to net income to common shareholders of $13.2 million for the fourth quarter of 2014 ("Q4 2014"), an increase of $3.6 million, or 27.3%. Q4 2015 fully diluted earnings per share was $0.58 compared to $0.47 for Q4 2014, an increase of $0.11 per share, or 23.4%. Average fully diluted shares for Q4 2015 were 28.9 million compared to average fully diluted shares for Q4 2014 of 28.0 million.
"Customers is pleased to report record net income to common shareholders for 2015 of $1.96 fully diluted earnings per share. 2015 net income reached management's estimated earnings for 2015 despite the unfortunate $9.0 million fraud identified during the second quarter of the year reducing earnings by $0.21 a share," commented Jay Sidhu, Chairman and CEO of Customers. Continuing, Mr. Sidhu said, "In 2015 we strengthened our core business franchise as we added commercial loan and deposit generating teams to existing Pennsylvania, New York, and New England teams, laying the foundation for continued strong commercial and industrial loan growth in 2016 and beyond. We supported our loan and profitability growth by increasing holding company Tier 1 capital by $118 million, or 27%, in 2015 primarily through a $56 million net preferred stock offering and retaining all $56 million of 2015 net income. We invested in Customers' future by expanding our risk management, administrative, compliance and technical teams so that we can manage the risks and support an $8.0 billion and larger bank, developed and introduced the BankMobile platform as the digital delivery channel of the future for consumers, and announced an agreement to acquire Higher One's disbursement business. The Higher One disbursement business currently services approximately 2 million existing student deposit accounts and provides a platform to generate over 500,000 new deposit accounts annually. We are excited about our high technology platform for creating a successful mobile first digital bank for the future and the many opportunities that presents for our shareholders and customers. 2015 was an incredible year for Customers, and we have positioned ourselves well for an even better 2016 and beyond."
Other financial and business highlights for 2015 compared to 2014 include:
- Customers achieved a return on average assets of 0.81% in 2015 compared to 0.78% in 2014, and achieved a return on average common equity of 11.82% in 2015 compared to 10.39% in 2014.
- Total loans, including commercial loans held for sale, increased $1.5 billion, or 26.1%, to $7.3 billion as of December 31, 2015 compared to total loans as of December 31, 2014 of $5.7 billion. Multi-family loans increased $636 million to $2.9 billion, commercial loans and lines of credit to mortgage companies increased $421 million to $1.8 billion, commercial and industrial loans (including owner-occupied commercial real estate) increased $327 million to $1.1 billion, non-owner occupied commercial real estate loans increased $154 million to $1.0 billion, and consumer loans decreased $34 million to $0.4 billion over the prior year.
- Total deposits increased $1.4 billion, or 30.4%, to $5.9 billion as of December 31, 2015 compared to total deposits of $4.5 billion as of December 31, 2014. Transaction deposits increased by $737 million, with non-interest bearing deposits increasing by $107 million. Certificate of deposit accounts increased $636 million over 2014, assisting Customers in extending its liabilities.
- Net interest income increased $44.4 million as loan and security average balances increased $1.6 billion, offset in part by a 6 basis point decrease in net interest margin. The 2015 net interest margin of 2.81% declined 6 basis points compared to net interest margin of 2.87% in 2014. The net interest margin decrease was largely a result of the growth in the lower yielding mortgage warehouse portfolio.
- Customers reported a $20.6 million provision for loan losses in 2015 compared to a $14.7 million provision for loan losses in 2014. The 2015 provision for loan losses included a provision expense of $9.0 million for the fraudulent loan identified by Customers in July 2015. $5.3 million of the loan was charged off in the third quarter of 2015 and the residual balance of $3.7 million was charged off in Q4 2015. Customers will continue its efforts to collect the loan balance and is optimistic about a future recovery.
- 2015 non-interest income of $27.7 million increased $2.6 million from 2014 as a result of a benefit received on a bank-owned life insurance policy, higher mortgage warehouse transactional fees and an increase in the gain on sale of loans, offset in part by gains realized from sales of investment securities of $3.2 million recorded in 2014 compared to a loss of $0.1 million in 2015.
- Non-interest expenses incurred in 2015 of $115.0 million increased $16.0 million from non-interest expenses in 2014. The increases in salaries, professional services and technology totaling $17.4 million result from growth of Customers requiring additional people, services, and support. These increases were offset in part by decreased taxes and regulatory fees of $1.1 million related primarily to an adjustment in the Pennsylvania shares tax expense and reduced loan workout expenses of $0.6 million resulting from lower levels of non-performing loans and recoveries of prior expenses on resolved loans during the year.
- The 2015 efficiency ratio was 51.3% compared to a 56.9% 2014 efficiency ratio. The 2015 efficiency ratio includes approximately $6.4 million of net expense for BankMobile. Excluding BankMobile net expenses of $6.4 million, the 2015 efficiency ratio would have been 48.4%.
- Pre-tax and pre-provision return on average assets reached 1.50% in 2015 compared to 1.41% in 2014. Pre-tax and pre-provision return on average common equity was 22.46% in 2015 compared to 18.78% in 2014. The improved profitability ratios reflect the increasing earnings while maintaining control of operating costs.
- Capital levels continue to exceed the "well-capitalized" thresholds established by regulation at both the holding company and bank.
- The tangible book value per common share continued to increase, reaching $18.39 at December 31, 2015, compared to $16.43 at December 31, 2014, an increase of 11.9% year-over-year.
- The assumption of the Higher One disbursement business if completed is expected to provide the opportunity to service approximately 2 million existing student deposit accounts and generate over 500,000 new student deposit accounts annually. The planned combination of this business with the BankMobile platform is expected to provide the opportunity to be the "Bank for Life" for these students and other customers.
Q4 2015 compared to Q4 2014:
Customers' Q4 2015 net income to common shareholders of $16.8 million increased $3.6 million, or 27.3%, from net income to common shareholders of $13.2 million in Q4 2014. The increase in Q4 2015 compared to Q4 2014 net income to common shareholders resulted primarily from a $8.5 million increase in net interest income as loan and security average balances were nearly $1.3 billion greater in Q4 2015 compared to Q4 2014 reflecting Customers continuing loan growth, and a $2.4 million payment received on a bank-owned life insurance policy, offset in part by the Q4 2015 $3.0 million provision to reserve the full balance of the fraudulent loan initially reported in the second quarter of 2015.
Other financial highlights of Q4 2015 compared to Q4 2014 include:
- Net interest margin in Q4 2015 of 2.83% was relatively flat compared to net interest margin of 2.84% in Q4 2014. The net interest margin consistency between periods resulted from a higher yield on investment securities as amounts previously held in cash were invested in highly liquid US agency guaranteed securities offsetting lower prepayment fees received in Q4 2015 compared to Q4 2014.
- The Q4 2015 provision for loan losses of $6.2 million reflects an additional provision of $3.0 million to facilitate the full charge-off of the remaining fraudulent loan balance. As of December 31, 2015, the entire $9.0 million balance has been charged-off.
- Pre-tax and pre-provision return on average assets reached 1.60% in Q4 2015 compared to 1.39% in Q4 2014. Pre-tax and pre-provision return on average common equity was 24.35% in Q4 2015 compared to 20.78% in Q4 2014. The improved profitability ratios reflect the increasing earnings while maintaining control of operating costs.
- Q4 2015 non-interest income of $9.4 million increased $3.6 million from Q4 2014 as a result of a $2.4 million benefit received on a bank-owned life insurance policy and $0.9 million swap premium fee.
- Non-interest expenses incurred in Q4 2015 of $31.5 million increased $3.6 million from non-interest expenses of Q4 2014. The increases in salaries, professional services and technology totaling $4.5 million result from growth of Customers requiring additional people, services, and support. A reduction in Q4 2015 expense for other real estate owned of $1.3 million resulted from a combined $1.3 million loss recognized on valuation adjustments for three OREO properties in Q4 2014 compared to a $0.1 million loss recognized on valuation adjustments for OREO properties in Q4 2015.
Q4 2015 compared to Q3 2015:
Customers' Q4 2015 net income to common shareholders of $16.8 million increased $2.5 million, or 17.3%, from net income to common shareholders of $14.3 million for the third quarter of 2015 ("Q3 2015"). The increase in Q4 2015 compared to Q3 2015 net income to common shareholders resulted primarily from a $4.0 million increase in interest income as loan and investment security average balances were nearly $500 million greater in Q4 2015 compared to Q3 2015 as Customers grew loan balances during Q4 2015, and a $2.4 million payment received on a bank-owned life insurance policy, offset in part by the $3.0 million provision for loan losses related to the loan initially reported as a fraudulent loan in the second quarter of 2015.
Other financial highlights for Q4 2015 compared to Q3 2015 include:
- Net interest margin in Q4 2015 of 2.83% increased approximately 4 basis points compared to the net interest margin for Q3 2015 of 2.79%. The net interest margin increase resulted primarily from higher yields on investment securities as amounts previously held in cash were invested in highly liquid US agency guaranteed securities, and improved yields on commercial loans, offset in part by lower prepayment fees received in Q4 2015 compared to Q3 2015.
- The Q4 2015 provision for loan losses of $6.2 million reflects an additional provision of $3.0 million to facilitate charging off the full residual balance of the fraudulent loan first reported in the second quarter of 2015 and the $686 million growth in multi-family and commercial loan balances during Q4 2015 compared to Q3 2015.
- Non-interest income of $9.4 million in Q4 2015 increased $3.2 million compared to Q3 2015 primarily due to a $2.4 million benefit received on a bank-owned life insurance policy and increased swap premium fees.
- Q4 2015 non-interest expense of $31.5 million was up $1.2 million from Q3 2015. Increases in salaries, professional services and technology totaling $1.8 million resulted from Customers' growth, requiring additional people, services, and support, and higher loan workout expenses of $0.3 million resulted from recoveries of prior expenses on a loan that was resolved during Q3 2015. These increases were offset in part by a $1.2 million reduction in other real estate owed expenses due to valuation adjustments of only $0.1 million in Q4 2015 compared to Q3 2015 valuation adjustments of $1.2 million.
- Customers sold approximately $45.4 million of multi-family loans at approximately a 1.0% gain during Q4 2015, comparable to the Q3 2015 multi-family loan sales.
"Achieving earnings of $0.58 in the fourth quarter of 2015 is a tremendous accomplishment for the entire Customers team," said Bob Wahlman, Chief Financial Officer of Customers Bancorp, Inc. "Our team's accomplishment reflects the successful execution of the strategies we have adopted to achieve our performance targets of a return on assets around 1.0% and return on common equity of 12.0%. At this point, we are close to achieving the annual return on common equity performance target. The strong fourth quarter also puts us in a strong position to achieve our stated net income to common shareholders guidance of $2.40 to $2.50 from our core banking operations in 2016. Acquisition of the Higher One disbursement business, excluding anticipated one-time charges related to the acquisition and integration, is expected to be non-dilutive to our 2016 earnings and accretive to our 2017 earnings."
The following table presents a summary of key earnings and performance metrics for the years ended December 31, 2015 and 2014, and the quarters ending December 31, 2015, September 30, 2015 and December 31, 2014, respectively:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
EARNINGS SUMMARY - UNAUDITED
----------------------------------------------------------------------------
(Dollars in
thousands,
except per-
share data)
Q4 Q3 Q4
2015 2014 2015 2015 2014
------------------------------------------------------------
Net income
available to
common
shareholders $ 56,090 $ 43,214 $ 16,780 $ 14,309 $ 13,178
Basic earnings
per common
share ("EPS") $ 2.09 $ 1.62 $ 0.62 $ 0.53 $ 0.49
Diluted EPS $ 1.96 $ 1.55 $ 0.58 $ 0.50 $ 0.47
Average common
shares
outstanding -
basic 26,844,545 26,719,626 26,886,694 26,872,787 26,736,461
Average common
shares
outstanding -
diluted 28,684,939 27,939,004 28,912,644 28,741,129 28,009,532
Return on
average assets 0.81% 0.78% 0.91% 0.82% 0.80%
Return on
average common
equity 11.82% 10.39% 13.46% 11.83% 11.94%
Return on
average assets
- pre-tax and
pre-provision 1.50% 1.41% 1.60% 1.39% 1.39%
Return on
average common
equity - pre-
tax and pre-
provision 22.46% 18.78% 24.35% 20.53% 20.78%
Net interest
margin, tax
equivalent 2.81% 2.87% 2.83% 2.79% 2.84%
Efficiency ratio 51.3% 56.9% 50.1% 54.0% 54.9%
Non-performing
loans (NPLs) to
total loans
(including
held-for-sale
loans) 0.15% 0.20% 0.15% 0.27% 0.20%
Reserves to non-
performing
loans 341.71% 289.56% 341.71% 197.01% 289.56%
Net charge-offs $ 11,978 $ 3,124 $ 4,321 $ 5,657 $ 1,356
Tangible book
value per
common share
(period end)
(1) $ 18.39 $ 16.43 $ 18.39 $ 17.81 $ 16.43
Period end stock
price $ 27.22 $ 19.46 $ 27.22 $ 25.70 $ 19.46
(1) Calculated as total equity less preferred stock and goodwill and other
intangibles divided by common shares outstanding at period end.
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, selected commercial real estate loans, and banking services to privately held mortgage companies. Commercial and industrial loans, including owner-occupied commercial real estate loans, and non-owner-occupied commercial real estate loans, were approximately $1.1 billion and $1.0 billion, respectively, at December 31, 2015. Multi-family loans or loans to high net worth families and mortgage warehouse loans, also considered commercial loans, were approximately $2.9 billion and $1.8 billion, respectively, at December 31, 2015.
Conference Call
Date: Wednesday, January 20, 2016
Time: 5:30 PM ET
US Dial-in: 1 (888) 539-3694
International Dial-in: 1 (719) 457-1510
Participant Code: 100209
Please dial in at least 10 minutes before the start of the call to ensure timely participation. Slides accompanying the presentation will be available on the Company's website at http://customersbank.com/investor_relations.php prior to the call. A playback of the call will be available until 8:30 p.m. ET on February 19. To listen, call 1 (888) 203-1112 or 1 (719) 457-0820. Please use the replay pin number 2795440.
Institutional Background
Customers Bancorp, Inc. is a bank holding company located in Wyomissing, Pennsylvania engaged in banking and related business through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $8.4 billion. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, New York, Rhode Island, New Hampshire, 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 Concierge Banking® by appointment at customers' homes or offices 12 hours a day, seven days a week. Customers Bank offers a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers. BankMobile is a division of Customers Bank, offering state of the art high tech digital banking services with high level of personal customer service. BankMobile at December 31, 2015 had over 100,000 consumer checking accounts.
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" 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," 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. In addition, important factors relating to the previously disclosed proposed acquisition of the disbursements business of Higher One and Customer Bancorp's previously announced plans to combine its BankMobile business with the acquired business also could cause Customers Bancorp's actual results to differ from those in the 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 for the year ended December 31, 2014 and subsequently filed quarterly reports on Form 10-Q. 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
----------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands, except per
share data)
Q4 Q3 Q4
2015 2015 2014
---------------------------------------
Interest income:
Loans receivable, including fees $ 50,095 $ 46,291 $ 43,172
Loans held for sale 13,125 14,006 10,500
Investment securities 3,506 2,283 2,442
Other 987 1,156 1,047
---------------------------------------
Total interest income 67,713 63,736 57,161
Interest expense:
Deposits 9,289 9,022 7,133
Other borrowings 1,573 1,539 1,508
FHLB advances 1,698 1,556 1,846
Subordinated debt 1,685 1,685 1,688
---------------------------------------
Total interest expense 14,245 13,802 12,175
---------------------------------------
Net interest income 53,468 49,934 44,986
Provision for loan losses 6,173 2,094 2,459
---------------------------------------
Net interest income after
provision for loan losses 47,295 47,840 42,527
Non-interest income:
Bank-owned life insurance 3,599 1,177 1,056
Mortgage warehouse transactional
fees 2,530 2,792 2,105
Gain on sale of loans 859 1,131 1,859
Deposit fees 253 265 183
Mortgage loans and banking income
(expense) 135 167 (127)
Gain (loss) on sale of investment
securities - (16) -
Other 2,044 655 728
---------------------------------------
Total non-interest income 9,420 6,171 5,804
Non-interest expense:
Salaries and employee benefits 15,396 14,981 13,415
Professional services 3,664 2,673 1,914
FDIC assessments, taxes, and
regulatory fees 3,233 3,222 3,283
Technology, communication and bank
operations 2,805 2,422 2,031
Occupancy 2,199 2,169 2,007
Loan workout 586 285 400
Other real estate owned 491 1,722 1,756
Advertising and promotion 368 330 221
Other 2,772 2,503 2,837
---------------------------------------
Total non-interest expense 31,514 30,307 27,864
---------------------------------------
Income before tax expense 25,201 23,704 20,467
Income tax expense 7,415 8,415 7,289
---------------------------------------
Net income 17,786 15,289 13,178
Preferred stock dividend 1,006 980 -
---------------------------------------
Net income available to common
shareholders $ 16,780 $ 14,309 $ 13,178
=======================================
Basic earnings per common share $ 0.62 $ 0.53 $ 0.49
Diluted earnings per common share $ 0.58 $ 0.50 $ 0.47
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands, except per share data)
December 31, December 31,
2015 2014
------------------------------
Interest income:
Loans receivable, including fees $ 182,280 $ 146,388
Loans held for sale 51,553 30,801
Investment securities 10,405 10,386
Other 5,612 2,852
------------------------------
Total interest income 249,850 190,427
Interest expense:
Deposits 33,982 24,454
Other borrowings 6,096 5,342
FHLB advances 6,743 5,194
Subordinated debt 6,739 3,514
------------------------------
Total interest expense 53,560 38,504
------------------------------
Net interest income 196,290 151,923
Provision for loan losses 20,566 14,747
------------------------------
Net interest income after provision for
loan losses 175,724 137,176
Non-interest income:
Mortgage warehouse transactional fees 10,394 8,233
Bank-owned life insurance 7,006 3,702
Gain on sale of loans 4,047 3,125
Deposit fees 944 801
Mortgage loans and banking income 741 2,048
Gain (loss) on sale of investment securities (85) 3,191
Other 4,670 4,026
------------------------------
Total non-interest income 27,717 25,126
Non-interest expense:
Salaries and employee benefits 58,777 46,427
Professional services 11,042 7,748
FDIC assessments, taxes, and regulatory fees 10,728 11,812
Technology, communications and bank
operations 10,596 8,798
Occupancy 8,668 8,068
Other real estate owned 2,516 3,601
Advertising and promotion 1,475 1,325
Loan workout 1,127 1,706
Other 10,017 9,429
------------------------------
Total non-interest expense 114,946 98,914
------------------------------
Income before tax expense 88,495 63,388
Income tax expense 29,912 20,174
------------------------------
Net income 58,583 43,214
Preferred stock dividend 2,493 -
------------------------------
Net income available to common
shareholders $ 56,090 $ 43,214
==============================
Basic earnings per common share $ 2.09 $ 1.62
Diluted earnings per common share $ 1.96 $ 1.55
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands)
December 31, December 31,
2015 2014
-------------------------------
ASSETS
Cash and due from banks $ 53,550 $ 62,746
Interest-earning deposits 211,043 308,277
-------------------------------
Cash and cash equivalents 264,593 371,023
Investment securities available for sale, at
fair value 560,253 416,685
Loans held for sale 1,797,064 1,435,459
Loans receivable 5,453,479 4,312,173
Allowance for loan losses (35,647) (30,932)
-------------------------------
Total loans receivable, net of allowance
for loan losses 5,417,832 4,281,241
FHLB, Federal Reserve Bank, and other
restricted stock 90,841 82,002
Accrued interest receivable 19,939 15,205
FDIC loss sharing receivable - 2,320
Bank premises and equipment, net 11,531 10,810
Bank-owned life insurance 157,211 138,676
Other real estate owned 5,057 15,371
Goodwill and other intangibles 3,651 3,664
Other assets 73,341 52,914
-------------------------------
Total assets $ 8,401,313 $ 6,825,370
===============================
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand, non-interest bearing $ 653,679 $ 546,436
Interest-bearing deposits 5,255,822 3,986,102
-------------------------------
Total deposits 5,909,501 4,532,538
Federal funds purchased 70,000 -
FHLB advances 1,625,300 1,618,000
Other borrowings 88,250 88,250
Subordinated debt 110,000 110,000
Accrued interest payable and other
liabilities 44,360 33,437
-------------------------------
Total liabilities 7,847,411 6,382,225
Preferred stock 55,569 -
Common stock 27,432 27,278
Additional paid in capital 362,607 355,822
Retained earnings 124,511 68,421
Accumulated other comprehensive loss (7,984) (122)
Treasury stock, at cost (8,233) (8,254)
-------------------------------
Total shareholders' equity 553,902 443,145
-------------------------------
Total liabilities & shareholders'
equity $ 8,401,313 $ 6,825,370
===============================
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED)
----------------------------------------------------------------------------
(Dollars in thousands)
Three Months Ended December 31,
----------------------------------------------------
2015 2014
----------------------------------------------------
Average Average
Average yield Average yield
Balance or cost (%) Balance or cost (%)
----------------------------------------------------
Assets
Interest earning
deposits $ 199,142 0.32 $ 271,556 0.26
Investment securities 541,541 2.59 422,924 2.31
Loans held for sale 1,572,068 3.31 1,279,803 3.26
Loans receivable 5,120,113 3.88 4,244,315 4.04
Other interest-earning
assets 70,689 4.68 80,639 4.29
-------------- --------------
Total interest earning
assets 7,503,553 3.58 6,299,237 3.60
Non-interest earning
assets 271,396 246,796
-------------- --------------
Total assets $ 7,774,949 $ 6,546,033
============== ==============
Liabilities
Total interest bearing
deposits (1) $ 5,170,461 0.71 $ 3,789,566 0.75
Borrowings 1,295,853 1.52 1,658,505 1.21
-------------- --------------
Total interest bearing
liabilities 6,466,314 0.87 5,448,071 0.75
Non-interest bearing
deposits (1) 714,988 633,525
-------------- --------------
Total deposits &
borrowings 7,181,302 0.79 6,081,596 0.80
Other non-interest
bearing liabilities 43,358 26,636
-------------- --------------
Total liabilities 7,224,660 6,108,232
Shareholders' equity 550,289 437,801
-------------- --------------
Total liabilities
and shareholders'
equity $ 7,774,949 $ 6,546,033
============== ==============
Net interest margin 2.83 2.84
Net interest margin tax
equivalent 2.83 2.84
(1) Total costs of deposits (including interest bearing and non-interest
bearing) were 0.63% and 0.64% for the three months ended December 31, 2015
and 2014, respectively.
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED)
----------------------------------------------------------------------------
(Dollars in thousands)
Twelve Months Ended December 31,
------------------------------------------------
2015 2014
------------------------------------------------
Average Average
Average yield Average yield
Balance or cost (%) Balance or cost (%)
------------------------------------------------
Assets
Interest earning deposits $ 271,201 0.26 $ 228,668 0.25
Investment securities 427,638 2.43 451,932 2.30
Loans held for sale 1,589,176 3.24 911,594 3.38
Loans receivable 4,635,887 3.93 3,656,891 4.00
Other interest-earning
assets 72,693 6.73 66,669 3.41
------------ ------------
Total interest earning
assets 6,996,595 3.57 5,315,754 3.58
Non-interest earning assets 269,454 227,045
------------ ------------
Total assets $ 7,266,049 $ 5,542,799
============ ============
Liabilities
Total interest bearing
deposits (1) $ 4,660,946 0.73 $ 3,220,305 0.76
Borrowings 1,373,359 1.43 1,268,205 1.11
------------ ------------
Total interest-bearing
liabilities 6,034,305 0.89 4,488,510 0.86
Non-interest-bearing
deposits (1) 692,159 620,385
------------ ------------
Total deposits & borrowings 6,726,464 0.80 5,108,895 0.75
Other non-interest bearing
liabilities 30,394 17,905
------------ ------------
Total liabilities 6,756,858 5,126,800
Shareholders' equity 509,191 415,999
------------ ------------
Total liabilities and
shareholders' equity $ 7,266,049 $ 5,542,799
============ ============
Net interest margin 2.81 2.86
Net interest margin tax
equivalent 2.81 2.87
(1) Total costs of deposits (including interest bearing and non-interest
bearing) were 0.63% and 0.64% for the twelve months ended December 31, 2015
and 2014, respectively.
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
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Asset Quality as of December 31, 2015 (Unaudited)
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(Dollars in thousands)
Non
Non Accrual Other Real Performing
Loan Type Total Loans /NPLs Estate Owned Assets (NPAs)
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Originated Loans
Multi-Family $ 2,903,814 $ - $ - $ -
Commercial &
Industrial (1) 990,621 2,760 153 2,913
Commercial Real
Estate- Non-Owner
Occupied 906,544 788 - 788
Residential 113,858 32 - 32
Construction 87,006 - - -
Other consumer 712 - - -
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Total Originated
Loans 5,002,555 3,580 153 3,733
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Loans Acquired
Bank Acquisitions 206,971 4,743 4,379 9,122
Loan Purchases 243,619 2,448 525 2,973
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Total Acquired Loans 450,590 7,191 4,904 12,095
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Deferred Origination
Fees/Unamortized
Premium/Discounts 334 - - -
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Total Loans Held for
Investment 5,453,479 10,771 5,057 15,828
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Total Loans Held for
Sale 1,797,064 - - -
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Total Portfolio $ 7,250,543 $ 10,771 $ 5,057 $ 15,828
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Allowance Total NPLs / Total
for loan Cash Credit Total Reserves to
Loan Type losses Reserve Reserves Loans Total NPLs
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Originated Loans
Multi-Family $ 12,016 $ - $ 12,016 -% -%
Commercial &
Industrial (1) 8,864 - 8,864 0.28% 321.16%
Commercial Real
Estate- Non-Owner
Occupied 3,706 - 3,706 0.09% 470.30%
Residential 1,992 - 1,992 0.03% 6,225.00%
Construction 1,074 - 1,074 -% -%
Other consumer 9 - 9 -% -%
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Total Originated
Loans 27,661 - 27,661 0.07 % 772.65 %
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Loans Acquired
Bank Acquisitions 7,492 - 7,492 2.29% 157.97%
Loan Purchases 494 1,159 1,653 1.00% 67.51%
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Total Acquired Loans 7,986 1,159 9,145 1.60 % 127.17 %
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Deferred Origination
Fees/Unamortized
Premium/Discounts - - - -% -%
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Total Loans Held for
Investment 35,647 1,159 36,806 0.20 % 341.71 %
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Total Loans Held for
Sale - - - -% -%
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Total Portfolio $ 35,647 $ 1,159 $ 36,806 0.15 % 341.71 %
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(1) Commercial & industrial loans, including owner occupied commercial real estate.
Contacts:Jay SidhuChairman & CEO610-935-8693Richard EhstPresident & COO610-917-3263Investor Contact:Robert WahlmanCFO610-743-8074
Source: Customers Bancorp, Inc.