Customers Bancorp, Inc. (NYSE:CUBI), the parent company of
Customers Bank (collectively “Customers”), reported net income to
common shareholders of $22.1 million for the first quarter of 2017
("Q1 2017") compared to net income to common shareholders of $16.9
million for the first quarter of 2016 ("Q1 2016"), an increase of
$5.2 million, or 31.0%. Fully diluted earnings per share for
Q1 2017 was $0.67 compared to $0.58 fully diluted earnings per
share for Q1 2016, an increase of $0.09, or 15.5%. Average
fully diluted shares for the first quarter of 2017 were 32.8
million compared to average fully diluted shares for the first
quarter of 2016 of 29.3 million. Net income to common
shareholders from continuing operations after preferred stock
dividends was $23.3 million for Q1 2017 and $18.0 million for Q1
2016, an increase of 29.3%. Fully diluted earnings per common
share from continuing operations after preferred stock dividends
was $0.71 for Q1 2017 and $0.62 for Q1 2016, an increase of 14.5%.
"Customers is pleased to report record earnings for first
quarter 2017 with net income to common shareholders of $22.1
million even though our average mortgage warehouse loan balances
declined $665 million from Q4 2016 due to the seasonal decline in
commercial loans to mortgage companies while we maintained
Customers Bank under $10 billion," stated Jay Sidhu, Chairman and
CEO of Customers. "Customers has restrained its loan growth,
allowing loan balances to increase only $405 million over the past
twelve months. Intentionally limiting our asset growth in
recognition of the adverse affect growth over $10 billion may have
on our BankMobile business has limited Customers' growth in
profitability and is the primary driver of our efforts to divest
the BankMobile business. We are excited about the prospects
for 2017 and future years and are expecting another record year of
net income to common shareholders in 2017," Mr. Sidhu
concluded.
Other financial and business highlights for Q1 2017 compared to
Q1 2016 include:
- Customers achieved a return on average assets of 1.09% in Q1
2017 compared to 0.87% in Q1 2016, and achieved a return on average
common equity of 13.80% in Q1 2017 compared to 13.23% in Q1
2016.
- Total loans outstanding from continuing operations, including
commercial loans held for sale, increased $0.4 billion, or 5.1%, to
$8.3 billion as of March 31, 2017 compared to total loans of $7.9
billion as of March 31, 2016. Commercial and industrial loans
increased $223 million to $1.3 billion, multi-family loans
increased $201 million to $3.4 billion, commercial
non-owner-occupied real estate loans increased $179 million to $1.2
billion, consumer loans increased $84 million to $0.5 billion, and
commercial loans to mortgage companies decreased $249 million to
$1.7 billion.
- Total deposits from continuing operations increased by $485
million, or 7.9%, to $6.6 billion as of March 31, 2017 compared to
total deposits of $6.1 billion as of March 31, 2016.
Non-interest demand deposit accounts increased $62 million to $507
million, interest bearing demand deposit accounts increased $184
million to $318 million, money market demand accounts increased $47
million to $3.2 billion, and certificates of deposit increased $191
million to $2.6 billion from continuing operations.
BankMobile deposits held for sale increased $372 million to $708
million as of March 31, 2017.
- Q1 2017 net interest income from continuing operations of $62.4
million increased $4.8 million, or 8.3%, from comparable net
interest income for Q1 2016 as average interest earning assets from
continuing operations increased $1.2 billion offset in part by a
net interest margin decrease of 15 basis points to 273 basis points
for Q1 2017. The decrease in net interest margin largely results
from a 15 basis point increase in the cost of deposits and
borrowings combined with the dilutive effect on asset yields of
increasing the investment securities portfolio by $461 million at a
lower yield than that of the loan portfolio.
- Customers’ Q1 2017 provision for loan losses from continuing
operations totaled $3.1 million compared to a provision expense of
$2.0 million in Q1 2016. The Q1 2017 provision expense
included $0.5 million for new loan growth and $2.5 million for
specifically identified loans. There were no significant changes in
Customers' methodology for estimating the allowance for loan and
lease losses in Q1 2017.
- Non-interest income from continuing operations, excluding a
$1.7 million impairment charge on Religare Enterprises equity
securities, increased $1.9 million in Q1 2017 to $7.1 million, a
35.4% increase. Gains on sale of loans increased by $0.7 million as
a result of increased Small Business Administration ("SBA") loan
sales and the sale of approximately $95 million of multi-family
loans. A positive mark-to-market on certain derivatives also
impacted the increase in non-interest income.
- Non-interest expenses totaling $30.1 million from continuing
operations decreased $1.7 million from Q1 2016, or 5.4%.
Salaries and employee benefits decreased $0.2 million, FDIC
assessments and non-income taxes and regulatory fees decreased $2.2
million, and other expenses decreased $1.0 million partially offset
by increases in technology and bank operations of $0.9 million and
professional services of $0.7 million. The decrease in overall
non-interest expenses is attributable to management efforts focused
on controlling expenses.
- Q1 2017 income tax expense of $7.7 million on pre-tax income of
$34.7 million represents an effective tax rate of 22.3% compared to
Q1 2016 income tax expense of $9.7 million on pre-tax income of
$29.0 million and an effective tax rate of 33.5%. Q1 2017
income tax expense includes a benefit of $2.6 million for the tax
effect of the increase in value since the award date for restricted
stock units vesting and the exercise of stock options and a $3.5
million benefit for the development of tax strategies that allow
for the recognition of the tax benefit from losses recorded for
impairment charges on Religare Enterprises equity securities.
- BankMobile, presented as discontinued operations in the
financial statements as Customers has stated its intent to sell the
business, reported non-interest income of $17.3 million and
operating expenses of $19.2 million, a net loss of approximately
$1.2 million for Q1 2017. Including interest income attributable to
the deposits generated by the business, BankMobile would have
generated a profit for Q1 2017.
- The Q1 2017 efficiency ratio from continuing operations was
43.3%, compared to the Q1 2016 efficiency ratio from continuing
operations of approximately 50.7%.
- The book value per common share continued to increase, reaching
$21.62 per share at March 31, 2017 compared to $19.22 per share at
March 31, 2016, an increase of 12.5%.
- Based on Customers Bancorp, Inc.'s March 31, 2017 stock
price of $31.53, Customers was trading at approximately 1.5 times
tangible book value per common share.
Q1 2017 compared to Q4 2016:
Customers’ Q1 2017 net income to common shareholders increased
$5.9 million, or 36.5%, to $22.1 million from net income to common
shareholders of $16.2 million for the fourth quarter of 2016 ("Q4
2016"). The $5.9 million increase in Q1 2017 net income
compared to Q4 2016 net income resulted primarily from an increase
in non-interest income of $4.5 million to $5.4 million, a
decrease in operating expenses of $0.4 million to $30.1 million, a
$3.7 million decrease in income tax expense to $7.7 million, and a
decreased net loss from discontinued operations held for sale of
$2.3 million, partially offset by a decrease in net interest income
of $1.7 million to $62.4 million, and an increase in provision
expense of $3.3 million. Examining these quarter-over-quarter
changes further:
- The $1.7 million decrease in net interest income from
continuing operations in Q1 2017 was largely attributable to a
decrease in average loan balances of approximately $0.3 billion and
an 11 basis point decrease in net interest margin as Customers
increased its holdings of investment securities while the higher
margin mortgage warehouse loan portfolio declined.
- The $3.3 million increase in provision for loan losses from
continuing operations in Q1 2017 compared to Q4 2016 resulted
primarily from recoveries on previously charged-off loans in Q4
2016 and cash payments received on purchased credit-impaired loans
in Q4 2016 that exceeded the amounts collected in Q1 2017.
There was no significant change in the provision for loan loss
methodology in Q1 2017.
- The $4.5 million increase in non-interest income from
continuing operations in Q1 2017 compared to Q4 2016 resulted
primarily from the impairment charge of $7.3 million in Q4 2016
compared to a Q1 2017 impairment charge of $1.7 million.
- The $0.4 million decrease in non-interest expenses from
continuing operations in Q1 2017 compared to Q4 2016 resulted
primarily from decreases in expenses for salaries, professional
services, occupancy, and other expenses offset, in part, by an
increase in technology and communications costs and reflects
Customers' slower growth.
- The $3.7 million decrease in income tax expense in Q1 2017
compared to Q4 2016 was primarily attributable to the $3.5 million
tax benefit recognized in Q1 2017 as a result of the development of
tax strategies that allow for the recognition of the tax benefit
from losses recorded for impairment charges on Religare Enterprises
equity securities.
- BankMobile's net GAAP accounting loss decreased by $2.3 million
to $1.2 million in Q1 2017 compared to Q4 2016 as a result of the
high level of student loan disbursements in January 2017 and the
related higher student spending generating interchange income in Q1
2017. It is noted that BankMobile as a business segment was
profitable in Q1 2017 after an allocation of $4.3 million of
interest income to BankMobile for the use of low/no cost deposits
generated by the BankMobile business.
The following table presents a summary of key earnings and
performance metrics for the quarter ended March 31, 2017 and
the preceding four quarters, respectively:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
EARNINGS SUMMARY - UNAUDITED |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands,
except per-share data) |
|
|
|
|
|
|
Q1 |
Q4 |
Q3 |
Q2 |
Q1 |
|
2017 |
2016 |
2016 |
2016 |
2016 |
|
|
|
|
|
|
Net income available to
common shareholders |
$ |
22,132 |
|
$ |
16,213 |
|
$ |
18,655 |
|
$ |
17,421 |
|
$ |
16,898 |
|
Basic earnings per
common share ("EPS") |
$ |
0.73 |
|
$ |
0.56 |
|
$ |
0.68 |
|
$ |
0.64 |
|
$ |
0.63 |
|
Diluted EPS |
$ |
0.67 |
|
$ |
0.51 |
|
$ |
0.63 |
|
$ |
0.59 |
|
$ |
0.58 |
|
Average common shares
outstanding - basic |
30,407,060 |
|
28,978,115 |
|
27,367,551 |
|
27,080,676 |
|
26,945,062 |
|
Average common shares
outstanding - diluted |
32,789,160 |
|
31,581,811 |
|
29,697,207 |
|
29,504,329 |
|
29,271,255 |
|
Shares outstanding
period end |
30,636,327 |
|
30,289,917 |
|
27,544,217 |
|
27,286,833 |
|
27,037,005 |
|
Return on average
assets |
1.09 |
% |
0.84 |
% |
0.89 |
% |
0.85 |
% |
0.87 |
% |
Return on average
common equity |
13.80 |
% |
10.45 |
% |
13.21 |
% |
13.07 |
% |
13.23 |
% |
Return on average
assets - pre-tax and pre-provision (1) |
1.51 |
% |
1.25 |
% |
1.51 |
% |
1.44 |
% |
1.40 |
% |
Return on average
common equity - pre-tax and pre-provision (2) |
20.07 |
% |
16.58 |
% |
23.59 |
% |
23.38 |
% |
21.87 |
% |
Net interest margin,
tax equivalent |
2.73 |
% |
2.84 |
% |
2.83 |
% |
2.83 |
% |
2.88 |
% |
Efficiency ratio |
56.82 |
% |
57.70 |
% |
61.06 |
% |
53.47 |
% |
53.74 |
% |
Non-performing loans
(NPLs) to total loans (including held-for-sale loans) |
0.33 |
% |
0.22 |
% |
0.16 |
% |
0.17 |
% |
0.20 |
% |
Reserves to
non-performing loans |
149.85 |
% |
215.31 |
% |
287.88 |
% |
268.98 |
% |
242.10 |
% |
Net charge-offs
(recoveries) |
$ |
482 |
|
$ |
770 |
|
$ |
288 |
|
$ |
1,060 |
|
$ |
(455 |
) |
Tier 1 capital to
average assets (leverage ratio) |
9.04 |
% |
9.07 |
% |
8.18 |
% |
7.14 |
% |
7.15 |
% |
Common equity Tier 1
capital to risk-weighted assets (3) |
8.51 |
% |
8.49 |
% |
7.12 |
% |
6.82 |
% |
7.20 |
% |
Tier 1 capital to
risk-weighted assets (3) |
11.35 |
% |
11.41 |
% |
9.90 |
% |
8.56 |
% |
8.31 |
% |
Total capital to
risk-weighted assets (3) |
12.99 |
% |
13.05 |
% |
11.63 |
% |
10.42 |
% |
10.29 |
% |
Tangible common equity
to average tangible assets (4) |
6.72 |
% |
6.66 |
% |
5.89 |
% |
5.71 |
% |
6.17 |
% |
Book value per common
share |
$ |
21.62 |
|
$ |
21.08 |
|
$ |
20.78 |
|
$ |
19.98 |
|
$ |
19.22 |
|
Tangible book value per
common share (period end) (5) |
$ |
21.04 |
|
$ |
20.49 |
|
$ |
20.16 |
|
$ |
19.35 |
|
$ |
19.08 |
|
Period end stock
price |
$ |
31.53 |
|
$ |
35.82 |
|
$ |
25.16 |
|
$ |
25.13 |
|
$ |
23.63 |
|
|
|
|
|
|
|
(1)
Non-GAAP measure calculated as GAAP net income, plus provision for
loan losses and income tax expense divided by average total
assets. |
(2)
Non-GAAP measure calculated as GAAP net income available to common
shareholders, plus provision for loan losses and income tax expense
divided by average common equity. |
(3) Risk
based regulatory capital ratios are estimated for Q1 2017. |
(4)
Non-GAAP measure calculated as GAAP total shareholders' equity less
preferred stock and goodwill and other intangibles divided by total
average assets less average goodwill and other intangibles. |
(5)
Non-GAAP measure calculated as GAAP total shareholders' equity less
preferred stock and goodwill and other intangibles divided by
common shares outstanding at period end. |
|
Capital
Customers recognizes the importance of not only being well
capitalized in the current regulatory environment but to have
adequate capital buffers to absorb any unexpected shocks.
"Our capital ratios improved significantly during 2016 due to
continued strong earnings, planned slow down in loan growth, and
successful preferred and common stock offerings during the year,"
stated Mr. Sidhu. "We are targeting a Tier I capital ratio of
9.0% or higher and a total risk-based capital ratio of around 13.0%
as we get ready to cross the $10 billion mark," Mr. Sidhu
continued. At March 31, 2017, Customers is preliminarily
calculating its Tier 1 leverage ratio at 9.04% and its total
risk-based capital ratio at 12.99%. "We expect to maintain
compliance with the targeted capital levels in 2017 and future
years," concluded Mr. Sidhu.
BankMobile
The BankMobile division serviced about 1.7 million checking
accounts, including over 1.2 million active deposit accounts, as of
March 31, 2017. The combined businesses also have the
potential to add in excess of 400,000 new student accounts
annually. Since the acquisition of the Disbursements
business, BankMobile has added over 280,000 new accounts and
converted over 374,000 accounts at the student account holder's
election from a prior business partner of Higher One. During Q1
2017, Customers announced it had entered into an agreement to sell
the BankMobile segment to allow Customers Bank to grow without the
constraints on the Bank's activities imposed by the Durbin
Amendment and benefit Customers' shareholders.
Managing Commercial Real Estate Concentration Risks and
Providing High Net Worth Families Loans for Their Multi-Family
Holdings
Customers' loans collateralized by multi-family properties were
approximately 41.5% of Customers' total loan portfolio and
approximately 337% of total risk-based capital at March 31,
2017. Recognizing the risks that accompany certain elements
of commercial real estate ("CRE") lending, Customers has as part of
its core strategies studiously sought to limit its risks and has
concluded that it has appropriate risk management systems in place
to manage this portfolio. Customers' total real estate construction
and development exposure, arguably the riskiest area of CRE, was
about $60 million at March 31, 2017.
Customers' multifamily exposures are focused principally on
loans to high net worth families collateralized by multi-family
properties that are of modest size and subject to what Customers
believes are conservative underwriting standards. Customers
believes it has a strong risk management process to manage the
portfolio risks prospectively and that this portfolio will perform
well even under a stressed scenario. Following are some unique
characteristics of Customers' multi-family loan portfolio:
- Principally concentrated in New York City and principally to
high net worth families;
- Average loan size is $6.7 million;
- Median annual debt service coverage ratio is 139%;
- Median loan-to-value is 68.45%;
- All loans are individually stressed with an increase of 1% and
2% to the cap rate and an increase of 1.5% and 3% in loan interest
rates;
- All properties are inspected prior to a loan being granted and
monitored thereafter on an annual basis by dedicated portfolio
managers; and
- Credit approval process is independent of customer sales and
portfolio management process.
Customers' total CRE loan exposures subject to regulatory
concentration guidelines include construction loans of $60 million,
multi-family loans of $3.4 billion, and non-owner occupied
commercial real estate loans of $1.1 billion, which represent 454%
of total risk-based capital on a combined basis.
Asset Quality and Interest Rate Risk
Risk management is a critical component of how Customers creates
long-term shareholder value and Customers believes that two of the
most important risks of banking to be understood and managed in an
uncertain economy are asset quality and interest rate risk.
Customers believes that asset quality risks must be diligently
addressed during good economic times with prudent underwriting
standards so that when the economy deteriorates the bank's capital
is sufficient to absorb all losses without threatening its ability
to operate and serve its community and other constituents.
"Customers adopted prudent underwriting standards in 2010 when the
current management team assumed responsibility for building the
Bank and has not compromised those standards," stated Mr. Sidhu.
"Customers' non-performing loans at March 31, 2017 were only
0.33% of total loans, compared to our peer group non-performing
loans of approximately 0.89% of total loans, and industry average
non-performing loans of 1.55% of total loans. Our expectation is
superior asset quality performance in good times and in difficult
years," said Mr. Sidhu. "The recent uptick in non-performing loans
reflects a handful of commercial borrowers experiencing challenges
with their business models, we believe that we have set aside
sufficient loss reserves for this recent uptick, and we expect the
level of non-performing loans to stabilize in the near future," Mr
Sidhu commented.
Interest rate risk is another critical element for banks to
manage. A significant shift in interest rates can have a
devastating effect on a bank's profitability for multiple years.
Banks can position their assets and liabilities to speculate on
future interest rate changes with the hope of gaining earnings by
guessing the next movement in interest rates. "Customers' objective
is to manage the estimated effect of future interest rate changes,
up or down, to a neutral effect on net interest income, so not
speculating on whether interest rates go up or down. At
March 31, 2017, we were slightly asset sensitive, hoping to
benefit somewhat from the anticipated higher short term
rates," said Mr. Sidhu. "This allows our team members to
focus on generating earnings from the business of banking,
aggregating deposits and making loans to customers in the
communities we serve," concluded Mr. Sidhu.
Diversified Loan Portfolio
Customers is a Business Bank that principally focuses on private
banking for loan and deposit services, covering 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 commercial
loans and banking services to privately held mortgage companies.
Commercial and industrial loans, including owner-occupied
commercial real estate loans, and commercial loans to mortgage
companies, were approximately $3.1 billion at March 31, 2017.
Multi-family loans, or loans to high net worth families, were
approximately $3.4 billion at March 31, 2017. Non-owner
occupied commercial real estate loans were approximately $1.2
billion at March 31, 2017. Consumer and residential mortgage
loans make up only about 6% of the loan portfolio.
Investment in Religare Enterprises Limited
In 2013, Customers invested approximately $23.0 million to
acquire 4.1 million common shares of Religare Enterprises Limited
("Religare"), a company headquartered near New Delhi, India,
pursuant to a strategy to develop strong U.S. and India
correspondent banking relationships subsequent to Religare applying
for a license to provide banking services in India. As
Religare's founders have been experiencing regulatory issues and
have been unable to obtain a banking license after three years, and
current prospects for obtaining such a license are remote,
Customers' Board of Directors has decided to completely exit its
investment in Religare common stock in 2017. As a result of
this decision, and in accordance with generally accepted accounting
principles, Customers has reduced its recorded investment in
Religare common stock to the current market value and recognized an
impairment charge of $1.7 million in Q1 2017 and $7.3 million in Q4
2016. Customers continues to study its alternatives on how to
exit the investment in an orderly fashion.
Conference Call
Date: |
|
Wednesday, April 26,
2017 |
Time: |
|
5:00 PM ET |
US Dial-in: |
|
888-632-5004 |
International
Dial-in: |
|
913-312-2359 |
Participant Code: |
|
184238 |
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 beginning
April 26, 2017 at 8:00 pm ET until 8:00 pm ET on May 26, 2017. To
listen, call within the United States (888) 203-1112 or
719-457-0820 when calling internationally. Please use the replay
pin number 5033971.
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 $9.9 billion that was named by Forbes magazine as the
35th Best Bank in America (there are over 6,200 banks in the United
States). 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, Massachusetts, New Hampshire
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 a
high level of personal customer service.
Customers Bancorp, Inc.'s 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 acquisition of the Disbursements business, the combination
of Customers’ BankMobile business with the acquired Disbursements
business, the implementation of Customers Bancorp, Inc.'s strategy
regarding BankMobile, the possibility of events, changes or other
circumstances occurring or existing that could result in the
previously-announced sale of BankMobile not closing or a material
delay occurring in the timing of its closing, the possibility that
the sale of BankMobile may be more expensive to complete than
anticipated, the possibility that the expected benefits of the
transaction may not be achieved and the possibility of Customers
incurring liabilities relating to the proposed transaction, 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, 2016, subsequently filed quarterly reports on
Form 8-K that update or provide information in addition to the
information included in the Form 10-K filing, 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.
|
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
ENDED - UNAUDITED |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
Q1 |
|
Q4 |
|
Q1 |
|
2017 |
|
2016 |
|
2016 |
Interest income: |
|
|
|
|
|
Loans
receivable, including fees |
$ |
61,461 |
|
|
$ |
59,502 |
|
|
$ |
54,472 |
|
Loans
held for sale |
13,946 |
|
|
19,198 |
|
|
14,106 |
|
Investment securities |
5,887 |
|
|
3,418 |
|
|
3,709 |
|
Other |
1,800 |
|
|
1,491 |
|
|
1,111 |
|
Total
interest income |
83,094 |
|
|
83,609 |
|
|
73,398 |
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
Deposits |
14,317 |
|
|
13,897 |
|
|
10,208 |
|
Other
borrowings |
1,608 |
|
|
1,571 |
|
|
1,606 |
|
FHLB
advances |
3,060 |
|
|
2,322 |
|
|
2,268 |
|
Subordinated debt |
1,685 |
|
|
1,685 |
|
|
1,685 |
|
Total
interest expense |
20,670 |
|
|
19,475 |
|
|
15,767 |
|
Net
interest income |
62,424 |
|
|
64,134 |
|
|
57,631 |
|
Provision
for loan losses |
3,050 |
|
|
(261 |
) |
|
1,980 |
|
Net
interest income after provision for loan losses |
59,374 |
|
|
64,395 |
|
|
55,651 |
|
|
|
|
|
|
|
Non-interest
income: |
|
|
|
|
|
Mortgage
warehouse transactional fees |
2,221 |
|
|
2,845 |
|
|
2,548 |
|
Bank-owned life insurance |
1,367 |
|
|
1,106 |
|
|
1,123 |
|
Gain on
sale of loans |
1,328 |
|
|
1,549 |
|
|
644 |
|
Deposit
fees |
324 |
|
|
307 |
|
|
254 |
|
Interchange and card revenue |
203 |
|
|
156 |
|
|
144 |
|
Mortgage
loans and banking income |
155 |
|
|
232 |
|
|
165 |
|
Gain on
sale of investment securities |
— |
|
|
— |
|
|
26 |
|
Impairment loss on investment securities |
(1,703 |
) |
|
(7,262 |
) |
|
— |
|
Other |
1,532 |
|
|
1,988 |
|
|
363 |
|
Total
non-interest income |
5,427 |
|
|
921 |
|
|
5,267 |
|
|
|
|
|
|
|
Non-interest
expense: |
|
|
|
|
|
Salaries
and employee benefits |
16,163 |
|
|
17,362 |
|
|
16,397 |
|
Technology, communication and bank operations |
3,319 |
|
|
1,300 |
|
|
2,385 |
|
Professional services |
2,993 |
|
|
3,204 |
|
|
2,321 |
|
Occupancy |
2,586 |
|
|
2,942 |
|
|
2,238 |
|
FDIC
assessments, taxes, and regulatory fees |
1,632 |
|
|
1,803 |
|
|
3,841 |
|
Loan
workout |
521 |
|
|
566 |
|
|
418 |
|
Advertising and promotion |
180 |
|
|
94 |
|
|
142 |
|
Other
real estate owned (income) expense |
(55 |
) |
|
290 |
|
|
287 |
|
Other |
2,808 |
|
|
2,948 |
|
|
3,842 |
|
Total
non-interest expense |
30,147 |
|
|
30,509 |
|
|
31,871 |
|
Income
from continuing operations before income tax expense |
34,654 |
|
|
34,807 |
|
|
29,047 |
|
Income
tax expense |
7,730 |
|
|
11,470 |
|
|
9,739 |
|
Net income from continuing operations |
26,924 |
|
|
23,337 |
|
|
19,308 |
|
|
|
|
|
|
|
Loss from
discontinued operations |
(1,898 |
) |
|
(5,659 |
) |
|
(1,812 |
) |
Income
tax benefit from discontinued operations |
(721 |
) |
|
(2,150 |
) |
|
(688 |
) |
Net loss
from discontinued operations |
(1,177 |
) |
|
(3,509 |
) |
|
(1,124 |
) |
Net income |
25,747 |
|
|
19,828 |
|
|
18,184 |
|
Preferred stock dividends |
3,615 |
|
|
3,615 |
|
|
1,286 |
|
Net income available to common shareholders |
$ |
22,132 |
|
|
$ |
16,213 |
|
|
$ |
16,898 |
|
|
|
|
|
|
|
Basic
earnings per common share from continuing operations |
$ |
0.77 |
|
|
$ |
0.68 |
|
|
$ |
0.67 |
|
Basic
earnings per common share |
$ |
0.73 |
|
|
$ |
0.56 |
|
|
$ |
0.63 |
|
Diluted
earnings per common share from continuing operations |
$ |
0.71 |
|
|
$ |
0.62 |
|
|
$ |
0.62 |
|
Diluted
earnings per common share |
$ |
0.67 |
|
|
$ |
0.51 |
|
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES |
|
|
CONSOLIDATED BALANCE SHEET -
UNAUDITED |
|
|
(Dollars in
thousands) |
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
2017 |
|
2016 |
|
2016 |
ASSETS |
|
|
|
|
|
Cash and due from
banks |
$ |
5,004 |
|
|
$ |
17,485 |
|
|
$ |
63,849 |
|
Interest-earning
deposits |
152,126 |
|
|
227,224 |
|
|
198,789 |
|
Cash and
cash equivalents |
157,130 |
|
|
244,709 |
|
|
262,638 |
|
Investment securities
available for sale, at fair value |
1,017,300 |
|
|
493,474 |
|
|
556,165 |
|
Loans held for
sale |
1,684,548 |
|
|
2,117,510 |
|
|
1,969,280 |
|
Loans receivable |
6,596,747 |
|
|
6,142,390 |
|
|
5,906,841 |
|
Allowance for loan
losses |
(39,883 |
) |
|
(37,315 |
) |
|
(37,605 |
) |
Total
loans receivable, net of allowance for loan losses |
6,556,864 |
|
|
6,105,075 |
|
|
5,869,236 |
|
FHLB, Federal Reserve
Bank, and other restricted stock |
85,218 |
|
|
68,408 |
|
|
92,269 |
|
Accrued interest
receivable |
25,603 |
|
|
23,690 |
|
|
21,206 |
|
Bank premises and
equipment, net |
11,830 |
|
|
12,259 |
|
|
12,031 |
|
Bank-owned life
insurance |
213,005 |
|
|
161,494 |
|
|
158,339 |
|
Other real estate
owned |
2,738 |
|
|
3,108 |
|
|
5,106 |
|
Goodwill and other
intangibles |
3,636 |
|
|
3,639 |
|
|
3,648 |
|
Assets held for
sale |
72,915 |
|
|
79,271 |
|
|
2,661 |
|
Other assets |
75,849 |
|
|
70,099 |
|
|
86,303 |
|
Total assets |
$ |
9,906,636 |
|
|
$ |
9,382,736 |
|
|
$ |
9,038,882 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
Demand, non-interest
bearing deposits |
$ |
507,278 |
|
|
$ |
512,664 |
|
|
$ |
445,298 |
|
Interest-bearing
deposits |
6,119,783 |
|
|
6,334,316 |
|
|
5,696,582 |
|
Total
deposits |
6,627,061 |
|
|
6,846,980 |
|
|
6,141,880 |
|
Non-interest bearing
deposits held for sale |
702,410 |
|
|
453,394 |
|
|
334,270 |
|
Federal funds
purchased |
215,000 |
|
|
83,000 |
|
|
80,000 |
|
FHLB advances |
1,206,550 |
|
|
868,800 |
|
|
1,633,700 |
|
Other borrowings |
87,289 |
|
|
87,123 |
|
|
86,624 |
|
Subordinated debt |
108,807 |
|
|
108,783 |
|
|
108,709 |
|
Other liabilities held
for sale |
36,382 |
|
|
31,403 |
|
|
2,501 |
|
Accrued interest
payable and other liabilities |
43,320 |
|
|
47,381 |
|
|
51,949 |
|
Total liabilities |
9,026,819 |
|
|
8,526,864 |
|
|
8,439,633 |
|
|
|
|
|
|
|
Preferred stock |
217,471 |
|
|
217,471 |
|
|
79,677 |
|
Common stock |
31,167 |
|
|
30,820 |
|
|
27,567 |
|
Additional paid in
capital |
428,454 |
|
|
427,008 |
|
|
364,162 |
|
Retained earnings |
215,830 |
|
|
193,698 |
|
|
141,409 |
|
Accumulated other
comprehensive loss |
(4,872 |
) |
|
(4,892 |
) |
|
(5,333 |
) |
Treasury stock, at
cost |
(8,233 |
) |
|
(8,233 |
) |
|
(8,233 |
) |
Total shareholders' equity |
879,817 |
|
|
855,872 |
|
|
599,249 |
|
Total liabilities & shareholders' equity |
$ |
9,906,636 |
|
|
$ |
9,382,736 |
|
|
$ |
9,038,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
AVERAGE BALANCE SHEET / NET INTEREST MARGIN
(UNAUDITED) |
(Dollars in thousands) |
|
|
|
|
|
|
Three months ended |
|
March 31, |
|
December 31, |
|
March 31, |
|
2017 |
|
2016 |
|
2016 |
|
Average Balance |
Average yield or cost (%) |
|
Average Balance |
Average yield or cost (%) |
|
Average Balance |
Average yield or cost (%) |
Assets |
|
|
|
|
|
|
|
|
Interest earning
deposits |
$ |
498,364 |
|
0.79 |
% |
|
$ |
265,432 |
|
0.56 |
% |
|
$ |
184,368 |
|
0.53 |
% |
Investment
securities |
829,730 |
|
2.88 |
% |
|
515,549 |
|
2.65 |
% |
|
562,459 |
|
2.64 |
% |
Loans held for
sale |
1,426,701 |
|
3.96 |
% |
|
2,121,899 |
|
3.60 |
% |
|
1,563,399 |
|
3.63 |
% |
Loans receivable |
6,427,682 |
|
3.88 |
% |
|
6,037,739 |
|
3.92 |
% |
|
5,678,872 |
|
3.86 |
% |
Other interest-earning
assets |
75,980 |
|
4.41 |
% |
|
66,587 |
|
6.68 |
% |
|
80,135 |
|
4.34 |
% |
Total interest earning
assets |
9,258,457 |
|
3.63 |
% |
|
9,007,206 |
|
3.69 |
% |
|
8,069,233 |
|
3.66 |
% |
Non-interest earning
assets |
271,606 |
|
|
|
256,620 |
|
|
|
292,336 |
|
|
Assets held for
sale |
77,478 |
|
|
|
75,332 |
|
|
|
2,664 |
|
|
Total assets |
$ |
9,607,541 |
|
|
|
$ |
9,339,158 |
|
|
|
$ |
8,364,233 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Total interest bearing
deposits (1) |
$ |
6,213,186 |
|
0.93 |
% |
|
$ |
6,382,010 |
|
0.87 |
% |
|
$ |
5,473,796 |
|
0.75 |
% |
Borrowings |
1,130,490 |
|
2.28 |
% |
|
919,462 |
|
2.42 |
% |
|
1,480,828 |
|
1.51 |
% |
Total interest bearing
liabilities |
7,343,676 |
|
1.14 |
% |
|
7,301,472 |
|
1.06 |
% |
|
6,954,624 |
|
0.91 |
% |
Non-interest bearing
deposits (1) |
524,211 |
|
|
|
546,827 |
|
|
|
428,925 |
|
|
Non-interest bearing
deposits held for sale (1) |
790,983 |
|
|
|
544,900 |
|
|
|
348,648 |
|
|
Total deposits &
borrowings |
8,658,870 |
|
0.97 |
% |
|
8,393,199 |
|
0.92 |
% |
|
7,732,197 |
|
0.82 |
% |
Other non-interest
bearing liabilities |
50,351 |
|
|
|
81,136 |
|
|
|
43,620 |
|
|
Liabilities held for
sale |
30,326 |
|
|
|
30,343 |
|
|
|
2,407 |
|
|
Total liabilities |
8,739,547 |
|
|
|
8,504,678 |
|
|
|
7,778,224 |
|
|
Shareholders' equity |
867,994 |
|
|
|
834,480 |
|
|
|
586,009 |
|
|
Total liabilities and shareholders' equity |
$ |
9,607,541 |
|
|
|
$ |
9,339,158 |
|
|
|
$ |
8,364,233 |
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin |
|
2.73 |
% |
|
|
2.83 |
% |
|
|
2.87 |
% |
Net interest
margin tax equivalent |
|
2.73 |
% |
|
|
2.84 |
% |
|
|
2.88 |
% |
|
|
|
|
|
|
|
|
|
(1) Total costs of deposits (including interest bearing and
non-interest bearing) were 0.77%, 0.74% and 0.66% for the three
months ended March 31, 2017, December 31, 2016 and March 31, 2016,
respectively. |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
PERIOD END LOAN COMPOSITION
(UNAUDITED) |
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
Commercial: |
|
|
|
|
|
Multi-family |
$ |
3,438,482 |
|
|
$ |
3,214,999 |
|
|
$ |
3,237,855 |
|
Mortgage
warehouse |
1,739,377 |
|
|
2,171,763 |
|
|
1,988,657 |
|
Commercial & industrial (1) |
1,335,170 |
|
|
1,315,905 |
|
|
1,112,290 |
|
Commercial real estate- non-owner occupied |
1,230,738 |
|
|
1,193,715 |
|
|
1,052,162 |
|
Construction |
74,956 |
|
|
64,789 |
|
|
103,061 |
|
Total
commercial loans |
7,818,723 |
|
|
7,961,171 |
|
|
7,494,025 |
|
|
|
|
|
|
|
Consumer: |
|
|
|
|
|
Residential |
363,584 |
|
|
194,197 |
|
|
268,075 |
|
Manufactured housing |
99,182 |
|
|
101,730 |
|
|
110,830 |
|
Other
consumer |
2,640 |
|
|
2,726 |
|
|
3,000 |
|
Total
consumer loans |
465,406 |
|
|
298,653 |
|
|
381,905 |
|
Deferred
(fees)/costs and unamortized (discounts)/premiums, net |
(2,834 |
) |
|
76 |
|
|
191 |
|
Total
loans |
$ |
8,281,295 |
|
|
$ |
8,259,900 |
|
|
$ |
7,876,121 |
|
|
|
|
|
|
|
(1)
Commercial & industrial loans, including owner occupied
commercial real estate loans. |
|
|
|
|
|
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES |
|
|
PERIOD END DEPOSIT COMPOSITION (UNAUDITED) |
|
|
(Dollars in thousands) |
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
2017 |
|
2016 |
|
2016 |
|
|
|
|
|
|
Demand,
non-interest bearing |
$ |
507,278 |
|
|
$ |
512,664 |
|
|
$ |
445,298 |
|
Demand,
interest bearing |
317,638 |
|
|
339,398 |
|
|
133,539 |
|
Savings |
39,560 |
|
|
40,814 |
|
|
38,843 |
|
Money
market |
3,201,116 |
|
|
3,122,342 |
|
|
3,153,871 |
|
Time
deposits |
2,561,469 |
|
|
2,831,762 |
|
|
2,370,329 |
|
Total
deposits |
$ |
6,627,061 |
|
|
$ |
6,846,980 |
|
|
$ |
6,141,880 |
|
|
|
|
|
|
|
BankMobile
non-interest bearing deposits included in liabilities held for
sale, and excluded from the table above, were $702 million, $453
million and $334 million, respectively, as of March 31, 2017,
December 31, 2016 and March 31, 2016. BankMobile interest
bearing deposits included in liabilities held for sale were $6
million, $3 million and $2 million, respectively, as of March 31,
2017, December 31, 2016 and March 31, 2016. |
|
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES |
ASSET QUALITY - UNAUDITED |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
As of March 31, 2017 |
As of December 31, 2016 |
As of March 31, 2016 |
|
Total Loans |
Non Accrual /NPLs |
Total Credit Reserves |
NPLs / Total Loans |
Total Reserves to Total
NPLs |
Total Loans |
Non Accrual /NPLs |
Total Credit Reserves |
NPLs / Total Loans |
Total Reserves to Total
NPLs |
Total Loans |
Non Accrual /NPLs |
Total Credit Reserves |
NPLs / Total Loans |
Total Reserves to Total
NPLs |
Loan Type |
Originated Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-Family |
$ |
3,435,109 |
|
$ |
— |
|
$ |
12,283 |
|
— |
% |
— |
% |
$ |
3,211,516 |
|
$ |
— |
|
$ |
11,602 |
|
— |
% |
— |
% |
$ |
3,204,625 |
|
$ |
— |
|
$ |
12,135 |
|
— |
% |
— |
% |
Commercial & Industrial (1) |
1,294,031 |
|
19,819 |
|
14,678 |
|
1.53 |
% |
74.06 |
% |
1,271,237 |
|
10,185 |
|
12,560 |
|
0.80 |
% |
123.32 |
% |
1,044,325 |
|
6,838 |
|
10,058 |
|
0.65 |
% |
147.09 |
% |
Commercial Real Estate- Non-Owner Occupied |
1,197,729 |
|
— |
|
4,681 |
|
— |
% |
— |
% |
1,158,531 |
|
— |
|
4,569 |
|
— |
% |
— |
% |
1,003,667 |
|
271 |
|
4,073 |
|
0.03 |
% |
1,502.95 |
% |
Residential |
113,043 |
|
381 |
|
2,197 |
|
0.34 |
% |
576.64 |
% |
114,510 |
|
341 |
|
2,270 |
|
0.30 |
% |
665.69 |
% |
115,532 |
|
32 |
|
2,082 |
|
0.03 |
% |
6,506.25 |
% |
Construction |
74,955 |
|
— |
|
885 |
|
— |
% |
— |
% |
64,789 |
|
— |
|
772 |
|
— |
% |
— |
% |
102,827 |
|
— |
|
1,264 |
|
— |
% |
— |
% |
Other consumer |
169 |
|
— |
|
9 |
|
— |
% |
— |
% |
190 |
|
— |
|
12 |
|
— |
% |
— |
% |
126 |
|
— |
|
7 |
|
— |
% |
— |
% |
Total Originated Loans |
6,115,036 |
|
20,200 |
|
34,733 |
|
0.33 |
% |
171.95 |
% |
5,820,773 |
|
10,526 |
|
31,785 |
|
0.18 |
% |
301.97 |
% |
5,471,102 |
|
7,141 |
|
29,619 |
|
0.13 |
% |
414.77 |
% |
Loans Acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Acquisitions |
161,200 |
|
4,893 |
|
4,866 |
|
3.04 |
% |
99.45 |
% |
167,946 |
|
5,030 |
|
5,244 |
|
3.00 |
% |
104.25 |
% |
202,080 |
|
6,616 |
|
7,518 |
|
3.27 |
% |
113.63 |
% |
Loan Purchases |
323,345 |
|
2,066 |
|
1,098 |
|
0.64 |
% |
53.15 |
% |
153,595 |
|
2,236 |
|
1,279 |
|
1.46 |
% |
57.20 |
% |
233,468 |
|
2,357 |
|
1,875 |
|
1.01 |
% |
79.55 |
% |
Total Acquired Loans |
484,545 |
|
6,959 |
|
5,964 |
|
1.44 |
% |
85.70 |
% |
321,541 |
|
7,266 |
|
6,523 |
|
2.26 |
% |
89.77 |
% |
435,548 |
|
8,973 |
|
9,393 |
|
2.06 |
% |
104.68 |
% |
Deferred costs and unamortized premiums, net |
(2,834 |
) |
— |
|
— |
|
— |
% |
— |
% |
76 |
|
— |
|
— |
|
— |
% |
— |
% |
191 |
|
— |
|
— |
|
— |
% |
— |
% |
Total Loans Held for Investment |
6,596,747 |
|
27,159 |
|
40,697 |
|
0.41 |
% |
149.85 |
% |
6,142,390 |
|
17,792 |
|
38,308 |
|
0.29 |
% |
215.31 |
% |
5,906,841 |
|
16,114 |
|
39,012 |
|
0.27 |
% |
242.10 |
% |
Total Loans Held for Sale |
1,684,548 |
|
— |
|
— |
|
— |
% |
— |
% |
2,117,510 |
|
— |
|
— |
|
— |
% |
— |
% |
1,969,280 |
|
— |
|
— |
|
— |
% |
— |
% |
Total Portfolio |
$ |
8,281,295 |
|
$ |
27,159 |
|
$ |
40,697 |
|
0.33 |
% |
149.85 |
% |
$ |
8,259,900 |
|
$ |
17,792 |
|
$ |
38,308 |
|
0.22 |
% |
215.31 |
% |
$ |
7,876,121 |
|
$ |
16,114 |
|
$ |
39,012 |
|
0.20 |
% |
242.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Commercial & industrial loans, including owner occupied
commercial real estate. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES |
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED |
(Dollars in thousands) |
|
|
|
|
|
|
For the Quarter Ended |
|
Q1 |
|
Q4 |
|
Q1 |
|
2017 |
|
2016 |
|
2016 |
Originated
Loans |
|
|
|
|
|
Commercial &
Industrial (1) |
$ |
(45 |
) |
|
$ |
2,046 |
|
|
$ |
— |
|
Residential |
31 |
|
|
— |
|
|
— |
|
Other consumer |
— |
|
|
— |
|
|
3 |
|
Total Net Charge-offs (Recoveries) from Originated
Loans |
(14 |
) |
|
2,046 |
|
|
3 |
|
Loans
Acquired |
|
|
|
|
|
Bank Acquisitions |
518 |
|
|
(1,629 |
) |
|
(458 |
) |
Loan Purchases |
— |
|
|
6 |
|
|
— |
|
Total Net Charge-offs (Recoveries) from Acquired
Loans |
518 |
|
|
(1,623 |
) |
|
(458 |
) |
Total Net Charge-offs (Recoveries) from Loans Held for
Investment |
504 |
|
|
423 |
|
|
(455 |
) |
Total Net Charge-offs (Recoveries) from BankMobile Loans
(2) |
(22 |
) |
|
347 |
|
|
— |
|
Total Net Charge-offs (Recoveries) |
$ |
482 |
|
|
$ |
770 |
|
|
$ |
(455 |
) |
|
|
|
|
|
|
(1)
Commercial & industrial loans, including owner occupied
commercial real estate. |
(2)
Includes activity for BankMobile related loans, primarily overdrawn
deposit accounts. |
|
|
|
|
|
|
CUSTOMERS BANCORP, INC. AND
SUBSIDIARIES |
SEGMENT REPORTING - UNAUDITED |
(Dollars
in thousands) |
|
|
|
Three months ended March 31,
2017 |
|
Community Business Banking |
|
BankMobile |
|
Consolidated |
Interest income
(1) |
$ |
78,832 |
|
|
$ |
4,262 |
|
|
$ |
83,094 |
|
Interest expense |
20,656 |
|
|
20 |
|
|
20,676 |
|
Net
interest income |
58,176 |
|
|
4,242 |
|
|
62,418 |
|
Provision for loan
losses |
3,050 |
|
|
— |
|
|
3,050 |
|
Non-interest
income |
5,427 |
|
|
17,327 |
|
|
22,754 |
|
Non-interest
expense |
30,147 |
|
|
19,219 |
|
|
49,366 |
|
Income
before income tax expense |
30,406 |
|
|
2,350 |
|
|
32,756 |
|
Income tax expense |
6,116 |
|
|
893 |
|
|
7,009 |
|
Net
income |
24,290 |
|
|
1,457 |
|
|
25,747 |
|
Preferred
stock dividends |
3,615 |
|
|
— |
|
|
3,615 |
|
Net
income available to common shareholders |
$ |
20,675 |
|
|
$ |
1,457 |
|
|
$ |
22,132 |
|
|
|
|
|
|
|
As of March 31,
2017 |
|
|
|
|
|
Goodwill and other
intangibles |
$ |
3,636 |
|
|
$ |
13,982 |
|
|
$ |
17,618 |
|
Total assets |
$ |
9,833,721 |
|
|
$ |
72,915 |
|
|
$ |
9,906,636 |
|
Total deposits |
$ |
6,627,061 |
|
|
$ |
708,419 |
|
|
$ |
7,335,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) - Amounts reported include funds transfer pricing of $4.3
million, a non-GAAP allocation of interest income, for the three
months ended March 31, 2017 credited to BankMobile for the
value provided to the Community Business Banking segment for the
use of low/no cost deposits. The discontinued operations loss
disclosed on the income statement does not consider the funds
transfer pricing benefit of the deposits.
BankMobile has been reported as discontinued operations in
Customers’ 2017 and 2016 consolidated financial results.
At March 31, 2017, Customers anticipates that cash, securities,
or loans (or a combination thereof) with a market value equal to
the amount of BankMobile deposits at the time the anticipated sale
closes will be included in the net assets transferred pursuant to
the terms of the contemplated purchase and sale agreement.
BankMobile segment results were not material to Customers’
consolidated financial results for the three months ended
March 31, 2016.
|
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO NON-GAAP MEASURES -
UNAUDITED |
(Dollars in thousands, except per share data)
Customers believes that the non-GAAP measurements disclosed
within this document are useful for investors, regulators,
management and others to evaluate our results of operations and
financial condition relative to other financial institutions. These
non-GAAP financial measures exclude from corresponding GAAP
measures the impact of certain elements that we do not believe are
representative of our financial results, which we believe enhance
an overall understanding of our performance. Investors should
consider our performance and financial condition as reported under
GAAP and all other relevant information when assessing our
performance or financial condition. 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.
Pre-tax
Pre-provision Return on Average Assets |
|
|
|
|
|
|
|
|
|
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
Q1 2016 |
GAAP Net Income |
$ |
25,747 |
|
|
$ |
19,828 |
|
|
$ |
21,207 |
|
|
$ |
19,483 |
|
|
$ |
18,184 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
Provision
for loan losses |
3,050 |
|
|
187 |
|
|
88 |
|
|
786 |
|
|
1,980 |
|
Income
tax expense |
7,009 |
|
|
9,320 |
|
|
14,558 |
|
|
12,964 |
|
|
9,051 |
|
Pre-Tax
Pre-provision Net Income |
$ |
35,806 |
|
|
$ |
29,335 |
|
|
$ |
35,853 |
|
|
$ |
33,233 |
|
|
$ |
29,215 |
|
|
|
|
|
|
|
|
|
|
|
Average Total
Assets |
$ |
9,607,541 |
|
|
$ |
9,339,158 |
|
|
$ |
9,439,573 |
|
|
$ |
9,259,192 |
|
|
$ |
8,364,233 |
|
|
|
|
|
|
|
|
|
|
|
Pre-tax Pre-provision
Return on Average Assets |
1.51 |
% |
|
1.25 |
% |
|
1.51 |
% |
|
1.44 |
% |
|
1.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
Pre-provision Return on Average Common Equity |
|
|
|
|
|
|
|
|
|
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
Q1 2016 |
GAAP Net Income
Available to Common Shareholders |
$ |
22,132 |
|
|
$ |
16,213 |
|
|
$ |
18,655 |
|
|
$ |
17,421 |
|
|
$ |
16,898 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
Provision
for loan losses |
3,050 |
|
|
187 |
|
|
88 |
|
|
786 |
|
|
1,980 |
|
Income
tax expense |
7,009 |
|
|
9,320 |
|
|
14,558 |
|
|
12,964 |
|
|
9,051 |
|
Pre-tax
Pre-provision Net Income Available to Common Shareholders |
$ |
32,191 |
|
|
$ |
25,720 |
|
|
$ |
33,301 |
|
|
$ |
31,171 |
|
|
$ |
27,929 |
|
|
|
|
|
|
|
|
|
|
|
Average Total
Shareholders' Equity |
$ |
867,994 |
|
|
$ |
834,480 |
|
|
$ |
710,403 |
|
|
$ |
655,051 |
|
|
$ |
586,009 |
|
Reconciling Item: |
|
|
|
|
|
|
|
|
|
Average
Preferred Stock |
(217,471 |
) |
|
(217,493 |
) |
|
(148,690 |
) |
|
(118,793 |
) |
|
(72,285 |
) |
Average
Common Equity |
$ |
650,523 |
|
|
$ |
616,987 |
|
|
$ |
561,713 |
|
|
$ |
536,258 |
|
|
$ |
513,724 |
|
|
|
|
|
|
|
|
|
|
|
Pre-tax Pre-provision
Return on Average Common Equity |
20.07 |
% |
|
16.58 |
% |
|
23.59 |
% |
|
23.38 |
% |
|
21.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity to Average Tangible Assets |
|
|
|
|
|
|
|
|
|
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
Q1 2016 |
GAAP - Total
Shareholders' Equity |
$ |
879,817 |
|
|
$ |
855,872 |
|
|
$ |
789,811 |
|
|
$ |
680,552 |
|
|
$ |
599,249 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
Preferred
Stock |
(217,471 |
) |
|
(217,471 |
) |
|
(217,549 |
) |
|
(135,270 |
) |
|
(79,677 |
) |
Goodwill
and Other Intangibles |
(17,618 |
) |
|
(17,621 |
) |
|
(16,924 |
) |
|
(17,197 |
) |
|
(3,648 |
) |
Tangible Common
Equity |
$ |
644,728 |
|
|
$ |
620,780 |
|
|
$ |
555,338 |
|
|
$ |
528,085 |
|
|
$ |
515,924 |
|
|
|
|
|
|
|
|
|
|
|
Average Total
Assets |
$ |
9,607,541 |
|
|
$ |
9,339,158 |
|
|
$ |
9,439,573 |
|
|
$ |
9,259,192 |
|
|
$ |
8,364,233 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
Average Goodwill and
Other Intangibles |
(17,620 |
) |
|
(16,847 |
) |
|
(17,101 |
) |
|
(6,037 |
) |
|
(3,650 |
) |
Average Tangible
Assets |
$ |
9,589,921 |
|
|
$ |
9,322,311 |
|
|
$ |
9,422,472 |
|
|
$ |
9,253,155 |
|
|
$ |
8,360,583 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
to Average Tangible Assets |
6.72 |
% |
|
6.66 |
% |
|
5.89 |
% |
|
5.71 |
% |
|
6.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book
Value per Common Share |
|
|
|
|
|
|
|
|
|
|
Q1 2017 |
|
Q4 2016 |
|
Q3 2016 |
|
Q2 2016 |
|
Q1 2016 |
Total Shareholders'
Equity |
$ |
879,817 |
|
|
$ |
855,872 |
|
|
$ |
789,811 |
|
|
$ |
680,552 |
|
|
$ |
599,249 |
|
Reconciling Items: |
|
|
|
|
|
|
|
|
|
Preferred
Stock |
(217,471 |
) |
|
(217,471 |
) |
|
(217,549 |
) |
|
(135,270 |
) |
|
(79,677 |
) |
Goodwill
and Other Intangibles |
(17,618 |
) |
|
(17,621 |
) |
|
(16,924 |
) |
|
(17,197 |
) |
|
(3,648 |
) |
Tangible Common
Equity |
$ |
644,728 |
|
|
$ |
620,780 |
|
|
$ |
555,338 |
|
|
$ |
528,085 |
|
|
$ |
515,924 |
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding |
30,636,327 |
|
|
30,289,917 |
|
|
27,544,217 |
|
|
27,286,833 |
|
|
27,037,005 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value per
Common Share |
$ |
21.04 |
|
|
$ |
20.49 |
|
|
$ |
20.16 |
|
|
$ |
19.35 |
|
|
$ |
19.08 |
|
|
|
|
|
|
|
|
|
|
|
Contacts:
Jay Sidhu, Chairman & CEO 610-935-8693
Richard Ehst, President & COO 610-917-3263
Investor Contact:
Robert Wahlman, CFO 610-743-8074
Customers Bancorp (NYSE:CUBI)
過去 株価チャート
から 9 2024 まで 10 2024
Customers Bancorp (NYSE:CUBI)
過去 株価チャート
から 10 2023 まで 10 2024