Customers Bancorp Expects to Report Continued Margin Expansion and Stable Operating Metrics for Q1 2020
2020年3月11日 - 9:40PM
ビジネスワイヤ(英語)
Chairman & CEO Discusses Current
Environment with Some Investors
Speaking with some investors after the close of market on
Tuesday, March 10, 2020, Customers Bancorp, Inc. (NYSE: CUBI)
Chairman & CEO Jay Sidhu disclosed the following:
- Despite the March 3 Federal Reserve Bank emergency rate cut of
50 basis points, and the significant flattening of the yield curve,
Customers Bancorp, Inc. (“Customers”) continues to expect to report
net interest margin expansion in first quarter 2020 (“Q1
2020”).
- These results are being achieved through diligent liability
management, lowering the cost of funding to offset the decline in
asset yields. “We expect about 40% of our loans to reprice downward
this quarter. We are making every effort to mitigate this impact by
lowering our funding costs in line with decreasing market rates,”
stated Sidhu.
- Customers is proactively reaching out to its clients to assist
them with any unexpected challenges from this current “black swan”
event. “We are laser focused on maintaining our credit quality
equal to or better than peer averages,” said Sidhu.
- Customers Bank expects its mortgage warehouse business to be
very strong in this rate environment, positively contributing to
net interest income and fee income.
- “We recognize the increased probability of an economic slowdown
and are tempering consumer loan growth accordingly. We have seen no
change in the performance of our existing consumer loan book; our
average FICO at origination is nearly 750 with no sub-prime loans.
We expect that in a lower interest rate environment, this portfolio
will have a shorter life, substantially paying off within two to
three years. We are also taking into consideration COVID 19 and the
uncertain economic environment in our CECL modeling assumptions and
expect to reserve conservatively for this portfolio,” commented
Sidhu.
- We do not have any material exposure in energy, transportation,
or entertainment sectors. Our exposure in hotels is only about 5%
of our loans with concentration in well-established brands and
strong borrowers.
- Looking ahead, Sidhu stated that Customers expects minimal
impact on Q1 2020 earnings per share and believes that even if the
Federal Reserve Bank lowers interest rates further by 1.0% and the
yield curve remains flat to negative, its 2020 core earnings
guidance of $3 per share may be impacted by approximately 5% to
10%.
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
$11.5 billion at December 31, 2019. 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, Illinois, Washington, D.C., 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. 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
to retain BankMobile for 2-3 years as announced in October 2018,
the possibility that the expected benefits of retaining BankMobile
for 2-3 years may not be achieved, or the possible effects on
Customers’ results of operations if BankMobile is never divested
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, 2019,
subsequently filed quarterly reports on Form 10-Q and current
reports on Form 8-K, including any amendments thereto, that update
or provide information in addition to the information included in
the Form 10-K and Form 10-Q filings, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200311005404/en/
Jay Sidhu, Chairman & CEO 610-935-8693 Carla
Leibold, CFO 484-923-8802 Bob Ramsey, Director of Investor
Relations 484-926-7118
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