Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported): July 25, 2024

(Exact name of registrant as specified in its charter)


Customers Bancorp, Inc.


Pennsylvania	001-35542	27-2290659
(State or other jurisdiction of incorporation or organization)	(Commission File number)	(IRS Employer Identification No.)

701 Reading Avenue

West Reading PA 19611

(Address of principal executive offices, including zip code)

(610) 933-2000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instructions A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(g) of the Act:

Title of Each Class

Trading Symbols

Name of Each Exchange on which Registered

Voting Common Stock, par value $1.00 per share

CUBI

New York Stock Exchange

Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series E, par value $1.00 per share

CUBI/PE

New York Stock Exchange

Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series F, par value $1.00 per share

CUBI/PF

New York Stock Exchange

5.375% Subordinated Notes due 2034

CUBB

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On July 25, 2024, Customers Bancorp, Inc. (the "Company") issued a press release announcing unaudited financial information for the quarter ended June 30, 2024, a copy of which is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

Item 7.01 Regulation FD Disclosure

The Company has posted to its website a slide presentation which is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto and incorporated by reference into Item 2.02 and Item 7.01, respectively, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed incorporated by reference into any of the Company's reports or filings with the SEC, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing. The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.


Exhibit						Description
Exhibit 99.1						Press Release dated July 25, 2024
Exhibit 99.2						Slide presentation dated July 2024

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.


			CUSTOMERS BANCORP, INC.

			By: /s/ Philip Watkins
			Name: Philip Watkins
			Title: Executive Vice President - Chief Financial Officer

Date: July 25, 2024

EXHIBIT INDEX


Exhibit No.						Description
99.1						Press Release dated July 25, 2024
99.2						Slide presentation dated July 2024

Exhibit 99.1

Customers Bancorp, Inc. (NYSE:CUBI)

701 Reading Avenue

West Reading, PA 19611

Contact:
David W. Patti, Communications Director 610-451-9452

Customers Bancorp Reports Results for Second Quarter 2024

Second Quarter 2024 Highlights

•Q2 2024 net income available to common shareholders was $54.3 million, or $1.66 per diluted share; ROAA was 1.11% and ROCE was 13.85%.

•Q2 2024 core earnings*1 were $48.6 million, or $1.49 per diluted share; Core ROAA* was 1.00% and Core ROCE* was 12.39%.

•CET 1 ratio of 12.8%2 at June 30, 2024, compared to 12.6% at March 31, 2024, above the approximately 11.5% target.

•TCE / TA ratio* of 7.7% at June 30, 2024, compared to 7.3% at March 31, 2024, above the approximately 7.5% target.

•Total loans and leases grew by $375.8 million in Q2 2024 from Q1 2024 or 11% annualized.

•Q2 2024 net interest margin, tax equivalent (“NIM”) was 3.29%, compared to Q1 2024 NIM of 3.10%, due to higher loan balances and lower cost of deposits.

•Q2 2024 deposit inflows from commercial customers of $0.6 billion, along with excess cash, funded the paydown of $0.5 billion of higher-cost consumer deposits and $0.3 billion of maturing wholesale CDs. Total deposits decreased by $283.3 million in Q2 2024 from Q1 2024 with significant continued positive mix shift.

•Total estimated insured deposits were 76%3 of total deposits at June 30, 2024, with immediately available liquidity covering estimated uninsured deposits3 by approximately 193%.

•Total borrowings declined by $176.6 million in Q2 2024 from Q1 2024 or 11.8%

•Non-performing assets were $47.4 million, or 0.23% of total assets, at June 30, 2024 compared to 0.17% at March 31, 2024. Allowance for credit losses on loans and leases equaled 280% of non-performing loans at June 30, 2024, compared to 374% at March 31, 2024.

•Q2 2024 provision for credit losses on loans and leases was $17.9 million compared to $16.0 million in Q1 2024 and the coverage of credit loss reserves for loans and leases held for investment was 1.08%. The coverage of credit loss reserves for loans and leases held for investment decreased modestly from 1.12% in Q1 2024.

•Q2 2024 book value per share and tangible book value per share* both grew by approximately $1.52, or 3.1% over Q1 2024, driven by strong quarterly earnings and a decrease in AOCI losses of $0.9 million over the same time period. Tangible book value per share* is $50.70 at June 30, 2024.

•Adopted a one-year common stock repurchase program to repurchase up to 497,509 shares.

*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

1 Excludes pre-tax unrealized gain on equity method investments purchased at a discount in Q2 2024 of $11.0 million, severance expense of $2.6 million, loss on investment securities of $0.7 million, FDIC special assessment expense of $0.2 million and derivative credit valuation adjustment of $0.1 million.

2 Regulatory capital ratios as of June 30, 2024 are estimates.

3 Uninsured deposits (estimate) of $5.8 billion to be reported on the Bank’s call report, less deposits of $1.3 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $143.6 million.

CEO Commentary

West Reading, PA, July 25, 2024 - “Customers Bancorp delivered another strong performance in the second quarter of 2024, continuing to deliver on our strategic priorities to grow our franchise value, our margins and our loans and low-cost deposits,” said Customers Bancorp Chairman and CEO Jay Sidhu. “We are pleased to share that actions we took over the last six quarters have enabled us to exceed our 11.5% CET1 and 7.5% TCE / TA ratio* targets. We are now positioned for strategic, relationship-based loan and deposit growth as we demonstrated this quarter. We have strong momentum as we pursue phase two of our deposit transformation – remixing existing higher-cost business unit deposits*1 and brokered deposits into lower-cost and granular deposits. We had a robust pipeline within our existing businesses which has been materially enhanced by the 10 new banking teams that joined Customers in April. In the quarter, we utilized deposit growth from commercial customers of $0.6 billion and existing excess cash to runoff $0.5 billion of higher-cost consumer deposits and repay $0.3 billion in wholesale CDs. Business unit deposit*1 gross inflows were, once again, broad-based with more than 20 different channels increasing balances and roughly half contributing $25 million or more. Our 10 new deposit focused banking teams, with only two months of client activity, have opened more than 1,000 new deposit accounts for more than 700 customers in the quarter. Our deposit pipelines continue to grow with an extraordinary conversion ratio. Our net interest margin expanded by 19 basis points in the second quarter to 3.29% outpacing current industry trends. This expansion was a function of improvements in both the asset and liability components of the balance sheet. Capital levels continued to build as evidenced by a 40 basis point increase in our TCE / TA ratio*. In June, our Board of Directors authorized a share repurchase program providing an additional capital deployment tool that can be utilized. Enhanced by the addition of our new banking teams, we believe we are extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.

“Our Q2 2024 GAAP earnings were $54.3 million, or $1.66 per diluted share, and core earnings* were $48.6 million, or $1.49 per diluted share. At June 30, 2024, our deposit base was well diversified, with approximately 76%2 of total deposits insured. We maintain a strong liquidity position, with $8.3 billion of liquidity immediately available, which covers approximately 193% of uninsured deposits2 and our loan to deposit ratio was 77%. We continue to focus loan production where we have a holistic and primary relationship. Total loans and leases grew by $357.7 million driven by strong commercial loan growth of $396.1 million primarily in our Corporate and Specialized verticals. Our loan pipeline continued to build during the second quarter, and we remain confident in the 10% – 15% loan growth outlook previously provided. We continue to build liquidity and capital to support the needs of our customers. At June 30, 2024, we had $3.0 billion of cash on hand leading to prudent balance sheet and liquidity management. Asset quality remains strong with our NPA ratio at just 0.23% of total assets and reserve levels are robust at 280% of total non-performing loans at the end of Q2 2024. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. Continued execution on our strategic priorities has positioned us favorably for success in 2024 from a capital, credit, liquidity, interest rate risk and earnings perspective. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. Tangible Book Value per share* grew to $50.70. We are excited and optimistic about the opportunities we had in the first half of 2024, which have been enhanced by the addition of the new banking teams,” Jay Sidhu continued.

1 Total deposits excluding wholesale CDs and BMTX student-related deposits.

2 Uninsured deposits (estimate) of $5.8 billion to be reported on the Bank’s call report, less deposits of $1.3 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $143.6 million.

Financial Highlights


(Dollars in thousands, except per share data)	At or Three Months Ended						Increase (Decrease)
	June 30, 2024			March 31, 2024
Profitability Metrics:
Net income available for common shareholders	$	54,300		$	45,926		$	8,374	18.2	%
Diluted earnings per share	$	1.66		$	1.40		$	0.26	18.6	%
Core earnings*	$	48,567		$	46,532		$	2,035	4.4	%
Adjusted core earnings*	$	48,567		$	55,137		$	(6,570)	(11.9)	%
Core earnings per share*	$	1.49		$	1.42		$	0.07	4.9	%
Adjusted core earnings per share*	$	1.49		$	1.68		$	(0.19)	(11.3)	%


Return on average assets (“ROAA”)	1.11		%	0.94		%	0.17
Core ROAA*	1.00		%	0.95		%	0.05
Adjusted core ROAA*	1.00		%	1.11		%	(0.11)

Return on average common equity (“ROCE”)	13.85		%	12.08		%	1.77
Core ROCE*	12.39		%	12.24		%	0.15
Adjusted core ROCE*	12.39		%	14.50		%	(2.11)
Core pre-tax pre-provision net income*	$	89,220		$	83,674		$	5,546	6.6	%
Adjusted core pre-tax pre-provision net income*	$	89,220		$	94,988		$	(5,768)	(6.1)	%

Net interest margin, tax equivalent	3.29		%	3.10		%	0.19

Yield on loans (Loan yield)	7.17		%	7.05		%	0.12

Cost of deposits	3.40		%	3.45		%	(0.05)
Efficiency ratio	51.87		%	54.58		%	(2.71)
Core efficiency ratio*	53.47		%	54.24		%	(0.77)
Adjusted core efficiency ratio*	53.47		%	48.02		%	5.45
Non-interest expense to average total assets	1.98		%	1.87		%	0.11
Core non-interest expense to average total assets*	1.93		%	1.86		%	0.07
Adjusted core non-interest expense to average total assets*	1.93		%	1.65		%	0.28
Balance Sheet Trends:
Total assets	$	20,942,975		$	21,347,367		$	(404,392)	(1.9)	%
Total cash and investment securities	$	6,523,036		$	7,338,025		$	(814,989)	(11.1)	%

Total loans and leases	$	13,632,639		$	13,256,871		$	375,768	2.8	%

Non-interest bearing demand deposits	$	4,474,862		$	4,688,880		$	(214,018)	(4.6)	%
Total deposits	$	17,678,093		$	17,961,383		$	(283,290)	(1.6)	%
Capital Metrics:
Common Equity	$	1,609,071		$	1,553,823		$	55,248	3.6	%
Tangible Common Equity*	$	1,605,442		$	1,550,194		$	55,248	3.6	%
Common Equity to Total Assets	7.7		%	7.3		%	0.4
Tangible Common Equity to Tangible Assets*	7.7		%	7.3		%	0.4

Book Value per common share	$	50.81		$	49.29		$	1.52	3.1	%
Tangible Book Value per common share*	$	50.70		$	49.18		$	1.52	3.1	%
Common equity Tier 1 capital ratio (1)	12.8		%	12.6		%	0.2
Total risk based capital ratio (1)	15.8		%	15.9		%	(0.1)

(1) Regulatory capital ratios as of June 30, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Financial Highlights


(Dollars in thousands, except per share data)	At or Three Months Ended			Increase (Decrease)						Six Months Ended						Increase (Decrease)
		June 30, 2024	June 30, 2023									June 30, 2024			June 30, 2023
Profitability Metrics:
Net income available for common shareholders				$	54,300		$	44,007		$	10,293		23.4	%		$	100,226		$	94,272		$	5,954	6.3	%
Diluted earnings per share				$	1.66		$	1.39		$	0.27		19.4	%		$	3.06		$	2.95		$	0.11	3.7	%
Core earnings*				$	48,567		$	52,163		$	(3,596)		(6.9)	%		$	95,099		$	103,306		$	(8,207)	(7.9)	%
Adjusted core earnings*				$	48,567		$	52,163		$	(3,596)		(6.9)	%		$	103,704		$	103,306		$	398	0.4	%
Core earnings per share*				$	1.49		$	1.65		$	(0.16)		(9.7)	%		$	2.90		$	3.22		$	(0.32)	(9.9)	%
Adjusted core earnings per share*				$	1.49		$	1.65		$	(0.16)		(9.7)	%		$	3.16		$	3.22		$	(0.06)	(1.9)	%


Return on average assets (“ROAA”)				1.11		%	0.88		%	0.23						1.02		%	0.96		%	0.06
Core ROAA*				1.00		%	1.03		%	(0.03)						0.98		%	1.04		%	(0.06)
Adjusted core ROAA*				1.00		%	1.03		%	(0.03)						1.06		%	1.04		%	0.02

Return on average common equity (“ROCE”)				13.85		%	13.22		%	0.63						12.98		%	14.57		%	(1.59)
Core ROCE*				12.39		%	15.67		%	(3.28)						12.32		%	15.97		%	(3.65)
Adjusted core ROCE*				12.39		%	15.67		%	(3.28)						13.43		%	15.97		%	(2.54)
Core pre-tax pre-provision net income*				$	89,220		$	96,833		$	(7,613)		(7.9)	%		$	172,894		$	186,115		$	(13,221)	(7.1)	%
Adjusted core pre-tax pre-provision net income*				$	89,220		$	96,833		$	(7,613)		(7.9)	%		$	184,208		$	186,115		$	(1,907)	(1.0)	%

Net interest margin, tax equivalent				3.29		%	3.15		%	0.14						3.20		%	3.06		%	0.14

Yield on loans (Loan yield)				7.17		%	6.83		%	0.34						7.11		%	6.77		%	0.34

Cost of deposits				3.40		%	3.11		%	0.29						3.43		%	3.22		%	0.21
Efficiency ratio				51.87		%	49.25		%	2.62						53.16		%	48.51		%	4.65
Core efficiency ratio*				53.47		%	47.84		%	5.63						53.85		%	47.49		%	6.36
Adjusted core efficiency ratio*				53.47		%	47.84		%	5.63						50.79		%	47.49		%	3.30
Non-interest expense to average total assets				1.98		%	1.65		%	0.33						1.93		%	1.60		%	0.33
Core non-interest expense to average total assets*				1.93		%	1.65		%	0.28						1.89		%	1.59		%	0.30
Adjusted core non-interest expense to average total assets*				1.93		%	1.65		%	0.28						1.79		%	1.59		%	0.20
Balance Sheet Trends:
Total assets				$	20,942,975		$	22,028,565		$	(1,085,590)		(4.9)	%
Total cash and investment securities				$	6,523,036		$	7,238,422		$	(715,386)		(9.9)	%

Total loans and leases				$	13,632,639		$	13,910,907		$	(278,268)		(2.0)	%

Non-interest bearing demand deposits				$	4,474,862		$	4,490,198		$	(15,336)		(0.3)	%
Total deposits				$	17,678,093		$	17,950,431		$	(272,338)		(1.5)	%
Capital Metrics:
Common Equity				$	1,609,071		$	1,318,858		$	290,213		22.0	%
Tangible Common Equity*				$	1,605,442		$	1,315,229		$	290,213		22.1	%
Common Equity to Total Assets				7.7		%	6.0		%	1.7
Tangible Common Equity to Tangible Assets*				7.7		%	6.0		%	1.7

Book Value per common share				$	50.81		$	42.16		$	8.65		20.5	%
Tangible Book Value per common share*				$	50.70		$	42.04		$	8.66		20.6	%
Common equity Tier 1 capital ratio (1)				12.8		%	10.3		%	2.5
Total risk based capital ratio (1)				15.8		%	13.2		%	2.6

(1) Regulatory capital ratios as of June 30, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Key Balance Sheet Trends

Loans and Leases

The following table presents the composition of total loans and leases as of the dates indicated:


(Dollars in thousands)	June 30, 2024		% of Total		March 31, 2024		% of Total		June 30, 2023		% of Total
Loans and Leases Held for Investment
Commercial:

Commercial & industrial:
Specialized lending	$	5,528,745	41.7	%	$	5,104,405	39.6	%	$	5,534,832	40.0	%
Other commercial & industrial (1)	1,092,146		8.2		1,113,517		8.6		1,240,908		9.0
Mortgage finance	1,122,812		8.5		1,071,146		8.3		1,108,598		8.0
Multifamily	2,067,332		15.6		2,123,675		16.5		2,151,734		15.6
Commercial real estate owner occupied	805,779		6.1		806,278		6.3		842,042		6.1
Commercial real estate non-owner occupied	1,202,606		9.1		1,182,084		9.2		1,211,091		8.8
Construction	163,409		1.2		185,601		1.3		212,214		1.5

Total commercial loans and leases	11,982,829		90.4		11,586,706		89.8		12,301,419		89.0
Consumer:
Residential	481,503		3.6		482,537		3.8		487,199		3.5
Manufactured housing	35,901		0.3		37,382		0.3		41,664		0.3

Installment:
Personal	474,481		3.6		492,892		3.8		752,470		5.4
Other	282,201		2.1		299,714		2.3		250,047		1.8
Total installment loans	756,682		5.7		792,606		6.1		1,002,517		7.2

Total consumer loans	1,274,086		9.6		1,312,525		10.2		1,531,380		11.0
Total loans and leases held for investment	$	13,256,915	100.0	%	$	12,899,231	100.0	%	$	13,832,799	100.0	%


Loans Held for Sale












Residential	$	2,684	0.7	%	$	870	0.2	%	$	1,234	1.6	%


Installment:
Personal	125,598		33.4		137,755		38.5		76,874		98.4
Other	247,442		65.9		219,015		61.3		—		—
Total installment loans	373,040		99.3		356,770		99.8		76,874		98.4


Total loans held for sale	$	375,724	100.0	%	$	357,640	100.0	%	$	78,108	100.0	%

Total loans and leases portfolio	$	13,632,639			$	13,256,871			$	13,910,907

(1) Includes PPP loans of $38.3 million, $52.0 million and $188.8 million as of June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

Loans and Leases Held for Investment

Loans and leases held for investment were $13.3 billion at June 30, 2024, up $357.7 million, or 2.8%, from March 31, 2024. Specialized lending increased $424.3 million, or 8.3% quarter-over-quarter, to $5.5 billion. Mortgage finance loans increased $51.7 million, or 4.8% quarter-over-quarter due to higher seasonal mortgage activity. Non-owner occupied commercial real estate loans increased modestly by $20.5 million, or 1.7% to $1.2 billion. Multifamily loans decreased $56.3 million, or 2.7% to $2.1 billion. Construction loans decreased $22.2 million, or 12.0% to $163.4 million. Other commercial and industrial loans decreased $21.4 million, or 1.9% quarter-over-quarter, to $1.1 billion. Consumer installment loans held for investment decreased $35.9 million, or 4.5% quarter-over-quarter, to $756.7 million due to the continued build out of the held-for-sale strategy and de-risking of the held-for-investment loan portfolio.

Loans and leases held for investment of $13.3 billion at June 30, 2024 were down $575.9 million, or 4.2%, year-over-year, largely driven by reduced balances in consumer installment loans of $245.8 million, or 24.5% year-over-year, other commercial and industrial loans of $148.8 million, which included a decrease in PPP loans primarily from guarantee payments, multifamily loans of $84.4 million, construction loans of $48.8 million and owner-occupied commercial real estate loans of $36.3 million.

Loans Held for Sale

Loans held for sale increased $18.1 million quarter-over-quarter, and were $375.7 million at June 30, 2024 due to the continued build out of the held-for-sale strategy in 2024.

Allowance for Credit Losses on Loans and Leases

The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:


	At or Three Months Ended						Increase (Decrease)		At or Three Months Ended						Increase (Decrease)
(Dollars in thousands)	June 30, 2024			March 31, 2024					June 30, 2024			June 30, 2023
Allowance for credit losses on loans and leases	$	132,436		$	133,296		$	(860)	$	132,436		$	139,656		$	(7,220)
Provision (benefit) for credit losses on loans and leases	$	17,851		$	15,953		$	1,898	$	17,851		$	22,363		$	(4,512)
Net charge-offs from loans held for investment	$	18,711		$	17,968		$	743	$	18,711		$	15,564		$	3,147

Annualized net charge-offs to average loans and leases	0.56		%	0.55		%			0.56		%	0.42		%
Coverage of credit loss reserves for loans and leases held for investment	1.08		%	1.12		%			1.08		%	1.09		%

Net charge-offs increased modestly with $18.7 million in Q2 2024, compared to $18.0 million in Q1 2024 and $15.6 million in Q2 2023.

Provision (benefit) for Credit Losses


	Three Months Ended				Increase (Decrease)		Three Months Ended				Increase (Decrease)
(Dollars in thousands)	June 30, 2024		March 31, 2024				June 30, 2024		June 30, 2023
Provision (benefit) for credit losses on loans and leases	$	17,851	$	15,953	$	1,898	$	17,851	$	22,363	$	(4,512)
Provision (benefit) for credit losses on available for sale debt securities	270		1,117		(847)		270		1,266		(996)

Provision for credit losses	18,121		17,070		1,051		18,121		23,629		(5,508)
Provision (benefit) for credit losses on unfunded commitments	1,594		430		1,164		1,594		(304)		1,898
Total provision for credit losses	$	19,715	$	17,500	$	2,215	$	19,715	$	23,325	$	(3,610)

The provision for credit losses on loans and leases in Q2 2024 was $17.9 million, compared to $16.0 million in Q1 2024. The higher provision in Q2 2024 was primarily due to an increase in commercial and industrial loan balances held for investment, partially offset by slight improvements in macroeconomic forecasts and by lower balances in consumer installment loans held for investment.

The provision for credit losses on available for sale investment securities in Q2 2024 was $0.3 million, compared to provision of $1.1 million in Q1 2024.

The provision for credit losses on loans and leases in Q2 2024 was $17.9 million, compared to $22.4 million in Q2 2023. The lower provision in Q2 2024 compared to the year ago period was primarily due to slight improvements in macroeconomic forecasts and by lower balances in consumer installment loans held for investment.

The provision for credit losses on available for sale investment securities in Q2 2024 was $0.3 million compared to provision of $1.3 million in Q2 2023.

Asset Quality

The following table presents asset quality metrics as of the dates indicated:


(Dollars in thousands)	June 30, 2024			March 31, 2024			Increase (Decrease)		June 30, 2024			June 30, 2023			Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)	$	47,380		$	35,654		$	11,726	$	47,380		$	28,244		$	19,136
Non-performing assets	$	47,444		$	35,753		$	11,691	$	47,444		$	28,380		$	19,064
NPLs to total loans and leases	0.35		%	0.27		%			0.35		%	0.20		%
Reserves to NPLs	279.52		%	373.86		%			279.52		%	494.46		%
NPAs to total assets	0.23		%	0.17		%			0.23		%	0.13		%

Loans and leases (1) risk ratings:
Commercial loans and leases
Pass	$	10,500,922		$	10,095,611		$	405,311	$	10,500,922		$	10,667,619		$	(166,697)
Special Mention	170,014			194,365			(24,351)		170,014			166,468			3,546
Substandard	270,898			282,163			(11,265)		270,898			272,301			(1,403)

Total commercial loans and leases	10,941,834			10,572,139			369,695		10,941,834			11,106,388			(164,554)
Consumer loans
Performing	1,256,816			1,293,457			(36,641)		1,256,816			1,508,208			(251,392)
Non-performing	17,270			19,068			(1,798)		17,270			23,172			(5,902)
Total consumer loans	1,274,086			1,312,525			(38,439)		1,274,086			1,531,380			(257,294)
Loans and leases receivable (1)	$	12,215,920		$	11,884,664		$	331,256	$	12,215,920		$	12,637,768		$	(421,848)

(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value and eligible PPP loans that are fully guaranteed by the Small Business Administration.

Over the last decade, the Bank has developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s commercial and industrial (“C&I”), mortgage finance, corporate and specialized lending lines of business, and multifamily loans for example, are characterized by conservative underwriting standards and historically low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, management employs a bottom-up data driven approach to analyze the commercial portfolio.

Total consumer installment loans held for investment at June 30, 2024 were less than 4% of total assets and approximately 6% of total loans and leases held for investment, and were supported by an allowance for credit losses of $49.8 million. At June 30, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 738, average debt-to-income of 20% and average borrower income of $106 thousand.

Non-performing loans at June 30, 2024 increased to 0.35% of total loans and leases, compared to 0.27% at March 31, 2024 and 0.20% at June 30, 2023. The $11.7 million increase in NPLs was primarily due to one multifamily credit and one commercial loan originated under the Federal Reserve’s Main Street Lending Program moving to nonaccrual status.

Investment Securities

The investment securities portfolio, including debt securities classified as available for sale (“AFS”) and held to maturity (“HTM”) provides periodic cash flows through regular maturities and amortization, can be used as collateral to secure additional funding, and is an important component of the Bank’s liquidity position.

The following table presents the composition of the investment securities portfolio as of the dates indicated:


(Dollars in thousands)	June 30, 2024		March 31, 2024		June 30, 2023
Debt securities, available for sale	$	2,477,758	$	2,571,139	$	2,797,940
Equity securities	33,892		33,729		26,698
Investment securities, at fair value	2,511,650		2,604,868		2,824,638
Debt securities, held to maturity	962,799		1,032,037		1,258,560
Total investment securities portfolio	$	3,474,449	$	3,636,905	$	4,083,198

Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At June 30, 2024, the AFS debt securities portfolio had a spot yield of 5.19%, an effective duration of approximately 2.0 years, and approximately 33% are variable rate. Additionally, 63% of the AFS securities portfolio was AAA rated at June 30, 2024. During the quarter, approximately $220 million of mostly floating rate CLOs were sold and a similar amount of fixed rate agency securities were purchased, reducing asset sensitivity and increasing high quality liquid assets.

At June 30, 2024, the HTM debt securities portfolio represented only 4.6% of total assets at June 30, 2024, had a spot yield of 4.16% and an effective duration of approximately 3.1 years. Additionally, at June 30, 2024, approximately 43% of the HTM securities were AAA rated and 46% were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

The following table presents the composition of our deposit portfolio as of the dates indicated:


(Dollars in thousands)	June 30, 2024		% of Total		March 31, 2024		% of Total		June 30, 2023		% of Total
Demand, non-interest bearing	$	4,474,862	25.3	%	$	4,688,880	26.1	%	$	4,490,198	25.0	%
Demand, interest bearing	5,894,056		33.4		5,661,775		31.5		5,551,037		30.9
Total demand deposits	10,368,918		58.7		10,350,655		57.6		10,041,235		55.9
Savings	1,573,661		8.9		2,080,374		11.6		1,048,229		5.8
Money market	3,539,815		20.0		3,347,843		18.6		2,004,264		11.2
Time deposits	2,195,699		12.4		2,182,511		12.2		4,856,703		27.1
Total deposits	$	17,678,093	100.0	%	$	17,961,383	100.0	%	$	17,950,431	100.0	%

Total deposits decreased $283.3 million, or 1.6%, to $17.7 billion at June 30, 2024 as compared to the prior quarter. Savings deposits decreased $506.7 million, or 24.4%, to $1.6 billion and non-interest bearing demand deposits decreased $214.0 million, or 4.6%, to $4.5 billion. The decrease in savings deposits resulted from an intentional reduction in higher cost consumer deposits. These decreases were offset by increases in interest bearing demand deposits of $232.3 million, or 4.1%, to $5.9 billion, money market deposits of $192.0 million, or 5.7%, to $3.5 billion and time deposits of $13.2 million, or 0.6%, to $2.2 billion. The total average cost of deposits decreased by 5 basis points to 3.40% in Q2 2024 from 3.45% in the prior quarter driven by positive deposit mix shift. Total estimated uninsured deposits were $4.3 billion1, or 24% of total deposits (inclusive of accrued interest) at June 30, 2024. Customers is also highly focused on total deposits with contractual term to manage its liquidity profile and the funding of loans and securities.

Total deposits decreased $272.3 million, or 1.5%, to $17.7 billion at June 30, 2024 as compared to a year ago. Time deposits decreased $2.7 billion, or 54.8% to $2.2 billion and non-interest bearing demand deposits decreased $15.3 million, or 0.3%, to $4.5 billion. These decreases were offset by increases in money market deposits of $1.5 billion, or 76.6%, to $3.5 billion, savings deposits of $525.4 million, or 50.1%, to $1.6 billion and interest bearing demand deposits of $343.0 million, or 6.2%, to $5.9 billion. The total average cost of deposits increased by 29 basis points to 3.40% in Q2 2024 from 3.11% in the prior year primarily due to higher market interest rates, offsetting a positive shift in deposit mix.

Borrowings

The following table presents the composition of our borrowings as of the dates indicated:


(Dollars in thousands)	June 30, 2024		March 31, 2024		June 30, 2023


FHLB advances	$	1,018,349	$	1,195,088	$	2,046,142
Senior notes	123,970		123,905		123,710
Subordinated debt	182,370		182,300		182,091
Total borrowings	$	1,324,689	$	1,501,293	$	2,351,943

1 Uninsured deposits (estimate) of $5.8 billion to be reported on the Bank’s call report, less deposits of $1.3 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $143.6 million.

Total borrowings decreased $176.6 million, or 11.8%, to $1.3 billion at June 30, 2024 as compared to the prior quarter. This decrease primarily resulted from net repayments of $175.0 million in FHLB advances. As of June 30, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.6 billion, of which $1.0 billion of available capacity was utilized in borrowings and $1.4 billion was utilized to collateralize deposits.

Total borrowings decreased $1.0 billion, or 43.7%, to $1.3 billion at June 30, 2024 as compared to a year ago. This decrease primarily resulted from net repayments of $175.0 million, $340.0 million and $510.0 million in FHLB advances in Q2 2024, Q4 2023 and Q3 2023, respectively.

Capital

The following table presents certain capital amounts and ratios as of the dates indicated:


(Dollars in thousands except per share data)	June 30, 2024			March 31, 2024			June 30, 2023
Customers Bancorp, Inc.
Common Equity	$	1,609,071		$	1,553,823		$	1,318,858
Tangible Common Equity*	$	1,605,442		$	1,550,194		$	1,315,229
Common Equity to Total Assets	7.7		%	7.3		%	6.0		%
Tangible Common Equity to Tangible Assets*	7.7		%	7.3		%	6.0		%

Book Value per common share	$	50.81		$	49.29		$	42.16
Tangible Book Value per common share*	$	50.70		$	49.18		$	42.04
Common equity Tier 1 (“CET 1”) capital ratio (1)	12.8		%	12.6		%	10.3		%
Total risk based capital ratio (1)	15.8		%	15.9		%	13.2		%

(1) Regulatory capital ratios as of June 30, 2024 are estimates.
*Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Customers Bancorp’s common equity increased $55.2 million to $1.6 billion, and tangible common equity* increased $55.2 million to $1.6 billion, at June 30, 2024 compared to the prior quarter, respectively, primarily from earnings of $54.3 million and decreased unrealized losses on investment securities of $0.9 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). Similarly, book value per common share increased to $50.81 from $49.29, and tangible book value per common share* increased to $50.70 from $49.18, at June 30, 2024 and March 31, 2024, respectively.

Customers Bancorp’s common equity increased $290.2 million to $1.6 billion, and tangible common equity* increased $290.2 million to $1.6 billion, at June 30, 2024 compared to a year ago, respectively, primarily from earnings of $241.4 million and decreased unrealized losses on investment securities in AOCI of $36.8 million (net of taxes). Similarly, book value per common share increased to $50.81 from $42.16, and tangible book value per common share* increased to $50.70 from $42.04, at June 30, 2024 and June 30, 2023, respectively.

At the Customers Bancorp level, the CET 1 ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.8%, 15.8%, 7.7%, and 7.7%, respectively, at June 30, 2024.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At June 30, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 14.2% and 15.6%, respectively.

“Even though we remain well capitalized by all regulatory measures, we are committed to maintaining our CET 1 ratio around 11.5% and our TCE / TA ratio* around 7.5% in 2024,” stated Jay Sidhu.

Key Profitability Trends

Net Interest Income

Net interest income totaled $167.7 million in Q2 2024, an increase of $7.3 million from Q1 2024. This increase was due to higher interest income of $2.3 million primarily due to higher yielding loan growth and lower interest expense of $5.0 million due to the positive liability mix shift.

“We experienced an increase in net interest income in the second quarter by executing on the loan pipelines that were generated earlier in the year. These loan pipelines remain robust and we expect they will continue to drive interest income higher throughout 2024. Against industry trends, we reported lower interest expense for the third quarter in a row. Positive drivers remain that we expect to increase interest income and decrease interest expense which will benefit net interest income and net interest margin for the remainder of the year,” stated Customers Bancorp President Sam Sidhu. “These positive drivers are bolstered by the recent team additions. Having personally completed more than 175 in person client meetings since the onboarding of our 10 new deposit-focused banking teams, it is clear we have the bankers, products and balance sheet strength to deliver for these clients. We expect the overwhelming majority of client prospects will become Customers Bank clients in the near future,” stated Sam Sidhu.

Net interest income totaled $167.7 million in Q2 2024, an increase of $2.4 million from Q2 2023. This increase was due to higher interest income of $3.9 million primarily due to interest earning deposits from higher average balances and market interest rates, and lower interest expense from lower average balances of borrowings, offset in part by higher interest expense on deposits of $12.4 million primarily resulting from increased market interest rates.

Non-Interest Income

The following table presents details of non-interest income for the periods indicated:


	Three Months Ended				Increase (Decrease)		Three Months Ended				Increase (Decrease)
(Dollars in thousands)	June 30, 2024		March 31, 2024				June 30, 2024		June 30, 2023
Commercial lease income	$	10,282	$	9,683	$	599	$	10,282	$	8,917	$	1,365
Loan fees	5,233		5,280		(47)		5,233		4,271		962
Bank-owned life insurance	2,007		3,261		(1,254)		2,007		4,997		(2,990)
Mortgage finance transactional fees	1,058		946		112		1,058		1,376		(318)





Net gain (loss) on sale of loans	(238)		10		(248)		(238)		(761)		523
Loss on sale of capital call lines of credit	—		—		—		—		(5,037)		5,037

Net gain (loss) on sale of investment securities	(719)		(30)		(689)		(719)		—		(719)






Unrealized gain on equity method investments	11,041		—		11,041		11,041		—		11,041
Other	2,373		2,081		292		2,373		2,234		139
Total non-interest income	$	31,037	$	21,231	$	9,806	$	31,037	$	15,997	$	15,040

Non-interest income totaled $31.0 million for Q2 2024, an increase of $9.8 million compared to Q1 2024. The increase was primarily due to $11.0 million of unrealized gain on equity method investments purchased at a discount in Q2 2024, partially offset by a decrease in death benefits paid by insurance carriers under bank-owned life insurance policies.

Non-interest income totaled $31.0 million for Q2 2024, an increase of $15.0 million compared to Q2 2023. The increase was primarily due to $11.0 million of unrealized gain on equity method investments purchased at a discount in Q2 2024, a loss of $5.0 million realized from the sale of non-strategic short-term syndicated capital call lines of credit within our specialized lending vertical that the Bank exited completely in Q2 2023, and increases in commercial lease income of $1.4 million and loan fees of $1.0 million resulting from increased servicing-related revenue and unused line of credit fees. These increases were partially offset by a $3.0 million decrease in death benefits paid by insurance carriers under bank-owned life insurance policies.

Non-Interest Expense

The following table presents details of non-interest expense for the periods indicated:


	Three Months Ended				Increase (Decrease)		Three Months Ended				Increase (Decrease)
(Dollars in thousands)	June 30, 2024		March 31, 2024				June 30, 2024		June 30, 2023
Salaries and employee benefits	$	44,947	$	36,025	$	8,922	$	44,947	$	33,120	$	11,827
Technology, communication and bank operations	16,227		21,904		(5,677)		16,227		16,407		(180)
Commercial lease depreciation	7,829		7,970		(141)		7,829		7,328		501
Professional services	6,104		6,353		(249)		6,104		9,192		(3,088)
Loan servicing	3,516		4,031		(515)		3,516		4,777		(1,261)
Occupancy	3,120		2,347		773		3,120		2,519		601
FDIC assessments, non-income taxes and regulatory fees	10,236		13,469		(3,233)		10,236		9,780		456

Advertising and promotion	1,254		682		572		1,254		546		708





Other	10,219		6,388		3,831		10,219		5,628		4,591
Total non-interest expense	$	103,452	$	99,169	$	4,283	$	103,452	$	89,297	$	14,155

Non-interest expenses totaled $103.5 million in Q2 2024, an increase of $4.3 million compared to Q1 2024. The increase was primarily attributable to increases of $8.9 million in salaries and employee benefits primarily due to addition of 10 new banking teams, higher incentives and severance, $3.8 million in other expenses, higher FDIC assessments and software expenditures. These increases were partially offset by $11.3 million of certain one-time items related to periods prior to 2024 that were recorded in Q1 2024 resulting to the net decrease in technology, communications and bank operations and FDIC assessments, non-income taxes and regulatory fees. Excluding the impact of certain one-time items related to periods prior to 2024, severance and the FDIC special assessment, adjusted core non-interest expenses* were $100.7 million in Q2 2024, an increase of $13.4 million, compared to $87.4 million in Q1 2024.

Non-interest expenses totaled $103.5 million in Q2 2024, an increase of $14.2 million compared to Q2 2023. The increase was primarily attributable to increases of $11.8 million in salaries and employee benefits primarily due to higher headcount including the addition of 10 new banking teams, annual merit increases, incentives and severance and $4.6 million in other expenses. These increases were partially offset by a decrease of $3.1 million in professional fees.

Taxes

Income tax expense increased by $3.4 million to $19.0 million in Q2 2024 from $15.7 million in Q1 2024 primarily due to higher pre-tax income.

Income tax expense decreased by $1.7 million to $19.0 million in Q2 2024 from $20.8 million in Q2 2023 primarily due to tax expense on surrendered bank-owned life insurance policies of $4.1 million in Q2 2023, partially offset by higher pre-tax income.

The effective tax rate for Q2 2024 was 24.7%.

Outlook

“Looking forward, our strategy remains unchanged. We are focused on strengthening our deposit franchise, further improving our profitability and maintaining our strong capital ratios. Our deposit pipelines are expected to continue to improve the quality and mix of deposits, reducing higher cost business unit deposits*1 with lower cost deposits where we have a holistic and primary relationship. The addition of the new banking teams is expected to accelerate and enhance these efforts which were already well underway. We see attractive opportunities to deploy cash and securities cash flows into franchise-enhancing loan growth and our pipeline is strong. We remain confident in our ability to deliver 10% - 15% loan growth for the full year. The management of non-interest expenses remains a priority for us. We expect the investments made in recruiting the new banking teams will produce significant benefits by increasing our net interest income and net interest margin primarily through lowering our interest expense costs as well as improving the overall quality of our deposit franchise. Operating efficiency has and will continue to be a differentiator of our business model, and we will continue to only make investments that generate long-term positive operating leverage and enable the organization to operate at a mid-40’s efficiency ratio over the medium-term. We are adjusting our guidance on effective tax rate to 23% - 25% based on our growth in higher-tax jurisdictions. We remain committed to maintaining a CET 1 ratio around 11.5% and TCE / TA ratio* around 7.5% in 2024. We are highly focused on preserving superior credit quality, managing interest rate risk, maintaining robust liquidity, operating with higher capital ratios and generating positive operating leverage,” concluded Sam Sidhu.

*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

1 Total deposits excluding wholesale CDs and BMTX student-related deposits.

Webcast

Date: Friday, July 26, 2024

Time: 9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 2nd Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Communications Director, David Patti at dpatti@customersbank.com.

The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with nearly $21 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:

•No. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets

•No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list

•No. 52 on Investor’s Business Daily 100 Best Stocks for 2023

A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: 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,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on 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 events and 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, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments, the impact of COVID-19 and its variants on the U.S. economy and customer behavior, the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the continued success and acceptance of our blockchain payments system, the demand for our products and services and the availability of sources of funding, the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply, actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships, higher inflation and its impacts, and the effects of any changes in accounting standards or policies. 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, 2023, 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, except as may be required under applicable law.

Q2 2024 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended June 30, 2024 and the preceding four quarters:


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED

(Dollars in thousands, except per share data and stock price data)		Q2			Q1			Q4			Q3			Q2			Six Months Ended June 30,
		2024			2024			2023			2023			2023			2024			2023

GAAP Profitability Metrics:
Net income available to common shareholders		$	54,300		$	45,926		$	58,223		$	82,953		$	44,007		$	100,226		$	94,272
Per share amounts:

	Earnings per share - basic	$	1.72		$	1.46		$	1.86		$	2.65		$	1.41		$	3.18		$	2.99

	Earnings per share - diluted	$	1.66		$	1.40		$	1.79		$	2.58		$	1.39		$	3.06		$	2.95
	Book value per common share (1)	$	50.81		$	49.29		$	47.73		$	45.47		$	42.16		$	50.81		$	42.16
	CUBI stock price (1)	$	47.98		$	53.06		$	57.62		$	34.45		$	30.26		$	47.98		$	30.26
	CUBI stock price as % of book value (1)	94		%	108		%	121		%	76		%	72		%	94		%	72		%
Average shares outstanding - basic		31,649,715			31,473,424			31,385,043			31,290,581			31,254,125			31,561,569			31,535,103
Average shares outstanding - diluted		32,699,149			32,854,534			32,521,787			32,175,084			31,591,142			32,776,842			31,965,997
Shares outstanding (1)		31,667,655			31,521,931			31,440,906			31,311,254			31,282,318			31,667,655			31,282,318
Return on average assets (“ROAA”)		1.11		%	0.94		%	1.16		%	1.57		%	0.88		%	1.02		%	0.96		%
Return on average common equity (“ROCE”)		13.85		%	12.08		%	15.93		%	23.97		%	13.22		%	12.98		%	14.57		%
Net interest margin, tax equivalent		3.29		%	3.10		%	3.31		%	3.70		%	3.15		%	3.20		%	3.06		%
Efficiency ratio		51.87		%	54.58		%	49.08		%	41.01		%	49.25		%	53.16		%	48.51		%
Non-GAAP Profitability Metrics (2):
Core earnings		$	48,567		$	46,532		$	61,633		$	83,294		$	52,163		$	95,099		$	103,306
Core pre-tax pre-provision net income		$	89,220		$	83,674		$	101,884		$	128,564		$	96,833		$	172,894		$	186,115
Per share amounts:
	Core earnings per share - diluted	$	1.49		$	1.42		$	1.90		$	2.59		$	1.65		$	2.90		$	3.22
	Tangible book value per common share (1)	$	50.70		$	49.18		$	47.61		$	45.36		$	42.04		$	50.70		$	42.04
	CUBI stock price as % of tangible book value (1)	95		%	108		%	121		%	76		%	72		%	95		%	72		%
Core ROAA		1.00		%	0.95		%	1.22		%	1.57		%	1.03		%	0.98		%	1.04		%
Core ROCE		12.39		%	12.24		%	16.87		%	24.06		%	15.67		%	12.32		%	15.97		%
Core pre-tax pre-provision ROAA		1.71		%	1.58		%	1.90		%	2.32		%	1.79		%	1.64		%	1.76		%
Core pre-tax pre-provision ROCE		21.79		%	21.01		%	26.82		%	36.04		%	28.01		%	21.41		%	27.68		%

Core efficiency ratio		53.47		%	54.24		%	46.70		%	41.04		%	47.84		%	53.85		%	47.49		%
Asset Quality:
Net charge-offs		$	18,711		$	17,968		$	17,322		$	17,498		$	15,564		$	36,679		$	34,215
Annualized net charge-offs to average total loans and leases		0.56		%	0.55		%	0.51		%	0.50		%	0.42		%	0.56		%	0.46		%
Non-performing loans (“NPLs”) to total loans and leases (1)		0.35		%	0.27		%	0.21		%	0.22		%	0.20		%	0.35		%	0.20		%
Reserves to NPLs (1)		279.52		%	373.86		%	499.12		%	466.11		%	494.46		%	279.52		%	494.46		%
Non-performing assets (“NPAs”) to total assets		0.23		%	0.17		%	0.13		%	0.14		%	0.13		%	0.23		%	0.13		%
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets		14.2		%	14.16		%	13.77		%	12.97		%	11.96		%	14.2		%	11.96		%
Tier 1 capital to risk-weighted assets		14.2		%	14.16		%	13.77		%	12.97		%	11.96		%	14.2		%	11.96		%
Total capital to risk-weighted assets		15.6		%	15.82		%	15.28		%	14.45		%	13.38		%	15.6		%	13.38		%
Tier 1 capital to average assets (leverage ratio)		9.2		%	8.82		%	8.71		%	8.25		%	8.00		%	9.2		%	8.00		%

(1) Metric is a spot balance for the last day of each quarter presented.
(2) Customers’ reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.
(3) Regulatory capital ratios are estimated for Q2 2024 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of June 30, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)											Six Months Ended
	Q2		Q1		Q4		Q3		Q2		June 30,
	2024		2024		2023		2023		2023		2024		2023
Interest income:
Loans and leases	$	224,265	$	217,999	$	239,453	$	271,107	$	241,745	$	442,264	$	485,957
Investment securities	47,586		46,802		51,074		54,243		48,026		94,388		95,342
Interest earning deposits	45,506		52,817		44,104		43,800		27,624		98,323		38,019
Loans held for sale	13,671		12,048		8,707		4,664		11,149		25,719		22,850
Other	3,010		2,111		2,577		2,526		1,616		5,121		2,937
Total interest income	334,038		331,777		345,915		376,340		330,160		665,815		645,105

Interest expense:
Deposits	148,784		153,725		150,307		145,825		136,375		302,509		280,305
FHLB advances	13,437		13,485		18,868		26,485		24,285		26,922		34,655
FRB advances	—		—		—		—		—		—		6,286
Subordinated debt	2,734		2,689		2,688		2,689		2,689		5,423		5,378

Other borrowings	1,430		1,493		1,546		1,568		1,540		2,923		3,311
Total interest expense	166,385		171,392		173,409		176,567		164,889		337,777		329,935
Net interest income	167,653		160,385		172,506		199,773		165,271		328,038		315,170
Provision for credit losses	18,121		17,070		13,523		17,856		23,629		35,191		43,232
Net interest income after provision for credit losses	149,532		143,315		158,983		181,917		141,642		292,847		271,938

Non-interest income:
Commercial lease income	10,282		9,683		9,035		8,901		8,917		19,965		18,243
Loan fees	5,233		5,280		5,926		6,029		4,271		10,513		8,261
Bank-owned life insurance	2,007		3,261		2,160		1,973		4,997		5,268		7,644
Mortgage finance transactional fees	1,058		946		927		1,018		1,376		2,004		2,450





Net gain (loss) on sale of loans	(238)		10		(91)		(348)		(761)		(228)		(761)
Loss on sale of capital call lines of credit	—		—		—		—		(5,037)		—		(5,037)

Net gain (loss) on sale of investment securities	(719)		(30)		(145)		(429)		—		(749)		—






Unrealized gain on equity method investments	11,041		—		—		—		—		11,041		—
Other	2,373		2,081		860		631		2,234		4,454		3,318
Total non-interest income	31,037		21,231		18,672		17,775		15,997		52,268		34,118

Non-interest expense:
Salaries and employee benefits	44,947		36,025		33,965		33,845		33,120		80,972		65,465
Technology, communication and bank operations	16,227		21,904		16,887		15,667		16,407		38,131		32,996
Commercial lease depreciation	7,829		7,970		7,357		7,338		7,328		15,799		15,203
Professional services	6,104		6,353		9,820		8,569		9,192		12,457		16,788
Loan servicing	3,516		4,031		3,779		3,858		4,777		7,547		9,438
Occupancy	3,120		2,347		2,320		2,471		2,519		5,467		5,279
FDIC assessments, non-income taxes and regulatory fees	10,236		13,469		13,977		8,551		9,780		23,705		12,508
Advertising and promotion	1,254		682		850		650		546		1,936		1,595





Legal settlement expense	—		—		—		4,096		—		—		—
Other	10,219		6,388		4,812		4,421		5,628		16,607		10,158
Total non-interest expense	103,452		99,169		93,767		89,466		89,297		202,621		169,430
Income before income tax expense	77,117		65,377		83,888		110,226		68,342		142,494		136,626
Income tax expense	19,032		15,651		21,796		23,470		20,768		34,683		35,331
















Net income	58,085		49,726		62,092		86,756		47,574		107,811		101,295
Preferred stock dividends	3,785		3,800		3,869		3,803		3,567		7,585		7,023

Net income available to common shareholders	$	54,300	$	45,926	$	58,223	$	82,953	$	44,007	$	100,226	$	94,272



Basic earnings per common share	$	1.72	$	1.46	$	1.86	$	2.65	$	1.41	$	3.18	$	2.99


Diluted earnings per common share	1.66		1.40		1.79		2.58		1.39		3.06		2.95


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023
ASSETS
Cash and due from banks	$	45,045	$	51,974	$	45,210	$	68,288	$	54,127
Interest earning deposits	3,003,542		3,649,146		3,801,136		3,351,686		3,101,097
Cash and cash equivalents	3,048,587		3,701,120		3,846,346		3,419,974		3,155,224
Investment securities, at fair value	2,511,650		2,604,868		2,405,640		2,773,207		2,824,638
Investment securities held to maturity	962,799		1,032,037		1,103,170		1,178,370		1,258,560

Loans held for sale	375,724		357,640		340,317		150,368		78,108


Loans and leases receivable	12,254,204		11,936,621		11,963,855		12,600,548		12,826,531
Loans receivable, mortgage finance, at fair value	1,002,711		962,610		897,912		962,566		1,006,268
Allowance for credit losses on loans and leases	(132,436)		(133,296)		(135,311)		(139,213)		(139,656)
Total loans and leases receivable, net of allowance for credit losses on loans and leases	13,124,479		12,765,935		12,726,456		13,423,901		13,693,143
FHLB, Federal Reserve Bank, and other restricted stock	92,276		100,067		109,548		126,098		126,240
Accrued interest receivable	112,788		120,123		114,766		123,984		119,501
Bank premises and equipment, net	7,019		7,253		7,371		7,789		8,031
Bank-owned life insurance	293,108		293,400		292,193		291,670		290,322

Goodwill and other intangibles	3,629		3,629		3,629		3,629		3,629

Other assets	410,916		361,295		366,829		358,162		471,169

Total assets	$	20,942,975	$	21,347,367	$	21,316,265	$	21,857,152	$	22,028,565

LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand, non-interest bearing deposits	$	4,474,862	$	4,688,880	$	4,422,494	$	4,758,682	$	4,490,198
Interest bearing deposits	13,203,231		13,272,503		13,497,742		13,436,682		13,460,233
Total deposits	17,678,093		17,961,383		17,920,236		18,195,364		17,950,431



FHLB advances	1,018,349		1,195,088		1,203,207		1,529,839		2,046,142
Other borrowings	123,970		123,905		123,840		123,775		123,710
Subordinated debt	182,370		182,300		182,230		182,161		182,091


Accrued interest payable and other liabilities	193,328		193,074		248,358		264,406		269,539

Total liabilities	19,196,110		19,655,750		19,677,871		20,295,545		20,571,913

Preferred stock	137,794		137,794		137,794		137,794		137,794
Common stock	35,686		35,540		35,459		35,330		35,301
Additional paid in capital	567,345		567,490		564,538		559,346		555,737
Retained earnings	1,259,808		1,205,508		1,159,582		1,101,359		1,018,406
Accumulated other comprehensive income (loss), net	(131,358)		(132,305)		(136,569)		(149,812)		(168,176)
Treasury stock, at cost	(122,410)		(122,410)		(122,410)		(122,410)		(122,410)
Total shareholders’ equity	1,746,865		1,691,617		1,638,394		1,561,607		1,456,652
Total liabilities and shareholders’ equity	$	20,942,975	$	21,347,367	$	21,316,265	$	21,857,152	$	22,028,565


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
	Three Months Ended
	June 30, 2024					March 31, 2024					June 30, 2023
	Average Balance		Interest Income or Expense		Average Yield or Cost (%)	Average Balance		Interest Income or Expense		Average Yield or Cost (%)	Average Balance		Interest Income or Expense		Average Yield or Cost (%)
Assets
Interest earning deposits	$	3,325,771	$	45,506	5.50%	$	3,865,028	$	52,817	5.50%	$	2,150,154	$	27,624	5.15%
Investment securities (1)	3,732,565		47,586		5.13%	3,771,097		46,802		4.99%	3,949,732		48,026		4.86%
Loans and leases:
Commercial & industrial:

Specialized lending loans and leases (2)	5,446,882		120,977		8.93%	5,268,345		115,590		8.82%	5,832,485		121,779		8.37%
Other commercial & industrial loans (2)(3)	1,540,191		25,119		6.56%	1,654,665		26,714		6.49%	1,879,794		27,661		5.90%
Mortgage finance loans	1,151,407		15,087		5.27%	1,033,177		12,830		4.99%	1,300,496		19,606		6.05%
Multifamily loans	2,108,835		21,461		4.09%	2,121,650		21,255		4.03%	2,181,617		21,095		3.88%

Non-owner occupied commercial real estate loans	1,396,771		20,470		5.89%	1,348,468		20,179		6.02%	1,428,086		19,877		5.58%
Residential mortgages	520,791		5,955		4.60%	522,528		5,708		4.39%	535,739		5,735		4.28%
Installment loans	1,186,486		28,867		9.79%	1,179,721		27,771		9.47%	1,684,215		37,141		8.84%




Total loans and leases (4)	13,351,363		237,936		7.17%	13,128,554		230,047		7.05%	14,842,432		252,894		6.83%
Other interest-earning assets	110,585		3,010		10.95%	107,525		2,111		7.90%	131,362		1,616		4.93%
Total interest-earning assets	20,520,284		334,038		6.54%	20,872,204		331,777		6.39%	21,073,680		330,160		6.28%
Non-interest-earning assets	464,919					463,025					581,055

Total assets	$	20,985,203				$	21,335,229				$	21,654,735
Liabilities
Interest checking accounts	$	5,719,698	$	64,047	4.50%	$	5,538,846	$	61,531	4.47%	$	5,309,775	$	49,862	3.77%
Money market deposit accounts	3,346,718		38,167		4.59%	3,233,103		36,811		4.58%	1,978,546		19,678		3.99%
Other savings accounts	1,810,375		21,183		4.71%	1,753,118		21,399		4.91%	997,205		9,839		3.96%
Certificates of deposit	2,034,605		25,387		5.02%	2,750,788		33,984		4.97%	5,020,205		56,996		4.55%
Total interest-bearing deposits (5)	12,911,396		148,784		4.63%	13,275,855		153,725		4.66%	13,305,731		136,375		4.11%


Borrowings	1,454,010		17,601		4.87%	1,506,707		17,667		4.72%	2,357,981		28,514		4.85%
Total interest-bearing liabilities	14,365,406		166,385		4.66%	14,782,562		171,392		4.66%	15,663,712		164,889		4.22%
Non-interest-bearing deposits (5)	4,701,695					4,620,986					4,258,711
Total deposits and borrowings	19,067,101				3.51%	19,403,548				3.55%	19,922,423				3.32%
Other non-interest-bearing liabilities	203,714					264,677					259,111

Total liabilities	19,270,815					19,668,225					20,181,534
Shareholders’ equity	1,714,388					1,667,004					1,473,201
Total liabilities and shareholders’ equity	$	20,985,203				$	21,335,229				$	21,654,735
Net interest income			167,653					160,385					165,271
Tax-equivalent adjustment			393					394					390
Net interest earnings			$	168,046				$	160,779				$	165,661
Interest spread					3.03%					2.84%					2.96%
Net interest margin					3.28%					3.09%					3.14%
Net interest margin tax equivalent (6)					3.29%					3.10%					3.15%















(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.40%, 3.45% and 3.11% for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, presented to approximate interest income as a taxable asset.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
	Six Months Ended
	June 30, 2024					June 30, 2023
	Average Balance		Interest Income or Expense		Average Yield or Cost (%)	Average Balance		Interest Income or Expense		Average Yield or Cost (%)
Assets
Interest earning deposits	$	3,595,400	$	98,323	5.50%	$	1,535,566	$	38,019	4.99%
Investment securities (1)	3,751,831		94,388		5.06%	3,990,265		95,342		4.78%
Loans and leases:
Commercial & industrial:

Specialized lending loans and leases (2)	5,357,613		236,567		8.88%	5,763,708		225,467		7.89%
Other commercial & industrial loans (2)(3)	1,597,428		51,833		6.53%	2,235,144		76,782		6.93%
Mortgage finance loans	1,092,292		27,917		5.14%	1,281,424		37,018		5.83%
Multifamily loans	2,115,243		42,716		4.06%	2,194,039		41,565		3.82%

Non-owner occupied commercial real estate loans	1,372,619		40,649		5.96%	1,438,844		40,076		5.62%
Residential mortgages	521,659		11,663		4.50%	539,304		11,333		4.24%
Installment loans	1,183,104		56,638		9.63%	1,705,984		76,566		9.05%




Total loans and leases (4)	13,239,958		467,983		7.11%	15,158,447		508,807		6.77%
Other interest-earning assets	109,055		5,121		9.44%	111,446		2,937		5.32%
Total interest-earning assets	20,696,244		665,815		6.46%	20,795,724		645,105		6.25%
Non-interest-earning assets	463,972					559,766

Total assets	$	21,160,216				$	21,355,490
Liabilities
Interest checking accounts	$	5,629,272	$	125,578	4.49%	$	6,396,042	$	120,347	3.79%
Money market deposit accounts	3,289,911		74,978		4.58%	2,222,917		40,461		3.67%
Other savings accounts	1,781,746		42,582		4.81%	910,241		16,125		3.57%
Certificates of deposit	2,392,696		59,371		4.99%	4,763,694		103,372		4.38%
Total interest-bearing deposits (5)	13,093,625		302,509		4.65%	14,292,894		280,305		3.95%
Federal funds purchased	—		—		—%	7,624		188		4.97%

Borrowings	1,480,359		35,268		4.79%	2,074,623		49,442		4.81%
Total interest-bearing liabilities	14,573,984		337,777		4.66%	16,375,141		329,935		4.06%
Non-interest-bearing deposits (5)	4,661,341					3,284,416
Total deposits and borrowings	19,235,325				3.53%	19,659,557				3.38%
Other non-interest-bearing liabilities	234,195					253,376

Total liabilities	19,469,520					19,912,933
Shareholders’ equity	1,690,696					1,442,557
Total liabilities and shareholders’ equity	$	21,160,216				$	21,355,490
Net interest income			328,038					315,170
Tax-equivalent adjustment			787					765
Net interest earnings			$	328,825				$	315,935
Interest spread					2.93%					2.86%
Net interest margin					3.19%					3.05%
Net interest margin tax equivalent (6)					3.20%					3.06%



(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.43% and 3.22% for the six months ended June 30, 2024 and 2023, respectively.









(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the six months ended June 30, 2024 and 2023, presented to approximate interest income as a taxable asset.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023
Loans and leases held for investment
Commercial:

Commercial & industrial:
Specialized lending	$	5,528,745	$	5,104,405	$	5,006,693	$	5,422,161	$	5,534,832
Other commercial & industrial (1)	1,092,146		1,113,517		1,162,317		1,252,427		1,240,908
Mortgage finance	1,122,812		1,071,146		1,014,742		1,042,549		1,108,598
Multifamily	2,067,332		2,123,675		2,138,622		2,130,213		2,151,734
Commercial real estate owner occupied	805,779		806,278		797,319		794,815		842,042
Commercial real estate non-owner occupied	1,202,606		1,182,084		1,177,650		1,178,203		1,211,091
Construction	163,409		185,601		166,393		252,588		212,214

Total commercial loans and leases	11,982,829		11,586,706		11,463,736		12,072,956		12,301,419
Consumer:
Residential	481,503		482,537		484,435		483,133		487,199
Manufactured housing	35,901		37,382		38,670		40,129		41,664

Installment:
Personal	474,481		492,892		555,533		629,843		752,470
Other	282,201		299,714		319,393		337,053		250,047
Total installment loans	756,682		792,606		874,926		966,896		1,002,517

Total consumer loans	1,274,086		1,312,525		1,398,031		1,490,158		1,531,380
Total loans and leases held for investment	$	13,256,915	$	12,899,231	$	12,861,767	$	13,563,114	$	13,832,799

Loans held for sale













Residential	$	2,684	$	870	$	1,215	$	1,005	$	1,234

Installment:
Personal	125,598		137,755		151,040		124,848		76,874
Other	247,442		219,015		188,062		24,515		—
Total installment loans	373,040		356,770		339,102		149,363		76,874


Total loans held for sale	$	375,724	$	357,640	$	340,317	$	150,368	$	78,108

Total loans and leases portfolio	$	13,632,639	$	13,256,871	$	13,202,084	$	13,713,482	$	13,910,907

(1) Includes PPP loans.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2024		2024		2023		2023		2023

Demand, non-interest bearing	$	4,474,862	$	4,688,880	$	4,422,494	$	4,758,682	$	4,490,198
Demand, interest bearing	5,894,056		5,661,775		5,580,527		5,824,410		5,551,037
Total demand deposits	10,368,918		10,350,655		10,003,021		10,583,092		10,041,235
Savings	1,573,661		2,080,374		1,402,941		1,118,353		1,048,229
Money market	3,539,815		3,347,843		3,226,395		2,499,593		2,004,264
Time deposits	2,195,699		2,182,511		3,287,879		3,994,326		4,856,703
Total deposits	$	17,678,093	$	17,961,383	$	17,920,236	$	18,195,364	$	17,950,431


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)	As of June 30, 2024										As of March 31, 2024										As of June 30, 2023
	Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs

Loan type
Commercial & industrial, including specialized lending (1)	$	6,740,992	$	5,488	$	23,721	0.08	%	432.23	%	$	6,326,458	$	3,608	$	23,003	0.06	%	637.56	%	$	6,878,070	$	4,441	$	29,092	0.06	%	655.08	%


Multifamily	2,067,332		14,002		20,652		0.68	%	147.49	%	2,123,675		5,161		18,307		0.24	%	354.72	%	2,151,734		4,022		15,400		0.19	%	382.89	%
Commercial real estate owner occupied	805,779		9,612		8,431		1.19	%	87.71	%	806,278		8,920		10,201		1.11	%	114.36	%	842,042		3,304		10,215		0.39	%	309.17	%
Commercial real estate non-owner occupied	1,202,606		62		17,966		0.01	%	28977.42	%	1,182,084		62		18,320		0.01	%	29548.39	%	1,211,091		—		13,495		—	%	—	%
Construction	163,409		—		1,856		—	%	—	%	185,601		—		1,866		—	%	—	%	212,214		—		2,639		—	%	—	%

Total commercial loans and leases receivable	10,980,118		29,164		72,626		0.27	%	249.03	%	10,624,096		17,751		71,697		0.17	%	403.90	%	11,295,151		11,767		70,841		0.10	%	602.03	%
Residential	481,503		8,179		5,884		1.70	%	71.94	%	482,537		8,089		6,707		1.68	%	82.92	%	487,199		7,306		6,846		1.50	%	93.70	%
Manufactured housing	35,901		2,047		4,094		5.70	%	200.00	%	37,382		2,268		4,160		6.07	%	183.42	%	41,664		2,634		4,338		6.32	%	164.69	%
Installment	756,682		5,614		49,832		0.74	%	887.64	%	792,606		6,958		50,732		0.88	%	729.12	%	1,002,517		6,537		57,631		0.65	%	881.61	%



Total consumer loans receivable	1,274,086		15,840		59,810		1.24	%	377.59	%	1,312,525		17,315		61,599		1.32	%	355.76	%	1,531,380		16,477		68,815		1.08	%	417.64	%
Loans and leases receivable	12,254,204		45,004		132,436		0.37	%	294.28	%	11,936,621		35,066		133,296		0.29	%	380.13	%	12,826,531		28,244		139,656		0.22	%	494.46	%

Loans receivable, mortgage finance, at fair value	1,002,711		—		—		—	%	—	%	962,610		—		—		—	%	—	%	1,006,268		—		—		—	%	—	%

Loans held for sale	375,724		2,376		—		0.63	%	—	%	357,640		588		—		0.16	%	—	%	78,108		—		—		—	%	—	%
Total portfolio	$	13,632,639	$	47,380	$	132,436	0.35	%	279.52	%	$	13,256,871	$	35,654	$	133,296	0.27	%	373.86	%	$	13,910,907	$	28,244	$	139,656	0.20	%	494.46	%

(1) Includes PPP loans.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
	Q2		Q1		Q4		Q3		Q2		Six Months Ended June 30,
	2024		2024		2023		2023		2023 (1)		2024		2023
Loan type
Commercial & industrial, including specialized lending	$	5,665	$	3,672	$	5,282	$	2,974	$	258	$	9,337	$	187



Multifamily	1,433		473		127		1,999		1,448		1,906		1,448
Commercial real estate owner occupied	—		22		—		39		(34)		22		(34)
Commercial real estate non-owner occupied	—		—		(288)		—		266		—		4,500
Construction	(7)		—		—		—		—		(7)		(116)
Residential	(20)		18		(1)		13		24		(2)		22
Installment	11,640		13,783		12,202		12,473		13,602		25,423		28,208




Total net charge-offs (recoveries) from loans held for investment	$	18,711	$	17,968	$	17,322	$	17,498	$	15,564	$	36,679	$	34,215

(1) Excludes $6.2 million of charge-offs for certain PCD loans acquired from the FDIC that were immediately applied against $8.7 million of allowance for credit losses on PCD loans recognized upon the acquisition of the loan portfolio on June 15, 2023. Subsequent recoveries and charge-offs of these PCD loans will be included in the period in which they occur.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. 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.


Core Earnings and Adjusted Core Earnings - Customers Bancorp																					Six Months Ended June 30,
	Q2 2024				Q1 2024				Q4 2023				Q3 2023				Q2 2023				2024				2023
(Dollars in thousands, except per share data)	USD		Per share		USD		Per share		USD		Per share		USD		Per share		USD		Per share		USD		Per share		USD		Per share
GAAP net income to common shareholders	$	54,300	$	1.66	$	45,926	$	1.40	$	58,223	$	1.79	$	82,953	$	2.58	$	44,007	$	1.39	$	100,226	$	3.06	$	94,272	$	2.95
Reconciling items (after tax):

Severance expense	1,928		0.06		—		—		473		0.01		—		—		141		0.00		1,928		0.06		778		0.02
Impairments on fixed assets and leases	—		—		—		—		—		—		—		—		12		0.00		—		—		98		0.00



Loss on sale of capital call lines of credit	—		—		—		—		—		—		—		—		3,914		0.12		—		—		3,914		0.12


(Gains) losses on investment securities	561		0.02		57		0.00		(85)		0.00		492		0.02		49		0.00		618		0.02		0		0.00


Derivative credit valuation adjustment	(44)		0.00		169		0.01		267		0.01		(151)		0.00		(101)		0.00		125		0.00		103		0.00
Tax on surrender of bank-owned life insurance policies	—		—		—		—		—		—		—		—		4,141		0.13		—		—		4,141		0.13
FDIC special assessment	138		0.00		380		0.01		2,755		0.08		—		—		—		—		518		0.02		—		—
Unrealized (gain) on equity method investments	(8,316)		(0.25)		—		—		—		—		—		—		—		—		(8,316)		(0.25)		—		—





Core earnings	$	48,567	$	1.49	$	46,532	$	1.42	$	61,633	$	1.90	$	83,294	$	2.59	$	52,163	$	1.65	$	95,099	$	2.90	$	103,306	$	3.22

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024	—		—		5,405		0.16		—		—		—		—		—		—		5,405		0.16		—		—
FDIC premiums prior to 2024	—		—		3,200		0.10		—		—		—		—		—		—		3,200		0.10		—		—
Total one-time non-interest expense items	—		—		8,605		0.26		—		—		—		—		—		—		8,605		0.26		—		—
Adjusted core earnings (adjusted for one-time non-interest expense items)	$	48,567	$	1.49	$	55,137	$	1.68	$	61,633	$	1.90	$	83,294	$	2.59	$	52,163	$	1.65	$	103,704	$	3.16	$	103,306	$	3.22

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp																Six Months Ended June 30,
(Dollars in thousands, except per share data)	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			2024			2023
GAAP net income	$	58,085		$	49,726		$	62,092		$	86,756		$	47,574		$	107,811		$	101,295
Reconciling items (after tax):

Severance expense	1,928			—			473			—			141			1,928			778
Impairments on fixed assets and leases	—			—			—			—			12			—			98



Loss on sale of capital call lines of credit	—			—			—			—			3,914			—			3,914


(Gains) losses on investment securities	561			57			(85)			492			49			618			0


Derivative credit valuation adjustment	(44)			169			267			(151)			(101)			125			103
Tax on surrender of bank-owned life insurance policies	—			—			—			—			4,141			—			4,141
FDIC special assessment	138			380			2,755			—			—			518			—
Unrealized (gain) on equity method investments	(8,316)			—			—			—			—			(8,316)			—





Core net income	$	52,352		$	50,332		$	65,502		$	87,097		$	55,730		$	102,684		$	110,329

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024	—			5,405			—			—			—			5,405			—
FDIC premiums prior to 2024	—			3,200			—			—			—			3,200			—
Total one-time non-interest expense items	—			8,605			—			—			—			8,605			—
Adjusted core net income (adjusted for one-time non-interest expense items)	$	52,352		$	58,937		$	65,502		$	87,097		$	55,730		$	111,289		$	110,329

Average total assets	$	20,985,203		$	21,335,229		$	21,252,273		$	21,978,010		$	21,654,735		$	21,160,216		$	21,355,490

Core return on average assets	1.00		%	0.95		%	1.22		%	1.57		%	1.03		%	0.98		%	1.04		%
Adjusted core return on average assets (adjusted for one-time non-interest expense items)	1.00		%	1.11		%	1.22		%	1.57		%	1.03		%	1.06		%	1.04		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp																Six Months Ended June 30,
(Dollars in thousands, except per share data)	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			2024			2023
GAAP net income	$	58,085		$	49,726		$	62,092		$	86,756		$	47,574		$	107,811		$	101,295
Reconciling items:
Income tax expense	19,032			15,651			21,796			23,470			20,768			34,683			35,331
Provision (benefit) for credit losses	18,121			17,070			13,523			17,856			23,629			35,191			43,232
Provision (benefit) for credit losses on unfunded commitments	1,594			430			(136)			48			(304)			2,024			(24)
Severance expense	2,560			—			639			—			182			2,560			991

Impairments on fixed assets and leases	—			—			—			—			15			—			124



Loss on sale of capital call lines of credit	—			—			—			—			5,037			—			5,037


(Gains) losses on investment securities	744			75			(114)			626			62			819			0


Derivative credit valuation adjustment	(58)			222			361			(192)			(130)			164			129
FDIC special assessment	183			500			3,723			—			—			683			—
Unrealized (gain) on equity method investments	(11,041)			—			—			—			—			(11,041)			—





Core pre-tax pre-provision net income	$	89,220		$	83,674		$	101,884		$	128,564		$	96,833		$	172,894		$	186,115

One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024	—			7,106			—			—			—			7,106			—
FDIC premiums prior to 2024	—			4,208			—			—			—			4,208			—
Total one-time non-interest expense items	—			11,314			—			—			—			11,314			—
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)	$	89,220		$	94,988		$	101,884		$	128,564		$	96,833		$	184,208		$	186,115

Average total assets	$	20,985,203		$	21,335,229		$	21,252,273		$	21,978,010		$	21,654,735		$	21,160,216		$	21,355,490

Core pre-tax pre-provision ROAA	1.71		%	1.58		%	1.90		%	2.32		%	1.79		%	1.64		%	1.76		%

Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)	1.71		%	1.79		%	1.90		%	2.32		%	1.79		%	1.75		%	1.76		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp																Six Months Ended June 30,
(Dollars in thousands, except per share data)	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			2024			2023
GAAP net income to common shareholders	$	54,300		$	45,926		$	58,223		$	82,953		$	44,007		$	100,226		$	94,272
Reconciling items (after tax):

Severance expense	1,928			—			473			—			141			1,928			778
Impairments on fixed assets and leases	—			—			—			—			12			—			98



Loss on sale of capital call lines of credit	—			—			—			—			3,914			—			3,914


(Gains) losses on investment securities	561			57			(85)			492			49			618			0


Derivative credit valuation adjustment	(44)			169			267			(151)			(101)			125			103
Tax on surrender of bank-owned life insurance policies	—			—			—			—			4,141			—			4,141
FDIC special assessment	138			380			2,755			—			—			518			—
Unrealized (gain) on equity method investments	(8,316)			—			—			—			—			(8,316)			—





Core earnings	$	48,567		$	46,532		$	61,633		$	83,294		$	52,163		$	95,099		$	103,306

One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024	—			5,405			—			—			—			5,405			—
FDIC premiums prior to 2024	—			3,200			—			—			—			3,200			—
Total one-time non-interest expense items	—			8,605			—			—			—			8,605			—
Adjusted core earnings (adjusted for one-time non-interest expense items)	$	48,567		$	55,137		$	61,633		$	83,294		$	52,163		$	103,704		$	103,306

Average total common shareholders’ equity	$	1,576,595		$	1,529,211		$	1,449,728		$	1,373,244		$	1,335,408		$	1,552,903		$	1,304,764

Core return on average common equity	12.39		%	12.24		%	16.87		%	24.06		%	15.67		%	12.32		%	15.97		%

Adjusted core return on average common equity (adjusted for one-time non-interest expense items)	12.39		%	14.50		%	16.87		%	24.06		%	15.67		%	13.43		%	15.97		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp																Six Months Ended June 30,
(Dollars in thousands, except per share data)	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			2024			2023
GAAP net income to common shareholders	$	54,300		$	45,926		$	58,223		$	82,953		$	44,007		$	100,226		$	94,272
Reconciling items:
Income tax expense	19,032			15,651			21,796			23,470			20,768			34,683			35,331
Provision (benefit) for credit losses	18,121			17,070			13,523			17,856			23,629			35,191			43,232
Provision (benefit) for credit losses on unfunded commitments	1,594			430			(136)			48			(304)			2,024			(24)

Severance expense	2,560			—			639			—			182			2,560			991
Impairments on fixed assets and leases	—			—			—			—			15			—			124



Loss on sale of capital call lines of credit	—			—			—			—			5,037			—			5,037


(Gains) losses on investment securities	744			75			(114)			626			62			819			0


Derivative credit valuation adjustment	(58)			222			361			(192)			(130)			164			129
FDIC special assessment	183			500			3,723			—			—			683			—
Unrealized (gain) on equity method investments	(11,041)			—			—			—			—			(11,041)			—





Core pre-tax pre-provision net income available to common shareholders	$	85,435		$	79,874		$	98,015		$	124,761		$	93,266		$	165,309		$	179,092

One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024	—			7,106			—			—			—			7,106			—
FDIC premiums prior to 2024	—			4,208			—			—			—			4,208			—
Total one-time non-interest expense items	—			11,314			—			—			—			11,314			—
Adjusted core pre-tax pre-provision net income available to common shareholders	$	85,435		$	91,188		$	98,015		$	124,761		$	93,266		$	176,623		$	179,092

Average total common shareholders’ equity	$	1,576,595		$	1,529,211		$	1,449,728		$	1,373,244		$	1,335,408		$	1,552,903		$	1,304,764

Core pre-tax pre-provision ROCE	21.79		%	21.01		%	26.82		%	36.04		%	28.01		%	21.41		%	27.68		%

Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)	21.79		%	23.98		%	26.82		%	36.04		%	28.01		%	22.87		%	27.68		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp																Six Months Ended June 30,
(Dollars in thousands, except per share data)	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			2024			2023
GAAP net interest income	$	167,653		$	160,385		$	172,506		$	199,773		$	165,271		$	328,038		$	315,170

GAAP non-interest income	$	31,037		$	21,231		$	18,672		$	17,775		$	15,997		$	52,268		$	34,118


Loss on sale of capital call lines of credit	—			—			—			—			5,037			—			5,037
(Gains) losses on investment securities	744			75			(114)			626			62			819			0
Derivative credit valuation adjustment	(58)			222			361			(192)			(130)			164			129
Unrealized (gain) on equity method investments	(11,041)			—			—			—			—			(11,041)			—





Core non-interest income	20,682			21,528			18,919			18,209			20,966			42,210			39,284
Core revenue	$	188,335		$	181,913		$	191,425		$	217,982		$	186,237		$	370,248		$	354,454


GAAP non-interest expense	$	103,452		$	99,169		$	93,767		$	89,466		$	89,297		$	202,621		$	169,430
Severance expense	(2,560)			—			(639)			—			(182)			(2,560)			(991)
Impairments on fixed assets and leases	—			—			—			—			(15)			—			(124)
FDIC special assessment	(183)			(500)			(3,723)			—			—			(683)			—





Core non-interest expense	$	100,709		$	98,669		$	89,405		$	89,466		$	89,100		$	199,378		$	168,315

One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024	—			(7,106)			—			—			—			(7,106)			—
FDIC premiums prior to 2024	—			(4,208)			—			—			—			(4,208)			—
Total one-time non-interest expense items	—			(11,314)			—			—			—			(11,314)			—
Adjusted core non-interest expense	$	100,709		$	87,355		$	89,405		$	89,466		$	89,100		$	188,064		$	168,315

Core efficiency ratio (1)	53.47		%	54.24		%	46.70		%	41.04		%	47.84		%	53.85		%	47.49		%

Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)	53.47		%	48.02		%	46.70		%	41.04		%	47.84		%	50.79		%	47.49		%

(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.

(2) Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- Customers Bancorp																Six Months Ended June 30,
(Dollars in thousands, except per share data)	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023			2024			2023
GAAP non-interest expense	$	103,452		$	99,169		$	93,767		$	89,466		$	89,297		$	202,621		$	169,430
Severance expense	(2,560)			—			(639)			—			(182)			(2,560)			(991)
Impairments on fixed assets and leases	—			—			—			—			(15)			—			(124)
FDIC special assessment	(183)			(500)			(3,723)			—			—			(683)			—





Core non-interest expense	$	100,709		$	98,669		$	89,405		$	89,466		$	89,100		$	199,378		$	168,315


One-time non-interest expense items recorded in 2024:
Deposit servicing fees prior to 2024	—			(7,106)			—			—			—			(7,106)			—
FDIC premiums prior to 2024	—			(4,208)			—			—			—			(4,208)			—
Total one-time non-interest expense items	—			(11,314)			—			—			—			(11,314)			—
Adjusted core non-interest expense	$	100,709		$	87,355		$	89,405		$	89,466		$	89,100		$	188,064		$	168,315


Average total assets	$	20,985,203		$	21,335,229		$	21,252,273		$	21,978,010		$	21,654,735		$	21,160,216		$	21,355,490


Core non-interest expense to average total assets	1.93		%	1.86		%	1.67		%	1.62		%	1.65		%	1.89		%	1.59		%

Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items)	1.93		%	1.65		%	1.67		%	1.62		%	1.65		%	1.79		%	1.59		%



Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - Customers Bancorp

(Dollars in thousands, except per share data)	Q2 2024		Q1 2024		Q4 2023		Q3 2023		Q2 2023
Total deposits	$	17,678,093	$	17,961,383	$	17,920,236	$	18,195,364	$	17,950,431
Reconciling items:
Wholesale CDs	1,545,885		1,809,573		2,970,615		3,713,933		4,651,054
BMTX student deposits	—		850		1,157		636,951		407,118
Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits)	$	16,132,208	$	16,150,960	$	14,948,464	$	13,844,480	$	12,892,259


Tangible Common Equity to Tangible Assets - Customers Bancorp

(Dollars in thousands, except per share data)	Q2 2024			Q1 2024			Q4 2023			Q3 2023			Q2 2023
GAAP total shareholders’ equity	$	1,746,865		$	1,691,617		$	1,638,394		$	1,561,607		$	1,456,652
Reconciling items:
Preferred stock	(137,794)			(137,794)			(137,794)			(137,794)			(137,794)
Goodwill and other intangibles	(3,629)			(3,629)			(3,629)			(3,629)			(3,629)
Tangible common equity	$	1,605,442		$	1,550,194		$	1,496,971		$	1,420,184		$	1,315,229

GAAP total assets	$	20,942,975		$	21,347,367		$	21,316,265		$	21,857,152		$	22,028,565
Reconciling items:
Goodwill and other intangibles	(3,629)			(3,629)			(3,629)			(3,629)			(3,629)
Tangible assets	$	20,939,346		$	21,343,738		$	21,312,636		$	21,853,523		$	22,024,936

Tangible common equity to tangible assets	7.7		%	7.3		%	7.0		%	6.5		%	6.0		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Tangible Book Value per Common Share - Customers Bancorp

(Dollars in thousands, except share and per share data)	Q2 2024		Q1 2024		Q4 2023		Q3 2023		Q2 2023
GAAP total shareholders’ equity	$	1,746,865	$	1,691,617	$	1,638,394	$	1,561,607	$	1,456,652
Reconciling Items:

Preferred stock	(137,794)		(137,794)		(137,794)		(137,794)		(137,794)
Goodwill and other intangibles	(3,629)		(3,629)		(3,629)		(3,629)		(3,629)
Tangible common equity	$	1,605,442	$	1,550,194	$	1,496,971	$	1,420,184	$	1,315,229

Common shares outstanding	31,667,655		31,521,931		31,440,906		31,311,254		31,282,318

Tangible book value per common share	$	50.70	$	49.18	$	47.61	$	45.36	$	42.04

Let’s take on tomorrow. Investor Presentation: Q2 2024 July 2024

2 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. In addition to historical information, this presentation 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,” “project”, or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on 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 events and 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, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments, the impact of COVID-19 and its variants on the U.S. economy and customer behavior, the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the continued success and acceptance of our blockchain payments system, the demand for our products and services and the availability of sources of funding, the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply, actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships, higher inflation and its impacts, and the effects of any changes in accounting standards or policies. 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, 2023, 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, except as may be required under applicable law. This does not constitute an offer to sell, or a solicitation of an offer to buy, any security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Forward-Looking Statements

3 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Let’s take on tomorrow. Key Highlights Q2’24 Earnings Review GAAP EPS of $1.66 and Core EPS1 of $1.49 exceeds consensus estimates Loan Growth Bucking the industry trend with 11% annualized loan growth (3% QoQ) Growth driven by corporate and specialized verticals Margin Expansion & Industry Leading Efficiency Net interest margin increased 19 bps QoQ with continued drivers for expansion by year end Three consecutive quarters of reduced interest expense Core non-interest expense as percent of average assets is top quartile among peers Deposit Remix $0.6 billion of lower-cost deposit growth from commercial clients used to pay down $0.5 billion of higher-cost consumer deposits; wholesale CDs reduced by $0.3 billion Strong momentum continuing on Phase II of deposit transformation strategy Tangible Book Value Growth Tangible book value per share1 crossed $50 15% CAGR over last five years Achieved TCE/TA1 of 7.7% exceeding our 2024 target of 7.5% Share repurchase authorization provides additional tool Immediately available liquidity of approximately 193% of uninsured deposits3 Strong Capital and Liquidity NPA ratio remains at low level of 0.23% Minimal exposure to higher-risk office CRE asset class which represents only ~1% of HFI loan portfolio Optimistic on ability to deliver strong financial results with higher margins New banking teams will help further transform the deposit franchise Maintaining Superior Credit Quality Management Outlook 1. Non-GAAP measure, refer to appendix for reconciliation 2. Capital ratios are estimated pending final regulatory report 3. Uninsured deposits of $5.8 billion (estimate) to be reported on Customers Bank’s call report less $1.3 billion of collateralized deposits and $0.1 billion of affiliate deposits

4 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Let’s take on tomorrow. Our Priorities Remain Unchanged Selectively pursue disciplined growth by focusing on holistic and strategic relationships that create franchise value Focus on further strengthening our balance sheet, improving liquidity, capital ratios and margins Not deviate from strong risk management principles: − Superior credit quality − Sound interest rate risk management − Maintain robust liquidity − Strong capital ratios − Positive operating leverage

5 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. What Makes Customers Bank Unique? High-Touch and Branch-Lite Model Single Point of Contact Consistent Recruiter of Top Talent Sufficient Scale, Yet Nimble Client Centric Focus Sophisticated Product OfferingsTarget Top 3-5 National Competitor in Focused Set of Verticals Entrepreneurial Culture Banking Entrepreneurs CULTURE FOCUS STRATEGY Ranked #1 among banks with $10 billion to $50 billion in assets

6 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Q2’24 (vs. Q1’24) Profitability Balance Sheet Credit 3.29% vs. 3.10% NIM $20.9B -2% Total Assets 0.23% +6 bps NPA Ratio $13.6B +3% Total Loans and Leases $47.4M +33% NPLs Financial Highlights - GAAP Highlights Q2’24 1.0 Q2’24 EARNINGS REVIEW $1.66 Diluted EPS $54.3 M Net Income ROCE ROAA 1.11% vs. 0.94% Total Deposits $17.7B -2% Reserves to NPLs 280% vs. 374%13.9%

7 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Financial Highlights – Core 1. Excludes pre-tax unrealized gain on equity method investments purchased at a discount in Q2’2024 of $11.0 million, severance expense of $2.6 million, loss on investment securities of $0.7 million, FDIC special assessment expense of $0.2 million and derivative credit valuation adjustment of $0.1 million 2. Non-GAAP measure, refer to appendix for reconciliation Highlights 1.0 Q2’24 EARNINGS REVIEW Core ROCE1,2 Core EPS1,2 Core Net Income1,2 Q2’24 (vs. Q1’24) Profitability Balance Sheet Credit 3.29% vs. 3.10% NIM $20.9B -2% Total Assets 0.23% +6 bps NPA Ratio $13.6B +3% Total Loans and Leases $47.4M +33% NPLsCore ROAA1,2 1.00% vs. 0.95% Total Deposits $17.7B -2% Reserves to NPLs 280% vs. 374% Core PTPP ROAA1,2 1.71% vs. 1.58% Q2’24 $1.49 $48.6 M 12.4%

8 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Total Deposits $ billions Successfully Executing on Deposit Franchise Transformation • Gross deposit inflows of $0.6 billion from commercial clients used to paydown $0.5 billion of higher-cost (~5.0%) consumer deposits • Excess cash used to paydown $0.3 billion of higher-cost (~5.0%) wholesale CDs Average cost of deposits 1. Uninsured deposits of $5.8 billion (estimate) to be reported on Customers Bank’s call report less $1.3 billion of collateralized deposits and $0.1 billion of affiliate deposits 3.40% 2.0 DEPOST REMIX 3.45% $4.5 $5.6 $7.9 Q2’23 $4.8 $5.8 $7.6 Q3’23 $4.4 $5.6 $7.9 Q4’23 $4.7 (26%) $5.7 $7.6 Q1’24 $4.5 (25%) $5.9 $7.3 Q2’24 $18.0 $18.2 $17.9 $18.0 $17.7 Non-Interest Bearing DDA Interest Bearing DDA Non-DDA $4.3 $12.0 Deposit Composition $17.7 76%1 $1.5 Adjusted uninsured deposits1 Collateralized and affiliate deposits FDIC insured deposits Insured Deposits1 $ billions

9 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Deposit Remix Strategy Resulting in Declining Cost of Deposits With Substantial Momentum on New Banking Teams 2.0 DEPOSIT REMIX Total Deposits $ billions $4.7 $13.3 Q1’24 $4.5 $13.2 Q2’24 $18.0 $17.7 Non-Interest Bearing DDA Interest Bearing 4.66% 3.45% 4.63% 3.40% 30 Apr 31 May 30 Jun 183 537 1,140 23 Jul 1,412 Cost of Deposits ~3.0% Balances ($ million) $258 % of Non-Interest Bearing ~30% % of Funded Accounts > $50k ~20% Number of Accounts Funded Accounts >$50K Accounts < $50K Select Statistics as of July 23, 2024 New Banking Teams Update • Strategically reduced $0.5 billion of higher- cost consumer deposits at ~5.0% • Focus on reducing levels of brokered deposits and concentrated balances • Pipeline is lower-cost and/or more granular than run-off balances • ~$900 million of lower-cost deposits from banking teams hired since Q1’231 • $2.0 billion deposit pipeline from banking teams hired since Q1’232 • On track for newest banking teams to achieve breakeven by the end of Q1’25 • Conducted hundreds of client meetings including 175 in-person meetings with Customers Bank CEO − Client interactions extremely positive with nearly all expressing an interest in moving to Customers Bank − Transactional accounts are embedded in client operations and take time to transition evidencing future expected stickiness 1. From Q1’23 to July 23, 2024. Includes venture banking team hired in Q2’23 and new banking teams hired in Q2’24 2. Includes venture banking team hired in Q2’23 and new banking teams hired in Q2’24

10 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Corporate and Specialized Verticals Driving Loan Growth Loans - HFI $ billions $1.0 $5.9 $7.0 Q2’23 $1.0 $5.8 $6.8 Q3’23 $0.9 $5.7 $6.3 Q4’23 $0.8 $5.6 $6.5 Q1’24 $0.8 $5.5 $7.0 Q2’24 $13.8 $13.6 $12.9 $12.9 $13.3 6.83% 7.87% 7.30% 7.05% 7.17% Yield on Loans • Continued opportunity to deploy liquidity at ~300 basis points additional spread led by our Corporate & Specialized verticals with holistic relationships 3.0 LOAN GROWTH • Total HFI loan growth of $358 million in Q2’24 • QoQ annualized growth of 11% • Top growth verticals included fund finance, healthcare and equipment finance Loans – HFI Growth QoQ $ billions Corporate & Specialized Banking Community Banking Consumer Installment $470 -$77 -$36 Corporate & Specialized Banking Community Banking Consumer Installment HFI

11 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Net Interest Margin Expected to Continue to Improve Throughout 2024 Net Interest Income $ millions • 19 basis point margin expansion in Q2’24 driven by both asset and liability mix improvements • Only bank among our regional bank peers1 that decreased interest expense consecutively over the last three quarters • Loan growth in Q2’24 provides strong foundation for remainder of 2024 • Strategic hedging in Q2’24 reduces asset sensitivity 4.0 MARGIN EXPANSION AND INDUSTRY LEADING EFFICIENCY Net Interest Margin (%) 3.29% +$223 3.15% $3.8 $13.1 Q1’24 $3.7 $13.4 Q2’24 $16.9 $17.1 Gross Loans Investment Securities Average Balances $ billions -$39 QoQ $ millions 3.10% Q2’23 Q1’24 Q2’24 $330.2 $331.8 $334.1 +$2.3 Q2’23 Q1’24 Q2’24 $164.9 $171.4 $166.4 -$5.0 Q2’23 Q1’24 Q2’24 $165.3 $160.4 $167.7 +$7.3 Interest Income $ millions Interest Expense $ millions 1. Selected 2024 proxy peers as disclosed in appendix

12 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers Operates with Industry-Leading Efficiency $89 $89 $89 $99 $101 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Core Non-Interest Expense1 $ millions • Revenues from new banking teams expected to exceed expenses within one year • Expenses associated with new banking teams for this quarter offset by unrealized gain on equity method investment purchased at a discount in Q2’24 Core Non-Interest Expense1 / Average Assets percent • CUBI’s core non-interest expense1 as percent of average assets is top quartile among regional bank peers2 C UB I 1.93% CUBI (Q2’24) Regional Bank Peers2 (MRQ) 1. Non-GAAP measure, refer to appendix for reconciliation 2. Selected 2024 proxy peers as disclosed in appendix Top Quartile (1.99%) Median (2.16%) 4.0 MARGIN EXPANSION AND INDUSTRY LEADING EFFICIENCY

13 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Tangible Book Value1 per share Tangible Book Value Per Share Exceeds $50 1. Non-GAAP measure, refer to appendix for reconciliation 2. CAGR from Q4’18 to Q2’24 inclusive of impact of AOCI mark-to-market 3. Selected 2024 proxy peers as disclosed in appendix AOCI $23.32 $26.17 $27.92 $37.21 $38.97 $47.61 $50.70 Q4’18 Q4’19 Q4’20 Q4’21 Q4’22 Q4’23 Q2’24 5.0 TANGIBLE BOOK VALUE GROWTH $4.15 $54.85 15%2 • Tangible book value1 has more than doubled over the last five years • 5-year+ CAGR in TBV1 of 15%2 despite AOCI headwinds compared to 5% for regional bank peers3 • AOCI recovery of ~$1.50 per share expected in next 12 months $50+

14 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. ` 13.2% 14.3% 15.3% 15.9% 15.8% +260 bps Total Risk-Based Capital percent 6.0% 7. 7% 6.5% 7.0% 7.3% 8.3% +170 bps TCE/TA2,3 percent 1. Capital ratios are estimated pending final regulatory report 2. TCE/TA negatively impacted by 63 bps in Q2’24 due to AOCI 3. Non-GAAP measure, refer to appendix for reconciliation Robust Capital Levels Provides Customers With Significant Flexibility AOCI 10.3% 11.3% 12.2% 12.6% 12.8% +250 bps CET1 Risk-Based Capital percent 6.0 STRONG CAPITAL AND LIQUIDITY • Achieved ~7.5% TCE/TA3 target • TCE/TA3 increased approximately 40 bps QoQ and 170 bps YoY • Strong opportunity to deploy risk-based capital into loans • Share repurchase authorization of ~0.5 million shares provides flexibility Q2’23 Q3’23 Q4’23 Q1’24 Q2’241 7.5%+

15 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Liquidity Position with Approximately 193% Coverage of Uninsured Deposits Immediately Available Liquidity $ billions $3.7 $1.1 $4.1 Q1’24 $3.0 $1.0 $4.3 Q2’24 $8.9 $8.3 Cash FHLB Available Committed Capacity FRB Available Committed Capacity 1. Uninsured deposits of $5.8 billion (estimate) to be reported on Customers Bank’s call report less $1.3 billion of collateralized deposits and $0.1 billion of affiliate deposits 2. Selected 2024 proxy peers as disclosed in appendix 6.0 STRONG CAPITAL AND LIQUIDITY • Immediately available liquidity to uninsured deposits1 of 193% • Total overall liquidity of ~$10.0 billion as of Q2’24 Loans-HFI to Deposits Q2’24, percent CUBI Regional Bank Peers2 75% 89% Borrowings % of Total Liabilities Q2’24, percent CUBI Regional Bank Peers2 7% 7%

16 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial NCOs percent 0.13% 0.14% 0.13% 0.17% 0.23% NPAs % of Total Assets percent Credit Metrics Remains Healthy 0.16% 0.17% 0.14% 0.25%0.06%2 2.46% 2.96% 2.81% 3.26% 2.74% 0.50% 0.51% 0.55% 0.56%0.42%2 Consumer NCOs percent Total NCOs percent 7.0 MAINTAINING SUPERIOR CREDIT QUALITY v Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 NPAs % of Total Assets Q2’24, percent CUBI Regional Bank Peers1 0.23% 0.43% 1. Selected 2024 proxy peers as disclosed in appendix 2. Excludes $6.2 million of charge-offs against $8.7 million ACL on PCD loans upon FDIC loan pool acquisition 3. As of Q2’24; Excludes owner occupied CRE; 33% total CRE including owner occupied CRE 4. As of Q1’24; Selected 2024 proxy peers as disclosed in appendix 16% 9% 30%1% 8% CUBI3 Regional Bank Peers4 26% 44% Construction Commercial Real Estate Multifamily CRE % of Loans-HFI percent v • Office CRE represents only ~1% of HFI loan portfolio • Less than $55 million of multifamily loans to properties of 50%+ rent regulated in NYC mature or rate reset before 2026 • Consumer installment HFI down to ~6% of HFI loan portfolio 6%

17 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Let’s take on tomorrow. Concluding Perspectives EPS Beat GAAP EPS of $1.66 and Core EPS1 of $1.49 exceeds consensus estimates Loan Growth 11% annualized loan growth contrasting with industry trends Loans originated at ~300 bps spread to cash/securities Margin Expansion Net interest margin increased 19 bps QoQ and on track to expand further by year end Three consecutive quarters of reduced interest expense Improving Deposit Franchise Decrease in cost of deposits of 5 bps QoQ to 3.40% New banking teams will help further transform the deposit franchise improving the cost and quality of deposits Tangible Book Value Growth Tangible book value per share1 crossed $50 15% CAGR over last five years – 2x the performance of top quartile banks2 and sustainable going forward TCE/TA1 of 7.7% exceeding ~7.5% target; CET13 of 12.8% exceeding ~11.5% target Opportunity to deploy incremental organic capital generation into franchise enhancing loan growth Strong Capital 1. Non-GAAP measure, refer to appendix for reconciliation 2. US banks with $10 billion to $100 billion in assets. CAGR from FY’18-FY’23 3. Capital ratios are estimated pending final regulatory report Share repurchase authorization provides flexibility to opportunistically repurchase sharesShare Repurchase

ANALYST COVERAGE D.A. Davidson Companies Peter Winter Hovde Group David Bishop Jefferies Group LLC Casey Haire Keefe, Bruyette & Woods Inc. Kelly Motta Maxim Group LLC Michael Diana Piper Sandler Companies Frank Schiraldi Stephens Inc. Matt Breese Wedbush Securities Inc. David Chiaverini Raymond James Steve Moss B.Riley Securities, Inc. Hal Goetsch 2024 New Analyst

APPENDIX

20 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers Bancorp, Inc. NYSE: CUBI Headquarters West Reading, PA Offices1 40 FTE Employees 806 Market Capitalization As of July 19, 2024 $2.0B Total Assets $20.9B Tangible Book Value2 $50.70 Share price As of July 19, 2024 $61.88 Data as of June 30, 2024, unless otherwise noted (1) Offices includes branches, executive offices, Private Banking Offices and Loan Production Offices (2) Non-GAAP measure, refer to appendix for reconciliation Customers Bancorp Overview Community Banking Corporate & Specialized Banking Corporate & Specialized Banking Community Banking Digital Banking Deep relationship-based community banking predominantly in the Northeast with selected presence in the Carolinas and Florida Serving small and medium-sized businesses, and individuals, with a comprehensive suite of loan and deposit products National corporate businesses where Customers has differentiated capabilities, often enhanced through technology, to create value for clients Serving sophisticated corporate businesses above the complexity level of most community banks but with a higher level of service and attention than large regionals provide Consumer Suite of loan and deposit products delivered digitally to clients; increasingly generating fee and “fee- like” revenue with limited credit risk through our HFS strategy Commercial Transaction banking (treasury and payment services) with associated deposits D es cr ip tio n Regional C&I, owner-occupied CRE, SBA, multifamily, non-owner-occupied CRE, mortgage Operating deposit accounts (commercial and consumer) Lender finance, capital call lines, venture banking, mortgage finance, equipment finance, healthcare, real estate specialty finance Operating deposit accounts Consumer installment lending Payments Online savings Pr od uc ts Providence Dallas Raleigh/Durham Chicago Washington, D.C. Southern California Bay Area Denver NYC Boston Orlando PA Portsmouth Austin Reno

21 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Demonstrated Sustainable Organic Growth Increasing Revenue, EPS and TBVPS at 15%+ CAGR Over the Last Five Years Total Revenue CAGR FY’18-FY’23, percent Diluted EPS CAGR FY’18-FY’23, percent Tangible Book Value1 CAGR Q4’18-Q4’23, percent • CUBI 5-year CAGR growth in Revenue, EPS and TBVPS1 greater than top quartile of $10-100 billion US banks • #1 EPS compounder among $10-100 billion US banks 1. Non-GAAP measure, refer to appendix for reconciliation CUBI Top Quartile $10-100B US Banks 19% 12% CUBI Top Quartile $10-100B US Banks 33% 7% CUBI Top Quartile $10-100B US Banks 15% 8%

22 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. 17% 49% 33% 1% FICO Score1 660-679 680-699 700-749 750+ 26% 32% 23% 12% 6% 1% 0-9.99% 10 – 19.99% 20 – 29.99% 30 – 39.99% 40 – 49.99% > 50% Unknown Geography Profession Debt to Income Ratio1 Borrower Income 16% 41% 43% <$50K $50K -$100K >$100K 20% 11% 20% 27% 22% West Southwest Midwest Southeast Northeast Consumer Installment Loans – Portfolio Credit Metrics Purpose 67% 9% 6% 18% Personal Loan Specialty Home Improvement Student Loan 96% 3% 2% Non COVID-19 Impacted Segments Non-Professional Retail & Restaurants Average FICO Score1 ~738 Average DTI1 ~20% Average Borrower Income ~$106k Weighted average life of ~2.2 years Note: Data as of June 30, 2024; includes consumer installment HFS loans 1. DTI and FICO scores as of time of origination

23 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Investment Securities – AFS percent, Q2’24 Securities Portfolio Generating Attractive Returns with Minimal Credit and Duration Risk • Spot yield: 5.19% • Effective duration: 2.0 years • Floating rate securities: 33% • Credit rating: 63% AAA with only 3% at BB and below • Approximately $220 million securities portfolio rotation in Q2’24 reduced asset sensitivity and increased high quality liquid assets 57%23% 18% 1% MBS & CMO ABS OtherCorporate Total: $2.5 billion Investment Securities – HTM percent, Q2’24 • Spot yield: 4.16% • Effective duration: 3.1 years • Floating rate securities: 25% • Credit rating: 43% AAA with no rated securities non-investment grade • ABS: $0.5 billion of credit enhanced asset backed securities from sale of consumer installment loan portfolio in Q3’22 and Q2’23 54% 46% MBS & CMO Credit Enhanced ABS Total: $1.0 billion

24 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Selected 2024 Proxy Peers • BankUnited • Commerce • Community Bank System • FB Financial • First Busey • F.N.B. • Fulton • Independent • Northwest • Old National • Pinnacle • Sandy Spring • United Community Note: Excludes the following banks due to lack of available disclosure – Ameris, Associated, Atlantic Union, Axos, Eastern, First Financial (OH), First Merchants, Provident, Silvergate (removed following its March 8, 2023 announcement that it would wind down operations and liquidate the bank), TowneBank, United, WesBanco, WSFS

25 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Sources of Liquidity 1. Includes CLOs Liquidity Sources ($000's) 2Q 24 1Q 24 QoQ Change Cash and Cash Equivalents $3,048,586 $3,701,120 ($652,534) FHLB Available Borrowing Capacity $966,409 $1,119,296 ($152,887) FRB Available Borrowing Capacity $4,283,486 $4,082,885 $200,601 Investments (MV AFS + HTM) US Gov't & Agency Debt $0 $0 $0 Agency & Non-Agency MBS & CMO $1,953,596 $1,840,287 $113,309 Municipals $0 $0 $0 Corporates $587,746 $610,470 ($22,724) ABS (1) $899,215 $1,152,419 ($253,204) Other AFS $33,892 $33,729 $163 Less: Pledged Securities HTM & AFS ($1,733,875) ($1,714,379) ($19,497) Net Unpledged Securities $1,740,574 $1,922,526 ($181,952) $10,039,056 $10,825,827 ($786,771)

26 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. 1. Excludes mortgage finance reported at fair value, loans held for sale and PPP loans 2. Utilized Moody’s June 2024 baseline and adverse forecast scenario with qualitative adjustments for Q2’24 provision 3. Utilized Moody’s March 2024 baseline and adverse forecast scenario with qualitative adjustments for Q1’24 provision 4. Non-GAAP measure, refer to appendix for reconciliation Allowance for Credit Losses for Loans and Leases ($ in thousands) June 30, 2024 March 31, 2023 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate2 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate3 Loans and Leases Receivable: Commercial: Commercial and Industrial, including Specialty Lending $ 6,702,708 $ 23,721 0.35 % $ 6,274,501 $ 23,003 0.37 % Multifamily 2,067,332 20,652 1.00 % 2,123,675 18,307 0.86 % Commercial Real Estate Owner Occupied 805,779 8,431 1.05 % 806,278 10,201 1.27 % Commercial Real Estate Non-Owner Occupied 1,202,606 17,966 1.49 % 1,182,084 18,320 1.55 % Construction 163,409 1,856 1.14 % 185,601 1,866 1.01 % Total Commercial Loans and Leases Receivable $ 10,941,834 $ 72,626 0.66 % $ 10,572,139 $ 71,697 0.68 % Consumer: Residential Real Estate $ 481,503 $ 5,884 1.22 % $ 482,537 $ 6,707 1.39 % Manufacturing Housing 35,901 4,094 11.40 % 37,382 4,160 11.13 % Installment 756,682 49,832 6.59 % 792,606 50,732 6.40 % Total Consumer Loans Receivable $ 1,274,086 $ 59,810 4.69 % $ 1,312,525 $ 61,599 4.69 % Total Loans and Leases Receivable $ 12,215,920 $ 132,436 1.08 %4 $ 11,884,664 $ 133,296 1.12 %4

27 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers believes that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in Customers' industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. 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. Reconciliation of Non-GAAP Measures - Unaudited

28 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core earnings and adjusted core earnings- Customers Bancorp ($ in thousands except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Total Per share Total Per share Total Per share Total Per share Total Per share GAAP net income to common shareholders $ 54,300 $ 1.66 $ 45,926 $ 1.40 $ 58,223 $ 1.79 $ 82,953 $ 2.58 $ 44,007 $ 1.39 Reconciling items (after tax): Severance expense 1,928 0.06 — — 473 0.01 — — 141 0.00 Impairments on fixed assets and leases — — — — — — — — 12 0.00 Loss on sale of capital call lines of credit — — — — — — — — 3,914 0.12 (Gains) losses on investment securities 561 0.02 57 — (85) (0.00) 492 0.02 49 0.00 Derivative credit valuation adjustment (44) — 169 0.01 267 0.01 (151) (0.00) (101) (0.00) Tax on surrender of bank-owned life insurance policies — — — — — — — — — 4,141 0.13 FDIC special assessment 138 0.00 380 0.01 2,755 0.08 — — — — Unrealized (gain) on equity method investments (8,316) (0.25) — — — — — — — — Core earnings $ 48,567 $ 1.49 $ 46,532 $ 1.42 $ 61,633 $ 1.90 $ 83,294 $ 2.59 $ 52,163 $ 1.65 Deposit servicing fees prior to 2024 5,405 0.16 FDIC premiums prior to 2024 3,200 0.10 Core earnings adjusted for one-time non-interest expense items $ 48,567 $ 1.49 $ 55,137 $ 1.68 $ 61,633 $ 1.90 $ 83,294 $ 2.59 $ 52,163 $ 1.65

29 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core return on average assets and adjusted core return on average assets - Customers Bancorp (dollars in thousands except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 GAAP net income $ 58,085 $ 49,726 $ 62,092 $ 86,756 $ 47,574 Reconciling items (after tax): Severance expense 1,928 — 473 — 141 Impairments on fixed assets and leases — — — — 12 Loss on sale of capital call lines of credit — — — — 3,914 (Gains) losses on investment securities 561 57 (85) 492 49 Derivative credit valuation adjustment (44) 169 267 (151) (101) Tax on surrender of bank-owned life insurance policies — — — — 4,141 FDIC special assessment 138 380 2,755 — — Unrealized (gain) on equity method investments $ (8,316) — — — — Core net income 52,352 $ 50,332 $ 65,502 $ 87,097 $ 55,730 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — 5,405 — — — FDIC premiums prior to 2024 — 3,200 — — — Core net income adjusted for one-time non-interest expense items $ 52,352 $ 58,937 $ 65,502 $ 87,097 $ 55,730 Average total assets $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 $ 21,654,735 Core return on average assets 1.00 % 0.95 % 1.22 % 1.57 % 1.03 % Adjusted core return on average assets (adjusted for one-time non-interest expense items.) 1.00 % 1.11 % 1.22 % 1.57 % 1.03 %

30 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core return on average common equity and adjusted core return on average common equity - Customers Bancorp (dollars in thousands except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 GAAP net income to common shareholders $ 54,300 $ 45,926 $ 58,223 $ 82,953 $ 44,007 Reconciling items (after tax): Severance expense 1,928 — 473 — 141 Impairments on fixed assets and leases — — — — 12 Loss on sale of capital call lines of credit — — — — 3,914 (Gains) losses on investment securities 561 57 (85) 492 49 Derivative credit valuation adjustment (44) 169 267 (151) (101) Tax on surrender of bank-owned life insurance policies — — — — 4,141 FDIC special assessment 138 380 2,755 — — Unrealized (gain) on equity method investments (8,316) — — — — Core earnings 48,567 $ 46,532 $ 61,633 $ 83,294 $ 52,163 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — 5,405 — — — FDIC premiums prior to 2024 — 3,200 — — — Adjusted core earnings (adjusted for one-time non-interest expense items) $ 48,567 $ 55,137 $ 61,633 $ 83,294 $ 52,163 Average total common shareholders' equity $ 1,576,595 $ 1,529,211 $ 1,449,728 $ 1,373,244 $ 1,335,408 Core return on average common equity 12.39 % 12.24 % 16.87 % 24.06 % 15.67 % Adjusted core return on average common equity (adjusted for one-time non-interest expense items) 12.39 % 14.50 % 16.87 % 24.06 % 15.67 %

31 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core pre-tax pre-provision net income and ROAA and adjusted core pre-tax pre-provision net income and ROAA - Customers Bancorp (dollars in thousands except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 GAAP net income $ 58,085 $ 49,726 $ 62,092 $ 86,756 $ 47,574 Reconciling items: Income tax expense 19,032 15,651 21,796 23,470 20,768 Provision (benefit) for credit losses 18,121 17,070 13,523 17,856 23,629 Provision (benefit) for credit losses on unfunded commitments 1,594 430 (136) 48 (304) Severance expense 2,560 — 639 — 182 Impairments on fixed assets and leases — — — — 15 Loss on sale of capital call lines of credit — — — — 5,037 (Gains) losses on investment securities 744 75 (114) 626 62 Derivative credit valuation adjustment (58) 222 361 (192) (130) FDIC special assessment 183 500 3,723 — — Unrealized (gain) on equity method investments (11,041) — — — — Net income - pre-tax pre-provision $ 89,220 $ 83,674 $ 101,884 $ 128,564 $ 96,833 One-time non-interest expense items recorded in 2024: Deposit servicing fees prior to 2024 — 7,106 — — — FDIC premiums prior to 2024 — 4,208 — — — Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items) $ 89,220 $ 94,988 $ 101,884 $ 128,564 $ 96,833 Average total assets $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 $ 21,654,735 Core pre-tax pre-provision ROAA 1.71 % 1.58 % 1.90 % 2.32 % 1.79 % Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items) 1.71 % 1.79 % 1.90 % 2.32 % 1.79 %

32 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) 1. Core efficiency ratio calculated as non-interest expense divided by core revenue 2. Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue Core efficiency ratio and adjusted core efficiency ratio - Customers Bancorp (dollars in thousands except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 GAAP net interest income $ 167,653 $ 160,385 $ 172,506 $ 199,773 $ 165,271 GAAP non-interest income $ 31,037 $ 21,231 $ 18,672 $ 17,775 $ 15,997 Loss on sale of capital call lines of credit — — — — 5,037 (Gains) losses on investment securities 744 75 (114) 626 62 Derivative credit valuation adjustment (58) 222 361 (192) (130) Unrealized (gain) on equity method investments (11,041) — — — — Core non-interest income 20,682 21,528 18,919 18,209 20,966 Core revenue $ 188,335 $ 181,913 $ 191,425 $ 217,982 $ 186,237 GAAP non-interest expense $ 103,452 $ 99,169 $ 93,767 $ 89,466 $ 89,297 Severance expense (2,560) — (639) — (182) Impairments on fixed assets and leases — — — — (15) FDIC special assessment (183) (500) (3,723) — — Core non-interest expense $ 100,709 $ 98,669 $ 89,405 $ 89,466 $ 89,100 One-time non-interest expense items recorded in 2024: Deposit servicing fees prior to 2024 — (7,106) — — — FDIC premiums prior to 2024 — (4,208) — — — Adjusted core non-interest expense $ 100,709 $ 87,355 $ 89,405 $ 89,466 $ 89,100 Core efficiency ratio (1) 53.47 % 54.24 % 46.70 % 41.04 % 47.84 % Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2) 53.47 % 48.02 % 46.70 % 41.04 % 47.84 %

33 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core non-Interest expense to average total assets and adjusted core non-interest expense to average total assets- Customers Bancorp (dollars in thousands except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 GAAP non-interest expense $ 103,452 $ 99,169 $ 93,767 $ 89,466 $ 89,297 Severance expense (2,560) — (639) — (182) Impairments on fixed assets and leases — — — — (15) FDIC special assessment (183) (500) (3,723) — — Core non-interest expense $ 100,709 $ 98,669 $ 89,405 $ 89,466 $ 89,100 One-time non-interest expense items recorded in 2024: Deposit servicing fees prior to 2024 — (7,106) — — — FDIC premiums prior to 2024 — (4,208) — — — Adjusted core non-interest expense $ 100,709 $ 87,355 $ 89,405 $ 89,466 $ 89,100 Average total assets $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 $ 21,654,735 Core non-interest expense to average assets 1.93 % 1.86 % 1.67 % 1.62 % 1.65 % Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items) 1.93 % 1.65 % 1.67 % 1.62 % 1.65 %

34 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible common equity to tangible assets - Customers Bancorp (dollars in thousands except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 GAAP total shareholders' equity $ 1,746,865 $ 1,691,617 $ 1,638,394 $ 1,561,607 $ 1,456,652 Reconciling items: Preferred stock (137,794) (137,794) (137,794) (137,794) (137,794) Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629) Tangible common equity $ 1,605,442 $ 1,550,194 $ 1,496,971 $ 1,420,184 $ 1,315,229 GAAP Total assets $ 20,942,975 $ 21,347,367 $ 21,316,265 $ 21,857,152 $ 22,028,565 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629) Tangible assets $ 20,939,346 $ 21,343,738 $ 21,312,636 $ 21,853,523 $ 22,024,936 Tangible common equity to tangible assets 7.7 % 7.3 % 7.0 % 6.5 % 6.0 %

35 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible book value per common share - Customers Bancorp (dollars in thousands except per share data) Q2 2024 Q4 2023 Q4 2022 Q4 2021 Q4 2020 Q4 2019 Q4 2018 GAAP total shareholders' equity $ 1,746,865 $ 1,638,394 $ 1,402,961 $ 1,366,217 $ 1,117,086 $ 1,052,795 $ 956,816 Reconciling Items: Preferred stock (137,794) (137,794) (137,794) (137,794) (217,471) (217,471) (217,471) Goodwill and other intangibles (3,629) (3,629) (3,629) (3,736) (14,298) (15,195) (16,499) Tangible common equity $ 1,605,442 $ 1,496,971 $ 1,261,538 $ 1,224,687 $ 885,317 $ 820,129 $ 722,846 Common shares outstanding 31,667,655 31,440,906 32,373,697 32,913,267 31,705,088 31,336,791 31,003,028 Tangible book value per common share $ 50.70 $ 47.61 $ 38.97 $ 37.21 $ 27.92 $ 26.17 $ 23.32

36 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Business unit deposits (Total deposits, excluding wholesale CDs and BMTX student deposits) - Customers Bancorp (Dollars in thousands, except per share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Total deposits $ 17,678,093 $ 17,961,383 $ 17,920,236 $ 18,195,364 $ 17,950,431 Reconciling items: Wholesale CDs 1,545,885 1,809,573 2,970,615 3,713,933 4,651,054 BMTX student deposits - 850 1,157 636,951 407,118 Business unit deposits (Total deposits, excluding wholesale CDs and BMTX student deposits) $ 16,132,208 $ 16,150,960 $ 14,948,464 $ 13,844,480 $ 12,892,259

37 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Coverage of credit loss reserves for loans and leases HFI, excluding PPP - Customers Bancorp (dollars in thousands) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Loans and leases receivable $ 12,254,204 $ 11,936,621 $ 11,963,855 $ 12,600,548 $ 12,826,531 Loans receivable, PPP (38,284) (51,957) (74,735) (137,063) (188,763) Loans and leases held for investment, excluding PPP $ 12,215,920 $ 11,884,664 $ 11,889,120 $ 12,463,485 $ 12,637,768 Allowance for credit losses on loans and leases $ 132,436 $ 133,296 $ 135,311 $ 139,213 $ 139,656 Coverage of credit loss reserves for loans and leases held for investment, excluding PPP 1.08 % 1.12 % 1.14 % 1.12 % 1.11 %

Document and Entity Information	Jul. 25, 2024
Entity Information [Line Items]
Amendment Flag	false
Entity Incorporation, State or Country Code	PA
Document Type	8-K
Document Period End Date	Jul. 25, 2024
Entity Registrant Name	Customers Bancorp, Inc.
Entity File Number	001-35542
Entity Tax Identification Number	27-2290659
Entity Address, Address Line One	701 Reading Avenue
Entity Address, City or Town	West Reading
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19611
City Area Code	610
Local Phone Number	933-2000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001488813
Voting Common Stock, par value $1.00 per share \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Voting Common Stock, par value $1.00 per share
Trading Symbol	CUBI
Security Exchange Name	NYSE
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series E, par value $1.00 per share
Trading Symbol	CUBI/PE
Security Exchange Name	NYSE
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, par value $1.00 per share \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series F, par value $1.00 per share
Trading Symbol	CUBI/PF
Security Exchange Name	NYSE
Subordinated Debt [Member] \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	5.375% Subordinated Notes due 2034
Trading Symbol	CUBB
Security Exchange Name	NYSE