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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): October 31, 2024


Capture.jpg

(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 October 31, 2024, Customers Bancorp, Inc. (the "Company") issued a press release announcing unaudited financial information for the quarter ended September 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
Press Release dated October 31, 2024
Slide presentation dated October 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 S. Watkins
Name: Philip S. Watkins
Title: Executive Vice President - Chief Financial Officer


Date: October 31, 2024




EXHIBIT INDEX

Exhibit No. Description
Press Release dated October 31, 2024
Slide presentation dated October 2024


EX-99.1 2 q324pressrelease.htm EX-99.1 Document

Exhibit 99.1
customersbancorp_logoxprima.jpg
Customers Bancorp, Inc. (NYSE:CUBI)
701 Reading Avenue
West Reading, PA 19611

Contact:
Jordan Baucum, Head of Corporate Communications 951-608-8314
Customers Bancorp Reports Results for Third Quarter 2024
Third Quarter 2024 Highlights
•Q3 2024 net income available to common shareholders was $42.9 million, or $1.31 per diluted share; ROAA was 0.88% and ROCE was 10.44%.
•Q3 2024 core earnings*1 were $43.8 million, or $1.34 per diluted share; Core ROAA* was 0.89% and Core ROCE* was 10.66%.
•CET 1 ratio of 12.5%2 at September 30, 2024, compared to 12.8% at June 30, 2024, above the 11.5% target.
•TCE / TA ratio* of 7.7% at September 30, 2024, compared to 7.7% at June 30, 2024, above the 7.5% target.
•Total loans and leases held for investment grew by $520.8 million in Q3 2024 from Q2 2024 or 16% annualized.
•Q3 2024 deposit inflows from commercial customers of $1.1 billion funded the paydown of $0.7 billion of higher-cost commercial and consumer deposits. Total deposits increased by $391.3 million in Q3 2024 from Q2 2024.
•Total estimated insured deposits were 75%3 of total deposits at September 30, 2024, with immediately available liquidity covering estimated uninsured deposits3 by approximately 183%.
•Q3 2024 net interest margin, tax equivalent (“NIM”) was 3.06%, compared to Q2 2024 NIM of 3.29% primarily due to lower discount accretion and prepayment income in Q3 2024 as well as lower average consumer installment loan balances and securities portfolio repositioning.
•Non-performing assets were $47.3 million, or 0.22% of total assets, at September 30, 2024 compared to 0.23% at June 30, 2024.
•Q3 2024 provision for credit losses on loans and leases was $17.8 million compared to $17.9 million in Q2 2024 and the allowance for credit losses on loans and leases equaled 281% of non-performing loans at September 30, 2024, compared to 280% at June 30, 2024.
•Q3 2024 book value per share and tangible book value per share* both grew by approximately $2.26, or 4.5% over Q2 2024, or 17.7% annualized, with a tangible book value per share* of $52.96 at September 30, 2024. This was driven by current quarter earnings and a decrease in AOCI losses of $25.3 million.



*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 severance expense of $0.7 million, unrealized losses on loans held for sale of $0.6 million, gain on investment securities of $0.4 million and derivative credit valuation adjustment of $0.2 million.
2 Regulatory capital ratios as of September 30, 2024 are estimates.
3 Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.
1

CEO Commentary
West Reading, PA, October 31, 2024 - “Customers Bancorp continued to deliver on its strategic priorities to grow our franchise value through lower-cost and granular deposit inflows and diversified loan growth while we manage our operational risks,” said Customers Bancorp Chairman and CEO Jay Sidhu. “We have strong momentum as we pursue phase two of our deposit transformation strategy – remixing existing higher-cost business unit deposits*1 and brokered deposits into core lower-cost and granular deposits. We started the year with robust pipeline within our existing businesses which has been materially enhanced by the new commercial banking teams that joined Customers in April. In the quarter, we utilized deposit growth from commercial customers of $1.1 billion to paydown $0.7 billion of higher-cost commercial and consumer client deposits. In the third quarter, these inflows were, once again, broad-based with more than 25 different channels increasing balances and 70% of channels contributing $25 million or more. Our new deposit focused commercial banking teams have opened over 3,000 new deposit accounts since joining and gathered $536 million in deposits at an interest rate of approximately 2.9% with approximately 30% being non-interest bearing. Our deposit pipelines continue to grow with an extraordinary conversion ratio. We repurchased 373,974 shares of common stock under the previously authorized share repurchase program at an average price below Tangible Book Value per share*. Even with the share repurchase and balance sheet growth, our TCE / TA ratio* remained flat. 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 Q3 2024 GAAP earnings were $42.9 million, or $1.31 per diluted share, and core earnings* were $43.8 million, or $1.34 per diluted share. At September 30, 2024, our deposit base was well diversified, with approximately 75%2 of total deposits insured. We maintain a strong liquidity position, with $8.3 billion of liquidity immediately available, which covers approximately 183% of uninsured deposits2 and our loan to deposit ratio was 78%. We continue to focus loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $520.8 million which represent a 16% annualized growth rate, driven by strong commercial loan growth of $539.5 million. Our loan pipeline continued to build during the third quarter, and we remain confident in achieving the 10% – 15% loan growth outlook previously provided. We continue to hold strong levels of liquidity and capital to support the needs of our customers. Asset quality remains strong, and a clear differentiator for us, with our NPA ratio at just 0.22% of total assets and reserve levels are robust at 281% of total non-performing loans at the end of Q3 2024. Total net charge-offs declined by $1.7 million and the combined level of special mention and substandard commercial loans declined by $44.0 million during the quarter. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. 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 $52.96. We are excited and optimistic about the opportunities ahead which have been enhanced by the addition of the new banking teams,” Jay Sidhu continued.







*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.
2 Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.
2

Financial Highlights
(Dollars in thousands, except per share data)
 At or Three Months Ended Increase (Decrease)
September 30, 2024 June 30, 2024
Profitability Metrics:
Net income available for common shareholders $ 42,937  $ 54,300  $ (11,363) (20.9) %
Diluted earnings per share $ 1.31  $ 1.66  $ (0.35) (21.1) %
Core earnings* $ 43,838  $ 48,567  $ (4,729) (9.7) %
Adjusted core earnings*
 $ 41,381  $ 48,567  $ (7,186) (14.8) %
Core earnings per share* $ 1.34  $ 1.49  $ (0.15) (10.1) %
Adjusted core earnings per share*
 $ 1.26  $ 1.49  $ (0.23) (15.4) %
Return on average assets (“ROAA”)
 0.88  % 1.11  % (0.23)
Core ROAA* 0.89  % 1.00  % (0.11)
Adjusted core ROAA*
 0.85  % 1.00  % (0.15)
Return on average common equity (“ROCE”)
 10.44  % 13.85  % (3.41)
Core ROCE* 10.66  % 12.39  % (1.73)
Adjusted core ROCE*
 10.06  % 12.39  % (2.33)
Core pre-tax pre-provision net income*
 $ 64,824  $ 89,220  $ (24,396) (27.3) %
Adjusted core pre-tax pre-provision net income*
 $ 61,827  $ 89,220  $ (27,393) (30.7) %
Net interest margin, tax equivalent 3.06  % 3.29  % (0.23)
Yield on loans (Loan yield)
 6.99  % 7.17  % (0.18)
Cost of deposits 3.46  % 3.40  % 0.06 
Efficiency ratio 62.40  % 51.87  % 10.53 
Core efficiency ratio* 61.69  % 53.47  % 8.22 
Adjusted core efficiency ratio*
 63.48  % 53.47  % 10.01 
Non-interest expense to average total assets
 1.95  % 1.98  % (0.03)
Core non-interest expense to average total assets*
 1.94  % 1.93  % 0.01 
Adjusted core non-interest expense to average total assets*
 1.99  % 1.93  % 0.06 
Balance Sheet Trends:
Total assets $ 21,456,082  $ 20,942,975  $ 513,107  2.5  %
Total cash and investment securities
 $ 6,564,528  $ 6,523,036  $ 41,492  0.6  %
Total loans and leases $ 14,053,116  $ 13,632,639  $ 420,477  3.1  %
Non-interest bearing demand deposits $ 4,670,809  $ 4,474,862  $ 195,947  4.4  %
Total deposits $ 18,069,389  $ 17,678,093  $ 391,296  2.2  %
Capital Metrics:
Common Equity $ 1,663,386  $ 1,609,071  $ 54,315  3.4  %
Tangible Common Equity* $ 1,659,757  $ 1,605,442  $ 54,315  3.4  %
Common Equity to Total Assets 7.8  % 7.7  % 0.1 
Tangible Common Equity to Tangible Assets* 7.7  % 7.7  % — 
Book Value per common share $ 53.07  $ 50.81  $ 2.26  4.4  %
Tangible Book Value per common share* $ 52.96  $ 50.70  $ 2.26  4.5  %
Common equity Tier 1 capital ratio (1)
 12.5  % 12.8  % (0.3)
Total risk based capital ratio (1)
 15.4  % 15.8  % (0.4)
(1) Regulatory capital ratios as of September 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.
3

Financial Highlights
(Dollars in thousands, except per share data)
 At or Three Months Ended Increase (Decrease) Nine Months Ended Increase (Decrease)
September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Profitability Metrics:
Net income available for common shareholders $ 42,937  $ 82,953  $ (40,016) (48.2) % $ 143,163  $ 177,225  $ (34,062) (19.2) %
Diluted earnings per share $ 1.31  $ 2.58  $ (1.27) (49.2) % $ 4.37  $ 5.53  $ (1.16) (21.0) %
Core earnings* $ 43,838  $ 83,294  $ (39,456) (47.4) % $ 138,937  $ 186,600  $ (47,663) (25.5) %
Adjusted core earnings*
 $ 41,381  $ 83,294  $ (41,913) (50.3) % $ 145,085  $ 186,600  $ (41,515) (22.2) %
Core earnings per share* $ 1.34  $ 2.59  $ (1.25) (48.3) % $ 4.24  $ 5.82  $ (1.58) (27.1) %
Adjusted core earnings per share*
 $ 1.26  $ 2.59  $ (1.33) (51.4) % $ 4.43  $ 5.82  $ (1.39) (23.9) %
Return on average assets (“ROAA”)
 0.88  % 1.57  % (0.69) 0.97  % 1.17  % (0.20)
Core ROAA* 0.89  % 1.57  % (0.68) 0.95  % 1.22  % (0.27)
Adjusted core ROAA*
 0.85  % 1.57  % (0.72) 0.99  % 1.22  % (0.23)
Return on average common equity (“ROCE”)
 10.44  % 23.97  % (13.53) 12.10  % 17.84  % (5.74)
Core ROCE* 10.66  % 24.06  % (13.40) 11.74  % 18.79  % (7.05)
Adjusted core ROCE*
 10.06  % 24.06  % (14.00) 12.26  % 18.79  % (6.53)
Core pre-tax pre-provision net income*
 $ 64,824  $ 128,564  $ (63,740) (49.6) % $ 237,718  $ 314,679  $ (76,961) (24.5) %
Adjusted core pre-tax pre-provision net income*
 $ 61,827  $ 128,564  $ (66,737) (51.9) % $ 246,035  $ 314,679  $ (68,644) (21.8) %
Net interest margin, tax equivalent 3.06  % 3.70  % (0.64) 3.16  % 3.28  % (0.12)
Yield on loans (Loan yield)
 6.99  % 7.87  % (0.88) 7.07  % 7.12  % (0.05)
Cost of deposits 3.46  % 3.24  % 0.22  3.44  % 3.23  % 0.21 
Efficiency ratio 62.40  % 41.01  % 21.39  55.97  % 45.62  % 10.35 
Core efficiency ratio* 61.69  % 41.04  % 20.65  56.29  % 45.03  % 11.26 
Adjusted core efficiency ratio*
 63.48  % 41.04  % 22.44  54.75  % 45.03  % 9.72 
Non-interest expense to average total assets
 1.95  % 1.62  % 0.33  1.93  % 1.61  % 0.32 
Core non-interest expense to average total assets*
 1.94  % 1.62  % 0.32  1.91  % 1.60  % 0.31 
Adjusted core non-interest expense to average total assets*
 1.99  % 1.62  % 0.37  1.86  % 1.60  % 0.26 
(1) Regulatory capital ratios as of September 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.

4

Financial Highlights
(Dollars in thousands, except per share data)
 At or Three Months Ended Increase (Decrease)
September 30, 2024 September 30, 2023
Balance Sheet Trends:
Total assets $ 21,456,082  $ 21,857,152  $ (401,070) (1.8) %
Total cash and investment securities
 $ 6,564,528  $ 7,371,551  $ (807,023) (10.9) %
Total loans and leases $ 14,053,116  $ 13,713,482  $ 339,634  2.5  %
Non-interest bearing demand deposits $ 4,670,809  $ 4,758,682  $ (87,873) (1.8) %
Total deposits $ 18,069,389  $ 18,195,364  $ (125,975) (0.7) %
Capital Metrics:
Common Equity $ 1,663,386  $ 1,423,813  $ 239,573  16.8  %
Tangible Common Equity* $ 1,659,757  $ 1,420,184  $ 239,573  16.9  %
Common Equity to Total Assets 7.8  % 6.5  % 1.3 
Tangible Common Equity to Tangible Assets* 7.7  % 6.5  % 1.2 
Book Value per common share $ 53.07  $ 45.47  $ 7.60  16.7  %
Tangible Book Value per common share* $ 52.96  $ 45.36  $ 7.60  16.8  %
Common equity Tier 1 capital ratio (1)
 12.5  % 11.3  % 1.2 
Total risk based capital ratio (1)
 15.4  % 14.3  % 1.1 
(1) Regulatory capital ratios as of September 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.
5

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) September 30, 2024 % of Total June 30, 2024 % of Total September 30, 2023 % of Total
Loans and Leases Held for Investment
Commercial:
Commercial & industrial:
Specialized lending $ 5,468,507  39.7  % $ 5,528,745  41.7  % $ 5,422,161  40.0  %
Other commercial & industrial (1)
 1,087,222  7.9  1,092,146  8.2  1,252,427  9.2 
Mortgage finance 1,367,617  9.9  1,122,812  8.5  1,042,549  7.7 
Multifamily 2,115,978  15.4  2,067,332  15.6  2,130,213  15.7 
Commercial real estate owner occupied 981,904  7.1  805,779  6.1  794,815  5.9 
Commercial real estate non-owner occupied 1,326,591  9.6  1,202,606  9.1  1,178,203  8.7 
Construction 174,509  1.3  163,409  1.2  252,588  1.8 
Total commercial loans and leases 12,522,328  90.9  11,982,829  90.4  12,072,956  89.0 
Consumer:
Residential 500,786  3.6  481,503  3.6  483,133  3.6 
Manufactured housing 34,481  0.3  35,901  0.3  40,129  0.3 
Installment:
Personal 453,739  3.3  474,481  3.6  629,843  4.6 
Other 266,362  1.9  282,201  2.1  337,053  2.5 
Total installment loans 720,101  5.2  756,682  5.7  966,896  7.1 
Total consumer loans 1,255,368  9.1  1,274,086  9.6  1,490,158  11.0 
Total loans and leases held for investment $ 13,777,696  100.0  % $ 13,256,915  100.0  % $ 13,563,114  100.0  %
Loans Held for Sale
Residential $ 2,523  0.9  % $ 2,684  0.7  % $ 1,005  0.7  %
Installment:
Personal 55,799  20.3  125,598  33.4  124,848  83.0 
Other 217,098  78.8  247,442  65.9  24,515  16.3 
Total installment loans 272,897  99.1  373,040  99.3  149,363  99.3 
Total loans held for sale $ 275,420  100.0  % $ 375,724  100.0  % $ 150,368  100.0  %
Total loans and leases portfolio $ 14,053,116  $ 13,632,639  $ 13,713,482 
(1)    Includes PPP loans of $30.5 million, $38.3 million and $137.1 million as of September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
Loans and Leases Held for Investment
Loans and leases held for investment were $13.8 billion at September 30, 2024, up $520.8 million, or 3.9%, from June 30, 2024. Mortgage finance loans increased by $244.8 million, or 21.8% quarter-over-quarter. Owner-occupied commercial real estate loans increased by $176.1 million, or 21.9% to $981.9 million. Non-owner occupied commercial real estate loans increased by $124.0 million, or 10.3% to $1.3 billion. Multifamily loans increased by $48.6 million, or 2.4% to $2.1 billion. Specialized lending decreased by $60.2 million, or 1.1% quarter-over-quarter, to $5.5 billion. Other commercial and industrial loans decreased by $4.9 million, or 0.5% quarter-over-quarter, to $1.1 billion. Consumer installment loans held for investment decreased by $36.6 million, or 4.8% quarter-over-quarter, to $720.1 million.
6

Loans and leases held for investment of $13.8 billion at September 30, 2024 were up $214.6 million, or 1.6%, year-over-year. Mortgage finance loans increased by $325.1 million, or 31.2% year-over-year due to higher mortgage activity from lower interest rates. Owner-occupied commercial real estate loans increased by $187.1 million. Non-owner occupied commercial real estate loans increased by $148.4 million. Specialized lending increased by $46.3 million. Consumer installment loans decreased by $246.8 million, or 25.5% year-over-year due to the continued build out of the held-for-sale strategy and de-risking of the held-for-investment loan portfolio. Other commercial and industrial loans decreased by $165.2 million, which included decreases in PPP loans primarily from guarantee payments. Construction loans decreased by $78.1 million.
Loans Held for Sale
Loans held for sale decreased $100.3 million quarter-over-quarter, and were $275.4 million at September 30, 2024 including the sale of consumer installment loans that were classified as held for sale with a carrying value of $200.8 million in Q3 2024. As part of these sales, Customers recognized a loss on sale of $0.3 million, which is presented within net gain (loss) on sale of loans and leases in the consolidated statement of income in Q3 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) September 30, 2024 June 30, 2024 September 30, 2024 September 30, 2023
Allowance for credit losses on loans and leases $ 133,158  $ 132,436  $ 722  $ 133,158  $ 139,213  $ (6,055)
Provision (benefit) for credit losses on loans and leases $ 17,766  $ 17,851  $ (85) $ 17,766  $ 17,055  $ 711 
Net charge-offs from loans held for investment $ 17,044  $ 18,711  $ (1,667) $ 17,044  $ 17,498  $ (454)
Annualized net charge-offs to average loans and leases 0.50  % 0.56  % 0.50  % 0.50  %
Coverage of credit loss reserves for loans and leases held for investment 1.06  % 1.08  % 1.06  % 1.10  %
Net charge-offs decreased modestly with $17.0 million in Q3 2024, compared to $18.7 million in Q2 2024 and $17.5 million in Q3 2023.
Provision (benefit) for Credit Losses
Three Months Ended Increase (Decrease) Three Months Ended Increase (Decrease)
(Dollars in thousands) September 30, 2024 June 30, 2024 September 30, 2024 September 30, 2023
Provision (benefit) for credit losses on loans and leases
 $ 17,766  $ 17,851  $ (85) $ 17,766  $ 17,055  $ 711 
Provision (benefit) for credit losses on available for sale debt securities (700) 270  (970) (700) 801  (1,501)
Provision for credit losses 17,066  18,121  (1,055) 17,066  17,856  (790)
Provision (benefit) for credit losses on unfunded commitments 642  1,594  (952) 642  48  594 
Total provision for credit losses $ 17,708  $ 19,715  $ (2,007) $ 17,708  $ 17,904  $ (196)
The provision for credit losses on loans and leases in Q3 2024 was $17.8 million, compared to $17.9 million in Q2 2024. The lower provision in Q3 2024 was primarily due to slight improvements in macroeconomic forecasts.
The provision for credit losses on available for sale investment securities in Q3 2024 was a benefit to provision of $0.7 million, compared to provision of $0.3 million in Q2 2024.
7

The provision for credit losses on loans and leases in Q3 2024 was $17.8 million, compared to $17.1 million in Q3 2023. The higher provision in Q3 2024 compared to the year ago period was primarily due to higher balances in commercial and industrial loan balances held for investment, partially offset by lower balances in consumer installment loans held for investment.
The provision for credit losses on available for sale investment securities in Q3 2024 was a benefit to provision of $0.7 million compared to provision of $0.8 million in Q3 2023.
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands) September 30, 2024 June 30, 2024 Increase (Decrease) September 30, 2024 September 30, 2023 Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)
 $ 47,326  $ 47,380  $ (54) $ 47,326  $ 29,867  $ 17,459 
Non-performing assets $ 47,326  $ 47,444  $ (118) $ 47,326  $ 29,970  $ 17,356 
NPLs to total loans and leases
 0.34  % 0.35  % 0.34  % 0.22  %
Reserves to NPLs
 281.36  % 279.52  % 281.36  % 466.11  %
NPAs to total assets 0.22  % 0.23  % 0.22  % 0.14  %
Loans and leases (1) risk ratings:
Commercial loans and leases
Pass $ 10,844,500  $ 10,500,922  $ 343,578  $ 10,844,500  $ 10,503,731  $ 340,769 
Special Mention
178,026  170,014  8,012  178,026  189,329  (11,303)
Substandard
218,921  270,898  (51,977) 218,921  280,267  (61,346)
Total commercial loans and leases 11,241,447  10,941,834  299,613  11,241,447  10,973,327  268,120 
Consumer loans
Performing 1,240,581  1,256,816  (16,235) 1,240,581  1,473,493  (232,912)
Non-performing 14,787  17,270  (2,483) 14,787  16,665  (1,878)
Total consumer loans 1,255,368  1,274,086  (18,718) 1,255,368  1,490,158  (234,790)
Loans and leases receivable (1)
 $ 12,496,815  $ 12,215,920  $ 280,895  $ 12,496,815  $ 12,463,485  $ 33,330 
(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 September 30, 2024 were less than 4% of total assets and approximately 5% of total loans and leases held for investment, and were supported by an allowance for credit losses of $50.1 million. At September 30, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 746, average debt-to-income of 20% and average borrower income of $101 thousand.
Non-performing loans at September 30, 2024 decreased to 0.34% of total loans and leases, compared to 0.35% at June 30, 2024 and increased, compared to 0.22% at September 30, 2023.
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.
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The following table presents the composition of the investment securities portfolio as of the dates indicated:
(Dollars in thousands) September 30, 2024 June 30, 2024 September 30, 2023
Debt securities, available for sale $ 2,377,733  $ 2,477,758  $ 2,746,729 
Equity securities 34,336  33,892  26,478 
Investment securities, at fair value 2,412,069  2,511,650  2,773,207 
Debt securities, held to maturity 1,064,437  962,799  1,178,370 
Total investment securities portfolio $ 3,476,506  $ 3,474,449  $ 3,951,577 
Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At September 30, 2024, the AFS debt securities portfolio had a spot yield of 5.23%, an effective duration of approximately 2.0 years, and approximately 30% are variable rate. Additionally, 63% of the AFS securities portfolio was AAA rated at September 30, 2024.
At September 30, 2024, the HTM debt securities portfolio represented only 5.0% of total assets at September 30, 2024, had a spot yield of 4.31% and an effective duration of approximately 3.5 years. Additionally, at September 30, 2024, approximately 43% of the HTM securities were AAA rated and 51% were credit enhanced asset backed securities with no current expectation of credit losses.
As a part of the sales of consumer installment loans that were classified as held for sale, Customers provided financing to the purchaser for a portion of the sale price in the form of $160.0 million of asset-backed securities, collateralized by the sold loans, which mostly accounted for the increase in HTM debt securities at September 30, 2024 as compared to the prior quarter.
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands) September 30, 2024 % of Total June 30, 2024 % of Total September 30, 2023 % of Total
Demand, non-interest bearing $ 4,670,809  25.9  % $ 4,474,862  25.3  % $ 4,758,682  26.2  %
Demand, interest bearing 5,606,500  31.0  5,894,056  33.4  5,824,410  32.0 
Total demand deposits 10,277,309  56.9  10,368,918  58.7  10,583,092  58.2 
Savings 1,399,968  7.7  1,573,661  8.9  1,118,353  6.1 
Money market 3,961,028  21.9  3,539,815  20.0  2,499,593  13.7 
Time deposits 2,431,084  13.5  2,195,699  12.4  3,994,326  22.0 
Total deposits $ 18,069,389  100.0  % $ 17,678,093  100.0  % $ 18,195,364  100.0  %
Total deposits increased $391.3 million, or 2.2%, to $18.1 billion at September 30, 2024 as compared to the prior quarter. Non-interest bearing demand deposits increased $195.9 million, or 4.4%, to $4.7 billion. Money market deposits increased $421.2 million, or 11.9%, to $4.0 billion and time deposits increased $235.4 million, or 10.7%, to $2.4 billion. These increases were offset by decreases in interest bearing demand deposits of $287.6 million, or 4.9%, to $5.6 billion and savings deposits of $173.7 million, or 11.0%, to $1.4 billion. The total average cost of deposits increased by 6 basis points to 3.46% in Q3 2024 from 3.40% in the prior quarter. Total estimated uninsured deposits were $4.5 billion1, or 25% of total deposits (inclusive of accrued interest) at September 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.
“Our deposit costs increased in the quarter attributable to strong deposit growth in the interest bearing category. We’re extremely excited about the success we’re having in bringing new clients to the bank and the long-term franchise value it will drive outweighing any short-term impacts. With the remix efforts underway and in a declining rate environment we expect to have flexibility lowering interest bearing deposit costs going forward including as these newer relationships season,” stated Jay Sidhu.

1 Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million.
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Total deposits decreased $126.0 million, or 0.7%, to $18.1 billion at September 30, 2024 as compared to a year ago. Time deposits decreased $1.6 billion, or 39.1% to $2.4 billion, interest bearing demand deposits decreased $217.9 million, or 3.7%, to $5.6 billion and non-interest bearing demand deposits decreased $87.9 million, or 1.8%, to $4.7 billion. These decreases were offset by increases in money market deposits of $1.5 billion, or 58.5%, to $4.0 billion and savings deposits of $281.6 million, or 25.2%, to $1.4 billion. The total average cost of deposits increased by 22 basis points to 3.46% in Q3 2024 from 3.24% in the prior year primarily due to higher market interest rates.
Borrowings
The following table presents the composition of our borrowings as of the dates indicated:
(Dollars in thousands) September 30, 2024 June 30, 2024 September 30, 2023
FHLB advances $ 1,117,229  $ 1,018,349  $ 1,529,839 
Senior notes 99,033  123,970  123,775 
Subordinated debt 182,439  182,370  182,161 
Total borrowings $ 1,398,701  $ 1,324,689  $ 1,835,775 
Total borrowings increased $74.0 million, or 5.6%, to $1.4 billion at September 30, 2024 as compared to the prior quarter. This increase primarily resulted from an increase of $80.0 million in FHLB advances, partially offset by repayment of $25.0 million in senior notes upon maturity. As of September 30, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.7 billion, of which $1.1 billion of available capacity was utilized in borrowings and $1.5 billion was utilized to collateralize deposits.
Total borrowings decreased $437.1 million, or 23.8%, to $1.4 billion at September 30, 2024 as compared to a year ago. This decrease primarily resulted from net repayments of $435.0 million in FHLB advances and $25.0 million in senior notes upon maturity.
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
(Dollars in thousands except per share data) September 30, 2024 June 30, 2024 September 30, 2023
Customers Bancorp, Inc.
Common Equity $ 1,663,386  $ 1,609,071  $ 1,423,813 
Tangible Common Equity* $ 1,659,757  $ 1,605,442  $ 1,420,184 
Common Equity to Total Assets 7.8  % 7.7  % 6.5  %
Tangible Common Equity to Tangible Assets* 7.7  % 7.7  % 6.5  %
Book Value per common share $ 53.07  $ 50.81  $ 45.47 
Tangible Book Value per common share* $ 52.96  $ 50.70  $ 45.36 
Common equity Tier 1 (“CET 1”) capital ratio (1)
 12.5  % 12.8  % 11.3  %
Total risk based capital ratio (1)
 15.4  % 15.8  % 14.3  %
(1) Regulatory capital ratios as of September 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 $54.3 million to $1.7 billion, and tangible common equity* increased $54.3 million to $1.7 billion, at September 30, 2024 compared to the prior quarter, respectively, primarily from earnings of $42.9 million and decreased unrealized losses on investment securities of $25.3 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). These increases were offset in part by $18.2 million of common share repurchases in Q3 2024. Similarly, book value per common share increased to $53.07 from $50.81, and tangible book value per common share* increased to $52.96 from $50.70, at September 30, 2024 and June 30, 2024, respectively.
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Customers Bancorp’s common equity increased $239.6 million to $1.7 billion, and tangible common equity* increased $239.6 million to $1.7 billion, at September 30, 2024 compared to a year ago, respectively, primarily from earnings of $201.4 million and decreased unrealized losses on investment securities in AOCI of $43.7 million (net of taxes), offset in part by $18.2 million of common share repurchases. Similarly, book value per common share increased to $53.07 from $45.47, and tangible book value per common share* increased to $52.96 from $45.36, at September 30, 2024 and September 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 12.5%, 15.4%, 7.8%, and 7.7%, respectively, at September 30, 2024.
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At September 30, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 13.6% and 15.1%, respectively.
Key Profitability Trends
Net Interest Income
Net interest income totaled $158.5 million in Q3 2024, a decrease of $9.1 million from Q2 2024. This decrease was due to lower interest income of $1.9 million primarily due to lower interest income from loans in specialized lending, lower consumer installment loans and higher interest expense of $7.2 million due to higher costs of deposits and other borrowings.
“Net interest income and net interest margin declined in the quarter impacted by higher discount accretion and prepayment income that were benefits in Q2 2024 and did not repeat at the same levels in Q3 2024, as well as initiatives that were proactive risk management strategies including the $200.8 million consumer installment loan sale in Q3 2024 resulting in lower average balances and the well-timed securities portfolio repositioning completed in Q2 2024. These factors accounted for over 80% of the decline in reported net interest margin. Robust loan growth and accretive deposit remix remain as positive drivers that we expect to help increase net interest income and net interest margin in 2025,” stated Customers Bancorp President Sam Sidhu. “These positive drivers are bolstered by the recent team additions. Our new commercial deposit-focused banking teams have substantial momentum and it is clear we have the bankers, products and balance sheet strength to deliver for our new and existing clients. We continue to believe the overwhelming majority of client prospects will become Customers Bank clients in the near future,” stated Sam Sidhu.
Net interest income totaled $158.5 million in Q3 2024, a decrease of $41.2 million from Q3 2023. This decrease was due to lower interest income in specialized lending primarily due to approximately $27.0 million of interest income attributable to outsized discount accretion recognized on the acquired loan portfolio in Q3 2023.
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) September 30, 2024 June 30, 2024 September 30, 2024 September 30, 2023
Commercial lease income $ 10,093  $ 10,282  $ (189) $ 10,093  $ 8,901  $ 1,192 
Loan fees 8,011  5,233  2,778  8,011  6,029  1,982 
Bank-owned life insurance 2,049  2,007  42  2,049  1,973  76 
Mortgage finance transactional fees 1,087  1,058  29  1,087  1,018  69 
Net gain (loss) on sale of loans and leases (14,548) (238) (14,310) (14,548) (348) (14,200)
Net gain (loss) on sale of investment securities —  (719) 719  —  (429) 429 
Unrealized gain on equity method investments —  11,041  (11,041) —  —  — 
Other 1,865  2,373  (508) 1,865  631  1,234 
Total non-interest income $ 8,557  $ 31,037  $ (22,480) $ 8,557  $ 17,775  $ (9,218)
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Reported non-interest income totaled $8.6 million for Q3 2024, a decrease of $22.5 million compared to Q2 2024. The decrease was primarily due to $11.0 million of unrealized gain on equity method investments purchased at a discount in Q2 2024 and $14.3 million of loss on leases of commercial clean vehicles that were accounted for as sales-type leases and included within net gain (loss) on sale of loans and leases. These commercial clean vehicle leases generated the same amount of investment tax credits that were included as a benefit to income tax expense in Q3 2024. These decreases were partially offset by an increase of $2.8 million in loan fees primarily resulting from increased unused line of credit fees.
Non-interest income totaled $8.6 million for Q3 2024, a decrease of $9.2 million compared to Q3 2023. As stated above, the decrease was primarily due to $14.3 million of loss on leases of commercial clean vehicles that were accounted for as sales-type leases and included within net gain (loss) on sale of loans and leases. These commercial clean vehicle leases generated the same amount of investment tax credits that were included as a corresponding benefit to income tax expense in Q3 2024. This decrease was partially offset by increases in commercial lease income of $1.2 million and loan fees of $2.0 million primarily resulting from increased unused line of credit fees.
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) September 30, 2024 June 30, 2024 September 30, 2024 September 30, 2023
Salaries and employee benefits $ 47,717  $ 44,947  $ 2,770  $ 47,717  $ 33,845  $ 13,872 
Technology, communication and bank operations 13,588  16,227  (2,639) 13,588  15,667  (2,079)
Commercial lease depreciation 7,811  7,829  (18) 7,811  7,338  473 
Professional services 9,048  6,104  2,944  9,048  8,569  479 
Loan servicing 3,778  3,516  262  3,778  3,858  (80)
Occupancy 2,987  3,120  (133) 2,987  2,471  516 
FDIC assessments, non-income taxes and regulatory fees 7,902  10,236  (2,334) 7,902  8,551  (649)
Advertising and promotion 908  1,254  (346) 908  650  258 
Legal settlement expense —  —  —  —  4,096  (4,096)
Other 10,279  10,219  60  10,279  4,421  5,858 
Total non-interest expense $ 104,018  $ 103,452  $ 566  $ 104,018  $ 89,466  $ 14,552 
Non-interest expenses totaled $104.0 million in Q3 2024, an increase of $0.6 million compared to Q2 2024. The increase was primarily attributable to increases of $2.8 million in salaries and employee benefits driven by higher headcount including the full quarter impact of Q2 2024 hires, annual merit increases, incentives partially offset by lower severance and $2.9 million in professional fees, partially offset by lower non-income taxes, software expenditures and processing fees.
“In the quarter we incurred professional services expense of approximately $3.0 million as we made investments to enhance our risk management infrastructure. We expect to spend an additional $3.0-$5.0 million in each of the next two quarters as we seek to build a best-in-class risk management function which we believe can be a competitive advantage for the bank in the future,” stated Sam Sidhu.
Non-interest expenses totaled $104.0 million in Q3 2024, an increase of $14.6 million compared to Q3 2023. The increase was primarily attributable to increases of $13.9 million in salaries and employee benefits primarily due to higher headcount including the addition of new banking teams in Q2 2024, annual merit increases, incentives and severance, fees paid to a fintech company related to consumer installment loans originated and held for sale as a part of the Bank’s held for sale strategy, and provision for operating losses. These increases were partially offset by $4.1 million of expenses from a settlement with a third party PPP service provider in Q3 2023 and a decrease in deposit servicing fees.
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Taxes
Income tax expense decreased by $19.8 million to a benefit of $0.7 million in Q3 2024 from a provision of $19.0 million in Q2 2024 primarily due to lower pre-tax income and higher estimated income tax credits for 2024, including $14.3 million of investment tax credits generated from commercial clean vehicles in Q3 2024. These investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases.
Income tax expense decreased by $24.2 million to a benefit of $0.7 million in Q3 2024 from a provision of $23.5 million in Q3 2023 primarily due to lower pre-tax income and an increase in estimated income tax credits for 2024, including $14.3 million of investment tax credits generated from commercial clean vehicles in Q3 2024. These investment tax credits from commercial clean vehicle leases were the same amount as the loss on leases of commercial clean vehicles included within net gain (loss) on sale of loans and leases. The effective tax rate for Q3 2024 was (1.6)%.
Outlook
“Looking forward, our strategy remains unchanged. We are focused on strengthening our deposit franchise, 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 accelerating and enhancing these efforts which were already well underway. We see attractive opportunities to execute franchise-enhancing loan growth and our pipeline continues to be strong. We remain confident in our ability to deliver 10% - 15% loan growth for the full year. While the interest earning asset repositioning and the hedging we executed impacts our short term margin and will be a headwind in 2024, they will positively impact profitability and earnings in 2025. We expect net interest margin in Q4 2024 to be roughly flattish with Q3 2024. The management of non-interest expenses remains a priority for us. We expect the investments made in recruiting the new commercial banking teams will produce significant benefits by increasing our net interest income and net interest margin as well as improving the overall quality of our deposit franchise. We believe the investments we are making to enhance our risk management infrastructure will pay dividends over the long-term. We previously noted an $8.0-$10.0 million quarterly investment in the new commercial banking teams in 2024 and now about $3.0-$5.0 million of quarterly professional service expense in enhancing our risk management infrastructure for a few quarters. Looking forward we expect the new teams to breakeven in Q1 2025 and payoff throughout 2025 as well as a sunsetting of the additional professional services costs. We would also note that we had an $11.0 million unrealized gain on equity method investments purchased at a discount in Q2 2024 which helped offset some of these investment related expenses. While our efficiency ratio will be elevated in the near term as we make these investments in our future, we remain fundamentally focused on positive operating leverage and working to 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 18% - 20% primarily as a result of higher estimated investment tax credits in 2024. We remain committed to maintaining CET 1 ratio and TCE / TA ratio* targets of 11.5% and 7.5%, respectively 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.
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Webcast
Date:            Friday, November 1, 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 3rd Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Head of Corporate Communications, Jordan Baucum at jbaucum@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 over $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 potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and escalating conflict in the Middle East, which could impact economic conditions in the United States; 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 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.
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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.
15

Q3 2024 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended September 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)
 Q3 Q2 Q1 Q4 Q3 Nine Months Ended September 30,
2024 2024 2024 2023 2023 2024 2023
GAAP Profitability Metrics:
Net income available to common shareholders
 $ 42,937  $ 54,300  $ 45,926  $ 58,223  $ 82,953  $ 143,163  $ 177,225 
Per share amounts:
Earnings per share - basic
 $ 1.36  $ 1.72  $ 1.46  $ 1.86  $ 2.65  $ 4.54  $ 5.63 
Earnings per share - diluted $ 1.31  $ 1.66  $ 1.40  $ 1.79  $ 2.58  $ 4.37  $ 5.53 
Book value per common share (1)
 $ 53.07  $ 50.81  $ 49.29  $ 47.73  $ 45.47  $ 53.07  $ 45.47 
CUBI stock price (1)
 $ 46.45  $ 47.98  $ 53.06  $ 57.62  $ 34.45  $ 46.45  $ 34.45 
CUBI stock price as % of book value (1)
 88  % 94  % 108  % 121  % 76  % 88  % 76  %
Average shares outstanding - basic 31,567,797  31,649,715  31,473,424  31,385,043  31,290,581  31,563,660  31,452,700 
Average shares outstanding - diluted 32,766,488  32,699,149  32,854,534  32,521,787  32,175,084  32,773,365  32,036,459 
Shares outstanding (1)
 31,342,107  31,667,655  31,521,931  31,440,906  31,311,254  31,342,107  31,311,254 
Return on average assets (“ROAA”)
 0.88  % 1.11  % 0.94  % 1.16  % 1.57  % 0.97  % 1.17  %
Return on average common equity (“ROCE”)
 10.44  % 13.85  % 12.08  % 15.93  % 23.97  % 12.10  % 17.84  %
Net interest margin, tax equivalent 3.06  % 3.29  % 3.10  % 3.31  % 3.70  % 3.16  % 3.28  %
Efficiency ratio 62.40  % 51.87  % 54.58  % 49.08  % 41.01  % 55.97  % 45.62  %
Non-GAAP Profitability Metrics (2):
Core earnings $ 43,838  $ 48,567  $ 46,532  $ 61,633  $ 83,294  $ 138,937  $ 186,600 
Core pre-tax pre-provision net income
 $ 64,824  $ 89,220  $ 83,674  $ 101,884  $ 128,564  $ 237,718  $ 314,679 
Per share amounts:
Core earnings per share - diluted $ 1.34  $ 1.49  $ 1.42  $ 1.90  $ 2.59  $ 4.24  $ 5.82 
Tangible book value per common share (1)
 $ 52.96  $ 50.70  $ 49.18  $ 47.61  $ 45.36  $ 52.96  $ 45.36 
CUBI stock price as % of tangible book value (1)
 88  % 95  % 108  % 121  % 76  % 88  % 76  %
Core ROAA 0.89  % 1.00  % 0.95  % 1.22  % 1.57  % 0.95  % 1.22  %
Core ROCE 10.66  % 12.39  % 12.24  % 16.87  % 24.06  % 11.74  % 18.79  %
Core pre-tax pre-provision ROAA
 1.21  % 1.71  % 1.58  % 1.90  % 2.32  % 1.50  % 1.95  %
Core pre-tax pre-provision ROCE
 14.84  % 21.79  % 21.01  % 26.82  % 36.04  % 19.12  % 30.59  %
Core efficiency ratio 61.69  % 53.47  % 54.24  % 46.70  % 41.04  % 56.29  % 45.03  %
Asset Quality:
Net charge-offs $ 17,044  $ 18,711  $ 17,968  $ 17,322  $ 17,498  $ 53,723  $ 51,713 
Annualized net charge-offs to average total loans and leases 0.50  % 0.56  % 0.55  % 0.51  % 0.50  % 0.54  % 0.47  %
Non-performing loans (“NPLs”) to total loans and leases (1)
 0.34  % 0.35  % 0.27  % 0.21  % 0.22  % 0.34  % 0.22  %
Reserves to NPLs (1)
 281.36  % 279.52  % 373.86  % 499.12  % 466.11  % 281.36  % 466.11  %
Non-performing assets (“NPAs”) to total assets
 0.22  % 0.23  % 0.17  % 0.13  % 0.14  % 0.22  % 0.14  %
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets 13.6  % 14.17  % 14.16  % 13.77  % 12.97  % 13.6  % 12.97  %
Tier 1 capital to risk-weighted assets 13.6  % 14.17  % 14.16  % 13.77  % 12.97  % 13.6  % 12.97  %
Total capital to risk-weighted assets 15.1  % 15.64  % 15.82  % 15.28  % 14.45  % 15.1  % 14.45  %
Tier 1 capital to average assets (leverage ratio) 9.1  % 9.16  % 8.82  % 8.71  % 8.25  % 9.1  % 8.25  %
(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 Q3 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 September 30, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.

16

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data) Nine Months Ended
Q3 Q2 Q1 Q4 Q3 September 30,
2024 2024 2024 2023 2023 2024 2023
Interest income:
Loans and leases $ 228,659  $ 224,265  $ 217,999  $ 239,453  $ 271,107  $ 670,923  $ 757,064 
Investment securities 46,265  47,586  46,802  51,074  54,243  140,653  149,585 
Interest earning deposits 44,372  45,506  52,817  44,104  43,800  142,695  81,819 
Loans held for sale 10,907  13,671  12,048  8,707  4,664  36,626  27,514 
Other 1,910  3,010  2,111  2,577  2,526  7,031  5,463 
Total interest income 332,113  334,038  331,777  345,915  376,340  997,928  1,021,445 
Interest expense:
Deposits 155,829  148,784  153,725  150,307  145,825  458,338  426,130 
FHLB advances 12,590  13,437  13,485  18,868  26,485  39,512  61,140 
FRB advances —  —  —  —  —  —  6,286 
Subordinated debt 3,537  2,734  2,689  2,688  2,689  8,960  8,067 
Other borrowings 1,612  1,430  1,493  1,546  1,568  4,535  4,879 
Total interest expense 173,568  166,385  171,392  173,409  176,567  511,345  506,502 
Net interest income 158,545  167,653  160,385  172,506  199,773  486,583  514,943 
Provision for credit losses 17,066  18,121  17,070  13,523  17,856  52,257  61,088 
Net interest income after provision for credit losses 141,479  149,532  143,315  158,983  181,917  434,326  453,855 
Non-interest income:
Commercial lease income 10,093  10,282  9,683  9,035  8,901  30,058  27,144 
Loan fees 8,011  5,233  5,280  5,926  6,029  18,524  14,290 
Bank-owned life insurance 2,049  2,007  3,261  2,160  1,973  7,317  9,617 
Mortgage finance transactional fees 1,087  1,058  946  927  1,018  3,091  3,468 
Net gain (loss) on sale of loans and leases (14,548) (238) 10  (91) (348) (14,776) (1,109)
Loss on sale of capital call lines of credit —  —  —  —  —  —  (5,037)
Net gain (loss) on sale of investment securities —  (719) (30) (145) (429) (749) (429)
Unrealized gain on equity method investments —  11,041  —  —  —  11,041  — 
Other 1,865  2,373  2,081  860  631  6,319  3,949 
Total non-interest income 8,557  31,037  21,231  18,672  17,775  60,825  51,893 
Non-interest expense:
Salaries and employee benefits 47,717  44,947  36,025  33,965  33,845  128,689  99,310 
Technology, communication and bank operations 13,588  16,227  21,904  16,887  15,667  51,719  48,663 
Commercial lease depreciation 7,811  7,829  7,970  7,357  7,338  23,610  22,541 
Professional services 9,048  6,104  6,353  9,820  8,569  21,505  25,357 
Loan servicing 3,778  3,516  4,031  3,779  3,858  11,325  13,296 
Occupancy 2,987  3,120  2,347  2,320  2,471  8,454  7,750 
FDIC assessments, non-income taxes and regulatory fees 7,902  10,236  13,469  13,977  8,551  31,607  21,059 
Advertising and promotion 908  1,254  682  850  650  2,844  2,245 
Legal settlement expense —  —  —  —  4,096  —  4,096 
Other 10,279  10,219  6,388  4,812  4,421  26,886  14,579 
Total non-interest expense 104,018  103,452  99,169  93,767  89,466  306,639  258,896 
Income before income tax expense (benefit) 46,018  77,117  65,377  83,888  110,226  188,512  246,852 
Income tax expense (benefit) (725) 19,032  15,651  21,796  23,470  33,958  58,801 
Net income 46,743  58,085  49,726  62,092  86,756  154,554  188,051 
Preferred stock dividends 3,806  3,785  3,800  3,869  3,803  11,391  10,826 
Net income available to common shareholders $ 42,937  $ 54,300  $ 45,926  $ 58,223  $ 82,953  $ 143,163  $ 177,225 
Basic earnings per common share $ 1.36  $ 1.72  $ 1.46  $ 1.86  $ 2.65  $ 4.54  $ 5.63 
Diluted earnings per common share 1.31  1.66  1.40  1.79  2.58  4.37  5.53 
17

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
September 30, June 30, March 31, December 31, September 30,
2024 2024 2024 2023 2023
ASSETS
Cash and due from banks $ 39,429  $ 45,045  $ 51,974  $ 45,210  $ 68,288 
Interest earning deposits 3,048,593  3,003,542  3,649,146  3,801,136  3,351,686 
Cash and cash equivalents 3,088,022  3,048,587  3,701,120  3,846,346  3,419,974 
Investment securities, at fair value 2,412,069  2,511,650  2,604,868  2,405,640  2,773,207 
Investment securities held to maturity 1,064,437  962,799  1,032,037  1,103,170  1,178,370 
Loans held for sale 275,420  375,724  357,640  340,317  150,368 
Loans and leases receivable 12,527,283  12,254,204  11,936,621  11,963,855  12,600,548 
Loans receivable, mortgage finance, at fair value 1,250,413  1,002,711  962,610  897,912  962,566 
Allowance for credit losses on loans and leases (133,158) (132,436) (133,296) (135,311) (139,213)
Total loans and leases receivable, net of allowance for credit losses on loans and leases 13,644,538  13,124,479  12,765,935  12,726,456  13,423,901 
FHLB, Federal Reserve Bank, and other restricted stock 95,035  92,276  100,067  109,548  126,098 
Accrued interest receivable 115,588  112,788  120,123  114,766  123,984 
Bank premises and equipment, net 6,730  7,019  7,253  7,371  7,789 
Bank-owned life insurance 295,531  293,108  293,400  292,193  291,670 
Goodwill and other intangibles 3,629  3,629  3,629  3,629  3,629 
Other assets 455,083  410,916  361,295  366,829  358,162 
Total assets $ 21,456,082  $ 20,942,975  $ 21,347,367  $ 21,316,265  $ 21,857,152 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand, non-interest bearing deposits $ 4,670,809  $ 4,474,862  $ 4,688,880  $ 4,422,494  $ 4,758,682 
Interest bearing deposits 13,398,580  13,203,231  13,272,503  13,497,742  13,436,682 
Total deposits 18,069,389  17,678,093  17,961,383  17,920,236  18,195,364 
FHLB advances 1,117,229  1,018,349  1,195,088  1,203,207  1,529,839 
Other borrowings 99,033  123,970  123,905  123,840  123,775 
Subordinated debt 182,439  182,370  182,300  182,230  182,161 
Accrued interest payable and other liabilities 186,812  193,328  193,074  248,358  264,406 
Total liabilities 19,654,902  19,196,110  19,655,750  19,677,871  20,295,545 
Preferred stock 137,794  137,794  137,794  137,794  137,794 
Common stock 35,734  35,686  35,540  35,459  35,330 
Additional paid in capital 571,609  567,345  567,490  564,538  559,346 
Retained earnings 1,302,745  1,259,808  1,205,508  1,159,582  1,101,359 
Accumulated other comprehensive income (loss), net (106,082) (131,358) (132,305) (136,569) (149,812)
Treasury stock, at cost (140,620) (122,410) (122,410) (122,410) (122,410)
Total shareholders’ equity 1,801,180  1,746,865  1,691,617  1,638,394  1,561,607 
Total liabilities and shareholders’ equity $ 21,456,082  $ 20,942,975  $ 21,347,367  $ 21,316,265  $ 21,857,152 

18

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
September 30, 2024 June 30, 2024 September 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 $ 3,224,940  $ 44,372  5.47% $ 3,325,771  $ 45,506  5.50% $ 3,211,753  $ 43,800  5.41%
Investment securities (1)
 3,706,974  46,265  4.97% 3,732,565  47,586  5.13% 4,240,116  54,243  5.12%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases (2)
 5,805,389  124,667  8.54% 5,446,882  120,977  8.93% 5,717,252  157,671  10.94%
Other commercial & industrial loans (2)(3)
 1,533,057  24,654  6.40% 1,540,191  25,119  6.56% 1,779,778  28,616  6.38%
Mortgage finance loans 1,267,656  17,723  5.56% 1,151,407  15,087  5.27% 1,159,698  16,916  5.79%
Multifamily loans 2,071,340  21,147  4.06% 2,108,835  21,461  4.09% 2,141,384  21,292  3.94%
Non-owner occupied commercial real estate loans 1,411,533  21,065  5.94% 1,396,771  20,470  5.89% 1,425,831  21,208  5.90%
Residential mortgages 525,285  6,082  4.61% 520,791  5,955  4.60% 528,022  5,965  4.48%
Installment loans 1,029,812  24,228  9.36% 1,186,486  28,867  9.79% 1,147,069  24,103  8.34%
Total loans and leases (4)
 13,644,072  239,566  6.99% 13,351,363  237,936  7.17% 13,899,034  275,771  7.87%
Other interest-earning assets 118,914  1,910  6.39% 110,585  3,010  10.95% 134,416  2,526  7.45%
Total interest-earning assets 20,694,900  332,113  6.39% 20,520,284  334,038  6.54% 21,485,319  376,340  6.96%
Non-interest-earning assets 535,504  464,919  492,691 
Total assets $ 21,230,404  $ 20,985,203  $ 21,978,010 
Liabilities
Interest checking accounts $ 5,787,026  $ 65,554  4.51% $ 5,719,698  $ 64,047  4.50% $ 5,758,215  $ 58,637  4.04%
Money market deposit accounts 3,676,994  42,128  4.56% 3,346,718  38,167  4.59% 2,181,184  22,983  4.18%
Other savings accounts 1,563,970  18,426  4.69% 1,810,375  21,183  4.71% 1,077,298  11,582  4.27%
Certificates of deposit 2,339,937  29,721  5.05% 2,034,605  25,387  5.02% 4,466,522  52,623  4.67%
Total interest-bearing deposits (5)
 13,367,927  155,829  4.64% 12,911,396  148,784  4.63% 13,483,219  145,825  4.29%
Borrowings 1,334,905  17,739  5.29% 1,454,010  17,601  4.87% 2,328,955  30,742  5.24%
Total interest-bearing liabilities 14,702,832  173,568  4.70% 14,365,406  166,385  4.66% 15,812,174  176,567  4.43%
Non-interest-bearing deposits (5)
 4,557,815  4,701,695  4,347,977 
Total deposits and borrowings 19,260,647  3.59% 19,067,101  3.51% 20,160,151  3.48%
Other non-interest-bearing liabilities 195,722  203,714  306,822 
Total liabilities 19,456,369  19,270,815  20,466,973 
Shareholders’ equity 1,774,035  1,714,388  1,511,037 
Total liabilities and shareholders’ equity $ 21,230,404  $ 20,985,203  $ 21,978,010 
Net interest income 158,545  167,653  199,773 
Tax-equivalent adjustment 392  393  405 
Net interest earnings $ 158,937  $ 168,046  $ 200,178 
Interest spread 2.80% 3.03% 3.48%
Net interest margin 3.05% 3.28% 3.70%
Net interest margin tax equivalent (6)
 3.06% 3.29% 3.70%
(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 3.46%, 3.40% and 3.24% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, presented to approximate interest income as a taxable asset.
19

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
Nine Months Ended
September 30, 2024 September 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 $ 3,471,011  $ 142,695  5.49% $ 2,100,435  $ 81,819  5.21%
Investment securities (1)
 3,736,770  140,653  5.03% 4,074,464  149,585  4.90%
Loans and leases:
Commercial & industrial:
Specialized lending loans and leases (2)
 5,507,963  361,234  8.76% 5,748,053  383,138  8.91%
Other commercial & industrial loans (2)(3)
 1,575,815  76,487  6.48% 2,081,688  105,398  6.77%
Mortgage finance loans 1,151,173  45,640  5.30% 1,240,403  53,934  5.81%
Multifamily loans 2,100,501  63,863  4.06% 2,176,294  62,857  3.86%
Non-owner occupied commercial real estate loans 1,385,685  61,714  5.95% 1,434,459  61,284  5.71%
Residential mortgages 522,876  17,745  4.53% 535,502  17,298  4.32%
Installment loans 1,131,633  80,866  9.55% 1,517,632  100,669  8.87%
Total loans and leases (4)
 13,375,646  707,549  7.07% 14,734,031  784,578  7.12%
Other interest-earning assets 112,365  7,031  8.36% 119,187  5,463  6.13%
Total interest-earning assets 20,695,792  997,928  6.44% 21,028,117  1,021,445  6.49%
Non-interest-earning assets 487,991  537,160 
Total assets $ 21,183,783  $ 21,565,277 
Liabilities
Interest checking accounts $ 5,682,240  $ 191,132  4.49% $ 6,181,097  $ 178,984  3.87%
Money market deposit accounts 3,419,880  117,106  4.57% 2,208,853  63,444  3.84%
Other savings accounts 1,708,625  61,008  4.77% 966,539  27,707  3.83%
Certificates of deposit 2,374,982  89,092  5.01% 4,663,548  155,995  4.47%
Total interest-bearing deposits (5)
 13,185,727  458,338  4.64% 14,020,037  426,130  4.06%
Federal funds purchased —  —  —% 5,055  188  4.97%
Borrowings 1,431,520  53,007  4.95% 2,160,332  80,184  4.96%
Total interest-bearing liabilities 14,617,247  511,345  4.67% 16,185,424  506,502  4.18%
Non-interest-bearing deposits (5)
 4,626,580  3,642,832 
Total deposits and borrowings 19,243,827  3.55% 19,828,256  3.42%
Other non-interest-bearing liabilities 221,278  271,387 
Total liabilities 19,465,105  20,099,643 
Shareholders’ equity 1,718,678  1,465,634 
Total liabilities and shareholders’ equity $ 21,183,783  $ 21,565,277 
Net interest income 486,583  514,943 
Tax-equivalent adjustment 1,179  1,170 
Net interest earnings $ 487,762  $ 516,113 
Interest spread 2.89% 3.08%
Net interest margin 3.15% 3.27%
Net interest margin tax equivalent (6)
 3.16% 3.28%
(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 3.44% and 3.23% for the nine months ended September 30, 2024 and 2023, respectively.
(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the nine months ended September 30, 2024 and 2023, presented to approximate interest income as a taxable asset.
20

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
September 30, June 30, March 31, December 31, September 30,
2024 2024 2024 2023 2023
Loans and leases held for investment
Commercial:
Commercial & industrial:
Specialized lending $ 5,468,507  $ 5,528,745  $ 5,104,405  $ 5,006,693  $ 5,422,161 
Other commercial & industrial (1)
 1,087,222  1,092,146  1,113,517  1,162,317  1,252,427 
Mortgage finance
 1,367,617  1,122,812  1,071,146  1,014,742  1,042,549 
Multifamily 2,115,978  2,067,332  2,123,675  2,138,622  2,130,213 
Commercial real estate owner occupied 981,904  805,779  806,278  797,319  794,815 
Commercial real estate non-owner occupied 1,326,591  1,202,606  1,182,084  1,177,650  1,178,203 
Construction 174,509  163,409  185,601  166,393  252,588 
Total commercial loans and leases 12,522,328  11,982,829  11,586,706  11,463,736  12,072,956 
Consumer:
Residential 500,786  481,503  482,537  484,435  483,133 
Manufactured housing 34,481  35,901  37,382  38,670  40,129 
Installment:
Personal 453,739  474,481  492,892  555,533  629,843 
Other 266,362  282,201  299,714  319,393  337,053 
Total installment loans 720,101  756,682  792,606  874,926  966,896 
Total consumer loans 1,255,368  1,274,086  1,312,525  1,398,031  1,490,158 
Total loans and leases held for investment $ 13,777,696  $ 13,256,915  $ 12,899,231  $ 12,861,767  $ 13,563,114 
Loans held for sale
Residential $ 2,523  $ 2,684  $ 870  $ 1,215  $ 1,005 
Installment:
Personal 55,799  125,598  137,755  151,040  124,848 
Other 217,098  247,442  219,015  188,062  24,515 
Total installment loans 272,897  373,040  356,770  339,102  149,363 
Total loans held for sale $ 275,420  $ 375,724  $ 357,640  $ 340,317  $ 150,368 
Total loans and leases portfolio $ 14,053,116  $ 13,632,639  $ 13,256,871  $ 13,202,084  $ 13,713,482 
(1)    Includes PPP loans.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
September 30, June 30, March 31, December 31, September 30,
2024 2024 2024 2023 2023
Demand, non-interest bearing $ 4,670,809  $ 4,474,862  $ 4,688,880  $ 4,422,494  $ 4,758,682 
Demand, interest bearing 5,606,500  5,894,056  5,661,775  5,580,527  5,824,410 
Total demand deposits 10,277,309  10,368,918  10,350,655  10,003,021  10,583,092 
Savings 1,399,968  1,573,661  2,080,374  1,402,941  1,118,353 
Money market 3,961,028  3,539,815  3,347,843  3,226,395  2,499,593 
Time deposits 2,431,084  2,195,699  2,182,511  3,287,879  3,994,326 
Total deposits $ 18,069,389  $ 17,678,093  $ 17,961,383  $ 17,920,236  $ 18,195,364 

21



CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of September 30, 2024 As of June 30, 2024 As of September 30, 2023
Loan type Total loans Allowance for credit losses Total reserves to total loans Total loans Allowance for credit losses Total reserves to total loans Total loans Allowance for credit losses Total reserves to total loans
Commercial:
Commercial & industrial, including specialized lending (1)
 $ 6,672,933  $ 25,191  0.38  % $ 6,740,992  $ 23,721  0.35  % $ 6,754,571  $ 24,986  0.37  %
Multifamily 2,115,978  18,090  0.85  % 2,067,332  20,652  1.00  % 2,130,213  15,870  0.74  %
Commercial real estate owner occupied 981,904  10,913  1.11  % 805,779  8,431  1.05  % 794,815  10,363  1.30  %
Commercial real estate non-owner occupied 1,326,591  17,303  1.30  % 1,202,606  17,966  1.49  % 1,178,203  15,819  1.34  %
Construction 174,509  1,606  0.92  % 163,409  1,856  1.14  % 252,588  3,130  1.24  %
Total commercial loans and leases receivable 11,271,915  73,103  0.65  % 10,980,118  72,626  0.66  % 11,110,390  70,168  0.63  %
Consumer:
Residential 500,786  5,838  1.17  % 481,503  5,884  1.22  % 483,133  6,802  1.41  %
Manufactured housing 34,481  4,080  11.83  % 35,901  4,094  11.40  % 40,129  4,080  10.17  %
Installment 720,101  50,137  6.96  % 756,682  49,832  6.59  % 966,896  58,163  6.02  %
Total consumer loans receivable 1,255,368  60,055  4.78  % 1,274,086  59,810  4.69  % 1,490,158  69,045  4.63  %
Loans and leases receivable held for investment
 12,527,283  133,158  1.06  % 12,254,204  132,436  1.08  % 12,600,548  139,213  1.10  %
Loans receivable, mortgage finance, at fair value 1,250,413  —  —  % 1,002,711  —  —  % 962,566  —  —  %
Loans held for sale 275,420  —  —  % 375,724  —  —  % 150,368  —  —  %
Total loans and leases portfolio $ 14,053,116  $ 133,158  0.95  % $ 13,632,639  $ 132,436  0.97  % $ 13,713,482  $ 139,213  1.02  %
(1)    Includes PPP loans.
22


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)
As of September 30, 2024 As of June 30, 2024 As of September 30, 2023
Loan type Non accrual /NPLs Total NPLs to total loans Total reserves to total NPLs Non accrual /NPLs Total NPLs to total loans Total reserves to total NPLs Non accrual /NPLs Total NPLs to total loans Total reserves to total NPLs
Commercial:
Commercial & industrial, including specialized lending (1)
 $ 4,615  0.07  % 545.85  % $ 5,488  0.08  % 432.23  % $ 5,767  0.09  % 433.26  %
Multifamily 11,834  0.56  % 152.86  % 14,002  0.68  % 147.49  % —  —  % —  %
Commercial real estate owner occupied 8,613  0.88  % 126.70  % 9,612  1.19  % 87.71  % 7,442  0.94  % 139.25  %
Commercial real estate non-owner occupied 763  0.06  % 2267.76  % 62  0.01  % 28977.42  % —  —  % —  %
Construction —  —  % —  % —  —  % —  % —  —  % —  %
Total commercial loans and leases receivable 25,825  0.23  % 283.07  % 29,164  0.27  % 249.03  % 13,209  0.12  % 531.21  %
Consumer:
Residential 7,997  1.60  % 73.00  % 8,179  1.70  % 71.94  % 6,559  1.36  % 103.70  %
Manufactured housing 1,869  5.42  % 218.30  % 2,047  5.70  % 200.00  % 2,582  6.43  % 158.02  %
Installment 6,328  0.88  % 792.30  % 5,614  0.74  % 887.64  % 7,299  0.75  % 796.86  %
Total consumer loans receivable 16,194  1.29  % 370.85  % 15,840  1.24  % 377.59  % 16,440  1.10  % 419.98  %
Loans and leases receivable 42,019  0.34  % 316.90  % 45,004  0.37  % 294.28  % 29,649  0.24  % 469.54  %
Loans receivable, mortgage finance, at fair value —  —  % —  % —  —  % —  % —  —  % —  %
Loans held for sale 5,307  1.93  % —  % 2,376  0.63  % —  % 218  0.14  % —  %
Total loans and leases portfolio $ 47,326  0.34  % 281.36  % $ 47,380  0.35  % 279.52  % $ 29,867  0.22  % 466.11  %
(1)    Includes PPP loans.
23


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
Q3 Q2 Q1 Q4 Q3 Nine Months Ended September 30,
2024
2024
2024
2023
2023
 2024 2023
Loan type
Commercial & industrial, including specialized lending $ 5,056  $ 5,665  $ 3,672  $ 5,282  $ 2,974  $ 14,393  $ 3,161 
Multifamily 2,167  1,433  473  127  1,999  4,073  3,447 
Commercial real estate owner occupied 4  —  22  —  39  26  5 
Commercial real estate non-owner occupied —  —  —  (288) —  —  4,500 
Construction (3) (7) —  —  —  (10) (116)
Residential (21) (20) 18  (1) 13  (23) 35 
Installment 9,841  11,640  13,783  12,202  12,473  35,264  40,681 
Total net charge-offs (recoveries) from loans held for investment $ 17,044  $ 18,711  $ 17,968  $ 17,322  $ 17,498  $ 53,723  $ 51,713 
24


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
Nine Months Ended
September 30,
Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 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 $ 42,937  $ 1.31  $ 54,300  $ 1.66  $ 45,926  $ 1.40  $ 58,223  $ 1.79  $ 82,953  $ 2.58  $ 143,163  $ 4.37  $ 177,225  $ 5.53 
Reconciling items (after tax):
Severance expense 540  0.02  1,928  0.06  —  —  473  0.01  —  —  2,468  0.08  778  0.02 
Impairments on fixed assets and leases —  —  —  —  —  —  —  —  —  —  —  —  98  0.00 
Loss on sale of capital call lines of credit —  —  —  —  —  —  —  —  —  —  —  —  3,914  0.12 
(Gains) losses on investment securities (322) (0.01) 561  0.02  57  0.00  (85) 0.00  492  0.02  296  0.01  492  0.02 
Derivative credit valuation adjustment 185  0.01  (44) 0.00  169  0.01  267  0.01  (151) 0.00  310  0.01  (48) 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  —  —  518  0.02  —  — 
Unrealized (gain) on equity method investments —  —  (8,316) (0.25) —  —  —  —  —  —  (8,316) (0.25) —  — 
Unrealized losses on loans held for sale 498  0.02  —  —  —  —  —  —  —  —  498  0.02  —  — 
Core earnings $ 43,838  $ 1.34  $ 48,567  $ 1.49  $ 46,532  $ 1.42  $ 61,633  $ 1.90  $ 83,294  $ 2.59  $ 138,937  $ 4.24  $ 186,600  $ 5.82 
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  —  — 
Non-income taxes prior to 2024 (2,457) (0.07) —  —  —  —  —  —  —  —  (2,457) (0.07) —  — 
Total one-time non-interest expense items (2,457) (0.07) —  —  8,605  0.26  —  —  —  —  6,148  0.19  —  — 
Adjusted core earnings (adjusted for one-time non-interest expense items) $ 41,381  $ 1.26  $ 48,567  $ 1.49  $ 55,137  $ 1.68  $ 61,633  $ 1.90  $ 83,294  $ 2.59  $ 145,085  $ 4.43  $ 186,600  $ 5.82 



25


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
Nine Months Ended
September 30,
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 2024 2023
GAAP net income $ 46,743  $ 58,085  $ 49,726  $ 62,092  $ 86,756  $ 154,554  $ 188,051 
Reconciling items (after tax):
Severance expense 540  1,928  —  473  —  2,468  778 
Impairments on fixed assets and leases —  —  —  —  —  —  98 
Loss on sale of capital call lines of credit —  —  —  —  —  —  3,914 
(Gains) losses on investment securities (322) 561  57  (85) 492  296  492 
Derivative credit valuation adjustment 185  (44) 169  267  (151) 310  (48)
Tax on surrender of bank-owned life insurance policies —  —  —  —  —  —  4,141 
FDIC special assessment —  138  380  2,755  —  518  — 
Unrealized (gain) on equity method investments —  (8,316) —  —  —  (8,316) — 
Unrealized losses on loans held for sale 498  —  —  —  —  498  — 
Core net income
 $ 47,644  $ 52,352  $ 50,332  $ 65,502  $ 87,097  $ 150,328  $ 197,426 
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  — 
Non-income taxes prior to 2024 (2,457) —  —  —  —  (2,457) — 
Total one-time non-interest expense items (2,457) —  8,605  —  —  6,148  — 
Adjusted core net income (adjusted for one-time non-interest expense items)
 $ 45,187  $ 52,352  $ 58,937  $ 65,502  $ 87,097  $ 156,476  $ 197,426 
Average total assets
 $ 21,230,404  $ 20,985,203  $ 21,335,229  $ 21,252,273  $ 21,978,010  $ 21,183,783  $ 21,565,277 
Core return on average assets 0.89  % 1.00  % 0.95  % 1.22  % 1.57  % 0.95  % 1.22  %
Adjusted core return on average assets (adjusted for one-time non-interest expense items)
 0.85  % 1.00  % 1.11  % 1.22  % 1.57  % 0.99  % 1.22  %





26


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
Nine Months Ended
September 30,
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 2024 2023
GAAP net income $ 46,743  $ 58,085  $ 49,726  $ 62,092  $ 86,756  $ 154,554  $ 188,051 
Reconciling items:
Income tax expense (benefit)
 (725) 19,032  15,651  21,796  23,470  33,958  58,801 
Provision (benefit) for credit losses
 17,066  18,121  17,070  13,523  17,856  52,257  61,088 
Provision (benefit) for credit losses on unfunded commitments 642  1,594  430  (136) 48  2,666  24 
Severance expense 659  2,560  —  639  —  3,219  991 
Impairments on fixed assets and leases —  —  —  —  —  —  124 
Loss on sale of capital call lines of credit —  —  —  —  —  —  5,037 
(Gains) losses on investment securities (394) 744  75  (114) 626  425  626 
Derivative credit valuation adjustment 226  (58) 222  361  (192) 390  (63)
FDIC special assessment —  183  500  3,723  —  683  — 
Unrealized (gain) on equity method investments —  (11,041) —  —  —  (11,041) — 
Unrealized losses on loans held for sale 607  —  —  —  —  607  — 
Core pre-tax pre-provision net income
 $ 64,824  $ 89,220  $ 83,674  $ 101,884  $ 128,564  $ 237,718  $ 314,679 
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024 —  —  7,106  —  —  7,106  — 
FDIC premiums prior to 2024 —  —  4,208  —  —  4,208  — 
Non-income taxes prior to 2024 (2,997) —  —  —  —  (2,997) — 
Total one-time non-interest expense items (2,997) —  11,314  —  —  8,317  — 
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)
 $ 61,827  $ 89,220  $ 94,988  $ 101,884  $ 128,564  $ 246,035  $ 314,679 
Average total assets
 $ 21,230,404  $ 20,985,203  $ 21,335,229  $ 21,252,273  $ 21,978,010  $ 21,183,783  $ 21,565,277 
Core pre-tax pre-provision ROAA
 1.21  % 1.71  % 1.58  % 1.90  % 2.32  % 1.50  % 1.95  %
Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)
 1.16  % 1.71  % 1.79  % 1.90  % 2.32  % 1.55  % 1.95  %
27


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
Nine Months Ended
September 30,
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 2024 2023
GAAP net income to common shareholders $ 42,937  $ 54,300  $ 45,926  $ 58,223  $ 82,953  $ 143,163  $ 177,225 
Reconciling items (after tax):
Severance expense 540  1,928  —  473  —  2,468  778 
Impairments on fixed assets and leases —  —  —  —  —  —  98 
Loss on sale of capital call lines of credit —  —  —  —  —  —  3,914 
(Gains) losses on investment securities (322) 561  57  (85) 492  296  492 
Derivative credit valuation adjustment 185  (44) 169  267  (151) 310  (48)
Tax on surrender of bank-owned life insurance policies —  —  —  —  —  —  4,141 
FDIC special assessment —  138  380  2,755  —  518  — 
Unrealized (gain) on equity method investments —  (8,316) —  —  —  (8,316) — 
Unrealized losses on loans held for sale 498  —  —  —  —  498  — 
Core earnings $ 43,838  $ 48,567  $ 46,532  $ 61,633  $ 83,294  $ 138,937  $ 186,600 
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  — 
Non-income taxes prior to 2024 (2,457) —  —  —  —  (2,457) — 
Total one-time non-interest expense items (2,457) —  8,605  —  —  6,148  — 
Adjusted core earnings (adjusted for one-time non-interest expense items)
 $ 41,381  $ 48,567  $ 55,137  $ 61,633  $ 83,294  $ 145,085  $ 186,600 
Average total common shareholders’ equity
$ 1,636,242  $ 1,576,595  $ 1,529,211  $ 1,449,728  $ 1,373,244  $ 1,580,885  $ 1,327,841 
Core return on average common equity 10.66  % 12.39  % 12.24  % 16.87  % 24.06  % 11.74  % 18.79  %
Adjusted core return on average common equity (adjusted for one-time non-interest expense items)
 10.06  % 12.39  % 14.50  % 16.87  % 24.06  % 12.26  % 18.79  %




28


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
Nine Months Ended
September 30,
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 2024 2023
GAAP net income to common shareholders $ 42,937  $ 54,300  $ 45,926  $ 58,223  $ 82,953  $ 143,163  $ 177,225 
Reconciling items:
Income tax expense (benefit)
 (725) 19,032  15,651  21,796  23,470  33,958  58,801 
Provision (benefit) for credit losses
 17,066  18,121  17,070  13,523  17,856  52,257  61,088 
Provision (benefit) for credit losses on unfunded commitments 642  1,594  430  (136) 48  2,666  24 
Severance expense 659  2,560  —  639  —  3,219  991 
Impairments on fixed assets and leases —  —  —  —  —  —  124 
Loss on sale of capital call lines of credit —  —  —  —  —  —  5,037 
(Gains) losses on investment securities (394) 744  75  (114) 626  425  626 
Derivative credit valuation adjustment 226  (58) 222  361  (192) 390  (63)
FDIC special assessment —  183  500  3,723  —  683  — 
Unrealized (gain) on equity method investments —  (11,041) —  —  —  (11,041) — 
Unrealized losses on loans held for sale 607  —  —  —  —  607  — 
Core pre-tax pre-provision net income available to common shareholders
 $ 61,018  $ 85,435  $ 79,874  $ 98,015  $ 124,761  $ 226,327  $ 303,853 
One-time non-interest expense items recorded in 2024 (after-tax):
Deposit servicing fees prior to 2024 —  —  7,106  —  —  7,106  — 
FDIC premiums prior to 2024 —  —  4,208  —  —  4,208  — 
Non-income taxes prior to 2024 (2,997) —  —  —  —  (2,997) — 
Total one-time non-interest expense items (2,997) —  11,314  —  —  8,317  — 
Adjusted core pre-tax pre-provision net income available to common shareholders
 $ 58,021  $ 85,435  $ 91,188  $ 98,015  $ 124,761  $ 234,644  $ 303,853 
Average total common shareholders’ equity
 $ 1,636,242  $ 1,576,595  $ 1,529,211  $ 1,449,728  $ 1,373,244  $ 1,580,885  $ 1,327,841 
Core pre-tax pre-provision ROCE
 14.84  % 21.79  % 21.01  % 26.82  % 36.04  % 19.12  % 30.59  %
Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)
 14.11  % 21.79  % 23.98  % 26.82  % 36.04  % 19.83  % 30.59  %
29


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
Nine Months Ended
September 30,
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 2024 2023
GAAP net interest income $ 158,545  $ 167,653  $ 160,385  $ 172,506  $ 199,773  $ 486,583  $ 514,943 
GAAP non-interest income $ 8,557  $ 31,037  $ 21,231  $ 18,672  $ 17,775  $ 60,825  $ 51,893 
Loss on sale of capital call lines of credit —  —  —  —  —  —  5,037 
(Gains) losses on investment securities (394) 744  75  (114) 626  425  626 
Derivative credit valuation adjustment 226  (58) 222  361  (192) 390  (63)
Unrealized (gain) on equity method investments —  (11,041) —  —  —  (11,041) — 
Unrealized losses on loans held for sale 607  —  —  —  —  607  — 
Core non-interest income 8,996  20,682  21,528  18,919  18,209  51,206  57,493 
Core revenue $ 167,541  $ 188,335  $ 181,913  $ 191,425  $ 217,982  $ 537,789  $ 572,436 
GAAP non-interest expense $ 104,018  $ 103,452  $ 99,169  $ 93,767  $ 89,466  $ 306,639  $ 258,896 
Severance expense (659) (2,560) —  (639) —  (3,219) (991)
Impairments on fixed assets and leases —  —  —  —  —  —  (124)
FDIC special assessment —  (183) (500) (3,723) —  (683) — 
Core non-interest expense $ 103,359  $ 100,709  $ 98,669  $ 89,405  $ 89,466  $ 302,737  $ 257,781 
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) — 
Non-income taxes prior to 2024
 2,997  —  —  —  —  2,997  — 
Total one-time non-interest expense items
 2,997  —  (11,314) —  —  (8,317) — 
Adjusted core non-interest expense
 $ 106,356  $ 100,709  $ 87,355  $ 89,405  $ 89,466  $ 294,420  $ 257,781 
Core efficiency ratio (1)
 61.69  % 53.47  % 54.24  % 46.70  % 41.04  % 56.29  % 45.03  %
Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)
 63.48  % 53.47  % 48.02  % 46.70  % 41.04  % 54.75  % 45.03  %
(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.



30


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
 Nine Months Ended
September 30,
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 2024 2023
GAAP non-interest expense $ 104,018  $ 103,452  $ 99,169  $ 93,767  $ 89,466  $ 306,639  $ 258,896 
Severance expense (659) (2,560) —  (639) —  (3,219) (991)
Impairments on fixed assets and leases —  —  —  —  —  —  (124)
FDIC special assessment —  (183) (500) (3,723) —  (683) — 
Core non-interest expense $ 103,359  $ 100,709  $ 98,669  $ 89,405  $ 89,466  $ 302,737  $ 257,781 
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) — 
Non-income taxes prior to 2024 2,997  —  —  —  —  2,997  — 
Total one-time non-interest expense items 2,997  —  (11,314) —  —  (8,317) — 
Adjusted core non-interest expense
 $ 106,356  $ 100,709  $ 87,355  $ 89,405  $ 89,466  $ 294,420  $ 257,781 
Average total assets
 $ 21,230,404  $ 20,985,203  $ 21,335,229  $ 21,252,273  $ 21,978,010  $ 21,183,783  $ 21,565,277 
Core non-interest expense to average total assets
 1.94  % 1.93  % 1.86  % 1.67  % 1.62  % 1.91  % 1.60  %
Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items)
 1.99  % 1.93  % 1.65  % 1.67  % 1.62  % 1.86  % 1.60  %


Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - Customers Bancorp
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
Total deposits $ 18,069,389  $ 17,678,093  $ 17,961,383  $ 17,920,236  $ 18,195,364 
Reconciling items:
Wholesale CDs 1,585,081  1,545,885  1,809,573  2,970,615  3,713,933 
BMTX student deposits —  —  850  1,157  636,951 
Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits)
 $ 16,484,308  $ 16,132,208  $ 16,150,960  $ 14,948,464  $ 13,844,480 


Tangible Common Equity to Tangible Assets - Customers Bancorp
(Dollars in thousands, except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
GAAP total shareholders’ equity
 $ 1,801,180  $ 1,746,865  $ 1,691,617  $ 1,638,394  $ 1,561,607 
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 $ 1,659,757  $ 1,605,442  $ 1,550,194  $ 1,496,971  $ 1,420,184 
GAAP total assets $ 21,456,082  $ 20,942,975  $ 21,347,367  $ 21,316,265  $ 21,857,152 
Reconciling items:
Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629)
Tangible assets $ 21,452,453  $ 20,939,346  $ 21,343,738  $ 21,312,636  $ 21,853,523 
Tangible common equity to tangible assets 7.7  % 7.7  % 7.3  % 7.0  % 6.5  %



31


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) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023
GAAP total shareholders’ equity
 $ 1,801,180  $ 1,746,865  $ 1,691,617  $ 1,638,394  $ 1,561,607 
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 $ 1,659,757  $ 1,605,442  $ 1,550,194  $ 1,496,971  $ 1,420,184 
Common shares outstanding 31,342,107  31,667,655  31,521,931  31,440,906  31,311,254 
Tangible book value per common share $ 52.96  $ 50.70  $ 49.18  $ 47.61  $ 45.36 
32
EX-99.2 3 q324investorpresentation.htm EX-99.2 q324investorpresentation
Let’s take on tomorrow. Investor Presentation: Q3 2024 October 2024

 
2 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 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 potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and escalating conflict in the Middle East, which could impact economic conditions in the United States; 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 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. Forward-Looking Statements

 
3 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Key Highlights 1. Non-GAAP measure, refer to appendix for reconciliation 2. Selected 2024 proxy peers as disclosed in appendix 3. FY 2018 to FY 2023 4. Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million. Let’s take on tomorrow. Bucking the industry trend with 16% annualized loan growth Robust growth from diversified products across the franchise Net interest income and net interest margin impacted by accretion & prepayments and proactive asset remix Positive business drivers for expansion in the medium-term $1.1 billion of deposit inflows from commercial clients used to paydown $0.7 billion of less strategic deposits Strong momentum continuing into phase II of deposit transformation strategy Robust Loan GrowthAccretive Deposit Remix Net Interest Income & Net Interest Margin (NIM) Core non-interest expense as percent of average assets is top quartile among regional bank peers2 Strategic investments made to enhance talent, technology and risk management Operational Excellence & Strategic Investments CET1 and TCE/TA remain in excess of our targets of ~11.5% and ~7.5% respectively Repurchased 374k shares in the quarter below tangible book value Immediately available liquidity of approximately 183% of uninsured deposits4 NPA ratio remains at low level of 22 bps Net charge-off and special mention and substandard levels declined Tangible book value per share1 approaching $53 with increase of $2.26 in the quarter 15% CAGR over last five years3 Strong Capital & Liquidity Tangible Book Value Growth Maintaining Superior Credit Quality

 
4 © 2024 C USTO M ERS BANC O RP, INC . / 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 BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. What Makes Customers Bank Unique? CULTURE High-Touch and Branch-Lite Model Single Point of Contact Consistent Recruiter of Top Talent Sufficient Scale, Yet Nimble Client Centric Focus Sophisticated Product Offerings Target Top 3-5 National Competitor in Focused Set of Verticals Entrepreneurial Culture Banking Entrepreneurs FOCUS STRATEGY Ranked #1 among banks with $10 billion to $50 billion in assets

 
6 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Q3’24 (vs. Q2’24) Profitability Balance Sheet Credit 3.06% vs. 3.29% NIM $21.5B +2% Total Assets 0.22% -01 bps NPA Ratio $14.1B +3% Total Loans and Leases $47.3M +0% NPLs Financial Highlights Highlights Q3’24 Q3’24 EARNINGS REVIEW Total Deposits $18.1B +2% Reserves to NPLs 281% vs. 280% $1.34 Core EPS1,2 $43.8 M Core Earnings1,2 Core ROCE1,2 10.7% $1.31 Diluted EPS $42.9 M Net Income ROCE 10.4% ROAA 0.88% Core ROAA1,2 0.89% vs. 1.00%vs. 1.11% 1. Excludes pre-tax severance expense of $0.7 million, unrealized losses on loans held for sale of $0.6 million, gain on investment securities of $0.4 million and derivative credit valuation adjustment of $0.2 million. 2. Non-GAAP measure, refer to appendix for reconciliation Core PTPP ROAA1,2 1.21% vs. 1.71%

 
7 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Total Deposits $ billions Continued Execution of Deposit Franchise Transformation Gross deposit inflows from commercial clients2 Average cost of deposits 3.46% ACCRETIVE DEPOSIT REMIX 3.40% $4.8 $5.8 $7.6 $4.4 $5.6 $7.9 $4.7 $5.7 $7.6 $4.5 (25%) $5.9 $7.3 $4.7 (26%) $5.6 $7.8 $18.2 $17.9 $18.0 $17.7 $18.1 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Non-Interest Bearing DDA Interest Bearing DDA Non-DDA Q3’24 Deposit Flows Paydown of commercial & consumer client deposits 11,092 12,568 13,595 13,769 15,383 19,152 10,000 20,000 2019 2020 2021 2022 2023 Q3’24 +39% Commercial Client Deposit Accounts $1.1B $0.4B -$0.7B Net deposit growth New Banking Team Deposits1 $ millions 680 860 169 536 Q1’23 Q1’24 Q2’24 Q3’24 $95 $635 $850 $1,396 +$1,301 Venture Banking Commercial Banking Teams 1. Includes venture banking team hired in Q2’23 and commercial banking teams hired in Q2’24 2. Deposit inflows in Q3’24 less strategic remix +$546

 
8 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Venture Banking: Team Lift-Out Strategy Driving Franchise Value ACCRETIVE DEPOSIT REMIX • Top 3 competitor in venture banking ecosystem • Highly attractive funding channel • Peak balances of $2+ billion in deposits at prior institution Loans: Deposits: Deposits to Loans: $2B+ $1B+ ~2:1+ Q1’22-Q1’23 Q2’23-Q3’24 • Expansion into Venture Banking market • Primarily focused on late- stage and growth portfolio companies • Top 5 competitor in venture banking ecosystem • Significantly increased size of team, portfolio and geographic coverage • Expanded coverage to early- stage portfolio companies Loans: Deposits: Deposits to Loans: $95M $538M ~1:6 Loans: Deposits: Deposits to Loans: $860M $871M ~1:1 Q4’21 Q4’23 Q4’24Q4’22 Q4’25 Q4’24+

 
9 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial Banking: Team Hires On-Track for Continued Success ACCRETIVE DEPOSIT REMIX 30 Apr 31 May 30 Jun 31 Jul 31 Aug 30 Sep 183 537 1,140 1,607 2,723 3,138 Funded Accounts > $50K Accounts < $50K Key Highlights • $2.0+ billion deposit pipeline • Deposit growth of ~$370 million in Q3’24 • Overall cost of deposits of ~2.9% with ~30% non-interest bearing • On track to breakeven by Q1'25 2.8x • 10 highly experienced commercial banking teams • Granular and holistic banking relationships • Peak balances of $10+ billion in deposits at prior institution Loans: Deposits: Deposits to Loans: $536M $180M ~3:1 Deposits to Loans: Loans: Deposits: $2B+ $500M+ Number of Accounts Q2’24-Q3’24 Q1’24 Q4’25Q3’24 ~4:1 Q4’24+

 
10 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Industry Leading Loan Growth of 16% With Contributions Across The Franchise Loans - HFI $ billions $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 $0.7 $5.7 $7.4 Q3’24 $13.6 $12.9 $12.9 $13.3 $13.8 7.87% 7.30% 7.05% 7.17% 6.99% Yield on Loans • Added 175+ new lending relationships • Strong pipelines creating continued opportunity for growth with holistic relationships ROBUST LOAN GROWTH • Total HFI loan growth of $521 million • Top growth verticals included mortgage finance, commercial banking team C&I, CRE1 and equipment finance • Mortgage finance business well-positioned to capitalize on opportunity from lower rates • Market disruption creating unique opportunity to selectively acquire new CRE1 customers with significant deposit balances ‒ CRE1 loans increased by $184 million in Q3 ‒ Growth fully funded by CRE1 vertical-related deposits Loans – HFI Growth QoQ $ billions Corporate & Specialized Banking Community Banking Consumer Installment $346 $212 -$37 Corporate & Specialized Banking Community Banking Consumer Installment HFI 1. Includes multifamily, NOO CRE and construction loans

 
11 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Net Interest Margin in Q3’24 Impacted by Several Items from Q2’24 Net Interest Income $ millions Net Interest Margin (%) 3.06%3.29% Q2’24 Q3’24 $334.0 $332.1 Q2’24 Q3’24 $166.4 $173.6 Q2’24 Q3’24 $167.7 $158.5 Interest Income $ millions Interest Expense $ millions NET INTEREST INCOME & NET INTEREST MARGIN • Over 80% of the reduction in net interest margin in the quarter driven by: − Lower discount accretion and prepayment income − Lower average consumer installment balances and securities repositioning • $2.0+ billion high quality deposit pipeline driving opportunity to remix higher cost deposits and reduce interest expense • Strategic hedging executed in Q2’24 expected to positively impact NII and NIM in 2025 Net Interest Margin 3.29% 3.06% Q2’24 -0.12% Accretion & prepayments -0.07% Proactive asset remix1 -0.04% All other Q3’24 percent 1. Lower average consumer installment balances and securities repositioning

 
12 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. c Meaningful Positive NII and NIM Drivers Going Forward NET INTEREST INCOME & NET INTEREST MARGIN Estimated Net Interest Income Drivers1 Time deposit maturities of $680 million repriced lower by 100-200 bps $1.5-2.5 billion deposit remix repriced lower by 200-250 bps Back book fixed rate loan repricing of $240 million by 100-200 bps Franchise enhancing loan originations Strategic Reduction in Asset Sensitivity in 2024 $30-$62 $7-$14 $6-$8 $2-$5 + ~$45-$90+ $ millions Net interest income upside 1. FY’25 2. Compared to annualized Q3’24 net interest income 7-13%2 Hedging benefit

 
13 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Industry-Leading Efficiency $89 $89 $99 $101 $103 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Core Non-Interest Expense1 $ millions • ~$3 million increase2 in core non-interest expense incurred in Q3’24 from higher compensation and outside services • Outside services expected to be elevated over the next two quarters • Revenues from new banking teams expected to exceed expenses within 12 months of onboarding Core Non-Interest Expense1 / Average Assets percent • CUBI’s core non-interest expense1 as percent of average assets is top quartile among regional bank peers3 1.94% C U BI CUBI (Q3’24) Regional Bank Peers2 (MRQ) 1. Non-GAAP measure, refer to appendix for reconciliation 2. Compared to Q2 2024 core non-interest expense; non-GAAP measure, refer to appendix for reconciliation 3. Selected 2024 proxy peers as disclosed in appendix Top Quartile (1.97%) Median (2.09%) OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS

 
14 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. c OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS $20+ Million Expense initiatives • Technology platform consolidation • IT application rationalization • Strategic realignment • Sign-on guarantee sunsetEx pe ns es Fe es Treasury management fee income from clients using instant payments and other products Total Annual Opportunity 2025 Operational Excellence Initiative Target of $20+ Million Annually Savings Used to Invest in the Franchise

 
15 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Tangible Book Value1 per share Tangible Book Value Approaching $53 Per Share 1. Non-GAAP measure, refer to appendix for reconciliation 2. CAGR from Q4’18 to Q3’24 inclusive of impact of AOCI mark-to-market 3. CAGR from FY’18 to FY’23 4. Selected 2024 proxy peers as disclosed in appendix AOCI $23.32 $26.17 $27.92 $37.21 $38.97 $47.61 2018 2019 2020 2021 2022 2023 Q3’24 $52.96 TANGIBLE BOOK VALUE GROWTH $3.38 $56.34 15%2 • Tangible book value1 increased by $2.26 in Q3’24 (18% annualized) • Tangible book value1 has more than doubled over the last five years3 • 5-year+ CAGR in TBV1 of 15%2 despite AOCI headwinds compared to 5% for regional bank peers4

 
16 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. ` ` 14.3% 15.3% 15.9% 15.8% 15.4% +110 bps Total Risk-Based Capital percent 7. 7% 6.5% 7.0% 7.3% 7.7% +120 bps TCE/TA2,3 percent 1. Capital ratios are estimated pending final regulatory report 2. TCE/TA negatively impacted by 49 bps in Q3’24 due to AOCI 3. Non-GAAP measure, refer to appendix for reconciliation 4. Tangible book value as of Q3’24 Strong Capital Levels Provide Significant Flexibility AOCI 11.3% 12.2% 12.6% 12.8% 12.5% CET1 Risk-Based Capital percent STRONG CAPITAL AND LIQUIDITY • TCE/TA3 up over 120 bps YoY and stable QoQ inclusive of share repurchase and balance sheet growth • Share repurchase of 374k shares at an average price below tangible book value3,4 • After growing CET1 for five quarters, utilized approximately 30 bps of capital for attractive strategic loan growth Q3’23 Q4’23 Q1’24 Q2’24 Q3’241 7.5%+ 11.5%+ 8.2%

 
17 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Liquidity Position with Approximately 183% Coverage of Uninsured Deposits Immediately Available Liquidity $ billions $3.0 $1.0 $4.3 Q2’24 $3.1 $1.0 $4.2 Q3’24 $8.3 $8.3 Cash FHLB Available Committed Capacity FRB Available Committed Capacity 1. Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million 2. Selected 2024 proxy peers as disclosed in appendix STRONG CAPITAL AND LIQUIDITY • Immediately available liquidity to uninsured deposits1 of 183% • Total overall liquidity of ~$10.0 billion as of Q3’24 Loans-HFI to Deposits Q3’24, percent CUBI Regional Bank Peers2 76% 88% Borrowings % of Total Liabilities Q3’24, percent CUBI Regional Bank Peers2 7% 7%

 
18 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial NCOs percent 0.14% 0.13% 0.17% 0.23% 0.22% NPAs % of Total Assets percent Credit Metrics Remain Stable 0.17% 0.14% 0.25% 0.24%0.16%2 2.96% 2.81% 3.26% 2.74% 2.51% 0.50% 0.51% 0.55% 0.56% 0.50% Consumer NCOs percent Total NCOs percent MAINTAINING SUPERIOR CREDIT QUALITY v Q3’23 Q4’23 Q1’23 Q2’24 Q3’24 NPAs % of Total Assets Q3’24, percent CUBI Regional Bank Peers1 0.22% 0.36% 1. Selected 2024 proxy peers as disclosed in appendix 2. As of Q3’24; Excludes owner occupied CRE; 33% total CRE including owner occupied CRE 3. As of Q2’24; Selected 2024 proxy peers as disclosed in appendix 15% 10% 33%1% 8% CUBI2 Regional Bank Peers3 26% 47% Construction Commercial Real Estate Multifamily CRE % of Loans-HFI percent v • NPA ratio down 1 bp QoQ • Special mention and substandard loans declined by 10% QoQ and 30-89 delinquency loans declined 17% QoQ • Total NCOs declined by 9% QoQ 6%

 
19 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Concluding Perspectives Let’s take on tomorrow. 16% annualized loan growth contrasting with industry trends Robust pipeline to continue to originate franchise enhancing loan growth New banking teams1 have remixed nearly 10% of deposit franchise $536 million of deposits and more than 3,000 accounts from commercial banking teams in less than two quarters Transforming the deposit franchise by improving the cost and quality of deposits Tangible book value per share1 grew 18% annualized and approaching $53 in the quarter 15% CAGR over last five years – 2x the performance of top quartile banks2 and sustainable going forward Net interest margin expected to increase in medium-term Net interest income expansion opportunities on both sides of the balance sheet Robust Loan GrowthDeposit Franchise Transformation Tangible Book Value GrowthNet Interest Income / Net Interest Margin 1. Includes venture banking team hired in Q2’23 and commercial banking teams hired in Q2’24 2. US banks with $10 billion to $100 billion in assets. CAGR from FY’18-FY’23

 
ANALYST COVERAGE D.A. Davidson Companies Peter Winter Hovde Group David Bishop 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

 
22 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers Bancorp, Inc. NYSE: CUBI Headquarters West Reading, PA Offices1 41 FTE Employees 812 Market Capitalization As of October 25, 2024 $1.4B Total Assets $21.5B Tangible Book Value2 $52.96 Share price As of October 25, 2024 $44.47 Data as of September 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 Company Overview Community Banking Corporate & Specialized Banking Providence Dallas Raleigh/Durham Chicago Washington, D.C. Southern California Bay Area Denver NYC Boston PA Portsmouth Austin Reno Corporate & Specialized Banking Community Banking Digital Banking Deep relationship-based community banking predominantly in the Northeast with selected presence in expansion markets Serving small and medium-sized businesses, and individuals, with a comprehensive suite of loan and deposit products National corporate niche 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 and treasury services (commercial and consumer) Lender finance, capital call lines, venture banking, mortgage finance, equipment finance, healthcare, real estate specialty finance Operating deposit accounts and treasury services Consumer installment lending Payments Online savings Pr od uc ts

 
23 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 0 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 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% Differentiated Performance Relative to Industry • 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

 
24 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 20% 49% 30% 1% FICO Score1 660-679 680-699 700-749 750+ 23% 35% 24% 12% 5% 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 23% 45% 32% <$50K $50K -$100K >$100K 20% 11% 20% 27% 22% West Southwest Midwest Southeast Northeast Consumer Installment Loans – Portfolio Credit Metrics Purpose 64%9% 6% 20% Personal Loan Specialty Home Improvement Student Loan 96% 2% 1% Non COVID-19 Impacted Segments Non-Professional Retail & Restaurants Average FICO Score1 ~746 Average DTI1 ~20% Average Borrower Income ~$101k Weighted average life of ~2.3 years Note: Data as of September 30, 2024; includes consumer installment HFS loans 1. DTI and FICO scores as of time of origination

 
25 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Investment Securities – AFS percent, Q3’24 Securities Portfolio Generating Attractive Returns with Minimal Credit and Duration Risk • Spot yield: 5.23% • Effective duration: 2.0 years • Floating rate securities: 30% • Credit rating: 63% AAA with only 3% at BB and below 59%25% 14% 1% MBS & CMO Corporate ABS Other Total: $2.4 billion Investment Securities – HTM percent, Q3’24 • Spot yield: 4.31% • Effective duration: 3.5 years • Floating rate securities: 28% • 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, Q2’23 and Q3’24 49%51% MBS & CMO Credit Enhanced ABS Total: $1.1 billion

 
26 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Selected 2024 Proxy Peers • Ameris • Associated • Atlantic Union • BankUnited • Commerce • Community Bank System • FB Financial • First Busey • First Financial (OH) • First Merchants • F.N.B. • Fulton • Independent • Old National • Pinnacle • Sandy Spring • TowneBank • United • United Community • WesBanco • WSFS Note: Excludes the following banks due to lack of available disclosure –Axos, Eastern, Northwest, Provident, Silvergate (removed following its March 8, 2023 announcement that it would wind down operations and liquidate the bank)

 
27 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Sources of Liquidity 1. Includes CLOs Liquidity Sources ($000's) 3Q 24 2Q 24 QoQ Change Cash and Cash Equivalents $3,088,620 $3,048,586 $40,034 FHLB Available Borrowing Capacity $986,770 $966,409 $20,361 FRB Available Borrowing Capacity $4,180,824 $4,283,486 ($102,662) Investments (MV AFS + HTM) $0 Agency & Non-Agency MBS & CMO $1,960,267 $1,953,596 $6,671 Corporates $594,972 $587,746 $7,226 ABS (1) $886,265 $899,215 ($12,950) Other AFS $34,336 $33,892 $443 Less: Pledged Securities HTM & AFS ($1,698,140) ($1,733,875) $35,735 Net Unpledged Securities $1,777,699 $1,740,574 $37,125 Total $10,033,914 $10,039,056 ($5,142)

 
28 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 1. Excludes mortgage finance reported at fair value, loans held for sale 2. Utilized Moody’s September 2024 baseline and adverse forecast scenario with qualitative adjustments for Q3’24 provision 3. Utilized Moody’s June 2024 baseline and adverse forecast scenario with qualitative adjustments for Q2’24 provision 4. Non-GAAP measure, refer to appendix for reconciliation Allowance for Credit Losses for Loans and Leases ($ in thousands) September 30, 2024 June 30, 2024 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 $ 6,672,933 $ 25,191 0.38 % $ 6,740,992 $ 23,721 0.35 % Multifamily 2,115,978 18,090 0.85 % 2,067,332 20,652 1.00 % Commercial Real Estate Owner Occupied 981,804 10,913 1.11 % 805,779 8,431 1.05 % Commercial Real Estate Non-Owner Occupied 1,326,591 17,303 1.30 % 1,202,606 17,966 1.49 % Construction 174,509 1,606 0.92 % 163,409 1,856 1.14 % Total Commercial Loans and Leases Receivable $ 11,271,915 $ 73,103 0.65 % $ 10,980,118 $ 72,626 0.66 % Consumer: Residential Real Estate $ 500,786 $ 5,838 1.17 % $ 481,503 $ 5,884 1.22 % Manufacturing Housing 34,481 4,080 11.83 % 35,901 4,094 11.40 % Installment 720,101 50,137 6.96 % 756,682 49,832 6.59 % Total Consumer Loans Receivable $ 1,255,368 $ 60,055 4.78 % $ 1,274,086 $ 59,810 4.69 % Total Loans and Leases Receivable $ 12,527,783 $ 133,158 1.06 %4 $ 12,254,204 $ 132,436 1.08 %4

 
29 © 2024 C USTO M ERS BANC O RP, INC . / 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

 
30 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Earnings and Adjusted Core Earnings - Customers Bancorp Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 (dollars in thousands, except per share data) USD Per share USD Per share USD Per share USD Per share USD Per share GAAP net income to common shareholders $ 42,937 $ 1.31 $ 54,300 $ 1.66 $ 45,926 $ 1.40 $ 58,223 $ 1.79 $ 82,953 $ 2.58 Reconciling items (after tax): Severance expense 540 0.02 1,928 0.06 — — 473 0.01 — — (Gains) losses on investment securities (322) (0.01) 561 0.02 57 0.00 (85) (0.00) 492 0.02 Derivative credit valuation adjustment 185 0.01 (44) (0.00) 169 0.01 267 0.01 (151) (0.00) Unrealized losses on loans held for sale 498 0.02 — — — — — — — — FDIC special assessment — 0.00 138 0.00 380 0.01 2,755 0.08 — — Unrealized (gain) on equity method investments — — (8,316) (0.25) — — — — — — Core earnings $ 43,838 $ 1.34 $ 48,567 $ 1.49 $ 46,532 $ 1.42 $ 61,633 $ 1.90 $ 83,294 $ 2.59 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — — — 5,405 0.16 — — — — FDIC premiums prior to 2024 — — — — 3,200 0.10 — — — — Non-income taxes prior to 2024 (2,457) (0.07) — — — — — — — — Total one-time non-interest expense items (2,457) (0.07) — — 8,605 0.26 — — — — Adjusted core earnings (adjusted for one-time non-interest expense items) $ 41,381 $ 1.26 $ 48,567 $ 1.49 $ 55,137 $ 1.68 $ 61,633 $ 1.90 $ 83,294 $ 2.59

 
31 © 2024 C USTO M ERS BANC O RP, INC . / 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) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income $ 46,743 $ 58,085 $ 49,726 $ 62,092 $ 86,756 Reconciling items (after tax): Severance expense 540 1,928 — 473 — (Gains) losses on investment securities (322) 561 57 (85) 492 Derivative credit valuation adjustment 185 (44) 169 267 (151) Unrealized losses on loans held for sale $ 498 — — — — FDIC special assessment — 138 380 2,755 — Unrealized (gain) on equity method investments $ — (8,316) — — — Core net income $ 47,644 $ 52,352 $ 50,332 $ 65,502 $ 87,097 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 — — Non-income taxes prior to 2024 (2,457) — — — — Total one-time non-interest expense items (2,457) — 8,605 — — Core net income adjusted for one-time non-interest expense items $ 45,187 $ 52,352 $ 58,937 $ 65,502 $ 87,097 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core return on average assets 0.89 % 1.00 % 0.95 % 1.22 % 1.57 % Adjusted core return on average assets (adjusted for one-time non-interest expense items) 0.85 % 1.00 % 1.11 % 1.22 % 1.57 %

 
32 © 2024 C USTO M ERS BANC O RP, INC . / 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) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income to common shareholders $ 42,937 $ 54,300 $ 45,926 $ 58,223 $ 82,953 Reconciling items (after tax): Severance expense 540 1,928 — 473 — (Gains) losses on investment securities (322) 561 57 (85) 492 Derivative credit valuation adjustment 185 (44) 169 267 (151) Unrealized losses on loans held for sale 498 — — — — Tax on surrender of bank-owned life insurance policies — — — — — FDIC special assessment — 138 380 2,755 — Unrealized (gain) on equity method investments — (8,316) — — — Core earnings $ 43,838 $ 48,567 $ 46,532 $ 61,633 $ 83,294 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 — — Non-income taxes prior to 2024 (2,457) — — — — Total one-time non-interest expense items (2,457) — 8,605 — — Adjusted core earnings (adjusted for one-time non-interest expense items) $ 41,381 $ 48,567 $ 55,137 $ 61,633 $ 83,294 Average total common shareholders' equity $ 1,636,242 $ 1,576,595 $ 1,529,211 $ 1,449,728 $ 1,373,244 Core return on average common equity 10.7 % 12.4 % 12.2 % 16.9 % 24.1 % Adjusted core return on average common equity (adjusted for one-time non-interest expense items) 10.1 % 12.4 % 14.5 % 16.9 % 24.1 %

 
33 © 2024 C USTO M ERS BANC O RP, INC . / 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) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income $ 46,743 $ 58,085 $ 49,726 $ 62,092 $ 86,756 Reconciling items: Income tax expense (725) 19,032 15,651 21,796 23,470 Provision (benefit) for credit losses 17,066 18,121 17,070 13,523 17,856 Provision (benefit) for credit losses on unfunded commitments 642 1,594 430 (136) 48 Severance expense 659 2,560 — 639 — (Gains) losses on investment securities (394) 744 75 (114) 626 Derivative credit valuation adjustment 226 (58) 222 361 (192) FDIC special assessment — 183 500 3,723 — Unrealized (gain) on equity method investments — (11,041) — — — Unrealized losses on loans held for sale 607 — — — — Net income - pre-tax pre-provision $ 64,824 $ 89,220 $ 83,674 $ 101,884 $ 128,564 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — 7,106 — — FDIC premiums prior to 2024 — — 4,208 — — Non-income taxes prior to 2024 (2,997) — — — — Total one-time non-interest expense items (2,997) — 11,314 — — Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items) $ 61,827 $ 89,220 $ 94,988 $ 101,884 $ 128,564 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core pre-tax pre-provision ROAA 1.21 % 1.71 % 1.58 % 1.90 % 2.32 % Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items) 1.16 % 1.71 % 1.79 % 1.90 % 2.32 %

 
34 © 2024 C USTO M ERS BANC O RP, INC . / 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) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net interest income $ 158,545 $ 167,653 $ 160,385 $ 172,506 $ 199,773 GAAP non-interest income $ 8,557 $ 31,037 $ 21,231 $ 18,672 $ 17,775 (Gains) losses on investment securities (394) 744 75 (114) 626 Derivative credit valuation adjustment 226 (58) 222 361 (192) Unrealized (gain) on equity method investments — (11,041) — — — Unrealized losses on loans held for sale 607 — — — — Core non-interest income 8,996 20,682 21,528 18,919 18,209 Core revenue $ 167,541 $ 188,335 $ 181,913 $ 191,425 $ 217,982 GAAP non-interest expense $ 104,018 $ 103,452 $ 99,169 $ 93,767 $ 89,466 Severance expense (659) (2,560) — (639) — FDIC special assessment — (183) (500) (3,723) — Core non-interest expense $ 103,359 $ 100,709 $ 98,669 $ 89,405 $ 89,466 One-time non-interest expense items recorded in 2024: Deposit servicing fees prior to 2024 — — (7,106) — — FDIC premiums prior to 2024 — — (4,208) — — Non-income taxes prior to 2024 2,997 — — — — Total one-time non-interest expense items 2,997 — (11,314) — — Adjusted core non-interest expense $ 106,356 $ 100,709 $ 87,355 $ 89,405 $ 89,466 Core efficiency ratio (1) 61.7 % 53.5 % 54.2 % 46.7 % 41.0 % Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2) 63.5 % 53.5 % 48.0 % 46.7 % 41.0 %

 
35 © 2024 C USTO M ERS BANC O RP, INC . / 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) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP non-interest expense $ 104,018 $ 103,452 $ 99,169 $ 93,767 $ 89,466 Severance expense (659) (2,560) — (639) — FDIC special assessment — (183) (500) (3,723) — Core non-interest expense $ 103,359 $ 100,709 $ 98,669 $ 89,405 $ 89,466 One-time non-interest expense items recorded in 2024: Deposit servicing fees prior to 2024 — — (7,106) — — FDIC premiums prior to 2024 — — (4,208) — — FDIC premiums prior to 2024 2,997 — — — — Total one-time non-interest expense items 2,997 — (11,314) — — Adjusted core non-interest expense $ 106,356 $ 100,709 $ 87,355 $ 89,405 $ 89,466 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core non-interest expense to average assets 1.94 % 1.93 % 1.86 % 1.67 % 1.62 % Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items) 1.99 % 1.93 % 1.65 % 1.67 % 1.62 %

 
36 © 2024 C USTO M ERS BANC O RP, INC . / 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) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP total shareholders' equity $ 1,801,180 $ 1,746,865 $ 1,691,617 $ 1,638,394 $ 1,561,607 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 $ 1,659,757 $ 1,605,442 $ 1,550,194 $ 1,496,971 $ 1,420,184 GAAP Total assets $ 21,456,082 $ 20,942,975 $ 21,347,367 $ 21,316,265 $ 21,857,152 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629) Tangible assets $ 21,452,453 $ 20,939,346 $ 21,343,738 $ 21,312,636 $ 21,853,523 Tangible common equity to tangible assets 7.7 % 7.7 % 7.3 % 7.0 % 6.5 %

 
37 © 2024 C USTO M ERS BANC O RP, INC . / 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) Q3 2024 Q4 2023 Q4 2022 Q4 2021 Q4 2020 Q4 2019 Q4 2018 GAAP total shareholders' equity $ 1,801,180 $ 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 $ 1,659,757 $ 1,496,971 $ 1,261,538 $ 1,224,687 $ 885,317 $ 820,129 $ 722,846 Common shares outstanding 31,342,107 31,440,906 32,373,697 32,913,267 31,705,088 31,336,791 31,003,028 Tangible book value per common share $ 52.96 $ 47.61 $ 38.97 $ 37.21 $ 27.92 $ 26.17 $ 23.32