Pennsylvania | 001-35542 | 27-2290659 |
(State or other jurisdiction of incorporation or organization) | (Commission File number) | (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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 o |
Exhibit | Description | |
Press Release dated April 30, 2018 | ||
Slide presentation dated April 2018 |
CUSTOMERS BANCORP, INC. | |
By: /s/ Robert E. Wahlman | |
Name: Robert E. Wahlman | |
Title: Executive Vice President and Chief Financial Officer |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
EARNINGS SUMMARY - UNAUDITED | |||||||||||||||
(Dollars in thousands, except per-share data) | |||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | |||||||||||
Net income available to common shareholders | $ | 20,527 | $ | 18,000 | $ | 4,139 | $ | 20,107 | $ | 22,132 | |||||
Basic earnings per common share ("EPS") | $ | 0.65 | $ | 0.58 | $ | 0.13 | $ | 0.66 | $ | 0.73 | |||||
Diluted EPS | $ | 0.64 | $ | 0.55 | $ | 0.13 | $ | 0.62 | $ | 0.67 | |||||
Average common shares outstanding - basic | 31,424,496 | 30,843,319 | 30,739,671 | 30,641,554 | 30,407,060 | ||||||||||
Average common shares outstanding - diluted | 32,273,973 | 32,508,030 | 32,512,692 | 32,569,652 | 32,789,160 | ||||||||||
Shares outstanding period end | 31,466,271 | 31,382,503 | 30,787,632 | 30,730,784 | 30,636,327 | ||||||||||
Return on average assets | 0.95 | % | 0.84 | % | 0.29 | % | 0.93 | % | 1.09 | % | |||||
Return on average common equity | 11.73 | % | 10.11 | % | 2.33 | % | 11.84 | % | 13.80 | % | |||||
Net interest margin, tax equivalent (1) | 2.67 | % | 2.79 | % | 2.62 | % | 2.78 | % | 2.73 | % | |||||
Efficiency ratio | 60.84 | % | 62.42 | % | 68.55 | % | 58.15 | % | 56.82 | % | |||||
Non-performing loans (NPLs) to total loans (including held-for-sale loans) | 0.26 | % | 0.30 | % | 0.33 | % | 0.21 | % | 0.33 | % | |||||
Reserves to non-performing loans | 173.02 | % | 146.36 | % | 130.83 | % | 204.59 | % | 149.85 | % | |||||
Net charge-offs | $ | 633 | $ | 1,130 | $ | 2,495 | $ | 1,960 | $ | 482 | |||||
Annualized net charge-offs to average total loans | 0.03 | % | 0.05 | % | 0.11 | % | 0.09 | % | 0.02 | % | |||||
Tier 1 capital to average assets (leverage ratio) (2) | 9.03 | % | 8.94 | % | 8.35 | % | 8.66 | % | 9.04 | % | |||||
Common equity Tier 1 capital to risk-weighted assets (2) | 8.51 | % | 8.81 | % | 8.28 | % | 8.28 | % | 8.51 | % | |||||
Tier 1 capital to risk-weighted assets (2) | 11.11 | % | 11.58 | % | 10.94 | % | 10.96 | % | 11.35 | % | |||||
Total capital to risk-weighted assets (2) | 12.55 | % | 13.05 | % | 12.40 | % | 12.43 | % | 12.99 | % | |||||
Tangible common equity to tangible assets (3) | 6.36 | % | 7.00 | % | 6.47 | % | 6.21 | % | 6.52 | % | |||||
Book value per common share | $ | 22.30 | $ | 22.42 | $ | 22.51 | $ | 22.54 | $ | 21.62 | |||||
Tangible book value per common share (period end) (4) | $ | 21.74 | $ | 21.90 | $ | 21.98 | $ | 21.97 | $ | 21.04 | |||||
Period end stock price | $ | 29.15 | $ | 25.99 | $ | 32.62 | $ | 28.28 | $ | 31.53 | |||||
(1) Non-GAAP measure calculated as GAAP net interest income, plus tax equivalent interest using a 26% rate for Q1 2018, and a 35% rate for Q1 2017 to Q4 2017, divided by average interest earning assets. | |||||||||||||||
(2) Regulatory capital ratios are estimated for Q1 2018. | |||||||||||||||
(3) Non-GAAP measure calculated as GAAP total shareholders' equity less preferred stock and goodwill and other intangibles divided by total assets less goodwill and other intangibles. | |||||||||||||||
(4) Non-GAAP measure calculated as GAAP total shareholders' equity less preferred stock and goodwill and other intangibles divided by common shares outstanding at period end. |
• | Principally concentrated in New York City with an emphasis on properties subject to some type of rent control; and principally to high net worth families; |
• | Average loan size is $6.9 million; |
• | Median annual debt service coverage ratio is 137%; |
• | Median loan-to-value for the portfolio is 66.8%; |
• | All loans are individually stressed with an increase of 1% and 2% to the cap rate and an increase of 1.5% and 3% in loan interest rates; |
• | All properties are inspected prior to a loan being granted and monitored thereafter on an annual basis by dedicated portfolio managers; and |
• | Credit approval process is independent of customer sales and portfolio management process. |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED - UNAUDITED | |||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | |||||||||||||||
Interest income: | |||||||||||||||||||
Loans receivable, including fees | $ | 66,879 | $ | 70,935 | $ | 67,107 | $ | 67,036 | $ | 61,461 | |||||||||
Loans held for sale | 19,052 | 20,294 | 21,633 | 17,524 | 13,946 | ||||||||||||||
Investment securities | 8,672 | 4,136 | 7,307 | 7,823 | 5,887 | ||||||||||||||
Other | 2,361 | 2,254 | 2,238 | 1,469 | 1,800 | ||||||||||||||
Total interest income | 96,964 | 97,619 | 98,285 | 93,852 | 83,094 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 19,793 | 18,649 | 18,381 | 16,228 | 14,323 | ||||||||||||||
Other borrowings | 3,376 | 3,288 | 3,168 | 1,993 | 1,608 | ||||||||||||||
FHLB advances | 7,080 | 5,697 | 7,032 | 5,340 | 3,060 | ||||||||||||||
Subordinated debt | 1,684 | 1,685 | 1,685 | 1,685 | 1,685 | ||||||||||||||
Total interest expense | 31,933 | 29,319 | 30,266 | 25,246 | 20,676 | ||||||||||||||
Net interest income | 65,031 | 68,300 | 68,019 | 68,606 | 62,418 | ||||||||||||||
Provision for loan losses | 2,117 | 831 | 2,352 | 535 | 3,050 | ||||||||||||||
Net interest income after provision for loan losses | 62,914 | 67,469 | 65,667 | 68,071 | 59,368 | ||||||||||||||
Non-interest income: | |||||||||||||||||||
Interchange and card revenue | 9,661 | 8,265 | 8,321 | 8,014 | 12,663 | ||||||||||||||
Deposit fees | 2,092 | 2,121 | 2,659 | 2,133 | 3,127 | ||||||||||||||
Bank-owned life insurance | 2,031 | 1,922 | 1,672 | 2,258 | 1,367 | ||||||||||||||
Mortgage warehouse transactional fees | 1,887 | 2,206 | 2,396 | 2,523 | 2,221 | ||||||||||||||
Gain on sale of SBA and other loans | 1,361 | 1,178 | 1,144 | 573 | 1,328 | ||||||||||||||
Mortgage banking income | 121 | 173 | 257 | 291 | 155 | ||||||||||||||
Gain on sale of investment securities | — | 268 | 5,349 | 3,183 | — | ||||||||||||||
Impairment loss on investment securities | — | — | (8,349 | ) | (2,882 | ) | (1,703 | ) | |||||||||||
Other | 3,757 | 2,092 | 3,328 | 1,664 | 2,748 | ||||||||||||||
Total non-interest income | 20,910 | 18,225 | 16,777 | 17,757 | 21,906 | ||||||||||||||
Non-interest expense: | |||||||||||||||||||
Salaries and employee benefits | 24,925 | 25,948 | 24,807 | 23,651 | 21,112 | ||||||||||||||
Technology, communication and bank operations | 9,943 | 11,122 | 13,152 | 8,276 | 9,068 | ||||||||||||||
Professional services | 6,008 | 7,010 | 7,403 | 6,227 | 7,512 | ||||||||||||||
Occupancy | 2,834 | 2,937 | 2,857 | 2,657 | 2,714 | ||||||||||||||
FDIC assessments, non-income taxes, and regulatory fees | 2,200 | 1,290 | 2,475 | 2,416 | 1,725 | ||||||||||||||
Loan workout | 659 | 522 | 915 | 408 | 521 | ||||||||||||||
Merger and acquisition related expenses | 106 | 410 | — | — | — | ||||||||||||||
Advertising and promotion | 390 | 361 | 404 | 378 | 326 | ||||||||||||||
Other real estate owned expense (income) | 40 | 20 | 445 | 160 | (55 | ) | |||||||||||||
Other | 5,175 | 3,653 | 7,333 | 5,606 | 5,595 | ||||||||||||||
Total non-interest expense | 52,280 | 53,273 | 59,791 | 49,779 | 48,518 | ||||||||||||||
Income before income tax expense | 31,544 | 32,421 | 22,653 | 36,049 | 32,756 | ||||||||||||||
Income tax expense | 7,402 | 10,806 | 14,899 | 12,327 | 7,009 | ||||||||||||||
Net income | 24,142 | 21,615 | 7,754 | 23,722 | 25,747 | ||||||||||||||
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | ||||||||||||||
Net income available to common shareholders | $ | 20,527 | $ | 18,000 | $ | 4,139 | $ | 20,107 | $ | 22,132 | |||||||||
Basic earnings per common share | $ | 0.65 | $ | 0.58 | $ | 0.13 | $ | 0.66 | $ | 0.73 | |||||||||
Diluted earnings per common share | $ | 0.64 | $ | 0.55 | $ | 0.13 | $ | 0.62 | $ | 0.67 |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED BALANCE SHEET - UNAUDITED | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 9,198 | $ | 20,388 | $ | 13,318 | $ | 28,502 | $ | 25,004 | |||||||||
Interest-earning deposits | 206,213 | 125,935 | 206,162 | 384,740 | 152,286 | ||||||||||||||
Cash and cash equivalents | 215,411 | 146,323 | 219,480 | 413,242 | 177,290 | ||||||||||||||
Investment securities, at fair value | 1,181,661 | 471,371 | 584,823 | 1,012,605 | 1,017,300 | ||||||||||||||
Loans held for sale | 1,875,515 | 1,939,485 | 2,113,293 | 2,255,096 | 1,684,548 | ||||||||||||||
Loans receivable | 6,943,566 | 6,768,258 | 7,061,338 | 6,725,208 | 6,599,443 | ||||||||||||||
Allowance for loan losses | (39,499 | ) | (38,015 | ) | (38,314 | ) | (38,458 | ) | (39,883 | ) | |||||||||
Total loans receivable, net of allowance for loan losses | 6,904,067 | 6,730,243 | 7,023,024 | 6,686,750 | 6,559,560 | ||||||||||||||
FHLB, Federal Reserve Bank, and other restricted stock | 130,302 | 105,918 | 98,611 | 129,689 | 85,218 | ||||||||||||||
Accrued interest receivable | 31,812 | 27,021 | 27,135 | 26,165 | 25,603 | ||||||||||||||
Bank premises and equipment, net | 11,556 | 11,955 | 12,369 | 12,996 | 12,512 | ||||||||||||||
Bank-owned life insurance | 259,222 | 257,720 | 255,683 | 213,902 | 213,005 | ||||||||||||||
Other real estate owned | 1,742 | 1,726 | 1,059 | 2,358 | 2,738 | ||||||||||||||
Goodwill and other intangibles | 17,477 | 16,295 | 16,604 | 17,615 | 17,618 | ||||||||||||||
Other assets | 140,501 | 131,498 | 119,748 | 113,130 | 111,244 | ||||||||||||||
Total assets | $ | 10,769,266 | $ | 9,839,555 | $ | 10,471,829 | $ | 10,883,548 | $ | 9,906,636 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||
Demand, non-interest bearing deposits | $ | 1,260,853 | $ | 1,052,115 | $ | 1,427,304 | $ | 1,109,239 | $ | 1,209,688 | |||||||||
Interest-bearing deposits | 5,781,606 | 5,748,027 | 6,169,772 | 6,366,124 | 6,125,792 | ||||||||||||||
Total deposits | 7,042,459 | 6,800,142 | 7,597,076 | 7,475,363 | 7,335,480 | ||||||||||||||
Federal funds purchased | 195,000 | 155,000 | 147,000 | 150,000 | 215,000 | ||||||||||||||
FHLB advances | 2,252,615 | 1,611,860 | 1,462,343 | 1,999,600 | 1,206,550 | ||||||||||||||
Other borrowings | 186,735 | 186,497 | 186,258 | 186,030 | 87,289 | ||||||||||||||
Subordinated debt | 108,904 | 108,880 | 108,856 | 108,831 | 108,807 | ||||||||||||||
Accrued interest payable and other liabilities | 64,465 | 56,212 | 59,654 | 53,435 | 73,693 | ||||||||||||||
Total liabilities | 9,850,178 | 8,918,591 | 9,561,187 | 9,973,259 | 9,026,819 | ||||||||||||||
Preferred stock | 217,471 | 217,471 | 217,471 | 217,471 | 217,471 | ||||||||||||||
Common stock | 31,997 | 31,913 | 31,318 | 31,261 | 31,167 | ||||||||||||||
Additional paid in capital | 424,099 | 422,096 | 429,633 | 428,488 | 428,454 | ||||||||||||||
Retained earnings | 279,942 | 258,076 | 240,076 | 235,938 | 215,830 | ||||||||||||||
Accumulated other comprehensive (loss) income | (26,188 | ) | (359 | ) | 377 | 5,364 | (4,872 | ) | |||||||||||
Treasury stock, at cost | (8,233 | ) | (8,233 | ) | (8,233 | ) | (8,233 | ) | (8,233 | ) | |||||||||
Total shareholders' equity | 919,088 | 920,964 | 910,642 | 910,289 | 879,817 | ||||||||||||||
Total liabilities & shareholders' equity | $ | 10,769,266 | $ | 9,839,555 | $ | 10,471,829 | $ | 10,883,548 | $ | 9,906,636 |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||
AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
Three Months Ended | |||||||||||||||
March 31, | December 31, | March 31, | |||||||||||||
2018 | 2017 | 2017 | |||||||||||||
Average Balance | Average yield or cost (%) | Average Balance | Average yield or cost (%) | Average Balance | Average yield or cost (%) | ||||||||||
Assets | |||||||||||||||
Interest earning deposits | $ | 184,033 | 1.53% | $ | 204,762 | 1.33% | $ | 499,561 | 0.79% | ||||||
Investment securities | 1,085,429 | 3.20% | 572,071 | 2.84% | 829,730 | 2.88% | |||||||||
Loans: | |||||||||||||||
Commercial loans to mortgage companies | 1,591,749 | 4.69% | 1,789,230 | 4.36% | 1,480,335 | 3.99% | |||||||||
Multifamily loans | 3,637,929 | 3.71% | 3,716,104 | 3.81% | 3,337,334 | 3.71% | |||||||||
Commercial and industrial | 1,653,655 | 4.34% | 1,560,778 | 4.21% | 1,350,720 | 4.05% | |||||||||
Non-owner occupied commercial real estate | 1,281,502 | 3.93% | 1,300,329 | 4.14% | 1,277,286 | 3.81% | |||||||||
All other loans | 330,100 | 5.07% | 508,680 | 4.49% | 415,693 | 4.74% | |||||||||
Total loans | 8,494,935 | 4.10% | 8,875,121 | 4.08% | 7,861,368 | 3.89% | |||||||||
Other interest-earning assets | 116,823 | 5.79% | 107,033 | 5.81% | 75,980 | 4.41% | |||||||||
Total interest earning assets | 9,881,220 | 3.97% | 9,758,987 | 3.97% | 9,266,639 | 3.64% | |||||||||
Non-interest earning assets | 394,487 | 404,694 | 340,902 | ||||||||||||
Total assets | $ | 10,275,707 | $ | 10,163,681 | $ | 9,607,541 | |||||||||
Liabilities | |||||||||||||||
Total interest bearing deposits (1) | $ | 5,812,055 | 1.38% | $ | 5,982,054 | 1.24% | $ | 6,216,524 | 0.93% | ||||||
Borrowings | 2,182,463 | 2.25% | 1,990,497 | 2.13% | 1,130,490 | 2.28% | |||||||||
Total interest bearing liabilities | 7,994,518 | 1.62% | 7,972,551 | 1.46% | 7,347,014 | 1.14% | |||||||||
Non-interest bearing deposits (1) | 1,278,947 | 1,194,038 | 1,315,194 | ||||||||||||
Total deposits & borrowings | 9,273,465 | 1.39% | 9,166,589 | 1.27% | 8,662,208 | 0.97% | |||||||||
Other non-interest bearing liabilities | 75,307 | 72,986 | 77,339 | ||||||||||||
Total liabilities | 9,348,772 | 9,239,575 | 8,739,547 | ||||||||||||
Shareholders' equity | 926,935 | 924,106 | 867,994 | ||||||||||||
Total liabilities and shareholders' equity | $ | 10,275,707 | $ | 10,163,681 | $ | 9,607,541 | |||||||||
Net interest margin | 2.66% | 2.78% | 2.73% | ||||||||||||
Net interest margin tax equivalent | 2.67% | 2.79% | 2.73% | ||||||||||||
(1) Total costs of deposits (including interest bearing and non-interest bearing) were 1.13%, 1.03% and 0.77% for the three months ended March 31, 2018, December 31, 2017, and March 31, 2017, respectively. | |||||||||||||||
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
PERIOD END LOAN COMPOSITION (UNAUDITED) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | |||||||||||||||
Commercial: | |||||||||||||||||||
Multi-family | $ | 3,645,374 | $ | 3,646,572 | $ | 3,769,206 | $ | 3,550,375 | $ | 3,438,483 | |||||||||
Mortgage warehouse | 1,931,320 | 1,844,607 | 2,012,864 | 2,158,631 | 1,739,377 | ||||||||||||||
Commercial & industrial | 1,648,324 | 1,582,667 | 1,550,210 | 1,449,400 | 1,337,265 | ||||||||||||||
Commercial real estate- non-owner occupied | 1,195,903 | 1,218,719 | 1,237,849 | 1,216,012 | 1,230,738 | ||||||||||||||
Construction | 81,102 | 85,393 | 73,203 | 61,226 | 74,956 | ||||||||||||||
Total commercial loans | 8,502,023 | 8,377,958 | 8,643,332 | 8,435,644 | 7,820,819 | ||||||||||||||
Consumer: | |||||||||||||||||||
Residential | 226,501 | 235,928 | 436,979 | 447,150 | 363,584 | ||||||||||||||
Manufactured housing | 87,687 | 90,227 | 92,938 | 96,148 | 99,182 | ||||||||||||||
Other consumer | 3,570 | 3,547 | 3,819 | 3,588 | 3,240 | ||||||||||||||
Total consumer loans | 317,758 | 329,702 | 533,736 | 546,886 | 466,006 | ||||||||||||||
Deferred (fees)/costs and unamortized (discounts)/premiums, net | (700 | ) | 83 | (2,437 | ) | (2,226 | ) | (2,834 | ) | ||||||||||
Total loans | $ | 8,819,081 | $ | 8,707,743 | $ | 9,174,631 | $ | 8,980,304 | $ | 8,283,991 | |||||||||
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
PERIOD END DEPOSIT COMPOSITION (UNAUDITED) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | |||||||||||||||
Demand, non-interest bearing | $ | 1,260,853 | $ | 1,052,115 | $ | 1,427,304 | $ | 1,109,239 | $ | 1,209,688 | |||||||||
Demand, interest bearing | 510,418 | 523,848 | 362,269 | 359,361 | 317,638 | ||||||||||||||
Savings | 36,584 | 38,838 | 37,654 | 41,345 | 45,569 | ||||||||||||||
Money market | 3,345,573 | 3,279,648 | 3,469,410 | 3,523,056 | 3,201,116 | ||||||||||||||
Time deposits | 1,889,031 | 1,905,693 | 2,300,439 | 2,442,362 | 2,561,469 | ||||||||||||||
Total deposits | $ | 7,042,459 | $ | 6,800,142 | $ | 7,597,076 | $ | 7,475,363 | $ | 7,335,480 | |||||||||
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||
ASSET QUALITY - UNAUDITED | ||||||||||||||||||||||||||
(Dollars in thousands) | As of March 31, 2018 | As of December 31, 2017 | ||||||||||||||||||||||||
Total Loans | Non Accrual /NPLs | Total Credit Reserves | NPLs / Total Loans | Total Reserves to Total NPLs | Total Loans | Non Accrual /NPLs | Total Credit Reserves | NPLs / Total Loans | Total Reserves to Total NPLs | |||||||||||||||||
Loan Type | ||||||||||||||||||||||||||
Originated Loans | ||||||||||||||||||||||||||
Multi-Family | $ | 3,642,808 | $ | — | $ | 12,545 | — | % | — | % | $ | 3,499,760 | $— | $ | 12,169 | —% | —% | |||||||||
Commercial & Industrial (1) | 1,618,845 | 15,299 | 14,353 | 0.95 | % | 93.82 | % | 1,546,109 | 18,478 | 13,369 | 1.20 | % | 72.35 | % | ||||||||||||
Commercial Real Estate- Non-Owner Occupied | 1,176,949 | — | 4,444 | — | % | — | % | 1,199,053 | — | 4,564 | —% | —% | ||||||||||||||
Residential | 107,920 | 1,767 | 2,111 | 1.64 | % | 119.47 | % | 107,742 | 1,506 | 2,119 | 1.40 | % | 140.70 | % | ||||||||||||
Construction | 81,102 | — | 921 | — | % | —% | 85,393 | — | 979 | —% | —% | |||||||||||||||
Other Consumer (2) | 1,339 | — | 101 | — | % | —% | 1,292 | — | 77 | —% | —% | |||||||||||||||
Total Originated Loans | 6,628,963 | 17,066 | 34,475 | 0.26 | % | 202.01 | % | 6,439,349 | 19,984 | 33,277 | 0.31 | % | 166.52 | % | ||||||||||||
Loans Acquired | ||||||||||||||||||||||||||
Bank Acquisitions | 141,343 | 4,146 | 4,848 | 2.93 | % | 116.93 | % | 149,400 | 4,472 | 4,558 | 2.99 | % | 101.92 | % | ||||||||||||
Loan Purchases | 173,960 | 1,979 | 803 | 1.14 | % | 40.58 | % | 179,426 | 1,959 | 825 | 1.09 | % | 42.11 | % | ||||||||||||
Total Acquired Loans | 315,303 | 6,125 | 5,651 | 1.94 | % | 92.26 | % | 328,826 | 6,431 | 5,383 | 1.96 | % | 83.70 | % | ||||||||||||
Deferred (fees) costs and unamortized (discounts) premiums, net | (700 | ) | — | — | — | % | —% | 83 | — | — | —% | —% | ||||||||||||||
Total Loans Held for Investment | 6,943,566 | 23,191 | 40,126 | 0.33 | % | 173.02 | % | 6,768,258 | 26,415 | 38,660 | 0.39 | % | 146.36 | % | ||||||||||||
Total Loans Held for Sale | 1,875,515 | — | — | — | % | —% | 1,939,485 | — | — | —% | —% | |||||||||||||||
Total Portfolio | $ | 8,819,081 | $ | 23,191 | $ | 40,126 | 0.26 | % | 173.02 | % | $ | 8,707,743 | $ | 26,415 | $ | 38,660 | 0.30 | % | 146.36 | % | ||||||
(1) Commercial & industrial loans, including owner occupied commercial real estate. | ||||||||||||||||||||||||||
(2) Includes activity for BankMobile related loans, primarily overdrawn deposit accounts. |
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||||||||||||
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
2018 | 2017 | 2017 | 2017 | 2017 | |||||||||||||||
Originated Loans | |||||||||||||||||||
Commercial & Industrial (1) | $ | 54 | $ | (109 | ) | $ | 2,025 | $ | 1,840 | $ | (45 | ) | |||||||
Commercial Real Estate- Non-Owner Occupied | — | 731 | 77 | — | — | ||||||||||||||
Residential | — | 3 | 125 | 69 | 31 | ||||||||||||||
Other Consumer (2) | 254 | 686 | 348 | 172 | (22 | ) | |||||||||||||
Total Net Charge-offs (Recoveries) from Originated Loans | 308 | 1,311 | 2,575 | 2,081 | (36 | ) | |||||||||||||
Loans Acquired | |||||||||||||||||||
Bank Acquisitions | 325 | (181 | ) | (80 | ) | (121 | ) | 518 | |||||||||||
Loan Purchases | — | — | — | — | — | ||||||||||||||
Total Net Charge-offs (Recoveries) from Acquired Loans | 325 | (181 | ) | (80 | ) | (121 | ) | 518 | |||||||||||
Total Net Charge-offs from Loans Held for Investment | $ | 633 | $ | 1,130 | $ | 2,495 | $ | 1,960 | $ | 482 | |||||||||
(1) Commercial & industrial loans, including owner occupied commercial real estate. | |||||||||||||||||||
(2) Includes activity for BankMobile related loans, primarily overdrawn deposit accounts. | |||||||||||||||||||
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||
SEGMENT REPORTING - UNAUDITED |
Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | ||||||||||||||||||||||
Community Business Banking | BankMobile | Consolidated | Community Business Banking | BankMobile | Consolidated | ||||||||||||||||||
Interest income (1) | $ | 92,554 | $ | 4,410 | $ | 96,964 | $ | 78,832 | $ | 4,262 | $ | 83,094 | |||||||||||
Interest expense | 31,917 | 16 | 31,933 | 20,656 | 20 | 20,676 | |||||||||||||||||
Net interest income | 60,637 | 4,394 | 65,031 | 58,176 | 4,242 | 62,418 | |||||||||||||||||
Provision for loan losses | 1,874 | 243 | 2,117 | 3,050 | — | 3,050 | |||||||||||||||||
Non-interest income | 8,439 | 12,471 | 20,910 | 5,427 | 16,479 | 21,906 | |||||||||||||||||
Non-interest expense | 34,331 | 17,949 | 52,280 | 30,147 | 18,371 | 48,518 | |||||||||||||||||
Income (loss) before income tax expense (benefit) | 32,871 | (1,327 | ) | 31,544 | 30,406 | 2,350 | 32,756 | ||||||||||||||||
Income tax expense (benefit) | 7,728 | (326 | ) | 7,402 | 6,116 | 893 | 7,009 | ||||||||||||||||
Net income (loss) | 25,143 | (1,001 | ) | 24,142 | 24,290 | 1,457 | 25,747 | ||||||||||||||||
Preferred stock dividends | 3,615 | — | 3,615 | 3,615 | — | 3,615 | |||||||||||||||||
Net income (loss) available to common shareholders | $ | 21,528 | $ | (1,001 | ) | $ | 20,527 | $ | 20,675 | $ | 1,457 | $ | 22,132 | ||||||||||
Basic earnings (loss) per common share | $ | 0.69 | $ | (0.04 | ) | $ | 0.65 | $ | 0.68 | $ | 0.05 | $ | 0.73 | ||||||||||
Diluted earnings (loss) per common share | $ | 0.67 | $ | (0.03 | ) | $ | 0.64 | $ | 0.63 | $ | 0.04 | $ | 0.67 | ||||||||||
As of March 31, 2018 and 2017 | |||||||||||||||||||||||
Goodwill and other intangibles | $ | 3,630 | $ | 13,847 | $ | 17,477 | $ | 3,636 | $ | 13,982 | $ | 17,618 | |||||||||||
Total assets | $ | 10,690,479 | $ | 78,787 | $ | 10,769,266 | $ | 9,833,721 | $ | 72,915 | $ | 9,906,636 | |||||||||||
Total deposits | $ | 6,418,810 | $ | 623,649 | $ | 7,042,459 | $ | 6,627,061 | $ | 708,419 | $ | 7,335,480 | |||||||||||
Total non-deposit liabilities | $ | 2,759,156 | $ | 48,563 | $ | 2,807,719 | $ | 1,660,967 | $ | 30,372 | $ | 1,691,339 | |||||||||||
Community Business Banking: | ||||||||||||||||||||
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | ||||||||||||||||
Interest income (1) | $ | 92,554 | $ | 94,407 | $ | 95,585 | $ | 91,107 | $ | 78,832 | ||||||||||
Interest expense | 31,917 | 29,304 | 30,250 | 25,228 | 20,656 | |||||||||||||||
Net interest income | 60,637 | 65,103 | 65,335 | 65,879 | 58,176 | |||||||||||||||
Provision for loan losses | 1,874 | 179 | 1,874 | 535 | 3,050 | |||||||||||||||
Non-interest income | 8,439 | 8,200 | 4,190 | 6,971 | 5,427 | |||||||||||||||
Non-interest expense | 34,331 | 33,900 | 33,990 | 30,567 | 30,147 | |||||||||||||||
Income before income tax expense | 32,871 | 39,224 | 33,661 | 41,748 | 30,406 | |||||||||||||||
Income tax expense | 7,728 | 13,369 | 18,999 | 14,493 | 6,116 | |||||||||||||||
Net income | 25,143 | 25,855 | 14,662 | 27,255 | 24,290 | |||||||||||||||
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | |||||||||||||||
Net income available to common shareholders | $ | 21,528 | $ | 22,240 | $ | 11,047 | $ | 23,640 | $ | 20,675 | ||||||||||
Basic earnings per common share | $ | 0.69 | $ | 0.72 | $ | 0.36 | $ | 0.77 | $ | 0.68 | ||||||||||
Diluted earnings per common share | $ | 0.67 | $ | 0.68 | $ | 0.34 | $ | 0.73 | $ | 0.63 | ||||||||||
BankMobile: | ||||||||||||||||||||
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | ||||||||||||||||
Interest income (1) | $ | 4,410 | $ | 3,212 | $ | 2,700 | $ | 2,745 | $ | 4,262 | ||||||||||
Interest expense | 16 | 15 | 16 | 18 | 20 | |||||||||||||||
Net interest income | 4,394 | 3,197 | 2,684 | 2,727 | 4,242 | |||||||||||||||
Provision for loan losses | 243 | 652 | 478 | — | — | |||||||||||||||
Non-interest income | 12,471 | 10,025 | 12,587 | 10,786 | 16,479 | |||||||||||||||
Non-interest expense | 17,949 | 19,373 | 25,801 | 19,212 | 18,371 | |||||||||||||||
(Loss) income before income tax (benefit) expense | (1,327 | ) | (6,803 | ) | (11,008 | ) | (5,699 | ) | 2,350 | |||||||||||
Income tax (benefit) expense | (326 | ) | (2,563 | ) | (4,100 | ) | (2,166 | ) | 893 | |||||||||||
Net (loss) income available to common shareholders | $ | (1,001 | ) | $ | (4,240 | ) | $ | (6,908 | ) | $ | (3,533 | ) | $ | 1,457 | ||||||
Basic (loss) earnings per common share | $ | (0.04 | ) | $ | (0.14 | ) | $ | (0.23 | ) | $ | (0.11 | ) | $ | 0.05 | ||||||
Diluted (loss) earnings per common share | $ | (0.03 | ) | $ | (0.13 | ) | $ | (0.21 | ) | $ | (0.11 | ) | $ | 0.04 | ||||||
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES | |||||||||
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED |
Adjusted Net Income to Common Shareholders - Community Business Banking Segment Only | ||||||||||||||||||||||||||||||||||
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | ||||||||||||||||||||||||||||||
USD | Per share | USD | Per share | USD | Per share | USD | Per share | USD | Per share | |||||||||||||||||||||||||
GAAP net income to common shareholders | $ | 21,528 | $ | 0.67 | $ | 22,240 | $ | 0.68 | $ | 11,047 | $ | 0.34 | $ | 23,640 | $ | 0.73 | $ | 20,675 | $ | 0.63 | ||||||||||||||
Reconciling items (after tax): | ||||||||||||||||||||||||||||||||||
Loss of deferred tax asset for Religare impairment | — | — | — | — | 4,898 | 0.15 | — | — | — | — | ||||||||||||||||||||||||
Religare impairment - excluding loss of deferred tax asset considered above | — | — | — | — | 8,036 | 0.25 | 1,758 | 0.05 | (1,786 | ) | (0.05 | ) | ||||||||||||||||||||||
Gains on investment securities | (10 | ) | — | (170 | ) | — | (3,356 | ) | (0.10 | ) | (1,942 | ) | (0.06 | ) | — | — | ||||||||||||||||||
Adjusted net income to common shareholders | $ | 21,518 | $ | 0.67 | $ | 22,070 | $ | 0.68 | $ | 20,625 | $ | 0.64 | $ | 23,456 | $ | 0.72 | $ | 18,889 | $ | 0.58 |
Return on Tangible Common Equity - Community Business Banking Segment Only | |||||||
Q1 2018 | Q1 2017 | ||||||
GAAP net income to common shareholders | $ | 21,528 | $ | 20,675 | |||
Total shareholder's equity | 887,192 | 878,114 | |||||
Reconciling Items: | |||||||
Preferred stock | (217,471 | ) | (217,471 | ) | |||
Goodwill & other intangibles | (3,630 | ) | (3,636 | ) | |||
Tangible common equity | $ | 666,091 | $ | 657,007 | |||
Return on tangible common equity | 13.11 | % | 12.76 | % | |||
Net Interest Margin, tax equivalent | |||||||||||||||||||
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | |||||||||||||||
GAAP Net interest income | $ | 65,031 | $ | 68,300 | $ | 68,019 | $ | 68,606 | $ | 62,418 | |||||||||
Tax-equivalent adjustment | 171 | 245 | 203 | 104 | 93 | ||||||||||||||
Net interest income tax equivalent | $ | 65,202 | $ | 68,545 | $ | 68,222 | $ | 68,710 | $ | 62,511 | |||||||||
Average total interest earning assets | $ | 9,881,220 | $ | 9,758,987 | $ | 10,352,394 | $ | 9,893,785 | $ | 9,266,639 | |||||||||
Net interest margin, tax equivalent | 2.67 | % | 2.79 | % | 2.62 | % | 2.78 | % | 2.73 | % | |||||||||
Tangible Common Equity to Tangible Assets | |||||||||||||||||||
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | |||||||||||||||
GAAP - Total Shareholders' Equity | $ | 919,088 | $ | 920,964 | $ | 910,642 | $ | 910,289 | $ | 879,817 | |||||||||
Reconciling Items: | |||||||||||||||||||
Preferred Stock | (217,471 | ) | (217,471 | ) | (217,471 | ) | (217,471 | ) | (217,471 | ) | |||||||||
Goodwill and Other Intangibles | (17,477 | ) | (16,295 | ) | (16,604 | ) | (17,615 | ) | (17,618 | ) | |||||||||
Tangible Common Equity | $ | 684,140 | $ | 687,198 | $ | 676,567 | $ | 675,203 | $ | 644,728 | |||||||||
Total Assets | $ | 10,769,266 | $ | 9,839,555 | $ | 10,471,829 | $ | 10,883,548 | $ | 9,906,636 | |||||||||
Reconciling Items: | |||||||||||||||||||
Goodwill and Other Intangibles | (17,477 | ) | (16,295 | ) | (16,604 | ) | (17,615 | ) | (17,618 | ) | |||||||||
Tangible Assets | $ | 10,751,789 | $ | 9,823,260 | $ | 10,455,225 | $ | 10,865,933 | $ | 9,889,018 | |||||||||
Tangible Common Equity to Tangible Assets | 6.36 | % | 7.00 | % | 6.47 | % | 6.21 | % | 6.52 | % | |||||||||
Tangible Book Value per Common Share | |||||||||||||||||||
Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | |||||||||||||||
GAAP - Total Shareholders' Equity | $ | 919,088 | $ | 920,964 | $ | 910,642 | $ | 910,289 | $ | 879,817 | |||||||||
Reconciling Items: | |||||||||||||||||||
Preferred Stock | (217,471 | ) | (217,471 | ) | (217,471 | ) | (217,471 | ) | (217,471 | ) | |||||||||
Goodwill and Other Intangibles | (17,477 | ) | (16,295 | ) | (16,604 | ) | (17,615 | ) | (17,618 | ) | |||||||||
Tangible Common Equity | $ | 684,140 | $ | 687,198 | $ | 676,567 | $ | 675,203 | $ | 644,728 | |||||||||
Common shares outstanding | 31,466,271 | 31,382,503 | 30,787,632 | 30,730,784 | 30,636,327 | ||||||||||||||
Tangible Book Value per Common Share | $ | 21.74 | $ | 21.90 | $ | 21.98 | $ | 21.97 | $ | 21.04 | |||||||||
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