WEST READING, Pa.–(BUSINESS WIRE)–$CUBI #Banking–Customers Bancorp, Inc. (NYSE:CUBI):

Second Quarter 2025 Highlights

Q2 2025 net income available to common shareholders was $55.8 million, or $1.73 per diluted share; ROAA was 1.09% and ROCE was 12.79%.
Q2 2025 core earnings*¹ were $58.1 million, or $1.80 per diluted share; Core ROAA* was 1.10% and Core ROCE* was 13.32%.
Total loans and leases held for investment grew by $319.0 million, or 2.1%, in Q2 2025 from Q1 2025.
Total deposits increased by $43.1 million or 0.2% in Q2 2025 from Q1 2025.
Q2 2025 net interest margin, tax equivalent (“NIM”) was 3.27%, compared to Q1 2025 NIM of 3.13%, an increase of 14 basis points, primarily due to higher interest income from loan growth.
Ratio of non-performing assets to total assets was 0.27% at June 30, 2025 compared to 0.26% at March 31, 2025.
Q2 2025 provision for credit losses was $20.8 million compared to $28.3 million in Q1 2025.
The allowance for credit losses on loans and leases equaled 518% of non-performing loans at June 30, 2025, compared to 324% at March 31, 2025.
CET 1 ratio of 12.0%² at June 30, 2025, compared to 11.7% at March 31, 2025.
TCE / TA ratio* of 7.9% at June 30, 2025, compared to 7.7% at March 31, 2025.
Q2 2025 book value per share and tangible book value per share* both grew by approximately $1.50, or 2.7% over Q1 2025, or 11% annualized, with a tangible book value per share* of $56.24 at June 30, 2025.
Redeemed all outstanding shares ($57.5 million) of our Series E Preferred Stock on June 16, 2025.


* 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.
¹Excludes loss on redemption of preferred stock of $1.9 million, pre-tax losses on investment securities of $1.8 million, loan program termination fees of $1.0 million and unrealized gain on loans held for sale of $0.3 million.
²Regulatory capital ratios as of June 30, 2025 are estimates.

CEO Commentary

“We are pleased to share our second quarter results that highlight the company’s continued execution of its strategic priorities and underscore our success in growing franchise value. And importantly, with our customer-centric mindset and commitment to service provided by our extraordinary colleagues, we are here to serve our clients as the business environment continues to evolve,” said Customers Bancorp Chairman and CEO Jay Sidhu.

“In the second quarter, we demonstrated the strength of our unique business model. The impact can be seen in a 14 basis points increase in our net interest margin in Q2 2025 compared to last quarter as we continue to source loans at attractive yields and manage our interest expenses.

Deposit focused teams we have recruited since March 2023 managed $2.4 billion or 13% of total deposits. Enhanced by their efforts, we’ve increased commercial deposit accounts by approximately 60% since year end 2022, adding granular and sticky relationships while significantly lowering our cost of deposits, increasing our non-interest bearing deposits, and driving franchise value. We believe the company is extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.

“Our Q2 2025 GAAP earnings were $55.8 million, or $1.73 per diluted share, and core earnings* were $58.1 million, or $1.80 per diluted share. We maintain a strong liquidity position, with $8.6 billion of liquidity immediately available, which covers approximately 150% of uninsured deposits¹ and our loan to deposit ratio was 81%, at June 30, 2025. Total loans and leases held for investment grew by $319.0 million driven by strong commercial loan growth of $360.7 million led by growth in our existing specialized lending verticals. Asset quality remains strong with our NPA ratio at just 0.27% of total assets and reserve levels are robust at 518% of total non-performing loans at the end of Q2 2025. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. Tangible Book Value per share* grew to $56.24 and our TCE / TA ratio* increased by 20 basis points to 7.9%. This year three new teams have joined the Bank and the recruitment pipeline remains strong. We believe that our unique strategy, the investments we have continued to make, and the exceptional talent across our organization position us strongly for continued success in 2025 and beyond,” 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.
¹Uninsured deposits (estimate) of $7.4 billion to be reported on the Bank’s call report, less deposits of $1.6 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $116.0 million.

Financial Highlights

	At or Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			Increase (Decrease)
Profitability Metrics:
Net income available for common shareholders	$	55,846		$	9,523		$	46,323		486.4	%
Diluted earnings per share	$	1.73		$	0.29		$	1.44		496.6	%
Core earnings*	$	58,147		$	50,002		$	8,145		16.3	%
Adjusted core earnings*	$	58,147		$	50,002		$	8,145		16.3	%
Core earnings per share*	$	1.80		$	1.54		$	0.26		16.9	%
Adjusted core earnings per share*	$	1.80		$	1.54		$	0.26		16.9	%
Return on average assets (“ROAA”)		1.09	%		0.23	%		0.86
Core ROAA*		1.10	%		0.97	%		0.13
Adjusted core ROAA*		1.10	%		0.97	%		0.13
Return on average common equity (“ROCE”)		12.79	%		2.23	%		10.56
Core ROCE*		13.32	%		11.72	%		1.60
Adjusted core ROCE*		13.32	%		11.72	%		1.60
Net interest margin, tax equivalent		3.27	%		3.13	%		0.14
Yield on loans (Loan yield)		6.61	%		6.57	%		0.04
Cost of deposits		2.85	%		2.82	%		0.03
Efficiency ratio		51.23	%		52.94	%		(1.71	)
Core efficiency ratio*		51.56	%		52.69	%		(1.13	)
Adjusted core efficiency ratio*		51.56	%		52.69	%		(1.13	)
Balance Sheet Trends:
Total assets	$	22,550,800		$	22,423,044		$	127,756		0.6	%
Total cash and investment securities	$	6,234,043		$	6,424,406		$	(190,363	)	(3.0	)%
Total loans and leases	$	15,412,400		$	15,097,968		$	314,432		2.1	%
Non-interest bearing demand deposits	$	5,481,065		$	5,552,605		$	(71,540	)	(1.3	)%
Total deposits	$	18,976,018		$	18,932,925		$	43,093		0.2	%
Capital Metrics:
Common Equity to Total Assets		7.9	%		7.7	%		0.2
Tangible Common Equity to Tangible Assets*		7.9	%		7.7	%		0.2
Book Value per common share	$	56.36		$	54.85		$	1.51		2.8	%
Tangible Book Value per common share*	$	56.24		$	54.74		$	1.50		2.7	%
Common equity Tier 1 capital ratio ⁽¹⁾		12.0	%		11.7	%		0.3
Total risk based capital ratio ⁽¹⁾		14.5	%		14.6	%		(0.1	)

(1) Regulatory capital ratios as of June 30, 2025 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Financial Highlights

	At or Three Months Ended											Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			June 30, 2024			Increase (Decrease)					June 30, 2025			June 30, 2024			Increase (Decrease)
Profitability Metrics:
Net income available for common shareholders	$	55,846		$	54,300		$	1,546		2.8	%	$	65,369		$	100,226		$	(34,857	)	(34.8	)%
Diluted earnings per share	$	1.73		$	1.66		$	0.07		4.2	%	$	2.02		$	3.06		$	(1.04	)	(34.0	)%
Core earnings*	$	58,147		$	48,567		$	9,580		19.7	%	$	108,149		$	95,099		$	13,050		13.7	%
Adjusted core earnings*	$	58,147		$	48,567		$	9,580		19.7	%	$	108,149		$	103,704		$	4,445		4.3	%
Core earnings per share*	$	1.80		$	1.49		$	0.31		20.8	%	$	3.33		$	2.90		$	0.43		14.8	%
Adjusted core earnings per share*	$	1.80		$	1.49		$	0.31		20.8	%	$	3.33		$	3.16		$	0.17		5.4	%
Return on average assets (“ROAA”)		1.09	%		1.11	%		(0.02	)				0.67	%		1.02	%		(0.35	)
Core ROAA*		1.10	%		1.00	%		0.10					1.04	%		0.98	%		0.06
Adjusted core ROAA*		1.10	%		1.00	%		0.10					1.04	%		1.06	%		(0.02	)
Return on average common equity (“ROCE”)		12.79	%		13.85	%		(1.06	)				7.57	%		12.98	%		(5.41	)
Core ROCE*		13.32	%		12.39	%		0.93					12.53	%		12.32	%		0.21
Adjusted core ROCE*		13.32	%		12.39	%		0.93					12.53	%		13.43	%		(0.90	)
Net interest margin, tax equivalent		3.27	%		3.29	%		(0.02	)				3.20	%		3.20	%		—
Yield on loans (Loan yield)		6.61	%		7.17	%		(0.56	)				6.59	%		7.11	%		(0.52	)
Cost of deposits		2.85	%		3.40	%		(0.55	)				2.84	%		3.43	%		(0.59	)
Efficiency ratio		51.23	%		51.87	%		(0.64	)				52.06	%		53.16	%		(1.10	)
Core efficiency ratio*		51.56	%		53.47	%		(1.91	)				52.11	%		53.85	%		(1.74	)
Adjusted core efficiency ratio*		51.56	%		53.47	%		(1.91	)				52.11	%		50.79	%		1.32
Balance Sheet Trends:
Total assets	$	22,550,800		$	20,942,975		$	1,607,825		7.7	%
Total cash and investment securities	$	6,234,043		$	6,523,036		$	(288,993	)	(4.4	)%
Total loans and leases	$	15,412,400		$	13,632,639		$	1,779,761		13.1	%
Non-interest bearing demand	$	5,481,065		$	4,474,862		$	1,006,203		22.5	%
Total deposits	$	18,976,018		$	17,678,093		$	1,297,925		7.3	%
Capital Metrics:
Common Equity to Total Assets		7.9	%		7.7	%		0.2
Tangible Common Equity to Tangible Assets*		7.9	%		7.7	%		0.2
Book Value per common share	$	56.36		$	50.81		$	5.55		10.9	%
Tangible Book Value per common share*	$	56.24		$	50.70		$	5.54		10.9	%
Common equity Tier 1 capital ratio ⁽¹⁾		12.0	%		12.8	%		(0.8	)
Total risk based capital ratio ⁽¹⁾		14.5	%		15.8	%		(1.3	)

(1) Regulatory capital ratios as of June 30, 2025 are estimates.
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document.

Key Balance Sheet Trends

Loans and Leases

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


(Dollars in thousands)	June 30, 2025		% of Total		March 31, 2025		% of Total		June 30, 2024		% of Total
Loans and Leases Held for Investment
Commercial:
Commercial & industrial:
Specialized lending	$	6,454,661	42.0	%	$	6,070,093	40.3	%	$	5,528,745	41.7	%
Other commercial & industrial		1,037,684	6.8			1,062,933	7.0			1,092,146	8.2
Mortgage finance		1,625,764	10.6			1,477,896	9.8			1,122,812	8.5
Multifamily		2,247,282	14.6			2,322,123	15.4			2,067,332	15.6
Commercial real estate owner occupied		1,065,006	6.9			1,139,126	7.6			805,779	6.1
Commercial real estate non-owner occupied		1,497,385	9.7			1,438,906	9.6			1,202,606	9.1
Construction		98,626	0.6			154,647	1.0			163,409	1.2
Total commercial loans and leases		14,026,408	91.2			13,665,724	90.7			11,982,829	90.4
Consumer:
Residential		520,570	3.4			496,772	3.3			481,503	3.6
Manufactured housing		30,287	0.2			31,775	0.2			35,901	0.3
Installment:
Personal		457,728	3.0			493,276	3.3			474,481	3.6
Other		344,444	2.2			372,892	2.5			282,201	2.1
Total installment loans		802,172	5.2			866,168	5.8			756,682	5.7
Total consumer loans		1,353,029	8.8			1,394,715	9.3			1,274,086	9.6
Total loans and leases held for investment	$	15,379,437	100.0	%	$	15,060,439	100.0	%	$	13,256,915	100.0	%

Loans Held for Sale
Residential	$	5,180	15.7	%	$	1,465	3.9	%	$	2,684	0.7	%
Installment:
Personal		27,682	84.0			36,000	95.9			125,598	33.4
Other		101	0.3			64	0.2			247,442	65.9
Total installment loans		27,783	84.3			36,064	96.1			373,040	99.3
Total loans held for sale	$	32,963	100.0	%	$	37,529	100.0	%	$	375,724	100.0	%

Total loans and leases portfolio	$	15,412,400			$	15,097,968			$	13,632,639

Loans and Leases Held for Investment

Loans and leases held for investment were $15.4 billion at June 30, 2025, up $319 million, or 2%, from March 31, 2025. Specialized lending increased by $385 million, or 6% quarter-over-quarter, to $6.5 billion. Mortgage finance loans increased by $148 million, or 10% to $1.6 billion. Non-owner occupied commercial real estate loans increased by $58 million, or 4% to $1.5 billion. These increases were partially offset by decreases in multifamily loans of $75 million, or 3% to $2.2 billion, owner-occupied commercial real estate loans of $74 million, or 7% to $1.1 billion, consumer installment loans of $64 million, or 7% to $802 million and construction loans of $56 million, or 36% to $99 million.

Loans and leases held for investment of $15.4 billion at June 30, 2025 were up $2.1 billion, or 16%, year-over-year. Specialized lending increased by $926 million, or 17% year-over-year. Mortgage finance loans increased by $503 million. Non-owner occupied commercial real estate loans increased by $295 million. Owner-occupied commercial real estate loans increased by $259 million. Multifamily loans increased by $180 million. Consumer installment loans increased $45 million, inclusive of the transfer from loans held for sale in Q1 2025. These increases were partially offset by decreases in construction loans of $65 million and other commercial and industrial loans of $54 million.

Loans Held for Sale

Loans held for sale decreased $5 million quarter-over-quarter, and were $33 million at June 30, 2025.

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									At or Three Months Ended
(Dollars in thousands)	June 30, 2025			March 31, 2025			Increase (Decrease)			June 30, 2025			June 30, 2024			Increase (Decrease)
Allowance for credit losses on loans and leases	$	147,418		$	141,076		$	6,342		$	147,418		$	132,436		$	14,982
Provision (benefit) for credit losses on loans and leases	$	18,457		$	21,445		$	(2,988	)	$	18,457		$	17,851		$	606
Net charge-offs from loans held for investment	$	13,115		$	17,144		$	(4,029	)	$	13,115		$	18,711		$	(5,596	)
Annualized net charge-offs to average loans and leases		0.35	%		0.48	%					0.35	%		0.56	%
Coverage of credit loss reserves for loans and leases held for investment		1.07	%		1.04	%					1.07	%		1.08	%

Net charge-offs decreased with $13.1 million in Q2 2025, compared to $17.1 million in Q1 2025, and $18.7 million in Q2 2024.

Provision (benefit) for Credit Losses

	Three Months Ended							Three Months Ended
(Dollars in thousands)	June 30, 2025		March 31, 2025		Increase (Decrease)			June 30, 2025		June 30, 2024		Increase (Decrease)
Provision (benefit) for credit losses on loans and leases	$	18,457	$	21,445	$	(2,988	)	$	18,457	$	17,851	$	606
Provision (benefit) for credit losses on available for sale debt securities		2,324		6,852		(4,528	)		2,324		270		2,054
Provision for credit losses		20,781		28,297		(7,516	)		20,781		18,121		2,660
Provision (benefit) for credit losses on unfunded commitments		1,594		1,208		386			1,594		1,594		—
Total provision for credit losses	$	22,375	$	29,505	$	(7,130	)	$	22,375	$	19,715	$	2,660

The provision for credit losses on loans and leases in Q2 2025 was $18.5 million, compared to $21.4 million in Q1 2025. The lower provision in Q2 2025 was primarily due to lower balances in the consumer installment loan portfolio, partially offset by slight deterioration in macroeconomic forecasts and an increase in commercial loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q2 2025 was $2.3 million, compared to $6.9 million in Q1 2025.

The provision for credit losses on loans and leases in Q2 2025 was $18.5 million, compared to $17.9 million in Q2 2024. The higher provision in Q2 2025 compared to the year ago period was primarily due to slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q2 2025 was $2.3 million compared to $0.3 million in Q2 2024.

Asset Quality

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

(Dollars in thousands)	June 30, 2025			March 31, 2025			Increase (Decrease)			June 30, 2025			June 30, 2024			Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)	$	28,443		$	43,513		$	(15,070	)	$	28,443		$	47,380		$	(18,937	)
Non-performing assets	$	60,778		$	57,960		$	2,818		$	60,778		$	47,444		$	13,334
NPLs to total loans and leases		0.18	%		0.29	%					0.18	%		0.35	%
Reserves to NPLs		518.29	%		324.22	%					518.29	%		279.52	%
NPAs to total assets		0.27	%		0.26	%					0.27	%		0.23	%

Loans and leases ⁽¹⁾ risk ratings:
Commercial loans and leases
Pass	$	12,047,656		$	11,815,403		$	232,253		$	12,047,656		$	10,500,922		$	1,546,734
Special Mention		174,587			189,155			(14,568	)		174,587			170,014			4,573
Substandard		256,849			276,018			(19,169	)		256,849			270,898			(14,049	)
Total commercial loans and leases		12,479,092			12,280,576			198,516			12,479,092			10,941,834			1,537,258
Consumer loans
Performing		1,209,377			1,242,753			(33,376	)		1,209,377			1,256,816			(47,439	)
Non-performing		20,298			13,803			6,495			20,298			17,270			3,028
Total consumer loans		1,229,675			1,256,556			(26,881	)		1,229,675			1,274,086			(44,411	)
Loans and leases receivable ⁽¹⁾	$	13,708,767		$	13,537,132		$	171,635		$	13,708,767		$	12,215,920		$	1,492,847
(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, loans receivable, installment, 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 an important common denominator: a 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 strong despite a challenging economic and interest rate environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, management employs a bottom-up data driven approach to analyze the commercial portfolio.

Total consumer installment loans held for investment at June 30, 2025 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 $44.9 million. At June 30, 2025, the consumer installment portfolio had the following characteristics: average original FICO score of 739, average debt-to-income of 20% and average borrower income of $106 thousand.

Non-performing loans at June 30, 2025 decreased to 0.18% of total loans and leases, compared to 0.29% at March 31, 2025 and 0.35% at June 30, 2024.

Investment Securities

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

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

(Dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024
Debt securities, available for sale	$	1,846,566	$	2,024,437	$	2,477,758
Equity securities		30,840		33,118		33,892
Investment securities, at fair value		1,877,406		2,057,555		2,511,650
Debt securities, held to maturity		853,126		938,161		962,799
Total investment securities portfolio	$	2,730,532	$	2,995,716	$	3,474,449

At June 30, 2025, the AFS debt securities portfolio had a spot yield of 5.78%, an effective duration of approximately 3.0 years, and approximately 23% are variable rate. Additionally, 64% of the AFS securities portfolio was AAA rated at June 30, 2025.

At June 30, 2025, the HTM debt securities portfolio represented only 3.8% of total assets at June 30, 2025, had a spot yield of 3.79% and an effective duration of approximately 4.2 years. Additionally, at June 30, 2025, approximately 54% of the HTM securities were AAA rated and $0.3 billion were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

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

(Dollars in thousands)	June 30, 2025		% of Total		March 31, 2025		% of Total		June 30, 2024		% of Total
Demand, non-interest bearing	$	5,481,065	28.9	%	$	5,552,605	29.3	%	$	4,474,862	25.3	%
Demand, interest bearing		4,912,839	25.9			5,137,961	27.2			5,894,056	33.4
Total demand deposits		10,393,904	54.8			10,690,566	56.5			10,368,918	58.7
Savings		1,375,072	7.2			1,327,854	7.0			1,573,661	8.9
Money market		4,206,516	22.2			4,057,458	21.4			3,539,815	20.0
Time deposits		3,000,526	15.8			2,857,047	15.1			2,195,699	12.4
Total deposits	$	18,976,018	100.0	%	$	18,932,925	100.0	%	$	17,678,093	100.0	%

Total deposits increased $43 million to $19.0 billion at June 30, 2025 as compared to the prior quarter. Money market deposits increased $149 million, or 4%, to $4.2 billion, time deposits increased $143 million, or 5%, to $3.0 billion and savings deposits increased $47 million, or 4%, to $1.4 billion. These increases were offset by decreases in interest bearing demand deposits of $225 million, or 4%, to $4.9 billion, which included the reduction of approximately $187 million of deposits serviced by BM Technologies, Inc. primarily from the transfer of deposits to a new partner bank during the quarter, and non-interest bearing demand deposits of $72 million, or 1%, to $5.5 billion. The total average cost of deposits increased by 3 basis points to 2.85% in Q2 2025 from 2.82% in the prior quarter. Total estimated uninsured deposits were $5.7 billion¹, or 30% of total deposits (inclusive of accrued interest) at June 30, 2025 with immediately available liquidity covering approximately 150% of these deposits.

“The planned reduction in deposits serviced by BM Technologies, Inc had an approximately 3 basis point impact on total average cost of deposits and an approximately 6 basis point impact on total interest bearing cost of deposits in the quarter. Adjusting for this impact, total average deposit costs would have been flat and interest bearing deposit costs would have declined by 5 basis points in the quarter from the continued progress on our deposit remix efforts,” stated Customers Bancorp President Sam Sidhu.


¹ Uninsured deposits (estimate) of $7.4 billion to be reported on the Bank’s call report, less deposits of $1.6 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $116 million.