Customers Bancorp (CUBI) Discloses Favorable Mid-Quarter Financial Trends

Customers Bancorp (NYSE: CUBI) (“the Company”) is hosting a special webcast at 10 a.m. EST today with the investment community to discuss the pending divestiture of BankMobile Technologies, Inc. and offer commentary regarding the Company’s mid-quarter financial performance. Registration information for the webcast and other details are provided later in this release.

Customers Bancorp is pleased to report that its financial performance quarter-to-date has remained favorable, despite significant headwinds stemming from the pandemic and related economic dislocation. Consistent with our expectation, asset quality has been stable as evidenced, most notably, by trends in nonperforming assets and net charge-offs. Nonperforming assets were $69.3 million or 0.38% of total assets at November 30, 2020, up modestly from $63.7 million or 0.34% of total assets at September 30, 2020. The pace of net charge-offs has slowed recently, totaling only $5.3 million in October and November 2020 combined. Nearly all of these charge-offs were in the consumer installment portfolio, with virtually none taken in the commercial loan portfolio. The Company also continues to make progress in reducing commercial, consumer, and residential mortgage deferments. Total deferrals declined to an estimated $244 million or 2.2% of total loans and leases excluding PPP loans at November 30, 2020 from $302 million or 2.6% of total loans and leases excluding PPP loans at the end of 3Q20.

“Rigorous underwriting standards and loan portfolio management have been central to the Customers Bank story from the beginning. And as a result, we expect our asset quality to continue to perform in line with or better than peers during this challenging economic environment,” commented Customers Bancorp Chairman and CEO Jay Sidhu.

Other mid-quarter financial highlights include an acceleration in the recognition of deferred origination fees from Paycheck Protection Plan (“PPP”) loans. In October and November 2020, the Company recognized $11.8 million in PPP deferred origination fees, including approximately $4.0 million from loan forgiveness. In addition, excluding the impact of PPP loans, our net interest margin is forecast to expand to about 3.00% in the fourth quarter of 2020 from 2.86% in the prior quarter. “Over the next several quarters, we think we are well positioned to meaningfully outperform our peers with respect to the trajectory of our net interest margin,” said Carla Leibold, Customer Bancorp’s CFO.

Special Webcast Links

Customers Bancorp has scheduled a webcast with investors and analysts for today (Friday, December 11, 2020) at 10 a.m. EST. BankMobile Management will make a presentation on the webcast and answer any questions.

Register online for the webcast at: https://event.on24.com/wcc/r/2922293/D184BC40F18D6B01AC9DEC30122964FF. The live webcast and on-demand replay will be made available for registrants at https://www.customersbank.com/investor-relations/.

You May Also Be Interested In

• Nike updates Q4 fiscal 2026 outlook with tariff refund benefit
• Neuronetics promotes CTO to EVP, General Manager of Greenbrook
• Takeda names Julie Kim as president and CEO after shareholder vote