WEST READING, Pa.--(BUSINESS WIRE)--Customers Bancorp, Inc. (NYSE: CUBI) the parent company of Customers Bank and its operating division BankMobile, today reported second quarter 2020 net income to common shareholders of $19.1 million, or $0.61 per diluted share. Core earnings (a non-GAAP measure) for Q2 2020 totaled $19.2 million, or $0.61 per diluted share.

“We are very pleased with our financial and business results to date in a difficult environment,” said Customers Bancorp Chairman and CEO Jay Sidhu. “But foremost, I am so pleased and proud to partner with such talented and hard-working team members at a time like this. We did not miss a beat in delivering tremendous service to our clients. And, we overcame tremendous obstacles to give access to Paycheck Protection Program loans to approximately 100,000 small businesses and non-profits. Working nearly around the clock, team members from every department worked with clients to finish loan applications to preserve the jobs of about 1 million Americans. Customers is poised for continued short-term and long-term improvements.”

In light of the COVID-19 public health crisis, Customers immediately responded and implemented the following:

Support for Team Members:

• 85% of our team members are currently working remotely and are expected to continue working remotely until a vaccine is developed;
• Special pay considerations, bonuses, additional PTO for essential front line team members;
• No furloughs; team members are at 100% pay;
• Zero-interest loans up to $2,500 are available to assist team members and their families facing challenges due to COVID-19;
• A hotline is available for any team member to call for assistance of any kind; and
• Set up a $1 million education scholarship fund for children of our team members.

Support for Consumers and Businesses:

• Participated in the SBA Paycheck Protection Program resulting in approximately $5.2 billion in PPP loan originations to date;
• Implemented payment modification programs for COVID-19 impacted clients;
• Not reporting payment deferrals to credit bureaus; and waiving or reducing certain fees.

Support for Communities:

• Donations leading to more than $1 million to communities in our footprint for urgent basic needs;
• Additional re-targeting of existing sponsorship and grants to non-profit organizations to support COVID-19 related activities;
• Provided a webinar for the entire business community on how to survive and thrive during this pandemic crisis;
• Represented community bank perspectives on CNBC and social media; and
• Engaged with all team members and our communities in fighting biases, discrimination, and inequalities for all minorities.

Looking Ahead to the Remainder of 2020 and Beyond

Mr. Sidhu stated, "Before COVID-19, Customers was projecting core earnings per share of $3.00 for 2020 with continued improvement expected in all profitability metrics. However, rapid recent changes in economic activity introduce uncertainty to our near-term profitability. We have pivoted our strategy in this environment to building a stronger balance sheet and assisting our customers, team members and community to effectively deal with this crisis. Our provision will be higher, most customer activity will slow, and there will be disruptions, but we are also seeing positive trends in deposits and opportunities to serve customers through the SBA Paycheck Protection Program as well as other U.S. Treasury and Federal stimulus programs." Mr. Sidhu continued, "Despite all of this, we still are hoping to achieve about $3.00 per share in core earnings for 2020, subject to the amount of PPP revenues that will be recognized in 2020 and the economic environment in 2020. Longer term, we remain confident in our ability to achieve a run rate of about $6.00 per share in annual core earnings by the end of 2026."

6th Largest PPP Lender in U.S.; #1 Among Peers

Customers, directly or through fintech partnerships, originated approximately $5.2 billion in PPP loans to date, helping approximately 100,000 small businesses and non-profits across America and preserving about 1 million jobs. The expected revenue from this digital effort and fintech partnership resulted in Customers being the 6th largest PPP lender in the U.S., ranked by number of loans originated, and #1 position among its peer group. The average loan size disbursed by Customers was among the smallest by any bank, being approximately $50,000 per business, helping these small businesses across America save about 1 million jobs. This initiative is expected to result in Customers generating an estimated $100 million in origination fees to be recognized in interest income and an additional $10 million to $15 million in net interest income, materially boosting its tangible common equity to asset ratio. "This initiative is continuing," stated Sidhu.

Loan Portfolio Management during COVID-19 Crisis

Management's monitoring of the loan portfolio is the highest priority at Customers. In addition to very frequent client outreach and monitoring at the individual loan level, Customers has employed a bottoms up data driven approach to analyze its commercial portfolio. "Each borrower has been stressed for liquidity, debt capacity, and business profitability using forward looking views of their particular business sector, which sometimes reflect shock, reboot, and new normal scenarios. This data driven approach, completed with our traditional high touch approach with risk management processes best positions us to get out ahead of any deterioration in credit quality," Sidhu stated.

Here are some details about the loan portfolio with ending balances as of June 30, 2020 and deferment data presented as of July 24, 2020:

Commercial loan portfolio positioned well moving into COVID-19

• Significant portions of the portfolio represent lending activity to industries that have not been significantly impacted, or not impacted at all, such as Customers' mortgage warehouse and specialty finance lender finance portfolios, which represent 32% and 7%, respectively, of the total commercial loan portfolio, excluding PPP loans. Borrowers in these two segments have requested no deferrals and have no delinquencies.
• Exposure to industry segments significantly impacted by COVID-19 is not substantial. The energy and utilities exposure was only $79 million (77% are wind farms); $65 million in colleges and universities (with no deferments requested); $54 million in CRE retail sales exposure (mostly auto sales); $51 million in franchise restaurants and dining; and $24 million in entertainment only businesses.
• Hospitality portfolio is approximately $413 million (about 5% of total commercial loans, excluding PPP), with 73% requesting deferment. Approximately 20% of the portfolio is operating at 95%+ occupancy under government contracts for transitional housing. The portfolio has an average loan to value of 65% (generally based on appraised value at time of origination) with approximately 75% having full or partial recourse.
• Healthcare portfolio is approximately $290 million, comprised predominantly of skilled nursing, which has been deemed an essential business and through a number of federal and state actions has been provided immunity from liability for COVID-19 related deaths. No deferments have been requested and there are no delinquencies.
• Multi-family portfolio is highly seasoned, with an average vacancy rate of 3.4% and loan to value of 56% (generally based on appraised value at time of origination). 58% of the portfolio is in New York City, of which 69% is in rent controlled/regulated properties with a vacancy rate of only 1.8%. As of July 24, 2020, 10% of the portfolio was on 90-day deferment.
• Investment CRE has a DSCR of 2.22x and loan to value of 51% (generally based on appraised value at time of origination), with most of the portfolio housed in the New York, Philadelphia, and Boston metro and surrounding markets.

Steady decline in commercial deferment rates as COVID-19 has progressed

Customers' deferments have declined from a peak of about $1.2 billion, or about 13% of the commercial loan portfolio, to approximately $690 million, or about 8% of the commercial loan portfolio as of July 24, 2020.

Strong other consumer loan performance

• $1.3 billion other consumer loan portfolio outperforms industry peers with deferments dropping below 2% and 30+ DPD delinquency below 1%. Strong credit quality (83% 750+ FICO), low concentration in at risk job segments, and outstanding performance of CB Direct originations have resulted in solid results through end of 2Q.
• Other consumer loan portfolio being managed to zero growth and strengthening credit quality, by replacing run-off with CB Direct originations 700 FICO and above.

Aggressively addressing non-performing assets

Customers has been proactively addressing two large loans, which make up approximately 53% of non-performing assets as of June 30, 2020. Both of these assets were showing some weakness pre-COVID and Customers opted to take a proactive strategy in identifying and aggressively acting to address these two assets and move them off our balance sheet.

Laser focused on communicating with our borrowers

Undergoing an intensive and continuous portfolio management program that is laser focused on communicating with our borrowers, assessing their future prospects, and incorporating therein industry trends is Customers Bank's style. This program involves the entire senior management team and has been, and continues to be, performed from both a market and line of business perspective. This has enabled identification of problem credits early-on and allows us to accurately assess underlying borrower/portfolio risk and mitigate activities that will lead to increased exposure.

Stress testing

In addition to loan level stress testing, Customers also completed a thorough stress testing of its entire loan portfolio to base, moderate, and most severely adverse cases. "We are pleased to report that Customers remained well capitalized; with mitigating factors, under all those scenarios," stated Sidhu.

Status Report on Strategic Priorities Articulated at Analyst Day in October 2018, with Subsequent Updates

Improve Profitability: Top Quartile Profitability with 1.25% Core ROAA in 2-3 years

As stated during our 2018 Analysts Day in October 2018, Customers expects to remain focused on growing its core businesses, while improving margins, capital and profitability. Through favorable mix shifts in both assets and liabilities, while maintaining its superior credit quality culture and extreme focus on productivity improvement, Customers improved the overall quality of its balance sheet and deposit franchise, expanded its net interest margin, enhanced liquidity and remains relatively neutral to interest rate changes. The strategies articulated at the 2018 Analysts Day in October 2018 and subsequent progress through Q2 2020 are summarized below:

• Target ROAA in top quartile of peer group, which we expect will equate to a ROAA of 1.25% or higher over the next 2-3 years. ROAA was 0.62% in Q2 2020, up from Q1 2020 ROAA of 0.11% due to the decreases in interest expense on deposits driven by the Federal Reserve interest rate cuts of 150 basis points in March 2020 and in provision for credit losses on loans and leases, mostly due to a reduction in net charge-offs. The pre-tax and pre-provision adjusted ROAA (a non-GAAP measure) was 1.39% for Q2 2020, up 38 basis points from 1.01% in Q2 2019.
• Achieve NIM expansion to 2.75% or greater by Q4 2019, with full year 2019 NIM above 2.70%, through an expected shift in asset and funding mix. Actual results for 2019 were materially better, with full year 2019 NIM of 2.75%. NIM in Q2 2020 was 2.65%, down from 2.99% in Q1 2020 and up from 2.64% in Q2 2019. Since Q3 2018, Customers effectively restructured its balance sheet resulting in NIM expansion of 18 basis points. Net interest margin, excluding PPP loans, expected to remain on average between 2.9% and 3.0% for 2020.
• BankMobile growth and maturity was expected with profitability achieved by year end 2019. BankMobile reached profitability in Q3 2019 and maintained profitability in Q4 2019 and Q2 2020, and was also profitable in Q1 2020 on an adjusted pre-tax pre-provision basis (a non-GAAP measure). BankMobile's profitability in Q1 2020 was negatively impacted by increased CECL-related provision expense, the COVID-19 crisis, a legal reserve of $1 million related to the previously disclosed DOE matter, increased depreciation expense related to capitalized development costs for technology placed in service in 2019 and non-capitalizable technology-related expenses. Key strategic priorities for 2020 include keeping BankMobile profitable, and attempting to divest it by the end of 2020.
• Expense control. Customers' efficiency ratio was 58.44% in Q2 2020, down from 66.03% in Q1 2020 and 77.32% in Q2 2019. Improving operating efficiency is a high priority.
• Growth in core deposits and good quality higher-yielding loans. Demand Deposit Accounts ("DDAs") grew 97% year-over-year. Lower yielding multi-family loans decreased by $1.0 billion, or 33%, year-over-year and were replaced by higher yielding C&I loans and leases and other consumer loans, which had net growth of $515 million and $712 million year-over-year, respectively. Customers originated $4.8 billion of PPP loans during Q2 2020 and approximately $5.2 billion year to date.
• Maintain strong credit quality and superior risk management. Non-performing loans ("NPLs") were negatively impacted by two commercial real estate loans in northern New Jersey and Massachusetts, respectively. In spite of this, NPLs were only 0.56% of total loans and leases at June 30, 2020. Customers expects to resolve both of these credits during Q3 or Q4 2020. Reserves to NPLs at June 30, 2020 were 185% and the coverage ratio was 2.2% of loans and leases receivable, excluding PPP loans (a non-GAAP measure). The Bank is relatively neutral to interest rate changes at June 30, 2020. We remain very focused on a strong Risk Management culture throughout our company.
• Evaluate opportunities to redeem our preferred stock as it becomes callable. Redeeming all of the preferred stock as it becomes callable would result in an increase to our diluted earnings per share by approximately $0.46 annually, if not replaced. Given the current economic uncertainty stemming from the COVID-19 crisis, Customers will not call for redemption any preferred stock in 2020 or 2021.

Focus on Capital Allocation

Customers remains well capitalized by all regulatory measures. At the Customers Bank level, CET 1 ratio was 10.64% and total capital to risk weighted assets was 12.30% at June 30, 2020. "We continue to target reaching about a 7.00% tangible common equity ratio (a non-GAAP measure) organically by the end of 2020 for Customers Bancorp, from strong earnings and controlled balance sheet growth. Customers intends to fund all PPP loans by borrowing from the Federal Reserve PPP Liquidity Facility and pledging the PPP loans as collateral, eliminating any capital needs for any of its PPP loans. Since the average PPP loan on the books is approximately $50,000, we expect about 90% of our loans to be forgiven by the SBA," Sidhu commented. "As stated earlier, PPP initiatives by Customers Bank should result in over $100 million in origination revenues, adding materially to our tangible common equity to asset ratio," concluded Sidhu.

Net Interest Income

Net interest income totaled $92.0 million in Q2 2020, an increase of $10.7 million from Q1 2020, primarily due to a $3.0 billion increase in average interest-earning assets, mostly driven by PPP loan originations and increases in commercial loans to mortgage companies, partially offset by a 34 basis point decline in NIM (a non-GAAP measure) to 2.65%. Compared to Q1 2020, total loan yields decreased 117 basis points to 3.72%. The decrease primarily resulted from the origination of PPP loans, comprising 31% of the total loans and leases at June 30, 2020, yielding 1.71%, and the two Federal Reserve interest rate cuts for 150 basis points during March 2020 due to COVID-19. The cost of interest-bearing deposits in Q2 2020 similarly decreased by 71 basis points to 1.11% due to the interest rate cuts during March 2020. Borrowing costs excluding the impact of FRB PPP Liquidity Facility borrowings decreased by 154 basis points to 1.62% due to the decline in interest rates on short-term borrowings from the interest rate cuts. During Q2 2020, Customers obtained FRB PPP Liquidity Facility borrowings of $4.4 billion, costing 0.35%, to fund its PPP loan originations.

Q2 2020 net interest income increased $27.3 million from Q2 2019, primarily due to a $4.1 billion increase in average interest-earnings assets, primarily related to PPP loan originations, increases in other consumer loans, commercial loans to mortgage companies, and commercial and industrial loans, and one basis point of NIM expansion to 2.65%. Compared to Q2 2019, total loan yields decreased 90 basis points to 3.72%. The decrease primarily resulted from the originations of PPP loans, now comprising 31% of the total loans and leases at June 30, 2020, yielding 1.71%, and the Federal Reserve interest rate cuts for 225 basis points since August 2019.

Total loans and leases increased $5.6 billion, 57%, to $15.3 billion at June 30, 2020 compared to the year-ago period. Customers originated $4.8 billion in PPP loans directly or through fintech partnerships during Q2 2020. Additionally, loan mix improved year-over-year as mortgage warehouse loans increased $778 million to $2.8 billion, commercial and industrial loans and leases increased $515 million to $2.1 billion, commercial real estate non-owner occupied loans increased $86 million to $1.3 billion, and other consumer loans increased $712 million to $1.3 billion. These increases were offset in part by planned decreases in multi-family loans of $990 million to $2.0 billion and residential mortgages of $311 million to $353 million.

Total deposits increased $2.8 billion, or 34%, to $11.0 billion at June 30, 2020 compared to the year-ago period. Total demand deposits increased $2.2 billion, or 97%, to $4.5 billion, money market deposits increased $492 million, or 17%, to $3.4 billion, and savings deposits increased $615 million, or 116%, to $1.1 billion. These increases were offset in part by a decrease in time deposits of $568 million, or 23%, to $1.9 billion.

Risk Management, Provision and Credit Quality

Risk management is a critical component of how Customers creates long-term shareholder value, and Customers believes that asset quality is one of the most important risks in banking to be understood and managed. Customers believes that asset quality risks must be diligently addressed during good economic times with prudent underwriting standards so that when the economy deteriorates the bank's capital is sufficient to absorb all losses without threatening its ability to operate and serve its community and other constituents. Since mid-2019, Customers has been operating in a pre-recessionary environment assuming a recession was imminent in the foreseeable future. "Our Credit Administration Group and Market Presidents started analyzing their portfolios, in detail, and stressing them under adverse scenarios and either exiting or increasing the monitoring activities of higher risk credits. Customers' non-performing loans at June 30, 2020 were only 0.56% of total loans and leases, compared to the industry average non-performing loans of 1.01%, in the most recent period available. Our Q2 2020 non-performing loans were impacted by two commercial real estate credits, with both expected to be resolved during Q3 or Q4 2020, reducing our non-performing loans in future periods. Our expectation is superior asset quality performance in good times and in difficult years," said Mr. Sidhu.

The provision for credit losses on loans and leases in Q2 2020, which was calculated under the CECL accounting standard effective January 1, 2020, was $20.9 million, compared to $31.8 million in Q1 2020 and $5.3 million in Q2 2019. The decrease compared to Q1 2020 primarily resulted from a decline in net charge-offs, while the increase compared to Q2 2019 primarily resulted from the adoption of CECL and the impact of COVID-19. Net charge-offs for Q2 2020 were $10.3 million, or 32 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $18.7 million, or 79 basis points in Q1 2020, and $0.6 million, or 3 basis points in Q2 2019. The allowance for credit losses on loans and leases represented 2.2% of total loans and leases receivable, excluding PPP loans (a non-GAAP measure) at June 30, 2020, compared to 2.0% at March 31, 2020, and 0.6% at June 30, 2019. The allowance for credit losses for unfunded loan commitments is presented within accrued interest payable and other liabilities in the consolidated balance sheet. The Q2 2020 provision for credit losses for unfunded loan commitments was a credit of $0.4 million, compared to a provision of $0.8 million in Q1 2020, and is presented as part of other non-interest expense.

Non-Interest Income

Non-interest income totaled $22.2 million for Q2 2020, an increase of $0.3 million compared to Q1 2020. The increase in non-interest income primarily resulted from increases of $2.6 million in unrealized gain on equity securities issued by a foreign entity, $0.6 million in mortgage warehouse transactional fees, and $0.4 million in gain on sale of investment securities, offset in part by decreases of $2.8 million in other non-interest income and $0.3 million in interchange and card revenue. The increase in mortgage warehouse transactional fees primarily resulted from an increase in transaction volumes due to a decline in market interest rates. The increase in gain on sale of investment securities primarily related to gains realized from the sale of $30.0 million of corporate bonds and $6.3 million in non-agency guaranteed collateralized mortgage obligations in Q2 2020. The decrease in other non-interest income primarily resulted from a negative credit valuation adjustment of $1.8 million primarily resulting from an interest rate swap associated with a non-performing borrower, partially offset by changes in market interest rates, an unrealized loss on one loan held for sale of $1.5 million, and a decline in swap premiums of $1.2 million, offset by an increase in non-qualified retirement plan assets of $1.2 million due to market driven gains of those investments. The decrease in interchange and card revenue primarily resulted from lower activity volumes at BankMobile, principally due to COVID-19.

Non-interest income totaled $22.2 million in Q2 2020, an increase of $10.2 million compared to Q2 2019. The increase in non-interest income primarily resulted from a decrease of $7.5 million in loss realized upon the acquisition of certain interest-only GNMA securities in Q2 2019 and increases of $4.4 million in realized gain on sale of investment securities, $1.7 million in commercial lease income, $1.5 million in unrealized gain on equity securities issued by a foreign entity, $0.9 million in mortgage warehouse transactional fees, offset in part by a decreases of $5.3 million in other non-interest income and $0.3 million in interchange and card revenue. The decrease in loss realized upon the acquisition of certain interest-only GNMA securities resulted from a mortgage warehouse customer that unexpectedly ceased operations in Q2 2019. The increase in gains on sale of investment securities resulted from the sale of $30.0 million of corporate bonds and $6.3 million in non-agency guaranteed collateralized mortgage obligations in Q2 2020. The increase in commercial lease income primarily resulted from organic growth in commercial operating leases. The increase in mortgage warehouse transactional fees primarily resulted from increased refinancing activity driven by the decline in market interest rates. The decrease in non-interest income primarily resulted from a negative mark-to-market derivative credit valuation adjustment of $3.3 million, mostly due to market interest rates and resulting from an interest rate swap associated with a non-performing borrower, an unrealized loss on one loan held for sale of $1.5 million, and a decline in swap premiums of $0.9 million. The decrease in interchange and card revenue primarily resulted from lower activity volumes at BankMobile, principally due to COVID-19.

Non-Interest Expense

Non-interest expense totaled $63.5 million for Q2 2020, a decrease of $3.0 million compared to Q1 2020. The decrease in non-interest expense primarily resulted from decreases of $3.3 million in other non-interest expenses, $3.1 million in professional services, and $1.1 million in advertising and promotion, partially offset in part by increases of $3.0 million in salaries and employee benefits and $1.4 million in loan workout. The decrease in other non-interest expenses was driven by legal reserves of $1.0 million related to a partial settlement of the previously disclosed DOE matter in Q1 2020, a decrease in the provision for credit losses for unfunded commitments of $1.2 million, and a decline in expenses associated with our white label collaboration. The decrease in professional services was primarily driven by management's continued efforts to monitor and control expenses. The decrease in advertising and promotion was driven by decreases in promotional campaigns related to Customers' Digital Banking product and BankMobile and its white label collaboration. The increase in salaries and employee benefits was primarily driven by an increase in full time equivalents needed for future growth. The increase in loan workout was primarily driven by two commercial relationships that are expected to be resolved in the second half of 2020.

Non-interest expense totaled $63.5 million in Q2 2020, an increase of $3.9 million compared to Q2 2019. The increase in non-interest expense primarily resulted from increases of $4.4 million in salaries and employee benefits, $1.4 million in commercial lease depreciation, $1.2 million in loan workout, and $0.9 million in technology, communications and bank operations, offset in part by a decreases of $1.4 million in provision for operating losses, $1.2 million in professional services, $0.8 million in other non-interest expense, and $0.8 million in advertising and promotion. The increase in salaries and employee benefits was primarily driven by annual salary increases and an increase in full time equivalents to support future growth. The increase in commercial lease depreciation was primarily driven by the organic growth of the commercial operating lease portfolio. The increase in loan workout was primarily driven by two commercial relationships. The increase in technology, communications and bank operations primarily resulted from the continued investment in Customers' digital transformation initiatives. The decrease in provision for operating losses was primarily driven from initiatives implemented by management to reduce fraud and theft-based losses. The decrease in professional services was primarily driven by management's continued efforts to monitor and control expenses. The decrease in other non-interest expense was primarily driven by a decline in expenses associated with our white label collaboration. The decrease in advertising and promotion was primarily driven by decreases in promotional campaigns related to Customers' Digital Banking product and BankMobile and its white label collaboration.

Taxes

Customers' effective tax rate was 23.7% for Q2 2020, compared to 38.1% for Q1 2020 and 21.1% for Q2 2019. The decrease in the effective tax rate from Q1 2020 was primarily driven by discrete provision items which increased income tax expense in Q1 2020. The increase in the effective tax rate in Q2 2020 when compared to Q2 2019 is mainly driven by a favorable return to provision adjustment recorded during Q2 2019.

Looking Ahead

Customers is well positioned to execute on its 2020 and 2026 LT strategies

• Net interest margin, excluding PPP loans, expected to remain on average between 2.9% and 3.0% for 2020
• Core operating expenses expected to remain flat over next few quarters
• Tax rate expected to be 22% to 23% for 2020
• Excluding PPP loans, balance sheet at year-end 2020 expected to be about the same or moderately higher than at December 31, 2019
• Absent a further deterioration in economic forecasts, management does not expect a material build up in CECL reserves in future quarters
• PPP loans expected to add about $100 million (pre-tax) to equity capital
• Management focused on the longer term horizon, striving to achieve a run rate of $6.00 per share in core earnings by end of 2026

Capital allocation and philosophy

• Targeting CET 1 of 10.5% to 11.0% at Customers Bank and tangible common equity to tangible assets targeted at about 7.0% at year-end 2020 for the holding company, excluding PPP loans
• Preferred equity will not be called in 2020 or 2021

BankMobile

• BankMobile expected to remain profitable in 2020
• Divestiture on target for completion by year-end 2020

Institutional Background

Customers Bancorp, Inc. is a bank holding company located in West Reading, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $17.9 billion at June 30, 2020. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, Illinois, New York, Rhode Island, Massachusetts, New Hampshire and New Jersey. Committed to fostering customer loyalty, Customers Bank uses a High Tech/High Touch strategy that includes use of industry-leading technology to provide customers better access to their money, as well as Concierge Banking® by appointment at customers’ homes or offices 12 hours a day, seven days a week. Customers Bank offers a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.

Customers Bancorp, Inc.'s voting common shares are listed on the New York Stock Exchange under the symbol CUBI. Additional information about Customers Bancorp, Inc. can be found on the Company’s website, www.customersbank.com.