$CUBB

Customers Bancorp, Inc.

CIK:0001488813|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (LOSS) — UNAUDITED - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans and leases	$ 268,628	$ 246,869	$ 527,362	$ 477,877
Investment securities	34,727	37,381	66,868	71,720
Interest earning deposits	37,628	39,972	79,458	82,886
Loans held for sale	1,280	1,806	2,515	6,567
Other	2,394	1,973	4,766	3,860
Total interest income	344,657	328,001	680,969	642,910
Interest expense:
Deposits	130,296	134,045	256,422	265,353
FHLB advances	17,109	12,717	30,044	24,518
Subordinated debt	2,723	3,229	7,344	6,441
Interest Expense, Federal Funds Purchased	99	0	112	0
Other borrowings	1,064	1,307	2,330	2,449
Total interest expense	151,291	151,298	296,252	298,761
Net interest income	193,366	176,703	384,717	344,149
Provision for credit losses	23,067	20,781	46,439	49,078
Net interest income after provision for credit losses	170,299	155,922	338,278	295,071
Non-interest income:
Commercial lease income	15,392	11,056	30,810	21,724
Loan fees	8,673	9,106	19,179	16,341
Bank-owned life insurance	2,213	2,249	5,297	6,909
Mortgage finance transactional fees	1,332	1,175	2,638	2,108
Net gain (loss) on sale of loans and leases	1,061	0	2,105	2
Net (gain) loss on sale of investment securities	154	(1,797)	509	(1,797)
Impairment loss on debt securities	0	0	0	(51,319)
Other	5,218	7,817	7,821	11,148
Total non-interest income	34,043	29,606	68,359	5,116
Non-interest expense:
Salaries and employee benefits	56,037	45,848	107,331	88,522
Technology, communication and bank operations	12,891	10,382	24,534	21,694
Commercial lease depreciation	12,761	8,743	25,453	17,206
Professional services	10,024	13,850	21,719	25,707
Loan servicing	3,710	4,053	7,569	8,683
Occupancy	3,495	3,551	7,451	6,963
FDIC assessments, non-income taxes and regulatory fees	4,585	11,906	12,800	23,656
Advertising and promotion	481	461	1,035	989
Other	10,907	7,832	18,987	15,977
Total non-interest expense	114,891	106,626	226,879	209,397
Income before income tax expense	89,451	78,902	179,758	90,790
Income tax expense	17,891	17,963	38,545	16,939
Net income	71,560	60,939	141,213	73,851
Preferred stock dividends	0	3,185	0	6,574
Loss on redemption of preferred stock	0	1,908	0	1,908
Net income available to common shareholders, basic	$ 71,560	$ 55,846	$ 141,213	$ 65,369
Basic earnings per common share (in usd per share)	$ 2.12	$ 1.77	$ 4.16	$ 2.07
Diluted earnings per common share (in usd per share)	$ 2.05	$ 1.73	$ 4.02	$ 2.02

CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities
Net income from continuing operations	$ 141,213	$ 73,851
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	46,439	49,078
Depreciation and amortization	28,150	27,282
Share-based compensation expense	11,451	8,652
Deferred taxes	3,845	(10,973)
Net amortization (accretion) of investment securities premiums and discounts	(2,188)	(1,773)
Unrealized (gain) loss on investment securities	111	(160)
Impairment loss on debt securities	0	51,319
Impairment loss on equity securities	0	2,278
Net (gain) loss on sale of investment securities	(509)	1,797
Unrealized (gain) loss on derivatives	280	(1,514)
(Gain) loss on sale of leased assets under lessor operating leases	(745)	(1,636)
Fair value adjustment on loans held for sale	(393)	378
Fair value adjustment on loans held for investment	291	(2,050)
Net (gain) loss on sale of loans and leases	(2,105)	(2)
Origination and purchases of loans held for sale	(356,642)	(417,808)
Proceeds from sales and repayments of loans held for sale	380,428	466,171
Amortization (accretion) of loan net deferred fees, discounts and premiums	(13,233)	(11,616)
Earnings on investment in bank-owned life insurance	(5,297)	(6,909)
(Increase) decrease in accrued interest receivable and other assets	(44,743)	3,465
Increase (decrease) in accrued interest payable and other liabilities	(43,979)	26,445
Net Cash Provided By (Used In) Operating Activities	142,374	256,275
Cash Flows from Investing Activities
Proceeds from maturities, calls and principal repayments of investment securities available for sale	273,890	167,483
Proceeds from maturities, calls and principal repayments of investment securities held to maturity	109,438	155,580
Proceeds from sales of investment securities available for sale	70,950	450,423
Purchases of investment securities available for sale	(1,035,999)	(506,771)
Purchases of investment securities held to maturity	(9,819)	(14,022)
Origination of mortgage finance loans	(14,820,321)	(12,162,399)
Proceeds from repayments of mortgage finance loans	14,790,697	11,969,037
Net (increase) decrease in loans and leases, excluding mortgage finance loans	(1,083,776)	(461,034)
Proceeds from sales of loans and leases	44,559	1,081
Purchases of loans	(200,046)	(182,000)
Purchases of bank-owned life insurance	0	(1,462)
Proceeds from bank-owned life insurance	1,431	5,634
Net purchases from sale of FHLB, Federal Reserve Bank, and other restricted stock	(36,560)	(4,376)
Purchases of bank premises and equipment	(1,300)	(772)
Proceeds from sales of leased assets under lessor operating leases	3,577	4,207
Purchases of leased assets under lessor operating leases	(30,036)	(39,811)
Net Cash Provided By (Used In) Investing Activities	(1,923,315)	(619,202)
Cash Flows from Financing Activities
Net increase (decrease) in deposits	977,301	101,644
Proceeds from long-term borrowed funds from FHLB and FRB	920,000	160,000
Repayments of long-term borrowed funds from FHLB and FRB	(180,000)	(100,000)
Repayments of subordinated long-term debt	(110,000)	0
Redemption of preferred stock	0	(57,501)
Preferred stock dividends paid	0	(6,848)
Purchase of treasury stock	(49,396)	(5,641)
Payments of employee taxes withheld from share-based awards	(10,241)	(12,280)
Proceeds from issuance of common stock	666	1,133
Net Cash Provided By (Used In) Financing Activities	1,548,330	80,507
Net Increase (Decrease) in Cash and Cash Equivalents	(232,611)	(282,420)
Cash and Cash Equivalents – Beginning	4,411,463	3,785,931
Cash and Cash Equivalents – Ending	4,178,852	3,503,511
Non-cash Investing and Financing Activities:
Transfer of loans held for investment to held for sale	40,029	0
Transfer of loans held for sale to held for investment	1,300	137,011
Transfer of loans to other real estate owned	$ 136	$ 12,306

CONSOLIDATED BALANCE SHEET — UNAUDITED - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 85,546	$ 62,051
Interest earning deposits	4,093,306	4,349,412
Cash and cash equivalents	4,178,852	4,411,463
Investment securities, at fair value (includes allowance for credit losses of $29,910 and $28,805, respectively)	2,626,717	1,937,646
Investment securities held to maturity	631,594	729,134
Loans held for sale (includes $5,510 and $2,745, respectively, at fair value)	58,611	26,102
Loans and leases receivable	16,217,068	15,041,340
Loans receivable, mortgage finance, at fair value	1,654,795	1,612,997
Loans receivable, installment, at fair value	84,826	102,077
Allowance for credit losses on loans and leases	(164,106)	(155,656)
Total loans and leases receivable, net of allowance for credit losses on loans and leases	17,792,583	16,600,758
FHLB, Federal Reserve Bank, and other restricted stock	144,971	110,411
Accrued interest receivable	103,125	103,626
Bank premises and equipment, net	19,773	16,745
Bank-owned life insurance	310,312	305,503
Other real estate owned	12,568	12,432
Goodwill and other intangibles	3,629	3,629
Other assets	638,054	638,419
Total assets	26,520,789	24,895,868
Deposits:
Demand, non-interest bearing	6,913,804	6,303,748
Interest bearing	14,819,093	14,474,956
Total deposits	21,732,897	20,778,704
FHLB advances	2,059,163	1,325,068
Other borrowings	99,278	99,208
Subordinated debt	171,741	281,147
Accrued interest payable and other liabilities	252,018	296,224
Total liabilities	24,315,097	22,780,351
Commitments and contingencies (NOTE 17)
Shareholders’ equity:
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 36,484,767 and 36,188,920 shares issued as of June 30, 2026 and December 31, 2025; 33,772,598 and 34,191,223 shares outstanding as of June 30, 2026 and December 31, 2025	36,485	36,189
Additional paid in capital	669,114	666,756
Retained earnings	1,676,407	1,535,194
Accumulated other comprehensive income (loss), net	(58,346)	(54,050)
Treasury stock, at cost (2,712,169 and 1,997,697 shares as of June 30, 2026 and December 31, 2025)	(117,968)	(68,572)
Total shareholders’ equity	2,205,692	2,115,517
Total liabilities and shareholders’ equity	$ 26,520,789	$ 24,895,868