Customers Bancorp Reports Results for First Quarter 2026

Published: 2026-04-23 16:31:09 ET CUBI

Published on 04/23/2026 at 04:31 pm EDT

Customers Bancorp, Inc. (NYSE:CUBI):

First Quarter 2026 Highlights

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.

Excludes pre-tax gains on investment securities of $0.3 million.

CEO Commentary

“On January 1, 2026, I had the honor of succeeding Jay Sidhu as Chief Executive Officer of Customers Bancorp. This transition was the culmination of a deliberate, multiyear transition that our Board and leadership team planned carefully to ensure continuity for our clients, our team members and our shareholders,” said Customers Bancorp CEO Sam Sidhu.

“I am pleased to share our first quarter 2026 results that show the company’s continued execution of its strategic priorities and underscore our success in growing franchise value.”

“We got off to a strong start to the year in what is typically a slower quarter, as we continued to strategically grow our loan and deposit portfolios with momentum throughout the organization. Total loans and leases grew by 3.6% in Q1 2026 compared to Q4 2025, with contributions from multiple verticals allowing us to deliver above industry average growth rates without sacrificing on structure or credit quality.

Total deposits increased by 3.9% in Q1 2026 compared to Q4 2025, and we delivered over $230.0 million of non interest bearing deposit growth in Q1 2026 outside of the benefits of our digital asset channel clients. On a net basis, we had an increase of 1,167 commercial accounts, or a 5.0% increase in a single quarter, and the 2025 teams alone added 625 accounts in the quarter.

Our Q1 2026 GAAP earnings were $69.7 million, or $1.97 per diluted share, and core earnings* were $69.4 million, or $1.97 per diluted share. Asset quality remains strong with our NPA ratio at just 0.29% of total assets and reserve levels are robust at 337% of total non-performing loans at the end of Q1 2026. Our TCE / TA ratio* increased by 60 basis points from March 31, 2025 to 8.3% at March 31, 2026, while our balance sheet grew by 4.0% and we repurchased 621,668 shares of common stock at a weighted average price of $68.04 in the quarter.

In Q1 2026, we once again delivered exceptionally strong growth across key metrics of revenue, core earnings, and book value per share of 58%, 28%*, and 16%, respectively, when compared to Q1 2025” Sam Sidhu concluded.

___________________________________

* 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 Held for Investment

Loans and leases held for investment were $17.4 billion at March 31, 2026, up $615 million, or 3.7%, from December 31, 2025. C&I specialized lending increased by $308 million, or 4.3% quarter-over-quarter to $7.4 billion. Owner-occupied commercial real estate loans increased by $144 million, or 12.7% to $1.3 billion. Mortgage finance loans increased by $131 million, or 7.7% to $1.8 billion. Construction loans increased by $42 million, or 25.8% to $205 million. These increases were partially offset by a decrease in other C&I loans of $30 million, or 2.9% to $1.0 billion.

Loans and leases held for investment of $17.4 billion at March 31, 2026 were up $2.3 billion, or 15.3%, year-over-year. C&I specialized lending increased by $1.3 billion, or 21.9%, year-over-year. Mortgage finance loans increased by $354 million, or 23.9%. Non-owner occupied commercial real estate loans increased by $304 million, or 21.1%. Multifamily loans increased by $189 million, or 8.1%. Owner-occupied commercial real estate loans increased by $140 million, or 12.3%. These increases were partially offset by a decrease in other C&I loans of $59 million, or 5.6%.

Investment Securities

At March 31, 2026, total investment securities were $2.7 billion, a decrease of $10 million compared to December 31, 2025 and a decrease of $339 million compared to a year ago.

At March 31, 2026, the Available-For-Sale (“AFS”) debt securities portfolio had a spot yield of 5.43%, an effective duration of approximately 2.6 years, and approximately 28% are variable rate. Additionally, approximately 74% of the AFS securities portfolio was AAA rated at March 31, 2026.

At March 31, 2026, the Held-To-Maturity (“HTM”) debt securities portfolio represented only 2.6% of total assets, had a spot yield of 3.31% and an effective duration of approximately 3.9 years. Additionally, at March 31, 2026, approximately 63% of the HTM securities were AAA rated and $0.2 billion were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

Total deposits increased $814 million, or 3.9% to $21.6 billion at March 31, 2026 as compared to the prior quarter. The total average cost of deposits decreased by 8 basis points to 2.46% in Q1 2026 from 2.54% in the prior quarter. Total estimated uninsured deposits were $7.4 billion1, or 34% of total deposits at March 31, 2026 with immediately available liquidity covering approximately 151% of these deposits.

Total deposits increased $2.7 billion, or 14.0% to $21.6 billion at March 31, 2026 as compared to a year ago. The total average cost of deposits decreased by 36 basis points to 2.46% in Q1 2026 from 2.82% in Q1 2025.

Uninsured deposits (estimate) of $9.3 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 $284 million.

Borrowings

Total borrowings increased $197 million, or 11.6% to $1.9 billion at March 31, 2026 as compared to the prior quarter. This increase primarily resulted from net draws of $240 million in FHLB advances and $70 million in federal funds purchased, partially offset by repayment of Customers Bank’s $110 million subordinated debt in Q1 2026. Total borrowings increased $487 million, or 34.4%, to $1.9 billion at March 31, 2026 as compared to a year ago primarily due to net draws of $430 million in FHLB advances and $70 million in federal funds purchased.

Capital

Customers Bancorp’s common equity increased $29 million to $2.1 billion, and tangible common equity* increased $29 million to $2.1 billion, at March 31, 2026 compared to the prior quarter, respectively, primarily from earnings of $70 million, offset in part by $43 million of common share repurchase. Customers Bancorp’s common equity increased $418 million to $2.1 billion, and tangible common equity* increased $418 million to $2.1 billion, at March 31, 2026 compared to a year ago, respectively, primarily from earnings of $281 million, the issuance of $163 million of common stock in September 2025 and a decrease in AOCI of $13 million (net of taxes), mostly from decreased unrealized losses on investment securities, offset in part by $43 million of common share repurchases. Book value per common share increased to $63.64 from $61.87 and $54.85, and tangible book value per common share* increased to $63.54 from $61.77 and $54.74, at March 31, 2026 from December 31, 2025 and March 31, 2025, respectively.

Credit Quality

The provision for credit losses in Q1 2026 was $23 million, compared to $22 million in Q4 2025 and $28 million in Q1 2025.

Net charge-offs were $13 million in Q1 2026, compared to $14 million in Q4 2025 and $17 million Q1 2025.

The allowance for credit losses on loans and leases was $161 million at March 31, 2026, compared to $156 million at December 31, 2025 and $141 million at March 31, 2025.

Non-performing loans at March 31, 2026 increased to 0.27% of total loans and leases, compared to 0.26% at December 31, 2025 and decreased, compared to 0.29% at March 31, 2025. Nonperforming loans include the guaranteed portion of SBA loans. As of March 31, 2026, nonperforming loans totaled $48 million, of which approximately $12 million represents the government-guaranteed portion. Excluding the government-guaranteed portion, nonperforming loans totaled approximately $36 million, representing 0.21% of total loans and leases.

Key Profitability Trends

Net Interest Income

Net interest income totaled $191.4 million in Q1 2026, a decrease of $13.1 million from Q4 2025. This decrease was driven by a decrease in interest income mainly from C&I loans and interest-earning deposits, partially offset by a decrease in interest expense primarily due to lower market interest rates.

“Net interest income and net interest margin were impacted as expected by the sunsetting of the discount accretion that benefitted Q3 and Q4 2025 as well as a lower day count in the quarter,” stated Customers Bancorp CFO Mark McCollom. “We continue to have positive drivers to net interest income on both sides of the balance sheet. We have a strong loan pipeline and the flywheel from our primarily deposit-focused commercial banking team recruitment strategy continued to gain momentum and our recruitment pipeline remains strong,” said Mark McCollom.

Net interest income totaled $191.4 million in Q1 2026, an increase of $23.9 million from Q1 2025. This increase was primarily due to higher interest income primarily due to higher average loan balances and lower interest expense from a favorable shift in deposit mix and lower market interest rates.

Non-Interest Income

Reported non-interest income totaled $34.3 million for Q1 2026, an increase of $1.8 million compared to $32.5 million for Q4 2025. The increase was primarily due to increases of $3.1 million in loan fees mainly from gains on certain stock warrants, $1.2 million in commercial lease income, $1.1 million in net gain on sale of loans and leases mainly from the sale of SBA loans and $0.9 million in bank-owned life insurance due to higher death benefits. These increases were partially offset by a decrease of $4.9 million in other non-interest income mainly due to a decrease in gain on sale of leased assets and loss on equity investments.

Non-interest income totaled $34.3 million for Q1 2026, an increase of $58.8 million compared to Q1 2025. The increase was primarily due to $51.3 million of impairment loss on certain AFS debt securities that the Bank decided to sell as of March 31, 2025 and increases in commercial lease income of $4.8 million, $3.3 million in loan fees mainly from gains on certain stock warrants and $1.0 million in net gain on sale of loans and leases mainly from the sale of SBA loans, partially offset by a decrease of $1.6 million in bank-owned life insurance income mainly due to lower death benefits received from insurance carriers.

Non-Interest Expense

Non-interest expenses totaled $112.0 million in Q1 2026, a decrease of $5.3 million compared to Q4 2025. The decrease was primarily attributable to decreases within other non-interest expense of $2.2 million in insurance expenses related to investments in tax credit structures with a corresponding benefit to income tax expense in Q4 2025, $1.7 million in provision for credit losses on unfunded lending commitments and $0.8 million in FDIC assessments, partially offset by an increase of $1.0 million in commercial lease depreciation associated with the Bank’s continued growth.

“In Q4 2025, we had a total of $4.8 million of expense that was unique to the quarter and taking this impact into account, expenses were down modestly quarter over quarter even as we continue to invest in our future. We successfully achieved our initial operational excellence goal of $20 million in annual run rate revenue enhancements and expense savings providing capacity for further investment in the franchise. Importantly we are driving significant positive operating leverage with core revenue* growth of 16% and core expense* growth of only 9% in Q1 2026 compared to Q1 2025. This drove an over 300 basis point decline in our core efficiency ratio* over that same time period,” stated Mark McCollom.

Non-interest expenses totaled $112.0 million in Q1 2026, an increase of $9.2 million compared to Q1 2025. The increase was primarily attributable to increases of $8.6 million in salaries and employee benefits and $4.2 million in commercial lease depreciation associated with the Bank’s continued growth. These increases were partially offset by a decrease of $3.5 million in FDIC assessments.

Taxes

Income tax expense decreased by $2.2 million to a provision of $20.7 million in Q1 2026 from $22.8 million in Q4 2025 primarily due to lower pre-tax income and an increase in discrete tax benefits including benefits associated with stock-based compensation and adjustments related to prior tax positions, and increased by $21.7 million from a benefit to provision of $1.0 million in Q1 2025 primarily due to higher pre-tax income and lower investment tax credits. The effective tax rate was 22.9% for Q1 2026.

Outlook

“We were very pleased with the start to 2026 and remain focused on executing in those areas which differentiate us from our peers. We believe that truly exceptional service, sophisticated product offerings, recruitment of top talent, exceptional payment capabilities, and a single point of contact service model will deliver sustainable long-term growth.

There are four priorities that will command our attention and investment in 2026. First, we are targeting to increase our utilization of AI and automation technologies to transform our organization by providing enhanced client experiences and organizational productivity. Second, we will seek to deepen and broaden our payments capabilities by widening the industries and use cases we serve and by strengthening relationships with existing clients through expanded product offerings. Third, we will look to continue to deliver above industry average loan and deposit portfolio growth and build upon our successful team recruitment strategy. And fourth, we will seek to do this while operating with a high standard of regulatory and risk management excellence and maintaining a strong capital base, liquidity, and credit quality.

We believe we are incredibly well positioned to continue to achieve these goals and deliver excellent client service and strong financial performance in 2026 and beyond,” concluded Sam Sidhu.

Webcast

Date:

Friday, April 24, 2026

Time:

9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 1st Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Chief Marketing Officer, Laura Vele at [email protected].

The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with nearly $26 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I, commercial real estate, and residential and personal lending, Customers Bank also provides a number of national corporate banking services to clients in businesses including: fund finance, venture banking, healthcare, mortgage finance, and equipment finance. Major accolades include:

A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and ongoing conflict in the Middle East, which could impact economic conditions in the United States; the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply; actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; higher inflation and its impacts; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2025, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS - UNAUDITED

(Dollars in thousands, except per share data)

2026

2025

GAAP Profitability Metrics:

Net income available to common shareholders

69,653

70,088

73,726

55,846

9,523

Per share amounts:

Earnings per share - diluted

1.97

1.98

2.20

1.73

0.29

Book value per common share

63.64

61.87

59.83

56.36

54.85

Return on average assets (“ROAA”)

1.13

1.20

1.26

1.09

0.23

Return on average common equity (“ROCE”)

13.16

13.28

15.57

12.79

2.23

Net interest margin, tax equivalent

3.22

3.40

3.46

3.27

3.13

Efficiency ratio

49.68

49.52

45.39

51.23

52.94

Non-GAAP Profitability Metrics (1):

Core earnings

69,445

72,851

73,473

58,147

50,002

Per share amounts:

Core earnings per share - diluted

1.97

2.06

2.20

1.80

1.54

Tangible book value per common share

63.54

61.77

59.72

56.24

54.74

Core ROAA

1.13

1.19

1.25

1.10

0.97

Core ROCE

13.12

13.81

15.52

13.32

11.72

Core efficiency ratio

49.68

49.52

45.40

51.56

52.69

Balance Sheet Trends:

Total assets

25,880,767

24,895,868

24,260,163

22,550,800

22,423,044

Total cash and investment securities

7,454,901

7,078,243

6,997,783

6,234,043

6,424,406

Total loans and leases

17,391,546

16,782,516

16,303,147

15,412,400

15,097,968

Non-interest bearing demand deposits

6,739,713

6,303,748

6,380,879

5,481,065

5,552,605

Total deposits

21,592,645

20,778,704

20,405,023

18,976,018

18,932,925

Asset Quality:

Net charge-offs

13,255

13,749

15,371

13,115

17,144

Annualized net charge-offs to average total loans and leases

0.32

0.33

0.39

0.35

0.48

Nonaccrual / non-performing loans (“NPLs”)

47,818

43,688

28,421

28,443

43,513

NPLs to total loans and leases

0.27

0.26

0.17

0.18

0.29

Reserves to NPLs

336.61

356.29

534.14

518.29

324.22

Non-performing assets (“NPAs”)

74,737

72,344

61,057

60,778

57,960

NPAs to total assets

0.29

0.25

0.27

0.26

Capital Metrics:

Common equity to total assets

8.3

8.5

8.4

7.9

7.7

Tangible common equity to tangible assets (1)

8.3

8.5

8.4

7.9

7.7

Common equity Tier 1 capital ratio (2)

12.8

12.99

13.00

12.05

11.72

Total risk based capital ratio (2)

14.8

15.39

15.35

14.49

14.61

Customers Bank Capital Ratios (2):

Common equity Tier 1 capital to risk-weighted assets

13.7

13.25

13.22

13.00

12.40

Total capital to risk-weighted assets

14.7

14.62

14.60

14.43

13.92

Tier 1 capital to average assets (leverage ratio)

9.4

8.90

8.84

8.86

8.43

Share amounts:

Average shares outstanding - basic

34,080,834

34,170,777

32,340,813

31,585,390

31,447,623

Average shares outstanding - diluted

35,313,835

35,396,324

33,460,055

32,374,061

32,490,572

Shares outstanding

33,692,632

34,191,223

34,163,506

31,606,934

31,479,132

(1) Customers’ reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.

(2) Regulatory capital ratios are estimated for Q1 2026 and actual for the remaining periods.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(Dollars in thousands, except per share data)

2026

2025

Interest income:

Loans and leases

258,734

274,752

272,131

246,869

231,008

Investment securities

32,141

31,979

36,091

37,381

34,339

Interest earning deposits

41,830

44,862

49,639

39,972

42,914

Loans held for sale

1,235

1,432

1,589

1,806

4,761

Other

2,372

2,173

2,029

1,973

1,887

Total interest income

336,312

355,198

361,479

328,001

314,909

Interest expense:

Deposits

126,126

131,797

141,983

134,045

131,308

FHLB advances

12,935

14,490

12,945

12,717

11,801

Subordinated debt

4,621

3,355

3,251

3,229

3,212

Federal funds purchased

—

Other borrowings

1,266

1,128

1,388

1,307

1,142

Total interest expense

144,961

150,770

159,567

151,298

147,463

Net interest income

191,351

204,428

201,912

176,703

167,446

Provision for credit losses

23,372

22,337

26,543

20,781

28,297

Net interest income after provision for credit losses

167,979

182,091

175,369

155,922

139,149

Non-interest income:

Commercial lease income

15,418

14,186

11,536

11,056

10,668

Loan fees

10,506

7,420

11,443

9,106

7,235

Bank-owned life insurance

3,084

2,189

2,165

2,249

4,660

Mortgage finance transactional fees

1,306

1,339

1,298

1,175

933

Net gain (loss) on sale of loans and leases

1,044

(62

)

—

Net gain (loss) on sale of investment securities

355

(27

)

186

(1,797

)

—

Impairment loss on debt securities

—

(51,319

)

Other

2,603

7,471

3,563

7,817

3,331

Total non-interest income (loss)

34,316

32,516

30,191

29,606

(24,490

)

Non-interest expense:

Salaries and employee benefits

51,294

51,744

48,723

45,848

42,674

Technology, communication and bank operations

11,643

11,388

10,415

10,382

11,312

Commercial lease depreciation

12,692

11,668

9,463

8,743

8,463

Professional services

11,695

12,390

12,281

13,850

11,857

Loan servicing

3,859

4,050

4,167

4,053

4,630

Occupancy

3,956

4,291

4,370

3,551

3,412

FDIC assessments, non-income taxes and regulatory fees

8,215

9,023

8,505

11,906

11,750

Advertising and promotion

554

812

636

461

528

Other

8,080

11,943

6,657

7,832

8,145

Total non-interest expense

111,988

117,309

105,217

106,626

102,771

Income before income tax expense (benefit)

90,307

97,298

100,343

78,902

11,888

Income tax expense (benefit)

20,654

22,806

24,598

17,963

(1,024

)

Net income

69,653

74,492

75,745

60,939

12,912

Preferred stock dividends

—

1,605

2,019

3,185

3,389

Loss on redemption of preferred stock

—

2,799

—

1,908

—

Net income available to common shareholders

69,653

70,088

73,726

55,846

9,523

Basic earnings per common share

2.04

2.05

2.28

1.77

0.30

Diluted earnings per common share

1.97

1.98

2.20

1.73

0.29

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET - UNAUDITED

(Dollars in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

ASSETS

Cash and due from banks

89,153

62,051

57,951

72,986

62,146

Interest earning deposits

4,709,051

4,349,412

4,127,688

3,430,525

3,366,544

Cash and cash equivalents

4,798,204

4,411,463

4,185,639

3,503,511

3,428,690

Investment securities, at fair value

1,993,152

1,937,646

2,010,820

1,877,406

2,057,555

Investment securities held to maturity

663,545

729,134

801,324

853,126

938,161

Loans held for sale

20,282

26,102

30,897

32,963

37,529

Loans and leases receivable

15,519,493

15,041,340

14,673,636

13,719,829

13,555,820

Loans receivable, mortgage finance, at fair value

1,758,685

1,612,997

1,486,978

1,536,254

1,366,460

Loans receivable, installment, at fair value

93,086

102,077

111,636

123,354

138,159

Allowance for credit losses on loans and leases

(160,962

)

(155,656

)

(151,809

)

(147,418

)

(141,076

)

Total loans and leases receivable, net of allowance for credit losses on loans and leases

17,210,302

16,600,758

16,120,441

15,232,019

14,919,363

FHLB, Federal Reserve Bank, and other restricted stock

117,880

110,411

103,290

100,590

96,758

Accrued interest receivable

105,002

103,626

106,379

101,481

105,800

Bank premises and equipment, net

15,749

16,745

15,340

5,978

6,653

Bank-owned life insurance

306,927

305,503

303,212

300,747

298,551

Other real estate owned

12,506

12,432

12,306

—

Goodwill and other intangibles

3,629

Other assets

633,589

638,419

566,760

527,044

530,355

Total assets

25,880,767

24,895,868

24,260,163

22,550,800

22,423,044

LIABILITIES AND SHAREHOLDERS’ EQUITY

Demand, non-interest bearing deposits

6,739,713

6,303,748

6,380,879

5,481,065

5,552,605

Interest bearing deposits

14,852,932

14,474,956

14,024,144

13,494,953

13,380,320

Total deposits

21,592,645

20,778,704

20,405,023

18,976,018

18,932,925

Federal funds purchased

70,000

—

FHLB advances

1,561,655

1,325,068

1,195,437

1,195,377

1,133,456

Other borrowings

99,243

99,208

99,173

99,138

99,103

Subordinated debt

171,614

281,147

182,718

182,649

182,579

Accrued interest payable and other liabilities

241,310

296,224

251,753

234,060

210,421

Total liabilities

23,736,467

22,780,351

22,134,104

20,687,242

20,558,484

Preferred stock

—

82,201

137,794

Common stock

36,312

36,189

36,161

36,123

35,995

Additional paid in capital

669,112

666,756

662,252

572,473

570,172

Retained earnings

1,604,847

1,535,194

1,465,106

1,391,380

1,335,534

Accumulated other comprehensive income (loss), net

(54,657

)

(54,050

)

(51,089

)

(71,325

)

(67,641

)

Treasury stock, at cost

(111,314

)

(68,572

)

(68,572

)

(147,294

)

(147,294

)

Total shareholders’ equity

2,144,300

2,115,517

2,126,059

1,863,558

1,864,560

Total liabilities and shareholders’ equity

25,880,767

24,895,868

24,260,163

22,550,800

22,423,044

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED

(Dollars in thousands)

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

Average Balance

Interest Income or Expense

Average Yield or Cost (%)

Average Balance

Interest Income or Expense

Average Yield or Cost (%)

Average Balance

Interest Income or Expense

Average Yield or Cost (%)

Assets

Interest earning deposits

4,492,897

41,830

3.78%

4,421,242

44,862

4.03%

3,857,617

42,914

4.51%

Investment securities (1)

2,735,786

32,141

4.70%

2,849,764

31,979

4.45%

3,100,429

34,339

4.49%

Loans and leases:

Commercial & industrial:

Specialized lending loans and leases (2)

7,863,238

132,861

6.85%

7,775,247

139,552

7.12%

6,474,034

120,951

7.58%

Other commercial & industrial loans (2)

1,450,962

24,202

6.76%

1,477,351

32,320

8.68%

1,542,846

23,933

6.29%

Mortgage finance loans

1,513,914

16,250

4.35%

1,536,265

17,862

4.61%

1,252,602

14,752

4.78%

Multifamily loans

2,494,849

28,249

4.59%

2,445,945

27,990

4.54%

2,273,893

23,664

4.22%

Non-owner occupied commercial real estate loans

1,907,541

27,711

5.89%

1,784,838

26,635

5.92%

1,550,372

21,564

5.64%

Residential mortgages

524,282

6,240

4.77%

541,091

6,392

4.69%

530,613

6,228

4.76%

Installment loans

912,090

24,456

10.87%

945,697

25,433

10.67%

938,193

24,677

10.67%

Total loans and leases (3)

16,666,876

259,969

6.32%

16,506,434

276,184

6.64%

14,562,553

235,769

6.57%

Other interest-earning assets

156,894

2,372

6.13%

153,480

2,173

5.62%

127,793

1,887

5.99%

Total interest-earning assets

24,052,453

336,312

5.66%

23,930,920

355,198

5.89%

21,648,392

314,909

5.89%

Non-interest-earning assets

868,524

790,453

666,571

Total assets

24,920,977

24,721,373

22,314,963

Liabilities

Interest checking accounts

4,993,616

40,023

3.25%

4,889,245

42,168

3.42%

5,358,206

49,903

3.78%

Money market deposit accounts

4,364,149

36,640

3.40%

4,421,276

40,387

3.62%

3,882,855

37,767

3.94%

Other savings accounts

1,579,730

13,580

3.49%

1,562,768

14,384

3.65%

1,151,439

10,691

3.77%

Certificates of deposit

3,456,664

35,883

4.21%

3,152,637

34,858

4.39%

2,749,720

32,947

4.86%

Total interest-bearing deposits (4)

14,394,159

126,126

3.55%

14,025,926

131,797

3.73%

13,142,220

131,308

4.05%

Federal funds purchased

1,367

3.73%

—

—%

—

—%

Borrowings

1,712,498

18,822

4.46%

1,666,006

18,973

4.52%

1,346,941

16,155

4.86%

Total interest-bearing liabilities

16,108,024

144,961

3.65%

15,691,932

150,770

3.81%

14,489,161

147,463

4.13%

Non-interest-bearing deposits (4)

6,393,947

6,599,095

5,710,644

Total deposits and borrowings

22,501,971

2.61%

22,291,027

2.68%

20,199,805

2.96%

Other non-interest-bearing liabilities

272,488

269,824

246,455

Total liabilities

22,774,459

22,560,851

20,446,260

Shareholders’ equity

2,146,518

2,160,522

1,868,703

Total liabilities and shareholders’ equity

24,920,977

24,721,373

22,314,963

Net interest income

191,351

204,428

167,446

Tax-equivalent adjustment

257

348

363

Net interest earnings

191,608

204,776

167,809

Interest spread

3.05%

3.21%

2.93%

Net interest margin

3.22%

3.39%

3.13%

Net interest margin tax equivalent (5)

3.22%

3.40%

3.13%

(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(2) Includes owner occupied commercial real estate loans.

(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.

(4) Total costs of deposits (including interest bearing and non-interest bearing) were 2.46%, 2.54% and 2.82% for the three months ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(5) Tax-equivalent basis, using an estimated marginal tax rate of 21% for the three months ended March 31, 2026, and 26% for the three months ended December 31, 2025 and March 31, 2025, presented to approximate interest income as a taxable asset.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED

(Dollars in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Loans and leases held for investment

Commercial:

Commercial & industrial:

Specialized lending

7,398,205

7,090,087

7,083,620

6,454,661

6,070,093

Other commercial & industrial

1,003,750

1,033,704

1,056,173

1,037,684

1,062,933

Mortgage finance

1,831,408

1,700,380

1,577,038

1,625,764

1,477,896

Multifamily

2,510,697

2,490,336

2,356,590

2,247,282

2,322,123

Commercial real estate owner occupied

1,279,501

1,135,119

1,058,741

1,065,006

1,139,126

Commercial real estate non-owner occupied

1,742,989

1,738,821

1,582,332

1,497,385

1,438,906

Construction

204,999

162,966

123,290

98,626

154,647

Total commercial loans and leases

15,971,549

15,351,413

14,837,784

14,026,408

13,665,724

Consumer:

Residential

495,458

497,567

514,544

520,570

496,772

Manufactured housing

26,065

27,452

28,749

30,287

31,775

Installment:

Personal

599,302

581,340

570,768

457,728

493,276

Other

278,890

298,642

320,405

344,444

372,892

Total installment loans

878,192

879,982

891,173

802,172

866,168

Total consumer loans

1,399,715

1,405,001

1,434,466

1,353,029

1,394,715

Total loans and leases held for investment

17,371,264

16,756,414

16,272,250

15,379,437

15,060,439

Loans held for sale

Commercial:

Commercial real estate non-owner occupied

—

4,700

—

Total commercial loans and leases

—

4,700

—

Consumer:

Residential

1,767

1,851

2,229

5,180

1,465

Installment:

Personal

17,056

23,357

23,728

27,682

36,000

Other

1,459

894

240

101

Total installment loans

18,515

24,251

23,968

27,783

36,064

Total consumer loans

20,282

26,102

26,197

32,963

37,529

Total loans held for sale

20,282

26,102

30,897

32,963

37,529

Total loans and leases portfolio

17,391,546

16,782,516

16,303,147

15,412,400

15,097,968

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

PERIOD END DEPOSIT COMPOSITION - UNAUDITED

(Dollars in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Demand, non-interest bearing

6,739,713

6,303,748

6,380,879

5,481,065

5,552,605

Demand, interest bearing

5,085,040

5,049,151

5,050,437

4,912,839

5,137,961

Total demand deposits

11,824,753

11,352,899

11,431,316

10,393,904

10,690,566

Savings

1,742,652

1,731,010

1,554,533

1,375,072

1,327,854

Money market

4,604,981

4,398,827

4,339,371

4,206,516

4,057,458

Time deposits

3,420,259

3,295,968

3,079,803

3,000,526

2,857,047

Total deposits

21,592,645

20,778,704

20,405,023

18,976,018

18,932,925

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED

(Dollars in thousands)

As of March 31, 2026

As of December 31, 2025

As of March 31, 2025

Loan type

Total loans

Allowance for credit losses

Total reserves to total loans

Total loans

Allowance for credit losses

Total reserves to total loans

Total loans

Allowance for credit losses

Total reserves to total loans

Commercial:

Commercial & industrial, including specialized lending

8,474,678

41,214

0.49

8,211,174

37,683

0.46

7,244,462

30,584

0.42

Multifamily

2,510,697

19,441

0.77

2,490,336

19,333

0.78

2,322,123

18,790

0.81

Commercial real estate owner occupied

1,279,501

10,556

0.83

1,135,119

10,431

0.92

1,139,126

10,780

0.95

Commercial real estate non-owner occupied

1,742,989

18,470

1.06

1,738,821

18,928

1.09

1,438,906

18,058

1.25

Construction

204,999

2,672

1.30

162,966

2,225

1.37

154,647

1,264

0.82

Total commercial loans and leases receivable

14,212,864

92,353

0.65

13,738,416

88,600

0.64

12,299,264

79,476

0.65

Consumer:

Residential

495,458

5,713

1.15

497,567

6,499

1.31

496,772

6,163

1.24

Manufactured housing

26,065

3,338

12.81

27,452

3,391

12.35

31,775

3,800

11.96

Installment

785,106

59,558

7.59

777,905

57,166

7.35

728,009

51,637

7.09

Total consumer loans receivable

1,306,629

68,609

5.25

1,302,924

67,056

5.15

1,256,556

61,600

4.90

Loans and leases receivable held for investment

15,519,493

160,962

1.04

15,041,340

155,656

1.03

13,555,820

141,076

1.04

Loans receivable, mortgage finance, at fair value

1,758,685

—

1,612,997

—

1,366,460

—

Loans receivable, installment, at fair value

93,086

—

102,077

—

138,159

—

Loans held for sale

20,282

—

26,102

—

37,529

—

Total loans and leases portfolio

17,391,546

160,962

0.93

16,782,516

155,656

0.93

15,097,968

141,076

0.93

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

ASSET QUALITY - UNAUDITED (CONTINUED)

(Dollars in thousands)

As of March 31, 2026

As of December 31, 2025

As of March 31, 2025

Loan type

Non accrual /NPLs

Total NPLs to total loans

Total reserves to total NPLs

Non accrual /NPLs

Total NPLs to total loans

Total reserves to total NPLs

Non accrual /NPLs

Total NPLs to total loans

Total reserves to total NPLs

Commercial:

Commercial & industrial, including specialized lending

18,588

0.22

221.72

19,790

0.24

190.41

18,754

0.26

163.08

Multifamily

9,090

0.36

213.87

2,092

0.08

924.14

—

Commercial real estate owner occupied

5,740

0.45

183.90

3,876

0.34

269.12

7,793

0.68

138.33

Commercial real estate non-owner occupied

135

0.01

13681.48

168

0.01

11266.67

—

29125.81

Construction

—

Total commercial loans and leases receivable

33,553

0.24

275.25

25,926

0.19

341.74

26,609

0.22

298.68

Consumer:

Residential

7,509

1.52

76.08

9,671

1.94

67.20

8,151

1.64

75.61

Manufactured housing

1,143

4.39

292.04

1,192

4.34

284.48

1,653

5.20

229.89

Installment

3,736

0.48

1594.16

4,483

0.58

1275.17

4,659

0.64

1108.33

Total consumer loans receivable

12,388

0.95

553.83

15,346

1.18

436.96

14,463

1.15

425.91

Loans and leases receivable

45,941

0.30

350.37

41,272

0.27

377.15

41,072

0.30

343.48

Loans receivable, mortgage finance, at fair value

—

Loans receivable, installment, at fair value

1,626

1.75

—

2,137

2.09

—

2,059

1.49

—

Loans held for sale

251

1.24

—

279

1.07

—

382

1.02

—

Total loans and leases portfolio

47,818

0.27

336.61

43,688

0.26

356.29

43,513

0.29

324.22

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED

(Dollars in thousands)

2026

2025

Loan type

Commercial & industrial, including specialized lending

2,576

1,620

2,180

3,871

3,231

Multifamily

2,630

4,612

—

3,834

Commercial real estate owner occupied

)

(40

)

335

411

Commercial real estate non-owner occupied

—

(225

)

3,073

—

Construction

—

)

Residential

—

)

—

Installment

8,054

7,766

9,758

8,840

10,066

Total net charge-offs (recoveries) from loans held for investment

13,255

13,749

15,371

13,115

17,144

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

LOANS AND LEASES RISK RATINGS - UNAUDITED

(Dollars in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Loans and leases (1) risk ratings:

Commercial loans and leases

Pass

13,803,943

13,316,507

12,927,467

12,047,656

11,815,403

Special Mention

159,714

216,462

187,794

174,587

189,155

Substandard

245,028

200,779

230,079

256,849

276,018

Total commercial loans and leases

14,208,685

13,733,748

13,345,340

12,479,092

12,280,576

Consumer loans

Performing

1,294,311

1,287,408

1,308,987

1,209,377

1,242,753

Non-performing

12,318

15,516

13,843

20,298

13,803

Total consumer loans

1,306,629

1,302,924

1,322,830

1,229,675

1,256,556

Loans and leases receivable (1)

15,515,314

15,036,672

14,668,170

13,708,767

13,537,132

(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.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

We believe that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP. Starting in Q3 2025, certain adjustments to GAAP measures were no longer included as our intention going forward is to limit these adjustments to those items of greatest significance.

The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.

Core Earnings - Customers Bancorp

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

(Dollars in thousands, except per share data)

USD

Per share

USD

Per share

USD

Per share

USD

Per share

USD

Per share

GAAP net income to common shareholders

69,653

1.97

70,088

1.98

73,726

2.20

55,846

1.73

9,523

0.29

Reconciling items (after tax):

Impairment loss on debt securities

—

39,875

1.23

(Gains) losses on investment securities

(208

)

(0.01

)

(36

)

0.00

(253

)

(0.01

)

1,388

0.04

(124

)

0.00

Derivative credit valuation adjustment

—

210

0.01

Loss on redemption of preferred stock

—

2,799

0.08

—

1,908

0.06

—

Unrealized (gain) loss on loans held for sale

—

(223

)

(0.01

)

518

0.02

Loan program termination fees

—

(772

)

(0.02

)

—

Core earnings

69,445

1.97

72,851

2.06

73,473

2.20

58,147

1.80

50,002

1.54

(Dollars in thousands, except per share data)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

GAAP net income

69,653

74,492

75,745

60,939

12,912

Reconciling items (after tax):

Impairment loss on debt securities

—

39,875

(Gains) losses on investment securities

(208

)

(36

)

(253

)

1,388

(124

)

Derivative credit valuation adjustment

—

210

Unrealized (gain) loss on loans held for sale

—

(223

)

518

Loan program termination fees

—

(772

)

—

Core net income

69,445

74,456

75,492

61,332

53,391

Average total assets

24,920,977

24,721,373

23,930,723

22,362,989

22,314,963

Core return on average assets

1.13

1.19

1.25

1.10

0.97

(Dollars in thousands, except per share data)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

GAAP net income to common shareholders

69,653

70,088

73,726

55,846

9,523

Reconciling items (after tax):

Impairment loss on debt securities

—

39,875

(Gains) losses on investment securities

(208

)

(36

)

(253

)

1,388

(124

)

Derivative credit valuation adjustment

—

210

Loss on redemption of preferred stock

—

2,799

—

1,908

—

Unrealized (gain) loss on loans held for sale

—

(223

)

518

Loan program termination fees

—

(772

)

—

Core earnings

69,445

72,851

73,473

58,147

50,002

Average total common shareholders’ equity

2,146,518

2,093,510

1,878,115

1,751,037

1,730,910

Core return on average common equity

13.12

13.81

15.52

13.32

11.72

(Dollars in thousands, except per share data)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

GAAP net interest income

191,351

204,428

201,912

176,703

167,446

GAAP non-interest income (loss)

34,316

32,516

30,191

29,606

(24,490

)

(Gains) losses on investment securities

(269

)

(47

)

(334

)

1,797

(160

)

Derivative credit valuation adjustment

—

270

Unrealized (gain) loss on loans held for sale

—

(289

)

667

Impairment loss on debt securities

—

51,319

Loan program termination fees

—

(1,000

)

—

Core non-interest income

34,047

32,469

29,857

30,114

27,606

Core revenue

225,398

236,897

231,769

206,817

195,052

GAAP non-interest expense

111,988

117,309

105,217

106,626

102,771

Core non-interest expense

111,988

117,309

105,217

106,626

102,771

Core efficiency ratio (1)

49.68

49.52

45.40

51.56

52.69

(1)

Core efficiency ratio calculated as core non-interest expense divided by core revenue.

(Dollars in thousands, except per share data)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

GAAP total shareholders’ equity

2,144,300

2,115,517

2,126,059

1,863,558

1,864,560

Reconciling items:

Preferred stock

—

(82,201

)

(82,201

)

(137,794

)

Goodwill and other intangibles

(3,629

)

(3,629

)

(3,629

)

(3,629

)

(3,629

)

Tangible common equity

2,140,671

2,111,888

2,040,229

1,777,728

1,723,137

GAAP total assets

25,880,767

24,895,868

24,260,163

22,550,800

22,423,044

Reconciling items:

Goodwill and other intangibles

(3,629

)

(3,629

)

(3,629

)

(3,629

)

(3,629

)

Tangible assets

25,877,138

24,892,239

24,256,534

22,547,171

22,419,415

Tangible common equity to tangible assets

8.3

8.5

8.4

7.9

7.7

(Dollars in thousands, except share and per share data)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

GAAP total shareholders’ equity

2,144,300

2,115,517

2,126,059

1,863,558

1,864,560

Reconciling Items:

Preferred stock

—

(82,201

)

(82,201

)

(137,794

)

Goodwill and other intangibles

(3,629

)

(3,629

)

(3,629

)

(3,629

)

(3,629

)

Tangible common equity

2,140,671

2,111,888

2,040,229

1,777,728

1,723,137

Common shares outstanding

33,692,632

34,191,223

34,163,506

31,606,934

31,479,132

Tangible book value per common share

63.54

61.77

59.72

56.24

54.74

View source version on businesswire.com: https://www.businesswire.com/news/home/20260423277350/en/