cubi-20240425

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the

Securities Exchange Act of 1934

Date of Report (date of earliest event reported): April 25, 2024

(Exact name of registrant as specified in its charter)


Customers Bancorp, Inc.


Pennsylvania	001-35542	27-2290659
(State or other jurisdiction of incorporation or organization)	(Commission File number)	(IRS Employer Identification No.)

701 Reading Avenue

West Reading PA 19611

(Address of principal executive offices, including zip code)

(610) 933-2000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instructions A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(g) of the Act:

Title of Each Class

Trading Symbols

Name of Each Exchange on which Registered

Voting Common Stock, par value $1.00 per share

CUBI

New York Stock Exchange

Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series E, par value $1.00 per share

CUBI/PE

New York Stock Exchange

Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series F, par value $1.00 per share

CUBI/PF

New York Stock Exchange

5.375% Subordinated Notes due 2034

CUBB

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On April 25, 2024, Customers Bancorp, Inc. (the "Company") issued a press release announcing unaudited financial information for the quarter ended March 31, 2024, a copy of which is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.

Item 7.01 Regulation FD Disclosure

The Company has posted to its website a slide presentation which is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto and incorporated by reference into Item 2.02 and Item 7.01, respectively, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed incorporated by reference into any of the Company's reports or filings with the SEC, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing. The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.


Exhibit						Description
Exhibit 99.1						Press Release dated April 25, 2024
Exhibit 99.2						Slide presentation dated April 2024

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.


			CUSTOMERS BANCORP, INC.

			By: /s/ Philip Watkins
			Name: Philip Watkins
			Title: Executive Vice President - Chief Financial Officer

Date: April 25, 2024

EXHIBIT INDEX


Exhibit No.						Description
99.1						Press Release dated April 25, 2024
99.2						Slide presentation dated April 2024

Document

Exhibit 99.1

Customers Bancorp, Inc. (NYSE:CUBI)

701 Reading Avenue

West Reading, PA 19611

Contact:
David W. Patti, Communications Director 610-451-9452

Customers Bancorp Reports Results for First Quarter

First Quarter 2024 Highlights

•Q1 2024 net income available to common shareholders was $45.9 million, or $1.40 per diluted share; ROAA was 0.94% and ROCE was 12.08%.

•Q1 2024 core earnings* were $46.5 million, or $1.42 per diluted share; Core ROAA* was 0.95% and Core ROCE* was 12.24%.

•Q1 2024 adjusted core earnings* excluding certain one-time items were $55.1 million, or $1.68 per diluted share; Adjusted Core ROAA* excluding certain one-time items was 1.11% and Adjusted Core ROCE* excluding certain one-time items was 14.50%.

•CET 1 ratio of 12.5%1 at March 31, 2024, compared to 12.2% at December 31, 2023, above the approximately 11.5% target.

•TCE / TA ratio* of 7.3% at March 31, 2024, compared to 7.0% at December 31, 2023, on track to achieve 7.5% target within one to two quarters.

•Q1 2024 net interest margin, tax equivalent (“NIM”) was 3.10%, compared to Q4 2023 NIM of 3.31%, due to higher cash balances and lower average loans during the quarter.

•Total deposits increased by $41.1 million in Q1 2024 from Q4 2023 with a significant positive mix shift. Q1 2024 business unit deposit*2 growth of $1.2 billion funded the repayment of maturing wholesale CDs of $1.2 billion.

•Non-interest bearing deposits increased by $266.4 million in Q1 2024 from Q4 2023 and represented 26% of total deposits.

•Total estimated insured deposits were 78%3 of total deposits at March 31, 2024, with immediately available liquidity covering estimated uninsured deposits3 by approximately 224%.

•Non-performing assets were $35.8 million, or 0.17% of total assets, at March 31, 2024 compared to 0.13% at December 31, 2023. Allowance for credit losses on loans and leases equaled 374% of non-performing loans at March 31, 2024, compared to 499% at December 31, 2023.

•Q1 2024 provision for credit losses on loans and leases was $16.0 million compared to $13.4 million in Q4 2023 and the coverage of credit loss reserves for loans and leases held for investment was 1.12%. The coverage of credit loss reserves for loans and leases held for investment decreased modestly from 1.13% in Q4 2023 largely driven by lower consumer installment loans held for investment.

•Q1 2024 book value per share and tangible book value per share* both grew by approximately $1.56, or 3.3% over Q4 2023, driven by strong quarterly earnings and a decrease in AOCI losses of $4.3 million over the same time period.

*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.

1 Regulatory capital ratios as of March 31, 2024 are estimates.

2 Total deposits excluding wholesale CDs and BMTX student-related deposits.

3 Uninsured deposits (estimate) of $5.2 billion to be reported on the Bank’s call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $124.5 million.

CEO Commentary

West Reading, PA, April 25, 2024 - “Following an exceptional year in 2023, we are pleased to share continued progress on the execution of our strategic priorities which we believe will grow our franchise value, our margins and net interest income in 2024 and beyond,” said Customers Bancorp Chairman and CEO Jay Sidhu. “We are excited to announce that in April we welcomed 10 new, very experienced, banking teams to Customers Bank that are commercial focused deposit generators in the New York metropolitan area and in selected markets in California and Nevada. These commercial and business banking teams are highly experienced, have worked together for decades and have longstanding and deep client relationships. We expect the addition of these teams to accelerate the continued improvement of our deposit franchise with low cost, granular, primary relationship-based deposit accounts. We look forward to delivering exceptional service to their clients with our single point of contact, high-touch, technology-enabled banking capabilities. In the quarter, we once again demonstrated the momentum of our deposit franchise transformation by growing business unit deposits*2 by $1.2 billion which funded the repayment of maturing wholesale CDs in the amount of $1.2 billion. This was our fourth consecutive quarter of approximately $1 billion of business unit deposit*2 growth. The business unit deposit*2 growth was, once again, broad-based with more than 20 different channels increasing balances and roughly half contributing $25 million or more. Non-interest bearing deposits increased by $266.4 million during the quarter and represented 26 percent of total deposits. Our net interest margin moderated in the first quarter to 3.10% driven primarily by elevated cash balances resulting from strong business unit deposit*2 growth and the timing associated with replenishing higher yielding interest-earning assets that exited in the fourth quarter as we continue to remain focused on loan growth supporting holistic relationships. Capital levels continued to build as evidenced by a 24 basis point increase in our TCE / TA ratio* and an increase in our CET 1 ratio to 12.5%1. We are confident in our ability to achieve the 7.5% TCE / TA ratio* target that we disclosed last quarter. Enhanced by the addition of our new banking teams, we believe we are extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.

“Our Q1 2024 GAAP earnings were $45.9 million, or $1.40 per diluted share, and core earnings* were $46.5 million, or $1.42 per diluted share. Excluding certain one-time items incurred during the quarter, our adjusted core earnings* were $55.1 million, or $1.68 per diluted share. At March 31, 2024, our deposit base was well diversified, with approximately 78%3 of total deposits insured. We maintain a strong liquidity position, with $8.9 billion of liquidity immediately available, which covers approximately 224% of uninsured deposits3 and our loan to deposit ratio was 74%. We continue to focus loan production where we have a holistic and primary relationship. Commercial loans grew by $123.0 million though gross loan balances remained relatively flat given targeted reductions in consumer installment loans in the quarter. Our loan pipeline grew meaningfully through the first quarter, and we remain confident in the 10% – 15% loan growth outlook previously provided. We have ample liquidity and capital to support the needs of our customers. At March 31, 2024, we had $3.7 billion of cash on hand, to fund strategic loan growth as well as prudent balance sheet and liquidity management. Asset quality remains strong with our NPA ratio at just 0.17% of total assets and reserve levels are robust at over 370% of total non-performing loans at the end of Q1 2024. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. Continued execution on our strategic priorities has positioned us favorably for success in 2024 from a capital, credit, liquidity, interest rate risk and earnings perspective. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. We are confident in our risk management capabilities and ability to provide excellent and differentiated service to our clients. We are excited and optimistic about the opportunities we had entering 2024, which will only be enhanced by the addition of the new banking teams,” Jay Sidhu continued.

1 Regulatory capital ratios as of March 31, 2024 are estimates.

2 Total deposits excluding wholesale CDs and BMTX student-related deposits.

Financial Highlights


(Dollars in thousands, except per share data)	At or Three Months Ended						Increase (Decrease)
	March 31, 2024			December 31, 2023
Profitability Metrics:
Net income available for common shareholders	$	45,926		$	58,223		$	(12,297)	(21.1)	%
Diluted earnings per share	$	1.40		$	1.79		$	(0.39)	(21.8)	%
Core earnings*	$	46,532		$	61,633		$	(15,101)	(24.5)	%
Adjusted core earnings*	$	55,137		$	61,633		$	(6,496)	(10.5)	%
Core earnings per share*	$	1.42		$	1.90		$	(0.48)	(25.3)	%
Adjusted core earnings per share*	$	1.68		$	1.90		$	(0.22)	(11.6)	%


Return on average assets (“ROAA”)	0.94		%	1.16		%	(0.22)
Core ROAA*	0.95		%	1.22		%	(0.27)
Adjusted core ROAA*	1.11		%	1.22		%	(0.11)

Return on average common equity (“ROCE”)	12.08		%	15.93		%	(3.85)
Core ROCE*	12.24		%	16.87		%	(4.63)
Adjusted core ROCE*	14.50		%	16.87		%	(2.37)
Core pre-tax pre-provision net income*	$	83,674		$	101,884		$	(18,210)	(17.9)	%
Adjusted core pre-tax pre-provision net income*	$	94,988		$	101,884		$	(6,896)	(6.8)	%

Net interest margin, tax equivalent	3.10		%	3.31		%	(0.21)

Yield on loans (Loan yield)	7.05		%	7.30		%	(0.25)

Cost of deposits	3.45		%	3.39		%	0.06
Efficiency ratio	54.58		%	49.08		%	5.50
Core efficiency ratio*	54.24		%	46.70		%	7.54
Adjusted core efficiency ratio*	48.02		%	46.70		%	1.32
Non-interest expense to average total assets	1.87		%	1.75		%	0.12
Core non-interest expense to average total assets*	1.86		%	1.67		%	0.19
Adjusted core non-interest expense to average total assets*	1.65		%	1.67		%	(0.02)
Balance Sheet Trends:
Total assets	$	21,347,367		$	21,316,265		$	31,102	0.1	%
Total cash and investment securities	$	7,338,025		$	7,355,156		$	(17,131)	(0.2)	%

Total loans and leases	$	13,256,871		$	13,202,084		$	54,787	0.4	%

Non-interest bearing demand deposits	$	4,688,880		$	4,422,494		$	266,386	6.0	%
Total deposits	$	17,961,383		$	17,920,236		$	41,147	0.2	%
Capital Metrics:
Common Equity	$	1,553,823		$	1,500,600		$	53,223	3.5	%
Tangible Common Equity*	$	1,550,194		$	1,496,971		$	53,223	3.6	%
Common Equity to Total Assets	7.3		%	7.0		%	0.3
Tangible Common Equity to Tangible Assets*	7.3		%	7.0		%	0.3

Book Value per common share	$	49.29		$	47.73		$	1.56	3.3	%
Tangible Book Value per common share*	$	49.18		$	47.61		$	1.57	3.3	%
Common equity Tier 1 capital ratio (1)	12.5		%	12.2		%	0.3
Total risk based capital ratio (1)	15.6		%	15.3		%	0.3

(1) Regulatory capital ratios as of March 31, 2024 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


(Dollars in thousands, except per share data)	At or Three Months Ended			Increase (Decrease)
		March 31, 2024	March 31, 2023
Profitability Metrics:
Net income available for common shareholders				$	45,926		$	50,265		$	(4,339)	(8.6)	%
Diluted earnings per share				$	1.40		$	1.55		$	(0.15)	(9.7)	%
Core earnings*				$	46,532		$	51,143		$	(4,611)	(9.0)	%
Adjusted core earnings*				$	55,137		$	51,143		$	3,994	7.8	%
Core earnings per share*				$	1.42		$	1.58		$	(0.16)	(10.1)	%
Adjusted core earnings per share*				$	1.68		$	1.58		$	0.10	6.3	%


Return on average assets (“ROAA”)				0.94		%	1.03		%	(0.09)
Core ROAA*				0.95		%	1.05		%	(0.10)
Adjusted core ROAA*				1.11		%	1.05		%	0.06

Return on average common equity (“ROCE”)				12.08		%	16.00		%	(3.92)
Core ROCE*				12.24		%	16.28		%	(4.04)
Adjusted core ROCE*				14.50		%	16.28		%	(1.78)
Core pre-tax pre-provision net income*				$	83,674		$	89,282		$	(5,608)	(6.3)	%
Adjusted core pre-tax pre-provision net income*				$	94,988		$	89,282		$	5,706	6.4	%

Net interest margin, tax equivalent				3.10		%	2.96		%	0.14

Yield on loans (Loan yield)				7.05		%	6.70		%	0.35

Cost of deposits				3.45		%	3.32		%	0.13
Efficiency ratio				54.58		%	47.71		%	6.87
Core efficiency ratio*				54.24		%	47.09		%	7.15
Adjusted core efficiency ratio*				48.02		%	47.09		%	0.93
Non-interest expense to average total assets				1.87		%	1.54		%	0.33
Core non-interest expense to average total assets*				1.86		%	1.53		%	0.33
Adjusted core non-interest expense to average total assets*				1.65		%	1.53		%	0.12
Balance Sheet Trends:
Total assets				$	21,347,367		$	21,751,614		$	(404,247)	(1.9)	%
Total cash and investment securities				$	7,338,025		$	5,843,948		$	1,494,077	25.6	%

Total loans and leases				$	13,256,871		$	15,063,034		$	(1,806,163)	(12.0)	%

Non-interest bearing demand deposits				$	4,688,880		$	3,487,517		$	1,201,363	34.4	%
Total deposits				$	17,961,383		$	17,723,617		$	237,766	1.3	%
Capital Metrics:
Common Equity				$	1,553,823		$	1,283,226		$	270,597	21.1	%
Tangible Common Equity*				$	1,550,194		$	1,279,597		$	270,597	21.1	%
Common Equity to Total Assets				7.3		%	5.9		%	1.4
Tangible Common Equity to Tangible Assets*				7.3		%	5.9		%	1.4

Book Value per common share				$	49.29		$	41.08		$	8.21	20.0	%
Tangible Book Value per common share*				$	49.18		$	40.96		$	8.22	20.1	%
Common equity Tier 1 capital ratio (1)				12.5		%	9.6		%	2.9
Total risk based capital ratio (1)				15.6		%	12.3		%	3.3

(1) Regulatory capital ratios as of March 31, 2024 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)	March 31, 2024		% of Total		December 31, 2023		% of Total		March 31, 2023		% of Total
Loans and Leases Held for Investment
Commercial:

Commercial & industrial:
Specialized lending	$	5,104,405	39.6	%	$	5,006,693	38.9	%	$	5,519,176	37.7	%
Other commercial & industrial (1)	1,113,517		8.6		1,162,317		9.0		1,414,419		9.7
Mortgage finance	1,071,146		8.3		1,014,742		7.9		1,374,894		9.4
Multifamily	2,123,675		16.5		2,138,622		16.6		2,195,211		15.0
Commercial real estate owner occupied	806,278		6.3		797,319		6.2		895,314		6.1
Commercial real estate non-owner occupied	1,182,084		9.2		1,177,650		9.2		1,245,248		8.5
Construction	185,601		1.3		166,393		1.3		188,123		1.3

Total commercial loans and leases	11,586,706		89.8		11,463,736		89.1		12,832,385		87.7
Consumer:
Residential	482,537		3.8		484,435		3.8		494,815		3.4
Manufactured housing	37,382		0.3		38,670		0.3		43,272		0.3

Installment:
Personal	492,892		3.8		555,533		4.3		849,420		5.8
Other	299,714		2.3		319,393		2.5		419,085		2.8
Total installment loans	792,606		6.1		874,926		6.8		1,268,505		8.6

Total consumer loans	1,312,525		10.2		1,398,031		10.9		1,806,592		12.3
Total loans and leases held for investment	$	12,899,231	100.0	%	$	12,861,767	100.0	%	$	14,638,977	100.0	%


Loans Held for Sale
Commercial:



Multifamily	$	—	—	%	$	—	—	%	$	4,051	1.0	%



Commercial real estate non-owner occupied	—		—		—		—		16,000		3.7

Total commercial loans and leases	—		—		—		—		20,051		4.7
Consumer:
Residential	870		0.2		1,215		0.3		821		0.2


Installment:
Personal	137,755		38.5		151,040		44.4		307,336		72.5
Other	219,015		61.3		188,062		55.3		95,849		22.6
Total installment loans	356,770		99.8		339,102		99.7		403,185		95.1

Total consumer loans	357,640		100.0		340,317		100.0		404,006		95.3
Total loans held for sale	$	357,640	100.0	%	$	340,317	100.0	%	$	424,057	100.0	%

Total loans and leases portfolio	$	13,256,871			$	13,202,084			$	15,063,034

(1) Includes PPP loans of $52.0 million, $74.7 million and $246.3 million as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

Loans and Leases Held for Investment

Loans and leases held for investment were $12.9 billion at March 31, 2024, up $37.5 million, or 0.3%, from December 31, 2023. Specialized lending increased $97.7 million, or 2.0% quarter-over-quarter, to $5.1 billion. Mortgage finance loans increased $56.4 million, or 5.6% quarter-over-quarter due to higher mortgage activity. Construction loans increased $19.2 million, or 11.5% quarter-over-quarter, to $185.6 million. Consumer installment loans held for investment decreased $82.3 million, or 9.4% quarter-over-quarter, to $792.6 million due to the continued build out of the held-for-sale strategy and de-risking of the held-for-investment loan portfolio. Other commercial and industrial loans decreased $48.8 million, or 4.2% quarter-over-quarter, to $1.1 billion, which included a decrease in PPP loans primarily from guarantee payments.

Loans and leases held for investment of $12.9 billion at March 31, 2024 was down $1.7 billion, or 11.9%, year-over-year, largely driven by reduced balances in consumer installment loans of $475.9 million, or 37.5% year-over-year, specialized lending of $414.8 million, mortgage finance loans of $303.7 million and other commercial and industrial loans of $300.9 million, which included a decrease in PPP loans primarily from guarantee payments.

Loans Held for Sale

Loans held for sale increased $17.3 million quarter-over-quarter, and were $357.6 million at March 31, 2024 due to the continued build out of the held-for-sale strategy in 2024.

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						Increase (Decrease)		At or Three Months Ended						Increase (Decrease)
(Dollars in thousands)	March 31, 2024			December 31, 2023					March 31, 2024			March 31, 2023
Allowance for credit losses on loans and leases	$	133,296		$	135,311		$	(2,015)	$	133,296		$	130,281		$	3,015
Provision (benefit) for credit losses on loans and leases	$	15,953		$	13,420		$	2,533	$	15,953		$	18,008		$	(2,055)
Net charge-offs from loans held for investment	$	17,968		$	17,322		$	646	$	17,968		$	18,651		$	(683)

Annualized net charge-offs to average loans and leases	0.55		%	0.51		%			0.55		%	0.49		%
Coverage of credit loss reserves for loans and leases held for investment	1.12		%	1.13		%			1.12		%	0.97		%

Net charge-offs were relatively stable with $18.0 million in Q1 2024, compared to $17.3 million in Q4 2023 and $18.7 million in Q1 2023.

Provision (benefit) for Credit Losses


	Three Months Ended				Increase (Decrease)		Three Months Ended				Increase (Decrease)
(Dollars in thousands)	March 31, 2024		December 31, 2023				March 31, 2024		March 31, 2023
Provision (benefit) for credit losses on loans and leases	$	15,953	$	13,420	$	2,533	$	15,953	$	18,008	$	(2,055)
Provision (benefit) for credit losses on available for sale debt securities	1,117		103		1,014		1,117		1,595		(478)

Provision for credit losses	17,070		13,523		3,547		17,070		19,603		(2,533)
Provision (benefit) for credit losses on unfunded commitments	430		(136)		566		430		280		150
Total provision for credit losses	$	17,500	$	13,387	$	4,113	$	17,500	$	19,883	$	(2,383)

The provision for credit losses on loans and leases in Q1 2024 was $16.0 million, compared to $13.4 million in Q4 2023. The higher provision in Q1 2024 was primarily due to increased uncertainty and slightly weaker macroeconomic forecasts, partially offset by lower balances in consumer installment loans held for investment.

The provision for credit losses on available for sale investment securities in Q1 2024 was $1.1 million, compared to provision of $0.1 million in Q4 2023.

The provision for credit losses on loans and leases in Q1 2024 was $16.0 million, compared to $18.0 million in Q1 2023. The lower provision in Q1 2024 compared to the year ago period was primarily due to lower balances in loans held for investment.

The provision for credit losses on available for sale investment securities in Q1 2024 was $1.1 million compared to provision of $1.6 million in Q1 2023.

Asset Quality

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


(Dollars in thousands)	March 31, 2024			December 31, 2023			Increase (Decrease)		March 31, 2024			March 31, 2023			Increase (Decrease)
Non-performing assets (“NPAs”):
Nonaccrual / non-performing loans (“NPLs”)	$	35,654		$	27,110		$	8,544	$	35,654		$	32,124		$	3,530
Non-performing assets	$	35,753		$	27,209		$	8,544	$	35,753		$	32,260		$	3,493
NPLs to total loans and leases	0.27		%	0.21		%			0.27		%	0.21		%
Reserves to NPLs	373.86		%	499.12		%			373.86		%	405.56		%
NPAs to total assets	0.17		%	0.13		%			0.17		%	0.15		%

Loans and leases (1) risk ratings:
Commercial loans and leases
Pass	$	10,095,611		$	9,955,243		$	140,368	$	10,095,611		$	10,928,620		$	(833,009)
Special Mention	194,365			196,182			(1,817)		194,365			136,986			57,379
Substandard	282,163			339,664			(57,501)		282,163			273,154			9,009

Total commercial loans and leases	10,572,139			10,491,089			81,050		10,572,139			11,338,760			(766,621)
Consumer loans
Performing	1,293,457			1,379,603			(86,146)		1,293,457			1,787,123			(493,666)
Non-performing	19,068			18,428			640		19,068			19,469			(401)
Total consumer loans	1,312,525			1,398,031			(85,506)		1,312,525			1,806,592			(494,067)
Loans and leases receivable (1)	$	11,884,664		$	11,889,120		$	(4,456)	$	11,884,664		$	13,145,352		$	(1,260,688)

(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 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 one particularly important common denominator: 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 low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite an adverse economic 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 March 31, 2024 were less than 4% of total assets and approximately 6% of total loans and leases held for investment, and were supported by an allowance for credit losses of $50.7 million. At March 31, 2024, the consumer installment portfolio had the following characteristics: average original FICO score of 737, average debt-to-income of 20% and average borrower income of $107 thousand.

Non-performing loans at March 31, 2024 increased to 0.27% of total loans and leases, compared to 0.21% at December 31, 2023 and 0.21% at March 31, 2023.

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)	March 31, 2024		December 31, 2023		March 31, 2023
Debt securities, available for sale	$	2,571,139	$	2,376,860	$	2,900,259
Equity securities	33,729		28,780		26,710
Investment securities, at fair value	2,604,868		2,405,640		2,926,969
Debt securities, held to maturity	1,032,037		1,103,170		870,294
Total investment securities portfolio	$	3,636,905	$	3,508,810	$	3,797,263

Critically important to performance during the recent banking crisis are the characteristics of a bank’s securities portfolio. While there may be virtually no credit risk in some of these portfolios, holding longer term and lower yielding securities is creating challenges for many banks. Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At March 31, 2024, the AFS debt securities portfolio had a spot yield of 5.33%, an effective duration of approximately 1.7 years, and approximately 40% are variable rate. Additionally, 62% of the AFS securities portfolio was AAA rated at March 31, 2024.

At March 31, 2024, the HTM debt securities portfolio represented only 4.8% of total assets at March 31, 2024, had a spot yield of 4.26% and an effective duration of approximately 3.0 years. Additionally, at March 31, 2024, approximately 41% of the HTM securities were AAA rated and 49% 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)	March 31, 2024		% of Total		December 31, 2023		% of Total		March 31, 2023		% of Total
Demand, non-interest bearing	$	4,688,880	26.1	%	$	4,422,494	24.7	%	$	3,487,517	19.7	%
Demand, interest bearing	5,661,775		31.5		5,580,527		31.1		5,791,302		32.7
Total demand deposits	10,350,655		57.6		10,003,021		55.8		9,278,819		52.4
Savings	2,080,374		11.6		1,402,941		7.8		924,359		5.2
Money market	3,347,843		18.6		3,226,395		18.0		2,019,633		11.4
Time deposits	2,182,511		12.2		3,287,879		18.4		5,500,806		31.0
Total deposits	$	17,961,383	100.0	%	$	17,920,236	100.0	%	$	17,723,617	100.0	%

Total deposits increased $41.1 million, or 0.2%, to $18.0 billion at March 31, 2024 as compared to the prior quarter. Non-interest bearing demand deposits increased $266.4 million, or 6.0%, to $4.7 billion, savings deposits increased $677.4 million, or 48.3%, to $2.1 billion, money market deposits increased $121.4 million, or 3.8%, to $3.3 billion and interest bearing demand deposits of $81.2 million, or 1.5%, to $5.7 billion. These increases were offset by a decrease in time deposits of $1.1 billion, or 33.6%, to $2.2 billion. The total average cost of deposits increased modestly by 6 basis points to 3.45% in Q1 2024 from 3.39% in the prior quarter largely driven by continued competitive dynamics in the deposit market that the industry continues to experience. Total estimated uninsured deposits were $4.0 billion1, or 22% of total deposits (inclusive of accrued interest) at March 31, 2024. Customers is also highly focused on total deposits with contractual term to manage its liquidity profile and the funding of loans and securities.

Total deposits increased $237.8 million, or 1.3%, to $18.0 billion at March 31, 2024 as compared to a year ago. Non-interest bearing demand deposits increased $1.2 billion, or 34.4%, to $4.7 billion, money market deposits increased $1.3 billion, or 65.8%, to $3.3 billion and savings deposits increased $1.2 billion, or 125.1%, to $2.1 billion. These increases were offset by decreases in time deposits of $3.3 billion, or 60.3% to $2.2 billion and interest bearing demand deposits of $129.5 million, or 2.2%, to $5.7 billion. The total average cost of deposits increased modestly by 13 basis points to 3.45% in Q1 2024 from 3.32% in the prior year primarily due to higher market interest rates, offsetting a positive shift in deposit mix.

Borrowings

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


(Dollars in thousands)	March 31, 2024		December 31, 2023		March 31, 2023


FHLB advances	$	1,195,088	$	1,203,207	$	2,052,143
Senior notes	123,905		123,840		123,645
Subordinated debt	182,300		182,230		182,021
Total borrowings	$	1,501,293	$	1,509,277	$	2,357,809

1 Uninsured deposits (estimate) of $5.2 billion to be reported on the Bank’s call report, less deposits of $1.1 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $124.5 million.

Total borrowings decreased $8.0 million, or 0.5%, to $1.5 billion at March 31, 2024 as compared to the prior quarter. As of March 31, 2024, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.5 billion, of which $1.2 billion of available capacity was utilized in borrowings and $1.1 billion was utilized to collateralize deposits.

Total borrowings decreased $856.5 million, or 36.3%, to $1.5 billion at March 31, 2024 as compared to a year ago. This decrease primarily resulted from repayments of $340.0 million and $510.0 million in callable FHLB advances in Q4 2023 and Q3 2023, respectively.

Capital

The following table presents certain capital amounts and ratios as of the dates indicated:


(Dollars in thousands except per share data)	March 31, 2024			December 31, 2023			March 31, 2023
Customers Bancorp, Inc.
Common Equity	$	1,553,823		$	1,500,600		$	1,283,226
Tangible Common Equity*	$	1,550,194		$	1,496,971		$	1,279,597
Common Equity to Total Assets	7.3		%	7.0		%	5.9		%
Tangible Common Equity to Tangible Assets*	7.3		%	7.0		%	5.9		%

Book Value per common share	$	49.29		$	47.73		$	41.08
Tangible Book Value per common share*	$	49.18		$	47.61		$	40.96
Common equity Tier 1 (“CET 1”) capital ratio (1)	12.5		%	12.2		%	9.6		%
Total risk based capital ratio (1)	15.6		%	15.3		%	12.3		%

(1) Regulatory capital ratios as of March 31, 2024 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.

Customers Bancorp’s common equity increased $53.2 million to $1.6 billion, and tangible common equity* increased $53.2 million to $1.6 billion, at March 31, 2024 compared to the prior quarter, respectively, primarily from earnings of $45.9 million and decreased unrealized losses on investment securities of $4.3 million (net of taxes) deferred in accumulated other comprehensive income (“AOCI”). Similarly, book value per common share increased to $49.29 from $47.73, and tangible book value per common share* increased to $49.18 from $47.61, at March 31, 2024 and December 31, 2023, respectively.

Customers Bancorp’s common equity increased $270.6 million to $1.6 billion, and tangible common equity* increased $270.6 million to $1.6 billion, at March 31, 2024 compared to a year ago, respectively, primarily from earnings of $231.1 million and decreased unrealized losses on investment securities in AOCI of $24.0 million (net of taxes). Similarly, book value per common share increased to $49.29 from $41.08, and tangible book value per common share* increased to $49.18 from $40.96, at March 31, 2024 and March 31, 2023, respectively.

At the Customers Bancorp level, the CET 1 ratio (estimate), total risk based capital ratio (estimate), common equity to total assets ratio and tangible common equity to tangible assets ratio* (“TCE / TA ratio”) were 12.5%, 15.6%, 7.3%, and 7.3%, respectively, at March 31, 2024.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At March 31, 2024, Tier 1 capital (estimate) and total risk based capital (estimate) were 14.0% and 15.7%, respectively.

“Even though we remain well capitalized by all regulatory measures, we are committed to maintaining our CET 1 ratio around 11.5% and growing our TCE / TA ratio* to 7.5% in 2024,” stated Jay Sidhu.

Key Profitability Trends

Net Interest Income

Net interest income totaled $160.4 million in Q1 2024, a decrease of $12.1 million from Q4 2023. This decrease was due to lower interest income of $14.1 million primarily due to the reduction of higher yielding loans and securities that exited the bank in the fourth quarter, and the measured pace of replenishing those interest-earning assets in the first quarter. Partially offsetting this decline was lower interest expense of $2.0 million due to the reduction of FHLB advances and positive remix of wholesale CDs with business unit deposits*2 that we executed in the fourth and first quarters.

“We experienced a modest decline in net interest income in the first quarter due to the selective reduction of higher yielding loans and securities in last quarter. This quarter we also reserved loan growth capacity in anticipation of the onboarding of the new teams. As we deploy excess liquidity, currently on the balance sheet in cash and securities, our net interest income is expected to grow and our net interest margin is expected to expand over the remainder of the year. Our loan pipeline grew meaningfully in the first quarter, which will benefit interest income and margin for the remainder of the year. For the second quarter in a row we reported lower interest expense compared to the prior quarter. The continued replacement of wholesale deposits and the remix of higher cost less strategic business unit deposits*2 is expected to continue to drive interest expense lower going forward. The combination of these efforts will benefit our net interest income throughout 2024 and beyond,” stated Customers Bancorp President Sam Sidhu.

Net interest income totaled $160.4 million in Q1 2024, an increase of $10.5 million from Q1 2023. This increase was due to higher interest income of $16.8 million primarily due to variable rate lower credit risk specialized lending verticals and interest earning deposits from higher market interest rates, and lower interest expense from lower average balances of borrowings, offset in part by higher interest expense on deposits of $9.8 million primarily resulting from increased market interest rates. The decrease in interest-earning assets was primarily driven by decreases in specialized lending verticals, consumer installment loans, mortgage finance loans and PPP loans included in other C&I loans. Total consumer installment loans decreased in Q1 2024 as compared to Q1 2023, as installment loans held for investment decreased primarily for risk management purposes and the implementation of a held-for-sale strategy.

Non-Interest Income

The following table presents details of non-interest income for the periods indicated:


	Three Months Ended				Increase (Decrease)		Three Months Ended				Increase (Decrease)
(Dollars in thousands)	March 31, 2024		December 31, 2023				March 31, 2024		March 31, 2023
Commercial lease income	$	9,683	$	9,035	$	648	$	9,683	$	9,326	$	357
Loan fees	5,280		5,926		(646)		5,280		3,990		1,290
Bank-owned life insurance	3,261		2,160		1,101		3,261		2,647		614
Mortgage finance transactional fees	946		927		19		946		1,074		(128)





Gain (loss) on sale of loans	10		(91)		101		10		—		10


Net gain (loss) on sale of investment securities	(30)		(145)		115		(30)		—		(30)






Other	2,081		860		1,221		2,081		1,084		997
Total non-interest income	$	21,231	$	18,672	$	2,559	$	21,231	$	18,121	$	3,110

Non-interest income totaled $21.2 million for Q1 2024, an increase of $2.6 million compared to Q4 2023. The increase was primarily due to increases in death benefits paid by insurance carriers under bank-owned life insurance policies, commercial lease income and other income.

Non-interest income totaled $21.2 million for Q1 2024, an increase of $3.1 million compared to Q1 2023. The increase was primarily due to increases in loan fees of $1.3 million resulting from increased servicing-related revenue and unused line of credit fees, death benefits paid by insurance carriers under bank-owned life insurance policies, commercial lease income and other income.

2 Total deposits excluding wholesale CDs and BMTX student-related deposits.

Non-Interest Expense

The following table presents details of non-interest expense for the periods indicated:


	Three Months Ended				Increase (Decrease)		Three Months Ended				Increase (Decrease)
(Dollars in thousands)	March 31, 2024		December 31, 2023				March 31, 2024		March 31, 2023
Salaries and employee benefits	$	36,025	$	33,965	$	2,060	$	36,025	$	32,345	$	3,680
Technology, communication and bank operations	21,904		16,887		5,017		21,904		16,589		5,315
Commercial lease depreciation	7,970		7,357		613		7,970		7,875		95
Professional services	6,353		9,820		(3,467)		6,353		7,596		(1,243)
Loan servicing	4,031		3,779		252		4,031		4,661		(630)
Occupancy	2,347		2,320		27		2,347		2,760		(413)
FDIC assessments, non-income taxes and regulatory fees	13,469		13,977		(508)		13,469		2,728		10,741

Advertising and promotion	682		850		(168)		682		1,049		(367)





Other	6,388		4,812		1,576		6,388		4,530		1,858
Total non-interest expense	$	99,169	$	93,767	$	5,402	$	99,169	$	80,133	$	19,036

Non-interest expenses totaled $99.2 million in Q1 2024, an increase of $5.4 million compared to Q4 2023. The increase was primarily attributable to certain one-time items which included deposit servicing-related fees of $7.1 million in technology, communications and bank operations and FDIC premiums of $4.2 million, both of which relate to periods prior to 2024. There was also an increase in the estimated industry-wide FDIC special assessment of $0.5 million in Q1 2024 from the $3.7 million FDIC special assessment fee recorded in Q4 2023. Excluding the impact of these amounts, total non-interest expenses were $87.4 million, which decreased $2.7 million in Q1 2024 compared to $90.0 million in Q4 2023. Other changes during the quarter include an increase of $2.1 million in salaries and employee benefits primarily due to higher incentives and stock awards and a decrease of $3.5 million in professional fees. Q1 2024 adjusted core non-interest expenses* were $87.4 million, a decrease of $2.1 million over Q4 2023.

Non-interest expenses totaled $99.2 million in Q1 2024, an increase of $19.0 million compared to Q1 2023. The increase was primarily attributable to increases of $10.7 million in FDIC assessments, non-income taxes and regulatory fees resulting primarily from higher FDIC assessments, one-time FDIC premiums of $4.2 million relating to periods prior to 2024 and an increase in the estimated industry-wide FDIC special assessment of $0.5 million, $5.3 million in technology, communications and bank operations which included the one-time deposit servicing-related fees and $3.7 million in salaries and employee benefits primarily due to higher headcount, annual merit increases and incentives. These increases were partially offset by a decrease of $1.2 million in professional fees.

Taxes

Income tax expense decreased by $6.1 million to $15.7 million in Q1 2024 from $21.8 million in Q4 2023 primarily due to lower pre-tax income.

Income tax expense increased by $1.1 million to $15.7 million in Q1 2024 from $14.6 million in Q1 2023 primarily due to a decrease in estimated income tax credits for 2024.

The effective tax rate for Q1 2024 was 24%. Customers expects the full-year 2024 effective tax rate to be approximately 22% to 24%.

Outlook

“Looking forward, our strategy and risk management principles remain unchanged. We are focused on managing risk, strengthening our deposit franchise, further improving our profitability and maintaining our strong capital ratios. Our deposits are expected to grow modestly with continued improvement in the quality of deposits, reducing higher cost business unit deposits*1 with lower cost deposits where we have a holistic and primary relationship. The addition of the new banking teams is expected to accelerate and enhance these efforts which were already well underway. We see attractive opportunities to deploy cash and securities cash flows into franchise-enhancing loan growth and our pipeline is strong. We remain confident in our ability to deliver 10% - 15% loan growth for the full year. The management of non-interest expenses remains a priority for us. Our adjusted core non-interest expense*, which excludes certain one-time items, declined from the core non-interest expense in the prior quarter. We expect the investments made in recruiting the new banking teams will produce significant benefits by increasing our net interest income and net interest margin primarily through lowering our interest expense costs as well as improving the overall quality of our deposit franchise. Operating efficiency has and will continue to be a differentiator of our business model, and we will continue to only make investments that generate long-term positive operating leverage and enable the organization to operate at a mid-40’s efficiency ratio. The onboarding of our new banking teams will elevate our efficiency ratio temporarily, but we are confident in our ability to operate with a mid-40’s efficiency ratio over the medium term. We remain committed to maintaining a CET 1 ratio around 11.5% in 2024, and growing our TCE / TA ratio* to 7.5%. We are highly focused on preserving superior credit quality, managing interest rate risk, maintaining robust liquidity, operating with higher capital ratios and generating positive operating leverage,” concluded Sam Sidhu.

*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.

1 Total deposits excluding wholesale CDs and BMTX student-related deposits.

Webcast

Date: Friday, April 26, 2024

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 Communications Director, David Patti at dpatti@customersbank.com.

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 $22 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 lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:

•No. 5 on American Banker 2023 list of top-performing banks with $10B to $50B in assets

•No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list

•No. 52 on Investor’s Business Daily 100 Best Stocks for 2023

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 impact of COVID-19 and its variants on the U.S. economy and customer behavior, 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 continued success and acceptance of our blockchain payments system, 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, 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, 2023, 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.

Q1 2024 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended March 31, 2024 and the preceding four quarters:


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED

(Dollars in thousands, except per share data and stock price data)		Q1			Q4			Q3			Q2			Q1
		2024			2023			2023			2023			2023

GAAP Profitability Metrics:
Net income available to common shareholders		$	45,926		$	58,223		$	82,953		$	44,007		$	50,265
Per share amounts:

	Earnings per share - basic	$	1.46		$	1.86		$	2.65		$	1.41		$	1.58

	Earnings per share - diluted	$	1.40		$	1.79		$	2.58		$	1.39		$	1.55
	Book value per common share (1)	$	49.29		$	47.73		$	45.47		$	42.16		$	41.08
	CUBI stock price (1)	$	53.06		$	57.62		$	34.45		$	30.26		$	18.52
	CUBI stock price as % of book value (1)	108		%	121		%	76		%	72		%	45		%
Average shares outstanding - basic		31,473,424			31,385,043			31,290,581			31,254,125			31,819,203
Average shares outstanding - diluted		32,854,534			32,521,787			32,175,084			31,591,142			32,345,017
Shares outstanding (1)		31,521,931			31,440,906			31,311,254			31,282,318			31,239,750
Return on average assets (“ROAA”)		0.94		%	1.16		%	1.57		%	0.88		%	1.03		%
Return on average common equity (“ROCE”)		12.08		%	15.93		%	23.97		%	13.22		%	16.00		%
Net interest margin, tax equivalent		3.10		%	3.31		%	3.70		%	3.15		%	2.96		%
Efficiency ratio		54.58		%	49.08		%	41.01		%	49.25		%	47.71		%
Non-GAAP Profitability Metrics (2):
Core earnings		$	46,532		$	61,633		$	83,294		$	52,163		$	51,143
Core pre-tax pre-provision net income		$	83,674		$	101,884		$	128,564		$	96,833		$	89,282
Per share amounts:
	Core earnings per share - diluted	$	1.42		$	1.90		$	2.59		$	1.65		$	1.58
	Tangible book value per common share (1)	$	49.18		$	47.61		$	45.36		$	42.04		$	40.96
	CUBI stock price as % of tangible book value (1)	108		%	121		%	76		%	72		%	45		%
Core ROAA		0.95		%	1.22		%	1.57		%	1.03		%	1.05		%
Core ROCE		12.24		%	16.87		%	24.06		%	15.67		%	16.28		%
Core pre-tax pre-provision ROAA		1.58		%	1.90		%	2.32		%	1.79		%	1.72		%
Core pre-tax pre-provision ROCE		21.01		%	26.82		%	36.04		%	28.01		%	27.33		%

Core efficiency ratio		54.24		%	46.70		%	41.04		%	47.84		%	47.09		%
Asset Quality:
Net charge-offs		$	17,968		$	17,322		$	17,498		$	15,564		$	18,651
Annualized net charge-offs to average total loans and leases		0.55		%	0.51		%	0.50		%	0.42		%	0.49		%
Non-performing loans (“NPLs”) to total loans and leases (1)		0.27		%	0.21		%	0.22		%	0.20		%	0.21		%
Reserves to NPLs (1)		373.86		%	499.12		%	466.11		%	494.46		%	405.56		%
Non-performing assets (“NPAs”) to total assets		0.17		%	0.13		%	0.14		%	0.13		%	0.15		%
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets		14.0		%	13.77		%	12.97		%	11.96		%	11.31		%
Tier 1 capital to risk-weighted assets		14.0		%	13.77		%	12.97		%	11.96		%	11.31		%
Total capital to risk-weighted assets		15.7		%	15.28		%	14.45		%	13.38		%	12.64		%
Tier 1 capital to average assets (leverage ratio)		8.8		%	8.71		%	8.25		%	8.00		%	8.09		%

(1) Metric is a spot balance for the last day of each quarter presented.
(2) 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.
(3) Regulatory capital ratios are estimated for Q1 2024 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of March 31, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)
	Q1		Q4		Q3		Q2		Q1
	2024		2023		2023		2023		2023
Interest income:
Loans and leases	$	217,999	$	239,453	$	271,107	$	241,745	$	244,212
Investment securities	46,802		51,074		54,243		48,026		47,316
Interest earning deposits	52,817		44,104		43,800		27,624		10,395
Loans held for sale	12,048		8,707		4,664		11,149		11,701
Other	2,111		2,577		2,526		1,616		1,321
Total interest income	331,777		345,915		376,340		330,160		314,945

Interest expense:
Deposits	153,725		150,307		145,825		136,375		143,930
FHLB advances	13,485		18,868		26,485		24,285		10,370
FRB advances	—		—		—		—		6,286
Subordinated debt	2,689		2,688		2,689		2,689		2,689

Other borrowings	1,493		1,546		1,568		1,540		1,771
Total interest expense	171,392		173,409		176,567		164,889		165,046
Net interest income	160,385		172,506		199,773		165,271		149,899
Provision for credit losses	17,070		13,523		17,856		23,629		19,603
Net interest income after provision for credit losses	143,315		158,983		181,917		141,642		130,296

Non-interest income:
Commercial lease income	9,683		9,035		8,901		8,917		9,326
Loan fees	5,280		5,926		6,029		4,271		3,990
Bank-owned life insurance	3,261		2,160		1,973		4,997		2,647
Mortgage finance transactional fees	946		927		1,018		1,376		1,074





Gain (loss) on sale of loans	10		(91)		(348)		(761)		—
Loss on sale of capital call lines of credit	—		—		—		(5,037)		—

Net gain (loss) on sale of investment securities	(30)		(145)		(429)		—		—






Other	2,081		860		631		2,234		1,084
Total non-interest income	21,231		18,672		17,775		15,997		18,121

Non-interest expense:
Salaries and employee benefits	36,025		33,965		33,845		33,120		32,345
Technology, communication and bank operations	21,904		16,887		15,667		16,407		16,589
Commercial lease depreciation	7,970		7,357		7,338		7,328		7,875
Professional services	6,353		9,820		8,569		9,192		7,596
Loan servicing	4,031		3,779		3,858		4,777		4,661
Occupancy	2,347		2,320		2,471		2,519		2,760
FDIC assessments, non-income taxes and regulatory fees	13,469		13,977		8,551		9,780		2,728
Advertising and promotion	682		850		650		546		1,049





Legal settlement expense	—		—		4,096		—		—
Other	6,388		4,812		4,421		5,628		4,530
Total non-interest expense	99,169		93,767		89,466		89,297		80,133
Income before income tax expense	65,377		83,888		110,226		68,342		68,284
Income tax expense	15,651		21,796		23,470		20,768		14,563
















Net income	49,726		62,092		86,756		47,574		53,721
Preferred stock dividends	3,800		3,869		3,803		3,567		3,456

Net income available to common shareholders	$	45,926	$	58,223	$	82,953	$	44,007	$	50,265



Basic earnings per common share	$	1.46	$	1.86	$	2.65	$	1.41	$	1.58


Diluted earnings per common share	1.40		1.79		2.58		1.39		1.55


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
	March 31,		December 31,		September 30,		June 30,		March 31,
	2024		2023		2023		2023		2023
ASSETS
Cash and due from banks	$	51,974	$	45,210	$	68,288	$	54,127	$	77,251
Interest earning deposits	3,649,146		3,801,136		3,351,686		3,101,097		1,969,434
Cash and cash equivalents	3,701,120		3,846,346		3,419,974		3,155,224		2,046,685
Investment securities, at fair value	2,604,868		2,405,640		2,773,207		2,824,638		2,926,969
Investment securities held to maturity	1,032,037		1,103,170		1,178,370		1,258,560		870,294

Loans held for sale	357,640		340,317		150,368		78,108		424,057


Loans and leases receivable	11,936,621		11,963,855		12,600,548		12,826,531		13,391,610
Loans receivable, mortgage finance, at fair value	962,610		897,912		962,566		1,006,268		1,247,367
Allowance for credit losses on loans and leases	(133,296)		(135,311)		(139,213)		(139,656)		(130,281)
Total loans and leases receivable, net of allowance for credit losses on loans and leases	12,765,935		12,726,456		13,423,901		13,693,143		14,508,696
FHLB, Federal Reserve Bank, and other restricted stock	100,067		109,548		126,098		126,240		124,733
Accrued interest receivable	120,123		114,766		123,984		119,501		123,754
Bank premises and equipment, net	7,253		7,371		7,789		8,031		8,581
Bank-owned life insurance	293,400		292,193		291,670		290,322		339,607

Goodwill and other intangibles	3,629		3,629		3,629		3,629		3,629

Other assets	361,295		366,829		358,162		471,169		374,609

Total assets	$	21,347,367	$	21,316,265	$	21,857,152	$	22,028,565	$	21,751,614

LIABILITIES AND SHAREHOLDERS’ EQUITY
Demand, non-interest bearing deposits	$	4,688,880	$	4,422,494	$	4,758,682	$	4,490,198	$	3,487,517
Interest bearing deposits	13,272,503		13,497,742		13,436,682		13,460,233		14,236,100
Total deposits	17,961,383		17,920,236		18,195,364		17,950,431		17,723,617



FHLB advances	1,195,088		1,203,207		1,529,839		2,046,142		2,052,143
Other borrowings	123,905		123,840		123,775		123,710		123,645
Subordinated debt	182,300		182,230		182,161		182,091		182,021


Accrued interest payable and other liabilities	193,074		248,358		264,406		269,539		249,168

Total liabilities	19,655,750		19,677,871		20,295,545		20,571,913		20,330,594

Preferred stock	137,794		137,794		137,794		137,794		137,794
Common stock	35,540		35,459		35,330		35,301		35,258
Additional paid in capital	567,490		564,538		559,346		555,737		552,255
Retained earnings	1,205,508		1,159,582		1,101,359		1,018,406		974,399
Accumulated other comprehensive income (loss), net	(132,305)		(136,569)		(149,812)		(168,176)		(156,276)
Treasury stock, at cost	(122,410)		(122,410)		(122,410)		(122,410)		(122,410)
Total shareholders’ equity	1,691,617		1,638,394		1,561,607		1,456,652		1,421,020
Total liabilities and shareholders’ equity	$	21,347,367	$	21,316,265	$	21,857,152	$	22,028,565	$	21,751,614


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
	Three Months Ended
	March 31, 2024					December 31, 2023					March 31, 2023
	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	$	3,865,028	$	52,817	5.50%	$	3,191,677	$	44,104	5.48%	$	914,149	$	10,395	4.61%
Investment securities (1)	3,771,097		46,802		4.99%	4,007,418		51,074		5.10%	4,031,247		47,316		4.69%
Loans and leases:
Commercial & industrial:

Specialized lending loans and leases (2)	5,268,345		115,590		8.82%	5,574,149		130,838		9.31%	5,694,168		103,688		7.38%
Other commercial & industrial loans (2)(3)	1,654,665		26,714		6.49%	1,666,052		28,053		6.68%	2,594,440		49,121		7.68%
Mortgage finance loans	1,033,177		12,830		4.99%	997,353		13,726		5.46%	1,262,139		17,412		5.59%
Multifamily loans	2,121,650		21,255		4.03%	2,131,750		22,347		4.16%	2,206,600		20,470		3.76%

Non-owner occupied commercial real estate loans	1,348,468		20,179		6.02%	1,392,684		20,686		5.89%	1,449,722		20,199		5.65%
Residential mortgages	522,528		5,708		4.39%	526,422		5,942		4.48%	542,909		5,598		4.18%
Installment loans	1,179,721		27,771		9.47%	1,198,043		26,568		8.80%	1,727,995		39,425		9.25%




Total loans and leases (4)	13,128,554		230,047		7.05%	13,486,453		248,160		7.30%	15,477,973		255,913		6.70%
Other interest-earning assets	107,525		2,111		7.90%	116,756		2,577		8.75%	91,308		1,321		5.87%
Total interest-earning assets	20,872,204		331,777		6.39%	20,802,304		345,915		6.61%	20,514,677		314,945		6.21%
Non-interest-earning assets	463,025					449,969					538,243

Total assets	$	21,335,229				$	21,252,273				$	21,052,920
Liabilities
Interest checking accounts	$	5,538,846	$	61,531	4.47%	$	5,656,212	$	62,041	4.35%	$	7,494,379	$	70,485	3.81%
Money market deposit accounts	3,233,103		36,811		4.58%	2,802,309		29,990		4.25%	2,470,004		20,783		3.41%
Other savings accounts	1,753,118		21,399		4.91%	1,218,118		13,849		4.51%	822,312		6,286		3.10%
Certificates of deposit	2,750,788		33,984		4.97%	3,625,311		44,427		4.86%	4,504,333		46,376		4.18%
Total interest-bearing deposits (5)	13,275,855		153,725		4.66%	13,301,950		150,307		4.48%	15,291,028		143,930		3.82%
Federal funds purchased	—		—		—%	—		—		—%	15,333		188		4.97%

Borrowings	1,506,707		17,667		4.72%	1,816,047		23,102		5.05%	1,788,116		20,928		4.75%
Total interest-bearing liabilities	14,782,562		171,392		4.66%	15,117,997		173,409		4.55%	17,094,477		165,046		3.91%
Non-interest-bearing deposits (5)	4,620,986					4,270,557					2,299,295
Total deposits and borrowings	19,403,548				3.55%	19,388,554				3.55%	19,393,772				3.45%
Other non-interest-bearing liabilities	264,677					276,198					247,575

Total liabilities	19,668,225					19,664,752					19,641,347
Shareholders’ equity	1,667,004					1,587,521					1,411,573
Total liabilities and shareholders’ equity	$	21,335,229				$	21,252,273				$	21,052,920
Net interest income			160,385					172,506					149,899
Tax-equivalent adjustment			394					398					375
Net interest earnings			$	160,779				$	172,904				$	150,274
Interest spread					2.84%					3.06%					2.76%
Net interest margin					3.09%					3.30%					2.95%
Net interest margin tax equivalent (6)					3.10%					3.31%					2.96%















(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 PPP loans.
(4) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(5) Total costs of deposits (including interest bearing and non-interest bearing) were 3.45%, 3.39% and 3.32% for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(6) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended March 31, 2024, December 31, 2023 and March 31, 2023, 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,
	2024		2023		2023		2023		2023
Loans and leases held for investment
Commercial:

Commercial & industrial:
Specialized lending	$	5,104,405	$	5,006,693	$	5,422,161	$	5,534,832	$	5,519,176
Other commercial & industrial (1)	1,113,517		1,162,317		1,252,427		1,240,908		1,414,419
Mortgage finance	1,071,146		1,014,742		1,042,549		1,108,598		1,374,894
Multifamily	2,123,675		2,138,622		2,130,213		2,151,734		2,195,211
Commercial real estate owner occupied	806,278		797,319		794,815		842,042		895,314
Commercial real estate non-owner occupied	1,182,084		1,177,650		1,178,203		1,211,091		1,245,248
Construction	185,601		166,393		252,588		212,214		188,123

Total commercial loans and leases	11,586,706		11,463,736		12,072,956		12,301,419		12,832,385
Consumer:
Residential	482,537		484,435		483,133		487,199		494,815
Manufactured housing	37,382		38,670		40,129		41,664		43,272

Installment:
Personal	492,892		555,533		629,843		752,470		849,420
Other	299,714		319,393		337,053		250,047		419,085
Total installment loans	792,606		874,926		966,896		1,002,517		1,268,505

Total consumer loans	1,312,525		1,398,031		1,490,158		1,531,380		1,806,592
Total loans and leases held for investment	$	12,899,231	$	12,861,767	$	13,563,114	$	13,832,799	$	14,638,977

Loans held for sale
Commercial:




Multifamily	$	—	$	—	$	—	$	—	$	4,051



Commercial real estate non-owner occupied	—		—		—		—		16,000

Total commercial loans and leases	—		—		—		—		20,051
Consumer:
Residential	870		1,215		1,005		1,234		821

Installment:
Personal	137,755		151,040		124,848		76,874		307,336
Other	219,015		188,062		24,515		—		95,849
Total installment loans	356,770		339,102		149,363		76,874		403,185

Total consumer loans	357,640		340,317		150,368		78,108		404,006
Total loans held for sale	$	357,640	$	340,317	$	150,368	$	78,108	$	424,057

Total loans and leases portfolio	$	13,256,871	$	13,202,084	$	13,713,482	$	13,910,907	$	15,063,034

(1) Includes PPP loans.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
	March 31,		December 31,		September 30,		June 30,		March 31,
	2024		2023		2023		2023		2023

Demand, non-interest bearing	$	4,688,880	$	4,422,494	$	4,758,682	$	4,490,198	$	3,487,517
Demand, interest bearing	5,661,775		5,580,527		5,824,410		5,551,037		5,791,302
Total demand deposits	10,350,655		10,003,021		10,583,092		10,041,235		9,278,819
Savings	2,080,374		1,402,941		1,118,353		1,048,229		924,359
Money market	3,347,843		3,226,395		2,499,593		2,004,264		2,019,633
Time deposits	2,182,511		3,287,879		3,994,326		4,856,703		5,500,806
Total deposits	$	17,961,383	$	17,920,236	$	18,195,364	$	17,950,431	$	17,723,617


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)	As of March 31, 2024										As of December 31, 2023										As of March 31, 2023
	Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs

Loan type
Commercial & industrial, including specialized lending (1)	$	6,326,458	$	3,608	$	23,003	0.06	%	637.56	%	$	6,285,840	$	4,436	$	23,503	0.07	%	529.82	%	$	7,061,122	$	3,886	$	20,050	0.06	%	515.95	%


Multifamily	2,123,675		5,161		18,307		0.24	%	354.72	%	2,138,622		—		16,343		—	%	—	%	2,195,211		881		15,084		0.04	%	1712.15	%
Commercial real estate owner occupied	806,278		8,920		10,201		1.11	%	114.36	%	797,319		5,869		9,882		0.74	%	168.38	%	895,314		3,621		8,472		0.40	%	233.97	%
Commercial real estate non-owner occupied	1,182,084		62		18,320		0.01	%	29548.39	%	1,177,650		—		16,859		—	%	—	%	1,245,248		—		11,032		—	%	—	%
Construction	185,601		—		1,866		—	%	—	%	166,393		—		1,482		—	%	—	%	188,123		—		2,336		—	%	—	%

Total commercial loans and leases receivable	10,624,096		17,751		71,697		0.17	%	403.90	%	10,565,824		10,305		68,069		0.10	%	660.54	%	11,585,018		8,388		56,974		0.07	%	679.23	%
Residential	482,537		8,089		6,707		1.68	%	82.92	%	484,435		6,802		6,586		1.40	%	96.82	%	494,815		6,473		6,853		1.31	%	105.87	%
Manufactured housing	37,382		2,268		4,160		6.07	%	183.42	%	38,670		2,331		4,239		6.03	%	181.85	%	43,272		2,568		4,339		5.93	%	168.96	%
Installment	792,606		6,958		50,732		0.88	%	729.12	%	874,926		7,211		56,417		0.82	%	782.37	%	1,268,505		8,720		62,115		0.69	%	712.33	%



Total consumer loans receivable	1,312,525		17,315		61,599		1.32	%	355.76	%	1,398,031		16,344		67,242		1.17	%	411.42	%	1,806,592		17,761		73,307		0.98	%	412.74	%
Loans and leases receivable	11,936,621		35,066		133,296		0.29	%	380.13	%	11,963,855		26,649		135,311		0.22	%	507.75	%	13,391,610		26,149		130,281		0.20	%	498.23	%

Loans receivable, mortgage finance, at fair value	962,610		—		—		—	%	—	%	897,912		—		—		—	%	—	%	1,247,367		—		—		—	%	—	%

Loans held for sale	357,640		588		—		0.16	%	—	%	340,317		461		—		0.14	%	—	%	424,057		5,975		—		1.41	%	—	%
Total portfolio	$	13,256,871	$	35,654	$	133,296	0.27	%	373.86	%	$	13,202,084	$	27,110	$	135,311	0.21	%	499.12	%	$	15,063,034	$	32,124	$	130,281	0.21	%	405.56	%

(1) Includes PPP loans.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
	Q1		Q4		Q3		Q2		Q1
	2024		2023		2023		2023 (1)		2023
Loan type
Commercial & industrial, including specialized lending	$	3,672	$	5,282	$	2,974	$	258	$	(71)



Multifamily	473		127		1,999		1,448		—
Commercial real estate owner occupied	22		—		39		(34)		—
Commercial real estate non-owner occupied	—		(288)		—		266		4,234
Construction	—		—		—		—		(116)
Residential	18		(1)		13		24		(2)
Installment	13,783		12,202		12,473		13,602		14,606




Total net charge-offs (recoveries) from loans held for investment	$	17,968	$	17,322	$	17,498	$	15,564	$	18,651

(1) Excludes $6.2 million of charge-offs for certain PCD loans acquired from the FDIC that were immediately applied against $8.7 million of allowance for credit losses on PCD loans recognized upon the acquisition of the loan portfolio on June 15, 2023. Subsequent recoveries and charge-offs of these PCD loans will be included in the period in which they occur.

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.

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


Core Earnings and Adjusted Core Earnings - Customers Bancorp
	Q1 2024				Q4 2023				Q3 2023				Q2 2023				Q1 2023
(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	$	45,926	$	1.40	$	58,223	$	1.79	$	82,953	$	2.58	$	44,007	$	1.39	$	50,265	$	1.55
Reconciling items (after tax):

Severance expense	—		—		473		0.01		—		—		141		0.00		637		0.02
Impairments on fixed assets and leases	—		—		—		—		—		—		12		0.00		86		0.00



Loss on sale of capital call lines of credit	—		—		—		—		—		—		3,914		0.12		—		—


(Gains) losses on investment securities	57		0.00		(85)		0.00		492		0.02		49		0.00		(49)		0.00


Derivative credit valuation adjustment	169		0.01		267		0.01		(151)		0.00		(101)		0.00		204		0.01
Tax on surrender of bank-owned life insurance policies	—		—		—		—		—		—		4,141		0.13		—		—
FDIC special assessment	380		0.01		2,755		0.08		—		—		—		—		—		—





Core earnings	$	46,532	$	1.42	$	61,633	$	1.90	$	83,294	$	2.59	$	52,163	$	1.65	$	51,143	$	1.58

One-time non-interest expense items recorded during Q1 2024 (after-tax):
Deposit servicing fees prior to 2024	5,405		0.16
FDIC premiums prior to 2024	3,200		0.10
Total one-time non-interest expense items	8,605		0.26
Adjusted core earnings (adjusted for one-time non-interest expense items)	$	55,137	$	1.68

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp
(Dollars in thousands, except per share data)	Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
GAAP net income	$	49,726		$	62,092		$	86,756		$	47,574		$	53,721
Reconciling items (after tax):

Severance expense	—			473			—			141			637
Impairments on fixed assets and leases	—			—			—			12			86



Loss on sale of capital call lines of credit	—			—			—			3,914			—


(Gains) losses on investment securities	57			(85)			492			49			(49)


Derivative credit valuation adjustment	169			267			(151)			(101)			204
Tax on surrender of bank-owned life insurance policies	—			—			—			4,141			—
FDIC special assessment	380			2,755			—			—			—





Core net income	$	50,332		$	65,502		$	87,097		$	55,730		$	54,599

One-time non-interest expense items recorded during Q1 2024 (after-tax):
Deposit servicing fees prior to 2024	5,405
FDIC premiums prior to 2024	3,200
Total one-time non-interest expense items	8,605
Adjusted core net income (adjusted for one-time non-interest expense items)	$	58,937

Average total assets	$	21,335,229		$	21,252,273		$	21,978,010		$	21,654,735		$	21,052,920

Core return on average assets	0.95		%	1.22		%	1.57		%	1.03		%	1.05		%
Adjusted core return on average assets (adjusted for one-time non-interest expense items)	1.11		%


Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp
(Dollars in thousands, except per share data)	Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
GAAP net income	$	49,726		$	62,092		$	86,756		$	47,574		$	53,721
Reconciling items:
Income tax expense	15,651			21,796			23,470			20,768			14,563
Provision (benefit) for credit losses	17,070			13,523			17,856			23,629			19,603
Provision (benefit) for credit losses on unfunded commitments	430			(136)			48			(304)			280
Severance expense	—			639			—			182			809

Impairments on fixed assets and leases	—			—			—			15			109



Loss on sale of capital call lines of credit	—			—			—			5,037			—


(Gains) losses on investment securities	75			(114)			626			62			(62)


Derivative credit valuation adjustment	222			361			(192)			(130)			259
FDIC special assessment	500			3,723			—			—			—





Core pre-tax pre-provision net income	$	83,674		$	101,884		$	128,564		$	96,833		$	89,282

One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024	7,106
FDIC premiums prior to 2024	4,208
Total one-time non-interest expense items	11,314
Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items)	$	94,988

Average total assets	$	21,335,229		$	21,252,273		$	21,978,010		$	21,654,735		$	21,052,920

Core pre-tax pre-provision ROAA	1.58		%	1.90		%	2.32		%	1.79		%	1.72		%

Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)	1.79		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp
(Dollars in thousands, except per share data)	Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
GAAP net income to common shareholders	$	45,926		$	58,223		$	82,953		$	44,007		$	50,265
Reconciling items (after tax):

Severance expense	—			473			—			141			637
Impairments on fixed assets and leases	—			—			—			12			86



Loss on sale of capital call lines of credit	—			—			—			3,914			—


(Gains) losses on investment securities	57			(85)			492			49			(49)


Derivative credit valuation adjustment	169			267			(151)			(101)			204
Tax on surrender of bank-owned life insurance policies	—			—			—			4,141			—
FDIC special assessment	380			2,755			—			—			—





Core earnings	$	46,532		$	61,633		$	83,294		$	52,163		$	51,143

One-time non-interest expense items recorded during Q1 2024 (after-tax):
Deposit servicing fees prior to 2024	5,405
FDIC premiums prior to 2024	3,200
Total one-time non-interest expense items	8,605
Adjusted core earnings (adjusted for one-time non-interest expense items)	$	55,137

Average total common shareholders’ equity	$	1,529,211		$	1,449,728		$	1,373,244		$	1,335,408		$	1,273,780

Core return on average common equity	12.24		%	16.87		%	24.06		%	15.67		%	16.28		%

Adjusted core return on average common equity (adjusted for one-time non-interest expense items)	14.50		%


Core Pre-Tax Pre-Provision ROCE and Adjusted Core Pre-Tax Pre-Provision ROCE - Customers Bancorp
(Dollars in thousands, except per share data)	Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
GAAP net income to common shareholders	$	45,926		$	58,223		$	82,953		$	44,007		$	50,265
Reconciling items:
Income tax expense	15,651			21,796			23,470			20,768			14,563
Provision (benefit) for credit losses	17,070			13,523			17,856			23,629			19,603
Provision (benefit) for credit losses on unfunded commitments	430			(136)			48			(304)			280

Severance expense	—			639			—			182			809
Impairments on fixed assets and leases	—			—			—			15			109



Loss on sale of capital call lines of credit	—			—			—			5,037			—


(Gains) losses on investment securities	75			(114)			626			62			(62)


Derivative credit valuation adjustment	222			361			(192)			(130)			259
FDIC special assessment	500			3,723			—			—			—





Core pre-tax pre-provision net income available to common shareholders	$	79,874		$	98,015		$	124,761		$	93,266		$	85,826

One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024	7,106
FDIC premiums prior to 2024	4,208
Total one-time non-interest expense items	11,314
Adjusted core pre-tax pre-provision net income available to common shareholders	$	91,188

Average total common shareholders’ equity	$	1,529,211		$	1,449,728		$	1,373,244		$	1,335,408		$	1,273,780

Core pre-tax pre-provision ROCE	21.01		%	26.82		%	36.04		%	28.01		%	27.33		%

Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)	23.98		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp
(Dollars in thousands, except per share data)	Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
GAAP net interest income	$	160,385		$	172,506		$	199,773		$	165,271		$	149,899

GAAP non-interest income	$	21,231		$	18,672		$	17,775		$	15,997		$	18,121


Loss on sale of capital call lines of credit	—			—			—			5,037			—
(Gains) losses on investment securities	75			(114)			626			62			(62)
Derivative credit valuation adjustment	222			361			(192)			(130)			259





Core non-interest income	21,528			18,919			18,209			20,966			18,318
Core revenue	$	181,913		$	191,425		$	217,982		$	186,237		$	168,217


GAAP non-interest expense	$	99,169		$	93,767		$	89,466		$	89,297		$	80,133
Severance expense	—			(639)			—			(182)			(809)
Impairments on fixed assets and leases	—			—			—			(15)			(109)
FDIC special assessment	(500)			(3,723)			—			—			—





Core non-interest expense	$	98,669		$	89,405		$	89,466		$	89,100		$	79,215

One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024	(7,106)
FDIC premiums prior to 2024	(4,208)
Total one-time non-interest expense items	(11,314)
Adjusted core non-interest expense	$	87,355

Core efficiency ratio (1)	54.24		%	46.70		%	41.04		%	47.84		%	47.09		%

Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)	48.02		%

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

(2) Adjusted core efficiency ratio calculated as adjusted core non-interest expense divided by core revenue.


Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- Customers Bancorp
(Dollars in thousands, except per share data)	Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
GAAP non-interest expense	$	99,169		$	93,767		$	89,466		$	89,297		$	80,133
Severance expense	—			(639)			—			(182)			(809)
Impairments on fixed assets and leases	—			—			—			(15)			(109)
FDIC special assessment	(500)			(3,723)			—			—			—





Core non-interest expense	$	98,669		$	89,405		$	89,466		$	89,100		$	79,215


One-time non-interest expense items recorded during Q1 2024:
Deposit servicing fees prior to 2024	(7,106)
FDIC premiums prior to 2024	(4,208)
Total one-time non-interest expense items	(11,314)
Adjusted core non-interest expense	$	87,355


Average total assets	$	21,335,229		$	21,252,273		$	21,978,010		$	21,654,735		$	21,052,920


Core non-interest expense to average total assets	1.86		%	1.67		%	1.62		%	1.65		%	1.53		%

Adjusted core non-interest expense to average total assets (adjusted for one-time non-interest expense items)	1.65		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)



Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - Customers Bancorp

(Dollars in thousands, except per share data)	Q1 2024		Q4 2023		Q3 2023		Q2 2023		Q1 2023
Total deposits	$	17,961,383	$	17,920,236	$	18,195,364	$	17,950,431	$	17,723,617
Reconciling items:
Wholesale CDs	1,809,573		2,970,615		3,713,933		4,651,054		5,311,083
BMTX student deposits	850		1,157		636,951		407,118		506,922
Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits)	$	16,150,960	$	14,948,464	$	13,844,480	$	12,892,259	$	11,905,612


Tangible Common Equity to Tangible Assets - Customers Bancorp

(Dollars in thousands, except per share data)	Q1 2024			Q4 2023			Q3 2023			Q2 2023			Q1 2023
GAAP total shareholders’ equity	$	1,691,617		$	1,638,394		$	1,561,607		$	1,456,652		$	1,421,020
Reconciling items:
Preferred stock	(137,794)			(137,794)			(137,794)			(137,794)			(137,794)
Goodwill and other intangibles	(3,629)			(3,629)			(3,629)			(3,629)			(3,629)
Tangible common equity	$	1,550,194		$	1,496,971		$	1,420,184		$	1,315,229		$	1,279,597

GAAP total assets	$	21,347,367		$	21,316,265		$	21,857,152		$	22,028,565		$	21,751,614
Reconciling items:
Goodwill and other intangibles	(3,629)			(3,629)			(3,629)			(3,629)			(3,629)
Tangible assets	$	21,343,738		$	21,312,636		$	21,853,523		$	22,024,936		$	21,747,985

Tangible common equity to tangible assets	7.3		%	7.0		%	6.5		%	6.0		%	5.9		%


Tangible Book Value per Common Share - Customers Bancorp

(Dollars in thousands, except share and per share data)	Q1 2024		Q4 2023		Q3 2023		Q2 2023		Q1 2023
GAAP total shareholders’ equity	$	1,691,617	$	1,638,394	$	1,561,607	$	1,456,652	$	1,421,020
Reconciling Items:

Preferred stock	(137,794)		(137,794)		(137,794)		(137,794)		(137,794)
Goodwill and other intangibles	(3,629)		(3,629)		(3,629)		(3,629)		(3,629)
Tangible common equity	$	1,550,194	$	1,496,971	$	1,420,184	$	1,315,229	$	1,279,597

Common shares outstanding	31,521,931		31,440,906		31,311,254		31,282,318		31,239,750

Tangible book value per common share	$	49.18	$	47.61	$	45.36	$	42.04	$	40.96

q124investorpresentation

“A Forward-Thinking Bank with Strong Risk Management“ Let’s take on tomorrow. Investor Presentation: Q1 2024 April 2024

2 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. In addition to historical information, this presentation 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 impact of COVID-19 and its variants on the U.S. economy and customer behavior, 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 continued success and acceptance of our blockchain payments system, 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, 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, 2023, 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. This does not constitute an offer to sell, or a solicitation of an offer to buy, any security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Forward-Looking Statements

3 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Adjusted core EPS1,2 excluding certain one-time items of $1.68; above consensus Strength of the Franchise Maintaining Superior Credit Quality Strong Capital and Liquidity TCE/TA1 increased to 7.3%; approaching ~7.5% target CET14 increased to 12.5%4 Immediately available liquidity greater than 220% of uninsured deposits5 NPA ratio remains at low level of 0.17% Minimal exposure to higher-risk office CRE asset classes which represents only ~1% of HFI loan portfolio $1.2 billion of business unit deposit1,3 growth used to repay $1.2 billion of wholesale funding Deposit pipeline remains robust at $2.0 billion+ Non-interest bearing deposits account for 26% of total deposits; wholesale CDs now represent only 10% of total deposits Management Outlook Remain optimistic on ability to deliver strong financial results with higher margins and higher NII New banking teams to further build our strong and unique franchise Q1’24 Earnings Review Let’s take on tomorrow. 1. Non-GAAP measure, refer to appendix for reconciliation 2. Excludes certain one-time pre-tax items of $11.3 million 3. Total deposits excluding wholesale CDs and BMTX student-related deposits 4. Capital ratios are estimated pending final regulatory report 5. Uninsured deposits of $5.2 billion (estimate) to be reported on Customers Bank’s call report less $1.1 billion of collateralized deposits and $0.1 billion of affiliate deposits A Forward-Thinking Bank with Strong Risk Management Exceptional 5-year track record Successful deposit transformation with strong balance sheet in 2023 Significant tailwinds in 2024 with 10 new very experienced banking teams from legacy Signature Bank Track Record and Recent Strategic Moves

4 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Let’s take on tomorrow. Our Priorities Remain Unchanged Selectively pursue disciplined growth by focusing on holistic and strategic relationships that create franchise value Focus on further strengthening our balance sheet, improving liquidity, capital ratios and margins Not deviate from strong risk management principles: − Superior credit quality − Sound interest rate risk management − Maintain robust liquidity − Strong capital ratios − Positive operating leverage

5 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Demonstrated Sustainable Organic Growth Increasing Revenue, EPS and TBVPS at 15%+ CAGR Over the Last Five Years 2018 2023 $317 $75819% Total Revenue $ millions Non-Interest Expenses $ millions Diluted EPS per share Tangible Book Value1 per share $1.78 $7.32 2018 2023 33% $23.32 $47.61 2018 2023 15% 2018 2023 $220 $353 10% Revenues have grown at roughly 2x the CAGR of expenses Customers will continue to make investments in the business that drive positive operating leverage 1.0 TRACK RECORD AND RECENT STRATEGIC MOVES 1. Non-GAAP measure, refer to appendix for reconciliation

6 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. $500 billion of dislocated deposits from disrupted banks in 2023 $4.2 billion of business unit deposit1,2 growth in the last 12 months; substantial opportunity remains Customers has Substantial Momentum Following the Banking Events of March 2023 Exited Non-Strategic Relationships Sold $1.2 billion of Fund Finance commitments and Consumer Installment loans Transactions released substantial risk-weighted asset capacity Attracted Top Tier Talent Recruited 30 Venture Banking team members and expanded client coverage nationally Recruited Chief Credit Officer, Head of Treasury Management and Chief Marketing Officer from larger disrupted banks Acquired Loan Portfolio $631 million loan portfolio acquisition from FDIC at ~85% of book value Transaction increased Venture Banking client base by 4x Acquired Small Fraction of Dislocated Deposits 1.0 TRACK RECORD AND RECENT STRATEGIC MOVES 1. Total deposits excluding wholesale CDs and BMTX student-related deposits 2. Non-GAAP measure, refer to appendix for reconciliation Strategic Priority Transform Deposit Base Focus on Holistic Banking Relationships Recruit New Experienced Teams & Constantly Enhance Talent Remain Nimble Initiative Description 0.8% 99.2%

7 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Single point of contact, client-centric banking model Entrepreneurial culture High-performing, commercially-oriented with scale to meet clients’ needs Best-in-class service, technology and product capabilities Positive Momentum Continues in 2024 with Hiring of Experienced Banking Teams Situation Overview 10 business banking teams joined in April Deep client relationships in New York metro and selected markets in California and Nevada Teams had $10 billion+ in deposits, and thousands of clients, prior to the events of March 2023 Financial Impact High-quality deposits will be increasingly accretive to NIM Revenues expected to fully offset incremental non-interest expense within 12 months Significant EPS accretion expected in 2025 Strategic Rationale Enhances deposit transformation adding high-quality, low-cost, sticky deposits Remix higher-cost business unit deposits1,2 reducing overall cost of deposits Recruitment of experienced banking teams is a core competency • Corporate & Specialized Banking verticals built by recruiting experienced teams • 5 successful existing New York banking teams for 7+ years 1.0 TRACK RECORD AND RECENT STRATEGIC MOVES 1. Total deposits excluding wholesale CDs and BMTX student-related deposits 2. Non-GAAP measure, refer to appendix for reconciliation Why CUBI?

8 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Q1’24 (vs. Q4’23) Profitability Balance Sheet Credit 3.10% vs. 3.31% NIM $21.3B +0% Total Assets 0.17% +4 bps NPA Ratio $13.3B +0% Total Loans and Leases $35.7M +32% NPLs Financial Highlights - GAAP Highlights Q1’24 2.0 Q1’24 EARNINGS REVIEW $1.40 Diluted EPS $45.9 M Net Income ROCE ROAA 0.94% vs. 1.16% Total Deposits $18.0B +0% Reserves to NPLs 374% vs. 499%12.1%

9 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Q1’24 (vs. Q4’23) Profitability Balance Sheet Credit 3.10% vs. 3.31% NIM $21.3B +0% Total Assets 0.17% +4 bps NPA Ratio $13.3B +0% Total Loans and Leases $35.7M +32% NPLs Financial Highlights – Core/Adjusted 1. Excludes pre-tax FDIC special assessment expenses of $500k, loss on investment securities of $75k and derivative credit valuation adjustment loss of $222k 2. Excludes certain one-time pre-tax items of $11.3 million 3. Non-GAAP measure, refer to appendix for reconciliation Highlights Q1’24 2.0 Q1’24 EARNINGS REVIEW $1.68 Adjusted Core EPS1,2,3 $55.1 M Adjusted Core Earnings1,2,3 Adjusted Core ROCE1,2,3 14.5% $1.42 Core EPS1,3 $46.5 M Core Net Income1,3 Core ROCE1,3 12.2% Core ROAA1,3 0.95% Adjusted Core ROAA1,2,3 1.11% vs. 1.22% Total Deposits $18.0B +0% Reserves to NPLs 374% vs. 499% Core PTPP ROAA1,3 1.58% Adjusted Core PTPP ROAA1,2,3 1.79% vs. 1.90%

10 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Total Deposits $ billions Successfully Executing on Deposit Franchise Transformation • Four consecutive quarters with ~$1.0 billion of business unit deposit1,3 growth • $1.2 billion of business unit deposit1,3 growth paid down $1.2 billion in wholesale CDs • Strong QoQ commercial growth − Mortgage Finance (+41%) − Fund Finance (+33%) − New York Banking Teams (+9%) − Venture Banking (+5%) Average cost of deposits 1. Total deposits excluding wholesale CDs and BMTX student-related deposits 2. Uninsured deposits of $5.2 billion (estimate) to be reported on Customers Bank’s call report less $1.1 billion of collateralized deposits and $0.1 billion of affiliate deposits 3. Non-GAAP measure, refer to appendix for reconciliation 3.45% 3.0 STRENGH OF THE FRANCHISE 3.39% $3.5 $5.8 $8.4 Q1’23 $4.5 $5.6 $7.9 Q2’23 $4.8 $5.8 $7.6 Q3’23 $4.4 (25%) $5.6 $7.9 Q4’23 $4.7 (26%) $5.7 $7.6 Q1’24 $17.7 $18.0 $18.2 $17.9 $18.0 Non-Interest Bearing DDA Interest Bearing DDA Non-DDA $4.0 $1.2 $12.8 Deposit Composition $18.0 Uninsured Deposits Collateralized and Affiliate Deposits FDIC Insured Deposits 78%2

11 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Deposit Transformation Phase I: Wholesale Funding1 Remix Nearly Complete FHLB Advances $ billions Wholesale CDs $ billions $0.3 $0.9 $1.0 Q1’23 $0.3 $1.0 Q4’23 $0.3 $1.0 Q1’24 $2.1 $1.2 $1.2 -$0.9 -41% FHLB callable fixed FHLB callable floating FHLB non-callable fixed • Approximately $1.0 billion of wholesale CD maturities in Q2-Q4’24 − ~$500 million maturing in Q2’24 • Total deposit pipeline remains at $2.0+ billion despite significant business unit deposit2,3 growth 3.0 STRENGH OF THE FRANCHISE Q1’23 Q4’23 Q1’24 $5.3 $3.0 $1.8 -$3.5 -66% Business Unit Deposits2,3 $ billions Q1’23 Q4’23 Q1’24 $11.9 $14.9 $16.1 +$4.2 +36% 1. Wholesale CDs and FHLB advances 2. Total deposits excluding wholesale CDs and BMTX student-related deposits 3. Non-GAAP measure, refer to appendix for reconciliation 10%30% 17% % of total deposits 8%13% 8%Borrowings as % of total liabilities

12 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Annualized NII Benefit $ millions $1.5 billion $2.0 billion -150 bps Reduction in Rate of Remixed Deposits Pi pe lin e C on ve rs io n Deposit Transformation Phase II: Business Unit Deposit Remix Initiated 3.0 STRENGH OF THE FRANCHISE Total Deposits $ billions $4.7 $13.3 Q1’24 $18.0 ILLUSTRATIVE IMPACT OF DEPOSIT REMIX Non-Interest Bearing Deposits Interest Bearing Deposits $2.5 billion $22.5 $30.0 $37.5 $30.0 $40.0 $50.0 $37.5 $50.0 $62.5 -200 bps -250 bps 0.00% 4.66% 3.45% $2.0 Billion+ Pipeline Deposit Cost Q1’24, percent

13 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Strategic Portfolio Remix Complete with Specialized C&I Our Leading Growth Driver Loans - HFI $ billions $1.3 $6.2 $7.2 Q1’23 $1.0 $5.9 $7.0 Q2’23 $1.0 $5.8 $6.8 Q3’23 $0.9 $5.7 $6.3 Q4’23 $0.8 $5.6 $6.5 Q1’24 $14.7 $13.8 $13.6 $12.9 $12.9 1. Excludes PPP 6.70% 6.83% 7.87% 7.30% 7.05% Yield on Loans • Actionable loan pipeline to deploy robust liquidity at ~300 basis points additional spread led by our specialized banking verticals driving holistic relationships 3.0 STRENGH OF THE FRANCHISE • Total HFI loan1 growth of $60 million in Q1’24 • Commercial HFI loan1 growth of $142 million in Q1’24 Loans – HFI1 Growth QoQ $ millions $204 -$62 -$82 Corporate & Specialized Banking Community Banking1 Consumer Installment 3% -1% -9% Growth QoQ percent Corporate & Specialized Banking Community Banking Consumer Installment HFI

14 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Net Interest Income and Net Interest Margin Expected to Improve in 2024 Net Interest Income $ millions • Selective in pace of loan growth in Q1’24 prioritizing holistic relationships • NIM in Q1’24 impacted by − $1 billion exit of non-strategic interest earning assets late in Q4’23 − Replacement of predominantly non-interest bearing student serviced deposit balances − Retaining balance sheet capacity for new banking teams, resulting higher cash balances and lower average loans during the quarter 3.0 STRENGH OF THE FRANCHISE Net Interest Margin (%) 3.10% -$358 2.96% $4.0 $13.5 Q4’23 $3.8 $13.1 Q1’24 $17.5 $16.9 Gross Loans Investment Securities Average Balances $ billions -$236 QoQ $ millions 3.31% Q1’23 Q4’23 Q1’24 $314.9 $345.9 $331.8 -$14.2 Q1’23 Q4’23 Q1’24 $165.0 $173.4 $171.4 -$2.2 Q1’23 Q4’23 Q1’24 $149.9 $172.5 $160.4 Interest Income $ millions Interest Expense $ millions

15 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers Operates with Industry-Leading Efficiency $79 $89 $89 $89 $99 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Core Non-Interest Expense1 $ millions • Disciplined expense management resulting in flat core non-interest expense1 for the last four quarters when excluding one-time items in Q1’24 • Revenues from new banking teams expected to exceed expenses within one year Core Non-Interest Expense1 / Average Assets percent • CUBI’s core non-interest expense1 as percent of average assets is top quartile among regional bank peers2 3.02% C UB I 1.86% CUBI (Q1’24) Regional Bank Peers2 (MRQ) 1. Non-GAAP measure, refer to appendix for reconciliation 2. Selected 2024 proxy peers as disclosed in appendix 3.0 STRENGH OF THE FRANCHISE Top Quartile (1.94%) Median (2.06%)

16 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Liquidity Position with Greater than 220% Coverage of Uninsured Deposits Immediately Available Liquidity $ billions $3.8 $1.2 $3.4 Q4’23 $3.7 $1.1 $4.1 Q1’24 $8.5 $8.9 +$0.4 Cash FHLB Available Committed Capacity FRB Available Committed Capacity 1. Uninsured deposits of $5.2 billion (estimate) to be reported on Customers Bank’s call report less $1.1 billion of collateralized deposits and $0.1 billion of affiliate deposits 2. Selected 2024 proxy peers as disclosed in appendix 4.0 STRONG CAPITAL AND LIQUIDITY • CUBI’s ratio of immediately available liquidity to uninsured deposits1 estimated to be approximately 224% • Total overall liquidity of ~$11 billion as of Q1’24 Loans-HFI to Deposits Q1’24, percent CUBI Peer Median2 72% 91% Borrowings as % of Total Liabilities Q1’24, percent CUBI Peer Median2 8% 7%

17 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Tangible Book Value1 per share Tangible Book Value Per Share has More Than Doubled Over the Last Five Years 1. Non-GAAP measure, refer to appendix for reconciliation 2. CAGR from Q4’18 to Q1’24 inclusive of impact of AOCI mark-to-market 3. Selected 2024 proxy peers as disclosed in appendix AOCI $23.32 $26.17 $27.92 $37.21 $38.97 $47.61 Q4’18 Q4’19 Q4’20 Q4’21 Q4’22 Q4’23 Q1’24 $49.18 4.0 STRONG CAPITAL AND LIQUIDITY $4.20 $53.38 15%2 • 5-year+ CAGR in TBV1 has been 15%2 despite AOCI headwinds compared to 4% for regional bank peers3 • AOCI recovery of $4.3 million or $0.14 per share in Q1’24 • Organic growth strategy has enabled us to grow clients, revenue, earnings and TBVPS1 without dilutive M&A

18 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. ` 12.3% 13.2% 14.3% 15.3% 15.6% Total Risk-Based Capital percent 5.9% 6.0% 7.3% 6.5% 7.0% 7.8% +25 bps +140 bps TCE/TA2,3 percent 1. Capital ratios are estimated pending final regulatory report 2. TCE/TA negatively impacted by 62 bps in Q1’24 due to AOCI 3. Non-GAAP measure, refer to appendix for reconciliation Robust Capital Levels Provides Customers With Significant Flexibility AOCI 9.6% 10.3% 11.3% 12.2% 12.5% CET1 Risk-Based Capital percent 4.0 STRONG CAPITAL AND LIQUIDITY • Strong opportunity to deploy risk-based capital into loans • Top quartile CET1 adjusted for AOCI – 11.5% • TCE/TA3 increased approximately 25 bps QoQ and 140 bps YoY • On track to achieve ~7.5% TCE/TA3 target Q1’23 Q2’23 Q3’23 Q4’23 Q1’241

19 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial NCOs percent 0.15% 0.13% 0.14% 0.13% 0.17% NPAs as Percent of Total Assets percent Credit Metrics Remains Benign 0.12% 0.16% 0.17% 0.14%0.06%1 2.61% 2.46% 2.96% 2.81% 3.26% 0.49% 0.50% 0.51% 0.55%0.42%1 Consumer NCOs percent Total NCOs percent 5.0 MAINTAINING SUPERIOR CREDIT QUALITY • Commercial NCOs declined by 18% QoQ • Office CRE represents only ~1% of HFI loan portfolio • $619 million of multifamily loans to properties of 50%+ rent regulated in NYC − Less than $55 million mature or rate reset before 2026 • Consumer installment HFI down to ~6% of HFI loan portfolio Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 1. Excludes $6.2 million charge-offs against $8.7 million ACL on PCD loans upon FDIC loan pool acquisition

20 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. 2024 Management Outlook Metrics 1.15% – 1.25%ROAA Prior Outlook – FY 2024 Efficiency Ratio Net Interest Margin Mid – 40s 3.20% – 3.40% 10% – 15% business unit deposit1,3 growth; low single-digit total deposit growth Deposit Growth Loan Growth PPNR Growth2 10% – 15% driven by redeploying excess liquidity (cash and securities) into loans 10% – 15% ~11.5%CET1 ~7.5%TCE / TA3 Tax Rate 22% – 24% 6.0 MANAGEMENT OUTLOOK 1. Total deposits excluding wholesale CDs and BMTX student-related deposits 2. 2023 baseline adjusted PPNR of $367.0 million (adjusted for $11.4 million of PPP net interest income in FY’23 and $27.0 million of outsized discount accretion related to acquired loan portfolio from the FDIC transaction in Q3’23) 3. Non-GAAP measure, refer to appendix for reconciliation Current Outlook By Q4’24 ~50% by Q4’24 High-end of range by Q4’24 By Q4’24 annualized

21 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Let’s take on tomorrow. Concluding Perspectives Fourth consecutive quarter of ~$1.0 billion of business unit deposit1,2 growth with significant reduction in wholesale funding over the last four quarters Robust deposit pipeline remains at $2.0+ billion NIM Expansion Strategic Outlook Strengthening Capital Base Strong capital levels with 7.3% TCE/TA2 and 12.5% CET13 Remain on track to achieve stated TCE/TA2 target of 7.5% Client-centric culture continues to drive franchise value Deposit remix has significant runway with meaningful financial benefits Poised to deploy securities and cash into higher yielding loans Operating platform designed to generate positive operating leverage and drive superior profitability Strong loan pipeline for execution Net interest margin expected to increase in Q2-Q4 from current levels Improving Deposit Franchise Maintaining Strong Risk Management Robust liquidity position with coverage of over 220% of uninsured deposits4 Diversified loan and deposit franchises built to perform across all macroeconomic environments; credit continues to perform well 1. Total deposits excluding wholesale CDs and BMTX student-related deposits 2. Non-GAAP measure, refer to appendix for reconciliation 3. Capital ratios are estimated pending final regulatory report 4. Uninsured deposits of $5.2 billion (estimate) to be reported on Customers Bank’s call report less $1.1 billion of collateralized deposits and $0.1 billion of affiliate deposits New banking teams well-positioned to take market share Opportunity to replace higher-cost deposits with more granular, stable and lower-cost deposits Highly experienced banking teams with deep client relationships and the platform to deliver exceptional client service Business and Commercial Banking Teams

ANALYST COVERAGE D.A. Davidson Companies Peter Winter Hovde Group David Bishop Jefferies Group LLC Casey Haire Keefe, Bruyette & Woods Inc. Kelly Motta Maxim Group Inc. Michael Diana Piper Sandler Companies Frank Schiraldi Stephens Inc. Matt Breese Wedbush Securities Inc. David Chiaverini Raymond James Steve Moss B.Riley Securities, Inc. Hal Goetsch 2024 New Analyst

APPENDIX

24 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers Bancorp, Inc. NYSE: CUBI Headquarters West Reading, PA Offices1 55 FTE Employees 732 Market Capitalization As of April 19, 2024 $1.5B Total Assets $21.3B Tangible Book Value2 $49.18 Share price As of April 19, 2024 $48.22 Data as of March 31, 2024, unless otherwise noted (1) Offices includes branches, executive offices, Private Banking Offices and Loan Production Offices (2) Non-GAAP measure, refer to appendix for reconciliation A Forward-Thinking Bank with Strong Risk Management Customers Bancorp Overview Community Banking Corporate & Specialized Banking Corporate & Specialized Banking Community Banking Digital Banking Deep relationship-based community banking predominantly in the Northeast with selected presence in the Carolinas, Florida and Texas Serving small and medium-sized businesses, and individuals, with a comprehensive suite of loan and deposit products National corporate businesses where Customers has differentiated capabilities, often enhanced through technology, to create value for clients Serving sophisticated corporate businesses above the complexity level of most community banks but with a higher level of service and attention than large regionals provide Consumer Suite of loan and deposit products delivered digitally to clients; increasingly generating fee and “fee- like” revenue with limited credit risk through our HFS strategy Commercial Transaction banking (treasury and payment services) with associated deposits D es cr ip tio n Regional C&I, owner-occupied CRE, SBA, multifamily, non-owner-occupied CRE, mortgage Operating deposit accounts (commercial and consumer) Lender finance, capital call lines, venture banking, mortgage finance, equipment finance, healthcare, real estate specialty finance Operating deposit accounts Consumer installment lending Payments Online savings Pr od uc ts Providence Dallas Raleigh/Durham Chicago Washington, D.C. Southern California Bay Area Denver NYC Boston Orlando PA Portsmouth Austin

25 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial Real Estate Exposure Lower than Peers CRE % of Loans-HFI percent 16% 6% 9% 1% CUBI1 8% 30% Peers2 27% 45% Construction Commercial Real Estate Multifamily 1. As of Q1’24; Excludes owner occupied CRE; 33% total CRE including owner occupied CRE 2. As of Q4’23; Selected 2024 proxy peers as disclosed in appendix 3. Includes owner occupied CRE 4. LTV is based on value at the most recent available appraisal 54% 27% 10%8% C&I3 Total CRE1 ConsumerMortgage Finance % of Loans-HFI Q1’24, percent Multifamily ($2.1 billion) Office CRE ($159 million) Average Size LTV4 DSCR $3.2 million 52.2% 1.70x Average Size LTV4 DSCR $6.4 million 64.1% 1.51x

26 Let’s take on tomorrow. © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Disciplined Underwriting Has Resulted in Healthy Credit Metrics Within Our Multifamily Portfolio Total Multifamily1 50%+ NYC RR Multifamily1 Maturity/Rate Reset $ millions 2024 2025 2026 2027+ $70 $141 $83 $1,847 Maturity/Rate Reset $ millions 2024 2025 2026 2027+ $27 $28 $42 $523 1. As of Q1’24 2. LTV is based on value at the most recent available appraisal Total Balance $619 million Average Size $7.7 million LTV2 65.1% DSCR 1.44x Interest Only 4.9% of portfolio 90% of portfolio maturing in 2026+ 4%3% 7%% 86% 7%4% 5% 84%% Total Balance $2.1 billion Average Size $6.4 million LTV2 64.1% DSCR 1.51x Interest Only 8.9% of portfolio • Limited near-term maturities/rate resets through 2026 • Strong LTV and DSCR metrics with limited interest only exposure • Debt Service Coverage Ratios conservatively calculated including amortization, even during I/O period 91% of portfolio maturing in 2026+

27 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. 17% 49% 33% 1% FICO Score1 660-679 680-699 700-749 750+ 22% 33% 23% 12% 5% 4% 0-9.99% 10 – 19.99% 20 – 29.99% 30 – 39.99% 40 – 49.99% > 50% Unknown Geography Profession Debt to Income Ratio1 Borrower Income 16% 42% 42% <$50K $50K -$100K >$100K 21% 11% 20% 26% 22% West Southwest Midwest Southeast Northeast Consumer Installment Loans – Portfolio Credit Metrics Purpose 68% 9% 6% 17% Personal Loan Specialty Home Improvement Student Loan 95% 3% 2% Non COVID-19 Impacted Segments Non-Professional Retail & Restaurants Average FICO Score1 ~737 Average DTI1 ~20% Average Borrower Income ~$107k Weighted average life of ~2.2 years Note: Data as of March 31, 2024; includes consumer installment HFS loans 1. DTI and FICO scores as of time of origination

28 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Investment Securities – AFS percent, Q1’24 Securities Portfolio Generating Attractive Returns with Minimal Credit and Duration Risk • Spot yield: 5.33% • Effective duration: 1.7 years • Floating rate securities: 40% • Credit rating: 62% AAA with only 2% at BB and below 51% 25% 23% 1% MBS & CMO ABS Corporate Other Total: $2.6 billion Investment Securities – HTM percent, Q1’24 • Spot yield: 4.26% • Effective duration: 3.0 years • Floating rate securities: 25% • Credit rating: 41% AAA with no rated securities non- investment grade • ABS: $0.5 billion of credit enhanced asset backed securities from sale of consumer installment loan portfolio in Q3’22 and Q2’23 49%51% Credit Enhanced ABS MBS & CMO Total: $1.0 billion

29 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Selected 2024 Proxy Peers • Atlantic Union • BankUnited • Commerce • Community Bank System • FB Financial • First Busey • F.N.B. • Fulton • Independent • Northwest • Old National • Pinnacle • Provident • Sandy Spring Note: Excludes the following banks due to lack of available disclosure – Ameris, Associated, Axos, Eastern, First Financial (OH), First Merchants, Silvergate (removed following its March 8, 2023 announcement that it would wind down operations and liquidate the bank), TowneBank, United, United Community, WesBanco, WSFS

30 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Sources of Liquidity 1. Includes CLOs Liquidity Sources ($000's) 1Q 24 1Q 23 YOY Change Cash and Cash Equivalents $3,701,120 $2,046,685 $1,654,435 FHLB Available Borrowing Capacity $1,119,296 $860,578 $258,718 FRB Available Borrowing Capacity $4,082,885 $6,516,922 ($2,434,037) Investments (MV AFS + HTM) US Gov't & Agency Debt $0 $0 $0 Agency & Non-Agency MBS & CMO $1,840,287 $1,858,846 ($18,559) Municipals $0 $0 $0 Corporates $610,470 $586,795 $23,675 ABS (1) $1,152,419 $1,324,912 ($172,493) Other AFS $33,729 $26,710 $7,019 Less: Pledged Securities HTM & AFS ($1,714,379) ($2,019,311) $304,933 Net Unpledged Securities $1,922,526 $1,777,952 $144,575 Total $10,825,827 $11,202,137 ($376,310)

31 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. 1. Excludes mortgage finance reported at fair value, loans held for sale and PPP loans 2. Utilized Moody’s March 2024 baseline and adverse forecast scenario with qualitative adjustments for Q1’24 provision 3. Utilized Moody’s December 2023 baseline and adverse forecast scenario with qualitative adjustments for Q4’23 provision 4. Non-GAAP measure, refer to appendix for reconciliation Allowance for Credit Losses for Loans and Leases ($ in thousands) March 31, 2024 December 31, 2023 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate2 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate3 Loans and Leases Receivable: Commercial: Commercial and Industrial, including Specialty Lending $ 6,274,501 $ 23,003 0.37 % $ 6,326,458 $ 23,503 0.38 % Multifamily 2,123,675 18,307 0.86 % 2,138,622 16,343 0.76 % Commercial Real Estate Owner Occupied 806,278 10,201 1.27 % 797,319 9,882 1.24 % Commercial Real Estate Non-Owner Occupied 1,182,084 18,320 1.55 % 1,177,650 16,859 1.43 % Construction 185,601 1,866 1.01 % 166,393 1,482 0.89 % Total Commercial Loans and Leases Receivable $ 10,572,139 $ 71,697 0.68 % $ 10,491,089 $ 68,069 0.65 % Consumer: Residential Real Estate $ 482,537 $ 6,707 1.39 % $ 484,435 $ 6,586 1.36 % Manufacturing Housing 37,382 4,160 11.13 % 38,670 4,239 10.96 % Installment 792,606 50,732 6.40 % 874,926 56,417 6.45 % Total Consumer Loans Receivable $ 1,312,525 $ 61,599 4.69 % $ 1,398,031 $ 67,242 4.81 % Total Loans and Leases Receivable $ 11,884,664 $ 133,296 1.12 %4 $ 11,889,120 $ 135,311 1.14 %4

32 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers believes 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 Customers' 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. The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document. Reconciliation of Non-GAAP Measures - Unaudited

33 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core earnings and Adjusted core earnings- Customers Bancorp ($ in thousands except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Total Per share Total Per share Total Per share Total Per share Total Per share GAAP net income to common shareholders $ 45,926 $ 1.40 $ 58,223 $ 1.79 $ 82,953 $ 2.58 $ 44,007 $ 1.39 $ 50,265 $ 1.55 Reconciling items (after tax): Severance expense — — 473 0.01 — — 141 0.00 637 0.02 Impairments on fixed assets and leases — — — — — — 12 0.00 86 0.00 Loss on sale of capital call lines of credit — — — — — — 3,914 0.12 — — (Gains) losses on investment securities 57 — (85) (0.00) 492 0.02 49 0.00 (49) (0.00) Derivative credit valuation adjustment 169 0.01 267 0.01 (151) (0.00) (101) (0.00) 204 0.01 Tax on surrender of bank-owned life insurance policies — — — — — — 4,141 0.13 — — FDIC special assessment 380 0.01 2,755 0.08 — — — — — — Core earnings $ 46,532 $ 1.42 $ 61,633 $ 1.90 $ 83,294 $ 2.59 $ 52,163 $ 1.65 $ 51,143 $ 1.58 Deposit servicing fees prior to 2024 5,405 0.16 FDIC premiums prior to 2024 3,200 0.10 Core earnings adjusted for one-time non-interest expense items $ 55,137 $ 1.68

34 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core return on average assets and Adjusted core return on average assets - Customers Bancorp ($ in thousands except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 GAAP net income $ 49,726 $ 62,092 $ 86,756 $ 47,574 $ 53,721 Reconciling items (after tax): Severance expense — 473 — 141 637 Impairments on fixed assets and leases — — — 12 86 Loss on sale of capital call lines of credit — — — 3,914 — (Gains) losses on investment securities 57 (85) 492 49 (49) Derivative credit valuation adjustment 169 267 (151) (101) 204 Tax on surrender of bank-owned life insurance policies — — — 4,141 — FDIC special assessment 380 2,755 — — — Core net income $ 50,332 $ 65,502 $ 87,097 $ 55,730 $ 54,599 Deposit servicing fees prior to 2024 5,405 FDIC premiums prior to 2024 3,200 Core net income adjusted for one-time non-interest expense items $ 58,937 Average total assets $ 21,335,229 $ 21,252,273 $ 21,978,010 $ 21,654,735 $ 21,052,920 Core return on average assets 0.95 % 1.22 % 1.57 % 1.03 % 1.05 % Core return on average assets adjusted for one-time non-interest expense items 1.11 %

35 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core return on average common equity and Adjusted core return on average common equity – Customers Bancorp ($ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 GAAP net income to common shareholders $ 45,926 $ 58,223 $ 82,953 $ 44,007 $ 50,265 Reconciling items (after tax): Severance expense — 473 — 141 637 Impairments on fixed assets and leases — — — 12 86 Loss on sale of capital call lines of credit — — — 3,914 — (Gains) losses on investment securities 57 (85) 492 49 (49) Derivative credit valuation adjustment 169 267 (151) (101) 204 Tax on surrender of bank-owned life insurance policies — — — 4,141 — FDIC special assessment 380 2,755 — — — Core earnings $ 46,532 $ 61,633 $ 83,294 $ 52,163 $ 51,143 Deposit servicing fees prior to 2024 5,405 FDIC premiums prior to 2024 3,200 Core net income adjusted for one-time non-interest expense items $ 55,137 Average total common shareholders' equity $ 1,529,211 $ 1,449,728 $ 1,373,244 $ 1,335,408 $ 1,273,780 Core return on average common equity 12.24 % 16.87 % 24.06 % 15.67 % 16.28 % Core return on average common equity adjusted for one-time non-interest expense items 14.50 %

36 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core pre-tax pre-provision net income and ROAA; Adjusted core pre-provision net income and ROAA - Customers Bancorp ($ in thousands, except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 GAAP net income $ 49,726 $ 62,092 $ 86,756 $ 47,574 $ 53,721 Reconciling items: Income tax expense 15,651 21,796 23,470 20,768 14,563 Provision (benefit) for credit losses 17,070 13,523 17,856 23,629 19,603 Provision (benefit) for credit losses on unfunded commitments 430 (136) 48 (304) 280 Severance expense — 639 — 182 809 Impairments on fixed assets and leases — — — 15 109 Loss on sale of capital call lines of credit — — — 5,037 — (Gains) losses on investment securities 75 (114) 626 62 (62) Derivative credit valuation adjustment 222 361 (192) (130) 259 FDIC special assessment 500 3,723 — — — Core pre-tax pre-provision net income $ 83,674 $ 101,884 $ 128,564 $ 96,833 $ 89,282 Deposit servicing fees prior to 2024 7,106 FDIC premiums prior to 2024 4,208 Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items) $ 94,988 Average total assets $ 21,335,229 $ 21,252,273 $ 21,978,010 $ 21,654,735 $ 21,052,920 Core pre-tax pre-provision ROAA 1.58 % 1.90 % 2.32 % 1.79 % 1.72 % Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items) 1.79 %

37 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core efficiency ratio: Adjusted core efficiency ratio - Customers Bancorp ($ in thousands, except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 GAAP net interest income $ 160,385 $ 172,506 $ 199,773 $ 165,271 $ 149,899 GAAP non-interest income $ 21,231 $ 18,672 $ 17,775 $ 15,997 $ 18,121 Loss on sale of capital call lines of credit — — — 5,037 — (Gains) losses on investment securities 75 (114) 626 62 (62) Derivative credit valuation adjustment 222 361 (192) (130) 259 Core non-interest income 21,528 18,919 18,209 20,966 18,318 Core revenue $ 181,913 $ 191,425 $ 217,982 $ 186,237 $ 168,217 GAAP non-interest expense $ 99,169 $ 93,767 $ 89,466 $ 89,297 $ 80,133 Severance expense — (639) — (182) (809) Impairments on fixed assets and leases — — — (15) (109) FDIC special assessment (500) (3,723) — — — Core non-interest expense $ 98,669 $ 89,405 $ 89,466 $ 89,100 $ 79,215 Deposit servicing fees prior to 2024 (7,106) FDIC premiums prior to 2024 (4,208) Adjusted core non-interest expense $ 87,355 Core efficiency ratio (1,2) 54.24 % 46.70 % 41.04 % 47.84 % 47.09 % Adjusted core efficiency ratio (adjusted for one- time non-interest expense items) (2) 48.02 % 1. Core non-interest expense for 2020 and prior years include BMTX non-interest expenses 2. Core efficiency ratio calculated as non-interest expense divided by core revenue

38 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core non-interest expense to average assets; Adjusted core non-interest expense to average assets - Customers Bancorp ($ in thousands except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 GAAP non-interest expense $ 99,169 $ 93,767 $ 89,466 $ 89,297 $ 80,133 Severance expense — (639) — (182) (809) Impairments on fixed assets and leases — — — (15) (109) FDIC special assessment (500) (3,723) — — — Core non-interest expense $ 98,669 $ 89,405 $ 89,466 $ 89,100 $ 79,215 Deposit servicing fees prior to 2024 (7,106) FDIC premiums prior to 2024 (4,208) Adjusted core non-interest expense $ 87,355 Average total assets $ 21,335,229 $ 21,252,273 $ 21,978,010 $ 21,654,735 $ 21,052,920 Core non-interest expense to average assets 1.86 % 1.67 % 1.62 % 1.65 % 1.53 % Adjusted core non-interest expense to average assets (adjusted for one-time non-interest expense items) 1.65 %

39 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible common equity to tangible assets - Customers Bancorp ($ in thousands except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 GAAP total shareholders' equity $ 1,691,617 $ 1,638,394 $ 1,561,607 $ 1,456,652 $ 1,421,020 Reconciling items: Preferred stock (137,794) (137,794) (137,794) (137,794) (137,794) Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629) Tangible common equity $ 1,550,194 $ 1,496,971 $ 1,420,184 $ 1,315,229 $ 1,279,597 GAAP Total assets $ 21,347,367 $ 21,316,265 $ 21,857,152 $ 22,028,565 $ 21,751,614 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,629) (3,629) (3,629) Tangible assets $ 21,343,738 $ 21,312,636 $ 21,853,523 $ 22,024,936 $ 21,747,985 Tangible common equity to tangible assets 7.3 % 7.0 % 6.5 % 6.0 % 5.9 %

40 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible book value per common share - Customers Bancorp ($ in thousands except per share data) Q1 2024 Q4 2023 Q4 2022 Q4 2021 Q4 2020 Q4 2019 Q4 2018 GAAP total shareholders' equity $ 1,691,617 $ 1,638,394 $ 1,402,961 $ 1,366,217 $ 1,117,086 $ 1,052,795 $ 956,816 Reconciling Items: Preferred stock (137,794) (137,794) (137,794) (137,794) (217,471) (217,471) (217,471) Goodwill and other intangibles (3,629) (3,629) (3,629) (3,736) (14,298) (15,195) (16,499) Tangible common equity $ 1,550,194 $ 1,496,971 $ 1,261,538 $ 1,224,687 $ 885,317 $ 820,129 $ 722,846 Common shares outstanding 31,521,931 31,440,906 32,373,697 32,913,267 31,705,088 31,336,791 31,003,028 Tangible book value per common share $ 49.18 $ 47.61 $ 38.97 $ 37.21 $ 27.92 $ 26.17 $ 23.32

41 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Business Unit Deposits (formerly, Core Deposits, Total Deposits, excluding Wholesale CDs and BMTX student deposits) - Customers Bancorp ($ in thousands) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Total deposits $ 17,961,383 $ 17,920,236 $ 18,195,364 $ 17,950,431 $ 17,723,617 Reconciling items: Wholesale CDs 1,809,383 2,970,615 3,713,933 4,651,054 5,311,083 BMTX student deposits 850 1,157 636,951 407,118 506,922 Business Unit Deposits (formerly, Core Deposits, Total deposits, excluding wholesale CDs and BMTX student deposits) $ 16,150,960 $ 14,948,464 $ 13,844,480 $ 12,892,259 $ 11,905,612

42 © 2024 C USTO M ERS BAN C O RP, IN C . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Coverage of credit loss reserves for loans and leases HFI, excluding PPP - Customers Bancorp ($ in thousands except per share data) Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Loans and leases receivable $ 11,936,621 $ 11,963,855 $ 12,600,548 $ 12,826,531 $ 13,391,610 Loans receivable, PPP (51,957) (74,735) (137,063) (188,763) (246,258) Loans and leases held for investment, excluding PPP $ 11,884,664 $ 11,889,120 $ 12,463,485 $ 12,637,768 $ 13,145,352 Allowance for credit losses on loans and leases $ 133,296 $ 135,311 $ 139,213 $ 139,656 $ 130,281 Coverage of credit loss reserves for loans and leases held for investment, excluding PPP 1.12 % 1.14 % 1.12 % 1.11 % 0.99 %