Customers Bancorp Reports Results for First Quarter 2025

WEST READING, Pa., April 24, 2025--(BUSINESS WIRE)--Customers Bancorp, Inc. (NYSE:CUBI):

First Quarter 2025 Highlights

Q1 2025 net income available to common shareholders was $9.5 million, or $0.29 per diluted share; ROAA was 0.23% and ROCE was 2.23%. Q1 2025 core earnings*1 were $50.0 million, or $1.54 per diluted share; Core ROAA* was 0.97% and Core ROCE* was 11.72%. Q1 2025 net income available to common shareholders included $39.9 million of post-tax losses in connection with a securities portfolio repositioning to improve structural liquidity, enhance credit profile, reduce asset sensitivity and benefit margin. Total loans and leases held for investment grew by $611.7 million, or 4.2%, in Q1 2025 from Q4 2024. Total deposits increased by $86.5 million or 0.5% in Q1 2025 from Q4 2024. Non-interest bearing demand deposits decreased $55.7 million or 1.0% in Q1 2025 from Q4 2024; non-interest bearing deposits represented 29.3% of total deposits at March 31, 2025. Q1 2025 average cost of deposits was 2.82% compared to Q4 2024 of 3.07%, a decrease of 25 basis points. Q1 2025 net interest margin, tax equivalent ("NIM") was 3.13%, compared to Q4 2024 NIM of 3.11%, an increase of 2 basis points primarily due to lower deposit costs. Ratio of non-performing assets to total assets was 0.26% at March 31, 2025 compared to 0.25% at December 31, 2024. Q1 2025 provision for credit losses was $28.3 million compared to $21.2 million in Q4 2024 The allowance for credit losses on loans and leases equaled 324% of non-performing loans at March 31, 2025, compared to 316% at December 31, 2024. CET 1 ratio of 11.7%2 at March 31, 2025, compared to 12.1% at December 31, 2024. TCE / TA ratio* of 7.7% at March 31, 2025, compared to 7.6% at December 31, 2024. Q1 2025 book value per share and tangible book value per share* both grew by approximately $0.66, or 1.2% over Q4 2024, or 4.9% annualized, with a tangible book value per share* of $54.74 at March 31, 2025. This was driven by current quarter earnings and a decrease in AOCI losses of $28.9 million.

* 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 Excludes pre-tax impairment loss on investment securities of $51.3 million, unrealized losses on loans held for sale of $0.7 million, derivative credit valuation adjustment of $0.3 million and gains on investment securities of $0.2 million. 2 Regulatory capital ratios as of March 31, 2025 are estimates.

CEO Commentary

"We are pleased to share our first quarter results that highlight the company’s continuing incredible deposit transformation and underscore our success in growing franchise value. Though there is currently a high degree of economic uncertainty and volatility in the macro environment, we believe that Customers’ differentiated business model positions us well to navigate these challenges while we remain flexible and responsive to changes in the external environment. And importantly, with our customer-centric mindset and commitment to service provided by our extraordinary colleagues, we are here to serve our clients as the business environment continues to evolve," said Customers Bancorp Chairman and CEO Jay Sidhu.

Story Continues

"In the first quarter, we once again demonstrated the power of our deposit remix efforts. The impact can be seen in a 24 basis points lower average cost of interest bearing deposits in Q1 2025 compared to last quarter as we continue to improve the quality of our deposit franchise. Non-interest bearing deposits remained at a healthy level of 29.3% of total deposits. As a result of these efforts we had a 25 basis point reduction in our total cost of deposits during the quarter.

"Our deposit pipelines continue to expand with a significant conversion ratio. In addition, deposit focused teams we have recruited since March 2023 managed $2.1 billion or 11% of total deposits. Enhanced by their efforts, we’ve increased commercial deposit accounts by 53% since year end 2022, adding granular and sticky relationships while significantly lowering our cost of deposits, increasing our non-interest bearing deposits, and driving franchise value. We believe the company is 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 2025 GAAP earnings were $9.5 million, or $0.29 per diluted share, and core earnings* were $50.0 million, or $1.54 per diluted share. First quarter GAAP results include an impact in connection with a balance sheet optimization through a securities portfolio repositioning that the Bank decided to undertake as of March 31, 2025 designed to enhance structural liquidity, extend duration and benefit margin while reducing the credit sensitive portion of the portfolio given the volatile and uncertain macroeconomic environment. Even with the impact of the balance sheet optimization transaction and balance sheet growth we experienced during the quarter, our TCE / TA ratio* increased by 9 basis points. We maintain a strong liquidity position, with $8.7 billion of liquidity immediately available, which covers approximately 155% of uninsured deposits1 and our loan to deposit ratio was 80%, at March 31, 2025. We continue to focus on loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $611.7 million driven by strong commercial loan growth of $460.3 million led by growth in our existing specialized lending verticals. Asset quality remains strong with our NPA ratio at just 0.26% of total assets and reserve levels are robust at 324% of total non-performing loans at the end of Q1 2025. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. Tangible Book Value per share* grew to $54.74. We believe that our unique strategy and the investments we have and are making, along with the exceptional talent in our organization, will position us for success in 2025 and beyond," Jay Sidhu continued.

* 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 Uninsured deposits (estimate) of $7.3 billion to be reported on the Bank’s call report, less deposits of $1.5 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $198.9 million.

Financial Highlights

(Dollars in thousands, except per share data)  At or Three Months Ended  Increase (Decrease) March 31,
2025  December 31,
2024  Profitability Metrics:  Net income available for common shareholders  $ 9,523   $ 23,266   $ (13,743 )  (59.1 )% Diluted earnings per share  $ 0.29   $ 0.71   $ (0.42 )  (59.2 )% Core earnings*  $ 50,002   $ 44,168   $ 5,834   13.2 % Adjusted core earnings*  $ 50,002   $ 44,168   $ 5,834   13.2 % Core earnings per share*  $ 1.54   $ 1.36   $ 0.18   13.2 % Adjusted core earnings per share*  $ 1.54   $ 1.36   $ 0.18   13.2 % Return on average assets ("ROAA")   0.23 %   0.48 %   (0.25 )  Core ROAA*   0.97 %   0.86 %   0.11  Adjusted core ROAA*   0.97 %   0.86 %   0.11  Return on average common equity ("ROCE")   2.23 %   5.50 %   (3.27 )  Core ROCE*   11.72 %   10.44 %   1.28  Adjusted core ROCE*   11.72 %   10.44 %   1.28  Net interest margin, tax equivalent   3.13 %   3.11 %   0.02  Yield on loans (Loan yield)   6.57 %   6.78 %   (0.21 )  Cost of deposits   2.82 %   3.07 %   (0.25 )  Efficiency ratio   52.94 %   56.86 %   (3.92 )  Core efficiency ratio*   52.69 %   56.12 %   (3.43 )  Adjusted core efficiency ratio*   52.69 %   56.12 %   (3.43 )  Balance Sheet Trends:  Total assets  $ 22,423,044   $ 22,308,241   $ 114,803   0.5 % Total cash and investment securities  $ 6,424,406   $ 6,797,562   $ (373,156 )  (5.5 )% Total loans and leases  $ 15,097,968   $ 14,653,556   $ 444,412   3.0 % Non-interest bearing demand deposits  $ 5,552,605   $ 5,608,288   $ (55,683 )  (1.0 )% Total deposits  $ 18,932,925   $ 18,846,461   $ 86,464   0.5 % Capital Metrics:  Common Equity to Total Assets   7.7 %   7.6 %   0.1  Tangible Common Equity to Tangible Assets*   7.7 %   7.6 %   0.1  Book Value per common share  $ 54.85   $ 54.20   $ 0.65   1.2 % Tangible Book Value per common share*  $ 54.74   $ 54.08   $ 0.66   1.2 % Common equity Tier 1 capital ratio (1)   11.7 %   12.1 %   (0.4 )  Total risk based capital ratio (1)   14.6 %   14.9 %   (0.3 )   (1) Regulatory capital ratios as of March 31, 2025 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,
2025  March 31,
2024  Profitability Metrics:  Net income available for common shareholders  $ 9,523   $ 45,926   $ (36,403 )  (79.3 )% Diluted earnings per share  $ 0.29   $ 1.40   $ (1.11 )  (79.3 )% Core earnings*  $ 50,002   $ 46,532   $ 3,470   7.5 % Adjusted core earnings*  $ 50,002   $ 55,137   $ (5,135 )  (9.3 )% Core earnings per share*  $ 1.54   $ 1.42   $ 0.12   8.5 % Adjusted core earnings per share*  $ 1.54   $ 1.68   $ (0.14 )  (8.3 )% Return on average assets ("ROAA")   0.23 %   0.94 %   (0.71 )  Core ROAA*   0.97 %   0.95 %   0.02  Adjusted core ROAA*   0.97 %   1.11 %   (0.14 )  Return on average common equity ("ROCE")   2.23 %   12.08 %   (9.85 )  Core ROCE*   11.72 %   12.24 %   (0.52 )  Adjusted core ROCE*   11.72 %   14.50 %   (2.78 )  Net interest margin, tax equivalent   3.13 %   3.10 %   0.03  Yield on loans (Loan yield)   6.57 %   7.05 %   (0.48 )  Cost of deposits   2.82 %   3.45 %   (0.63 )  Efficiency ratio   52.94 %   54.58 %   (1.64 )  Core efficiency ratio*   52.69 %   54.24 %   (1.55 )  Adjusted core efficiency ratio*   52.69 %   48.02 %   4.67  Balance Sheet Trends:  Total assets  $ 22,423,044   $ 21,347,367   $ 1,075,677   5.0 % Total cash and investment securities  $ 6,424,406   $ 7,338,025   $ (913,619 )  (12.5 )% Total loans and leases  $ 15,097,968   $ 13,256,871   $ 1,841,097   13.9 % Non-interest bearing demand deposits  $ 5,552,605   $ 4,688,880   $ 863,725   18.4 % Total deposits  $ 18,932,925   $ 17,961,383   $ 971,542   5.4 % Capital Metrics:  Common Equity to Total Assets   7.7 %   7.3 %   0.4  Tangible Common Equity to Tangible Assets*   7.7 %   7.3 %   0.4  Book Value per common share  $ 54.85   $ 49.29   $ 5.56   11.3 % Tangible Book Value per common share*  $ 54.74   $ 49.18   $ 5.56   11.3 % Common equity Tier 1 capital ratio (1)   11.7 %   12.6 %   (0.9 )  Total risk based capital ratio (1)   14.6 %   15.9 %   (1.3 )   (1) Regulatory capital ratios as of March 31, 2025 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,
2025  % of
Total  December 31,
2024  % of
Total  March 31,
2024  % of
Total Loans and Leases Held for Investment  Commercial:  Commercial & industrial:  Specialized lending $ 6,070,093  40.3 %  $ 5,842,420  40.4 %  $ 5,104,405  39.6 % Other commercial & industrial  1,062,933  7.0    1,062,631  7.4    1,113,517  8.6  Mortgage finance  1,477,896  9.8    1,440,847  10.0    1,071,146  8.3  Multifamily  2,322,123  15.4    2,252,246  15.6    2,123,675  16.5  Commercial real estate owner occupied  1,139,126  7.6    1,100,944  7.6    806,278  6.3  Commercial real estate non-owner occupied  1,438,906  9.6    1,359,130  9.4    1,182,084  9.2  Construction  154,647  1.0    147,209  1.0    185,601  1.3  Total commercial loans and leases  13,665,724  90.7    13,205,427  91.4    11,586,706  89.8  Consumer:  Residential  496,772  3.3    496,559  3.4    482,537  3.8  Manufactured housing  31,775  0.2    33,123  0.3    37,382  0.3  Installment:  Personal  493,276  3.3    463,854  3.2    492,892  3.8  Other  372,892  2.5    249,799  1.7    299,714  2.3  Total installment loans  866,168  5.8    713,653  4.9    792,606  6.1  Total consumer loans  1,394,715  9.3    1,243,335  8.6    1,312,525  10.2  Total loans and leases held for investment $ 15,060,439  100.0 %  $ 14,448,762  100.0 %  $ 12,899,231  100.0 %  Loans Held for Sale  Residential $ 1,465  3.9 %  $ 1,836  0.9 %  $ 870  0.2 % Installment:  Personal  36,000  95.9    40,903  20.0    137,755  38.5  Other  64  0.2    162,055  79.1    219,015  61.3  Total installment loans  36,064  96.1    202,958  99.1    356,770  99.8  Total loans held for sale $ 37,529  100.0 %  $ 204,794  100.0 %  $ 357,640  100.0 %  Total loans and leases portfolio $ 15,097,968    $ 14,653,556    $ 13,256,871

Loans and Leases Held for Investment

Loans and leases held for investment were $15.1 billion at March 31, 2025, up $611.7 million, or 4.2%, from December 31, 2024. Specialized lending increased by $227.7 million, or 3.9% quarter-over-quarter, to $6.1 billion. Non-owner occupied commercial real estate loans increased by $79.8 million, or 5.9% to $1.4 billion. Multifamily loans increased by $69.9 million, or 3.1% to $2.3 billion. Mortgage finance loans increased by $37.0 million, or 2.6% to $1.5 billion. Owner-occupied commercial real estate loans increased by $38.2 million, or 3.5% to $1.1 billion. Consumer installment loans increased by $152.5 million, or 21.4% to $866.2 million, inclusive of the transfer of $133.8 million from loans held for sale in Q1 2025 as it elected to retain these loans in connection with the sunsetting of an arrangement with a fintech company, which recently was acquired by a bank.

Loans and leases held for investment of $15.1 billion at March 31, 2025 were up $2.2 billion, or 16.8%, year-over-year. Specialized lending increased by $965.7 million, or 18.9% year-over-year. Mortgage finance loans increased by $406.8 million. Owner-occupied commercial real estate loans increased by $332.8 million. Non-owner occupied commercial real estate loans increased by $256.8 million. Multifamily loans increased by $198.4 million. Consumer installment loans increased $73.6 million, inclusive of the transfer from loans held for sale in Q1 2025. These increases were partially offset by a decrease in other commercial and industrial loans of $50.6 million.

Loans Held for Sale

Loans held for sale decreased $167.3 million quarter-over-quarter, and were $37.5 million at March 31, 2025. In Q1 2025, the Bank transferred $133.8 million of other consumer installment loans from held for sale to held for investment as it elected to retain these loans in connection with the sunsetting of an arrangement with a fintech company, which recently was acquired by a bank, whereby the Bank has been originating and holding these loans prior to sale.

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,
2025  December 31,
2024   March 31,
2025  March 31,
2024  Allowance for credit losses on loans and leases $ 141,076   $ 136,775   $ 4,301  $ 141,076   $ 133,296   $ 7,780  Provision (benefit) for credit losses on loans and leases $ 21,445   $ 18,229   $ 3,216  $ 21,445   $ 15,953   $ 5,492  Net charge-offs from loans held for investment $ 17,144   $ 14,612   $ 2,532  $ 17,144   $ 17,968   $ (824 ) Annualized net charge-offs to average loans and leases  0.48 %   0.41 %     0.48 %   0.55 %  Coverage of credit loss reserves for loans and leases held for investment  1.04 %   1.04 %     1.04 %   1.12 %

Net charge-offs increased with $17.1 million in Q1 2025, compared to $14.6 million in Q4 2024, and decreased slightly from $18.0 million in Q1 2024.

Provision (benefit) for Credit Losses

Three Months Ended  Increase
(Decrease)  Three Months Ended  Increase
(Decrease) (Dollars in thousands) March 31,
2025  December 31,
2024   March 31,
2025  March 31,
2024  Provision (benefit) for credit losses on loans and leases $ 21,445  $ 18,229   $ 3,216  $ 21,445  $ 15,953  $ 5,492 Provision (benefit) for credit losses on available for sale debt securities  6,852   2,965    3,887   6,852   1,117   5,735 Provision for credit losses  28,297   21,194    7,103   28,297   17,070   11,227 Provision (benefit) for credit losses on unfunded commitments  1,208   (664 )   1,872   1,208   430   778 Total provision for credit losses $ 29,505  $ 20,530   $ 8,975  $ 29,505  $ 17,500  $ 12,005

The provision for credit losses on loans and leases in Q1 2025 was $21.4 million, compared to $18.2 million in Q4 2024. The higher provision in Q1 2025 was primarily due to slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q1 2025 was $6.9 million, compared to $3.0 million in Q4 2024.

The provision for credit losses on loans and leases in Q1 2025 was $21.4 million, compared to $16.0 million in Q1 2024. The higher provision in Q1 2025 compared to the year ago period was primarily due to slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment.

The provision for credit losses on available for sale investment securities in Q1 2025 was $6.9 million compared to $1.1 million in Q1 2024.

Asset Quality

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

(Dollars in thousands) March 31,
2025  December 31,
2024  Increase
(Decrease)  March 31,
2025  March 31,
2024  Increase
(Decrease) Non-performing assets ("NPAs"):  Nonaccrual / non-performing loans ("NPLs") $ 43,513   $ 43,275   $ 238   $ 43,513   $ 35,654   $ 7,859  Non-performing assets $ 57,960   $ 55,807   $ 2,153   $ 57,960   $ 35,753   $ 22,207  NPLs to total loans and leases  0.29 %   0.30 %     0.29 %   0.27 %  Reserves to NPLs  324.22 %   316.06 %     324.22 %   373.86 %  NPAs to total assets  0.26 %   0.25 %     0.26 %   0.17 %   Loans and leases (1) risk ratings:  Commercial loans and leases  Pass $ 11,818,846   $ 11,403,930   $ 414,916   $ 11,818,846   $ 10,095,611   $ 1,723,235  Special Mention  189,155    175,055    14,100    189,155    194,365    (5,210 ) Substandard  272,575    282,563    (9,988 )   272,575    282,163    (9,588 ) Total commercial loans and leases  12,280,576    11,861,548    419,028    12,280,576    10,572,139    1,708,437  Consumer loans  Performing  1,242,753    1,227,359    15,394    1,242,753    1,293,457    (50,704 ) Non-performing  13,803    15,976    (2,173 )   13,803    19,068    (5,265 ) Total consumer loans  1,256,556    1,243,335    13,221    1,256,556    1,312,525    (55,969 ) Loans and leases receivable (1) $ 13,537,132   $ 13,104,883   $ 432,249   $ 13,537,132   $ 11,884,664   $ 1,652,468

(1) Risk ratings are assigned to loans and leases held for investment, and excludes loans held for sale, loans receivable, mortgage finance, at fair value, loans

held for sale, loans receivable, installment, 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: a 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 historically low loss rates. Because of this emphasis, the Bank’s credit quality to date has been incredibly healthy despite a challenging economic and rate 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, 2025 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 $51.6 million. At March 31, 2025, the consumer installment portfolio had the following characteristics: average original FICO score of 739, average debt-to-income of 20% and average borrower income of $104 thousand.

Non-performing loans at March 31, 2025 decreased to 0.29% of total loans and leases, compared to 0.30% at December 31, 2024 and increased, compared to 0.27% at March 31, 2024.

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,
2025  December 31,
2024  March 31,
2024 Debt securities, available for sale $ 2,024,437  $ 1,985,438  $ 2,571,139 Equity securities  33,118   34,256   33,729 Investment securities, at fair value  2,057,555   2,019,694   2,604,868 Debt securities, held to maturity  938,161   991,937   1,032,037 Total investment securities portfolio $ 2,995,716  $ 3,011,631  $ 3,636,905

Customers’ securities portfolio is highly liquid, short in duration, and high in yield. At March 31, 2025, the AFS debt securities portfolio, excluding the securities that the Bank decided to sell, had a spot yield of 5.50%, an effective duration of approximately 3.6 years, and approximately 22% are variable rate. Additionally, 66% of the AFS securities portfolio was AAA rated at March 31, 2025.

At March 31, 2025, the HTM debt securities portfolio represented only 4.2% of total assets at March 31, 2025, had a spot yield of 3.95% and an effective duration of approximately 4.1 years. Additionally, at March 31, 2025, approximately 51% of the HTM securities were AAA rated and $0.4 billion 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,
2025  % of
Total  December 31,
2024  % of
Total  March 31,
2024  % of
Total Demand, non-interest bearing $ 5,552,605  29.3 %  $ 5,608,288  29.7 %  $ 4,688,880  26.1 % Demand, interest bearing  5,137,961  27.2    5,553,698  29.5    5,661,775  31.5  Total demand deposits  10,690,566  56.5    11,161,986  59.2    10,350,655  57.6  Savings  1,327,854  7.0    1,131,819  6.0    2,080,374  11.6  Money market  4,057,458  21.4    3,844,451  20.4    3,347,843  18.6  Time deposits  2,857,047  15.1    2,708,205  14.4    2,182,511  12.2  Total deposits $ 18,932,925  100.0 %  $ 18,846,461  100.0 %  $ 17,961,383  100.0 %

Total deposits increased $86.5 million, or 0.5%, to $18.9 billion at March 31, 2025 as compared to the prior quarter. Money market deposits increased $213.0 million, or 5.5%, to $4.1 billion, savings deposits increased $196.0 million, or 17.3%, to $1.3 billion and time deposits increased $148.8 million, or 5.5%, to $2.9 billion. These increases were offset by decreases in interest bearing demand deposits of $415.7 million, or 7.5%, to $5.1 billion and non-interest bearing demand deposits of $55.7 million, or 1.0%, to $5.6 billion. The total average cost of deposits decreased by 25 basis points to 2.82% in Q1 2025 from 3.07% in the prior quarter primarily due to a favorable shift in deposit mix and lower market interest rates. Total estimated uninsured deposits were $5.6 billion1, or 30% of total deposits (inclusive of accrued interest) at March 31, 2025 with immediately available liquidity covering approximately 155% of these deposits.

Total deposits increased $971.5 million, or 5.4%, to $18.9 billion at March 31, 2025 as compared to a year ago. Non-interest bearing demand deposits increased $863.7 million, or 18.4%, to $5.6 billion, money market deposits increased $709.6 million, or 21.2%, to $4.1 billion and time deposits increased $674.5 million, or 30.9% to $2.9 billion. These increases were offset by decreases in savings deposits of $752.5 million, or 36.2%, to $1.3 billion and interest bearing demand deposits of $523.8 million, or 9.3%, to $5.1 billion. The total average cost of deposits decreased by 63 basis points to 2.82% in Q1 2025 from 3.45% in the prior year primarily due to a favorable shift in deposit mix and lower market interest rates.

On April 1, 2025, Customers transferred approximately $166.7 million of deposits serviced by BM Technologies, Inc. under a white label relationship to a new sponsor bank.

1 Uninsured deposits (estimate) of $7.3 billion to be reported on the Bank’s call report, less deposits of $1.5 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $198.9 million.

Borrowings

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

(Dollars in thousands) March 31,
2025  December 31,
2024  March 31,
2024 FHLB advances $ 1,133,456  $ 1,128,352  $ 1,195,088 Senior notes  99,103   99,068   123,905 Subordinated debt  182,579   182,509   182,300 Total borrowings $ 1,415,138  $ 1,409,929  $ 1,501,293

Total borrowings increased $5.2 million, or 0.4%, to $1.4 billion at March 31, 2025 as compared to the prior quarter. As of March 31, 2025, Customers’ immediately available borrowing capacity with the FRB and FHLB was approximately $7.9 billion, of which $1.1 billion of available capacity was utilized in borrowings and $1.5 billion was utilized to collateralize deposits.

Total borrowings decreased $86.2 million, or 5.7%, to $1.4 billion at March 31, 2025 as compared to a year ago. This decrease primarily resulted from net repayments of $70.0 million in FHLB advances and $25.0 million in senior notes upon maturity.

Capital

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

(Dollars in thousands except per share data) March 31,
2025  December 31,
2024  March 31,
2024 Customers Bancorp, Inc.  Common Equity $ 1,726,766   $ 1,698,889   $ 1,553,823  Tangible Common Equity* $ 1,723,137   $ 1,695,260   $ 1,550,194  Common Equity to Total Assets  7.7 %   7.6 %   7.3 % Tangible Common Equity to Tangible Assets*  7.7 %   7.6 %   7.3 % Book Value per common share $ 54.85   $ 54.20   $ 49.29  Tangible Book Value per common share* $ 54.74   $ 54.08   $ 49.18  Common equity Tier 1 ("CET 1") capital ratio (1)  11.7 %   12.1 %   12.6 % Total risk based capital ratio (1)  14.6 %   14.9 %   15.9 %  (1) Regulatory capital ratios as of March 31, 2025 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 $27.9 million to $1.7 billion, and tangible common equity* increased $27.9 million to $1.7 billion, at March 31, 2025 compared to the prior quarter, respectively, primarily from earnings of $9.5 million and decreased unrealized losses on investment securities of $28.9 million (net of taxes) deferred in accumulated other comprehensive income ("AOCI"). These increases were offset in part by $5.6 million of common share repurchases in Q1 2025. Similarly, book value per common share increased to $54.85 from $54.20, and tangible book value per common share* increased to $54.74 from $54.08, at March 31, 2025 and December 31, 2024, respectively.

Customers Bancorp’s common equity increased $172.9 million to $1.7 billion, and tangible common equity* increased $172.9 million to $1.7 billion, at March 31, 2025 compared to a year ago, respectively, primarily from earnings of $130.0 million and decreased unrealized losses on investment securities in AOCI of $64.7 million (net of taxes), offset in part by $24.9 million of common share repurchases. Similarly, book value per common share increased to $54.85 from $49.29, and tangible book value per common share* increased to $54.74 from $49.18, at March 31, 2025 and March 31, 2024, 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 11.7%, 14.6%, 7.7%, and 7.7%, respectively, at March 31, 2025.

At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At March 31, 2025, Tier 1 capital (estimate) and total risk based capital (estimate) were 12.4% and 13.9%, respectively.

Key Profitability Trends

Net Interest Income

Net interest income totaled $167.4 million in Q1 2025, a decrease of $0.4 million from Q4 2024. This decrease was driven by a decrease in interest income of $15.0 million primarily due to lower interest income from interest-earning deposits and investment securities, partially offset by lower interest expense of $14.6 million due to a favorable shift in deposit mix and lower market interest rates.

"Net interest margin expanded in the quarter primarily driven by improvements in the liability side of the balance sheet as we lowered interest bearing deposit costs and had higher levels of average non-interest bearing deposits. This is evident in the fact that our total cost of deposits declined by 25 basis points during the quarter.

Additionally, diversified and robust loan growth late in the quarter which we achieved through taking market share should provide a strong foundation for our net interest income throughout the remainder of 2025," stated Customers Bancorp President Sam Sidhu. "We have positive drivers to net interest income on both sides of the balance sheet though we continue to believe the best opportunity remains in reducing our interest expense with continued momentum from our new deposit focused commercial banking teams and across our franchise," stated Sam Sidhu.

Net interest income totaled $167.4 million in Q1 2025, an increase of $7.1 million from Q1 2024. This increase was primarily due to lower interest expense from a favorable shift in deposit mix and lower market interest rates, partially offset by lower interest income from interest-earning deposits and investment securities.

Non-Interest Income (Loss)

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

Three Months Ended  Increase
(Decrease)  Three Months Ended  Increase
(Decrease) (Dollars in thousands) March 31,
2025  December 31,
2024   March 31,
2025  March 31,
2024  Commercial lease income $ 10,668   $ 10,604   $ 64   $ 10,668   $ 9,683   $ 985  Loan fees  7,235    8,639    (1,404 )   7,235    5,280    1,955  Bank-owned life insurance  4,660    2,125    2,535    4,660    3,261    1,399  Mortgage finance transactional fees  933    1,010    (77 )   933    946    (13 ) Net gain (loss) on sale of loans and leases  2    (852 )   854    2    10    (8 ) Net gain (loss) on sale of investment securities  —    (26,260 )   26,260    —    (30 )   30  Impairment loss on investment securities  (51,319 )   —    (51,319 )   (51,319 )   —    (51,319 ) Unrealized gain on equity method investments  —    389    (389 )   —    —    —  Other  3,331    3,954    (623 )   3,331    2,081    1,250  Total non-interest income (loss) $ (24,490 )  $ (391 )  $ (24,099 )  $ (24,490 )  $ 21,231   $ (45,721 )

Reported non-interest income totaled a loss of $24.5 million for Q1 2025, an increase of $24.1 million compared to a loss of $0.4 million for Q4 2024. The increase in losses was primarily due to $51.3 million of impairment loss on certain AFS debt securities that the Bank decided to sell as of March 31, 2025, in order to further improve structural liquidity, enhance credit profile, reduce asset sensitivity and benefit margin, partially offset by a decrease of $26.3 million in net realized loss on sale of investment securities and an increase in bank-owned life insurance income of $2.5 million primarily due to death benefits received from insurance carriers.

Excluding the impact of the securities repositioning in Q1 2025 and Q4 2024, non-interest income was $26.8 million in Q1 2025 compared to $25.9 million in Q4 2024.

Non-interest income totaled a loss of $24.5 million for Q1 2025, a decrease of $45.7 million compared to Q1 2024. The increase in losses was primarily due to $51.3 million of impairment loss on certain AFS debt securities that the Bank decided to sell as of March 31, 2025, partially offset by increases in commercial lease income of $1.0 million, loan fees of $2.0 million primarily resulting from increased unused line of credit fees, bank-owned life insurance income of $1.4 million primarily due to death benefits received from insurance carriers and deposit account fees of $2.1 million.

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,
2025  December 31,
2024   March 31,
2025  March 31,
2024  Salaries and employee benefits $ 42,674  $ 47,147  $ (4,473 )  $ 42,674  $ 36,025  $ 6,649  Technology, communication and bank operations  11,312   13,435   (2,123 )   11,312   21,904   (10,592 ) Commercial lease depreciation  8,463   8,933   (470 )   8,463   7,970   493  Professional services  11,857   13,473   (1,616 )   11,857   6,353   5,504  Loan servicing  4,630   4,584   46    4,630   4,031   599  Occupancy  3,412   3,335   77    3,412   2,347   1,065  FDIC assessments, non-income taxes and regulatory fees  11,750   10,077   1,673    11,750   13,469   (1,719 ) Advertising and promotion  528   1,645   (1,117 )   528   682   (154 ) Other  8,145   7,746   399    8,145   6,388   1,757  Total non-interest expense $ 102,771  $ 110,375  $ (7,604 )  $ 102,771  $ 99,169  $ 3,602

Non-interest expenses totaled $102.8 million in Q1 2025, a decrease of $7.6 million compared to Q4 2024. The decrease was primarily attributable to decreases of $4.5 million in salaries and employee benefits primarily due to lower headcount, severance and incentives, $2.1 million in technology, communication and bank operations primarily due to lower software-as-a-service expenses and $1.6 million in professional fees, partially offset by an increase of $1.7 million in FDIC assessments, non-income taxes and regulatory fees primarily due to higher FDIC assessments.

"During the quarter we realized the benefit of our operational excellence initiatives which are providing the capacity for the continued investments which we are making in our franchise to position us for success in the both the near-term and over the long-term. While we are pleased with the results of these efforts, we will look for continued opportunities to build on this success in the future," stated Sam Sidhu.

Non-interest expenses totaled $102.8 million in Q1 2025, an increase of $3.6 million compared to Q1 2024. The increase was primarily attributable to increases of $6.6 million in salaries and employee benefits primarily due to higher headcount including the addition of new banking teams in April 2024 and annual merit increases, and $5.5 million in professional fees including the investment in our risk management infrastructure. These increases were partially offset by decreases in technology, communication and bank operations primarily due to $7.1 million of deposit servicing fees and FDIC assessments, non-income taxes and regulatory fees, primarily due to $4.2 million of FDIC premiums recorded in Q1 2024, both of which relate to periods prior to 2024.

Taxes

Income tax expense decreased by $10.0 million to a benefit of $1.0 million in Q1 2025 from a provision of $8.9 million in Q4 2024 primarily due to lower pre-tax income and an increase in discrete tax benefits from share-based compensation for 2025, partially offset by lower investment tax credits estimated in 2025 as compared to 2024.

Income tax expense decreased by $16.7 million to a benefit of $1.0 million in Q1 2025 from a provision of $15.7 million in Q1 2024 primarily due to lower pre-tax income and an increase in discrete tax benefits from share-based compensation for 2025. The effective tax rate was (8.6)% for Q1 2025.

Outlook

"Looking forward, our strategy remains unchanged. We are focused on continuing the transformation of our deposit franchise, further strengthening our risk management and compliance infrastructure, improving our profitability and growing net interest income, and maintaining strong capital ratios, liquidity, and credit quality. We began the year with strong performance toward achievement of our loan, deposit, and net interest income growth targets as well as our target of lowering our core efficiency ratio. We remain focused on executing in those areas which differentiate us from our peers and believe that providing truly exceptional service, sophisticated product offerings and a single-point-of-contact service model will deliver strategic, organic growth. We believe we are incredibly well positioned to continue to take market share winning new client relationships and that we have the right strategy, the right team, and a client-centric culture to achieve our goals in 2025 and beyond," 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.

Webcast  Date: Friday, April 25, 2025  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 Head of Corporate Communications, Jordan Baucum at [email protected].

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

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $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. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets No. 72 out of the 100 largest publicly traded banks in 2025 Forbes Best Banks list 2024 Inc. Magazine Best in Business List in Financial Services Category

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

"Safe Harbor" Statement

In addition to historical information, this press release may contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words "may," "could," "should," "pro forma," "looking forward," "would," "believe," "expect," "anticipate," "estimate," "intend," "plan," "project," or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and ongoing conflict in the Middle East, which could impact economic conditions in the United States; the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply; actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; higher inflation and its impacts; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2024, 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 2025 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended March 31, 2025 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 2025  2024  2024  2024  2024  GAAP Profitability Metrics: Net income available to common shareholders $ 9,523   $ 23,266   $ 42,937   $ 54,300   $ 45,926  Per share amounts:  Earnings per share - basic $ 0.30   $ 0.74   $ 1.36   $ 1.72   $ 1.46  Earnings per share - diluted $ 0.29   $ 0.71   $ 1.31   $ 1.66   $ 1.40  Book value per common share (1) $ 54.85   $ 54.20   $ 53.07   $ 50.81   $ 49.29  CUBI stock price (1) $ 50.20   $ 48.68   $ 46.45   $ 47.98   $ 53.06  CUBI stock price as % of book value (1)  92 %   90 %   88 %   94 %   108 % Average shares outstanding - basic  31,447,623    31,346,920    31,567,797    31,649,715    31,473,424  Average shares outstanding - diluted  32,490,572    32,557,621    32,766,488    32,699,149    32,854,534  Shares outstanding (1)  31,479,132    31,346,507    31,342,107    31,667,655    31,521,931  Return on average assets ("ROAA")  0.23 %   0.48 %   0.88 %   1.11 %   0.94 % Return on average common equity ("ROCE")  2.23 %   5.50 %   10.44 %   13.85 %   12.08 % Net interest margin, tax equivalent  3.13 %   3.11 %   3.06 %   3.29 %   3.10 % Efficiency ratio  52.94 %   56.86 %   62.40 %   51.87 %   54.58 % Non-GAAP Profitability Metrics (2):  Core earnings $ 50,002   $ 44,168   $ 43,838   $ 48,567   $ 46,532  Core pre-tax pre-provision net income $ 93,489   $ 84,224   $ 64,824   $ 89,220   $ 83,674  Per share amounts:  Core earnings per share - diluted $ 1.54   $ 1.36   $ 1.34   $ 1.49   $ 1.42  Tangible book value per common share (1) $ 54.74   $ 54.08   $ 52.96   $ 50.70   $ 49.18  CUBI stock price as % of tangible book value (1)  92 %   90 %   88 %   95 %   108 % Core ROAA  0.97 %   0.86 %   0.89 %   1.00 %   0.95 % Core ROCE  11.72 %   10.44 %   10.66 %   12.39 %   12.24 % Core pre-tax pre-provision ROAA  1.70 %   1.51 %   1.21 %   1.71 %   1.58 % Core pre-tax pre-provision ROCE  21.11 %   19.04 %   14.84 %   21.79 %   21.01 % Core efficiency ratio  52.69 %   56.12 %   61.69 %   53.47 %   54.24 % Asset Quality:  Net charge-offs $ 17,144   $ 14,612   $ 17,044   $ 18,711   $ 17,968  Annualized net charge-offs to average total loans and leases  0.48 %   0.41 %   0.50 %   0.56 %   0.55 % Non-performing loans ("NPLs") to total loans and leases (1)  0.29 %   0.30 %   0.34 %   0.35 %   0.27 % Reserves to NPLs (1)  324.22 %   316.06 %   281.36 %   279.52 %   373.86 % Non-performing assets ("NPAs") to total assets  0.26 %   0.25 %   0.22 %   0.23 %   0.17 % Customers Bank Capital Ratios (3):  Common equity Tier 1 capital to risk-weighted assets  12.4 %   12.96 %   13.64 %   14.17 %   14.16 % Tier 1 capital to risk-weighted assets  12.4 %   12.96 %   13.64 %   14.17 %   14.16 % Total capital to risk-weighted assets  13.9 %   14.34 %   15.06 %   15.64 %   15.82 % Tier 1 capital to average assets (leverage ratio)  8.4 %   8.65 %   9.08 %   9.16 %   8.82 %  (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 2025 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 was phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of March 31, 2025, our regulatory capital ratios reflected the full effect of CECL on regulatory capital.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (Dollars in thousands, except per share data)  Q1  Q4  Q3  Q2  Q1 2025  2024  2024  2024  2024 Interest income:  Loans and leases $ 231,008   $ 230,534   $ 228,659   $ 224,265   $ 217,999  Investment securities  34,339    39,638    46,265    47,586    46,802  Interest earning deposits  42,914    48,147    44,372    45,506    52,817  Loans held for sale  4,761    9,447    10,907    13,671    12,048  Other  1,887    2,140    1,910    3,010    2,111  Total interest income  314,909    329,906    332,113    334,038    331,777   Interest expense:  Deposits  131,308    144,974    155,829    148,784    153,725  FHLB advances  11,801    12,595    12,590    13,437    13,485  Subordinated debt  3,212    3,349    3,537    2,734    2,689  Other borrowings  1,142    1,167    1,612    1,430    1,493  Total interest expense  147,463    162,085    173,568    166,385    171,392  Net interest income  167,446    167,821    158,545    167,653    160,385  Provision for credit losses  28,297    21,194    17,066    18,121    17,070  Net interest income after provision for credit losses  139,149    146,627    141,479    149,532    143,315   Non-interest income:  Commercial lease income  10,668    10,604    10,093    10,282    9,683  Loan fees  7,235    8,639    8,011    5,233    5,280  Bank-owned life insurance  4,660    2,125    2,049    2,007    3,261  Mortgage finance transactional fees  933    1,010    1,087    1,058    946  Net gain (loss) on sale of loans and leases  2    (852 )   (14,548 )   (238 )   10  Net gain (loss) on sale of investment securities  —    (26,260 )   —    (719 )   (30 ) Impairment loss on investment securities  (51,319 )   —    —    —    —  Unrealized gain on equity method investments  —    389    —    11,041    —  Other  3,331    3,954    1,865    2,373    2,081  Total non-interest income (loss)  (24,490 )   (391 )   8,557    31,037    21,231   Non-interest expense:  Salaries and employee benefits  42,674    47,147    47,717    44,947    36,025  Technology, communication and bank operations  11,312    13,435    13,588    16,227    21,904  Commercial lease depreciation  8,463    8,933    7,811    7,829    7,970  Professional services  11,857    13,473    9,048    6,104    6,353  Loan servicing  4,630    4,584    3,778    3,516    4,031  Occupancy  3,412    3,335    2,987    3,120    2,347  FDIC assessments, non-income taxes and regulatory fees  11,750    10,077    7,902    10,236    13,469  Advertising and promotion  528    1,645    908    1,254    682  Other  8,145    7,746    10,279    10,219    6,388  Total non-interest expense  102,771    110,375    104,018    103,452    99,169  Income before income tax expense (benefit)  11,888    35,861    46,018    77,117    65,377  Income tax expense (benefit)  (1,024 )   8,946    (725 )   19,032    15,651  Net income  12,912    26,915    46,743    58,085    49,726  Preferred stock dividends  3,389    3,649    3,806    3,785    3,800  Net income available to common shareholders $ 9,523   $ 23,266   $ 42,937   $ 54,300   $ 45,926   Basic earnings per common share $ 0.30   $ 0.74   $ 1.36   $ 1.72   $ 1.46  Diluted earnings per common share  0.29    0.71    1.31    1.66    1.40

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET - UNAUDITED (Dollars in thousands) March 31,  December 31,  September 30,  June 30,  March 31, 2025  2024  2024  2024  2024 ASSETS  Cash and due from banks $ 62,146   $ 56,787   $ 39,429   $ 45,045   $ 51,974  Interest earning deposits  3,366,544    3,729,144    3,048,593    3,003,542    3,649,146  Cash and cash equivalents  3,428,690    3,785,931    3,088,022    3,048,587    3,701,120  Investment securities, at fair value  2,057,555    2,019,694    2,412,069    2,511,650    2,604,868  Investment securities held to maturity  938,161    991,937    1,064,437    962,799    1,032,037  Loans held for sale  37,529    204,794    275,420    375,724    357,640  Loans and leases receivable  13,555,820    13,127,634    12,527,283    12,254,204    11,936,621  Loans receivable, mortgage finance, at fair value  1,366,460    1,321,128    1,250,413    1,002,711    962,610  Loans receivable, installment, at fair value  138,159    —    —    —    —  Allowance for credit losses on loans and leases  (141,076 )   (136,775 )   (133,158 )   (132,436 )   (133,296 ) Total loans and leases receivable, net of allowance for credit losses on loans and leases  14,919,363    14,311,987    13,644,538    13,124,479    12,765,935  FHLB, Federal Reserve Bank, and other restricted stock  96,758    96,214    95,035    92,276    100,067  Accrued interest receivable  105,800    108,351    115,588    112,788    120,123  Bank premises and equipment, net  6,653    6,668    6,730    7,019    7,253  Bank-owned life insurance  298,551    297,641    295,531    293,108    293,400  Goodwill and other intangibles  3,629    3,629    3,629    3,629    3,629  Other assets  530,355    481,395    455,083    410,916    361,295  Total assets $ 22,423,044   $ 22,308,241   $ 21,456,082   $ 20,942,975   $ 21,347,367   LIABILITIES AND SHAREHOLDERS’ EQUITY  Demand, non-interest bearing deposits $ 5,552,605   $ 5,608,288   $ 4,670,809   $ 4,474,862   $ 4,688,880  Interest bearing deposits  13,380,320    13,238,173    13,398,580    13,203,231    13,272,503  Total deposits  18,932,925    18,846,461    18,069,389    17,678,093    17,961,383  FHLB advances  1,133,456    1,128,352    1,117,229    1,018,349    1,195,088  Other borrowings  99,103    99,068    99,033    123,970    123,905  Subordinated debt  182,579    182,509    182,439    182,370    182,300  Accrued interest payable and other liabilities  210,421    215,168    186,812    193,328    193,074  Total liabilities  20,558,484    20,471,558    19,654,902    19,196,110    19,655,750   Preferred stock  137,794    137,794    137,794    137,794    137,794  Common stock  35,995    35,758    35,734    35,686    35,540  Additional paid in capital  570,172    575,333    571,609    567,345    567,490  Retained earnings  1,335,534    1,326,011    1,302,745    1,259,808    1,205,508  Accumulated other comprehensive income (loss), net  (67,641 )   (96,560 )   (106,082 )   (131,358 )   (132,305 ) Treasury stock, at cost  (147,294 )   (141,653 )   (140,620 )   (122,410 )   (122,410 ) Total shareholders’ equity  1,864,560    1,836,683    1,801,180    1,746,865    1,691,617  Total liabilities and shareholders’ equity $ 22,423,044   $ 22,308,241   $ 21,456,082   $ 20,942,975   $ 21,347,367

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (Dollars in thousands)  Three Months Ended March 31, 2025  December 31, 2024  March 31, 2024 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 $ 3,857,617  $ 42,914  4.51 %  $ 3,973,262  $ 48,147  4.82 %  $ 3,865,028  $ 52,817  5.50 % Investment securities (1)  3,100,429   34,339  4.49 %   3,392,850   39,638  4.65 %   3,771,097   46,802  4.99 % Loans and leases:  Commercial & industrial:  Specialized lending loans and leases (2)  6,474,034   120,951  7.58 %   6,022,062   121,818  8.05 %   5,268,345   115,590  8.82 % Other commercial & industrial loans (2)  1,542,846   23,933  6.29 %   1,529,478   25,514  6.64 %   1,654,665   26,714  6.49 % Mortgage finance loans  1,252,602   14,752  4.78 %   1,316,884   16,704  5.05 %   1,033,177   12,830  4.99 % Multifamily loans  2,273,893   23,664  4.22 %   2,162,825   22,400  4.12 %   2,121,650   21,255  4.03 % Non-owner occupied commercial real estate loans  1,550,372   21,564  5.64 %   1,491,170   21,770  5.81 %   1,348,468   20,179  6.02 % Residential mortgages  530,613   6,228  4.76 %   535,833   6,301  4.68 %   522,528   5,708  4.39 % Installment loans  938,193   24,677  10.67 %   1,023,569   25,474  9.90 %   1,179,721   27,771  9.47 % Total loans and leases (3)  14,562,553   235,769  6.57 %   14,081,821   239,981  6.78 %   13,128,554   230,047  7.05 % Other interest-earning assets  127,793   1,887  5.99 %   122,784   2,140  6.93 %   107,525   2,111  7.90 % Total interest-earning assets  21,648,392   314,909  5.89 %   21,570,717   329,906  6.09 %   20,872,204   331,777  6.39 % Non-interest-earning assets  666,571       609,253       463,025  Total assets $ 22,314,963      $ 22,179,970      $ 21,335,229  Liabilities  Interest checking accounts $ 5,358,206  $ 49,903  3.78 %  $ 5,597,302  $ 57,268  4.07 %  $ 5,538,846  $ 61,531  4.47 % Money market deposit accounts  3,882,855   37,767  3.94 %   3,974,776   42,492  4.25 %   3,233,103   36,811  4.58 % Other savings accounts  1,151,439   10,691  3.77 %   1,258,018   12,939  4.09 %   1,753,118   21,399  4.91 % Certificates of deposit  2,749,720   32,947  4.86 %   2,612,246   32,275  4.92 %   2,750,788   33,984  4.97 % Total interest-bearing deposits (4)  13,142,220   131,308  4.05 %   13,442,342   144,974  4.29 %   13,275,855   153,725  4.66 % Borrowings  1,346,941   16,155  4.86 %   1,364,138   17,111  4.99 %   1,506,707   17,667  4.72 % Total interest-bearing liabilities  14,489,161   147,463  4.13 %   14,806,480   162,085  4.36 %   14,782,562   171,392  4.66 % Non-interest-bearing deposits (4)  5,710,644       5,346,912       4,620,986  Total deposits and borrowings  20,199,805    2.96 %   20,153,392    3.20 %   19,403,548    3.55 % Other non-interest-bearing liabilities  246,455       204,947       264,677  Total liabilities  20,446,260       20,358,339       19,668,225  Shareholders’ equity  1,868,703       1,821,631       1,667,004  Total liabilities and shareholders’ equity $ 22,314,963      $ 22,179,970      $ 21,335,229  Net interest income    167,446       167,821       160,385  Tax-equivalent adjustment    363       377       394  Net interest earnings   $ 167,809      $ 168,198      $ 160,779  Interest spread     2.93 %      2.89 %      2.84 % Net interest margin     3.13 %      3.10 %      3.09 % Net interest margin tax equivalent (5)     3.13 %      3.11 %      3.10 %   (1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. (2) Includes owner occupied commercial real estate loans. (3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees. (4) Total costs of deposits (including interest bearing and non-interest bearing) were 2.82%, 3.07% and 3.45% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. (5) Tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, 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, 2025  2024  2024  2024  2024 Loans and leases held for investment  Commercial:  Commercial & industrial:  Specialized lending $ 6,070,093  $ 5,842,420  $ 5,468,507  $ 5,528,745  $ 5,104,405 Other commercial & industrial  1,062,933   1,062,631   1,087,222   1,092,146   1,113,517 Mortgage finance  1,477,896   1,440,847   1,367,617   1,122,812   1,071,146 Multifamily  2,322,123   2,252,246   2,115,978   2,067,332   2,123,675 Commercial real estate owner occupied  1,139,126   1,100,944   981,904   805,779   806,278 Commercial real estate non-owner occupied  1,438,906   1,359,130   1,326,591   1,202,606   1,182,084 Construction  154,647   147,209   174,509   163,409   185,601 Total commercial loans and leases  13,665,724   13,205,427   12,522,328   11,982,829   11,586,706 Consumer:  Residential  496,772   496,559   500,786   481,503   482,537 Manufactured housing  31,775   33,123   34,481   35,901   37,382 Installment:  Personal  493,276   463,854   453,739   474,481   492,892 Other  372,892   249,799   266,362   282,201   299,714 Total installment loans  866,168   713,653   720,101   756,682   792,606 Total consumer loans  1,394,715   1,243,335   1,255,368   1,274,086   1,312,525 Total loans and leases held for investment $ 15,060,439  $ 14,448,762  $ 13,777,696  $ 13,256,915  $ 12,899,231  Loans held for sale  Residential $ 1,465  $ 1,836  $ 2,523  $ 2,684  $ 870 Installment:  Personal  36,000   40,903   55,799   125,598   137,755 Other  64   162,055   217,098   247,442   219,015 Total installment loans  36,064   202,958   272,897   373,040   356,770 Total loans held for sale $ 37,529  $ 204,794  $ 275,420  $ 375,724  $ 357,640  Total loans and leases portfolio $ 15,097,968  $ 14,653,556  $ 14,053,116  $ 13,632,639  $ 13,256,871

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES PERIOD END DEPOSIT COMPOSITION - UNAUDITED (Dollars in thousands)  March 31,  December 31,  September 30,  June 30,  March 31, 2025  2024  2024  2024  2024  Demand, non-interest bearing $ 5,552,605  $ 5,608,288  $ 4,670,809  $ 4,474,862  $ 4,688,880 Demand, interest bearing  5,137,961   5,553,698   5,606,500   5,894,056   5,661,775 Total demand deposits  10,690,566   11,161,986   10,277,309   10,368,918   10,350,655 Savings  1,327,854   1,131,819   1,399,968   1,573,661   2,080,374 Money market  4,057,458   3,844,451   3,961,028   3,539,815   3,347,843 Time deposits  2,857,047   2,708,205   2,431,084   2,195,699   2,182,511 Total deposits $ 18,932,925  $ 18,846,461  $ 18,069,389  $ 17,678,093  $ 17,961,383

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES ASSET QUALITY - UNAUDITED (Dollars in thousands)  As of March 31, 2025  As of December 31, 2024  As of March 31, 2024 Loan type Total loans  Allowance
for credit
losses  Total
reserves to
total loans  Total loans  Allowance
for credit
losses  Total
reserves to
total loans  Total loans  Allowance
for credit
losses  Total
reserves to
total loans Commercial:  Commercial & industrial, including specialized lending $ 7,244,462  $ 30,584  0.42 %  $ 7,024,770  $ 29,379  0.42 %  $ 6,326,458  $ 23,003  0.36 % Multifamily  2,322,123   18,790  0.81 %   2,252,246   18,511  0.82 %   2,123,675   18,307  0.86 % Commercial real estate owner occupied  1,139,126   10,780  0.95 %   1,100,944   10,755  0.98 %   806,278   10,201  1.27 % Commercial real estate non-owner occupied  1,438,906   18,058  1.25 %   1,359,130   17,405  1.28 %   1,182,084   18,320  1.55 % Construction  154,647   1,264  0.82 %   147,209   1,250  0.85 %   185,601   1,866  1.01 % Total commercial loans and leases receivable  12,299,264   79,476  0.65 %   11,884,299   77,300  0.65 %   10,624,096   71,697  0.67 %  Consumer:  Residential  496,772   6,163  1.24 %   496,559   5,968  1.20 %   482,537   6,707  1.39 % Manufactured housing  31,775   3,800  11.96 %   33,123   3,829  11.56 %   37,382   4,160  11.13 % Installment  728,009   51,637  7.09 %   713,653   49,678  6.96 %   792,606   50,732  6.40 % Total consumer loans receivable  1,256,556   61,600  4.90 %   1,243,335   59,475  4.78 %   1,312,525   61,599  4.69 %  Loans and leases receivable held for investment  13,555,820   141,076  1.04 %   13,127,634   136,775  1.04 %   11,936,621   133,296  1.12 %  Loans receivable, mortgage finance, at fair value  1,366,460   —  — %   1,321,128   —  — %   962,610   —  — % Loans receivable, installment, at fair value  138,159   —  — %   —   —  — %   —   —  — % Loans held for sale  37,529   —  — %   204,794   —  — %   357,640   —  — %  Total loans and leases portfolio $ 15,097,968  $ 141,076  0.93 %  $ 14,653,556  $ 136,775  0.93 %  $ 13,256,871  $ 133,296  1.01 %

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES ASSET QUALITY - UNAUDITED (CONTINUED) (Dollars in thousands)  As of March 31, 2025  As of December 31, 2024  As of March 31, 2024 Loan type Non accrual
/NPLs  Total NPLs
to total
loans  Total
reserves to
total NPLs  Non accrual
/NPLs  Total NPLs
to total
loans  Total
reserves to
total NPLs  Non accrual
/NPLs  Total NPLs
to total
loans  Total
reserves to
total NPLs Commercial:  Commercial & industrial, including specialized lending $ 18,754  0.26 %  163.08 %  $ 4,041  0.06 %  727.02 %  $ 3,608  0.06 %  637.56 % Multifamily  —  — %  — %   11,834  0.53 %  156.42 %   5,161  0.24 %  354.72 % Commercial real estate owner occupied  7,793  0.68 %  138.33 %   8,090  0.73 %  132.94 %   8,920  1.11 %  114.36 % Commercial real estate non-owner occupied  62  — %  29125.81 %   354  0.03 %  4916.67 %   62  0.01 %  29548.39 % Construction  —  — %  — %   —  — %  — %   —  — %  — % Total commercial loans and leases receivable  26,609  0.22 %  298.68 %   24,319  0.20 %  317.86 %   17,751  0.17 %  403.90 %  Consumer:  Residential  8,151  1.64 %  75.61 %   8,714  1.75 %  68.49 %   8,089  1.68 %  82.92 % Manufactured housing  1,653  5.20 %  229.89 %   1,852  5.59 %  206.75 %   2,268  6.07 %  183.42 % Installment  4,659  0.64 %  1108.33 %   5,613  0.79 %  885.05 %   6,958  0.88 %  729.12 % Total consumer loans receivable  14,463  1.15 %  425.91 %   16,179  1.30 %  367.61 %   17,315  1.32 %  355.76 %  Loans and leases receivable  41,072  0.30 %  343.48 %   40,498  0.31 %  337.73 %   35,066  0.29 %  380.13 %  Loans receivable, mortgage finance, at fair value  —  — %  — %   —  — %  — %   —  — %  — % Loans receivable, installment, at fair value  2,059  1.49 %  — %   —  — %  — %   —  — %  — % Loans held for sale  382  1.02 %  — %   2,777  1.36 %  — %   588  0.16 %  — %  Total loans and leases portfolio $ 43,513  0.29 %  324.22 %  $ 43,275  0.30 %  316.06 %  $ 35,654  0.27 %  373.86 %

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED (Dollars in thousands)  Q1  Q4  Q3  Q2  Q1 2025  2024  2024  2024  2024 Loan type  Commercial & industrial, including specialized lending $ 3,231   $ 3,653   $ 5,056   $ 5,665   $ 3,672 Multifamily  3,834    —    2,167    1,433    473 Commercial real estate owner occupied  16    339    4    —    22 Commercial real estate non-owner occupied  —    145    —    —    — Construction  (3 )   —    (3 )   (7 )   — Residential  —    (18 )   (21 )   (20 )   18 Installment  10,066    10,493    9,841    11,640    13,783 Total net charge-offs (recoveries) from loans held for investment $ 17,144   $ 14,612   $ 17,044   $ 18,711   $ 17,968

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 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024 (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 $ 9,523  $ 0.29  $ 23,266  $ 0.71   $ 42,937  $ 1.31   $ 54,300  $ 1.66   $ 45,926 $ 1.40 Reconciling items (after tax):  Severance expense  —   —   1,198   0.04    540   0.02    1,928   0.06    —  — Impairment loss on investment securities  39,875   1.23   —   —    —   —    —   —    —  — Legal settlement  —   —   157   0.00    —   —    —   —    —  — (Gains) losses on investment securities  (124 )  0.00   20,035   0.62    (322 )  (0.01 )   561   0.02    57  0.00 Derivative credit valuation adjustment  210   0.01   (306 )  (0.01 )   185   0.01    (44 )  0.00    169  0.01 FDIC special assessment  —   —   —   —    —   —    138   0.00    380  0.01 Unrealized (gain) on equity method investments  —   —   (292 )  (0.01 )   —   —    (8,316 )  (0.25 )   —  — Unrealized losses on loans held for sale  518   0.02   110   0.00    498   0.02    —   —    —  — Core earnings $ 50,002  $ 1.54  $ 44,168  $ 1.36   $ 43,838  $ 1.34   $ 48,567  $ 1.49   $ 46,532 $ 1.42  One-time non-interest expense items recorded in 2024 (after-tax):  Deposit servicing fees prior to 2024  —   —   —   —    —   —    —   —    5,405  0.16 FDIC premiums prior to 2024  —   —   —   —    —   —    —   —    3,200  0.10 Non-income taxes prior to 2024  —   —   —   —    (2,457 )  (0.07 )   —   —    —  — Total one-time non-interest expense items  —   —   —   —    (2,457 )  (0.07 )   —   —    8,605  0.26 Adjusted core earnings (adjusted for one-time non-interest expense items) $ 50,002  $ 1.54  $ 44,168  $ 1.36   $ 41,381  $ 1.26   $ 48,567  $ 1.49   $ 55,137 $ 1.68

Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp  (Dollars in thousands, except per share data) Q1 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024 GAAP net income $ 12,912   $ 26,915   $ 46,743   $ 58,085   $ 49,726  Reconciling items (after tax):  Severance expense  —    1,198    540    1,928    —  Impairment loss on investment securities  39,875    —    —    —    —  Legal settlement  —    157    —    —    —  (Gains) losses on investment securities  (124 )   20,035    (322 )   561    57  Derivative credit valuation adjustment  210    (306 )   185    (44 )   169  FDIC special assessment  —    —    —    138    380  Unrealized (gain) on equity method investments  —    (292 )   —    (8,316 )   —  Unrealized losses on loans held for sale  518    110    498    —    —  Core net income $ 53,391   $ 47,817   $ 47,644   $ 52,352   $ 50,332   One-time non-interest expense items recorded in 2024 (after-tax):  Deposit servicing fees prior to 2024  —    —    —    —    5,405  FDIC premiums prior to 2024  —    —    —    —    3,200  Non-income taxes prior to 2024  —    —    (2,457 )   —    —  Total one-time non-interest expense items  —    —    (2,457 )   —    8,605  Adjusted core net income (adjusted for one-time non-interest expense items) $ 53,391   $ 47,817   $ 45,187   $ 52,352   $ 58,937   Average total assets $ 22,314,963   $ 22,179,970   $ 21,230,404   $ 20,985,203   $ 21,335,229   Core return on average assets  0.97 %   0.86 %   0.89 %   1.00 %   0.95 %  Adjusted core return on average assets (adjusted for one-time non-interest expense items)  0.97 %   0.86 %   0.85 %   1.00 %   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 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024 GAAP net income $ 12,912   $ 26,915   $ 46,743   $ 58,085   $ 49,726  Reconciling items:  Income tax expense (benefit)  (1,024 )   8,946    (725 )   19,032    15,651  Provision (benefit) for credit losses  28,297    21,194    17,066    18,121    17,070  Provision (benefit) for credit losses on unfunded commitments  1,208    (664 )   642    1,594    430  Severance expense  —    1,595    659    2,560    —  Impairment loss on investment securities  51,319    —    —    —    —  Legal settlement  —    209    —    —    —  (Gains) losses on investment securities  (160 )   26,678    (394 )   744    75  Derivative credit valuation adjustment  270    (407 )   226    (58 )   222  FDIC special assessment  —    —    —    183    500  Unrealized (gain) on equity method investments  —    (389 )   —    (11,041 )   —  Unrealized losses on loans held for sale  667    147    607    —    —  Core pre-tax pre-provision net income $ 93,489   $ 84,224   $ 64,824   $ 89,220   $ 83,674   One-time non-interest expense items recorded in 2024 (after-tax):  Deposit servicing fees prior to 2024  —    —    —    —    7,106  FDIC premiums prior to 2024  —    —    —    —    4,208  Non-income taxes prior to 2024  —    —    (2,997 )   —    —  Total one-time non-interest expense items  —    —    (2,997 )   —    11,314  Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items) $ 93,489   $ 84,224   $ 61,827   $ 89,220   $ 94,988   Average total assets $ 22,314,963   $ 22,179,970   $ 21,230,404   $ 20,985,203   $ 21,335,229   Core pre-tax pre-provision ROAA  1.70 %   1.51 %   1.21 %   1.71 %   1.58 %  Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items)  1.70 %   1.51 %   1.16 %   1.71 %   1.79 %

Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp  (Dollars in thousands, except per share data) Q1 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024 GAAP net income to common shareholders $ 9,523   $ 23,266   $ 42,937   $ 54,300   $ 45,926  Reconciling items (after tax):  Severance expense  —    1,198    540    1,928    —  Impairment loss on investment securities  39,875    —    —    —    —  Legal settlement  —    157    —    —    —  (Gains) losses on investment securities  (124 )   20,035    (322 )   561    57  Derivative credit valuation adjustment  210    (306 )   185    (44 )   169  FDIC special assessment  —    —    —    138    380  Unrealized (gain) on equity method investments  —    (292 )   —    (8,316 )   —  Unrealized losses on loans held for sale  518    110    498    —    —  Core earnings $ 50,002   $ 44,168   $ 43,838   $ 48,567   $ 46,532   One-time non-interest expense items recorded in 2024 (after-tax):  Deposit servicing fees prior to 2024  —    —    —    —    5,405  FDIC premiums prior to 2024  —    —    —    —    3,200  Non-income taxes prior to 2024  —    —    (2,457 )   —    —  Total one-time non-interest expense items  —    —    (2,457 )   —    8,605  Adjusted core earnings (adjusted for one-time non-interest expense items) $ 50,002   $ 44,168   $ 41,381   $ 48,567   $ 55,137   Average total common shareholders’ equity $ 1,730,910   $ 1,683,838   $ 1,636,242   $ 1,576,595   $ 1,529,211   Core return on average common equity  11.72 %   10.44 %   10.66 %   12.39 %   12.24 %  Adjusted core return on average common equity (adjusted for one-time non-interest expense items)  11.72 %   10.44 %   10.06 %   12.39 %   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 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024 GAAP net income to common shareholders $ 9,523   $ 23,266   $ 42,937   $ 54,300   $ 45,926  Reconciling items:  Income tax expense (benefit)  (1,024 )   8,946    (725 )   19,032    15,651  Provision (benefit) for credit losses  28,297    21,194    17,066    18,121    17,070  Provision (benefit) for credit losses on unfunded commitments  1,208    (664 )   642    1,594    430  Severance expense  —    1,595    659    2,560    —  Impairment loss on investment securities  51,319    —    —    —    —  Legal settlement  —    209    —    —    —  (Gains) losses on investment securities  (160 )   26,678    (394 )   744    75  Derivative credit valuation adjustment  270    (407 )   226    (58 )   222  FDIC special assessment  —    —    —    183    500  Unrealized (gain) on equity method investments  —    (389 )   —    (11,041 )   —  Unrealized losses on loans held for sale  667    147    607    —    —  Core pre-tax pre-provision net income available to common shareholders $ 90,100   $ 80,575   $ 61,018   $ 85,435   $ 79,874   One-time non-interest expense items recorded in 2024 (after-tax):  Deposit servicing fees prior to 2024  —    —    —    —    7,106  FDIC premiums prior to 2024  —    —    —    —    4,208  Non-income taxes prior to 2024  —    —    (2,997 )   —    —  Total one-time non-interest expense items  —    —    (2,997 )   —    11,314  Adjusted core pre-tax pre-provision net income available to common shareholders $ 90,100   $ 80,575   $ 58,021   $ 85,435   $ 91,188   Average total common shareholders’ equity $ 1,730,910   $ 1,683,838   $ 1,636,242   $ 1,576,595   $ 1,529,211   Core pre-tax pre-provision ROCE  21.11 %   19.04 %   14.84 %   21.79 %   21.01 %  Adjusted core pre-tax pre-provision ROCE (adjusted for one-time non-interest expense items)  21.11 %   19.04 %   14.11 %   21.79 %   23.98 %

Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp  (Dollars in thousands, except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP net interest income $ 167,446  $ 167,821  $ 158,545  $ 167,653  $ 160,385   GAAP non-interest income (loss) $ (24,490 ) $ (391 ) $ 8,557  $ 31,037  $ 21,231  (Gains) losses on investment securities  (160 )  26,678   (394 )  744   75  Derivative credit valuation adjustment  270   (407 )  226   (58 )  222  Unrealized (gain) on equity method investments  —   (389 )  —   (11,041 )  —  Unrealized losses on loans held for sale  667   147   607   —   —  Impairment loss on investment securities  51,319   —   —   —   —  Core non-interest income  27,606   25,638   8,996   20,682   21,528  Core revenue $ 195,052  $ 193,459  $ 167,541  $ 188,335  $ 181,913    GAAP non-interest expense $ 102,771  $ 110,375  $ 104,018  $ 103,452  $ 99,169  Severance expense  —   (1,595 )  (659 )  (2,560 )  —  FDIC special assessment  —   —   —   (183 )  (500 ) Legal settlement  —   (209 )  —   —   —  Core non-interest expense $ 102,771  $ 108,571  $ 103,359  $ 100,709  $ 98,669   One-time non-interest expense items recorded in 2024:  Deposit servicing fees prior to 2024  —   —   —   —   (7,106 ) FDIC premiums prior to 2024  —   —   —   —   (4,208 ) Non-income taxes prior to 2024  —   —   2,997   —   —  Total one-time non-interest expense items  —   —   2,997   —   (11,314 ) Adjusted core non-interest expense $ 102,771  $ 108,571  $ 106,356  $ 100,709  $ 87,355   Core efficiency ratio (1)  52.69 %  56.12 %  61.69 %  53.47 %  54.24 %  Adjusted core efficiency ratio (adjusted for one-time non-interest expense items) (2)  52.69 %  56.12 %  63.48 %  53.47 %  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.

Tangible Common Equity to Tangible Assets - Customers Bancorp   (Dollars in thousands, except per share data) Q1 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024 GAAP total shareholders’ equity $ 1,864,560   $ 1,836,683   $ 1,801,180   $ 1,746,865   $ 1,691,617  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 $ 1,723,137   $ 1,695,260   $ 1,659,757   $ 1,605,442   $ 1,550,194   GAAP total assets $ 22,423,044   $ 22,308,241   $ 21,456,082   $ 20,942,975   $ 21,347,367  Reconciling items:  Goodwill and other intangibles  (3,629 )   (3,629 )   (3,629 )   (3,629 )   (3,629 ) Tangible assets $ 22,419,415   $ 22,304,612   $ 21,452,453   $ 20,939,346   $ 21,343,738   Tangible common equity to tangible assets  7.7 %   7.6 %   7.7 %   7.7 %   7.3 %

Tangible Book Value per Common Share - Customers Bancorp   (Dollars in thousands, except share and per share data) Q1 2025  Q4 2024  Q3 2024  Q2 2024  Q1 2024 GAAP total shareholders’ equity $ 1,864,560   $ 1,836,683   $ 1,801,180   $ 1,746,865   $ 1,691,617  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 $ 1,723,137   $ 1,695,260   $ 1,659,757   $ 1,605,442   $ 1,550,194   Common shares outstanding  31,479,132    31,346,507    31,342,107    31,667,655    31,521,931   Tangible book value per common share $ 54.74   $ 54.08   $ 52.96   $ 50.70   $ 49.18

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Jordan Baucum, Head of Corporate Communications 951-608-8314

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