WEST READING, PA — Customers Bancorp, Inc (NYSE: CUBI) has recently disclosed its financial performance for the first quarter of 2024. The company reported a net income available to common shareholders of $45.9 million, or $1.40 per share. This signifies a return on average assets (ROAA) of 0.94% and a return on common equity (ROCE) of 12.08%.
Earlier this year, the company’s core earnings stood at $46.5 million, or $1.42 per share, which represents a core ROAA of 0.95% and core ROCE of 12.24%. Moreover, the firm’s adjusted core earnings, which exclude certain one-time items, amounted to $55.1 million, or $1.68 per share, an adjusted core ROAA of 1.11%, and adjusted core ROCE of 14.50%.
In terms of capital adequacy, the company’s CET 1 ratio depicted a slight increase from 12.2% at the end of 2024 to 12.5% as of March 31, 2024. This surpasses the target of approximately 11.5%. Furthermore, the firm’s TCE / TA ratio rose from 7.0% in December 2023 to 7.3% in March 2024, demonstrating progress toward reaching the 7.5% target within the following two quarters.
The bank’s net interest margin, being tax equivalent, decreased to 3.10% in Q1 2024 from 3.31% in Q4 2023. This decline is attributed to higher cash balances and lower average loans during the quarter.
Deposits experienced a significant positive mix shift, with an increase of $41.1 million in Q1 2024 from Q4 2023. Business unit deposit growth of $1.2 billion facilitated the repayment of maturing wholesale CDs of an equal amount, further reinforcing the bank’s financial health.
Furthermore, non-performing assets amounted to $35.8 million, or 0.17% of total assets, compared to 0.13% at the end of 2023. The provision for credit losses on loans and leases for Q1 2024 was $16.0 million compared to $13.4 million in Q4 2023, signaling heightened risk management efforts by the financial institution.
Customers Bancorp’s Chairman and CEO, Jay Sidhu, expressed enthusiasm about the firm’s performance and future prospects. He shared plans to enhance customer service delivery and profitability through targeted investment and the addition of experienced banking teams. Sidhu further emphasized the company’s strong financial position and its confidence in maintaining robust capital ratios.
The Q1 2024 GAAP earnings were $45.9 million, or $1.40 per diluted share, while core earnings stood at $46.5 million, or $1.42 per diluted share. Excluding certain one-time items, the adjusted core earnings were $55.1 million, or $1.68 per diluted share.
Sidhu expressed optimism about the bank’s strategic priorities and success in the year 2024. He stressed the importance of maintaining risk management capabilities and providing excellent service to its clients, as a part of their strategic commitment to financial growth and stability.
This report represents a reassuring picture of the financial health and future prospects of Customers Bancorp, Inc. With a strong performance in the past quarter and strategic plans moving forward, this financial institution appears set on a path toward sustained growth and increased shareholder value.
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