WEST READING, PA — Customers Bancorp, Inc. (NYSE:CUBI) has released its financial results for the third quarter of 2024, showcasing a strong performance with notable growth in key areas. The company reported a net income of $42.9 million, translating to $1.31 per diluted share. The return on average assets (ROAA) stood at 0.88%, while the return on common equity (ROCE) reached 10.44%.
Core earnings for the quarter came in at $43.8 million, or $1.34 per diluted share, with a core ROAA of 0.89% and core ROCE of 10.66%. The common equity tier 1 (CET 1) ratio was 12.5%, slightly down from 12.8% at the end of June, yet remaining above the 11.5% target.
The bank saw significant growth in its loan and lease portfolio, which expanded by $520.8 million, marking a 16% annualized increase. Total deposits rose by $391.3 million, fueled by $1.1 billion in inflows from commercial clients, which also facilitated the reduction of $0.7 billion in higher-cost deposits.
Customers Bancorp maintained a stable total capital ratio, with 75% of total deposits being insured as of September 30. Available liquidity adequately covered estimated uninsured deposits by approximately 183%.
The net interest margin (NIM) was 3.06%, a decrease from 3.29% in the previous quarter, primarily due to less discount accretion and prepayment income, as well as lower balances in consumer installment loans and changes in the securities portfolio.
Non-performing assets were slightly reduced to $47.3 million, or 0.22% of total assets, compared to 0.23% in the second quarter. The provision for credit losses on loans and leases was $17.8 million, with the allowance for credit losses at 281% of non-performing loans.
Book value per share and tangible book value per share both increased by about $2.26, or 4.5% over the previous quarter, driven by earnings and a reduction in accumulated other comprehensive income losses. As of September 30, the tangible book value per share stood at $52.96.
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