Customers Bancorp, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - CUSTOMERS BANCORP, INC. FORM 8-K - Customers Bancorp, Inc.	customers8k.htm
EX-99.2 - EXHIBIT 99.2 - Customers Bancorp, Inc.	ex99-2.htm

Exhibit 99.1

Highly Focused, Low Risk, Above Average Growth

Bank Holding Company

Investor Presentation

July, 2015

NYSE: CUBI

Forward-Looking Statements

This presentation as well as other written or oral communications made from time to time by us, may contain certain forward-looking information
within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These statements relate to future
events or future predictions, including events or predictions relating to our future financial performance, and are generally identifiable by the use of
forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “plan,” “intend,” “target,” or “anticipates” or the negative thereof
or comparable terminology, or by discussion of strategy or goals that involve risks and uncertainties. These forward-looking statements are only
predictions and estimates regarding future events and circumstances and involve known and unknown risks, uncertainties and other factors that may
cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by such forward-looking statements. This information is based on various assumptions by us that
may not prove to be correct. Important factors to consider and evaluate in such forward-looking statements include:

•changes in the external competitive market factors that might impact our results of operations;

•changes in laws and regulations, including without limitation changes in capital requirements under the federal prompt corrective action regulations;

•changes in our business strategy or an inability to execute our strategy due to the occurrence of unanticipated events;

•our ability to identify potential candidates for, and consummate, acquisition or investment transactions;

•the timing of acquisition or investment transactions;

•constraints on our ability to consummate an attractive acquisition or investment transaction because of significant competition for these
opportunities;

•the failure of the Bank to complete any or all of the transactions described herein on the terms currently contemplated;

•local, regional and national economic conditions and events and the impact they may have on us and our customers;

•ability to attract deposits and other sources of liquidity;

•changes in the financial performance and/or condition of our borrowers;

•changes in the level of non-performing and classified assets and charge-offs;

•changes in estimates of future loan loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting
requirements;

•inflation, interest rate, securities market and monetary fluctuations;

•the timely development and acceptance of new banking products and services and perceived overall value of these products and services by users;

•changes in consumer spending, borrowing and saving habits;

•technological changes;

•the ability to increase market share and control expenses;

Forward-Looking Statements

• continued volatility in the credit and equity markets and its effect on the general economy;

• the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company
Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters;

• the businesses of the Bank and any acquisition targets or merger partners and subsidiaries not integrating successfully or such integration being
more difficult, time-consuming or costly than expected;

• material differences in the actual financial results of merger and acquisition activities compared with expectations, such as with respect to the full
realization of anticipated cost savings and revenue enhancements within the expected time frame;

• revenues following any merger being lower than expected;

• deposit attrition, operating costs, customer loss and business disruption following the merger, including, without limitation, difficulties in
maintaining relationships with employees being greater than expected.

These forward-looking statements are subject to significant uncertainties and contingencies, many of which are beyond our control. Although we
believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity,
performance or achievements. Accordingly, there can be no assurance that actual results will meet expectations or will not be materially lower
than the results contemplated in this presentation. You are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this document or, in the case of documents referred to or incorporated by reference, the dates of those documents.
We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after
the date of this document or to reflect the occurrence of unanticipated events, except as may be required under applicable law.

This presentation is for discussion purposes only, and shall not constitute any offer to sell or the solicitation of an offer to buy any security, nor is it
intended to give rise to any legal relationship between Customers Bancorp, Inc. (the "Company") and you or any other person, nor is it a
recommendation to buy any securities or enter into any transaction with the Company. This presentation also includes estimated guidance
regarding our fully diluted earnings per share for the year 2015, which we have previously disclosed and is subject to the assumptions and
qualifications included in that previous disclosure. The guidance consists solely of estimates prepared by management based on currently
available information and assumptions of future performance of the company and the general economy. Our independent registered public
accounting firm has not audited, reviewed or performed any procedures with respect to the guidance and, accordingly, does not express an
opinion or any other form of assurance with respect to this data. Our actual results may differ from the guidance, and any such differences could
be material. Accordingly, undue reliance should not be placed on this information. The factors discussed above should be considered and
evaluated with respect to our guidance.

A $7.6 billion asset business
bank serving privately held
businesses

A consumer bank start up, set
up as a division of Customers
Bank, serving millennials,
middle income families and
underbanked throughout the
United States

Customers Bank Overview

$7.6 bn Business Bank with 21 sales offices with
target market from Boston to Philadelphia

Operating in key Mid-Atlantic and Northeast
markets

§ Greater New York City area (Westchester County,
Manhattan and Melville)

§ Philadelphia area (Bucks, Berks, Chester, Delaware
and Philadelphia Counties in southeastern
Pennsylvania and Greater Princeton area in New
Jersey)

§ Greater Boston area (Boston, Providence and
Portsmouth, NH)

“High-touch, supported with high-tech” value
proposition

§ Very experienced teams using “Single Point of
Contact” model

§ Provides exceptional customer service supported by
state-of-the-art technology support

§ Risk based incentive compensation plans supported
by P&L statements created by teams

Branches and Loan Production Offices

Our Competitive Advantage: A Highly Experienced Management Team

Investment Proposition

Strong Organic Growth, Well Capitalized, Branch Lite Bank in Attractive Markets

§ $7.6 billion asset bank with only 21 sales offices

§ Well capitalized at 11.1% total risk based capital (estimated), 7.4% tier 1 leverage, and 6.1% tangible equity to tangible assets

§ Target market from Boston to Philadelphia along Interstate 95

Strong Core Profitability, Growth & Efficient Operations

§ Q2 2015 core diluted earnings per share up 41% over Q2 2014 with a core ROA of .87% and a core ROE of 12.5%

§ Q2 2015 core net income of $14.9 million up 46% over Q2 2014

§ ROA goal of ~1% + and ROE of 12% + within 2-3 years, ROE goal already achieved

§ DDA and total deposits compounded annual growth of 83% and 68% respectively since 2009

§ Q2 2015 net interest margin was 2.73%

§ Operating efficiencies offset tighter margins and generate sustainable profitability

§ Q2 2015 efficiency ratio was 48.4%

Strong Credit Quality & Low Interest Rate Risk

§ 0.16% non-performing loans at June 30, 2015

§ Total core reserves to non-performing loans of 313.1%

§ Minimal risk of margin compression from modestly higher short term rates and flatter curve

Attractive Valuation

§ Current share price, as of June 30, 2015 $26.89 is 13.4x estimated 2015 core earnings

§ Price/tangible book only 1.5x estimated for year end 2015 core tangible book value

§ Peers, by size, trading at 14x LTM earnings and 1.7x price/tangible book; Peers with unique models trading at much higher
multiples

§ June 30, 2015 core tangible book value of $17.42, up 98% since July 2009 with a CAGR of 13%

• Non-GAAP core results including profitability measures, earnings, credit quality measures and valuation metrics exclude
the $6.0 million specific reserve for a potential fraudulent loan (see GAAP to non-GAAP core reconciliation on page 35).

Customers Bank

Executing On Our Unique High Performing

Banking Model

Disciplined Model for Increasing Shareholder Value

§ Strong organic revenue growth + scalable infrastructure =
sustainable double digit EPS = growth and increased shareholder
value

§ A very robust risk management driven business strategy

§ Build tangible book value per share each quarter via earnings

§ Any book value dilution from any acquisitions must be overcome
within 1-2 years; otherwise stick with organic growth strategy

§ Superior execution through proven management team

Disciplined Model for Superior Shareholder Value Creation

Execution Timeline

§ We invested in and
took control of a $270
million asset
Customers Bank (FKA
New Century Bank)

§ Identified existing
credit problems,
adequately reserved
and recapitalized the
bank

§ Actively worked out
very extensive loan
problems

§ Recruited experienced
management team

§ Enhanced credit and risk
management

§ Developed infrastructure
for organic growth

§ Built out warehouse
lending platform and
doubled deposit and loan
portfolio

§ Completed 3 small
acquisitions:

– ISN Bank (FDIC-
assisted) ~ $70 mm

– USA Bank (FDIC-
assisted) ~ $170 mm

– Berkshire Bancorp
(Whole bank) ~ $85
mm

§ Recruited proven lending
teams

§ Built out Commercial and
Multi-family lending
platforms

§ De Novo expansion;4-6
sales offices or teams
added each year

§ Continue to show strong
loan and deposit growth

§ Built a “branch lite” high
growth Community Bank
and model for future
growth

§ Goals to ~12%+ ROE;
~1% ROA

2009

Assets: $350M

Equity: $22M

2010-2011

Assets: $2.1B

Equity: $148M

2012-2013

Assets: $4.2B

Equity: $387M

Q2 2015

Assets: $7.6B

Core Equity: $527M

Core ROE: 12.5%

§ Single Point of Contact
Banking model executed -
commercial focus

§ Continued recruitment of
experienced teams

§ Introduce bankmobile -
banking of the future for
consumers

§ Continue to show strong
loan and deposit growth

§ ~12%+ ROE; ~1% ROA
expected within 36
months

§ ~$6.5+ billion asset bank
by end of 2014

§ ~$9 billion asset bank by
end of 2017

Non-GAAP core results including profitability measures, earnings, equity, credit quality measures and valuation metrics exclude the $6.0 million
specific reserve for a potential fraudulent loan (see GAAP to non-GAAP core reconciliation on page 35)

Banking Strategy - Customers Bank

Business Banking Focus - ~95% of revenues come from business segments

• Loan and deposit business through these segments:

• Banking Privately Held Businesses

• Banking High Net Worth Families

• Banking Privately Held Mortgage Companies

• Selected Commercial Real Estate

All Consumer
Products

All Business
Products

All Non-Credit
Products

Client
Makes
One Call

Client

Private /
Personal
Bankers

Concierge
Bankers

Single Point of Contact

High Touch / High Tech

Results in: Organic Growth of Deposits with Controlled Costs

Total Deposit Growth ($mm)

Average DDA Growth ($mm)

Customers strategies of single point of contact and recruiting known teams in target markets produce
rapid deposit growth with low total cost

Lending Strategy

High Growth with Strong Credit Quality

§Continuous recruitment and retention of high quality teams

§Centralized credit committee approval for all loans

§Loans are stress tested for higher rates and a slower economy

§No losses on loans originated since new management team took over

§Creation of solid foundation for future earnings

Source: Company documents.

NPL

Source: SNL Financial, Company documents. Peer data consists of Northeast and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insured banks.
Peer and Industry data as of March 31, 2015.

Build an Outstanding Loan Quality Portfolio

Charge Offs

Customers non-performing loans at June 2015 excluding loans guaranteed by the FDIC were 0.12% of total loans.

Asset Quality Indicators Continue to Improve

C&I & Owner Occupied CRE Banking Strategy

Private & Commercial Banking

§Target companies with up to $100 million
annual revenues

§Very experienced teams

§Two new teams with 10 professionals added
year to date

§Single point of contact

§NE, NY, PA & NJ markets

Small Business

§Target companies with less than $5.0 million
annual revenue

§Principally SBA loans originated by small
business relationship managers or branch
network

§Current focus PA & NJ markets. Expanding
to National Markets

Banking Privately Held Business

C&I / Owner Occupied CRE Loan and Deposit
Growth ($mm)

Source: Company documents.

Multi-Family Banking Strategy

Banking High Net Worth Families

Multi-Family Loan and Deposit Growth ($mm)

§ Focus on families that have income
producing real estate in their portfolios

§ Private banking approach

§ Focus Markets: New York & Philadelphia
MSAs

§ Average Loan Size: $4.0 - $5.0 million

§ Remote banking for deposits and other
relationship based loans

§ Portfolio grown organically from a start up
with very experienced teams hired in the
past 3 years

§ Strong credit quality niche

§ Interest rate risk managed actively

Source: Company documents.

Mortgage Warehouse Banking Strategy

§Private banking focused on mortgage
companies with $5 to $10 million equity

§Very strong credit quality relationship
business with good fee income and deposits

§~75 strong warehouse clients

§All outstanding loans are variable rate and
classified as held for sale

§All deposits are non-interest bearing DDA’s

§Balances rebounding from 2013 low and
expected to stay at this level

Banking Mortgage Companies

Mortgage Warehouse Banking Loan and Deposit
Growth ($mm)

Source: Company documents.

Staff Expense Ratio

Build Efficient Operations

Source: SNL Financial, Company documents. Peer data consists of Northeast, and Mid-Atlantic banks and thrifts with assets between $3.0 billion and $8.0 billion. Industry data includes all FDIC insured banks.
Peer and Industry data as of March 31, 2015.

Occupancy Expense Ratio

Total Costs as a % of Assets

Total Revenue per Employee ($000s)

Assets per Employee ($mm)

Deposit, Lending and Efficiency Strategies Results in
Disciplined & Profitable Growth

Core Revenue ($mm)

Core Net Income ($mm) (1)

(2) CAGR calculated from Dec-09 to June 2015 (annualized).

(3) Non-GAAP core results including profitability measures, earnings, credit quality measures and valuation metrics exclude the $6.0 million specific reserve for a potential fraudulent
loan (see GAAP to non-GAAP core reconciliation on page 35).

Net Interest Income ($mm)

• Strategy execution has produced superior growth in revenues and core earnings

Income / Expense Growth ($mm)

Customers Bank

Risk Management

Elements of an Effective Risk Management Program

ERM Framework at Customers Bancorp, Inc.

Well Defined ERM Plan - ERM Integration into CAMELS +++++

Current Banking Environment and
How We are Positioned

What We See as The Role of CEO and Board …
Especially in this Environment

1. Absolute clarity of your vision, strategy, goals and tactics;
there must be absolute alignment between board and
management

2. Become a master of your internal environment

§ Our authentic internal assessment of strengths,
weaknesses and opportunities

3. Be a master of your external environment

§ What is happening with customer trends, technology,
competition, economy, regulatory environment, etc. -
How does this impact us?

4. Highest level of integrity and fairness in all we do

5. Passion for continuous improvement

Banking Industry Trends……

How Do We Deal with These Issues

Impediments to Growth

External Forces

• Role of traditional bank branches
changing very rapidly

• Mobile banking fastest growing channel

• Banks of all sizes revisiting their
business strategies, revenue generation
models and cost structures

• Technology & customer needs, desires
and style changing rapidly

• Traditional CRE lending very difficult to do

• Very little consumer loan growth;
headwinds for consumer credit quality

• Growth exists only at niche players

• Mortgage banking revenues are
extremely volatile

• Pressure to reduce or eliminate Overdraft
and other nuisance fees by CFPB

• Regulators have no appreciation or
incentive to see banks grow profitability

Business Issues

Shareholder Expectations

• Start bank and sell at 2 to 3x book no
longer an option - what do shareholders of
small privately held banks do?

• Equity markets not available to small
banks

• Banks need to earn 10% or more ROE if
they want to remain independent

• Consistent ROE of 12% or greater and
ROA of 1% or greater being rewarded well
by market

• Slow economic growth

• Low good quality consumer and business
loan demand

• Pressure continues on margin. Days of
3.5%-4.0% margin are gone. Banks need
to reduce efficiency ratios

• Difficult to attract good talent

• Very difficult and inconsistent regulatory
environment

• Shareholders want 10%+ ROE, consistent
quality growth and strong risk
management infrastructure

Issues facing
Boards &
CEO’s

What is our unique strategy
for revenue and profitable
growth

How do we attract and retain
best talent?

How do we take advantage of
technology?

How do we deal with growing
compliance burden?

How do we manage our risks
better than peers?

How do we lower our
efficiency ratios?

§ Innovator / disruptor / not
branch dependent

§ Differentiated / Unique model

§ Technology savvy

Our Thesis on Current

U.S. Banking Environment

Credit Improving - Though Banks Face a Number of Operational Headwinds

§ Credit Improving

§ Quality Asset Generation Remains A Challenge

4 Banks are starved for interest-earning assets and exploring new asset classes, competing on price and looking into specialty finance business / lending

§ NIM Compression

4 Low rate environment for the foreseeable future will continue to compress NIM

4 Many institutions wither betting on rates or otherwise taking excessive interest rate risk

4 Industry NIM continues to decline

4 Down over 100 bps since 1995

4 Low interest rate environment, competitive pressures likely to prevent return to historical levels

§ Operational leverage

4 Expense management is top of mind as banks try to improve efficiency in light of revenue pressure and increased regulatory / compliance costs

4 Regulatory pressure expected to stay robust

§ New Strategies

4 Yesterdays strategies may not be appropriate tomorrow

Critical to Have a Winning Business Model

§ Heavy branch based delivery
system

§ Strong credit quality

§ Core deposits

§ Dependent on OD fees

§ Expense management

Traditional Banks

§ Diversified revenue sources

§ Cross sell strength

§ Capital efficiency

Fee Income Leaders

Relationship & Innovative
Banks

Source: SNL Financial.

1Includes data for top 50 U.S. banks by assets.

Our Approach to Developing a Winning Business

Model

1. Must focus on both “Relationship” or “High Touch” banking combined with
“Highly Efficient” or “High Tech”. Strategy should be unique as to not be copied
easily

2. Attract and retain best high quality talent. Business Bankers / Relationship
Bankers with approximately 15 years+ experience who bring a book of business
with them

3. Compensate leaders based upon risk and profitability with both cash and equity

4. Never deviate from following critical success factors

• Only focus on very strong credit quality niches

• Have very strong risk management culture

• Have significantly lower efficiency ratio than peers to deliver sustainable
strong profitability and growth with lower margin and lower risk profile

• Always attract and retain top quality talent

• Culture of innovation and continuous improvement

Startling Facts about Banks

§ Banks each year charge $32 billion in overdraft fees - that’s
allowing or creating over 1 billion overdrafts each year….Why??

§ Payday lenders charge consumers another $7 billion in fees

§ That’s more than 3x what America spends on Breast Cancer and
Lung Cancer combined

§ This is about 50% of all America spends on Food Stamps

§ Some of banking industries most profitable consumer customers
hate banks

§ Another estimated 25% consumers are unbanked or under banked

This should not be happening in America

We hope to start, in a small way, a new revolution
to profitably address this problem

§ New no fee banking, 25 bps higher interest savings, line of credit, 55,000 ATM’s, Personal
Banker and more, all in the palm of your hand

§ Marketing Strategy

§ Target technology dependent younger consumers; including underserved /
underbanked and middle income Americans

§ Capitalize on retaining at least 25% of our ~ one million student customers over a 5
year period

§ Reach middle income markets also through Affinity Banking Groups

§ Revenue generation from debit card interchange and margin from low cost core
deposits

§ Durbin Amendment a unique opportunity for Bank Mobile

§ Total investment not to exceed about $6.0 million by end of 2015

§ Expected to achieve profitability in 2-3 years and above average, franchise value, ROA and
ROE within 5 years

Creating a Virtual Bank
for the Future for Consumers

Core Tangible BV per Share

Building Customers to Provide Superior Returns to
Investors

Recent Core Performance Results

Financial Performance Targets

Earnings per Share Guidance / Valuation Multiples

Summary

§ Strong high performing $7.6 billion bank with significant growth opportunities

§ Very experienced management team delivers strong results

§ Ranked #1 overall by Bank Director Magazine in the 2012 and 2013 Growth
Leader Rankings

§ “High touch, high tech” processes and technologies result in superior growth,
returns and efficiencies

§ Shareholder value results from the combination of increasing tangible book, ROE
and strong and consistent earnings growth

§ Attractive risk-reward: growing several times faster than industry average but
yet trading at a significant discount to peers

§ Building the first real mobile bank in the palm of your hand for consumers in the
U.S.

Contacts

Company:

Robert Wahlman, CFO

Tel: 610-743-8074
rwahlman@customersbank.com

www.customersbank.com

Jay Sidhu

Chairman & CEO

Tel: 610-301-6476
jsidhu@customersbank.com

www.customersbank.com

Investor Relations:

Ted Haberfield

President, MZ North America

Tel: 760-755-2716

thaberfield@mzgroup.us

www.mzgroup.us

Appendix

Non GAAP Reconciliation

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)

Reconciliation of GAAP Net Income to Core Earnings
(amounts in thousands)	Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Net Income		Diluted EPS		Net Income		Diluted EPS

GAAP net income available to common shareholders	$	11,049	$	0.39	$	25,001	$	0.88
After-tax effect of the $6.0 million specific allowance	3,870		0.13		3,870		0.14
Core Earnings	$	14,919	$	0.52	$	28,871	$	1.02

Weighted average shares			28,681				28,522

Reconciliation of GAAP to Non-GAAP Financial Metrics
(amounts in thousands)	Three Months Ended June 30, 2015
	GAAP Amounts			Reconciling Item			Non-GAAP Amounts
Net Income	$	11,556		$	3,870		$	15,426
Average Total Assets	7,110,199			43			7,110,242
Average Equity	496,557			43			496,660

Return on Average Assets	0.65		%	0.22		%	0.87		%
Return on Average Equity	9.33		%	3.13		%	12.46		%

Income Statement

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED - UNAUDITED
(Dollars in thousands, except per share data)
	Q2			Q1		Q2
	2015			2015		2014
Interest income:
Loans receivable, including fees	$	42,801		$	43,093	$	35,220
Loans held for sale	13,522			10,900		6,715
Investment securities	2,253			2,363		2,543
Other	1,107			2,362		614
Total interest income	59,683			58,718		45,092

Interest expense:
Deposits	8,145			7,526		5,727
Other borrowings	1,496			1,488		1,184
FHLB Advances	1,799			1,689		1,141
Subordinated debt	1,685			1,685		110
Total interest expense	13,125			12,388		8,162
Net interest income	46,558			46,330		36,930
Provision for loan losses	9,335			2,964		2,886
Net interest income after provision for loan losses	37,223			43,366		34,044

Non-interest income:
Mortgage warehouse transactional fees	2,799			2,273		2,215
Mortgage loan and banking income	287			151		1,554
Bank-owned life insurance income	1,169			1,061		836
Gain on sale of loans	827			1,231		572
Gain (loss) on sale of investment securities	(69		)	—		359
Deposit fees	247			179		212
Other	1,133			838		1,163
Total non-interest income	6,393			5,733		6,911

Non-interest expense:
Salaries and employee benefits	14,448			13,952		11,591
FDIC assessments, taxes, and regulatory fees	995			3,278		3,078
Occupancy	2,199			2,101		1,911
Professional services	2,792			1,913		1,881
Technology, communication and bank operations	2,838			2,531		2,305
Other real estate owned expense (income)	(580		)	884		890
Loan workout expense (income)	(13		)	269		477
Advertising and promotion	429			347		428
Other	2,552			2,190		2,644
Total non-interest expense	25,660			27,465		25,205
Income before tax expense	17,956			21,634		15,750
Income tax expense	6,400			7,682		5,517
Net income	11,556			13,952		10,233
Preferred stock dividend	507			—		—
Net income available to common shareholders	$	11,049		$	13,952	$	10,233

Basic earnings per share	$	0.41		$	0.52	$	0.38
Diluted earnings per share	0.39			0.49		0.37

Income Statement

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED - UNAUDITED
(Dollars in thousands, except per share data)
	June 30,			June 30,
	2015			2014
Interest income:
Loans receivable, including fees	$	85,894		$	63,576
Loans held for sale	24,422			11,798
Investment securities	4,616			5,583
Other	3,469			1,011
Total interest income	118,401			81,968

Interest expense:
Deposits	15,671			11,142
Other borrowings	2,984			2,340
FHLB Advances	3,488			1,637
Subordinated debt	3,370			126
Total interest expense	25,513			15,245
Net interest income	92,888			66,723
Provision for loan losses	12,299			7,253
Net interest income after provision for loan losses	80,589			59,470

Non-interest income:
Mortgage warehouse transactional fees	5,072			3,974
Mortgage loan and banking income	438			1,963
Bank-owned life insurance income	2,230			1,670
Gain on sale of loans	2,058			571
Gain (loss) on sale of investment securities	(69		)	3,191
Deposit fees	426			426
Other	1,971			2,425
Total non-interest income	12,126			14,220

Non-interest expense:
Salaries and employee benefits	28,400			20,942
FDIC assessments, taxes, and regulatory fees	4,273			5,209
Occupancy	4,300			3,942
Professional services	4,705			4,163
Technology, communication and bank operations	5,369			4,470
Other real estate owned expense	304			1,242
Loan workout	256			918
Advertising and promotion	776			843
Other	4,742			4,642
Total non-interest expense	53,125			46,371
Income before tax expense	39,590			27,319
Income tax expense	14,082			8,945
Net income	25,508			18,374
Preferred stock dividend	507			—
Net income available to common shareholders	$	25,001		$	18,374

Basic earnings per share	$	0.93		$	0.69
Diluted earnings per share	0.88			0.66

Balance Sheet

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands, except per share data)
	June 30,			December 31,			June 30,
	2015			2014			2014
ASSETS
Cash and due from banks	$	44,064		$	62,746		$	48,521
Interest-earning deposits	347,525			308,277			217,013
Cash and cash equivalents	391,589			371,023			265,534
Investment securities available for sale, at fair value	373,953			416,685			425,061
Loans held for sale	2,030,348			1,435,459			1,061,395
Loans receivable	4,524,825			4,312,173			3,644,104
Allowance for loan losses	(37,491		)	(30,932		)	(28,186		)
Total loans receivable, net of allowance for loan losses	4,487,334			4,281,241			3,615,918
FHLB, Federal Reserve Bank, and other restricted stock	78,148			82,002			75,558
Accrued interest receivable	15,958			15,205			11,613
FDIC loss sharing receivable	—			2,320			8,919
Bank premises and equipment, net	11,453			10,810			11,075
Bank-owned life insurance	155,940			138,676			106,668
Other real estate owned	13,319			15,371			12,885
Goodwill and other intangibles	3,658			3,664			3,670
Other assets	55,943			52,914			37,432
Total assets	$	7,617,643		$	6,825,370		$	5,635,728

LIABILITIES AND SHAREHOLDERS' EQUITY
Demand, non-interest bearing	$	584,380		$	546,436		$	555,936
Interest-bearing deposits	4,892,777			3,986,102			3,134,958
Total deposits	5,477,157			4,532,538			3,690,894
FHLB advances	1,388,000			1,618,000			1,301,500
Other borrowings	88,250			88,250			88,250
Subordinated debt	110,000			110,000			112,000
Accrued interest payable and other liabilities	30,735			33,437			29,344
Total liabilities	7,094,142			6,382,225			5,221,988

Preferred Stock	55,569			—			—
Common stock	27,402			27,278			27,262
Additional paid in capital	359,455			355,822			353,371
Retained earnings	93,422			68,421			43,581
Accumulated other comprehensive loss	(4,114		)	(122		)	(2,220		)
Treasury stock, at cost	(8,233		)	(8,254		)	(8,254		)
Total shareholders' equity	523,501			443,145			413,740
Total liabilities & shareholders' equity	$	7,617,643		$	6,825,370		$	5,635,728

Net Interest Margin

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands, except per share data)
	Six Months Ended June 30,
	2015			2014
	Average Balance		Average yield or cost (%)	Average Balance		Average yield or cost (%)
Assets
Interest earning deposits	$	286,945	0.25	$	199,069	0.25
Investment securities	395,401		2.33	482,290		2.32
Loans held for sale	1,530,938		3.22	672,308		3.54
Loans receivable	4,383,102		3.95	3,195,396		4.01
Other interest-earning assets	76,453		8.19	51,108		3.01
Total interest earning assets	6,672,839		3.58	4,600,171		3.59
Non-interest earning assets	272,937			211,368
Total assets	$	6,945,776		$	4,811,539

Liabilities
Total interest bearing deposits (1)	$	4,260,980	0.74	$	2,906,457	0.77
Borrowings	1,491,598		1.33	863,267		0.95
Total interest-bearing liabilities	5,752,578		0.89	3,769,724		0.81
Non-interest-bearing deposits (1)	689,047			625,847
Total deposits & borrowings	6,441,625		0.80	4,395,571		0.70
Other non-interest bearing liabilities	29,089			14,134
Total liabilities	6,470,714			4,409,705
Shareholders' equity	475,062			401,834
Total liabilities and shareholders' equity	$	6,945,776		$	4,811,539

Net interest margin			2.81			2.92
Net interest margin tax equivalent			2.81			2.93

(1) Total costs of deposits (including interest bearing and non-interest bearing) were 0.64% and 0.64% for the six months ended June 30, 2015 and 2014, respectively.

Net Interest Margin

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands, except per share data)
	Three Months Ended June 30,
	2015			2014
	Average Balance		Average yield or cost (%)	Average Balance		Average yield or cost (%)
Assets
Interest earning deposits	$	290,241	0.26	$	211,438	0.25
Investment securities	384,324		2.34	448,059		2.27
Loans held for sale	1,692,622		3.20	776,919		3.47
Loans receivable	4,404,304		3.90	3,544,859		3.98
Other interest-earning assets	77,822		4.75	64,063		3.01
Total interest earning assets	6,849,313		3.49	5,045,338		3.58
Non-interest earning assets	260,886			202,651
Total assets	$	7,110,199		$	5,247,989

Liabilities
Total interest bearing deposits (1)	$	4,399,164	0.74	$	3,065,597	0.75
Borrowings	1,511,481		1.32	1,171,766		0.83
Total interest bearing liabilities	5,910,645		0.89	4,237,363		0.77
Non-interest bearing deposits (1)	669,411			585,370
Total deposits & borrowings	6,580,056		0.80	4,822,733		0.68
Other non-interest bearing liabilities	33,586			16,622
Total liabilities	6,613,642			4,839,355
Shareholders' equity	496,557			408,634
Total liabilities and shareholders' equity	$	7,110,199		$	5,247,989

Net interest margin			2.73			2.93
Net interest margin tax equivalent			2.73			2.94

(1) Total costs of deposits (including interest bearing and non-interest bearing) were 0.65% and 0.63% for the three months ended June 30, 2015 and 2014, respectively.

Asset Quality

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
Asset Quality as of June 30, 2015 (Unaudited)
(Dollars in thousands, except per share data)
	Total Loans		Non Accrual /NPLs		Other Real Estate Owned		Non Performing Assets (NPAs)		Allowance for loan losses		Cash Reserve		Total Credit Reserves		NPLs / Total Loans		Total Reserves to Total NPLs
Loan Type
New Century Originated Loans
Legacy	$	46,580	$	2,158	$	3,327	$	5,485	$	1,676	$	—	$	1,676	4.63	%	77.66	%
Troubled debt restructurings (TDRs)	2,052		881		—		881		5		—		5		42.93	%	0.57	%
Total New Century Originated Loans	48,632		3,039		3,327		6,366		1,681		—		1,681		6.25	%	55.31	%

Originated Loans
Multi-Family	2,232,273		—		—		—		8,734		—		8,734		—	%	—	%
Commercial & Industrial (1)	792,701		1,173		618		1,791		13,476		—		13,476		0.15	%	1,148.85	%
Commercial Real Estate- Non-Owner Occupied	840,922		271		—		271		3,335		—		3,335		0.03	%	1,230.63	%
Residential	105,332		9		—		9		1,722		—		1,722		0.01	%	—	%
Construction	68,073		—		—		—		844		—		844		—	%	—	%
Other Consumer	347		—		—		—		11		—		11		—	%	—	%
TDRs	543		—		—		—		5		—		5		—	%	—	%
Total Originated Loans	4,040,191		1,453		618		2,071		28,127		—		28,127		0.04	%	1,935.79	%

Acquired Loans
Covered	25,329		2,710		8,877		11,587		506		—		506		10.70	%	18.67	%
Non-Covered	354,426		817		497		1,314		290		1,556		1,846		0.23	%	225.95	%
TDRs Covered	526		—		—		—		—		—		—		—	%	—	%
TDRs Non-Covered	6,926		2,537		—		2,537		—		—		—		36.63	%	—	%
Total Acquired Loans	387,207		6,064		9,374		15,438		796		1,556		2,352		1.57	%	38.79	%

Acquired Purchased Credit-impaired Loans
Covered	5,834		—		—		—		1,114		—		1,114		—	%	—	%
Non-Covered	42,031		—		—		—		5,773		—		5,773		—	%	—	%

Total Acquired Purchased Credit-impaired Loans	47,865		—		—		—		6,887		—		6,887		—	%	—	%
Deferred Origination Fees/Unamortized Premium/Discounts, net	930		—		—		—		—		—		—		—	%	—	%
Total Loans Held for Investment	4,524,825		10,556		13,319		23,875		37,491		1,556		39,047		0.23	%	369.90	%
Total Loans Held for Sale	2,030,348		—		—		—		—		—		—		—	%	—	%
Total Portfolio	$	6,555,173	10,556		13,319		23,875		37,491		1,556		39,047		0.16	%	369.90	%

Customers Bancorp, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 23, 2015

Attached files

Customers Bancorp, Inc. Reports