Bancorp reports second quarter results

WEST READING – Customers Bancorp Inc. reported quarterly basic earnings of $59.4 million, or $1.77 per diluted share, up just 0.177% from the same period last year. For comparison, quarterly base earnings excluding Paycheck Protection Program (PPP) were $46.3 million for the quarter, or $1.38 per diluted share, up 32.3% from compared to Q2 2021.

The West Reading-based bank released its second quarter earnings statement after the close of trading on Wednesday July 27.

Net income of $56.5 million, or $1.68 per diluted share, for the second quarter of fiscal 2022. This represents a decrease of 2.6% compared to the same period last year.

“We continued to perform well in the second quarter and are extremely pleased with our results for the first half of 2022,” Customers Bancorp President and CEO Jay Sidhu said in a call with investors Thursday, 28 July. macro and geopolitical environment, we remain focused on the execution of our strategy which has not changed.

Sidhu added that customer base loans increased by $2.2 billion in the second quarter, up 18.7% from the first quarter of 2022, and well above the average quarterly target of 500. million dollars from the financial institution.

“Almost all of this growth was in the low-risk specialty lending verticals and was mostly floating rate as clients as we manage the overall asset sensitivity,” he said.

Asset quality remains exceptional and credit reserves are strong, according to Sidhu.

“Building on the momentum of record performance in 2021 and strong results in the first half of 2022, our lending and deposit pipelines remain strong, a testament to our client-centric business model supported by best-in-class service and technology. . We remain very excited and optimistic about our future,” added Sidhu.

Year-over-year loan growth (excluding PPP loans and loans to mortgage companies) was $4.4 billion or 56.6%, driven by lower-risk specialty lending verticals Variable Rate Customers, the company said. Year-over-year commercial and industrial (C&I) loans and leases grew, including specialty loans, by $3.3 billion (up 145.8%), loan growth multifamily loans of $515.4 million (up 34.4%) and an increase in consumer loans of $500.8 million (up 26.2%).

“We have capitalized on the momentum created over the past two quarters and delivered responsible industry-leading lending growth through variable rate lending and low-risk specialty lending verticals, which diversifies and strengthens our franchise,” Sam Sidhu, president and chief executive of Customers Bank, said on the Thursday morning call.

Sam Sidhu, President and CEO of Customers Bank.  (WITH THE AUTHORIZATION OF THE CUSTOMERS' BANK)
Sam Sidhu, President and CEO, Customers Bank. (Courtesy of Customer Bank)

Total demand deposits increased by $4.4 billion, or 64.0% year over year. This increase includes CBIT-related deposits with a balance of $2.1 billion as of June 30, 2022, up $0.3 billion from March 31, 2022.

Regarding Customers Bank’s Instant Token platform, Sam Sidhu said on Thursday that the company “continues to scale our business at a much higher rate than we anticipated.”

Customers fully launched Customers Bank Instant Token on the TassatPay payment platform in January, following a pre-launch in Q4 2021. In Q2, a total of 90 new customers signed up for digital banking, bringing the total number of customers at 190.

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