Market Overview

Customers Bancorp Reports Record Earnings: Q3 2016 EPS up 28% Over Q3 2015, and First Nine Months of 2016 EPS up 32% Over First Nine Months of 2015

Share:

WYOMISSING, PA --(Marketwired - October 26, 2016) -



-- Record Q3 2016 Fully Diluted Earnings Per Share (EPS) of $0.64, Up 28.0%
Over Q3 2015 Fully Diluted EPS
-- Record Q3 2016 Net Income to Common Shareholders of $18.6 Million, Up
30.3% Over Q3 2015, with Return on Average Assets of 0.9% and Return on
Average Common Equity of 13.2%
-- Record Nine Months of 2016 Net Income to Common Shareholders of $52.4
Million, Up 33.3% Over Nine Months of 2015
-- Exceptional Asset Quality with NPLs only 0.16% of Total Loans; NPAs only
0.18% of Total Assets
-- Strong Reserves for Loan Losses With Total Reserves Equal to 288% of
NPLs
-- Non-Interest Bearing Deposits Up Over $300 Million, or 39%, Over Q3 2015
to $1.1 Billion, And Total Deposits Up Over $1.6 Billion, or 28%, Over
September 30, 2015 to $7.4 Billion
-- Non-Interest Income For Q3 2016 of $27.5 Million Was 30% of Q3 2016
Total Revenues (Net Interest Income Plus Non-Interest Income)
-- Shareholders' Equity Increased $109 Million During Q3 2016; Tier 1
Leverage Ratio Is Up Over 102 Basis Points at September 30, 2016 Over
June 30, 2016, An Increase of 14.2%
-- September 30, 2016 Book Value of $20.78 Up From $17.95 as of September
30, 2015, a 15.8% Increase; September 30, 2016 Tangible Book Value (a
non-GAAP measure) of $20.16 Up From $17.81 as of September 30, 2015, a
13.2% Increase



Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively "Customers"), reported net income to common shareholders of $18.6 million for the third quarter of 2016 ("Q3 2016") compared to net income to common shareholders of $14.3 million for the third quarter of 2015 ("Q3 2015"), an increase of $4.3 million, or 30.3%. Fully diluted earnings per share for Q3 2016 was $0.64 compared to $0.50 fully diluted earnings per share for Q3 2015, an increase of $0.14 per share, or 28.0%. Average fully diluted shares for Q3 2016 were 29.1 million compared to average fully diluted shares of 28.7 million for Q3 2015.

Customers also reported net income to common shareholders of $52.4 million for the first nine months of 2016 compared to net income to common shareholders of $39.3 million for the first nine months of 2015, an increase of $13.1 million, or 33.3%. Fully diluted earnings per share for the first nine months of 2016 was $1.81 compared to $1.37 for the first nine months of 2015, an increase of 32.1%.

Customers' Community Business Banking segment generated net income available to common shareholders of $19.8 million in Q3 2016, and Customers' BankMobile segment generated a Q3 2016 net loss of $1.2 million.

"Customers is pleased to report record earnings for the third quarter and first nine months of 2016. Our Community Business Banking segment delivered to our customers through a single point of contact has produced a very profitable banking model characterized by exceptional asset quality, balanced interest rate risk sensitivity and controlled operating costs. The new BankMobile segment which combined our previous BankMobile business with the Disbursements business we acquired from Higher One is off to a better than expected start performing above our high expectations. Since the acquisition of the Disbursements business, BankMobile has already opened over 200,000 new checking accounts, has migrated over 300,000 accounts at the student account holder's election from a prior business partner of Higher One, and has helped increase non-interest bearing deposit balances to over $1 billion as of September 30, 2016," stated Jay Sidhu, Chairman and CEO of Customers. "We are pleased by the Q3 2016 performance of BankMobile."

Other financial highlights for Q3 2016 compared to Q3 2015 include:



-- Q3 2016 net interest income of $64.6 million increased $14.7 million, or
29.3%, from net interest income for Q3 2015 as average loan and security
balances increased $2.0 billion. Net interest margin expanded by 4 basis
points to 2.83% from 2.79% in Q3 2015.
-- Commercial loan average balances increased $975 million, including
commercial loans to mortgage companies, in Q3 2016 compared to Q3
2015.
-- Multi-family average loan balances increased $928 million in Q3 2016
compared to Q3 2015.
-- The net interest margin grew to 2.83% in Q3 2016 compared to Q3 2015
as the average yield on assets increased 13 basis points, while the
cost of funding the portfolio increased 11 basis points.
-- Customers reported a $0.1 million provision for loan losses in Q3 2016
compared to a $2.1 million provision for loan losses in Q3 2015 as loan
balances increased as planned only $3.0 million during Q3 2016 and asset
quality remained exceptional.
-- Q3 2016 non-interest income of $27.5 million increased $21.3 million
from Q3 2015 as a result of an increase of $11.4 million in interchange
and card revenue, an increase of $4.0 million in deposit and wire
transfer fees, an increase of $1.0 million in university fees, and a
$2.2 million recovery of a previously recorded loss. The interchange and
card revenue, deposit and wire transfer fee, and university fee
increases totaled $16.4 million at BankMobile.
-- Non-interest expenses in Q3 2016 of $56.2 million increased $25.9
million, or 85.5%, from non-interest expenses in Q3 2015 as a result of
increases in technology costs of $10.1 million, salaries and employee
benefits of $7.7 million, and professional services of $4.3 million.
These increases resulted largely from increased operating costs for
BankMobile of $17.5 million and increases in resources and services
necessary to support and operate a $9.6 billion bank. In addition, Q3
2016 non-interest expenses include a $3.9 million one-time expense for
technology-related services.
-- Customers' Q3 2016 income tax expense of $14.6 million reflects an
estimated effective tax rate of 40.8% compared to Q3 2015 tax expense of
$8.4 million, with an effective tax rate of 35.5%. Customers' Q3 2016
results included an adjustment of $0.8 million that increased income tax
expense as a result of a return to provision adjustment recorded upon
filing Customers' 2015 tax return during Q3 2016.
-- Customers achieved a return on average assets of 0.89% in Q3 2016
compared to 0.82% in Q3 2015, and achieved a return on average common
equity of 13.20% in Q3 2016 compared to 11.83% in Q3 2015. Pre-tax and
pre-provision return on average assets (a non-GAAP measure) reached
1.51% in Q3 2016. Pre-tax and pre-provision return on average common
equity (a non-GAAP measure) was 23.58% in Q3 2016.
-- Total loans, including commercial loans held for sale, increased $1.9
billion, or 29.6%, to $8.4 billion as of September 30, 2016 compared to
total loans as of September 30, 2015 of $6.5 billion. Multi-family loan
balances increased $0.7 billion to $3.2 billion and other commercial
loans, including lines of credit to mortgage companies, increased $1.3
billion to $4.9 billion. Weighted-average yields on loans in Q3 2016
were 3.84% with warehouse lending loans yielding 3.53%, multi-family
loans yielding 3.80% and other commercial loans yielding 4.07%.
-- Total deposits increased $1.6 billion, or 27.7%, to $7.4 billion as of
September 30, 2016 compared to total deposits of $5.8 billion as of
September 30, 2015. Non-interest bearing demand deposits were up by
$303.5 million to $1.1 billion, a 39.0% increase. Money market account
balances were up $607.1 million to $3.1 billion as of September 30, 2016
compared to September 30, 2015, a 24.0% increase, and certificates of
deposit accounts were up $640.9 million to $2.9 billion as of September
30, 2016, a 28.0% increase.
-- BankMobile-related deposits totaled $533.2 million as of September 30,
2016, and were predominately non-interest bearing.
-- The Q3 2016 efficiency ratio was 61.06% compared to a 54.00% Q3 2015
efficiency ratio. Q3 2016 operating expenses included acquisition
related expenses of $0.1 million and BankMobile operating expenses of
$19.4 million. Non-interest income included $16.4 million of BankMobile
non-interest income.
-- Customers Bancorp issued $85.0 million of non-cumulative perpetual
preferred stock paying a 6% dividend on September 16, 2016. The proceeds
from the capital raise were largely contributed to the subsidiary bank
to support Customers Bank's balance sheet growth and other general
corporate purposes. This capital raise combined with net income and no
asset growth increased our regulatory capital ratios by 1.0% or more
during Q3 2016.
-- Capital levels continue to exceed the "well-capitalized" threshold
established by regulation at the bank and exceed the applicable Basel
III regulatory thresholds for the holding company and the bank.
-- Customers raised common equity of $5.6 million during Q3 2016 through
the issuance of 219,386 shares of Customers Bancorp common stock through
an at-the-market ("ATM") offering launched in August 2016. The ATM
remains active.
-- Total Tier 1 equity for Customers Bancorp increased $235.3 million from
September 30, 2015 to September 30, 2016, an increase in capital of
43.8%.
-- The book value per common share continued to increase, reaching $20.78
at September 30, 2016, compared to $17.95 at September 30, 2015, an
increase of 15.8% year-over-year. The tangible book value per common
share (a non-GAAP measure) also continued to increase, reaching $20.16
at September 30, 2016, compared to $17.81 at September 30, 2015, an
increase of 13.2% year-over-year.
-- Based on Customers Bancorp, Inc.'s September 30, 2016 stock price of
$25.16, Customers is only trading at 1.2 times tangible book value per
common share and 10.3 times mid-point of estimated 2016 earnings per
share.





Q3 2016 compared to Q2 2016:
Customers' Q3 2016 net income to common shareholders increased $1.3 million, or 7.3%, to $18.6 million from net income to common shareholders of $17.4 million for the second quarter of 2016 ("Q2 2016"). The $1.3 million increase in Q3 2016 resulted primarily from increases in net interest income of $1.4 million to $64.6 million, a decrease in provisions for loan losses of $0.7 million to $0.1 million, an increase in non-interest income of $19.2 million to $27.5 million, partially offset by increased operating expenses of $18.0 million to $56.2 million, and a $1.6 million increase in income tax expense to $14.6 million. Examining these quarter-over-quarter changes further:



-- The $1.4 million increase in net interest income in Q3 2016 resulted
from an increase in average loan balances in Q3 2016 of $0.1 billion.
-- The $0.7 million decrease in provision for loan losses in Q3 2016
resulted primarily from planned lower loan growth in Q3 2016 to help
improve capital ratios, maintaining exceptional asset quality, and
increased recoveries on previously charged-off loans and purchased
credit-impaired loans.
-- The $19.2 million increase in non-interest income in Q3 2016 compared to
Q2 2016 resulted primarily from a $14.0 million increase in BankMobile
revenues due to the Disbursements business acquisition, a $2.2 million
recovery on a previously recorded loss, and an increase of $0.9 million
in gains on sales of loans in Q3 2016.
-- The increase in operating expenses of $18.0 million in Q3 2016 compared
to Q2 2016 resulted largely from BankMobile-related expenses of $19.4
million in Q3 2016 compared to $6.0 million in Q2 2016 and a $3.9
million one-time expense for technology-related services.



The following table presents a summary of key earnings and performance metrics for the quarter ended September 30, 2016 and the preceding four quarters, respectively:





CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
EARNINGS SUMMARY - UNAUDITED
----------------------------------------------------------------------------

(Dollars in
thousands,
except per-
share data)
Q3 Q2 Q1 Q4 Q3
2016 2016 2016 2015 2015
------------------------------------------------------------

Net income
available to
common
shareholders $ 18,637 $ 17,368 $ 16,413 $ 16,780 $ 14,309
Basic earnings
per common
share ("EPS") $ 0.68 $ 0.64 $ 0.61 $ 0.62 $ 0.53
Diluted EPS $ 0.64 $ 0.60 $ 0.57 $ 0.58 $ 0.50
Average common
shares
outstanding -
basic 27,367,551 27,080,676 26,945,062 26,886,694 26,872,787
Average common
shares
outstanding -
diluted 29,149,734 28,971,040 28,783,101 28,912,644 28,741,129
Shares
outstanding
period end 27,544,217 27,286,833 27,037,005 26,901,801 26,882,383

Return on
average assets 0.89% 0.84% 0.85% 0.91% 0.82%
Return on
average common
equity 13.20% 13.03% 12.85% 13.46% 11.83%
Return on
average assets
- pre-tax and
pre-provision
(1) 1.51% 1.44% 1.40% 1.60% 1.39%
Return on
average common
equity - pre-
tax and pre-
provision (2) 23.58% 23.38% 21.87% 24.35% 20.53%
Net interest
margin, tax
equivalent 2.83% 2.83% 2.88% 2.83% 2.79%
Efficiency
ratio 61.06% 53.47% 53.74% 50.11% 54.00%
Non-performing
loans (NPLs)
to total loans
(including
held-for-sale
loans) 0.16% 0.17% 0.20% 0.15% 0.27%
Reserves to
non-performing
loans 287.88% 268.98% 242.10% 341.71% 197.01%
Net charge-offs
(recoveries) $ 288 $ 1,060 $ (455)$ 4,322 $ 5,657

Tier 1 equity
to average
tangible
assets 8.19% 7.17% 7.15% 7.16% 7.27%
Tangible common
equity to
average
tangible
assets (3) 5.89% 5.71% 6.17% 6.37% 6.49%
Book value per
common share $ 20.78 $ 19.98 $ 19.22 $ 18.52 $ 17.95
Tangible book
value per
common share
(period end)
(4) $ 20.16 $ 19.35 $ 19.08 $ 18.39 $ 17.81
Period end
stock price $ 25.16 $ 25.13 $ 23.63 $ 27.22 $ 25.70






(1) Non-GAAP measure calculated as GAAP net income, plus provision for loan
losses and income tax expense divided by average total assets.
(2) Non-GAAP measure calculated as GAAP net income available to common
shareholders, plus provision for loan losses and income tax expense divided
by average common equity.
(3) Non-GAAP measure calculated as GAAP total shareholders' equity less
preferred stock and goodwill and other intangibles divided by total average
assets less average goodwill and other intangibles.
(4) Non-GAAP measure calculated as GAAP total shareholders' equity less
preferred stock and goodwill and other intangibles divided by common shares
outstanding at period end.




Capital

Customers recognizes the importance of not only being well capitalized in the current environment but to have adequate capital buffers to absorb any unexpected shocks. "Our capital ratios improved significantly during the quarter due to continued strong earnings, planned slow down in loan growth, a successful preferred stock offering, and launch of an at-the-market common equity offering," stated Mr. Sidhu. "We are targeting a Tier I capital ratio of 9.0% or higher and a total risk-based capital ratio of around 13.0% as we get ready to cross the $10 billion mark," Mr. Sidhu continued. At September 30, 2016, Customers is preliminarily calculating its Tier 1 leverage ratio at 8.2% and its total risk-based capital ratio at 11.7%. "By continuing to control our growth over the next few quarters, demonstrating strong earnings, and completing the sale of BankMobile at an anticipated substantial gain, we hope to reach these targeted levels in the next few quarters," concluded Mr. Sidhu.

BankMobile

The BankMobile division took a significant step during Q3 2016 with Customers Bank's integration of the Disbursements business acquired from Higher One late in Q2 2016. Together the new BankMobile division services over 1.5 million deposit accounts as of September 30, 2016. The combined businesses also have the potential to add about 450,000 to 500,000 new student accounts annually. Since the acquisition of the Disbursements business, BankMobile has added over 200,000 new accounts and converted over 300,000 accounts at the student account holder's election from a prior business partner of Higher One. "We are very focused on continuing to build out BankMobile's technology software platform, introducing the Vibe and Bold deposit accounts, integrating the Disbursements business with the BankMobile business, developing and beginning to execute plans to continue to attract between 450,000 to 500,000 new millennial customers to its customer base each year and improve their engagement as a banking customer so they stay a BankMobile customer for life. The acquisition of the Disbursements business provides us with a great opportunity, marking an inflection point in BankMobile's development. We are committed to making BankMobile the primary bank for all our student customers and moving with them as they evolve to young professionals," stated Mr. Sidhu. "We are also focused on attracting more deposit customers with the Vibe and Bold accounts, arguably among the best customer offerings and the best priced banking services available in the U.S. We believe that 2016 and 2017 will be very exciting years as we build BankMobile as a profitable business and create value for Customers Bancorp, Inc. shareholders," Mr. Sidhu continued.

Managing Commercial Real Estate Concentration Risks and Providing High Net Worth Families Loans for Their Multi-Family Holdings

Customers' loans collateralized by multi-family properties were approximately 37.7% of Customers' total loan portfolio and approximately 411% of Tier 1 capital at September 30, 2016. Recognizing the risks that accompany certain elements of commercial real estate ("CRE") lending, Customers has as part of its core strategies studiously sought to limit its risks and has concluded that it has appropriate risk management systems in place to manage this portfolio. Customers' total real estate construction and development exposure, arguably the riskiest area of CRE, was under $100 million as of September 30, 2016.

Our CRE exposures are focused principally on loans to high net worth families collateralized by multi-family properties that are of modest size and subject to what Customers believes are conservative underwriting standards. As of September 30, 2016, Customers had no non-performing multi-family loans. Customers believes it has a strong risk management process to manage the portfolio risks prospectively and that this portfolio will perform well even under a stressed scenario. Following are some unique characteristics of Customers' multi-family loan portfolio:



-- Principally concentrated in New York City and principally to high net
worth families;
-- Average loan size is between $5 million - $7 million;
-- Annual debt service coverage ratio is 140%;
-- Median loan-to-value is 70%;
-- All loans are individually stressed with an increase of 1% and 2% to the
cap rate and an increase of 1.5% and 3% in loan interest rates;
-- All properties are inspected prior to a loan being granted and monitored
thereafter on an annual basis by dedicated portfolio managers;
-- Customers to date has never experienced more than a 30 day delinquency
on any of the multi-family loans that it has originated; and
-- Credit approval process is independent of customer sales and portfolio
management process.



Asset Quality and Interest Rate Risk

Risk management is a critical component of how Customers creates long-term shareholder value. Two of the most important risks of banking to be understood and managed in an uncertain economy are asset quality and interest rate risk.

Customers believes that asset quality risks must be diligently addressed during good economic times with prudent underwriting standards so that when the economy deteriorates the bank's capital is sufficient to absorb all losses without threatening its ability to operate and serve its community and other constituents. "Customers adopted prudent underwriting standards in 2010 when the current management team assumed responsibility for building the Bank and has not compromised those standards," stated Mr. Sidhu. "Customers' non-performing loans at September 30, 2016 were only 0.16% of total loans, compared to our peer group non-performing loans of approximately 0.90% of total loans, and industry average non-performing loans of 1.69% of total loans. Our expectation is superior asset quality performance in good times and in difficult years. We have no direct exposure to oil and gas or business investments in fracking," said Mr. Sidhu.

Interest rate risk is another critical element for banks to manage. An unexpected shift in interest rates can have a devastating effect on a bank's profitability for multiple years. Banks can position their assets and liabilities to speculate on future interest rate changes with the hope of gaining earnings by guessing the next movement in interest rates. "Customers' objective is to manage the estimated effect of future interest rate changes, up or down, to a neutral effect on net interest income, so not speculating on whether interest rates go up or down. At September 30, 2016, we were slightly asset sensitive, hoping to benefit somewhat from the anticipated higher short term rates," said Mr. Sidhu. "This allows our team members to focus on generating earnings from the business of banking, aggregating deposits and making loans to customers in the communities we serve," concluded Mr. Sidhu.

Diversified Loan Portfolio

Customers is a Business Bank that principally focuses on four lending activities; commercial and industrial loans to privately held businesses, multi-family loans principally to high net worth families, selected commercial real estate loans, and commercial loans and banking services to privately held mortgage companies. Commercial and industrial loans, including owner-occupied commercial real estate loans, and commercial loans to mortgage companies, were approximately $3.7 billion at September 30, 2016. Multi-family loans, or loans to high net worth families, were approximately $3.2 billion at September 30, 2016. Non-owner occupied commercial real estate loans were approximately $1.2 billion at September 30, 2016. Consumer and residential mortgage loans make up only about 4% of the loan portfolio.

Conference Call

Date: Wednesday, October 26, 2016

Time: 5:00 PM ET

US Dial-in: 877-913-0088

International Dial-in: 913-981-5538

Participant Code: 149764

Please dial in at least 10 minutes before the start of the call to ensure timely participation. Slides accompanying the presentation will be available on the Company's website at http://customersbank.com/investor_relations.php prior to the call. A playback of the call will be available beginning October 26, 2016 at 8:00 pm ET until 8:00 pm on November 25, 2016. To listen, call within the United States (888) 203-1112 or 719-457-0820 when calling internationally. Please use the replay pin number 5032669.

Institutional Background

Customers Bancorp, Inc. is a bank holding company located in Wyomissing, Pennsylvania engaged in banking and related business through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $9.6 billion that was named one of Forbes magazine's 2016 100 Best Banks in America (there are over 6,200 banks in the United States). A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, New York, Rhode Island, New Hampshire, Massachusetts, and New Jersey. Committed to fostering customer loyalty, Customers Bank uses a High Tech/High Touch strategy that includes use of industry-leading technology to provide customers better access to their money, as well as Concierge Banking® by appointment at customers' homes or offices 12 hours a day, seven days a week. Customers Bank offers a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers. BankMobile is a division of Customers Bank, offering state of the art high tech digital banking services with high level of personal customer service.

Customers Bancorp, Inc. voting common shares are listed on the New York Stock Exchange under the symbol CUBI. Additional information about Customers Bancorp, Inc. can be found on the Company's website, 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," 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 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. In addition, important factors relating to the acquisition of the Disbursements business, the combination of Customers' BankMobile business with the acquired Disbursements business and the implementation of Customers Bancorp, Inc.'s strategy regarding BankMobile, including with respect to the possible disposition of the BankMobile business, depending upon market conditions and opportunities, also could cause Customers Bancorp's actual results to differ from those in the forward-looking statements. 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, 2015, subsequently filed quarterly reports on Form 10-Q, and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and 10-Q filings. 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.





CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
---------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED -
UNAUDITED
---------------------------------------------------------------------------
(Dollars in thousands, except per share data)
Q3 Q2 Q3
2016 2016 2015
-------- -------- --------
Interest income:
Loans receivable, including fees $ 60,362 $ 59,013 $ 46,291
Loans held for sale 18,737 17,429 14,006
Investment securities 3,528 3,638 2,283
Other 1,585 1,241 1,156
-------- -------- --------
Total interest income 84,212 81,321 63,736

Interest expense:
Deposits 13,009 11,142 9,022
Other borrowings 1,642 1,620 1,539
FHLB advances 3,291 3,716 1,556
Subordinated debt 1,685 1,685 1,685
-------- -------- --------
Total interest expense 19,627 18,163 13,802
-------- -------- --------
Net interest income 64,585 63,158 49,934
Provision for loan losses 88 786 2,094
-------- -------- --------
Net interest income after provision
for loan losses 64,497 62,372 47,840

Non-interest income:
Interchange and card revenue 11,547 1,890 128
Deposit fees 4,218 787 265
Mortgage warehouse transactional fees 3,080 3,074 2,792
Bank-owned life insurance 1,386 1,120 1,177
Gain on sale of loans 1,206 285 1,131
Mortgage loans and banking income 287 285 167
(Loss) on sale of investment securities (1) - (16)
Other 5,763 816 527
-------- -------- --------
Total non-interest income 27,486 8,257 6,171

Non-interest expense:
Salaries and employee benefits 22,681 18,107 14,981
Technology, communication and bank operations 12,525 3,854 2,422
Professional services 7,006 3,636 2,673
FDIC assessments, taxes, and regulatory fees 2,726 4,435 3,222
Occupancy 2,450 2,473 2,169
Other real estate owned 1,192 183 1,722
Loan workout 592 487 285
Advertising and promotion 591 334 330
Acquisition related expenses 144 874 -
Other 6,311 3,800 2,503
-------- -------- --------
Total non-interest expense 56,218 38,183 30,307
-------- -------- --------
Income before income tax expense 35,765 32,446 23,704
Income tax expense 14,576 13,016 8,415
-------- -------- --------
Net income 21,189 19,430 15,289
Preferred stock dividends 2,552 2,062 980
-------- -------- --------
Net income available to common
shareholders $ 18,637 $ 17,368 $ 14,309
======== ======== ========

Basic earnings per common share $ 0.68 $ 0.64 $ 0.53
Diluted earnings per common share $ 0.64 $ 0.60 $ 0.50








CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
---------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED - UNAUDITED
---------------------------------------------------------------------------
(Dollars in thousands, except per share data)
September 30, September 30,
2016 2015
------------- -------------
Interest income:
Loans receivable, including fees $ 173,847 $ 132,185
Loans held for sale 50,272 38,428
Investment securities 10,875 6,899
Other 3,937 4,625
------------- -------------
Total interest income 238,931 182,137

Interest expense:
Deposits 34,365 24,693
Other borrowings 4,867 4,523
FHLB advances 9,274 5,044
Subordinated debt 5,055 5,055
------------- -------------
Total interest expense 53,561 39,315
------------- -------------
Net interest income 185,370 142,822
Provision for loan losses 2,854 14,393
------------- -------------
Net interest income after provision
for loan losses 182,516 128,429

Non-interest income:
Interchange and card revenue 13,806 390
Mortgage warehouse transactional fees 8,702 7,864
Deposit fees 5,260 691
Bank-owned life insurance 3,629 3,407
Gain on sale of loans 2,135 3,189
Mortgage loans and banking income 737 605
Gain (loss) on sale of investment securities 25 (85)
Other 6,943 2,236
------------- -------------
Total non-interest income 41,237 18,297

Non-interest expense:
Salaries and employee benefits 58,051 43,381
Technology, communication and bank operations 19,021 7,791
Professional services 13,213 7,378
FDIC assessments, taxes, and regulatory fees 11,191 7,495
Occupancy 7,248 6,469
Other real estate owned 1,663 2,026
Loan workout 1,497 541
Acquisition related expenses 1,195 -
Advertising and promotion 1,178 1,106
Other 14,049 7,245
------------- -------------
Total non-interest expense 128,306 83,432
------------- -------------
Income before income tax expense 95,447 63,294
Income tax expense 37,129 22,497
------------- -------------
Net income 58,318 40,797
Preferred stock dividends 5,900 1,487
------------- -------------
Net income available to common
shareholders $ 52,418 $ 39,310
============= =============

Basic earnings per common share $ 1.93 $ 1.47
Diluted earnings per common share $ 1.81 $ 1.37








CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
---------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET - UNAUDITED
---------------------------------------------------------------------------
(Dollars in thousands)
September 30, December 31, September 30,
2016 2015 2015
------------- ------------- -------------
ASSETS
Cash and due from banks $ 39,742 $ 53,550 $ 80,475
Interest-earning deposits 225,846 211,043 302,924
------------- ------------- -------------
Cash and cash equivalents 265,588 264,593 383,399
Investment securities available
for sale, at fair value 530,896 560,253 418,945
Loans held for sale 2,402,708 1,797,064 1,730,002
Loans receivable 6,016,995 5,453,479 4,769,102
Allowance for loan losses (37,897) (35,647) (33,823)
------------- ------------- -------------
Total loans receivable, net
of allowance for loan losses 5,979,098 5,417,832 4,735,279
FHLB, Federal Reserve Bank, and
other restricted stock 71,621 90,841 63,514
Accrued interest receivable 22,100 19,939 16,512
FDIC loss sharing receivable - - 202
Bank premises and equipment,
net 12,428 11,531 11,567
Bank-owned life insurance 160,357 157,211 156,909
Other real estate owned 3,897 5,057 8,433
Goodwill and other intangibles 16,924 3,651 3,654
Other assets 136,993 70,233 67,760
------------- ------------- -------------
Total assets $ 9,602,610 $ 8,398,205 $ 7,596,176
============= ============= =============

LIABILITIES AND SHAREHOLDERS'
EQUITY
Demand, non-interest bearing
deposits $ 1,080,970 $ 653,679 $ 777,478
Interest-bearing deposits 6,308,000 5,255,822 5,007,716
------------- ------------- -------------
Total deposits 7,388,970 5,909,501 5,785,194
Federal funds purchased 52,000 70,000 50,000
FHLB advances 1,036,700 1,625,300 985,900
Other borrowings 86,957 86,457 86,290
Subordinated debt 108,758 108,685 108,665
Accrued interest payable and
other liabilities 139,405 44,360 42,149
------------- ------------- -------------
Total liabilities 8,812,790 7,844,303 7,058,198

Preferred stock 217,549 55,569 55,569
Common stock 28,074 27,432 27,413
Additional paid in capital 374,727 362,607 360,903
Retained earnings 176,929 124,511 107,731
Accumulated other comprehensive
income (loss) 774 (7,984) (5,405)
Treasury stock, at cost (8,233) (8,233) (8,233)
------------- ------------- -------------
Total shareholders' equity 789,820 553,902 537,978
------------- ------------- -------------
Total liabilities &
shareholders' equity $ 9,602,610 $ 8,398,205 $ 7,596,176
============= ============= =============








CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED)
----------------------------------------------------------------------------
(Dollars in thousands)
Three months ended
-----------------------------------------------------------
September 30, June 30, September 30,
2016 2016 2015
------------------- ------------------- -------------------
Average Average Average
Average yield or Average yield or Average yield or
Balance cost (%) Balance cost (%) Balance cost (%)
------------------- ------------------- -------------------
Assets
Interest earning
deposits $ 237,753 0.55% $ 213,509 0.51% $ 312,286 0.26%
Investment
securities 534,333 2.64% 550,130 2.65% 377,157 2.42%
Loans held for
sale 2,124,097 3.51% 2,056,929 3.41% 1,720,863 3.23%
Loans receivable 6,117,367 3.93% 6,050,895 3.92% 4,648,986 3.95%
Other interest-
earning assets 90,010 5.56% 102,599 3.79% 67,299 5.62%
---------- ---------- ----------
Total interest
earning assets 9,103,560 3.68% 8,974,062 3.64% 7,126,591 3.55%
Non-interest
earning assets 336,013 285,138 257,220
---------- ---------- ----------
Total assets $9,439,573 $9,259,200 $7,383,811
========== ========== ==========

Liabilities
Total interest
bearing
deposits (1) $6,150,265 0.84% $5,773,445 0.78% $4,938,317 0.72%
Borrowings 1,586,262 1.66% 2,014,452 1.40% 1,214,803 1.57%
---------- ---------- ----------
Total interest
bearing 1.01% 0.94% 0.89%
liabilities 7,736,527 7,787,897 6,153,120
Non-interest
bearing
deposits (1) 863,435 759,373 675,455
---------- ---------- ----------
Total deposits &
borrowings 8,599,962 0.91% 8,547,270 0.85% 6,828,575 0.80%
Other non-
interest
bearing
liabilities 129,199 56,870 19,998
---------- ---------- ----------
Total
liabilities 8,729,161 8,604,140 6,848,573
Shareholders'
equity 710,412 655,060 535,238
---------- ---------- ----------
Total
liabilities
and
shareholders'
equity $9,439,573 $9,259,200 $7,383,811
========== ========== ==========

Net interest
margin 2.82% 2.83% 2.78%
Net interest
margin tax 2.83% 2.83% 2.79%
equivalent






(1) Total costs of deposits (including interest bearing and non-interest
bearing) were 0.74%, 0.68% and 0.64% for the three months ended September
30, 2016, June 30, 2016 and September 30, 2015, respectively.








CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN (UNAUDITED)
----------------------------------------------------------------------------
(Dollars in thousands)
Nine months ended
---------------------------------------
September 30, September 30,
2016 2015
------------------- -------------------
Average Average
Average yield or Average yield or
Balance cost (%) Balance cost (%)
------------------- -------------------
Assets
Interest earning deposits $ 211,971 0.53% $ 295,485 0.26%
Investment securities 548,921 2.64% 389,253 2.36%
Loans held for sale 1,915,572 3.51% 1,594,942 3.22%
Loans receivable 5,949,829 3.90% 4,472,704 3.95%
Other interest-earning assets 90,911 4.54% 73,368 7.40%
---------- ----------
Total interest earning assets 8,717,204 3.66% 6,825,752 3.57%
Non-interest earning assets 305,326 265,184
---------- ----------
Total assets $9,022,530 $7,090,936
========== ==========

Liabilities
Total interest bearing deposits (1) $5,801,231 0.79% $4,489,241 0.74%
Borrowings 1,693,455 1.51% 1,395,863 1.40%
---------- ----------
Total interest-bearing liabilities 7,494,686 0.95% 5,885,104 0.89%
Non-interest-bearing deposits (1) 800,358 684,466
---------- ----------
Total deposits & borrowings 8,295,044 0.86% 6,569,570 0.80%
Other non-interest bearing
liabilities 76,774 26,025
---------- ----------
Total liabilities 8,371,818 6,595,595
Shareholders' equity 650,712 495,341
---------- ----------
Total liabilities and
shareholders' equity $9,022,530 $7,090,936
========== ==========

Net interest margin 2.84% 2.80%
Net interest margin tax equivalent 2.84% 2.80%






(1) Total costs of deposits (including interest bearing and non-interest
bearing) were 0.70% and 0.64% for the nine months ended September 30, 2016
and 2015, respectively.








CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
PERIOD END LOAN COMPOSITION (UNAUDITED)
----------------------------------------------------------------------------

(Dollars in thousands) September 30, December 31, September 30,
2016 2015 2015
------------- ------------- -------------

Commercial:
Multi-Family $ 3,175,561 $ 2,948,696 $ 2,455,392
Mortgage warehouse 2,422,004 1,797,753 1,729,909
Commercial & Industrial (1) 1,248,594 1,068,597 916,044
Commercial Real Estate- Non-
Owner Occupied 1,151,099 956,255 912,971
Construction 83,835 87,240 89,616
------------- ------------- -------------
Total commercial loans 8,081,093 6,858,541 6,103,932

Consumer:
Residential 230,690 274,470 274,163
Manufactured housing 104,404 113,490 116,742
Other consumer 3,420 3,708 3,744
------------- ------------- -------------
Total consumer loans 338,514 391,668 394,649
Deferred costs and unamortized
premiums, net 96 334 523
------------- ------------- -------------
Total loans $ 8,419,703 $ 7,250,543 $ 6,499,104
============= ============= =============

(1) Commercial & industrial loans, including owner occupied commercial real
estate.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
PERIOD END DEPOSIT COMPOSITION (UNAUDITED)
----------------------------------------------------------------------------

(Dollars in thousands) September 30, December 31, September 30,
2016 2015 2015
------------- ------------- -------------

Demand, non-interest bearing $ 1,080,970 $ 653,679 $ 777,478
Demand, interest bearing 201,703 127,215 146,737
Savings 37,120 41,600 39,739
Money market 3,140,144 2,739,411 2,533,070
Time deposits 2,929,033 2,347,596 2,288,170
------------- ------------- -------------
Total deposits $ 7,388,970 $ 5,909,501 $ 5,785,194
============= ============= =============








----------------------------------------------------------------------------
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
ASSET QUALITY - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands) As of September 30, 2016
-----------------------------------------------
Total
Non Total NPLs / Reserves
Total Accrual Credit Total to Total
Loans /NPLs Reserves Loans NPLs

Loan Type
----------------------------------------------------------------------------
Originated Loans
Multi-Family $3,146,121 $ - $ 11,673 -% -%
Commercial & Industrial (1) 1,192,720 6,326 12,129 0.53% 191.73%
Commercial Real Estate- Non-
Owner Occupied 1,113,620 - 4,417 -% -%
Residential 118,167 32 2,232 0.03% 6,975.00%
Construction 83,835 - 1,049 -% -%
Other consumer 816 - 10 -% -%
----------------------------------------------------------------------------
Total Originated Loans 5,655,279 6,358 31,510 0.11% 495.60%
----------------------------------------------------------------------------
Loans Acquired
Bank Acquisitions 177,085 5,046 5,965 2.85% 118.21%
Loan Purchases 184,535 1,992 1,089 1.08% 54.67%
----------------------------------------------------------------------------
Total Acquired Loans 361,620 7,038 7,054 1.95% 100.23%
----------------------------------------------------------------------------
Deferred costs and
unamortized premiums, net 96 - - -% -%
----------------------------------------------------------------------------
Total Loans Held for
Investment 6,016,995 13,396 38,564 0.22% 287.88%
----------------------------------------------------------------------------
Total Loans Held for Sale 2,402,708 - - -% -%
----------------------------------------------------------------------------
Total Portfolio $8,419,703 $ 13,396 $ 38,564 0.16% 287.88%
----------------------------------------------------------------------------




----------------------------------------------------------------------------
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
ASSET QUALITY - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands) As of December 31, 2015
------------------------------------------------
Total
Non Total NPLs / Reserves
Total Accrual Credit Total to Total
Loans /NPLs Reserves Loans NPLs

Loan Type
----------------------------------------------------------------------------
Originated Loans
Multi-Family $2,903,814 $ - $ 12,016 -% -%
Commercial & Industrial (1) 990,621 2,760 8,864 0.28% 321.16%
Commercial Real Estate- Non-
Owner Occupied 906,544 788 3,706 0.09% 470.30%
Residential 113,858 32 1,992 0.03% 6,225.00%
Construction 87,006 - 1,074 -% -%
Other consumer 712 - 9 -% -%
----------------------------------------------------------------------------
Total Originated Loans 5,002,555 3,580 27,661 0.07% 772.65%
----------------------------------------------------------------------------
Loans Acquired
Bank Acquisitions 206,971 4,743 7,492 2.29% 157.96%
Loan Purchases 243,619 2,448 1,653 1.00% 67.52%
----------------------------------------------------------------------------
Total Acquired Loans 450,590 7,191 9,145 1.60% 127.17%
----------------------------------------------------------------------------
Deferred costs and
unamortized premiums, net 334 - - -% -%
----------------------------------------------------------------------------
Total Loans Held for
Investment 5,453,479 10,771 36,806 0.20% 341.71%
----------------------------------------------------------------------------
Total Loans Held for Sale 1,797,064 - - -% -%
----------------------------------------------------------------------------
Total Portfolio $7,250,543 $ 10,771 $ 36,806 0.15% 341.71%
----------------------------------------------------------------------------




----------------------------------------------------------------------------
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
ASSET QUALITY - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands) As of September 30, 2015
------------------------------------------------
Total
Non Total NPLs / Reserves
Total Accrual Credit Total to Total
Loans /NPLs Reserves Loans NPLs

Loan Type
----------------------------------------------------------------------------
Originated Loans
Multi-Family $2,399,387 $ - $ 9,206 -% -%
Commercial & Industrial (1) 844,814 6,283 10,187 0.74% 162.14%
Commercial Real Estate- Non-
Owner Occupied 860,225 3,947 3,521 0.46% 89.21%
Residential 23,512.5
110,270 8 1,881 0.01% 0%
Construction 89,382 - 1,106 -% -%
Other consumer 152 - 8 -% -%
----------------------------------------------------------------------------
Total Originated Loans 4,304,230 10,238 25,909 0.24% 253.07%
----------------------------------------------------------------------------
Loans Acquired
Bank Acquisitions 175,536 4,891 7,528 2.79% 153.92%
Loan Purchases 288,813 2,653 1,595 0.92% 60.12%
----------------------------------------------------------------------------
Total Acquired Loans 464,349 7,544 9,123 1.62% 120.93%
----------------------------------------------------------------------------
Deferred costs and
unamortized premiums, net 523 - - -% -%
----------------------------------------------------------------------------
Total Loans Held for
Investment 4,769,102 17,782 35,032 0.37% 197.01%
----------------------------------------------------------------------------
Total Loans Held for Sale 1,730,002 - - -% -%
----------------------------------------------------------------------------
Total Portfolio $6,499,104 $ 17,782 $ 35,032 0.27% 197.01%
----------------------------------------------------------------------------






(1) Commercial & industrial loans, including owner occupied commercial real
estate.







CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
---------------------------------------------------------------------------
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
---------------------------------------------------------------------------

For the Quarter Ended
Q3 Q2 Q3
(Dollars in thousands) 2016 2016 2015
--------- --------- ---------
Originated Loans
Commercial & Industrial (1) $ 49 $ 41 $ 5.324
Commercial Real Estate- Non-Owner Occupied - - (13)
Residential 43 - -
Other consumer 245 145 -
--------- --------- ---------
Total Originated Loans 337 186 5,311
Loans Acquired
Bank Acquisitions (49) 874 258
Loan Purchases - - 88
--------- --------- ---------
Total Acquired Loans (49) 874 346
--------- --------- ---------
Total Loans Held for Investment $ 288 $ 1,060 $ 5,657
========= ========= =========






(1) Commercial & industrial loans, including owner occupied commercial real
estate.







CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
SEGMENT REPORTING - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands)
Three months ended September 30, 2016
---------------------------------------------
Community
Business Banking BankMobile Consolidated
---------------- -------------- -------------
Interest income (1) $ 82,828 $ 1,384 $ 84,212
Interest expense 19,620 7 19,627
-------------- ------------ ------------
Net interest income 63,208 1,377 64,585
Provision for loan losses (162) 250 88
Non-interest income 11,121 16,365 27,486
Non-interest expense 36,864 19,354 56,218
-------------- ------------ ------------
Income (loss) before income
tax expense 37,627 (1,862) 35,765
Income tax expense/(benefit) 15,284 (708) 14,576
-------------- ------------ ------------
Net income (loss) 22,343 (1,154) 21,189
Preferred stock dividends 2,552 — 2,552
-------------- ------------ ------------
Net income (loss)
available to common $
shareholders 19,791 $ (1,154) $ 18,637
============== ============ ============






(1) - Amounts reported include funds transfer pricing of $1.4 million for
the three months ended September 30, 2016 credited to BankMobile for the
value provided to the Community Business Banking segment for the use of
low/no cost deposits.






Nine months ended September 30, 2016
----------------------------------------------
Community
Business Banking BankMobile Consolidated
----------------- -------------- -------------
Interest income (1) $ 234,513 $ 4,418 $ 238,931
Interest expense 53,539 22 53,561
----------------- -------------- -------------
Net interest income 180,974 4,396 185,370
Provision for loan losses 2,605 249 2,854
Non-interest income 22,241 18,996 41,237
Non-interest expense 101,053 27,253 128,306
----------------- -------------- -------------
Income (loss) before income
tax expense 99,557 (4,110) 95,447
Income tax expense/(benefit) 38,691 (1,562) 37,129
----------------- -------------- -------------
Net income (loss) 60,866 (2,548) 58,318
Preferred stock dividends 5,900 — 5,900
----------------- -------------- -------------
Net income (loss)
available to common
shareholders $ 54,966 $ (2,548) $ 52,418
================= ============== =============

As of September 30, 2016
Goodwill and other
intangibles $ 3,642 $ 13,282 $ 16,924
Total assets $ 9,532,281 $ 70,329 $ 9,602,610
Total deposits $ 6,855,788 $ 533,182 $ 7,388,970







(1) - Amounts reported include funds transfer pricing of $4.4 million for
the nine months ended September 30, 2016 credited to BankMobile for the
value provided to the Community Business Banking segment for the use of
low/no cost deposits.




Please note that BankMobile operating results for 2015 were not material to Customers' 2015 consolidated financial results.




----------------------------------------------------------------------------
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
----------------------------------------------------------------------------
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED
----------------------------------------------------------------------------
(Dollars in thousands, except per share data)




Customers believes that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our financial results, which we believe enhance an overall understanding of our performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. 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.




Pre-tax Pre-provision Return on Average Assets
Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015
---------- ---------- ---------- ---------- ----------
GAAP Net Income $ 21,189 $ 19,430 $ 17,699 $ 17,786 $ 15,289
Reconciling
Items:
Provision for
loan losses 88 786 1,980 6,173 2,094
Income tax
expense 14,576 13,016 9,537 7,415 8,415
---------- ---------- ---------- ---------- ----------
Pre-tax Pre-
provision Net
Income $ 35,853 $ 33,232 $ 29,216 $ 31,374 $ 25,798
========== ========== ========== ========== ==========

Average Total
Assets $9,439,573 $9,259,200 $8,364,233 $7,771,721 $7,383,811

Pre-tax Pre-
provision
Return on
Average Assets 1.51% 1.44% 1.40% 1.60% 1.39%







Pre-tax Pre-provision Return on Average Common Equity
Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015
---------- ---------- ---------- ---------- ----------
GAAP Net Income
Available to
Common
Shareholders $ 18,637 $ 17,368 $ 16,413 $ 16,780 $ 14,309
Reconciling
Items:
Provision for
loan losses 88 786 1,980 6,173 2,094
Income tax
expense 14,576 13,016 9,537 7,415 8,415
---------- ---------- ---------- ---------- ----------
Pre-tax Pre-
provision Net
Income
Available to
Common
Shareholders $ 33,301 $ 31,170 $ 27,930 $ 30,368 $ 24,818
========== ========== ========== ========== ==========

Average Total
Shareholders'
Equity $ 710,412 $ 655,060 $ 586,009 $ 550,289 $ 535,238
Reconciling
Item:
Average
Preferred
Stock (148,690) (118,793) (72,285) (55,569) (55,569)
---------- ---------- ---------- ---------- ----------
Average Common
Equity $ 561,722 $ 536,267 $ 513,724 $ 494,720 $ 479,669
========== ========== ========== ========== ==========

Pre-tax Pre-
provision
Return on
Average Common
Equity 23.58% 23.38% 21.87% 24.35% 20.53%







Tangible Common Equity to Average Tangible Assets
Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015
---------- ---------- ---------- ---------- ----------
GAAP - Total
Shareholders'
Equity $ 789,820 $ 680,562 $ 599,249 $ 553,902 $ 537,978
Reconciling
Items:
Preferred
Stock (217,549) (135,270) (79,677) (55,569) (55,569)
Goodwill and
Other
Intangibles (16,924) (17,197) (3,648) (3,651) (3,654)
---------- ---------- ---------- ---------- ----------
Tangible Common
Equity $ 555,347 $ 528,095 $ 515,924 $ 494,682 $ 478,755
========== ========== ========== ========== ==========

Average Total
Assets $9,439,573 $9,259,200 $8,364,233 $7,771,721 $7,383,811
Reconciling
Items:
Average
Goodwill and
Other
Intangibles (17,101) (6,037) (3,650) (3,653) (3,657)
---------- ---------- ---------- ---------- ----------
Average Tangible
Assets $9,422,472 $9,253,163 $8,360,583 $7,768,068 $7,380,154
========== ========== ========== ========== ==========

Tangible Common
Equity to
Average
Tangible Assets 5.89% 5.71% 6.17% 6.37% 6.49%







Tangible Book Value per Common Share
Q3 2016 Q2 2016 Q1 2016 Q4 2015 Q3 2015
----------- ----------- ----------- ----------- -----------
Total
Shareholders'
Equity $ 789,820 $ 680,562 $ 599,249 $ 553,902 $ 537,978
Reconciling
Items:
Preferred
Stock (217,549) (135,270) (79,677) (55,569) (55,569)
Goodwill and
Other
Intangibles (16,924) (17,197) (3,648) (3,651) (3,654)
----------- ----------- ----------- ----------- -----------
Tangible Common
Equity $ 555,347 $ 528,095 $ 515,924 $ 494,682 $ 478,755
=========== =========== =========== =========== ===========

Common shares
outstanding 27,544,217 27,286,833 27,037,005 26,901,801 26,882,383

Tangible Book
Value per
Common Share $ 20.16 $ 19.35 $ 19.08 $ 18.39 $ 17.81





FOR FURTHER INFORMATION PLEASE CONTACT:

Contacts:
Jay Sidhu
Chairman & CEO
610-935-8693

Richard Ehst
President & COO
610-917-3263

Investor Contact:
Robert Wahlman
CFO
610-743-8074

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