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Mar 31, 2024
Customers Bancorp Q1 2024 Earnings Report
Reported a decrease in net income but demonstrated strong deposit growth and capital levels.
Key Takeaways
Customers Bancorp reported a net income available to common shareholders of $45.9 million, or $1.40 per diluted share, for Q1 2024. The bank experienced growth in business unit deposits and non-interest bearing deposits, funded the repayment of maturing wholesale CDs, and maintained strong capital ratios. The net interest margin was 3.10%, and asset quality remained strong with a low NPA ratio.
Net income available to common shareholders was $45.9 million, or $1.40 per diluted share.
Core earnings were $46.5 million, or $1.42 per diluted share.
Business unit deposits grew by $1.2 billion, funding the repayment of $1.2 billion in maturing wholesale CDs.
Non-interest bearing deposits increased by $266.4 million and represented 26% of total deposits.
Customers Bancorp
Customers Bancorp
Forward Guidance
Customers Bancorp anticipates modest deposit growth, improvement in deposit quality, and loan growth between 10% - 15% for the year. The company is committed to maintaining a CET 1 ratio around 11.5% and growing its TCE / TA ratio to 7.5%.
Positive Outlook
- Deposits are expected to grow modestly with continued improvement in the quality of deposits.
- Addition of new banking teams is expected to accelerate and enhance deposit growth.
- There are attractive opportunities to deploy cash and securities cash flows into franchise-enhancing loan growth.
- The loan pipeline is strong.
- The company expects investments made in recruiting the new banking teams will produce significant benefits by increasing net interest income and net interest margin.
Challenges Ahead
- Management of non-interest expenses remains a priority.
- Onboarding of new banking teams will elevate the efficiency ratio temporarily.
- The company is highly focused on preserving superior credit quality.
- The company is managing interest rate risk.
- The company is maintaining robust liquidity.