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Mar 31
Customers Bancorp Q1 2025 Earnings Report
Customers Bancorp reported its financial results for the first quarter of 2025, highlighting continued deposit transformation and growth in franchise value.
Key Takeaways
Customers Bancorp reported a net income of $9.5 million, or $0.29 per diluted share, for Q1 2025. Core earnings, a non-GAAP measure, stood at $50.0 million, or $1.54 per diluted share. The quarter saw significant balance sheet optimization, including a securities portfolio repositioning, which impacted net income but improved structural liquidity and credit profile. Total loans and leases grew by 4.2%, and total deposits increased by 0.5% from the previous quarter, with a notable decrease in the average cost of deposits.
Net income available to common shareholders was $9.5 million ($0.29 per diluted share), impacted by $39.9 million in post-tax losses from a securities portfolio repositioning.
Core earnings (non-GAAP) were $50.0 million ($1.54 per diluted share), reflecting strong underlying performance.
Total loans and leases held for investment increased by $611.7 million (4.2%) from Q4 2024, driven by commercial loan growth.
Total deposits grew by $86.5 million (0.5%) from Q4 2024, and the average cost of deposits decreased by 25 basis points to 2.82%.
Customers Bancorp
Customers Bancorp
Forward Guidance
Customers Bancorp remains focused on its strategy to transform its deposit franchise, strengthen risk management, improve profitability, and maintain strong capital and liquidity. The company aims to achieve loan, deposit, and net interest income growth targets while lowering its core efficiency ratio.
Positive Outlook
- Continued transformation of the deposit franchise to enhance stability and reduce costs.
- Further strengthening of risk management and compliance infrastructure.
- Improvement in profitability and growth in net interest income.
- Maintenance of strong capital ratios and liquidity positions.
- Commitment to exceptional service and sophisticated product offerings to drive strategic, organic growth.
Challenges Ahead
- Ongoing economic uncertainty and volatility in the macroeconomic environment.
- Potential for continued competition on deposit rates and growth.
- Risks associated with cybersecurity threats and data breaches.
- Impacts from geopolitical conditions and military conflicts on economic conditions.
- Potential for changes in accounting standards or policies affecting financial performance.