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Jun 30, 2021
Customers Bancorp Q2 2021 Earnings Report
Reported record net income and increased tangible book value.
Key Takeaways
Customers Bancorp reported a record net income of $58.0 million for Q2 2021, a 182% increase over Q2 2020. The company's ROAA was 1.27% and ROCE was 23.22%.
Q2 2021 net income available to common shareholders was $58.0 million, or $1.72 per diluted share, up 182% over Q2 2020.
Q2 2021 core earnings were $59.3 million, or $1.76 per diluted share, up 177% over Q2 2020.
Q2 2021 ROAA was 1.27% and Core ROAA was 1.30%.
Adjusted pre-tax pre-provision net income for Q2 2021 was $86.5 million, an increase of 60% over Q2 2020.
Forward Guidance
Customers Bancorp provided updated financial guidance, expecting loan growth, a stable NIM, and strong core EPS in 2021 and 2022.
Positive Outlook
- Loan growth, excluding PPP and mortgage warehouse balances, is expected to average in the mid-to-high single digits over the next several quarters.
- The Total Capital Ratio is expected to be about 14.0% by year-end 2021.
- The TCE ratio excluding PPP loans is expected to be close to 9.0% by year-end 2021.
- We project the NIM, excluding PPP loans, to remain within the 3.25% - 3.50% range for the second half of 2021.
- We now expect to earn at least $6.00 in core EPS in 2021 and 2022.
Challenges Ahead
- The balance of commercial loans to mortgage companies is expected to decline to $1.6 billion - $2.4 billion at December 31, 2021.
- It is difficult to predict net interest income in future periods because the timing of PPP forgiveness results in the accelerated recognition of net deferred fees.
- Looking ahead, we see continued growth in core C&I and consumer loans offsetting some of the expected decreases in loans to mortgage companies in the second half of this year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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