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Jun 30, 2023
Customers Bancorp Q2 2023 Earnings Report
Reported a strong quarter driven by strategic priorities and balance sheet management.
Key Takeaways
Customers Bancorp reported strong Q2 2023 results, with net income available to common shareholders at $44.0 million, or $1.39 per diluted share. The company saw significant deposit growth, a positive deposit mix shift, and an increase in net interest margin. Strategic loan sales and the acquisition of a Venture Banking portfolio contributed to balance sheet optimization and improved capital ratios.
Net income available to common shareholders was $44.0 million, or $1.39 per diluted share.
Total deposits grew by $226.8 million, with non-interest bearing deposits increasing by $1.0 billion, or 29%.
Net interest margin increased to 3.15%, a 19 basis point increase over Q1 2023.
Loans declined by $1.2 billion, or 7.6%, due to non-strategic loan sales.
Customers Bancorp
Customers Bancorp
Forward Guidance
Customers Bancorp expects to moderate growth, improve capital ratios, maintain positive operating leverage, and enhance deposits and liquidity. Core loans are projected to be flat to down, with a focus on improving funding profile and reducing high-cost deposits. Full year net interest margin, excluding PPP, is expected to be at the upper end of the previously guided range of 2.85% - 3.05%.
Positive Outlook
- Continue to moderate growth, or even reduce the size of the balance sheet.
- Optimize the balance sheet and materially improve our capital ratios.
- Maintain positive operating leverage with prudent expense management.
- Continue to improve deposits and liquidity.
- Improve the quality of our balance sheet and deposit franchise.
Challenges Ahead
- Higher FDIC assessments.
- Newly recruited Venture Banking team.
- Persisting levels of uncertainty.
- It is prudent to continue to moderate growth, or even shrink the balance sheet somewhat.
- Focus on further strengthening the balance sheet and improving capital ratios.