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Sep 30, 2022
Customers Bancorp Q3 2022 Earnings Report
Reported solid results driven by responsible organic growth and prudent risk management.
Key Takeaways
Customers Bancorp reported a net income available to common shareholders of $61.4 million, or $1.85 per diluted share, for Q3 2022. Core earnings were $82.3 million, or $2.48 per diluted share. The company's ROAA was 1.24% and ROCE was 19.33%. Year-over-year loan growth (excluding loans to mortgage companies and PPP) was $4.5 billion, or 57.3%.
Q3 2022 net income available to common shareholders was $61.4 million, or $1.85 per diluted share; ROAA was 1.24% and ROCE was 19.33%.
Q3 2022 core earnings were $82.3 million, or $2.48 per diluted share; Core ROAA was 1.64% and Core ROCE was 25.91%.
Q3 2022 core earnings excluding Paycheck Protection Program were $76.4 million, or $2.30 per diluted share, up 134.9% over Q3 2021, and bringing year-to-date core earnings (excluding PPP) to $5.15.
Q3 2022 adjusted pre-tax pre-provision net income was $101.0 million; ROAA was 1.95%, ROCE was 31.01%.
Forward Guidance
Customers Bancorp expects moderate sustainable and responsible organic core growth, maintenance of margins, improved capital ratios, and higher profitability.
Positive Outlook
- Portfolio remix into lower credit risk variable rate loans is mostly completed.
- Margin will likely trough in 2022 and they expect margin expansion in 2023 or through the projected rate-hike cycle.
- Efficiency ratio to be in the low to mid 40's by early 2023.
- Expect over $6.00 of core earnings in 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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