NYSE$CUBI

Customers Bancorp Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record net income and increased tangible book value.

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.

Headline financials

Total Revenue

$156M

Previous: $114M+36.2%
EPS (adj)

$1.76

Previous: $0.61+188.5%
ROAA

1.3%

No prior period
ROCE

23.2%

No prior period
Net Interest Margin

3.0%

No prior period
Efficiency Ratio

46.6%

Previous: 58.4%-20.3%
Capital Expenditures

-$312K

Previous: -$214K-45.8%
Free Cash Flow

-$167M

Previous: $39.4M-524.3%
Net Income

$61.3M

Previous: $22.7M+170.0%
Operating Income

$99.5M

Previous: $35.5M+180.6%
Gross Profit

$152M

Previous: $92.2M+65.2%
Cash & Equivalents

$431M

Previous: $1.07B-59.7%
Total Assets

$19.6B

Previous: $17.9B+9.7%
Stock-Based Comp

$4.56M

Previous: $3.82M+19.6%

Revenue & EPS history

Customers Bancorp · Revenue · Quarterly

$156M

Q2 2021+36.2%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Customers Bancorp provided updated financial guidance, expecting loan growth, a stable NIM, and strong core EPS in 2021 and 2022.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Looking ahead, we expect non-interest expenses to be lower in Q3 2021.
  • The consumer installment portfolio has been managed to moderate growth and strengthening credit quality, by replacing run-off with CB Direct originations with higher FICO scores.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+4.2%

Avg return

30 days after

61%

37 / 61 earnings

Positive

+23.2%

Q3 2023

Best reaction

-18.9%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-2.1%-3.5%
Q4 2025-7.8%-5.8%-10.2%
Q3 2025+7.3%+2.9%+0.7%
Q2 2025-1.2%-1.3%+1.8%
Q1 2025-2.9%-0.7%+0.8%
Q4 2024+13.9%+13.6%+5.8%
Q3 2024+0.0%+1.7%+23.6%
Q2 2024+9.2%+2.8%-16.7%
Q1 2024-6.5%-8.8%-9.8%
Q4 2023+2.6%+6.3%-0.8%
Q3 2023+23.2%+24.6%+39.8%
Q2 2023+0.0%-2.8%-17.2%
Q1 2023+20.8%+0.8%+36.5%
Q4 2022-15.3%-11.0%-1.4%
Q3 2022-4.2%+1.8%-2.6%
Q2 2022-1.4%-1.9%-6.2%
Q1 2022+5.4%+3.1%-0.4%
Q4 2021-4.4%-6.7%-4.1%
Q3 2021+7.4%+15.3%+17.8%
Q2 2021-1.9%-3.7%+15.3%
Q1 2021+1.7%+7.4%+16.2%
Q4 2020+1.3%+3.0%+21.7%
Q3 2020+5.3%+8.6%+36.9%
Q2 2020+9.3%+6.9%+18.9%
Q1 2020-2.6%-4.5%+1.4%
Q4 2019+6.0%+3.3%+0.0%
Q3 2019+4.8%+11.3%+11.4%
Q2 2019-1.8%+1.6%-8.2%
Q1 2019-2.9%+0.4%-7.6%
Q4 2018-3.1%-2.1%+7.0%
Q3 2018+13.3%+13.1%+4.6%
Q2 2018-10.0%-12.8%-13.3%
Q1 2018+3.1%+1.3%+5.8%
Q4 2017+2.9%-0.5%+0.6%
Q3 2017-7.6%-10.3%-14.0%
Q2 2017+0.7%+4.8%+0.8%
Q1 2017+3.5%+3.9%-4.5%
Q4 2016+0.1%-1.0%+0.4%
Q3 2016+7.3%+6.6%+22.5%
Q2 2016-2.9%-3.9%-3.4%
Q1 2016+2.0%
Q4 2015+6.5%
Q3 2015-2.1%
Q2 2015-18.9%
Q1 2015+3.2%
Q4 2014+3.3%
Q3 2014+4.2%
Q2 2014+4.4%
Q1 2014+0.5%
Q2 2013+0.4%
Q4 2013+0.4%
Q3 2013+1.1%
Q1 2013-1.0%
Q4 2012+1.2%
Q2 2012+1.2%
Q3 2012-8.5%
Q2 2011+0.0%
Q1 2012+13.6%
Q1 2011+13.6%
Q4 2011+0.0%
Q4 2009+0.0%
Q3 2010
Q4 2010
Q3 2011

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