NYSE$CUBI

Customers Bancorp Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported a strong quarter driven by strategic priorities and balance sheet management.

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.

Headline financials

Total Revenue

$181M

Previous: $178M+2.1%
EPS (adj)

$1.65

Previous: $1.77-6.8%
ROAA

0.9%

No prior period
ROCE

13.2%

No prior period
Efficiency Ratio

49.3%

No prior period
Reserves to NPLs

494.5%

No prior period
Capital Expenditures

-$154K

Previous: -$320K+51.9%
Free Cash Flow

$107M

Previous: -$99.7M+207.2%
Net Income

$47.6M

Previous: $58.7M-18.9%
Operating Income

$14.1M

Previous: $110M-87.1%
Gross Profit

$181M

Previous: $178M+2.1%
Cash & Equivalents

$3.16B

Previous: $245M+1186.9%
Total Assets

$22B

Previous: $20.3B+8.8%
Stock-Based Comp

$3.51M

Previous: $3.63M-3.3%

Revenue & EPS history

Customers Bancorp · Revenue · Quarterly

$181M

Q2 2023+2.1%vs Q2 2022
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

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%.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2023

Historical avgQ2 2023

+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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