NYSE$CUBI

Customers Bancorp Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported solid results driven by core bank earnings, despite being negatively impacted by after-tax securities net losses and PPP loan losses.

Customers Bancorp reported a solid fourth quarter and full year 2022, with core bank earnings beating internal targets and estimates. The company's responsible organic growth strategy focuses on credit quality and prudent risk management.

  • Q4 2022 net income available to common shareholders was $25.6 million, or $0.77 per diluted share.
  • Q4 2022 core earnings were $39.4 million, or $1.19 per diluted share.
  • Q4 2022 core earnings (excluding PPP) were $45.3 million, or $1.37 per diluted share, up 22.9% over Q4 2021.
  • Q4 2022 loan growth was $458.0 million, or 3.0%.

Headline financials

Total Revenue

$135M

Previous: $194M-30.2%
EPS (adj)

$1.19

Previous: $2.92-59.2%
Efficiency Ratio

49.2%

Previous: 38.7%+27.1%
Reserves to NPLs

425.9%

No prior period
Capital Expenditures

$3.46M

Previous: $195K+1673.8%
Net Income

$25.6M

Previous: $101M-74.5%
Cash & Equivalents

$456M

Previous: $518M-12.0%
Total Assets

$20.9B

Previous: $19.6B+6.7%
Stock-Based Comp

$3.45M

Previous: $2.67M+29.3%

Revenue & EPS history

Customers Bancorp · Revenue · Quarterly

$135M

Q4 2022-30.2%vs Q4 2021
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Forward guidance

Customers Bancorp expects to moderate growth, optimize the balance sheet, build out the deposit franchise, maximize the efficiency ratio, and buy back common shares. They expect 2023 core loan growth to be in the low-to-mid single digits with tighter margins in the first half of 2023 and wider margins in the second half of 2023.

Tailwinds

  • 2023 Core EPS (excluding PPP) is expected to be between $6.00 - $6.25
  • Return on common equity of over 15% is expected.
  • Core non interest expense (excluding BM Technologies expense) is expected to increase between 8% - 10% in 2023
  • Targeting a CET 1 ratio of approximately 9.5%.
  • Focused on improving the quality of the balance sheet and deposit franchise, improving net interest margin, and achieving a book value in excess of $45 by year-end 2023.

Headwinds

  • Expect to moderate growth as we optimize the balance sheet
  • Tighter margins in the first half of 2023
  • Deposits are expected to remain relatively flat with a focus on reducing high cost deposits
  • Full year 2023 net interest margin is expected to be between 2.85% - 3.05%
  • Core non interest expense (excluding BM Technologies expense) is expected to increase between 8% - 10% in 2023

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 Q4 2022

Historical avgQ4 2022

+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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