WEST READING — Customers Bancorp Inc. has reported quarterly core earnings of $59.4 million, or $1.77 per diluted share, up just 0.177% over the same period last year. By comparison, quarterly core earnings excluding Paycheck Protection Program (PPP) were $46.3 million for the quarter, or $1.38 per diluted share, up 32.3% over Q2 2021.
The West Reading-based bank released its second quarter earnings statement after the close of trading Wednesday, July 27.
Net income of $56.5 million, or $1.68 per diluted share, for the second quarter of fiscal year 2022. That is a 2.6% decrease over the same period last year.
“We continued to perform well in the second quarter and are extremely pleased with our results for the first half of 2022,” Jay Sidhu, Customers Bancorp chairman and CEO, said on a call with investors on Thursday, July 28. “Despite the challenging macro and geopolitical environment, we remain laser focused on executing on our strategy which has not changed.”
Sidhu added that Customers’ core loans increased $2.2 billion in the second quarter, up 18.7% from Q1 2022, and well above the financial institution’s $500 million average quarterly target.
“Nearly all of this growth was in low-risk specialty lending verticals and was predominately floating rate as Customers as we manage overall asset sensitivity,” he said.
Asset quality remains exceptional and credit reserves are strong, according to Sidhu.
“Continuing the momentum from record 2021 performance and strong results for the first half of 2022, our loan and deposit pipelines remain robust, a testament to our customer-centric business model supported by best-in-class service and technology. We remain very excited and optimistic about our future,” Sidhu added.
Year-over-year loan growth (excluding PPP loans and loans to mortgage companies) was $4.4 billion or 56.6%, led by Customers’ low-risk variable rate specialty lending verticals, the company said. Year-over-year commercial and industrial (C&I) loans and leases saw growth, including specialty lending, of $3.3 billion (up 145.8%), multifamily loan growth of $515.4 million (up 34.4%), and consumer loan increase of $500.8 million (up 26.2%).
“We capitalized on the momentum built over the last two quarters and delivered industry leading responsible loan growth led by variable rate lending and low risk specialty lending verticals, which is diversifying and strengthening our franchise,” Sam Sidhu, president and CEO of Customers Bank, said on the Thursday morning call.
Sam Sidhu, president and CEO, Customers Bank. (Courtesy of Customers Bank)
Total demand deposits increased $4.4 billion, or 64.0% year-over-year. This increase included CBIT-related deposits with a balance of $2.1 billion at June 30, 2022, up $0.3 billion from March 31, 2022.
In terms of Customers Bank’s Instant Token platform, Sam Sidhu said Thursday the company “continues to scale our business at a pace far greater than what we had projected.”
Customers fully launched Customers Bank Instant Token on the TassatPay payments platform in January, following a soft-launch in the fourth quarter of 2021. In the second quarter a total of 90 new customers signed on to the digital bank, bringing total customers to 190.