|By Marketwired .||
|April 21, 2014 04:31 PM EDT||
WYOMISSING, PA--(Marketwired - April 21, 2014) - Customers Bancorp, Inc. (NASDAQ: CUBI), the parent company of Customers Bank (collectively "Customers"), reported earnings of $8.1 million for the quarter ended March 31, 2014 ("Q1 2014") compared to earnings of $7.2 million for the quarter ended March 31, 2013 ("Q1 2013"), an increase of 13.2%. Q1 2014 fully diluted earnings per share was $0.32. Total shares outstanding at March 31, 2014 were 24.3 million, up from 18.5 million shares outstanding at March 31, 2013.
During Q1 2014 Customers funded loan balances (including mortgage warehouse loans held for sale) grew $841 million to $4.1 billion, an increase of 26.2% for the quarter. Deposits grew by $646 million to $3.6 billion, an increase of 21.8%. Loan growth was predominately in multi-family loans, up $495 million, adjustable rate 1-4 family residential mortgage loans, up $260 million, and commercial real estate and commercial and industrial loans, up $135 million.
Other financial highlights for Q1 2014 included:
- Total assets at March 31, 2014 were $5.0 billion, up $0.9 billion (20.7%) from the December 31, 2013 balance of $4.2 billion, and up $1.6 billion (45.0%) from the March 31, 2013 balance of $3.5 billion.
- Loans receivable (not covered by FDIC loss share) were $3.3 billion at March 31, 2014, an increase of $0.9 billion (37.4%) from the December 31, 2013 balance of $2.4 billion, and up $1.8 billion (117.2%) from the March 31, 2013 balance of $1.5 billion.
- Loans held for sale (principally mortgage warehouse loans) were $698 million at March 31, 2014, down $50 million (6.7%) from the December 31, 2013 balance of $748 million, and down $662 million (48.7%) from the March 31, 2013 balance of $1.4 billion.
- Total deposits increased $646 million (21.8%) during Q1 2014 to $3.6 billion as of March 31, 2014. Total deposits increased $1.1 billion (42.2%) from March 31, 2013.
- Net interest income was $29.5 million for Q1 2014 compared to $22.5 million for Q1 2013, an increase of 31.0%.
- Total revenues (net interest income plus non-interest income) before provisions for loan losses grew from $27.4 million in Q1 2013 to $37.1 million in Q1 2014, an increase of 35.3%.
- Provision expense for Q1 2014 was $4.4 million, principally as a result of the provision recorded to reflect the first quarter loan growth. This compares with a recovery of $0.5 million in Q4 2013 and a recovery of $0.1 million in Q1 2013.
- Q1 2014 pre-tax pre-provision income of $15.9 million was up $2.6 million, or 19.5%, from Q4 2013, and up $5.0 million, or 45.9%, from Q1 2013. The pre-tax pre-provision ratio remained relatively stable at approximately 1.5% of average assets.
- Q1 2014 non-interest expense of $21.2 million declined $1.1 million (5.1%) from Q4 2013 non- interest expense and increased $4.7 million (28.5%) compared to Q1 2013 non-interest expense of $16.5 million.
- Non-performing loans not covered by FDIC loss share agreements were $12.6 million at March 31, 2014, a decrease of $0.9 million (6.7%) from the December 31, 2013 non-performing non- covered amount of $13.5 million. Non-covered non-performing loans were 0.32% of total non- covered loans as of March 31, 2014.
- Total reserves for loan losses on originated loans were 165.4% of non-performing loans and 0.89% of all loans held for investment.
- Commercial and industrial loans, including owner occupied commercial real estate loans totaled $801 million as of March 31, 2014, up $38 million (4.9%) from December 31, 2013, and up $131 million (19.6%) from the March 31, 2013 balance of $670 million.
- Capital ratios
1remained strong but declined during the period due to the increase in income producing assets. March 31, 2014 estimated Tier 1 Leverage was 9.10%, and Total Risk-Based Capital was 11.45%. The Company's capital ratios exceed the levels established for "well capitalized" banks.
"In Q1 2014 we focused our energies on increasing earning assets and aggregating deposits, more fully utilizing the capital raised during 2013," stated Jay Sidhu, Chairman and CEO of Customers Bancorp, Inc. "We originated nearly $700 million of loans during the first quarter of 2014 while maintaining our underwriting standards, and grew our deposits by over $600 million. In doing so we positioned the Company to achieve great things in 2014 and future years. We will continue to focus on developing revenues and controlling our expenses to build shareholder value as we move deeper into 2014."
Net Income, Earnings Per Share and Tangible Book Value
Q1 2014 net income of $8.1 million is up $0.9 million, or 13.2%, from Q1 2013. Q1 2014 diluted earnings per share is $0.32 with 25.3 million diluted shares, compared to Q1 2013 earnings of $7.2 million and diluted earnings per share of $0.38 with 18.9 million diluted shares. Customers' tangible book value per share increased to $16.35 as of March 31, 2014 compared to $14.78 as of March 31, 2013, an increase of 10.6%. The increase in net income in Q1 2014 compared to Q1 2013 is primarily due to increased net interest income, fueled by strong loan growth, while maintaining outstanding asset quality and growing deposits. The increasing tangible book value reflects Customers' strategic commitment to consistently maintain and grow tangible book value per share with the expectation that it will eventually result in superior shareholder value creation.
Net Interest Margin
The net interest margin decreased 14 basis points to 2.93% in Q1 2014 compared to Q4 2013, and decreased 33 basis points from Q1 2013. The Q1 2014 net interest margin has decreased due to the run-off of maturing higher yielding loans, and addition of lower yielding loans as we grew the loan portfolio by $900 million in Q1 2014. In addition, certain deposits and borrowings were extended during the quarter with higher rates and longer terms to maturity to better insulate the bank from future movement in interest rates.
Q1 2014 non-interest income of $7.6 million was down $0.3 million compared to $7.9 million in Q4 2013, and up $2.7 million compared to $4.9 million in Q1 2013. The Q1 2014 non-interest income decrease compared to Q4 2013 resulted from lower mortgage warehouse transaction fees (down $0.6 million) activity reflecting the seasonal decrease in volume, mortgage banking fees (down $0.7 million) as originations decreased in the period, and gains on sale of Small Business Administration ("SBA") loans (down $0.5 million), offset in part by an increase in gains on sales of securities (up $1.6 million) as Customers shortened the duration of the securities portfolio.
Operating expenses in Q1 2014 of $21.2 million decreased $1.1 million compared to Q4 2013 operating expenses of $22.3 million. Q1 2014 operating expenses supported greater business activities as Customers grew its loan portfolio significantly during Q1 2014 and the Company continued to invest in its commercial and industrial lending teams while rightsizing its mortgage banking business. These investments resulted in a larger organization and increased occupancy, technology, and other operating costs. However, these increased needs were largely offset in the quarter by efforts to manage costs and increase operating efficiencies including strategic realignment of staffing and compensation, higher bonus accrual in Q4 2013, and deferral of direct origination costs on the large volume of new loan originations.
Provision for Loan Losses and Asset Quality
The Q1 2014 provision for loan losses was $4.4 million, compared to a Q4 2013 provision reversal of ($0.5) million, and a Q1 2013 provision reversal of ($0.1) million
Customers separates its loan portfolio into "covered" and "non-covered" loans for purposes of analyzing and managing asset quality. Covered loans are those loans that are covered by FDIC purchase and assumption, or loss sharing, agreements, and for which Customers is reimbursed 80% of allowable incurred losses. Covered loans totaled $61.6 million as of March 31, 2014, $66.7 million as of December 31, 2013, and $102.0 million as of March 31, 2013. Non-accrual covered loans totaled $5.5 million at March 31, 2014, $5.6 million at December 31, 2013 and $10.4 million at March 31, 2013. Covered real estate owned totaled $9.3 million as of March 31, 2014, $7.0 million as of December 31, 2013 and $4.3 million as of March 31, 2013.
Non-covered loans are all loans not covered by the FDIC agreements. Non-covered loans includes loans accounted for as held for sale as well as loans accounted for as held for investment. Non-covered loans totaled $4.0 billion as of March 31, 2014, $3.1 billion as of December 31, 2013, and $2.9 billion as of March 31, 2013. Non-accrual non-covered loans totaled $12.6 million as of March 31, 2014 (0.32% of total non-covered loans), $13.5 million (0.43% of total non-covered loans) as of December 31, 2013 and $21.4 million (0.75% of total non-covered loans) as of March 31, 2013. Non-covered loans 30 to 89 days delinquent at March 31, 2014 totaled $10.3 million, or 0.26% of non-covered loans.
Conference Call Date: April 21, 2014 Time: 4:15 pm ET US Dial-in: 877-941-1427 International Dial-in: 480-629-9664 Conference ID: 4678335 Webcast: http://public.viavid.com/index.php?id=108593
Customers Bancorp, Inc. is a bank holding company located in Wyomissing, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $5.0 billion. A member of the Federal Reserve System and deposits insured by the Federal Deposit Insurance Corporation ("FDIC"), Customers Bank provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, New York, Rhode Island, Massachusetts, and New Jersey. Committed to fostering customer loyalty, Customers Bank uses a High Tech/High Touch strategy that includes use of industry-leading technology to provide customers better access to their money, as well as a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.
Customers Bancorp, Inc. is listed on the NASDAQ exchange under the symbol CUBI. Additional information about Customers Bancorp, Inc. can be found on the company's website, www.customersbank.com.
"Safe Harbor" Statement
In addition to historical information, this press release may contain "forward-looking statements" which are made in good faith by Customers Bancorp, Inc., pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements with respect to Customers Bancorp, Inc.'s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words "may," "could," "should," "pro forma," "looking forward," "would," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.'s control). Numerous competitive, economic, regulatory, legal and technological factors, among others, could cause Customers Bancorp, Inc.'s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.'s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K. Customers Bancorp, Inc. does not undertake to update any forward looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank.
Chairman & CEO
President & COO
Robert Wahlman CFO
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 26, 2017 05:45 PM EDT Reads: 2,406
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Apr. 26, 2017 05:45 PM EDT Reads: 665
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Apr. 26, 2017 05:45 PM EDT Reads: 2,251
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 26, 2017 05:30 PM EDT Reads: 2,139
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 26, 2017 05:15 PM EDT Reads: 2,765
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Apr. 26, 2017 05:00 PM EDT Reads: 903
Back in February of 2017, Andrew Clay Schafer of Pivotal tweeted the following: “seriously tho, the whole software industry is stuck on deployment when we desperately need architecture and telemetry.” Intrigue in a 140 characters. For me, I hear Andrew saying, “we’re jumping to step 5 before we’ve successfully completed steps 1-4.”
Apr. 26, 2017 04:30 PM EDT Reads: 1,756
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Apr. 26, 2017 04:15 PM EDT Reads: 546
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 26, 2017 03:15 PM EDT Reads: 1,419
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 26, 2017 03:00 PM EDT Reads: 1,163
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing be...
Apr. 26, 2017 02:45 PM EDT Reads: 446
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
Apr. 26, 2017 02:30 PM EDT Reads: 401
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 26, 2017 02:30 PM EDT Reads: 1,443
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Apr. 26, 2017 01:45 PM EDT Reads: 2,371
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Apr. 26, 2017 01:45 PM EDT Reads: 898