Slide 1: Investor Presentation: Q1'25
Let’s take on tomorrow. Investor Presentation: Q1’25 April 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Let’s take on tomorrow. In addition to historical information, this presentation may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include st
Slide 3: Customers Bancorp Franchise
Customers Bancorp Franchise Let’s take on tomorrow. Net Promoter Score Measuring business customer satisfaction and loyalty 73 41 Community Banking Customers Bank Banking Industry Serves small and medium sized businesses and individuals Benchmark1 • Regional Community C&I • Multifamily and Investmen
Slide 4: Customers Bank: "Built to Last"
Customers Bank: “Built to Last” Let’s take on tomorrow. Customers Bank’s 3 Core Tenants Clear Strategic Direction 1 Key Financial Performance Drivers 2 Strong Risk Management 3 Place the Client at the Center of Deliver Solid Financial Results across the Enhance the Bank’s Risk Framework and Everythi
Slide 5: Key Accomplishments
Key Accomplishments Let’s take on tomorrow. Let’s take on tomorrow. Accretive Net Interest Income & Operational Excellence & Robust Loan Growth Strategic Investments Deposit Performance Net Interest Margin (NIM) Surpassed original targets for initial Average cost of deposits decline by Bucking the i
Slide 6: Financial Highlights - GAAP
EARNINGS REVIEW Financial Highlights - GAAP Let’s take on tomorrow. Q1’25 Q1’25 (vs. Q4’24) Highlights Profitability Balance Sheet Credit Diluted EPS 3.13% $22.4B 0.26% $0.29 vs. 3.11% +1% +1 bps ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED NIM Total Assets NPA Ratio Net Income 0.23% $15.1B $
Slide 7: Financial Highlights - Core
EARNINGS REVIEW Financial Highlights - Core Let’s take on tomorrow. Q1’25 Q1’25 (vs. Q4’24) Highlights Profitability Balance Sheet Credit Core EPS1,2 3.13% $22.4B 0.26% $1.54 vs. 3.11% +1% +1 bps ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED NIM Total Assets NPA Ratio Core Earnings1,2 0.97% $1
Slide 8: Accretive Deposit Performance
ACCRETIVE DEPOSIT PERFORMANCE Continued Execution of Deposit Franchise Transformation Let’s take on tomorrow. Total Deposits New Banking Team Deposits1 $ billions $ millions $2,130 • Average cost of deposits declined 25 basis points in Q1’25 $1,729 $1,396 • Strong noninterest bearing deposit growth
Slide 9: Team Recruitment Driving Franchise Value
ACCRETIVE DEPOSIT PERFORMANCE Team Recruitment Driving Franchise Value Let’s take on tomorrow. CUBI Join Date 2023 2024 2025+ Venture Banking Team Commercial Banking Teams Next Phase of Growth Deposits: $0.9B Deposits: $1.3B New Team Recruitment • Top 5 competitor in venture • 10 highly experienced
Slide 10: Robust Loan Growth
ROBUST LOAN GROWTH Industry Leading Loan Growth With Contributions Diversified Across The Franchise Let’s take on tomorrow. Loans - HFI QoQ Loan Growth1 by Verticals $ billions $ millions • Commercial HFI loan growth of $460 million or 3% QoQ • Top growth verticals included commercial banking teams,
Slide 11: Net Interest Income & Net Interest Margin
NET INTEREST INCOME & NET INTEREST MARGIN Continued Margin Expansion in the Quarter Driven by Reduction in Funding Costs Let’s take on tomorrow. Net Interest Income Key Highlights $ millions $160.4 $167.8 $167.4 • 2 basis points margin expansion in the quarter primarily driven by decline in deposit
Slide 12: Operational Efficiency and Strategic Investments
OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS Peer Leading Efficiency While Investing In Our Business Let’s take on tomorrow. Core Non-Interest Expense1 Core Non-Interest Expense1 / Average Assets $ millions percent • Strong core efficiency ratio1 while continuing to invest in the franchise • CUB
Slide 13: Expenses
OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS Achieved $30 Million In Operational Excellence; $10 Million Higher Than Initial Target of $20 Million Let’s take on tomorrow. TARGET STATUS Treasury management fee income from clients Achieved Annual Run-Rate of Higher Fees using instant payments and
Slide 14: Tangible Book Value Growth
TANGIBLE BOOK VALUE GROWTH Tangible Book Value Approaching $55 Per Share Let’s take on tomorrow. Tangible Book Value1 Key Highlights per share • Tangible book value1 has more than doubled over the last five years2 ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED • 5-year+ CAGR in TBV1 of 15%2 +13
Slide 15: Strong Capital and Liquidity
STRONG CAPITAL AND LIQUIDITY Strong Capital Levels Provide Significant Flexibility Let’s take on tomorrow. Q1’24 Q2’24 Q3’24 Q4’24 Q1’251 Key Highlights CET1 Risk-Based Capital percent ` 12.6% 12.8% 12.5% 12.1% 11.7% • TCE/TA3 up over 40 bps YoY inclusive of balance sheet growth, securities repositi
Slide 16: Maintaining Superior Credit Quality
MAINTAINING SUPERIOR CREDIT QUALITY Credit Metrics Remain Stable Let’s take on tomorrow. Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 NPAs % of Total Assets Q1’25, percent NPAs % of Total Assets 0.33% percent 0.26% -7 bps 0.17% 0.23% 0.22% 0.25% 0.26% CUBI Regional Bank Peers1 Commercial NCOs CRE % of Loans-HFI pe
Slide 17: 2025 Management Outlook
2025 Management Outlook Let’s take on tomorrow. Prior Outlook Current Outlook Metrics FY 2024 Notes FY 2025 FY 2025 Deposit Growth $18.8B 5% - 9% Loan Growth $14.7B 7% - 10% High end of the range ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED Net Interest Income $654M 3% - 7% 6% - 10% normalizi
Slide 18: Concluding Perspectives
Concluding Perspectives Let’s take on tomorrow. Let’s take on tomorrow. Deposit Franchise Transformation Robust Loan Growth Lowered deposit costs by 25 basis points in the quarter 12% annualized loan growth1 in Q1’25 contrasting with industry trends Transforming the deposit franchise by improving th
Slide 19: Analyst Coverage
ANALYST COVERAGE B. Riley Securities, Inc. Piper Sandler Companies Hal Goetsch Frank Schiraldi D.A. Davidson Companies Raymond James Peter Winter Steve Moss Hovde Group Stephens Inc. David Bishop Matt Breese Keefe, Bruyette & Woods Inc. Kelly Motta Maxim Group LLC Michael Diana
Slide 20: Appendix
APPENDIX SSeeeeseeaeoeS& SSeeeeeeeSe8e& SSeeeseeees8eS& SSeeaaeoeeee8& SEeeeeeeoeoeeSe2®&
Slide 21: What Makes Customers Bank Unique?
What Makes Customers Bank Unique? Let’s take on tomorrow. Ranked #1 among banks with $10 billion to $50 billion in assets CULTURE Client Centric Entrepreneurial Consistent Focus Culture Banking Recruiter of Top Entrepreneurs Talent ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED FOCUS Target Top
Slide 22: 2025 Priorities
2025 Priorities Let’s take on tomorrow. 1 Client-centric culture resulting in high client satisfaction rates 2 Continue deposit transformation and grow loan portfolio Let’s take on tomorrow. ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED Grow net interest income led by interest expense reductio
Slide 23: Loan Book Transformation Driving Franchise Value
5 Year Loan Book Transformation Driving Franchise Value Let’s take on tomorrow. Total Loans HFI Total Loans HFI percent, Q1’20 percent, Q1’25 Deemphasized less strategic and 6% higher credit risk verticals by 13% 9% 1% 11% 4% reallocating balance sheet into 7% franchise enhancing specialized 4% 10%
Slide 24: Demonstrated Sustainable Organic Growth
Demonstrated Sustainable Organic Growth Increasing Revenue, EPS and TBVPS at 15%+ CAGR Over the Last Five Years Let’s take on tomorrow. Total Revenue CAGR Core EPS1,2 CAGR FY’19-FY’24, percent FY’19-FY’24, percent 15% 20% 10% 7% ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED CUBI Top Quartile $
Slide 25: Robust Liquidity Position
STRONG CAPITAL AND LIQUIDITY Robust Liquidity Position Let’s take on tomorrow. Immediately Available Liquidity Loans-HFI to Deposits $ billions Q1’25, percent $9.1 $8.7 86% 80% $3.8 $3.4 $0.9 $1.2 ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED CUBI Regional Bank Peers2 $4.4 $4.0 Q4’24 Q1’25 Bor
Slide 26: Consumer Installment Loans – Portfolio Credit Metrics
Consumer Installment Loans – Portfolio Credit Metrics Let’s take on tomorrow. Weighted average life of ~2.2 years FICO Score 1 Debt to Income Ratio 1 Borrower Income Average FICO Score1 ~739 Average DTI1 ~20% Average Borrower Income ~$104k 660-679 700-749 0-9.99% 40 – 49.99% <$50K >$100K 680-699 750
Slide 27: Securities Portfolio Characteristics
Securities Portfolio Characteristics Let’s take on tomorrow. Investment Securities – AFS Investment Securities – HTM percent, Q1’25 percent, Q1’25 • Spot yield: 5.50%1 • Spot yield: 3.95% • Effective duration: 3.6 years1 • Effective duration: 4.1 years • Floating rate securities: ~22%1 • Floating ra
Slide 28: Aggregated Opportunistic Balance Sheet Repositioning Over Last 2 Quarters
Aggregated Opportunistic Balance Sheet Repositioning Over Last 2 Quarters Let’s take on tomorrow. Details Use of Proceeds 1 Higher Yielding ~$400 million fixed rate GNMA pass Securities Reduced ~$1.1 billion Securities through securities at 5.3% weighted average yield and 0% RWA 2 Weighted Average B
Slide 29: 2025 Proxy Peers
2025 Proxy Peers Let’s take on tomorrow. • Atlantic Union • Independent • Commerce • Old National • FB Financial • Pinnacle ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED • First Busey • TowneBank • F.N.B • United Community • Fulton Note: Excludes the following banks due to lack of available di
Slide 30: Robust Sources of Liquidity
Robust Sources of Liquidity Let’s take on tomorrow. Liquidity Sources ($000's) 1Q 25 4Q 24 QoQ Change Cash and Cash Equivalents $3,428,691 $3,785,931 ($357,241) FHLB Available Borrowing Capacity $1,235,992 $947,968 $288,024 FRB Available Borrowing Capacity $3,986,593 $4,357,519 ($370,926) Investment
Slide 31: Allowance for Credit Losses for Loans and Leases
Allowance for Credit Losses for Loans and Leases Let’s take on tomorrow. March 31, 2025 December 31, 2024 Allowance for Credit Lifetime Amortized Allowance for Lifetime Loss Amortized Cost(1) Losses Loss Rate(2) Cost Credit Losses Rate(3) ($ in thousands) Loans and Leases Receivable: Commercial: Com
Slide 32: Reconciliation of Non-GAAP Measures - Unaudited
Reconciliation of Non-GAAP Measures - Unaudited Let’s take on tomorrow. Customers believes that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other fi
Slide 33: Core Earnings and Adjusted Core Earnings
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Core Earnings and Adjusted Core Earnings - Customers Bancorp Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 (dollars in thousands, except per share data) USD Per share USD Per share USD Per share USD Per share USD Per share GA
Slide 34: Core Earnings and Adjusted Core Earnings
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Core Earnings and Adjusted Core Earnings - Customers Bancorp 2024 2023 2022 2021 2020 2019 (dollars in thousands, except per share data) USD Per share USD Per share USD Per share USD Per share USD Per share USD Per shar
Slide 35: Core Return on Average Assets and Adjusted Core ROAA
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp (dollars in thousands except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP net income $ 12,912 $ 26,915 $ 46,74
Slide 36: Core Return on Average Common Equity and Adjusted Core ROAE
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp (dollars in thousands except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP net income to common s
Slide 37: Core Pre-Tax Pre-Provision Net Income and ROAA
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp (dollars in thousands except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP ne
Slide 38: Core Efficiency Ratio and Adjusted Core Efficiency Ratio
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Core Efficiency Ratio and Adjusted Core Efficiency Ratio - Customers Bancorp (dollars in thousands except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP net interest income $ 167,446 $ 167,821 $ 158,545 $
Slide 39: Core Non-Interest Expense to Average Total Assets
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Core Non-Interest Expense to Average Total Assets and Adjusted Core Non-Interest Expense to Average Total Assets- Customers Bancorp (dollars in thousands except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GA
Slide 40: Tangible Common Equity to Tangible Assets
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Tangible Common Equity to Tangible Assets - Customers Bancorp (dollars in thousands except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP total shareholders' equity $ 1,864,560 $ 1,836,683 $ 1,801,180 $ 1,
Slide 41: Tangible Book Value per Common Share
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Tangible Book Value per Common Share - Customers Bancorp ©2025 CUSTOMERS BANCORP, INC. / ALL RIGHTS RESERVED (dollars in thousands except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 GAAP total shareholders'
Slide 42: Tangible Book Value per Common Share
Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Let’s take on tomorrow. Tangible Book Value per Common Share - Customers Bancorp (dollars in thousands except per share data) Q4 2024 Q4 2023 Q4 2022 Q4 2021 Q4 2020 Q4 2019 GAAP total shareholders' equity $ 1,836,683 $ 1,638,394 $ 1,402,961 $