Customers Bank releases quarterly results

For Customers Bancorp, the third quarter was one to celebrate.

“This quarter’s results mark a milestone in our company’s history, with more income earned in a single quarter than any of our previous full-year earnings,” Customers Bancorp Chairman and CEO Jay Sidhu said in a statement released just after the close of trading Thursday.

The West Reading-based parent of Customers Bank said it had net income of $110.2 million, or $3.25 per diluted share, for the quarter that ended Sept. 30. That is a 120% increase from the same quarter for 2020.

Core earnings were $113.9 million, or $3.36 per share, a 178% increase over the year.

“Our organic growth rates remain remarkable,” Sidhu said, “with our C&I loans growing 19% year-over-year, consumer installment loans growing 32%, and noninterest bearing deposits growing 113%. In addition, we funded, either directly or indirectly, about 347,000 PPP loans totaling $10 billion, helping those businesses deal with adversities related to the pandemic with most of them thriving today. We also earned $346 million of deferred origination fees from the SBA through the PPP loans and we could not be prouder of our participation in and execution of this program.”

Customers reported that total loans and leases decreased $1.1 billion, or 6.6%, to $15.5 billion when compared to the yearago period. Commercial loans to mortgage companies declined $1.3 billion to $2.6 billion compared to the year-ago period.

Paycheck Protection Program loans were $5 billion in the quarter, which was relatively unchanged from the year-ago period, driven by $4.7 billion in originations and purchases from the latest round of PPP loans, offset by $4.7 billion in forgiveness, repayments and associated net deferred fees from the new round and earlier rounds. Excluding PPP loans and commercial loans to mortgage companies, total loans and leases increased $238.4 million, or 3.1%, as the loan mix continued to improve year-over-year.

Total deposits increased $6.1 billion, or 56.6% over the year, to $17 billion.

Commercial and industrial loans and leases increased $417.9 million to $2.6 billion, commercial real estate owner occupied loans increased $98.4 million to $656 million, consumer installment loans increased $390.7 million to $1.6 billion and construction loans increased $75.6 million to $198.6 million.

These increases in loans and leases were partially offset by planned decreases in multi-family loans of $563.1 million to $1.4 billion, commercial real estate nonowner occupied loans of $89.2 million to $1.1 billion and residential mortgages of $83.0 million to $260.8 million.

“Looking ahead, we see continued growth in core C&I and consumer loans offsetting the continued expected seasonal and yield curve related decreases in loans to mortgage companies at the end of this year,” Sidhu said.