cubi-20210428

Exhibit 99.1

Customers Bancorp, Inc.

701 Reading Avenue

West Reading, PA 19611

Contacts:
Jay Sidhu, Chairman & CEO 610-935-8693
Richard Ehst, President & COO 610-917-3263
Carla Leibold, CFO 484-923-8802

Sam Sidhu, Head of Corporate Development 212-843-2485

Customers Bancorp Reports First Quarter 2021 Results

Net Income of $33.2 million, or $1.01 Per Diluted Share,

Record Core Earnings of $70.3 million, or $2.14 Per Diluted Share

5th Largest PPP Lender (Round 3) in U.S. and #1 in Peer Group

~$200 million of Expected Deferred Origination Fees
Earned In Just 2.5 Months of 2021

•Q1 2021 net income available to common shareholders was $33.2 million, or $1.01 per diluted share. Q1 2021 results were impacted by $38 million of one-time merger-related and tax expenses resulting from the divestiture of BankMobile Technologies, Inc. ("BMT") on January 4, 2021. These items and BMT’s historical financial results for periods prior to the divestiture have been reflected in the consolidated financial statements as discontinued operations. Current and prior period core earnings exclude the impact of discontinued operations.

•Q1 2021 core earnings (a non-GAAP measure) were $70.3 million, or $2.14 per diluted share, up 29% over Q4 2020 and 1,282% over Q1 2020.

•Q1 2021 ROAA was 0.80% and Core ROAA (a non-GAAP measure) was 1.61%. Q4 2020 ROAA was 1.23% and Core ROAA (a non GAAP measure) was 1.26%.

•Q1 2021 ROCE was 14.66% and Core ROCE (a non-GAAP measure) was 31.03%. Q4 2020 ROCE was 24.26% and Core ROCE (a non-GAAP measure) was 25.06%.

•Adjusted pre-tax pre-provision net income (a non-GAAP measure) for Q1 2021 was $86.8 million, an increase of 11% over Q4 2020 and 96% over Q1 2020. Q1 2021 adjusted pre-tax pre-provision return on average assets (a non-GAAP measure) was 1.90% compared to 1.70% for Q4 2020 and 1.54% for Q1 2020.

•Q1 2021 results include a net benefit to (or release from) provision for credit losses on loans and leases of $2.9 million. At March 31, 2021, the coverage of credit loss reserves for loans and leases held for investment, excluding Paycheck Protection Program ("PPP") loans (a non-GAAP measure), was 1.71% compared to 1.90% at December 31, 2020.

•Non-performing assets were 0.26% of total assets at March 31, 2021 compared to 0.39% at December 31, 2020. Allowance for credit losses equaled 264% of non-performing loans at March 31, 2021, up from 204% at December 31, 2020.

•Net interest income for Q1 2021 grew $9.8 million, or 8.0%, over Q4 2020 and $51.4 million, or 63.2% over Q1 2020.

•Q1 2021 net interest margin (a non-GAAP measure) increased 22 basis points from Q4 2020 to 3.00%, mostly due to PPP loans at an average yield of 3.41% due to the acceleration of deferred fee recognition upon loan forgiveness. Q1 2021 net interest margin, excluding the impact of PPP loans (a non-GAAP measure), was stable at about 3.0%.

•Q1 2021 balance sheet restructuring, which included terminating $850 million of cash flow hedges and selling $325 million of investment securities is expected to contribute to net interest margin expansion of about 15 basis points while neutral to Q1 2021 capital levels.

•Total loans and leases increased $5.8 billion, or 56.6% year-over-year, driven by PPP loans of $5.2 billion and strong growth in short-term commercial loans to mortgage companies of $890.1 million. Total loans and leases, excluding PPP loans (a non-GAAP measure), increased $668.8 million, or 6.5% year-over-year.

•Total deposits increased $4.1 billion, or 48.2% year-over-year, which included a $2.9 billion or 96.4% increase in demand deposits. The total cost of deposits dropped to 0.53% in Q1 2021, a decline of 98 basis points from 1.51% in the year-ago quarter.

•Total deferments declined to $189.1 million, or 1.7% of total loans and leases excluding PPP loans (a non-GAAP measure) at March 31, 2021, down from $750.5 million, or 7.3% of total loans and leases excluding PPP loans (a non-GAAP measure) at July 24, 2020.

•Q1 2021 efficiency ratio was 48.89% compared to 54.48% for Q1 2020. Q1 2021 core efficiency ratio was 41.13% compared to 52.97% in Q1 2020 (non-GAAP measures).

•We expect to launch a private real-time, blockchain-based B2B payments platform with integration of digital and legacy payment rails. The platform will deliver enhanced payments functionality for our business clients and is expected to generate additional deposit growth in targeted niches, such as real estate, monetary and currency exchanges and institutional investments.

West Reading, PA, April 28, 2021 - Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively "Customers" or "CUBI"), today reported first quarter 2021 ("Q1 2021") net income to common shareholders of $33.2 million, or $1.01 per diluted share, down from fourth quarter 2020 ("Q4 2020") net income to common shareholders of $52.8 million, or $1.65 per diluted share. Q1 2021 results included a net loss from discontinued operations of $38.0 million, which reduced GAAP earnings by $1.16 per diluted share. Core earnings for Q1 2021 totaled $70.3 million, or $2.14 per diluted share, up from Q4 2020 core earnings of $54.6 million, or $1.71 per diluted share (non-GAAP measures). Net interest margin, tax equivalent ("NIM") expanded 22 basis points during Q1 2021 to 3.00% from 2.78% in Q4 2020 (non-GAAP measures).

“We are extremely pleased with our financial results for the first quarter and are excited that 2021 is off to a great start,” remarked Customers Bancorp Chairman and CEO, Jay Sidhu. “At this time, we have close to 200,000 of loans approved by the SBA in Round 3 of the Paycheck Protection Program ("PPP") as we continue to support small businesses, not-for-profits, and the communities we serve while improving the financial position of Customers Bank at the same time. In total, we expect to generate approximately $400 million of pre-tax revenues from our participation in this program, placing us in the Top 5 in the U.S., all because of our entrepreneurial style, effective risk management and technology-based execution. We also continue to make great strides in improving our core profitability while maintaining superior asset quality. The restructuring of our balance sheet in Q1 2021 combined with the on-going efforts to reduce total deposit costs is expected to drive further net interest margin expansion in future quarters. Our tremendously successful execution on these initiatives will result in significant capital accretion, leaving us well positioned to support future growth and to possibly consider adopting a common stock repurchase program or redeeming all or a portion of our preferred stock in 2021 or 2022,” Mr. Sidhu concluded.

Key Balance Sheet Trends

Total loans and leases increased $5.8 billion, or 56.6%, to $16.2 billion at March 31, 2021 compared to the year-ago period. PPP loans were $5.2 billion at March 31, 2021. Additionally, the loan mix improved year-over-year as commercial loans to mortgage companies increased $0.9 billion to $3.5 billion, commercial and industrial loans and leases increased $147.2 million to $2.2 billion, consumer installment loans increased $89.9 million to $1.4 billion, commercial real estate owner occupied loans increased $46.1 million to $590.1 million and construction loans increased $41.4 million to $156.8 million. The commercial loans to mortgage companies trend has been a function of greater refinance activity due to sharply lower interest rates, an increase in home purchase volumes, and market share gains from other banks. These increases in loans and leases were partially offset by decreases in multi-family loans of $409.5 million to $1.7 billion, residential mortgages of $69.1 million to $295.7 million and commercial real estate non-owner occupied loans of $58.0 million to $1.2 billion. “Looking ahead, we see continued growth in core C&I loans offsetting some of the expected decreases in loans to mortgage companies in the second half of this year," stated Sidhu.

Total deposits increased $4.1 billion, or 48.2%, to $12.5 billion at March 31, 2021 compared to the year-ago period. Total demand deposits increased $2.9 billion, or 96.4%, to $5.9 billion, money market deposits increased $1.6 billion, or 55.5%, to $4.4 billion, and savings deposits increased $315.4 million, or 27.0%, to $1.5 billion. These increases were offset, in part, by a decrease in time deposits of $0.7 billion, or 52.4%, to $665.9 million. The total cost of deposits declined by 98 basis points to 0.53% in Q1 2021 from 1.51% in the year-ago quarter.

Very Strong Growth in Tangible Common Equity and Tangible Book Value Per Share

Customers experienced significant improvements in regulatory capital ratios in Q1 2021 as compared to a year ago. Customers Bancorp's tangible common equity (a non-GAAP measure) increased by $235.0 million to $967.3 million at March 31, 2021 from $732.3 million at March 31, 2020, and the tangible book value per common share (a non-GAAP measure) increased to $30.01 at March 31, 2021 from $23.27 at March 31, 2020, an increase of 29%. "This increase in tangible common equity and tangible book value per common share was achieved in spite of a decrease in retained earnings of $61 million recorded on January 1, 2020 upon the adoption of CECL," commented Mr. Sidhu. Customers remains well capitalized by all regulatory measures. At the Customers Bancorp level, the total risk based capital ratio (estimate) and tangible common equity to tangible assets ratio ("TCE ratio"), excluding PPP loans (a non-GAAP measure), were 12.5% and 7.1%, respectively, at March 31, 2021. At December 31, 2020, Customers Bancorp's total risk based capital ratio and TCE ratio, excluding PPP loans (a non-GAAP measure), were 11.9% and 6.4%, respectively. "As a consequence of PPP related income and a potential cyclical decline in mortgage warehouse loans, we expect our capital levels to increase sharply by the second half of 2021 with the TCE ratio excluding PPP loans to be about 8.5% by December 31, 2021," commented Customers Bancorp CFO, Carla Leibold.

Loan Portfolio Management During the COVID-19 Crisis

Over the last decade, Customers has developed a suite of commercial and retail loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s multifamily, mortgage warehouse, and specialty finance lines of business, for example, are characterized by conservative underwriting standards and low loss rates. Because of this emphasis, the Bank’s credit quality to-date has been healthy despite a highly adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, Customers employs a bottom-up data driven approach to analyze its commercial portfolio.

Strong commercial loan portfolio with very low concentration in COVID-19 impacted industries and CRE

•Total commercial deferments declined to $176.1 million, or 1.6% of total loans and leases, excluding PPP loans (a non-GAAP measure), at March 31, 2021, down from $202.1 million, or 1.8% of total loans and leases, excluding PPP loans, at December 31, 2020. Of the $176.1 million in total commercial deferments, $83.1 million, or 47.2%, were principal only deferments. Customers' commercial deferments peaked at about $1.2 billion in July 2020.

•Exposure to industry segments significantly impacted by COVID-19 is not substantial. At March 31, 2021, Customers had $84.6 million in energy and utilities exposure (with no deferments); $62.0 million in colleges

and universities (no deferments requested); $66.2 million in CRE retail sales exposure (mostly auto sales; with no deferments); $30.4 million in franchise restaurants and dining (with no deferments); and $26.9 million in entertainment only businesses (with no deferments).

•At March 31, 2021, the hospitality portfolio was $400.6 million, or 3.6% of total loans and leases, excluding PPP loans, with $125.9 million in deferment. Approximately 79.7% ($318.8 million) represents “flagged” facilities, with the majority of the non-flagged being high-end destination hotels in Cape May (NJ), Avalon (NJ), and Long Island (NY). The majority of the hotels, based on our recent assessment, have sufficient cash resources to get through the COVID-19 crisis and, for those who may need assistance, the Bank is working with them to bridge any potential cash flow gaps.

•At March 31, 2021, the healthcare portfolio was approximately $385 million, comprised predominantly of skilled nursing, which has been deemed an essential business and through a number of federal and state actions has been provided immunity from liability for COVID-19 related deaths. No deferments have been requested and there are no delinquencies.

•The multi-family portfolio is highly seasoned, with a weighted average loan to value of 62% as of quarter-end. 55% of the portfolio was in New York City, of which 71% was in rent controlled/regulated properties. As of March 31, 2021, $9.3 million of the portfolio was on deferment.

•At March 31, 2021, investment CRE had a weighted average loan to value of 64%, with approximately 53% of the portfolio housed in the New York and Philadelphia and surrounding markets. As of March 31, 2021, $4.4 million of the portfolio was on deferment, with minimal exposure to the office market.

Consumer installment, mortgage and home equity loan portfolios continue to perform well

•Total consumer-related deferments declined to $13.0 million, or 0.1% of total loans and leases, excluding PPP loans (a non-GAAP measure), at March 31, 2021, down from $16.4 million at December 31, 2020.

•The $1.4 billion consumer installment loan portfolio outperformed industry peers with deferments dropping to 0.5% and 30+ DPD delinquency at only 0.8%. Strong credit quality (avg. FICO at origination: 740), low concentration in at-risk job segments, and outstanding performance of CB Direct originations have resulted in solid results through the end of Q1 2021.

•The consumer installment portfolio has been managed to moderate growth and strengthening credit quality, by replacing run-off with CB Direct originations with strong FICO scores.

Key Profitability Trends

Net Interest Income

Net interest income totaled $132.7 million in Q1 2021, an increase of $9.8 million from Q4 2020, primarily due to a $341.9 million net increase in average interest-earning assets. Earning assets were driven by increases in consumer and commercial and industrial loans, investment securities and the new round of PPP loans, offset in part by PPP loan forgiveness from the first two rounds, which accelerated the recognition of net deferred loan origination fees, and decreases in commercial loans to mortgage companies and multi-family loans. The benefit of this net growth resulted in a 22 basis point linked-quarter increase in NIM (a non-GAAP measure) to 3.00%. Compared to Q4 2020, total loan yields increased 40 basis points to 4.02%. The increase is attributable to increased originations of consumer installment loans and PPP loan forgiveness from the first two rounds. The cost of interest-bearing deposits in Q1 2021 decreased by 7 basis points to 0.69% due to the on-going efforts to reduce the total cost of deposits and strategic decisions to reallocate deposit funding to lower cost deposits. Total borrowing costs increased by 6 basis points to 1.00% primarily due to lower utilization of the FRB PPP Liquidity Facility, costing 0.35%, due to PPP loan forgiveness from the first two rounds and excess cash available to fund PPP round 3 originations.

Provision for Credit Losses

The provision for credit losses on loans and leases in Q1 2021 was a $2.9 million benefit to (or release from) the provision, compared to a $2.9 million benefit (release) in Q4 2020. The benefit (release) in Q1 2021 primarily resulted from a continuing improvement in forecasts of macroeconomic conditions since Q4 2020. The allowance for credit losses on loans and leases represented 1.7% of total loans and leases receivable, excluding PPP loans (a non-GAAP measure) at March 31, 2021, compared to 1.9% at December 31, 2020, 2.0% at March 31, 2020, and 0.8% at December 31, 2019. Customers' non-performing loans at March 31, 2021 were only 0.3% of total loans and leases.

Non-Interest Income

Non-interest income totaled $18.5 million for Q1 2021, an increase of $2.4 million compared to Q4 2020. The increase in non-interest income primarily resulted from increases of $23.5 million in gain on sale of investment securities, $1.7 million in unrealized gain on derivatives, $1.1 million in other non-interest income, $0.6 million in mortgage warehouse transactional fees and $0.4 million in commercial lease income, partially offset by a $24.5 million increase in loss on cash flow hedge derivative terminations and $0.4 million decrease in unrealized gains on equity securities issued by a foreign entity.

The increase in gain on sale of investment securities primarily resulted from the sales of approximately $325 million of investment securities in Q1 2021, compared to sales of $10 million during Q4 2020. The increase in other non-interest income was driven by an unrealized loss on a loan held for sale of $1.1 million related to one commercial credit in Q4 2020. The increase in unrealized gain on derivatives was primarily due to an increased credit valuation adjustment of $0.9 million resulting from changes in market interest rates and increased interest rate swap fees of $0.8 million driven by higher volumes. The increase in mortgage warehouse transactional fees primarily resulted from a utilization surcharge, partially offset by a decrease in volume from lower seasonal demand. The increase in commercial lease income was driven by continued organic growth. The increase in losses realized from terminations of derivatives designated in cash flow hedging relationships resulted from the restructuring of the liability side of the balance sheet to improve overall funding mix and utilize excess cash on the balance sheet. The decrease in unrealized gain on equity securities resulted from a smaller improvement in fair value of equity securities issued by a foreign entity in Q1 2021 compared to Q4 2020.

Non-Interest Expense

Non-interest expense totaled $61.9 million for Q1 2021, an increase of $2.0 million compared to Q4 2020. The increase in non-interest expense primarily resulted from increases of $4.0 million in technology, communication and bank operations, $0.8 million in professional services, $0.6 million in advertising and promotion and $0.3 million in commercial lease depreciation, partially offset by decreases of $1.6 million in salaries and employee benefits, $1.3 million in other non-interest expense, $0.4 million in loan workout expenses and $0.3 million in merger and acquisition related expenses.

The increase in technology, communication and bank operations resulted from higher deposit servicing fees and interchange maintenance fees paid to BM Technologies, Inc., the successor entity of BMT that was divested on January 4, 2021, due to increased deposit balances and debit card transactions. The increase in professional services was primarily due to outside professional services used to support the PPP forgiveness process and our participation in PPP round 3. The increase in advertising and promotion was due to lower spend and credits from advertising agencies in 2020. The increase in commercial lease depreciation was driven by continued organic growth. The decrease in salaries and employee benefits was primarily due to lower incentives, sales commissions, and stock based compensation expense, partially offset by higher employee benefits and payroll taxes in Q1 2021. The decrease in loan workout expenses primarily resulted from a recovery from a commercial relationship. The decrease in merger and acquisition related expenses primarily resulted from a decrease in the Bank's direct costs incurred as the divestiture of BMT was completed on January 4, 2021.

Taxes

Income tax expense from continuing operations decreased by $5.8 million to $17.6 million in Q1 2021 from $23.4 million in Q4 2020 primarily due to an increase in investment tax credits in 2021 and the recording of net discrete tax benefits associated with the divestiture of BMT and the recognition of a deferred tax asset related to the outside basis difference of its foreign subsidiaries. Customers expects the full-year 2021 effective tax rate from continuing operations to be approximately 23% to 24%, which is comparable to previous years.

Net Loss From Discontinued Operations

The divestiture of BMT was completed on January 4, 2021, and BMT's historical financial results are presented as discontinued operations. The net loss from discontinued operations of $38.0 million, net of income tax expense of $17.7 million in Q1 2021 primarily resulted from previously reported restricted stock awards granted to certain team members of BMT and the effect of the divestiture being treated as a taxable asset sale for tax purposes, offset in part by a tax

benefit related to the restricted stock awards. BMT’s historical financial results for periods prior to the divestiture have been reflected in Customers' consolidated financial statements as discontinued operations.

Outlook

“Looking ahead, we are very optimistic about the prospects of our company. The ongoing digital transformation of Customers Bancorp has allowed us to be a major participant in the third round of PPP and to incubate new lines of businesses that leverage our fintech relationships. We expect to launch a private real-time, blockchain-based B2B payments platform with integration of digital and legacy payment rails. The platform will deliver enhanced payments functionality for our business clients and is expected to generate additional deposit growth in targeted niches, such as real estate, monetary and currency exchanges and institutional investments. We also expect our tangible common equity and regulatory capital levels to achieve targeted levels within the next 12 months and our credit quality to remain in line with or better than peers. The financial benefits of PPP aside, we project our recurring earnings power to expand to about the $4.00 level during 2021 and 2022 and remain on track to achieve $6.00 in core EPS in 2026,” concluded Mr. Sidhu.

Our updated financial guidance is as follows:

•Loan growth, excluding PPP and mortgage warehouse balances, is expected to average in the mid-to-high single digits over the next several quarters.

•The balance of commercial loans to mortgage companies is expected to decline to $1.6-$2.4 billion at December 31, 2021.

•The Total Capital Ratio is expected to be about 14.0% by year-end 2021. The TCE ratio excluding PPP loans is expected to be about 8.5% by year-end 2021.

•We project the NIM excluding PPP loans to expand into the 3.10%-3.30% range by Q4 2021.

•We project an effective tax rate from continuing operations for 2021 of 23.0%-24.0%.

•We expect to earn at least $5.00 in core EPS in 2021 and 2022 and remain on track to earn $6.00 in core EPS in 2026. Our core EPS guidance includes the net interest income expected to be earned on the PPP loans.

2021 NIM expansion is expected to be achieved by:

•Remixing the loan portfolio away from commercial loans to mortgage companies toward other C&I categories and consumer loans.

•Restructuring of the asset and liability side of the balance sheet that was completed in Q1 2021.

•Bringing our total cost of deposits down to around 40 basis points by Q2 2021.

BankMobile Technologies, Inc.:

•On January 4, 2021, Customers completed the previously announced divestiture of BMT, the technology arm of the BankMobile segment, to Megalith Financial Acquisition Corp., a Delaware corporation ("Megalith"). In connection with the closing of the divestiture, Megalith changed its name to “BM Technologies, Inc.” ("BMTX"). Following the completion of the divestiture of BMT, BankMobile segment's serviced deposits and loans and the related net interest income have been combined with Customers’ financial condition and the results of operations as a single reportable segment. BMT’s historical financial results for periods prior to the divestiture have been reflected in Customers' consolidated financial statements as discontinued operations. The assets and liabilities of BMT have been presented as "Assets of discontinued operations" and "Liabilities of discontinued operations" on the consolidated balance sheets. BMT's operating results have been presented as "Discontinued operations" within the consolidated financial statements and prior period amounts have been reclassified to conform with the current period presentation.

•All Customers Bancorp shareholders on record on December 18, 2020 received approximately $73 million in value of BMTX stock at closing date of the transaction in the form of a special distribution.

Webcast

Date: Thursday, April 29, 2021

Time: 9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com/investor-relations/ and at the Customers Bancorp 1st Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing Customers' Communications & Marketing Director, David Patti at [email protected]; questions may also be asked during the webcast through the webcast application.

The webcast will be archived for viewing on the Customers Bancorp Investor Relations page and available beginning approximately two hours after the conclusion of the live event.

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is a bank holding company located in West Reading, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank, a full-service bank with $18.8 billion in assets at March 31, 2021. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking and lending services to small and medium-sized businesses, professionals, individuals and families. Services and products are available wherever permitted by law through mobile-first apps, online portals, and a network of offices and branches.

“Safe Harbor” Statement

In addition to historical information, this press release 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 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 events and 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, including: the adverse impact on the U.S. economy, including the markets in which we operate, of the coronavirus outbreak, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that effect market interest rates and the money supply; actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; and the effects of changes in accounting standards or policies, including Accounting Standards Update ("ASU") 2016-13, Financial Instruments—Credit Losses ("CECL"). 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 for the year ended December 31, 2020, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. 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, except as may be required under applicable law.

Q1 2021 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended March 31, 2021 and the preceding four quarters:


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED

(Dollars in thousands, except per share data and stock price data)		Q1			Q4			Q3			Q2			Q1
		2021			2020			2020			2020			2020

GAAP Profitability Metrics:
Net income available to common shareholders (from continuing and discontinued operations)		$	33,204		$	52,831		$	47,085		$	19,137		$	(515)
Per share amounts:

	Earnings per share - basic	$	1.04		$	1.67		$	1.49		$	0.61		$	(0.02)

	Earnings per share - diluted	$	1.01		$	1.65		$	1.48		$	0.61		$	(0.02)
	Book value per common share (1)	$	30.13		$	28.37		$	26.43		$	25.08		$	23.74
	CUBI stock price (1)	$	31.82		$	18.18		$	11.20		$	12.02		$	10.93
	CUBI stock price as % of book value (1)	106		%	64		%	42		%	48		%	46		%
Average shares outstanding - basic		31,883,946			31,638,447			31,517,504			31,477,591			31,391,151
Average shares outstanding - diluted		32,841,711			31,959,100			31,736,311			31,625,771			31,391,151
Shares outstanding (1)		32,238,762			31,705,088			31,555,124			31,510,287			31,470,026
Return on average assets ("ROAA")		0.80		%	1.23		%	1.12		%	0.62		%	0.11		%
Return on average common equity ("ROCE")		14.66		%	24.26		%	23.05		%	9.97		%	(0.26)		%
Efficiency ratio		48.89		%	43.56		%	46.76		%	50.73		%	54.48		%
Non-GAAP Profitability Metrics (2):
Core earnings		$	70,308		$	54,588		$	38,439		$	21,413		$	5,087
Adjusted pre-tax pre-provision net income		$	86,769		$	77,896		$	64,146		$	53,931		$	44,225
Per share amounts:
	Core earnings per share - diluted	$	2.14		$	1.71		$	1.21		$	0.68		$	0.16
	Tangible book value per common share (1)	$	30.01		$	27.92		$	25.97		$	24.62		$	23.27
	CUBI stock price as % of tangible book value (1)	106		%	65		%	43		%	49		%	47		%
Core ROAA		1.61		%	1.26		%	0.93		%	0.68		%	0.30		%
Core ROCE		31.03		%	25.06		%	18.82		%	11.16		%	2.53		%
Adjusted ROAA - pre-tax and pre-provision		1.90		%	1.70		%	1.43		%	1.48		%	1.54		%
Adjusted ROCE - pre-tax and pre-provision		36.80		%	34.20		%	29.73		%	26.24		%	20.22		%
Net interest margin, tax equivalent		3.00		%	2.78		%	2.50		%	2.65		%	2.99		%
Net interest margin, tax equivalent, excluding PPP loans		2.99		%	3.04		%	2.86		%	2.97		%	2.99		%
Core efficiency ratio		41.13		%	42.89		%	46.10		%	47.84		%	52.97		%
Asset Quality:
Net charge-offs		$	12,521		$	8,472		$	17,299		$	10,325		$	18,711
Annualized net charge-offs to average total loans and leases		0.33		%	0.21		%	0.45		%	0.32		%	0.79		%
Non-performing loans ("NPLs") to total loans and leases (1)		0.30		%	0.45		%	0.38		%	0.56		%	0.49		%
Reserves to NPLs (1)		264.21		%	204.48		%	244.70		%	185.36		%	296.44		%
Non-performing assets ("NPAs") to total assets		0.26		%	0.39		%	0.34		%	0.48		%	0.53		%
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets		11.86		%	10.62		%	10.12		%	10.64		%	10.60		%
Tier 1 capital to risk-weighted assets		11.86		%	10.62		%	10.12		%	10.64		%	10.60		%
Total capital to risk-weighted assets		13.23		%	12.06		%	11.62		%	12.30		%	12.21		%
Tier 1 capital to average assets (leverage ratio)		9.41		%	9.21		%	9.29		%	9.59		%	9.99		%

(1) Metric is a spot balance for the last day of each quarter presented.
(2) Non-GAAP measures exclude net loss from discontinued operations, unrealized gains (losses) on loans HFS, investment securities gains and losses, loss on cash flow hedge derivative terminations, severance expense, merger and acquisition-related expenses, losses realized from the sale of non-QM residential mortgage loans, loss upon acquisition of interest-only GNMA securities, legal reserves, credit valuation adjustments on derivatives, risk participation agreement mark-to-market adjustments, and goodwill and intangible assets. These notable items are not included in Customers' disclosures of core earnings and other core profitability metrics. Please note that not each of the aforementioned adjustments affected the reported amount in each of the periods presented. Customers' reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.
(3) Regulatory capital ratios are estimated for Q1 2021 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected an option to delay the estimated impact of CECL on its regulatory capital over a five-year transition period ending January 1, 2025. As a result, capital ratios and amounts as of Q1 2021 exclude the impact of the increased allowance for credit losses on loans and leases and unfunded loan commitments attributed to the adoption of CECL and 25% of the quarterly provision for credit losses for subsequent quarters through Q4 2021.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)
	Q1		Q4		Q3		Q2		Q1
	2021		2020		2020		2020		2020
Interest income:
Loans and leases	$	152,117	$	145,414	$	132,107	$	118,447	$	116,080

Investment securities	7,979		6,777		6,297		6,155		4,977
Other	1,019		902		1,246		616		4,286
Total interest income	161,115		153,093		139,650		125,218		125,343

Interest expense:
Deposits	15,658		16,107		18,347		23,238		34,353
FHLB advances	5,192		5,749		5,762		4,736		5,390
Subordinated debt	2,689		2,688		2,689		2,689		2,689
FRB PPP liquidity facility, federal funds purchased and other borrowings	4,845		5,603		5,413		2,573		1,590
Total interest expense	28,384		30,147		32,211		33,236		44,022
Net interest income	132,731		122,946		107,439		91,982		81,321
Provision (benefit) for credit losses on loans and leases	(2,919)		(2,913)		12,955		20,946		31,786
Net interest income after provision (benefit) for credit losses on loans and leases	135,650		125,859		94,484		71,036		49,535

Non-interest income:
Interchange and card revenue	85		91		92		193		270
Deposit fees	863		823		650		502		551
Commercial lease income	5,205		4,853		4,510		4,508		4,268
Bank-owned life insurance	1,679		1,744		1,746		1,757		1,762
Mortgage warehouse transactional fees	4,247		3,681		3,320		2,582		1,952
Gain (loss) on sale of SBA and other loans	1,575		1,689		286		23		11
Mortgage banking income (loss)	463		346		1,013		38		296


Gain (loss) on sale of investment securities	23,566		44		11,707		4,353		3,974
Unrealized gain (loss) on investment securities	974		1,387		238		1,200		(1,378)
Unrealized gain (loss) on derivatives	2,537		804		549		(4,158)		(1,146)
Loss on cash flow hedge derivative terminations	(24,467)		—		—		—		—
Other	1,741		621		753		713		600
Total non-interest income	18,468		16,083		24,864		11,711		11,160

Non-interest expense:
Salaries and employee benefits	23,971		25,600		24,752		23,192		20,523
Technology, communication and bank operations	19,988		16,021		13,005		11,103		10,539
Professional services	6,289		5,449		4,421		2,974		3,544
Occupancy	2,621		2,742		3,368		2,639		2,613
Commercial lease depreciation	4,291		3,982		3,663		3,643		3,427
FDIC assessments, non-income taxes and regulatory fees	2,719		2,642		3,784		2,368		2,867
Merger and acquisition related expenses	418		709		658		—		—
Loan workout	(261)		123		846		1,808		366
Advertising and promotion	561		—		—		372		1,424

Other	1,330		2,665		1,788		1,692		3,664
Total non-interest expense	61,927		59,933		56,285		49,791		48,967
Income before income tax expense	92,191		82,009		63,063		32,956		11,728
Income tax expense	17,560		23,447		12,016		7,980		3,274
Net income from continuing operations	74,631		58,562		51,047		24,976		8,454

Loss from discontinued operations before income taxes	(20,354)		(3,539)		(347)		(3,190)		(6,722)
Income tax expense (benefit) from discontinued operations	17,682		(1,222)		185		(932)		(1,368)
Net loss from discontinued operations	(38,036)		(2,317)		(532)		(2,258)		(5,354)
Net income	36,595		56,245		50,515		22,718		3,100
Preferred stock dividends	3,391		3,414		3,430		3,581		3,615
Net income available to common shareholders	$	33,204	$	52,831	$	47,085	$	19,137	$	(515)

Basic earnings per common share from continuing operations	$	2.23	$	1.74	$	1.51	$	0.68	$	0.15

Basic earnings per common share	$	1.04	$	1.67	$	1.49	$	0.61	$	(0.02)
Diluted earnings per common share from continuing operations	$	2.17	$	1.73	$	1.50	$	0.68	$	0.15

Diluted earnings per common share	$	1.01	$	1.65	$	1.48	$	0.61	$	(0.02)


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020
ASSETS
Cash and due from banks	$	3,123	$	78,090	$	5,822	$	44,577	$	18,842
Interest earning deposits	512,241		615,264		325,594		1,022,753		237,390
Cash and cash equivalents	515,364		693,354		331,416		1,067,330		256,232
Investment securities, at fair value	1,441,904		1,210,285		1,133,831		681,382		712,657

Loans held for sale	46,106		79,086		26,689		464,164		450,157
Loans receivable, mortgage warehouse, at fair value	3,407,622		3,616,432		3,913,593		2,793,164		2,518,012
Loans receivable, PPP	5,178,089		4,561,365		4,964,105		4,760,427		—
Loans and leases receivable	7,536,489		7,575,368		7,700,892		7,272,447		7,353,262
Allowance for credit losses on loans and leases	(128,736)		(144,176)		(155,561)		(159,905)		(149,283)
Total loans and leases receivable, net of allowance for credit losses on loans and leases	15,993,464		15,608,989		16,423,029		14,666,133		9,721,991
FHLB, Federal Reserve Bank, and other restricted stock	69,420		71,368		70,387		91,023		87,140
Accrued interest receivable	83,186		80,412		65,668		49,911		40,570
Bank premises and equipment, net	10,943		11,225		11,308		7,879		8,314
Bank-owned life insurance	281,923		280,067		277,826		275,842		273,576

Goodwill and other intangibles	3,911		3,969		4,028		4,086		4,145

Other assets	371,439		338,438		354,010		512,209		384,379
Assets of discontinued operations	—		62,055		80,535		83,159		79,638
Total assets	$	18,817,660	$	18,439,248	$	18,778,727	$	17,903,118	$	12,018,799

LIABILITIES AND SHAREHOLDERS' EQUITY
Demand, non-interest bearing deposits	$	2,687,628	$	2,356,998	$	2,327,017	$	1,879,789	$	1,435,151
Interest bearing deposits	9,784,812		8,952,931		8,512,060		9,086,086		6,978,492
Total deposits	12,472,440		11,309,929		10,839,077		10,965,875		8,413,643

FRB advances	—		—		—		—		175,000
Federal funds purchased	365,000		250,000		680,000		—		705,000
FHLB advances	850,000		850,000		850,000		850,000		1,260,000
Other borrowings	124,138		124,037		123,935		123,833		123,732
Subordinated debt	181,464		181,394		181,324		181,255		181,185
FRB PPP liquidity facility	3,284,156		4,415,016		4,811,009		4,419,967		—

Accrued interest payable and other liabilities	351,741		152,082		185,927		296,192		143,126
Liabilities of discontinued operations	—		39,704		55,964		58,149		52,477
Total liabilities	17,628,939		17,322,162		17,727,236		16,895,271		11,054,163

Preferred stock	217,471		217,471		217,471		217,471		217,471
Common stock	33,519		32,986		32,836		32,791		32,751
Additional paid in capital	515,318		455,592		452,965		450,665		446,840
Retained earnings	438,802		438,581		385,750		338,665		319,529
Accumulated other comprehensive income (loss)	5,391		(5,764)		(15,751)		(9,965)		(30,175)
Treasury stock, at cost	(21,780)		(21,780)		(21,780)		(21,780)		(21,780)
Total shareholders' equity	1,188,721		1,117,086		1,051,491		1,007,847		964,636
Total liabilities & shareholders' equity	$	18,817,660	$	18,439,248	$	18,778,727	$	17,903,118	$	12,018,799


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
	Three Months Ended
	March 31, 2021			December 31, 2020			March 31, 2020
	Average Balance		Average Yield or Cost (%)	Average Balance		Average Yield or Cost (%)	Average Balance		Average Yield or Cost (%)
Assets
Interest earning deposits	$	1,177,315	0.10%	$	413,381	0.12%	$	772,249	1.49%
Investment securities (1)	1,357,558		2.35%	1,120,491		2.42%	566,287		3.52%
Loans and leases:
Commercial loans to mortgage companies	3,122,098		3.09%	3,518,371		3.06%	1,841,659		3.82%
Multi-family loans	1,689,174		3.80%	1,871,956		3.70%	2,213,858		4.06%
Commercial and industrial loans and leases (2)	2,848,328		3.97%	2,801,172		3.96%	2,460,811		4.70%
Loans receivable, PPP	4,623,213		3.41%	4,782,606		2.45%	—		—%
Non-owner occupied commercial real estate loans	1,348,938		3.85%	1,358,541		3.80%	1,335,459		4.35%
Residential mortgages	373,497		3.78%	400,771		3.80%	445,953		3.97%
Installment loans	1,323,863		9.04%	1,253,679		8.50%	1,259,051		9.14%
Total loans and leases (3)	15,329,111		4.02%	15,987,096		3.62%	9,556,791		4.89%
Other interest-earning assets	79,960		3.64%	81,031		3.80%	81,404		7.04%
Total interest-earning assets	17,943,944		3.64%	17,601,999		3.46%	10,976,731		4.59%
Non-interest-earning assets	581,777			573,400			513,705
Assets of discontinued operations	—			75,320			82,970
Total assets	$	18,525,721		$	18,250,719		$	11,573,406
Liabilities
Interest checking accounts	$	2,691,723	0.84%	$	2,240,959	0.86%	$	1,294,098	1.43%
Money market deposit accounts	4,435,930		0.55%	4,166,635		0.60%	3,635,554		1.79%
Other savings accounts	1,414,350		0.69%	1,205,592		0.74%	1,141,406		2.05%
Certificates of deposit	666,239		0.97%	833,689		1.30%	1,524,770		2.04%
Total interest-bearing deposits (4)	9,208,242		0.69%	8,446,875		0.76%	7,595,828		1.82%
FRB PPP liquidity facility	3,941,718		0.35%	4,684,756		0.35%	—		—%
Borrowings	1,171,826		3.23%	1,276,212		3.09%	1,229,399		3.16%
Total interest-bearing liabilities	14,321,786		0.80%	14,407,843		0.83%	8,825,227		2.01%
Non-interest-bearing deposits (4)	2,819,871			2,543,529			1,573,371
Total deposits and borrowings	17,141,657		0.67%	16,951,372		0.71%	10,398,598		1.70%
Other non-interest-bearing liabilities	247,798			162,723			96,874
Liabilities of discontinued operations	—			52,742			52,579
Total liabilities	17,389,455			17,166,837			10,548,051
Shareholders' equity	1,136,266			1,083,882			1,025,355
Total liabilities and shareholders' equity	$	18,525,721		$	18,250,719		$	11,573,406
Interest spread			2.97%			2.75%			2.89%
Net interest margin			3.00%			2.78%			2.98%
Net interest margin tax equivalent (5)			3.00%			2.78%			2.99%
Net interest margin tax equivalent excl. PPP (6)			2.99%			3.04%			2.99%

(1) For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
(2) Includes owner occupied commercial real estate loans.
(3) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans and leases, and deferred loan fees.
(4) Total costs of deposits (including interest bearing and non-interest bearing) were 0.53%, 0.58% and 1.51% for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, respectively.
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(6) Non-GAAP tax-equivalent basis, as described in note (5) for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020, excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020
Commercial:
Multi-family	$	1,659,529	$	1,761,301	$	1,950,300	$	2,023,571	$	2,069,077
Loans to mortgage companies	3,463,490		3,657,350		3,947,828		2,832,112		2,573,397
Commercial & industrial	2,164,784		2,304,206		2,186,480		2,060,494		2,017,567
Commercial real estate owner occupied	590,093		572,338		557,595		544,772		543,945
Loans receivable, PPP	5,178,089		4,561,365		4,964,105		4,760,427		—
Commercial real estate non-owner occupied	1,194,832		1,213,815		1,233,882		1,262,373		1,252,826
Construction	156,837		140,905		122,963		128,834		115,448
Total commercial loans and leases	14,407,654		14,211,280		14,963,153		13,612,583		8,572,260
Consumer:
Residential	295,654		323,322		343,775		352,941		364,760
Manufactured housing	59,977		62,243		64,638		66,865		69,240
Installment	1,405,021		1,235,406		1,233,713		1,257,813		1,315,171
Total consumer loans	1,760,652		1,620,971		1,642,126		1,677,619		1,749,171
Total loans and leases	$	16,168,306	$	15,832,251	$	16,605,279	$	15,290,202	$	10,321,431


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
	March 31,		December 31,		September 30,		June 30,		March 31,
	2021		2020		2020		2020		2020

Demand, non-interest bearing	$	2,687,628	$	2,356,998	$	2,327,017	$	1,879,789	$	1,435,151
Demand, interest bearing	3,228,941		2,384,691		2,308,627		2,666,209		1,577,034
Total demand deposits	5,916,569		4,741,689		4,635,644		4,545,998		3,012,185
Savings	1,483,482		1,314,817		1,173,641		1,144,788		1,168,121
Money market	4,406,508		4,601,492		4,057,366		3,404,709		2,833,990
Time deposits	665,881		651,931		972,426		1,870,380		1,399,347
Total deposits	$	12,472,440	$	11,309,929	$	10,839,077	$	10,965,875	$	8,413,643


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)	As of March 31, 2021										As of December 31, 2020										As of March 31, 2020
	Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs

Loan type
Multi-family	$	1,640,278	$	20,530	$	8,026	1.25	%	39.09	%	$	1,761,301	$	21,728	$	12,620	1.23	%	58.08	%	$	1,621,633	$	4,020	$	8,750	0.25	%	217.66	%
Commercial & industrial(1)	2,220,652		7,544		7,503		0.34	%	99.46	%	2,289,441		8,453		12,239		0.37	%	144.79	%	2,072,952		9,993		18,806		0.48	%	188.19	%
Commercial real estate owner occupied	590,093		3,242		5,935		0.55	%	183.07	%	572,338		3,411		9,512		0.60	%	278.86	%	543,945		2,411		8,527		0.44	%	353.67	%
Commercial real estate non-owner occupied	1,194,832		2,356		11,621		0.20	%	493.25	%	1,196,564		2,356		19,452		0.20	%	825.64	%	1,252,826		21,479		18,530		1.71	%	86.27	%
Construction	156,837		—		4,103		—	%	—	%	140,905		—		5,871		—	%	—	%	115,448		—		1,934		—	%	—	%
Total commercial loans and leases receivable	5,802,692		33,672		37,188		0.58	%	110.44	%	5,960,549		35,948		59,694		0.60	%	166.06	%	5,606,804		37,903		56,547		0.68	%	149.19	%
Residential	293,805		9,353		3,209		3.18	%	34.31	%	317,170		9,911		3,977		3.12	%	40.13	%	362,047		6,054		4,180		1.67	%	69.05	%
Manufactured housing	59,977		2,871		4,799		4.79	%	167.15	%	62,243		2,969		5,189		4.77	%	174.77	%	69,240		2,558		4,987		3.69	%	194.96	%
Installment	1,380,015		2,185		83,540		0.16	%	3823.34	%	1,235,406		3,211		75,316		0.26	%	2345.56	%	1,315,171		2,519		83,569		0.19	%	3317.55	%
Total consumer loans receivable	1,733,797		14,409		91,548		0.83	%	635.35	%	1,614,819		16,091		84,482		1.00	%	525.03	%	1,746,458		11,131		92,736		0.64	%	833.13	%
Loans and leases receivable(1)	7,536,489		48,081		128,736		0.64	%	267.75	%	7,575,368		52,039		144,176		0.69	%	277.05	%	7,353,262		49,034		149,283		0.67	%	304.45	%
Loans receivable, PPP	5,178,089		—		—		—	%	—	%	4,561,365		—		—		—	%	—	%	—		—		—		—	%	—	%

Loans receivable, mortgage warehouse, at fair value	3,407,622		—		—		—	%	—	%	3,616,432		—		—		—	%	—	%	2,518,012		—		—		—	%	—	%
Total loans held for sale	46,106		643		—		1.39	%	—	%	79,086		18,469		—		23.35	%	—	%	450,157		1,325		—		0.29	%	—	%
Total portfolio	$	16,168,306	$	48,724	$	128,736	0.30	%	264.21	%	$	15,832,251	$	70,508	$	144,176	0.45	%	204.48	%	$	10,321,431	$	50,359	$	149,283	0.49	%	296.44	%

(1) Excluding loans receivable, PPP from total loans and leases receivable is a non-GAAP measure. Management believes the use of these non-GAAP measures provides additional clarity when assessing Customers' financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. Please refer to the reconciliation schedules that follow this table.


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
	Q1		Q4		Q3		Q2		Q1
	2021		2020		2020		2020		2020
Loan type
Multi-family	$	1,132	$	—	$	—	$	—	$	—
Commercial & industrial	375		155		(55)		(4)		43
Commercial real estate owner occupied	134		12		44		(2)		(3)
Commercial real estate non-owner occupied	(10)		(35)		8,923		2,801		12,797
Construction	(5)		(6)		(6)		(113)		(3)
Residential	40		46		(17)		(26)		(29)
Installment	10,855		8,300		8,410		7,669		5,906
Total net charge-offs (recoveries) from loans held for investment	$	12,521	$	8,472	$	17,299	$	10,325	$	18,711

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

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 financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in Customers' industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.

The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document.


Core Earnings - Customers Bancorp
	Q1 2021				Q4 2020				Q3 2020				Q2 2020				Q1 2020
(dollars in thousands except per share data)	USD		Per share		USD		Per share		USD		Per share		USD		Per share		USD		Per share
GAAP net income to common shareholders	$	33,204	$	1.01	$	52,831	$	1.65	$	47,085	$	1.48	$	19,137	$	0.61	$	(515)	$	(0.02)
Reconciling items (after tax):
Net loss from discontinued operations	38,036		1.16		2,317		0.07		532		0.02		2,258		0.07		5,354		0.17


Merger and acquisition related expenses	320		0.01		508		0.02		530		0.02		—		—		—		—

Legal reserves	—		—		—		—		258		0.01		—		—		—		—
(Gains) losses on investment securities	(18,773)		(0.57)		(1,419)		(0.04)		(9,662)		(0.30)		(4,543)		(0.14)		(1,788)		(0.06)
Loss on cash flow hedge derivative terminations	18,716		0.57		—		—		—		—		—		—		—		—
Derivative credit valuation adjustment	(1,195)		(0.04)		(448)		(0.01)		(304)		(0.01)		4,527		0.14		2,036		0.06
Risk participation agreement mark-to-market adjustment	—		—		—		—		—		—		(1,080)		(0.03)		—		—

Unrealized losses on loans held for sale	—		—		799		0.03		—		—		1,114		0.04		—		—
Core earnings	$	70,308	$	2.14	$	54,588	$	1.71	$	38,439	$	1.21	$	21,413	$	0.68	$	5,087	$	0.16


Core Return on Average Assets - Customers Bancorp
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP net income	$	36,595		$	56,245		$	50,515		$	22,718		$	3,100
Reconciling items (after tax):
Net loss from discontinued operations	38,036			2,317			532			2,258			5,354


Merger and acquisition related expenses	320			508			530			—			—

Legal reserves	—			—			258			—			—
(Gains) losses on investment securities	(18,773)			(1,419)			(9,662)			(4,543)			(1,788)
Loss on cash flow hedge derivative terminations	18,716			—			—			—			—
Derivative credit valuation adjustment	(1,195)			(448)			(304)			4,527			2,036
Risk participation agreement mark-to-market adjustment	—			—			—			(1,080)			—

Unrealized losses on loans held for sale	—			799			—			1,114			—
Core net income	$	73,699		$	58,002		$	41,869		$	24,994		$	8,702

Average total assets	$	18,525,721		$	18,250,719		$	17,865,574		$	14,675,584		$	11,573,406

Core return on average assets	1.61		%	1.26		%	0.93		%	0.68		%	0.30		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP net income	$	36,595		$	56,245		$	50,515		$	22,718		$	3,100
Reconciling items:
Income tax expense	17,560			23,447			12,016			7,980			3,274
Provision (benefit) for credit losses on loans and leases	(2,919)			(2,913)			12,955			20,946			31,786
Provision (benefit) for credit losses on unfunded commitments	(1,286)			(968)			(527)			(356)			751

Net loss from discontinued operations	38,036			2,317			532			2,258			5,354

Merger and acquisition related expenses	418			709			658			—			—

Legal reserves	—			—			320			—			—
(Gains) losses on investment securities	(24,540)			(1,431)			(11,945)			(5,553)			(2,596)
Loss on cash flow hedge derivative terminations	24,467			—			—			—			—
Derivative credit valuation adjustment	(1,562)			(625)			(378)			5,895			2,556
Risk participation agreement mark-to-market adjustment	—			—			—			(1,407)			—

Unrealized losses on loans held for sale	—			1,115			—			1,450			—
Adjusted net income - pre-tax pre-provision	$	86,769		$	77,896		$	64,146		$	53,931		$	44,225

Average total assets	$	18,525,721		$	18,250,719		$	17,865,574		$	14,675,584		$	11,573,406

Adjusted ROAA - pre-tax pre-provision	1.90		%	1.70		%	1.43		%	1.48		%	1.54		%


Core Return on Average Common Equity - Customers Bancorp
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP net income to common shareholders	$	33,204		$	52,831		$	47,085		$	19,137		$	(515)
Reconciling items (after tax):
Net loss from discontinued operations	38,036			2,317			532			2,258			5,354


Merger and acquisition related expenses	320			508			530			—			—

Legal reserves	—			—			258			—			—
(Gains) losses on investment securities	(18,773)			(1,419)			(9,662)			(4,543)			(1,788)
Loss on cash flow hedge derivative terminations	18,716			—			—			—			—
Derivative credit valuation adjustment	(1,195)			(448)			(304)			4,527			2,036
Risk participation agreement mark-to-market adjustment	—			—			—			(1,080)			—

Unrealized losses on loans held for sale	—			799			—			1,114			—
Core earnings	$	70,308		$	54,588		$	38,439		$	21,413		$	5,087

Average total common shareholders' equity	$	918,795		$	866,411		$	812,577		$	771,663		$	807,884

Core return on average common equity	31.03		%	25.06		%	18.82		%	11.16		%	2.53		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP net income to common shareholders	$	33,204		$	52,831		$	47,085		$	19,137		$	(515)
Reconciling items:
Income tax expense	17,560			23,447			12,016			7,980			3,274
Provision (benefit) for credit losses on loan and leases	(2,919)			(2,913)			12,955			20,946			31,786
Provision (benefit) for credit losses on unfunded commitments	(1,286)			(968)			(527)			(356)			751
Net loss from discontinued operations	38,036			2,317			532			2,258			5,354


Merger and acquisition related expenses	418			709			658			—			—

Legal reserves	—			—			320			—			—
(Gains) losses on investment securities	(24,540)			(1,431)			(11,945)			(5,553)			(2,596)
Loss on cash flow hedge derivative terminations	24,467			—			—			—			—
Derivative credit valuation adjustment	(1,562)			(625)			(378)			5,895			2,556
Risk participation agreement mark-to-market adjustment	—			—			—			(1,407)			—

Unrealized losses on loans held for sale	—			1,115			—			1,450			—
Pre-tax pre-provision adjusted net income available to common shareholders	$	83,378		$	74,482		$	60,716		$	50,350		$	40,610

Average total common shareholders' equity	$	918,795		$	866,411		$	812,577		$	771,663		$	807,884

Adjusted ROCE - pre-tax pre-provision	36.80		%	34.20		%	29.73		%	26.24		%	20.22		%


Net Interest Margin, Tax Equivalent - Customers Bancorp
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP net interest income	$	132,731		$	122,946		$	107,439		$	91,982		$	81,321
Tax-equivalent adjustment	292			219			225			225			205
Net interest income tax equivalent	$	133,023		$	123,165		$	107,664		$	92,207		$	81,526

Average total interest earning assets	$	17,943,944		$	17,601,999		$	17,121,145		$	13,980,021		$	10,976,731

Net interest margin, tax equivalent	3.00		%	2.78		%	2.50		%	2.65		%	2.99		%


Net Interest Margin, Tax Equivalent, Excluding PPP - Customers Bancorp
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP net interest income	$	132,731		$	122,946		$	107,439		$	91,982		$	81,321
PPP net interest income	(34,842)			(25,257)			(20,018)			(9,308)			—
Tax-equivalent adjustment	292			219			225			225			205
Net interest income, tax equivalent, excluding PPP	$	98,181		$	97,908		$	87,646		$	82,899		$	81,526

GAAP average total interest earning assets	$	17,943,944		$	17,601,999		$	17,121,145		$	13,980,021		$	10,976,731
Average PPP loans	(4,623,213)			(4,782,606)			(4,909,197)			(2,754,920)			—
Adjusted average total interest earning assets	$	13,320,731		$	12,819,393		$	12,211,948		$	11,225,101		$	10,976,731

Net interest margin, tax equivalent, excluding PPP	2.99		%	3.04		%	2.86		%	2.97		%	2.99		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Core Efficiency Ratio - Customers Bancorp
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP net interest income	$	132,731		$	122,946		$	107,439		$	91,982		$	81,321

GAAP non-interest income	$	18,468		$	16,083		$	24,864		$	11,711		$	11,160

(Gains) losses on investment securities	(24,540)			(1,431)			(11,945)			(5,553)			(2,596)
Derivative credit valuation adjustment	(1,562)			(625)			(378)			5,895			2,556

Risk participation agreement mark-to-market adjustment	—			—			—			(1,407)			—

Unrealized losses on loans held for sale	—			1,115			—			1,450			—
Loss on cash flow hedge derivative terminations	24,467			—			—			—			—
Core non-interest income	16,833			15,142			12,541			12,096			11,120
Core revenue	$	149,564		$	138,088		$	119,980		$	104,078		$	92,441

GAAP non-interest expense	$	61,927		$	59,933		$	56,285		$	49,791		$	48,967

Legal reserves	—			—			(320)			—			—
Merger and acquisition related expenses	(418)			(709)			(658)			—			—

Core non-interest expense	$	61,509		$	59,224		$	55,307		$	49,791		$	48,967

Core efficiency ratio (1)	41.13		%	42.89		%	46.10		%	47.84		%	52.97		%

(1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.


Tangible Common Equity to Tangible Assets - Customers Bancorp

(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP total shareholders' equity	$	1,188,721		$	1,117,086		$	1,051,491		$	1,007,847		$	964,636
Reconciling items:
Preferred stock	(217,471)			(217,471)			(217,471)			(217,471)			(217,471)
Goodwill and other intangibles (1)	(3,911)			(14,298)			(14,437)			(14,575)			(14,870)
Tangible common equity	$	967,339		$	885,317		$	819,583		$	775,801		$	732,295

GAAP total assets	$	18,817,660		$	18,439,248		$	18,778,727		$	17,903,118		$	12,018,799
Reconciling items:
Goodwill and other intangibles (1)	(3,911)			(14,298)			(14,437)			(14,575)			(14,870)
Tangible assets	$	18,813,749		$	18,424,950		$	18,764,290		$	17,888,543		$	12,003,929

Tangible common equity to tangible assets	5.14		%	4.80		%	4.37		%	4.34		%	6.10		%

(1) Includes goodwill and other intangibles reported in assets of discontinued operations.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)


Tangible Book Value per Common Share - Customers Bancorp
(dollars in thousands except share and per share data)	Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q1 2020
GAAP total shareholders' equity	$	1,188,721	$	1,117,086	$	1,051,491	$	1,007,847	$	964,636
Reconciling Items:

Preferred stock	(217,471)		(217,471)		(217,471)		(217,471)		(217,471)
Goodwill and other intangibles (1)	(3,911)		(14,298)		(14,437)		(14,575)		(14,870)
Tangible common equity	$	967,339	$	885,317	$	819,583	$	775,801	$	732,295

Common shares outstanding	32,238,762		31,705,088		31,555,124		31,510,287		31,470,026

Tangible book value per common share	$	30.01	$	27.92	$	25.97	$	24.62	$	23.27

(1) Includes goodwill and other intangibles reported in assets of discontinued operations.


Total Loans and Leases, excluding PPP
(dollars in thousands except per share data)	Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q1 2020
Total loans and leases	$	16,168,306	$	15,832,251	$	16,605,279	$	15,290,202	$	10,321,431

Loans receivable, PPP	(5,178,089)		(4,561,365)		(4,964,105)		(4,760,427)		—
Loans and leases, excluding PPP	$	10,990,217	$	11,270,886	$	11,641,174	$	10,529,775	$	10,321,431


Total Assets, excluding PPP
(dollars in thousands except per share data)	Q1 2021		Q4 2020		Q3 2020		Q2 2020		Q1 2020
Total assets	$	18,817,660	$	18,439,248	$	18,778,727	$	17,903,118	$	12,018,799

Loans receivable, PPP	(5,178,089)		(4,561,365)		(4,964,105)		(4,760,427)		—
Total assets, excluding PPP	$	13,639,571	$	13,877,883	$	13,814,622	$	13,142,691	$	12,018,799


Coverage of credit loss reserves for loans and leases held for investment, excluding PPP
(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
Loans and leases receivable	$	12,714,578		$	12,136,733		$	12,664,997		$	12,032,874		$	7,353,262

Loans receivable, PPP	(5,178,089)			(4,561,365)			(4,964,105)			(4,760,427)			—
Loans and leases held for investment, excluding PPP	$	7,536,489		$	7,575,368		$	7,700,892		$	7,272,447		$	7,353,262

Allowance for credit losses on loans and leases	$	128,736		$	144,176		$	155,561		$	159,905		$	149,283

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP	1.71		%	1.90		%	2.02		%	2.20		%	2.03		%

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)

(Dollars in thousands, except per share data)



Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp

(dollars in thousands except per share data)	Q1 2021			Q4 2020			Q3 2020			Q2 2020			Q1 2020
GAAP total shareholders' equity	$	1,188,721		$	1,117,086		$	1,051,491		$	1,007,847		$	964,636
Reconciling items:
Preferred stock	(217,471)			(217,471)			(217,471)			(217,471)			(217,471)
Goodwill and other intangibles (1)	(3,911)			(14,298)			(14,437)			(14,575)			(14,870)
Tangible common equity	$	967,339		$	885,317		$	819,583		$	775,801		$	732,295

GAAP total assets	$	18,817,660		$	18,439,248		$	18,778,727		$	17,903,118		$	12,018,799
Loans receivable, PPP	(5,178,089)			(4,561,365)			(4,964,105)			(4,760,427)			—
Total assets, excluding PPP	$	13,639,571		$	13,877,883		$	13,814,622		$	13,142,691		$	12,018,799
Reconciling items:
Goodwill and other intangibles (1)	(3,911)			(14,298)			(14,437)			(14,575)			(14,870)
Tangible assets	$	13,635,660		$	13,863,585		$	13,800,185		$	13,128,116		$	12,003,929

Tangible common equity to tangible assets	7.09		%	6.39		%	5.94		%	5.91		%	6.10		%

(1) Includes goodwill and other intangibles reported in assets of discontinued operations.


Deferments to total loans and leases, excluding PPP
(dollars in thousands except per share data)	Q1 2021			Q4 2020
Total loans and leases	$	16,168,306		$	15,832,251
Loans receivable, PPP	(5,178,089)			(4,561,365)
Total loans and leases, excluding PPP	$	10,990,217		$	11,270,886

Commercial deferments	$	176,100		$	202,100
Consumer deferments	13,000			16,400
Total deferments	$	189,100		$	218,500

Commercial deferments to total loans and leases, excluding PPP	1.6		%	1.8		%
Consumer deferments to total loans and leases, excluding PPP	0.1			0.1
Total deferments to total loans and leases, excluding PPP	1.7		%	1.9		%

First Quarter 2021 | Earnings Conference Call April 29, 2021 NYSE: CUBI “High Tech Forward-Thinking Bank Supported by High Touch” Customers Bancorp, Inc.

2 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 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 events and 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, including: the adverse impact on the U.S. economy, including the markets in which we operate, of the coronavirus outbreak, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that effect market interest rates and the money supply; the actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; and the effects of changes in accounting standards or policies, including Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (CECL). 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 for the year ended December 31, 2020, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. 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, except as may be required under applicable law. This does not constitute an offer to sell, or a solicitation of an offer to buy, any security in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. Forward-Looking Statements

3 Environmental, social and governance (ESG) considerations are integrated across our business units and incorporated into the policies and principles that govern how our company operates. We continuously seek to address some of the practical challenges in balancing short- and long-term business trade-offs in order to ensure that our stakeholders and shareholders prosper together. Customers Bank’s approach to ESG management includes promoting sound corporate governance, risk management and controls, investing in our Team Members and cultivating a diverse and inclusive work environment, strengthening the communities in which our Team Members live and work, and operating our business in a way that demonstrates Customers’ dedication to environmental sustainability. Environmental, Social & Governance Report Our Communities Use of investment and philanthropic capital to expand access to economic opportunity in the communities where we do business has been core to Customers since its founding more than 10 years ago. Our Team Members Customers Bank is committed to developing high performing Team Members and fostering a richly diverse and inclusive workplace culture. Our Environment Customers Bank provides financing solutions that generate positive environmental and social impacts and actively manages the environmental impacts of the company’s branches and office locations. Our Risk Culture Customers Bank’s tone at the top and risk culture underpins our ability to function with integrity and accountability and to systematically and independently review risks and opportunities while building sustainable value for the company. Our Corporate Governance & Ethics Supported by unwavering management commitment and an engaged Board, Customers Bank is continually focused on enhancing the structures, processes and controls in place that support and promote accountability, transparency and ethical behavior.

4 2020 ESG Milestones Just days after the death of George Floyd, the bank held a company-wide virtual “Family Meeting” to provide an outlet of support to our Team Members. Executive leaders addressed over 600 Team Members who were then invited to share their stories, feelings and concerns. In 2020, Customers Bank was one of the nation’s leading lenders in the Paycheck Protection Program (PPP) and is a leader again in 2021. From passage of the CARES act on March 27, 2020 through March 31, 2021, Customers Bank participated in over 230,000 loans with an aggregate value of more than $7.5 billion.* These loans helped save hundreds of thousands of jobs. Customers Bank joined the Federal Home Loan Bank of Pittsburgh in making 120 First Front Door home loans worth more than $12 million, providing affordable housing to families across the market. In total, Customers Bank invested more than $2.6 million in 2020 through CRA investments, charitable donations, and community sponsorships. Customers Bank was the winner of the highly coveted 2020 Best Example of Making an Impact on Business Award presented by Everbridge, an organization focused on lifesaving efforts through its global Critical Event Management (CEM) platform. The bank stood out for its commitment to life safety, operational resilience and business continuity due to its efforts to communicate with Team Members, clients and the community during the onset of the pandemic. Customers Bank contributed nearly $400,000 to help feed those most in need during the pandemic. In addition to combating food insecurity, Customers Bank contributed an additional $250,000 to other pandemic-related programs including supplying PPE for hospitals and educational opportunities for inner-city children. Customers has become an active lender for several land-based wind projects, providing $126 million in financing. * As of 3/31/2021

I. Overview

6 Customers Bancorp: Q1 Highlights & Franchise Overview Source: S&P Global Market Intelligence and Company Documents Note: Data as of 3/31/2021, unless otherwise noted. (1) Non-GAAP Measure, refer to Appendix for reconciliation. (2) The Bank’s Total Capital Ratio is estimated pending final Call Report. (3) Excluding PPP. NYSE: CUBI Headquarters: West Reading, PA Management Team with 30 years average experience Financial Offices: 20 FTE Employees: 577 Mkt. Cap: $1.0 billion (CUBI) vs. ~$2.3 billion for average $14 billion asset banks (at 4/23/21) Bank Total Capital Ratio: 13.2%(2) Business Banking ‒ Industry Solutions ‒ Cash Management ‒ Business Checking ‒ SMB Lending ‒ SBA Lending ‒ Comm’l & Industrial ‒ Comm’l Real Estate ‒ Multifamily Lending ‒ Warehouse Lending ‒ Lender Finance ‒ Funds Finance ‒ Specialty Lending Personal Banking ‒ Checking ‒ Savings & Money Market ‒ Loans ‒ Student Loans ‒ CDs ‒ Mortgages ‒ Personal Loans ‒ Credit Cards Lines of Business $70.3M(1) Core Net Income vs. $5.1M in 1Q20 $2.14(1) Core EPS vs. $0.16 in 1Q20 31.03%(1) Core ROCE vs. 2.55% in 1Q20 1.61%(1) Core ROAA vs. 0.30% in 1Q20 1.90%(1) Adjusted PTPP ROAA vs. 1.55% in 1Q20 $11.0B(1)(3) +6.5% Total Loans and Leases $13.6B(1)(3) +13.5% Core Assets $12.5B +48.2% Total Deposits 0.26% -16 bps NPA Ratio 1.71% -32 bps Reserve Coverage 1Q21 Performance vs. 1Q20

7 Customers Bancorp: A High Performing Technology and Relationship-Driven Commercial Bank Key Features: From Startup to ~$13.6 Billion in Total Assets (excl. PPP)(1) in ~11 Years • The Bank was effectively launched in 2010 by the current management team to clean up a $250 million-in-assets failing bank • Growth was paused for two years to build capital, take advantage of the Durbin exemption and position the Bank to divest BankMobile Technologies, Inc. (“BMT”). The BMT divestiture closed on January 4, 2021. Highly Experienced Management Team & Additions • The team averages 30+ years in banking and financial services and has significant financial technology expertise • Sam Sidhu appointed as new Customers Bank CEO effective July 1, 2021 • Continue to recruit new teams to the organization; 4 added 1Q21 Outstanding Credit and Risk Culture with Strong Core Deposit Growth • Asset quality has historically performed in line with or better than peers and is expected to continue to do so: • NPA ratio only 0.26% • Strong reserve coverage ratio of 1.71% • Core deposit growth has been strong. Noninterest bearing DDAs are 22% and CD’s are only 5% of total deposits. Very Focused with Stated Long-Term Goals • The Bank’s strategy is built on a single point of contact model, principally “Private Banking for Privately held Businesses,” a differentiating approach • We will continue to develop an industry leading in-house digital bank supported by a digital lending platform primarily supporting small businesses and consumers • We seek to continuously improve the quality of the balance sheet and franchise • Capital allocation and strong risk management are key components of our asset and earnings generation decision-making process • We are well positioned to execute on our goals, now seeking to earn at least ~$5.00 in core EPS(1) in 2021 and 2022 and ~$6.00 in core EPS (1) in 2026 (1) Non-GAAP Measure, refer to Appendix for reconciliation.

II. Business Highlights

9 • Diluted EPS of $1.01 in 1Q21 versus ($0.02) in 1Q20 • Core EPS(2) of $2.14 in 1Q21 versus $0.16 in 1Q20 • GAAP Net income of $33.2M and Core Net Income of $70.3M in 1Q21 • 1Q21 ROAA of 0.80%; Core ROAA of 1.61%(2); adjusted PTPP ROAA of 1.90%(2) • ROCE of 14.66%; Core ROCE of 31.03%(2) ; adjusted PTPP ROCE of 36.80%(2) • $104 million of pre-tax revenue recognized to date • Expect to earn ~$300 million of additional pre-tax net revenue after all internal and external related costs • The NPAs ratio was 0.26% and coverage ratio excluding PPP was 1.7%(2). • Provision benefit of $2.9M in 1Q21 compared to a provision benefit of $2.9M in the prior quarter • Total P&I deferrals were only 0.85% of total loans and leases, excluding PPP balances(2) • Total loans and leases increased $5.8B or 56.6% over 1Q20 • Total loans and leases, excluding PPP balances(2), increased $0.7B or 6.5% over 1Q20 Q1 2021 Highlights Deposits • Demand deposits up 96% over 1Q20 • Total cost of deposits down 98 bps YOY to 0.53% • NIM of 3.0%(2) in 1Q21, consistent with 1Q20 • Core efficiency ratio of 41%(2) in 1Q21 versus 53% in 1Q20 • CET 1: 11.9% • Tier 1 Risk Based Capital: 11.9% • Total Risk Based Capital: 13.2% • Tier 1 Leverage: 9.4% • CUBI TCE: 5.1%(2) • CUBI TCE (excl. PPP): 7.1%(2) • Tangible Book Value(2) at $30.01 up 29% over 1Q20 • Tangible Equity of $1.2 billion(2) o $967 million Common Equity o $217 million Preferred Equity • Price-to-Tangible Book Value Ratio of 107% at 4/23/21(2) (1) The Bank’s Regulatory Capital Ratios are estimated pending final Call Report. (2) Non-GAAP Measure, refer to Appendix for reconciliation. Earnings Asset Quality Loan Portfolio osits CUBI Tangible Book Value Capital Ratios(1) Trading Multiple PPP Revenue Profitability

10 Loan Growth & Loan Mix (1) Excludes PPP loan balances, Non-GAAP Measure, refer to Appendix for reconciliation. (2) CAGR calculated based on 4.25 years. Highly Diversified Portfolio with Loan Growth (excl. PPP) YoY of 6.5% • Robust mortgage warehouse balance growth of $890 million or 35% over Q1 2020 driven by strong refinance and home purchase demand • Strong core C&I growth of $147 million or 7.3% over Q1 2020 • Targeting total consumer loans of 15-20% of loan portfolio Loan Growth 1Q 2021 Loan Mix(1) 5% 20% 1% 11% 3% 1% 13% 31% 15% CRE Owner Occupied Commercial & Industrial Construction Investment CRE Residential Mortgage Manufactured Housing Consumer Installment Mortgage Warehouse Multi-Family $ in Billions $8.3 $8.7 $8.5 $10.1 $11.3 $11.0 $4.6 $5.2 2016 2017 2018 2019 2020 1Q '21 Gross Loans (excl. PPP) PPP Loans (1) CAGR = 7%(1)(2)

11 Deposit Growth and Deposit Mix Significant Funding Mix Improvement Achieved Due to PPP Participation and Core Trends • Total deposit growth of $4.1B (48%) YoY, which included $2.9B (96%) increase in demand deposits • The non-time deposits-to-total deposits ratio climbed to 95% at 3/31/2021 from 83% at 3/31/2020 • Cost of deposits dropped to 0.53% for 1Q21 from 1.51% in the year-ago quarter Deposit Growth 1Q 2021 Deposit Mix 21.5% 25.9%35.3% 11.9% 5.3% Noninterest Bearing DDAs Interest Bearing DDAs Money Market Accounts Savings Accounts Certificates of Deposit $ in Billions $7.3 $6.8 $7.1 $8.6 $11.3 $12.5 2016 2017 2018 2019 2020 1Q '21 Total Deposits CAGR = 13%(1) (1) CAGR calculated based on 4.25 years.

12 Margin Trend Significant Improvement Achieved Due to Maintaining Loan Yields While Reducing Funding Costs • Net interest income (excl. PPP) was $98.0M(1) and increased 21% over 1Q20 • Net interest margin (excl. PPP)(1) remained stable at 3.0% • Overall loan yields declined by only 59 basis points over 1Q20 due to efforts to improve the loan mix and maintain credit quality during the pandemic rate environment and increased 20 basis points over 4Q20 • Total deposit cost declined by 98 basis points over 1Q20 as a result of on-going efforts to reduce deposit cost Net Interest Margin Growth (Excl. PPP)(1) Loan Yield (Excl. PPP)(1) & Deposit Cost (1) Excludes PPP loan balances, Non-GAAP Measure, refer to Appendix for reconciliation (2) Total Deposit Cost includes non-interest bearing deposits $64.0 $61.5 $59.3 $64.7 $75.7 $77.6 $81.3 $82.7 $87.5 $97.7 $98.0 2.47% 2.57% 2.59% 2.64% 2.83% 2.89% 2.99% 2.97% 2.86% 3.00% 3.00% 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 Net Interest Income (Excl. PPP) NIM TE (Excl. PPP) 4.4% 4.4% 4.5% 4.6% 4.8% 4.7% 4.9% 4.3% 4.1% 4.1% 4.3% 1.7% 1.7% 1.7% 1.8% 1.8% 1.6% 1.5% 0.9% 0.7% 0.6% 0.5% 3Q '18 4Q '18 1Q '19 2Q '19 3Q '19 4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 Loan Yield (Excl. PPP) Total Deposit Cost Spread - 2.7% Spread - 3.8% (2)

13 Continuing to Execute on Community Bank & Niche Business Strategies C&I Lending • Continue to focus on building franchise value by expanding our community banking strategy, lending to small-to-mid sized businesses and deposit gathering • Loans, excluding mortgage warehouse, expected to grow about 7% to 10% over the next year • Our commercial finance business is expected to grow 10% to 15% in 2021 Niche Businesses • Certain specialty lending and healthcare businesses offer significant growth opportunities in very low credit risk niches • We expect all niche business to grow 10%+ in 2021 Digital Lending • Consumer Installment: expect to originate majority of loans direct in 2021 while growing to ~15% - 20% of total assets • SBA Lending: seek to grow this low-risk line of business significantly in 2021, especially given increase in guarantee to 90% with recent legislation • Small Business Lending: launching end-to-end automated small business lending in 2021 initially targeted to PPP Customers Deposits • Continued efforts to reduce total deposit costs is expected to drive further net interest margin expansion in future quarters • Deposits expected to grow about 12% in 2021 • Will continue to see reduced reliance on brokered deposits Market Expansion and Other Strategies • Continuing to be very selective in CRE markets • Manage to about $1.5 billion exposure in multifamily • The balance of commercial loans to mortgage companies is expected to decline to $1.6 - $2.4 billion at December 31, 2021 • Evaluate contiguous and select regional markets for community banking expansion

III. Credit Risk Management

15 Credit Quality and Reserves Remain Above Average Recent Credit Quality Metrics Highlights: • Credit quality remains strong as evidenced by NPAs/Total Assets of only 0.26% at 3/31/21. • Bolstered by the adoption of CECL on January 1, 2020, the coverage ratio, excluding PPP loans(1), was 1.71% at 3/31/21, well above peers. • Due to the Bank’s history of focusing on lower credit risk businesses, we expect near-term credit outlook to remain stable. Note: The coverage of credit losses reserves for loans and leases held for investment, excludes PPP loans, mortgage warehouse loans, and loans held for sale. (1) Non-GAAP Measure, refer to Appendix for reconciliation. 0.00% 0.20% 0.40% 0.60% 0.80% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 CECL Adoption Impact Peer NPAs / Assets NPAs / Assets Reserves / Loans R e se rv e s / Lo a n s N P A s / A ss e ts

16 Allowance for Credit Losses for Loans and Leases (1) Utilized Moody’s March 2021 Baseline forecast with qualitative adjustments for 1Q21 provision. (2) Excludes Mortgage Warehouse loans reported at fair value, loans held for sale and PPP Loans. ($ in thousands) Amortized Cost Allowance for Credit Losses Lifetime Loss Rate Annualized Net Charge Off Ratio Loans and Leases Receivable: Commercial Multi-Family $1,679,682 $8,026 0.47% 0.27% Commercial & Industrial $2,174,736 $7,503 0.35% 0.07% Commercial Real Estate Owner Occupied $590,093 $5,935 1.01% 0.09% Commercial Real Estate Non-Owner Occupied $1,194,832 $11,621 0.97% 0.00% Construction $156,837 $4,103 2.62% -0.01% Total Commercial Loans and Leases Receivable $5,796,180 $37,188 0.64% 0.11% Consumer Consumer Installment $1,405,021 $83,540 5.95% 3.09% Reisdential Mortgage $275,417 $3,209 1.17% 0.06% Manufactured Housing $59,977 $4,799 8.00% 0.00% Total Consumer Loans Receivable $1,740,415 $91,548 5.26% 2.50% Total Loans and Leases HFI (2) $7,536,595 $128,736 1.71% 0.66% CECL Method (1) March 31, 2021

17 Loan & Lease Deferments (1) The 3/31/2021 figures are all actual deferrals with none pending. (2) "% of Portfolio" ratio excludes PPP loans. % of Principal % of Principal % of ($'s in millions) Deferments Portfolio (2) Deferred Portfolio (2) Deferred Portfolio (2) C&I and Investment CRE: Commercial & Industrial $45.9 2.1% $5.4 0.2% $5.4 0.2% SBA $13.4 13.4% $7.4 6.9% $7.3 7.6% Investment CRE & Multi-Family $251.2 9.0% $39.9 1.6% $13.7 0.6% Hotels $301.5 72.9% $125.9 31.0% $125.9 31.4% Equipment Finance: Motor Coach $18.1 48.5% $22.5 61.8% $22.7 63.1% Transportation $29.8 29.0% $1.0 0.0% $1.1 1.0% Franchise $1.8 5.1% $0.0 0.0% $0.0 0.0% Equipment Finance - Other $29.2 9.3% $0.0 0.0% $0.0 0.0% Mortgage Warehouse: Mortgage Warehouse $0.0 0.0% $0.0 0.0% $0.0 0.0% Consumer: Consumer Installment $22.6 1.8% $9.5 0.8% $6.7 0.5% Residential Mortgage $34.9 10.9% $6.0 1.9% $5.7 1.9% Manufactured Housing $2.1 3.1% $0.9 1.4% $0.6 1.0% Total Deferred $750.5 7.3% $218.5 1.9% $189.1 1.7% 7/24/20 12/31/20 3/31/2021 (1) Total Loan & Lease Deferments • P&I deferments were only .85% of total portfolio (excluding PPP) • Loans in COVID-19 At Risk Industries represent only 10% of total loans and deferrals in these industries totaled only 1.2% of total loans

18 Consumer Installment Loans Well Diversified Insignificant exposure to stressed professions $91K Avg Income740 Avg FICO Portfolio average DTI is 20.8% (1) FICO score at time of origination. Note: Data as of March 31, 2021. (1) 16.5% 24.9% 20.4% 10.9% 4.2% 0.8% 22.3% Debt to Income Ratio 0-9.99% 10 – 19.99% 20 – 29.99% 30 – 39.99% 40 – 49.99% > 50% Unknown 34.5% 50.3% 15.1% FICO Score 750+ 700-749 660-699 24.9% 42.5% 32.7% Borrower Income <$49,999 $50K -$99,999 >$100K 22.2% 10.3% 18.5% 26.2% 22.8% Geography West Southwest Midwest Southeast Northeast 96.3% 2.4% 0.4% 0.9% Profession Non COVID-19 Impacted Segments Non-Professional Retail & Restaurants Transportation, Travel and Entertainment 10.4% 75.4% 8.4% 5.8% Purpose Home Improvement Personal Loan Specialty Student Loan

19 Consumer Installment Loans Performance Remains Strong Note: Customers Bancorp’s impairment percentages are considered 1 day+ delinquent or in forbearance. Industry chart is from DV01 Insights COVID-19 Performance Report dated March 31, 2021. Continued Outperformance • At industry peak for consumer forbearance, CB overall remained less than half the industry average • Further, CB Direct was approximately 70% below industry average 0.00% 4.00% 8.00% 12.00% 16.00% 0 1 /3 1 /1 9 0 2 /2 8 /1 9 0 3 /3 1 /1 9 0 4 /3 0 /1 9 0 5 /3 1 /1 9 0 6 /3 0 /1 9 0 7 /3 1 /1 9 0 8 /3 1 /1 9 0 9 /3 0 /1 9 1 0 /3 1 /1 9 1 1 /3 0 /1 9 1 2 /3 1 /1 9 0 1 /3 1 /2 0 0 2 /2 9 /2 0 0 3 /3 1 /2 0 0 4 /3 0 /2 0 0 5 /3 1 /2 0 0 6 /3 0 /2 0 0 7 /3 1 /2 0 0 8 /3 1 /2 0 0 9 /3 0 /2 0 1 0 /3 1 /2 0 1 1 /3 0 /2 0 1 2 /3 1 /2 0 0 1 /3 1 /2 1 0 2 /2 8 /2 1 0 3 /3 1 /2 1 CUBI Industry

IV. Technology Driven Business Model

21 Customers Bancorp: High Tech High Touch Bank Branch Light Strategy Supported by Private Banking Teams • Customers Bank is among the least branch-reliant banks in the U.S. Private Banking Teams work out of Private Banking Offices. • The Bank maintains 12 branches, yielding an average of $1.0 billion in deposits per branch at March 31, 2021 • Customers Bank ranked among the top 10 best digital banks of 2021 according to Bankrate.com Superior Digital Capabilities • Among top tech focused PPP lenders in the United States generating over $400 million in revenues over the life of the loans • We offer a fully automated commercial deposit onboarding platform • We utilize top-tier technology platforms including Salesforce, Docusign, ServiceNow, and Snowflake to digitize processes from the front office to the back office Digital Lending and Deposits • Digitally originate consumer installment loans directly as well as through Marketplace Lenders (MPLs) originating on our behalf, subject to our credit box • Implementing a gain on sale strategy in 2021 beginning with pilot in Q2 2021 • Consumer installment loans, mostly sourced digitally, totaled $1.4 billion at March 31, 2021 • 2021 roadmap includes launching small business and SBA lending digital programs • Digitally generated deposits totaled $1.5 billion at March 31, 2021, up $315 million over March 31, 2020 • Created an online deposit product (CB Max Savings) in November 2020 targeted at High-Net-Worth clients; since then we have brought-in over $168 million in deposits across 1,147 accounts • We offer proprietary online deposit products including Ascent Money Market Savings, and Commercial Interest Checking targeted at small and medium sized businesses, High Net Worth, and Highly Liquid customers Embedded Finance / Banking-as-a-Service • Deposit offerings for Fintechs and non-banking organizations • Full partnership with selected market-place lenders

22 Selected Technology Partnerships Internal Embedded/Banking as a Service Digitization Driving Increased Efficiency To date, we have digitized and automated 140+ processes, saving over 62,000 in team member hours. Unique Embedded Technology Partnerships Our technology platform allows us to partner and engage with fintechs and non-banks in a manner not possible for most commercial banks. External Technology Drives Substantial Performance Our technology capability has contributed 12% of our deposit base ($1.5 billion). These are deposits which we would not otherwise have. IBS

23 Paycheck Protection Program $400M+ in Anticipated Pre-Tax Revenue Industry-Leading PPP Program • Customers Bank rose to the challenge of helping American small business preserve employment by initially quickly and effectively launching a nationwide SBA Paycheck Protection Program (“PPP”) lending program in just days • Completed more than 300,000 PPP loan applications totaling over $9.3 billion, as of April 25, 2021 (including those cancelled and/or duplicated by other lenders) • Continued focus on providing access to the smallest and most underserved businesses with an average loan sizes: • PPP 1/2: $49,735 • PPP 3: $20,953 • Expected to generate over $400 million of pre-tax revenue over the life of the loans • Rapid acceleration of digitization efforts and dramatic increase in customer base both provide foundation for scalable organic growth opportunities for existing business lines Exceptional PPP3 Performance • #2 bank in the country by number of loans; #5 lender overall by number of loans • In 2021 CUBI successfully increased its direct sourcing efforts • Over 10X growth in the number of direct loan originations driven by its immediate response to the surge in demand through the expansion of its technological platform to efficiently accommodate consumer demand • The shift to more direct origination results in higher borrower awareness and loyalty to the Customers Bank brand and the ability to further cross sell and generate additional revenue from these borrowers • We have been receiving SBA approval for an average of over 18,000 loans per week for the past four weeks • So far in PPP3, strong demand from first draw borrowers; over 55,000 are expected to be eligible for a second draw loan prior to May 31, 2021 PPP3 Performance(1) # Loans 200,000+ $ Volume $4.2B+ Origination Fee % 5.5%+ (1) As of 04/25/2021.

24 $831 $2,192 $463 $1,787 $460 $1,781 $453 $1,776 13,013 42,487 0 500 1,000 1,500 2,000 2,500 12/31/2020 3/31/2021 SBA Submitted SBA Reviewed SBA Forgiven Forgiven Payments Received Number of Applications PPP Forgiveness Update Strong Forgiveness Performance • Only $104 million of pre tax revenue has been recognized to date • As of 12/31/20 we had 13,013 forgiveness applications submitted to SBA totaling $831M, with a 99.4% forgiveness on principal repayment for transactions processed – Cumulative payment of $453M received from SBA for 7,978 loans • As of 3/31/21 we had 42,487 applications submitted to SBA for $2.2B, with a 99.7% forgiveness on principal repayment for transactions processed. – Cumulative payment of $1.8B received from SBA for 40,208 loans Note: Figures inclusive of EIDL which will be reimbursed per updated program guidelines. A top lender in nation with over $9.5B in PPP loans to ~300k customers (~2% of all PPP loans) PPP Portfolio Forgiveness Status ($ in millions) Lo a n A m o u n t (99.4%) (99.7%)

25 Blockchain Product Capabilities & Use Cases Capabilities Use Cases Industry 24/7 instant (T-0) settlement B2B Payments Blockchain-based stablecoin pegged to $USD Secure, Ethereum ledger transaction rails Easy-to-use wallet interface B2B supplier payments Currency/securities exchanges <> institutional investors Insurance reimbursements > hospital systems Just in time stock mgmt, freight, rail & cargo Real estate & construction Institutional currency & securities investments Healthcare & Insurance Capital goods, raw materials, and commodities Customers Bank expects to launch a real time (T-0) blockchain-based B2B payments platform in 2021. The platform will enable CB customers to transact intra-bank with instant settlement. The platform goal is to acquire low-cost deposits and grow our relationships with existing customers benefiting from this capability. Customer Value Shareholder Value • Preserve working capital • Easier account reconciliation and more accurate A/R view • Avoid late payment fees & service interruptions • Capital efficiency gain for institutional investors • Network effective of customers bringing customers / deposits remaining on CB core • Zero interest deposits, consistent with lost cost funding strategy • Grows CB footprint in several rapidly growing industries • New customer acquisition engine

V. Outlook

27 1Q 2021 Financial Highlights – Strong Earnings Momentum • Net income available to common shareholders of $33.2 million, or $1.01 per diluted share, includes net loss from discontinued operations of $38.0 million, or $(1.16) per diluted share. • Net income from continuing operations of $74.6 million, or $2.17 per diluted share, up 27% from 4Q 2020. • Core earnings of $70.3(1) million, or $2.14 per diluted share, up 25% from 4Q 2020 • Core ROAA of 1.61%(1) up from 1.26% for 4Q 2020 • Core ROCE of 31.03%(1) up from 25.06% for 4Q 2020 • Adjusted PTPP net income of $86.8(1) million up 11% from 4Q 2020 • Adjusted PTPP ROAA of 1.90%(1) up from 1.70% for 4Q 2020 • Net interest income of $132.7 million up 8% from 4Q 2020 • NIM of 3.0%(1) up 22 basis points from 4Q 2020; NIM excl. PPP stable at 3.0%(1) (1) Non-GAAP Measure, refer to Appendix for reconciliation

28 Sling Shot – Increase in Tangible Common Equity & Total Risk Based Capital Customers Bancorp: Actual & Projected Capital Metrics (1) 1Q21 Total Capital Ratio estimated pending Final Call Report. (2) Refers to tangible common equity-to-tangible assets excluding PPP loans. This is a non- GAAP measure; refer to the Appendix for reconciliation. Note: The “Actual & Projected Capital Metrics” chart includes our estimates of future performance. Please refer to the Forward-Looking Statements slide for more information. Highlights: • Our participation in the Paycheck Protection Program, as well as strong core earnings, will have a “sling shot” effect on tangible common equity(2). • Our participation in PPP3 has increased our guidance relative to the Company’s TCE/TA Ratio(2) excluding PPP loans to ~8.5% and Total Capital Ratio to ~14.0% by year-end 2021. • Pro forma for full expected PPP revenue, year-end 2021 TCE/TA Ratio(2) excluding PPP loans would be 10.1% • Customers Bancorp has an additional $217 million in preferred equity boosting its TE/TA ratio excluding PPP loans(2) by another ~160bps 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 13.0% 15.0% 17.0% 1Q '21 2Q '21 3Q '21 4Q '21 T C E / T A e x cl . P P P (2 ) T o ta l R is k B a se d C a p it a l(1 ) TRB TCE/TA excl. PPP Pro forma TCE/TA 10.1%(2) Pro forma TRB 15.9%(1)

29 Tangible Book Value Tangible Book Value Per Share(1) 28.9% 1 Year Growth TBV/Share(1) $30.01 Stock Price(2) $32.23 Value Proposition Trading at 107% of TBV Highlights: • Trading at TBV provides significant potential upside based on peer trading levels (1) Non-GAAP Measure, refer to Appendix for reconciliation. (2) As of April 23, 2021. $23.27 $24.62 $25.97 $27.92 $30.01 $36.33 1Q2020 2Q2020 3Q2020 4Q2020 1Q2021 4Q2021E TBV/Share ProForma TBV/Share with Total PPP Revenue (1) ~$40.00

30 Capital Base and EPS Expansion PPP Revenue • Acquired over 250,000 new customers through PPP with negative customer acquisition costs • Cross selling products/services to convert PPP customers to Customers Bank customers • Effectively acted as a non-dilutive capital raise • Expected to provide additional pre- tax earnings of ~$300M (or 24% accretion to tangible book value). Capital Allows for Further EPS Expansion Both strategies are accretive to EPS Common • Every $25M of share buyback raises diluted EPS by ~$0.14 Preferred • Redeeming Series C & D Preferred Stock of $82.5M would result in EPS accretion of ~$0.13 annually • Redemption of all outstanding preferred shares as they become redeemable would result in EPS accretion of ~$0.38 annually Common Stock Buyback & Preferred Equity Call • Capital increase provides strong runway to continue to continue to grow our niche business line, driving EPS growth • Presents unique cross selling opportunity for multiple CUBI business lines to drive further earning asset growth • Technology advancements provide foundation for scalable growth across the organization Balance Sheet Growth

31 Our updated financial guidance is as follows: • Loan growth, excluding PPP and mortgage warehouse balances, is expected to average in the mid-to-high single digits over the next several quarters. • The balance of commercial loans to mortgage companies is expected to decline to $1.6-$2.4 billion at December 31, 2021. • The Total Capital Ratio is expected to exceed 14.0% by year-end 2021. The TCE-to-TA ratio excluding PPP loans is expected to be ~8.5% by year-end 2021. • We project the NIM excluding PPP loans to expand into the 3.10%-3.30% range by 4Q21. • We project an effective tax rate from continuing operations for 2021 of 23.0%-24.0%. • We expect to earn at least ~$5.00 in core EPS in 2021 and 2022 and $6.00 in core EPS in 2026. 2021 NIM expansion is expected to be achieved by: • Remixing the loan portfolio away from commercial loans to mortgage companies toward other C&I categories and consumer loans • Bringing our cost of deposits down to less than 40 bps in 2Q21 • Restructuring of the asset and liability side of the balance sheet that was completed in 1Q21 Financial Guidance

32 Position at March 31, 2021 • $13.6 billion in core assets(1) • 32.2 million diluted shares outstanding Growth Assumptions • Asset growth of 7.0%-10.0% per year on average in the 2021-2026 period • Diluted shares outstanding growth of 1.0% per annum Where we expect to end up at year-end 2026 • $18-$20 billion in assets with about $1.7 billion in common equity • ~33.7 million diluted shares outstanding • At a Return on Assets of 1.00%-1.10%: • ~$200 million in core net income • ~$6.00 in Core EPS annualized 2026 Core EPS Target Note: The “Path to Core EPS of $6.00 by 2026” includes our estimates of future performance. Please refer to the Forward-Looking Statements slide for more information. (1) Excludes PPP loan balances, a non-GAAP measure. Please refer to the Appendix for reconciliation. Path to Core EPS of $6.00 in 2026

VI. Appendix

34 Liquidity Liquidity Sources ($000's) 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 YOY Change Cash and Cash Equivalents $237,390 $1,022,753 $325,594 $615,264 $512,241 $274,852 FHLB Available Borrowing Capacity $882,013 $1,078,520 $929,508 $684,936 $713,673 ($168,340) FRB Available Borrowing Capacity $9,931 $152,410 $215,000 $220,000 $180,000 $170,069 Investments (MV) US Gov't & Agency $0 $0 $40,008 $20,034 $20,053 $20,053 MBS &CMO $332,333 $290,137 $333,845 $361,850 $590,485 $258,152 Municipals $15,157 $18,389 $18,260 $18,291 $18,527 $3,371 Corporates $348,864 $356,232 $363,872 $396,744 $257,924 ($90,940) ABS $0 $0 $375,381 $409,512 $550,087 $550,087 Other AFS $16,303 $16,623 $2,466 $3,853 $4,827 ($11,476) Less: Pledged Securities ($20,375) ($16,924) ($20,053) ($18,849) ($17,589) $2,786 Net Unpledged Securities $692,282 $664,458 $1,113,778 $1,191,436 $1,424,314 $732,032 $1,821,616 $2,918,141 $2,583,881 $2,711,636 $2,830,229 $1,008,613

35 Detailed Financial Ratios

36 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 financial institutions. These non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in Customers' industry. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our ongoing financial results, which we believe enhance an overall understanding of our performance and increases comparability of our period to period results. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. The non-GAAP measures presented are not necessarily comparable to non-GAAP measures that may be presented by other financial institutions. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP. The following tables present reconciliations of GAAP to non-GAAP measures disclosed within this document. Reconciliation of Non-GAAP Measures - Unaudited

37 Reconciliation of Non-GAAP Measures – Unaudited (Cont.) ($ in thousands, not including per share amounts) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 USD Per Share USD Per Share USD Per Share USD Per Share USD Per Share GAAP net income to common shareholders $ 33,204 $ 1.01 $ 52,831 $ 1.65 $ 47,085 $ 1.48 $ 19,137 $ 0.61 $ (515) $ (0.02) Reconciling items (after tax): Net loss from discontinued operations 38,036 1.16 2,317 0.07 532 0.02 2,258 0.07 5,354 0.17 Merger and acquisition related expenses 320 0.01 508 0.02 530 0.02 - - - - Legal reserves - - - - 258 0.01 - - - - (Gains) losses on investment securities (18,773) (0.57) (1,419) (0.04) (9,662) (0.30) (4,543) (0.14) (1,788) (0.06) (Gains) losses on hedge derivaive terminations 18,716 0.57 - - - - - - - - Derivative credit valuation adjustment (1,195) (0.04) (448) (0.01) (304) (0.01) 4,527 0.14 2,036 0.06 Risk participation agreement mark-to-market adjustment - - - - - - (1,080) (0.03) - - Unrealized losses on loans held for sale - - 799 0.03 - - 1,114 0.04 - - Core earnings $ 70,308 $ 2.14 $ 54,588 $ 1.71 $ 38,439 $ 1.21 $ 21,413 $ 0.68 $ 5,087 $ 0.16 Core Earnings - Customers Bancorp

38 Reconciliation of Non-GAAP Measures – Unaudited (Cont.)

39 Reconciliation of Non-GAAP Measures – Unaudited (Cont.) Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp ($ in thousands except per share data) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP net income to common shareholders $ 33,204 $ 52,831 $ 47,085 $ 19,137 $ (515) Reconciling items: Income tax expense 17,560 23,447 12,016 7,980 3,274 Provision (benefit) for credit losses on loan and leases (2,919) (2,913) 12,955 20,946 31,786 Provision (benefit) for credit losses on unfunded commitments (1,286) (968) (527) (356) 751 Net loss from discontinued operations 38,036 2,317 532 2,258 5,354 Merger and acquisition related expenses 418 709 658 - - Legal reserves - - 320 - - (Gains) losses on investment securities (24,540) (1,431) (11,945) (5,553) (2,596) Loss on cash flow hedge derivative terminations 24,467 - - - - Derivative credit valuation adjustment (1,562) (625) (378) 5,895 2,556 Risk participation agreement mark-to-market adjustment - - - (1,407) - Unrealized losses on loans held for sale - 1,115 - 1,450 - Pre-tax pre-provision adjusted net income available to common shareholders $ 83,378 $ 74,482 $ 60,716 $ 50,350 $ 40,610 Average total common shareholders' equity $ 918,795 $ 866,411 $ 812,577 $ 771,663 $ 807,884 Adjusted ROCE - pre-tax pre-provision 36.80% 34.20% 29.73% 26.24% 20.22% Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp ($ in thousands) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP net income $ 36,595 $ 56,245 $ 50,515 $ 22,718 $ 3,100 Reconciling items (after tax): Income tax expense 17,560 23,447 12,016 7,980 3,274 Provision (benefit) for credit losses on loans and leases (2,919) (2,913) 12,955 20,946 31,786 Provision (benefit) for credit losses on unfunded commitments (1,286) (968) (527) (356) 751 Net loss from discontinued operations 38,036 2,317 532 2,258 5,354 Merger and acquisition related expenses 418 709 658 - - Legal reserves - - 320 - - (Gains) losses on investment securities (24,540) (1,431) (11,945) (5,553) (2,596) (Gains) losses on hedge deriative terminations 24,467 - - - - Derivative credit valuation adjustment (1,562) (625) (378) 5,895 2,556 Risk participation agreement mark-to-market adjustment - - - (1,407) - Unrealized losses on loans held for sale - 1,115 - 1,450 - Adjusted net income - pre-tax pre-provision $ 86,769 $ 77,896 $ 64,146 $ 53,931 $ 44,225 Average total assets $ 18,525,721 $ 18,250,719 $ 17,865,574 $ 14,675,584 $ 11,573,406 Adjusted ROAA - pre-tax pre-provision 1.90% 1.70% 1.43% 1.48% 1.54%

40 Reconciliation of Non-GAAP Measures – Unaudited (Cont.) Coverage of credit loss reserves for loans and leases held for investment, excluding PPP ($ in thousands) Q4 2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Loans and leases receivable 12,714,578$ 12,136,733$ 12,664,997$ 12,032,874$ 7,353,262$ Loans receivable, PPP (5,178,089) (4,561,365) (4,964,105) (4,760,427) - Loans and leases held for investment, excluding PPP 7,536,489$ 7,575,368$ 7,700,892$ 7,272,447$ 7,353,262$ Allowance for credit losses on loans and leases 128,736$ 144,176$ 155,561$ 159,905$ 149,283$ Coverage of credit loss reserves for loans and leases held for investment, excluding PPP 1.71% 1.90% 2.02% 2.20% 2.03% Total loans and leases, excluding PPP ($ in thousands) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Total loans and leases 16,168,306$ 15,832,251$ 16,605,279$ 15,290,202$ 10,321,431$ PPP loans (5,178,089) (4,561,365) (4,964,105) (4,760,427) - Loans and leases, excluding PPP 10,990,217$ 11,270,886$ 11,641,174$ 10,529,775$ 10,321,431$ Core Assets ($ in thousands) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP - Total assets 18,817,660$ 18,439,248$ 18,778,727$ 17,903,118$ 12,018,799$ Reconciling items: Loans receivable, PPP (5,178,089) (4,561,365) (4,964,105) (4,760,427) - Goodwill and other intangibles (3,911) (14,298) (14,437) (14,575) (14,870) Core assets 13,635,660$ 13,863,585$ 13,800,185$ 13,128,116$ 12,003,929$

41 Reconciliation of Non-GAAP Measures – Unaudited (Cont.) Tangible Book Value per Common Share - Customers Bancorp ($ in thousands, except per share data) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP -Total shareholders' equity 1,188,721$ 1,117,086$ 1,051,491$ 1,007,847$ 964,636$ Reconciling items: Preferred stock (217,471) (217,471) (217,471) (217,471) (217,471) Goodwill and other intangibles (1) (3,911) (14,298) (14,437) (14,575) (14,870) Tangible common equity 967,339$ 885,317$ 819,583$ 775,801$ 732,295$ Common shares outstanding 32,238,762 31,705,088 31,555,124 31,510,287 31,470,026 Tangible book value per common share 30.01$ 27.92$ 25.97$ 24.62$ 23.27$ (1) Includes goodwill and other intangibles reported in assets of discontinued operations CUBI stock price as of 4.23.21 32.23$ Price-to-tangible book value 107% Tangible Equity ($ in thousands) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP - Total shareholders' equity 1,188,721$ 1,117,086$ 1,051,491$ 1,007,847$ 964,636$ Reconciling items: Goodwill and other intangibles (3,911) (14,298) (14,437) (14,575) (14,870) Tangible equity 1,184,810$ 1,102,788$ 1,037,054$ 993,272$ 949,766$

42 Reconciliation of Non-GAAP Measures – Unaudited (Cont.) Tangible Common Equity to Tangible Assets, Excluding PPP - Customers Bancorp ($ in thousands) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP - Total shareholders' equity 1,188,721$ 1,117,086$ 1,051,491$ 1,007,847$ 964,636$ Reconciling items: Preferred stock (217,471) (217,471) (217,471) (217,471) (217,471) Goodwill and other intangibles (1) (3,911) (14,298) (14,437) (14,575) (14,870) Tangible common equity 967,339$ 885,317$ 819,583$ 775,801$ 732,295$ GAAP - Total assets 18,817,660$ 18,439,248$ 18,778,727$ 17,903,118$ 12,018,799$ Reconciling items: Goodwill and other intangibles (3,911) (14,298) (14,437) (14,575) (14,870) PPP loans (5,178,089) (4,561,365) (4,964,105) (4,760,427) - Tangible assets 13,635,660$ 13,863,585$ 13,800,185$ 13,128,116$ 12,003,929$ Tangible common equity to tangible assets 7.09% 6.39% 5.94% 5.91% 6.10% (1) Includes goodwill and other intangibles reported in assets of discontinued operations Tangible Common Equity to Tangible Assets - Customers Bancorp ($ in thousands) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP - Total shareholders' equity 1,188,721$ 1,117,086$ 1,051,491$ 1,007,847$ 964,636$ Reconciling items: Preferred stock (217,471) (217,471) (217,471) (217,471) (217,471) Goodwill and other intangibles (1) (3,911) (14,298) (14,437) (14,575) (14,870) Tangible common equity 967,339$ 885,317$ 819,583$ 775,801$ 732,295$ GAAP - Total assets 18,817,660$ 18,439,248$ 18,778,727$ 17,903,118$ 12,018,799$ Reconciling items: Goodwill and other intangibles (3,911) (14,298) (14,437) (14,575) (14,870) Tangible assets 18,813,749$ 18,424,950$ 18,764,290$ 17,888,543$ 12,003,929$ Tangible common equity to tangible assets 5.14% 4.80% 4.37% 4.34% 6.10% (1) Includes goodwill and other intangibles reported in assets of discontinued operations

43 Reconciliation of Non-GAAP Measures – Unaudited (Cont.) Loan Yield, excluding PPP ($ in thousands, except per share data) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Total interest on loans and lease 152,117$ $ 145,414 $ 132,107 $ 118,447 $ 116,080 Interest on PPP loans (38,832) (29,465) (24,337) (11,706) - Interest on loans and leases, excluding PPP 113,285$ 115,949$ 107,770$ 106,741$ 116,080$ Average loans and leases 15,329,111$ 15,987,095$ 15,403,838$ 12,791,633$ 9,556,791$ Average PPP loans (4,623,213) (4,782,606) (4,909,197) (2,754,920) - Adjusted average total interest earning assets 10,705,898$ 11,204,489$ 10,494,641$ 10,036,713$ 9,556,791$ Loan yield, excluding PPP 4.3% 4.1% 4.1% 4.3% 4.9% Net Interest Margin, Tax Equivalent, Excluding PPP - Customers Bancorp ($ in thousands, except per share data) Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 GAAP net interest income 132,731$ $ 122,946 $ 107,439 $ 91,982 $ 81,321 PPP net interest income (34,842) (25,257) (20,018) (9,308) - Tax-equivalent adjustment 292 219 225 225 205 Net interest income, tax equivalent, excluding PPP 98,181$ 97,908$ 87,646$ 82,899$ 81,526$ GAAP average total interest earning assets 17,943,944$ 17,601,999$ 17,121,145$ 13,980,021$ 10,976,731$ Average PPP loans (4,623,213) (4,782,606) (4,909,197) (2,754,920) - Adjusted average total interest earning assets 13,320,731$ 12,819,393$ 12,211,948$ 11,225,101$ 10,976,731$ Net interest margin, tax equivalent, excluding PPP 2.99% 3.04% 2.86% 2.97% 2.99%

44 Reconciliation of Non-GAAP Measures – Unaudited (Cont.) Charge-offs, excluding PPP ($ in thousands, except per share data) Q1 2021 Net charge-offs 12,521$ Average loans and leases 15,329,111$ Average PPP loans (4,623,213) Average commercial loans to mortgage companies (3,122,098) Adjusted average total loans and leases 7,583,800$ Annualized net charge offs to average total loans and leases, excluding PPP 0.66% Deferments to Total loans and leases, excluding PPP ($ in thousands) Q1 2021 Total loans and leases 16,168,306$ PPP loans (5,178,089) Loans and leases, excluding PPP 10,990,217$ Total deferments 189,100$ Total deferments to total loans and leases, excluding PPP 1.7%

45 Contacts Leadership: Carla Leibold CFO of Customers Bancorp, Inc and Customers Bank Jay Sidhu Chairman & CEO of Customers Bancorp, Inc. and Executive Chairman of Customers Bank Richard Ehst President & COO of Customers Bancorp, Inc. and CEO of Customers Bank Sam Sidhu COO of Customers Bank & Head of Corporate Development of Customers Bancorp, Inc. Andrew Bowman EVP & Chief Credit Officer Analysts: B. Riley Financial Steve Moss D.A. Davidson Company Russell Gunther Hovde Group Will Curtiss Jefferies LLC Casey Haire Keefe, Bruyette & Woods Michael Perito Maxim Group Michael Diana Piper Sandler Companies Frank Schiraldi Wedbush Peter Winter


Pennsylvania	001-35542	27-2290659
(State or other jurisdiction of incorporation or organization)	(Commission File number)	(IRS Employer Identification No.)


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit						Description
Exhibit 99.1						Press Release dated April 28, 2021
Exhibit 99.2						Slide presentation dated April 2021


			CUSTOMERS BANCORP, INC.

			By: /s/ Carla A. Leibold
			Name: Carla A. Leibold
			Title: Executive Vice President - Chief Financial Officer


Exhibit No.						Description
99.1						Press Release dated April 28, 2021
99.2						Slide presentation dated April 2021