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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 26, 2022



(Exact name of registrant as specified in its charter)
Customers Bancorp, Inc.
Pennsylvania001-3554227-2290659
(State or other jurisdiction of
incorporation or organization)		(Commission File number)(IRS Employer
Identification No.)
701 Reading Avenue
West Reading PA 19611
(Address of principal executive offices, including zip code)
(610) 933-2000
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instructions A.2. below):
☐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))





Securities registered pursuant to Section 12(g) of the Act:
Title of Each ClassTrading SymbolsName of Each Exchange on which Registered
Voting Common Stock, par value $1.00 per shareCUBINew York Stock Exchange
Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series E, par value $1.00 per share		CUBI/PENew York Stock Exchange
Fixed-to-Floating Rate Non-Cumulative Perpetual
Preferred Stock, Series F, par value $1.00 per share		CUBI/PFNew York Stock Exchange
5.375% Subordinated Notes due 2034CUBBNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02.         Results of Operations and Financial Condition

On October 26, 2022, Customers Bancorp, Inc. (the "Company") issued a press release announcing unaudited financial information for the quarter ended September 30, 2022, a copy of which is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein.


Item 7.01         Regulation FD Disclosure

The Company has posted to its website a slide presentation which is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and incorporated into this Item 7.01 by reference.

The information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto and incorporated by reference into Item 2.02 and Item 7.01, respectively, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section. Furthermore, such information, including the exhibits attached hereto, shall not be deemed incorporated by reference into any of the Company's reports or filings with the SEC, whether made before or after the date hereof, except as expressly set forth by specific reference in such report or filing. The information in this Current Report on Form 8-K, including the exhibits attached hereto, shall not be deemed an admission as to the materiality of any information in this Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

Item 9.01.        Financial Statements and Exhibits

(d) Exhibits.
ExhibitDescription
Press Release dated October 26, 2022
Slide presentation dated October 2022



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

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


Date: October 26, 2022




EXHIBIT INDEX

Exhibit No.Description
Press Release dated October 26, 2022
Slide presentation dated October 2022



Exhibit 99.1
Customers Bancorp, Inc. (NYSE:CUBI)
701 Reading Avenue
West Reading, PA 19611

Contact:
David W. Patti, Communications Director 610-451-9452
Customers Bancorp Reports Results for Third Quarter 2022

Third Quarter 2022 Results
EarningsEarnings Per ShareReturn on AssetsReturn on Common Equity
$61.4 million
$1.85
1.24%
19.33%
Net Income
Diluted Earnings Per Share
ROAA
ROCE
$82.3 million
$2.48
1.64%
25.91%
Core Earnings*
Core Earnings Per Diluted Share*
Core ROAA*
Core ROCE*
$76.4 million
$2.30
1.95%
31.01%
Core Earnings, excluding PPP*
Core Earnings Per Diluted Share, excluding PPP*
Pre-tax and Pre-provision Adjusted ROAA*Pre-tax and Pre-provision Adjusted ROCE*

Third Quarter 2022 Highlights
•Q3 2022 net income available to common shareholders was $61.4 million, or $1.85 per diluted share; ROAA was 1.24% and ROCE was 19.33%.
•Q3 2022 core earnings* were $82.3 million, or $2.48 per diluted share; Core ROAA* was 1.64% and Core ROCE* was 25.91%.
•Q3 2022 core earnings excluding Paycheck Protection Program* ("PPP") were $76.4 million, or $2.30 per diluted share, up 134.9% over Q3 2021, and bringing year-to-date core earnings (excluding PPP)* to $5.15.
•Q3 2022 adjusted pre-tax pre-provision net income* was $101.0 million; ROAA* was 1.95%, ROCE* was 31.01%.
•Year-over-year loan growth (excluding loans to mortgage companies and PPP*) was $4.5 billion, or 57.3%, led by our low-risk variable rate specialty lending verticals.


*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document.
1

•Year-over-year deposit growth was $551.4 million, up 3.2%. Total demand deposits increased $141.0 million, or 1.4% year-over-year. Time deposits increased $1.3 billion, or 220.0%. CBIT-related deposits had a balance of $1.9 billion at September 30, 2022, down $191.7 million from June 30, 2022.
•Q3 2022 net interest margin, tax equivalent* was 3.16%. Q3 2022 net interest margin, tax equivalent, excluding the impact of PPP loans* was 3.18%.
•Onboarded 111 new CBIT customers in Q3 2022, bringing total customers to 301.
•Total operating expenses were flat in Q3 2022 compared to Q2 2022 and down $3.8 million over Q3 2021.
•Q3 2022 benefit to provision for credit losses on loans and leases of $7.8 million was largely driven by the sale of $500.0 million of consumer installment loans, offset in part by the impact of loan growth and our recognition of weaker macroeconomic forecasts.
•Non-performing assets were $28.0 million, or 0.14% of total assets, at September 30, 2022 compared to $28.2 million, or 0.14% of total assets, at June 30, 2022 and $52.4 million, or 0.27% of total assets, at September 30, 2021. Allowance for credit losses on loans and leases equaled 466% of non-performing loans at September 30, 2022, compared to 558% at June 30, 2022 and 253% at September 30, 2021.
•Extended one-year common stock repurchase program an additional year, resulting in approximately 2.0 million shares available to be repurchased through September 2023.
•Tangible book value per share* grew year over year by $3.23, or 9.2%, despite increased AOCI losses of $157.6 million over the same time period. Tangible book value per share* has grown by 74.5% over the past 5 years.

CEO Commentary
West Reading, PA, October 26, 2022 - “We delivered another solid quarter and are extremely pleased with our third quarter results despite the challenging interest rate and economic environment,” remarked Customers Bancorp Chairman and CEO, Jay Sidhu. “We remain laser focused on our responsible organic growth strategy and have taken prudent risk management strategic actions over the past several quarters to ensure we are well positioned from a capital, credit, liquidity and earnings perspective. We are also pleased to report that we have already beat our 2022 core earnings per share, excluding PPP* target of $4.75 - $5.00. Core earnings per share, excluding PPP* for third quarter 2022 were $2.30, bringing year-to-date September 2022 core earnings per share, excluding PPP* to $5.15. In addition, core ROAA* was 1.64% and core ROCE* was 25.91% for the third quarter. Q3 2022 net interest income generated by the core bank was up 2% (~10% annualized) over Q2 2022 and 38% year-over-year. Core loan growth was led by increases in low-risk variable rate specialty lending verticals of $0.5 billion, which were largely offset by a decline in loans to mortgage companies of $0.3 billion and a sale of $0.5 billion of consumer installment loans executed as part of our balance sheet optimization initiatives. Asset quality remains exceptional and credit reserves are robust. Our loan and deposit pipelines remain strong and we are very focused on maintaining our margins, moderating our growth, improving our capital ratios, and controlling our expenses. We remain very optimistic about our future,” Mr. Jay Sidhu continued.
2

Financial Highlights
(Dollars in thousands, except per share data)
At or Three Months EndedIncrease (Decrease)Nine Months EndedIncrease (Decrease)
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
Profitability Metrics:
Net income available for common shareholders$61,364 $110,241 $(48,877)(44.3)%$192,779 $201,487 $(8,708)(4.3)%
Diluted earnings per share$1.85 $3.25 $(1.40)(43.1)%$5.72 $6.02 $(0.30)(5.0)%
Core earnings*$82,270 $113,876 $(31,606)(27.8)%$217,047 $243,487 $(26,440)(10.9)%
Core earnings per share*$2.48 $3.36 $(0.88)(26.2)%$6.44 $7.27 $(0.83)(11.4)%
Core earnings, excluding PPP*$76,424 $32,539 $43,885 134.9 %$173,422 $112,759 $60,663 53.8 %
Core earnings per share, excluding PPP*$2.30 $0.96 $1.34 139.6 %$5.15 $3.37 $1.78 52.8 %
Return on average assets ("ROAA")1.24 %2.33 %(1.09)1.34 %1.49 %(0.15)
Core ROAA*1.64 %2.35 %(0.71)1.50 %1.76 %(0.26)
Return on average common equity ("ROCE")19.33 %40.82 %(21.49)20.58 %26.99 %(6.41)
Core ROCE*25.91 %42.16 %(16.25)23.17 %32.61 %(9.44)
Adjusted pre-tax pre-provision net income*$100,994 $167,215 $(66,221)(39.6)%$319,335 $340,451 $(21,116)(6.2)%
Net interest margin, tax equivalent*3.16 %4.59 %(1.43)3.38 %3.55 %(0.17)
Net interest margin, tax equivalent, excluding PPP loans*3.18 %3.24 %(0.06)3.27 %3.17 %0.10 
Loan yield, excluding PPP*5.15 %4.42 %0.73 4.75 %4.36 %0.39 
Cost of deposits1.48 %0.42 %1.06 0.80 %0.47 %0.33 
Efficiency ratio50.00 %33.42 %16.58 43.46 %41.07 %2.39 
Core efficiency ratio*42.57 %30.36 %12.21 41.23 %37.31 %3.92 
Balance Sheet Trends:
Total assets$20,367,621 $19,108,922 $1,258,699 6.6 %
Total assets, excluding PPP*$19,212,989 $14,151,565 $5,061,424 35.8 %
Total loans and leases$15,336,688 $15,515,537 $(178,849)(1.2)%
Total loans and leases, excluding PPP*$14,182,056 $10,558,180 $3,623,876 34.3 %
Non-interest bearing demand deposits$2,993,793 $4,954,331 $(1,960,538)(39.6)%
Total deposits$17,522,438 $16,971,025 $551,413 3.2 %
Capital Metrics:
Common Equity$1,249,137 $1,146,505 $102,632 9.0 %
Tangible Common Equity*$1,245,508 $1,142,711 $102,797 9.0 %
Tangible Common Equity to Tangible Assets*6.12 %5.98 %0.14 
Tangible Common Equity to Tangible Assets, excluding PPP*6.48 %8.08 %(1.60)
Tangible Book Value per common share*$38.35 $35.12 $3.23 9.2 %
Common equity Tier 1 capital ratio (1)
10.1 %10.4 %(0.3)
Total risk based capital ratio (1)
12.8 %13.6 %(0.8)
(1) Regulatory capital ratios as of September 30, 2022 are estimates.
*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document.
3

Customers Bank Instant Token (CBITTM)
"Despite significant market volatility that continues in the digital asset space, we are very pleased with our progress to date. In Q3 2022, we onboarded 111 new CBIT-related customers to the Digital Bank, once again beating our internal target, and bringing total customers to 301. Our digital asset-related deposits have stabilized and ended the third quarter at $1.9 billion. We continue to expect digital asset-related deposits to grow in fourth quarter 2022 as our pipelines remain strong, giving us an opportunity to further transform our deposits into a high quality, low-cost, stable and growing deposit franchise. We believe our technology, compliance and customer service and support systems remain among the best in the country," commented Mr. Sam Sidhu, President and CEO of Customers Bank.
Paycheck Protection Program (PPP)
We funded, either directly or indirectly, about 256,000 PPP loans totaling $5.2 billion in 2021, bringing total PPP loans funded to approximately 358,000 and $10.3 billion. We also earned close to $350 million of deferred origination fees from the SBA through the PPP loans, which is significantly accretive to our earnings and capital levels as these loans are forgiven by the government. In Q3 2022, we recognized $11 million of these fees in earnings, bringing total fees recognized to date to $318 million, resulting in approximately $30 million remaining to be recognized throughout 2022 and early 2023. "As we've stated previously, it is difficult to predict the timing of PPP forgiveness. We expect most of the fees to be recognized over the next two quarters," commented Customers Bancorp CFO, Carla Leibold.
Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and leases as of the dates indicated:
(Dollars in thousands)September 30, 2022% of TotalJune 30, 2022% of TotalSeptember 30, 2021% of Total
Commercial:
Specialty lending$5,103,974 33.3 %$4,599,640 29.4 %$1,736,966 11.2 %
Other commercial & industrial1,064,332 7.0 1,037,443 6.6 867,401 5.6 
Multi-family2,267,376 14.8 2,012,920 12.9 1,387,166 8.9 
Loans to mortgage companies1,708,587 11.1 1,975,189 12.6 2,626,483 16.9 
Commercial real estate owner occupied726,670 4.7 710,577 4.5 656,044 4.2 
Loans receivable, PPP1,154,632 7.5 1,570,160 10.0 4,957,357 32.0 
Commercial real estate non-owner occupied1,263,211 8.2 1,152,869 7.4 1,144,643 7.4 
Construction136,133 0.9 195,687 1.2 198,607 1.3 
Total commercial loans and leases13,424,915 87.5 13,254,485 84.6 13,574,667 87.5 
Consumer:
Residential466,888 3.0 460,228 2.9 260,820 1.7 
Manufactured housing46,990 0.3 48,570 0.3 55,635 0.3 
Personal1,079,267 7.0 1,641,748 10.5 1,342,650 8.7 
Other318,628 2.2 259,322 1.7 281,765 1.8 
Total consumer loans1,911,773 12.5 2,409,868 15.4 1,940,870 12.5 
Total loans and leases$15,336,688 100.0 %$15,664,353 100.0 %$15,515,537 100.0 %
C&I loans and leases, including specialty lending, increased $3.6 billion, or 136.8% year-over-year, to $6.2 billion. Practically all of the increases in outstanding balances were in the low-risk variable rate secured categories of Fund Finance and Lender Finance. Multi-family loans increased $880.2 million, or 63.5%, to $2.3 billion, residential loans increased $206.1 million, or 79.0%, to $466.9 million, commercial real estate non-owner occupied loans increased $118.6 million, or 10.4% year-over-year to $1.3 billion and commercial real estate owner occupied loans increased $70.6 million, or 10.8%, to $726.7 million. These increases in loans and leases were partially offset by a decrease in total consumer installment loans of $226.5 million, or 13.9%, to $1.4 billion primarily due to the sale of a $500.0 million of consumer installment loans and a decrease in construction loans of $62.5 million, or 31.5%, to $136.1 million.
4

Allowance for Credit Losses on Loans and Leases
The following table presents allowance for credit losses on loans and leases (information as of the dates and periods indicated):
At or Three Months EndedIncrease (Decrease)At or Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2022June 30, 2022September 30, 2022September 30, 2021
Allowance for credit losses on loans and leases$130,197 $156,530 $(26,333)$130,197 $131,496 $(1,299)
Provision (benefit) for credit losses on loans and leases(7,836)24,164 (32,000)(7,836)13,164 (21,000)
Net charge-offs (recoveries)18,498 13,481 5,017 18,498 7,104 11,394 
Annualized net charge-offs (recoveries) to average loans and leases0.47 %0.36 %0.47 %0.17 %
Coverage of credit loss reserves for loans and leases held for investment0.95 %1.14 %0.95 %1.02 %
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP*1.03 %1.28 %1.03 %1.65 %
*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document.
The increase in net charge-offs in Q3 2022 compared to Q2 2022 was primarily due to a partial charge-off of $7.0 million for one performing commercial real estate collateral dependent loan that we felt prudent in exiting at this time. Our consumer net charge-offs were flat in Q3 2022 compared to Q2 2022.
Provision (Benefit) for Credit Losses
Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2022June 30, 2022
Provision (benefit) for credit losses on loans and leases$(7,836)$24,164 $(32,000)
Provision (benefit) for credit losses on unfunded commitments254 608 (354)
Provision (benefit) for credit losses on available for sale debt securities(158)(317)159 
Total provision (benefit) for credit losses$(7,740)$24,455 $(32,195)
The benefit to provision for credit losses on loans and leases in Q3 2022 was $7.8 million, compared to provision expense of $24.2 million in Q2 2022. The benefit to provision in Q3 2022 was primarily due to the sale of $500.0 million of unsecured consumer installment loans in connection with the Company's balance sheet optimization initiatives, partially offset by loan growth and our recognition of weaker macroeconomic forecasts. This sale transaction resulted in approximately $36.8 million of release in allowance for credit losses, which is included in core earnings*. The benefit to provision for credit losses on available for sale investment securities in Q3 2022 was $0.2 million compared to $0.3 million in Q2 2022.
5

Asset Quality
The following table presents asset quality metrics as of the dates indicated:
(Dollars in thousands)September 30, 2022June 30, 2022Increase (Decrease)September 30, 2022September 30, 2021Increase (Decrease)
Non-performing assets ("NPAs"):
Nonaccrual / non-performing loans ("NPLs")$27,919 $28,064 $(145)$27,919 $52,041 $(24,122)
Non-performing assets27,965 28,150 (185)27,965 52,377 (24,412)
NPLs to total loans and leases (1)
0.18 %0.18 %0.18 %0.34 %
Reserves to NPLs (1)
466.34 %557.76 %466.34 %252.68 %
NPAs to total assets0.14 %0.14 %0.14 %0.27 %
Loans and leases risk ratings:
Commercial loans and leases (1)
Pass$10,262,647 $9,355,846 $906,801 $10,262,647 $5,586,462 $4,676,185 
Special Mention104,560 106,566 (2,006)104,560 195,663 (91,103)
Substandard329,878 343,175 (13,297)329,878 260,271 69,607 
Total commercial loans and leases10,697,085 9,805,587 891,498 10,697,085 6,042,396 4,654,689 
Consumer loans
Performing1,893,977 2,392,852 (498,875)1,893,977 1,912,393 (18,416)
Non-performing16,680 14,556 2,124 16,680 15,810 870 
Total consumer loans1,910,657 2,407,408 (496,751)1,910,657 1,928,203 (17,546)
Loans and leases receivable$12,607,742 $12,212,995 $394,747 $12,607,742 $7,970,599 $4,637,143 
(1)    Excludes loan receivable, PPP, as PPP loans are fully guaranteed by the Small Business Administration.
Over the last decade, we have developed a suite of commercial loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s C&I, loans to mortgage companies, corporate and specialty lending lines of business, and multi-family loans 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 incredibly 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, we employ a bottom-up data driven approach to analyze the commercial portfolio. Exposure to industry segments and CRE significantly impacted by COVID-19 initially is not substantial.
Total consumer installment loans were approximately 6.9% of total assets at September 30, 2022 and 9.9% of core loans* were supported by an allowance for credit losses of $71.7 million. At September 30, 2022, our consumer installment portfolio had the following characteristics: average original FICO score of 736, average debt-to-income of 17.9% and average borrower income of $106 thousand.
Non-performing loans at September 30, 2022 were essentially flat at 0.18% of total loans and leases, compared to 0.18% at June 30, 2022 and 0.34% at September 30, 2021.
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
(Dollars in thousands)September 30, 2022% of TotalJune 30, 2022% of TotalSeptember 30, 2021% of Total
Demand, non-interest bearing$2,993,793 17.1 %$4,683,030 27.6 %$4,954,331 29.2 %
Demand, interest bearing7,124,663 40.7 6,644,398 39.2 5,023,081 29.6 
Total demand deposits10,118,456 57.8 11,327,428 66.8 9,977,412 58.8 
Savings592,002 3.4 640,062 3.8 1,310,343 7.7 
Money market4,913,967 28.0 4,254,205 25.1 5,090,121 30.0 
Time deposits1,898,013 10.8 723,024 4.3 593,149 3.5 
Total deposits$17,522,438 100.0 %$16,944,719 100.0 %$16,971,025 100.0 %
6

Total deposits increased $551.4 million, or 3.2%, to $17.5 billion at September 30, 2022 as compared to a year ago. Time deposits increased $1.3 billion, or 220.0%, to $1.9 billion and total demand deposits increased $141.0 million, or 1.4%, to $10.1 billion. These increases were offset partially by decreases in savings deposits of $718.3 million, or 54.8%, to $592.0 million and money market deposits of $176.2 million, or 3.5%, to $4.9 billion. The total cost of deposits increased by 106 basis points to 1.48% in Q3 2022 from 0.42% in the prior year primarily due to higher market interest rates and a shift in deposit mix.
Capital
The following table presents certain capital amounts and ratios as of the dates indicated:
(Dollars in thousands except per share data)September 30, 2022June 30, 2022September 30, 2021
Customers Bancorp, Inc.
Common Equity$1,249,137 $1,215,596 $1,146,505 
Tangible Common Equity*1,245,508 1,211,967 1,142,711 
Tangible Common Equity to Tangible Assets*6.12 %5.99 %5.98 %
Tangible Common Equity to Tangible Assets, excluding PPP*6.48 %6.49 %8.08 %
Tangible Book Value per common share*$38.35 $37.35 $35.12 
Common equity Tier 1 capital ratio (1)
10.1 %9.7 %10.4 %
Total risk based capital ratio (1)
12.8 %12.6 %13.6 %
(1) Regulatory capital ratios as of September 30, 2022 are estimates.
*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document.
Customers Bancorp's tangible common equity* increased $102.8 million to $1.2 billion at September 30, 2022 compared to a year ago, as earnings of $291.4 million more than offset a negative impact to accumulated other comprehensive income ("AOCI") from increased unrealized losses on investment securities of $157.6 million (net of taxes). Similarly, tangible book value per common share* increased to $38.35 at September 30, 2022 from $35.12 at September 30, 2021. 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*, were 12.8% and 6.48%, respectively, at September 30, 2022. "We expect our TCE ratio to be about 7.5% over the next 3 - 4 quarters, supported by growth in retained earnings and prudent balance sheet management," stated Mr. Sam Sidhu.
At the Customers Bank level, capital levels remained strong and well above regulatory minimums. At September 30, 2022, estimated Tier 1 capital and total risk-based capital were 11.7% and 13.0%, respectively.
Key Profitability Trends
Net Interest Income
Net interest income totaled $159.0 million in Q3 2022, a decrease of $5.8 million from Q2 2022, primarily due to lower PPP interest income of $5.9 million resulting from reduced recognition of deferred fees of $4.8 million driven by lower loan forgiveness in Q3 2022. This decrease was offset in part by increased net interest income earned by the core bank of $3.5 million, up 2% (~10% annualized) over Q2 2022, including increased interest income on investment securities and core loans* of $5.1 million and $37.4 million, respectively, mostly due to higher average balances. In addition, higher expenses paid on deposits, fed funds, FHLB advances and other borrowings of $45.4 million resulted mainly from a shift in deposit mix and higher interest rates during Q3 2022. Excluding PPP loans, average interest-earning assets increased $1.0 billion. Interest-earning asset growth was primarily driven by increases in C&I loans and leases, mostly in specialty lending, and some lower-yielding multi-family loans that didn't close until Q3 2022. Compared to Q2 2022, total loan yields increased 54 basis points to 5.08% primarily due to higher interest rates on variable rate loans in specialty lending. Excluding PPP loans, the Q3 2022 total loan yield was 59 basis points higher than Q2 2022 reflecting increased interest rates and the variable rate nature of the loan portfolio.
7

Non-Interest Income
The following table presents details of non-interest income for the periods indicated:
Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2022June 30, 2022
Interchange and card revenue$72 $24 $48 
Deposit fees989 964 25 
Commercial lease income7,097 6,592 505 
Bank-owned life insurance 3,449 1,947 1,502 
Mortgage warehouse transactional fees1,545 1,883 (338)
Gain (loss) on sale of SBA and other loans106 1,542 (1,436)
Loss on sale of consumer installment loans (23,465)— (23,465)
Loan fees3,008 2,618 390 
Mortgage banking income (loss)125 173 (48)
Gain (loss) on sale of investment securities(2,135)(3,029)894 
Unrealized gain (loss) on investment securities(259)(203)(56)
Unrealized gain (loss) on derivatives563 821 (258)
Other(112)(586)474 
Total non-interest income$(9,017)$12,746 $(21,763)
Non-interest income totaled $(9.0) million for Q3 2022, a decrease of $21.8 million compared to Q2 2022. The decrease was primarily due to $23.5 million of loss realized from the sale of $500 million of consumer installment loans as part of our balance sheet optimization initiatives, which included the write-off of deferred origination costs and other transaction-related expenses, and lower gains realized on sales of SBA loans in Q3 2022 compared to Q2 2022, partially offset by higher bank-owned life insurance income primarily due to death benefits, lower realized losses from the sale of investment securities and higher commercial lease income and loan fees from continued growth.
Non-Interest Expense
The following table presents details of non-interest expense for the periods indicated:
Three Months EndedIncrease (Decrease)
(Dollars in thousands)September 30, 2022June 30, 2022
Salaries and employee benefits$31,230 $25,334 $5,896 
Technology, communication and bank operations19,588 22,738 (3,150)
Professional services6,269 7,415 (1,146)
Occupancy2,605 4,279 (1,674)
Commercial lease depreciation5,966 5,552 414 
FDIC assessments, non-income taxes and regulatory fees2,528 1,619 909 
Loan servicing3,851 4,341 (490)
Loan workout217 179 38 
Advertising and promotion762 353 409 
Other3,182 4,395 (1,213)
Total non-interest expense$76,198 $76,205 $(7)
The management of non-interest expenses remains a priority for us. However, this will not be at the expense of not making adequate investments with new technologies to support efficient and responsible growth.
Non-interest expenses totaled $76.2 million in Q3 2022, relatively unchanged from Q2 2022 and $3.8 million lower than Q3 2021. The offsetting items this quarter included a $3.2 million decrease in technology, processing and deposit servicing-related expenses mostly due to lower deposit servicing fees paid to BM Technologies, $1.7 million decrease in occupancy mostly due to $0.9 million of impairment charges for consolidation of five branches into other existing locations in Southeastern Pennsylvania recorded in Q2 2022 and $1.1 million decrease in professional fees primarily associated with the PPP loan forgiveness. These decreases were offset in part by higher salaries and employee benefits of $5.9 million primarily due to higher average headcount, incentives and $1.4 million in one-time severance expenses.
8

Taxes
Income tax expense from continuing operations decreased by $1.0 million to $17.9 million in Q3 2022 from $18.9 million in Q2 2022 primarily due to higher investment tax credits and death benefits on bank owned life insurance policies. The effective tax rate from continuing operations for Q3 2022 and for the nine months ended September 30, 2022 was 22%. Customers expects the full-year 2022 effective tax rate from continuing operations to be approximately 21% to 23%.
Outlook
“Looking ahead, we envision moderate sustainable and responsible organic core growth, maintenance of our margins, improved capital ratios, and higher profitability and are very optimistic about the prospects of our company. We are focused on improving the quality of our balance sheet and deposit franchise and are not focused on growth just for the sake of growth. With about $500 million of loan growth expected in our low-risk specialty lending verticals in fourth quarter 2022, we will have mostly completed our portfolio remix into lower credit risk variable rate loans. As such, we believe that our margin will likely trough in 2022 and we expect margin expansion in 2023 or through the projected rate-hike cycle. Through a combination of revenue growth and prudent expense management, we expect our efficiency ratio to be in the low to mid 40's by early 2023. Customers Bancorp stock at the close of business on October 21, 2022 was trading at $31.17, only 0.8 times tangible book value* at September 30, 2022. Even after selling $500 million of higher yielding consumer installment loans, we continue to expect over $6.00 of core earnings in 2023, two to three years ahead of our previous guidance of $6.00 by 2025/2026,” concluded Mr. Jay Sidhu.

















*Non-GAAP measure. Customers' reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document.
9

Webcast
Date:            Thursday, October 27, 2022        
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 3rd Quarter Earnings Webcast.
You may submit questions in advance of the live webcast by emailing our Communications 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 Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $20 billion in assets, making it one of the 100 largest bank holding companies in the US. Through its primary subsidiary, Customers Bank, commercial and consumer clients benefit from a full suite of technology-enabled tailored product experience delivered by best-in-class customer service. A pioneer in Banking-as-a-Service and digital banking products, Customers Bank is one of the very few banks that provides a blockchain-based 24/7/365 digital payment solution. In addition to traditional lines such as C&I lending, commercial real estate lending, and multi-family lending, Customers Bank also provides a number of national corporate banking services for Lender Finance, Fund Finance, Financial Institutions, Technology and Venture, and Healthcare clients. Major accolades include:
•#3 top-performing bank with over $10 billion in assets at year-end 2021 per S&P Global S&P Global Market Intelligence,
•#6 in top-performing banks with assets between $10 billion and 50 billion in 2021 per American Banker, and
•#21 out of the 100 largest publicly traded banks in 2022 per Forbes.
A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.
“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,” “project,” 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 impact of the ongoing pandemic on the U.S. economy and customer behavior, the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the continued success and acceptance of our blockchain payments system, 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 affect 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, higher inflation and its impacts, and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any
10

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, 2021, 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.
11

Q3 2022 Overview
The following table presents a summary of key earnings and performance metrics for the quarter ended September 30, 2022 and the preceding four quarters:
CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share data and stock price data)
Q3Q2Q1Q4Q3Nine Months Ended September 30,
2022202220222021202120222021
GAAP Profitability Metrics:
Net income available to common shareholders
(from continuing and discontinued operations)
$61,364 $56,519 $74,896 $98,647 $110,241 $192,779 $201,487 
Per share amounts:
Earnings per share - basic
$1.89 $1.73 $2.27 $3.02 $3.40 $5.89 $6.26 
Earnings per share - diluted$1.85 $1.68 $2.18 $2.87 $3.25 $5.72 $6.02 
Book value per common share (1)
$38.46 $37.46 $37.61 $37.32 $35.24 $38.46 $35.24 
CUBI stock price (1)
$29.48 $33.90 $52.14 $65.37 $43.02 $29.48 $43.02 
CUBI stock price as % of book value (1)
77 %90 %139 %175 %122 %77 %122 %
Average shares outstanding - basic32,455,814 32,712,616 32,957,033 32,625,960 32,449,853 32,706,652 32,206,547 
Average shares outstanding - diluted33,226,607 33,579,013 34,327,065 34,320,327 33,868,553 33,706,864 33,487,672 
Shares outstanding (1)
32,475,502 32,449,486 32,957,847 32,913,267 32,537,976 32,475,502 32,537,976 
Return on average assets ("ROAA")1.24 %1.17 %1.63 %2.08 %2.33 %1.34 %1.49 %
Return on average common equity ("ROCE")19.33 %18.21 %24.26 %33.18 %40.82 %20.58 %26.99 %
Efficiency ratio50.00 %42.14 %39.42 %38.70 %33.42 %43.46 %41.07 %
Non-GAAP Profitability Metrics (2):
Core earnings$82,270 $59,367 $75,410 $101,213 $113,876 $217,047 $243,487 
Adjusted pre-tax pre-provision net income$100,994 $105,692 $112,649 $130,595 $167,215 $319,335 $340,451 
Per share amounts:
Core earnings per share - diluted$2.48 $1.77 $2.20 $2.95 $3.36 $6.44 $7.27 
Tangible book value per common share (1)
$38.35 $37.35 $37.50 $37.21 $35.12 $38.35 $35.12 
CUBI stock price as % of tangible book value (1)
77 %91 %139 %176 %122 %77 %122 %
Core ROAA1.64 %1.23 %1.64 %2.13 %2.35 %1.50 %1.76 %
Core ROCE25.91 %19.13 %24.43 %34.04 %42.16 %23.17 %32.61 %
Adjusted ROAA - pre-tax and pre-provision1.95 %2.11 %2.39 %2.70 %3.36 %2.14 %2.37 %
Adjusted ROCE - pre-tax and pre-provision31.01 %33.37 %35.89 %43.25 %60.81 %33.40 %44.30 %
Net interest margin, tax equivalent 3.16 %3.39 %3.60 %4.14 %4.59 %3.38 %3.55 %
Net interest margin, tax equivalent, excluding PPP loans3.18 %3.32 %3.32 %3.12 %3.24 %3.27 %3.17 %
Core efficiency ratio42.57 %41.74 %39.47 %38.14 %30.36 %41.23 %37.31 %
Asset Quality:
Net charge-offs $18,498 $13,481 $7,226 $7,582 $7,104 $39,205 $26,216 
Annualized net charge-offs to average total loans and leases0.47 %0.36 %0.21 %0.21 %0.17 %0.36 %0.22 %
Non-performing loans ("NPLs") to total loans and leases (1)
0.18 %0.18 %0.31 %0.34 %0.34 %0.18 %0.34 %
Reserves to NPLs (1)
466.34 %557.76 %333.15 %277.72 %252.68 %466.34 %252.68 %
Non-performing assets ("NPAs") to total assets0.14 %0.14 %0.23 %0.25 %0.27 %0.14 %0.27 %
Customers Bank Capital Ratios (3):
Common equity Tier 1 capital to risk-weighted assets11.73 %11.46 %11.60 %11.83 %12.77 %11.73 %12.77 %
Tier 1 capital to risk-weighted assets 11.73 %11.46 %11.60 %11.83 %12.77 %11.73 %12.77 %
Total capital to risk-weighted assets 12.98 %12.91 %13.03 %13.11 %14.16 %12.98 %14.16 %
Tier 1 capital to average assets (leverage ratio) 8.10 %8.09 %8.21 %7.93 %8.66 %8.10 %8.66 %
(1) Metric is a spot balance for the last day of each quarter presented.
(2) 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 Q3 2022 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected to apply the CECL capital transition provisions which delayed the effects of CECL on regulatory capital for two years until January 1, 2022, followed by a three-year transition period. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of September 30, 2022, our regulatory capital ratios reflected 75%, or $46.2 million, benefit associated with the CECL transition provisions.

12

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)Nine Months Ended
Q3Q2Q1Q4Q3September 30,
2022202220222021202120222021
Interest income:
Loans and leases$200,457 $168,941 $157,175 $198,000 $233,097 $526,573 $538,822 
Investment securities30,546 25,442 20,295 15,202 8,905 76,283 25,211 
Other4,913 1,951 6,006 835 849 12,870 2,814 
Total interest income235,916 196,334 183,476 214,037 242,851 615,726 566,847 
Interest expense:
Deposits65,380 22,781 13,712 15,415 15,915 101,873 47,226 
FHLB advances4,684 2,316 — 51 5 7,000 6,160 
Subordinated debt2,689 2,689 2,689 2,688 2,689 8,067 8,067 
FRB PPP liquidity facility, federal funds purchased and other borrowings4,131 3,696 2,376 2,189 4,350 10,203 14,014 
Total interest expense76,884 31,482 18,777 20,343 22,959 127,143 75,467 
Net interest income159,032 164,852 164,699 193,694 219,892 488,583 491,380 
Provision (benefit) for credit losses(7,994)23,847 15,997 13,890 13,164 31,850 13,536 
Net interest income after provision (benefit) for credit losses167,026 141,005 148,702 179,804 206,728 456,733 477,844 
Non-interest income:
Interchange and card revenue72 24 76 84 83 172 252 
Deposit fees989 964 940 1,026 994 2,893 2,748 
Commercial lease income7,097 6,592 5,895 5,378 5,213 19,584 15,729 
Bank-owned life insurance 3,449 1,947 8,326 1,984 1,988 13,722 6,432 
Mortgage warehouse transactional fees1,545 1,883 2,015 2,262 3,100 5,443 10,612 
Gain (loss) on sale of SBA and other loans106 1,542 1,507 2,493 5,359 3,155 8,834 
Loss on sale of consumer installment loans (23,465)— — — — (23,465)— 
Loan fees3,008 2,618 2,545 2,513 1,909 8,171 5,015 
Mortgage banking income (loss)125 173 481 262 425 779 1,274 
Gain (loss) on sale of investment securities(2,135)(3,029)(1,063)(49)6,063 (6,227)31,441 
Unrealized gain (loss) on investment securities(259)(203)(276)— — (738)2,720 
Loss on sale of foreign subsidiaries— — — — — — (2,840)
Unrealized gain (loss) on derivatives563 821 964 586 524 2,348 2,622 
Loss on cash flow hedge derivative terminations— — — — — — (24,467)
Other(112)(586)(212)452 (72)(910)504 
Total non-interest income(9,017)12,746 21,198 16,991 25,586 24,927 60,876 
Non-interest expense:
Salaries and employee benefits31,230 25,334 26,607 29,940 26,268 83,171 78,262 
Technology, communication and bank operations19,588 22,738 24,068 22,657 21,281 66,394 60,887 
Professional services6,269 7,415 6,956 7,058 6,871 20,640 19,630 
Occupancy2,605 4,279 3,050 4,336 2,704 9,934 7,807 
Commercial lease depreciation5,966 5,552 4,942 4,625 4,493 16,460 13,199 
FDIC assessments, non-income taxes and regulatory fees2,528 1,619 2,383 2,427 2,313 6,530 7,634 
Loan servicing3,851 4,341 2,371 4,361 4,265 10,563 6,402 
Merger and acquisition related expenses— — — — — — 418 
Loan workout217 179 (38)226 198 358 39 
Advertising and promotion762 353 315 344 302 1,430 1,176 
Deposit relationship adjustment fees— — — — 6,216 — 6,216 
Other3,182 4,395 3,153 5,574 5,098 10,730 11,089 
Total non-interest expense76,198 76,205 73,807 81,548 80,009 226,210 212,759 
Income before income tax expense81,811 77,546 96,093 115,247 152,305 255,450 325,961 
Income tax expense17,899 18,896 19,332 12,993 36,263 56,127 73,947 
Net income from continuing operations$63,912 $58,650 $76,761 $102,254 $116,042 $199,323 $252,014 
(continued)
13

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)Nine Months Ended
Q3Q2Q1Q4Q3September 30,
2022202220222021202120222021
Loss from discontinued operations before income taxes$— $— $— $— $— $— $(20,354)
Income tax expense (benefit) from discontinued operations— — — 1,585 — — 17,682 
Net loss from discontinued operations— — — (1,585)— — (38,036)
Net income63,912 58,650 76,761 100,669 116,042 199,323 213,978 
Preferred stock dividends2,548 2,131 1,865 2,022 2,981 6,544 9,671 
Loss on redemption of preferred stock— — — — 2,820 — 2,820 
Net income available to common shareholders$61,364 $56,519 $74,896 $98,647 $110,241 $192,779 $201,487 
Basic earnings per common share from continuing operations$1.89 $1.73 $2.27 $3.07 $3.40 $5.89 $7.44 
Basic earnings per common share1.89 1.73 2.27 3.02 3.40 5.89 6.26 
Diluted earnings per common share from continuing operations1.85 1.68 2.18 2.92 3.25 5.72 7.15 
Diluted earnings per common share 1.85 1.68 2.18 2.87 3.25 5.72 6.02 
14

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
ASSETS
Cash and due from banks$41,520 $66,703 $55,515 $35,238 $51,169 
Interest earning deposits362,945 178,475 219,085 482,794 1,000,885 
Cash and cash equivalents404,465 245,178 274,600 518,032 1,052,054 
Investment securities, at fair value2,943,694 3,144,882 4,169,853 3,817,150 1,866,697 
Investment securities held to maturity886,294 495,039 — — — 
Loans held for sale5,224 6,595 3,003 16,254 29,957 
Loans receivable, mortgage warehouse, at fair value1,569,090 1,874,603 1,755,758 2,284,325 2,557,624 
Loans receivable, PPP1,154,632 1,570,160 2,195,902 3,250,008 4,957,357 
Loans and leases receivable12,607,742 12,212,995 10,118,855 9,018,298 7,970,599 
Allowance for credit losses on loans and leases(130,197)(156,530)(145,847)(137,804)(131,496)
Total loans and leases receivable, net of allowance for credit losses on loans and leases15,201,267 15,501,228 13,924,668 14,414,827 15,354,084 
FHLB, Federal Reserve Bank, and other restricted stock64,112 74,626 54,553 64,584 57,184 
Accrued interest receivable107,621 98,727 94,669 92,239 93,514 
Bank premises and equipment, net6,610 6,755 8,233 8,890 9,944 
Bank-owned life insurance336,130 335,153 332,239 333,705 331,423 
Goodwill and other intangibles3,629 3,629 3,678 3,736 3,794 
Other assets408,575 340,184 298,212 305,611 310,271 
Total assets$20,367,621 $20,251,996 $19,163,708 $19,575,028 $19,108,922 
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand, non-interest bearing deposits$2,993,793 $4,683,030 $4,594,428 $4,459,790 $4,954,331 
Interest bearing deposits14,528,645 12,261,689 11,821,132 12,318,134 12,016,694 
Total deposits17,522,438 16,944,719 16,415,560 16,777,924 16,971,025 
Federal funds purchased365,000 770,000 700,000 75,000 — 
FHLB advances500,000 635,000 — 700,000 — 
Other borrowings123,515 123,450 223,230 223,086 223,151 
Subordinated debt181,882 181,812 181,742 181,673 181,603 
Accrued interest payable and other liabilities287,855 243,625 265,770 251,128 448,844 
Total liabilities18,980,690 18,898,606 17,786,302 18,208,811 17,824,623 
Preferred stock137,794 137,794 137,794 137,794 137,794 
Common stock34,948 34,922 34,882 34,722 33,818 
Additional paid in capital549,066 545,670 542,402 542,391 525,894 
Retained earnings898,511 837,147 780,628 705,732 607,085 
Accumulated other comprehensive income (loss), net(156,126)(124,881)(62,548)(4,980)1,488 
Treasury stock, at cost(77,262)(77,262)(55,752)(49,442)(21,780)
Total shareholders' equity1,386,931 1,353,390 1,377,406 1,366,217 1,284,299 
Total liabilities and shareholders' equity$20,367,621 $20,251,996 $19,163,708 $19,575,028 $19,108,922 

15

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
Three Months Ended
September 30, 2022June 30, 2022September 30, 2021
Average BalanceInterest Income or Expense
Average Yield or Cost (%)
Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)
Assets
Interest earning deposits $528,001 $2,949 2.22%$434,950 $919 0.85%$1,279,983 $490 0.15%
Investment securities (1)
3,770,922 30,546 3.24%4,104,463 25,442 2.48%1,511,319 8,905 2.36%
Loans and leases:
Commercial & industrial:
Specialty lending loans and leases (2)
5,064,730 64,753 5.07%4,068,175 39,160 3.86%1,732,323 16,393 3.75%
Other commercial & industrial loans (2)
1,585,136 18,794 4.70%1,509,655 14,706 3.91%1,292,297 12,259 3.76%
Commercial loans to mortgage companies1,623,624 17,092 4.18%1,898,554 15,615 3.30%2,658,020 21,065 3.14%
Multi-family loans2,206,953 20,427 3.67%1,845,527 17,313 3.76%1,443,846 13,259 3.64%
Loans receivable, PPP1,349,403 14,666 4.31%1,863,429 20,572 4.43%5,778,367 117,102 8.04%
Non-owner occupied commercial real estate loans1,372,244 15,595 4.51%1,307,995 12,749 3.91%1,346,629 12,656 3.73%
Residential mortgages513,694 5,008 3.87%515,612 4,898 3.81%325,851 2,874 3.50%
Installment loans1,938,199 44,122 9.03%1,909,551 43,928 9.23%1,615,411 37,489 9.21%
Total loans and leases (3)
15,653,983 200,457 5.08%14,918,498 168,941 4.54%16,192,744 233,097 5.71%
Other interest-earning assets68,549 1,964 11.37%68,025 1,032 6.09%49,780 359 2.86%
Total interest-earning assets20,021,455 235,916 4.68%19,525,936 196,334 4.03%19,033,826 242,851 5.06%
Non-interest-earning assets492,911 530,084 705,514 
Total assets $20,514,366 $20,056,020 $19,739,340 
Liabilities
Interest checking accounts6,669,787 33,685 2.00%6,409,617 13,644 0.85%4,537,421 7,677 0.67%
Money market deposit accounts5,789,991 24,348 1.67%4,704,767 7,523 0.64%5,131,433 5,569 0.43%
Other savings accounts625,908 1,818 1.15%695,176 758 0.44%1,376,077 1,750 0.50%
Certificates of deposit1,141,970 5,529 1.92%530,180 856 0.65%614,404 919 0.59%
Total interest-bearing deposits (4)
14,227,656 65,380 1.82%12,339,740 22,781 0.74%11,659,335 15,915 0.54%
Federal funds purchased513,011 2,871 2.22%642,747 1,429 0.89%— — —%
FRB PPP liquidity facility— — —%— — —%2,788,897 2,460 0.35%
Borrowings874,497 8,633 3.92%940,068 7,272 3.10%371,077 4,584 4.90%
Total interest-bearing liabilities15,615,164 76,884 1.95%13,922,555 31,482 0.91%14,819,309 22,959 0.62%
Non-interest-bearing deposits (4)
3,245,963 4,491,574 3,335,198 
Total deposits and borrowings18,861,127 1.62%18,414,129 0.69%18,154,507 0.50%
Other non-interest-bearing liabilities255,735 259,279 310,519 
Total liabilities 19,116,862 18,673,408 18,465,026 
Shareholders' equity1,397,504 1,382,612 1,274,314 
Total liabilities and shareholders' equity$20,514,366 $20,056,020 $19,739,340 
Net interest income159,032 164,852 219,892 
Tax-equivalent adjustment (5)
334 270 290 
Net interest earnings$159,366 $165,122 $220,182 
Interest spread3.06%3.35%4.56%
Net interest margin3.16%3.38%4.58%
Net interest margin tax equivalent (5)
3.16%3.39%4.59%
Net interest margin tax equivalent excl. PPP (6)
3.18%3.32%3.24%
(continued)
16

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
(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 1.48%, 0.54% and 0.42% for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively.
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021, 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 September 30, 2022, June 30, 2022 and September 30, 2021, 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.
17

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
Nine Months Ended
September 30, 2022September 30, 2021
Average Balance
Interest Income or ExpenseAverage Yield or Cost (%)Average BalanceInterest Income or ExpenseAverage Yield or Cost (%)
Assets
Interest earning deposits $595,305 $4,197 0.94%$1,034,923 $980 0.13%
Investment securities (1)
3,969,809 76,283 2.56%1,461,070 25,211 2.30%
Loans and leases:
Commercial & industrial:
Specialty lending loans and leases (2)
3,963,180 127,304 4.29%1,560,615 43,658 3.74%
Other commercial & industrial loans (2)
1,496,772 46,768 4.18%1,357,028 38,631 3.81%
Commercial loans to mortgage companies1,785,495 46,713 3.50%2,837,549 65,925 3.11%
Multi-family loans1,863,915 51,506 3.69%1,560,565 44,120 3.78%
Loans receivable, PPP1,946,651 72,132 4.95%5,515,819 197,071 4.78%
Non-owner occupied commercial real estate loans1,331,037 40,551 4.07%1,354,745 38,637 3.81%
Residential mortgages482,263 13,586 3.77%348,369 9,486 3.64%
Installment loans1,881,160 128,013 9.10%1,470,024 101,294 9.21%
Total loans and leases (3)
14,750,473 526,573 4.77%16,004,714 538,822 4.50%
Other interest-earning assets62,955 8,673 
NM (7)
62,205 1,834 3.94%
Total interest-earning assets19,378,542 615,726 4.25%18,562,912 566,847 4.08%
Non-interest-earning assets526,437 632,202 
Total assets $19,904,979 $19,195,114 
Liabilities
Interest checking accounts$6,286,224 $55,059 1.17%$3,584,223 $19,929 0.74%
Money market deposit accounts5,128,270 36,545 0.95%4,811,540 17,278 0.48%
Other savings accounts732,801 3,359 0.61%1,415,595 6,227 0.59%
Certificates of deposit710,130 6,910 1.30%646,257 3,792 0.78%
Total interest-bearing deposits (4)
12,857,425 101,873 1.06%10,457,615 47,226 0.60%
Federal funds purchased416,344 4,374 1.40%29,286 15 0.07%
FRB PPP liquidity facility— — —%3,525,560 9,229 0.35%
Borrowings783,644 20,896 3.57%659,334 18,997 3.85%
Total interest-bearing liabilities14,057,413 127,143 1.21%14,671,795 75,467 0.69%
Non-interest-bearing deposits (4)
4,206,778 3,016,837 
Total deposits and borrowings18,264,191 0.93%17,688,632 0.57%
Other non-interest-bearing liabilities250,783 295,752 
Total liabilities 18,514,974 17,984,384 
Shareholders' equity1,390,005 1,210,730 
Total liabilities and shareholders' equity$19,904,979 $19,195,114 
Net interest income488,583 491,380 
Tax-equivalent adjustment (5)
843 871 
Net interest earnings$489,426 $492,251 
Interest spread3.32%3.51%
Net interest margin3.37%3.54%
Net interest margin tax equivalent (5)
3.38%3.55%
Net interest margin tax equivalent excl. PPP (6)
3.27%3.17%
(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 0.80% and 0.47% for the nine months ended September 30, 2022 and 2021, respectively.
(continued)
18

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED (CONTINUED)
(Dollars in thousands)
(5) Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the nine months ended September 30, 2022 and 2021, 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 nine months ended September 30, 2022 and 2021, 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.
(7) Not meaningful.
19

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Commercial:
Commercial & industrial:
Specialty lending$5,103,974 $4,599,640 $2,973,544 $2,403,991 $1,736,966 
Other commercial & industrial1,064,332 1,037,443 947,895 942,679 867,401 
Multi-family2,267,376 2,012,920 1,705,027 1,486,308 1,387,166 
Loans to mortgage companies1,708,587 1,975,189 1,830,121 2,362,438 2,626,483 
Commercial real estate owner occupied726,670 710,577 701,893 654,922 656,044 
Loans receivable, PPP1,154,632 1,570,160 2,195,902 3,250,008 4,957,357 
Commercial real estate non-owner occupied1,263,211 1,152,869 1,140,311 1,121,238 1,144,643 
Construction136,133 195,687 161,024 198,981 198,607 
Total commercial loans and leases13,424,915 13,254,485 11,655,717 12,420,565 13,574,667 
Consumer:
Residential466,888 460,228 469,426 350,984 260,820 
Manufactured housing46,990 48,570 50,669 52,861 55,635 
Installment:
Personal1,079,267 1,641,748 1,618,096 1,433,538 1,342,650 
Other318,628 259,322 279,610 310,937 281,765 
Total consumer loans1,911,773 2,409,868 2,417,801 2,148,320 1,940,870 
Total loans and leases$15,336,688 $15,664,353 $14,073,518 $14,568,885 $15,515,537 

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
September 30,June 30,March 31,December 31,September 30,
20222022202220212021
Demand, non-interest bearing$2,993,793 $4,683,030 $4,594,428 $4,459,790 $4,954,331 
Demand, interest bearing7,124,663 6,644,398 5,591,468 6,488,406 5,023,081 
Total demand deposits10,118,456 11,327,428 10,185,896 10,948,196 9,977,412 
Savings592,002 640,062 802,395 973,317 1,310,343 
Money market4,913,967 4,254,205 4,981,077 4,349,073 5,090,121 
Time deposits1,898,013 723,024 446,192 507,338 593,149 
Total deposits$17,522,438 $16,944,719 $16,415,560 $16,777,924 $16,971,025 

20


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)As of September 30, 2022As of June 30, 2022As of September 30, 2021
Total loansNon accrual /NPLsAllowance for credit lossesTotal NPLs to total loansTotal reserves to total NPLsTotal loansNon accrual /NPLsAllowance for credit lossesTotal NPLs to total loansTotal reserves to total NPLsTotal loansNon accrual /NPLsAllowance for credit lossesTotal NPLs to total loansTotal reserves to total NPLs
Loan type
Commercial & industrial, including specialty lending (1)
$6,307,803 $4,078 $15,131 0.06 %371.04 %$5,737,670 $4,061 $11,081 0.07 %272.86 %$2,673,226 $6,951 $10,860 0.26 %156.24 %
Multi-family2,263,268 1,158 14,244 0.05 %1230.05 %2,008,784 1,153 9,765 0.06 %846.92 %1,369,876 24,524 4,397 1.79 %17.93 %
Commercial real estate owner occupied726,670 2,198 6,220 0.30 %282.98 %710,577 2,913 4,745 0.41 %162.89 %656,044 2,412 3,617 0.37 %149.96 %
Commercial real estate non-owner occupied1,263,211 — 11,332 — %— %1,152,869 — 8,880 — %— %1,144,643 2,845 7,375 0.25 %259.23 %
Construction136,133 — 1,614 — %— %195,687 — 1,179 — %— %198,607 — 886 — %— %
Total commercial loans and leases receivable10,697,085 7,434 48,541 0.07 %652.96 %9,805,587 8,127 35,650 0.08 %438.66 %6,042,396 36,732 27,135 0.61 %73.87 %
Residential465,772 6,438 5,453 1.38 %84.70 %457,768 6,258 5,578 1.37 %89.13 %248,153 7,738 1,912 3.12 %24.71 %
Manufactured housing46,990 2,584 4,482 5.50 %173.45 %48,570 3,071 4,080 6.32 %132.86 %55,635 3,520 4,410 6.33 %125.28 %
Installment1,397,895 6,848 71,721 0.49 %1047.33 %1,901,070 5,965 111,222 0.31 %1864.58 %1,624,415 3,544 98,039 0.22 %2766.34 %
Total consumer loans receivable1,910,657 15,870 81,656 0.83 %514.53 %2,407,408 15,294 120,880 0.64 %790.38 %1,928,203 14,802 104,361 0.77 %705.05 %
Loans and leases receivable (1)
12,607,742 23,304 130,197 0.18 %558.69 %12,212,995 23,421 156,530 0.19 %668.33 %7,970,599 51,534 131,496 0.65 %255.16 %
Loans receivable, PPP1,154,632 — — — %— %1,570,160 — — — %— %4,957,357 — — — %— %
Loans receivable, mortgage warehouse, at fair value1,569,090 — — — %— %1,874,603 — — — %— %2,557,624 — — — %— %
Total loans held for sale5,224 4,615 — 88.34 %— %6,595 4,643 — 70.40 %— %29,957 507 — 1.69 %— %
Total portfolio$15,336,688 $27,919 $130,197 0.18 %466.34 %$15,664,353 $28,064 $156,530 0.18 %557.76 %$15,515,537 $52,041 $131,496 0.34 %252.68 %
(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.
21


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
Q3Q2Q1Q4Q3Nine Months Ended September 30,
2022202220222021202120222021
Loan type
Commercial & industrial, including specialty lending$2,581 $(416)$(59)$240 $116 $2,106 $208 
Multi-family— 1,990 (337)— — 1,653 1,132 
Commercial real estate owner occupied— (42)(7)66 50 (49)183 
Commercial real estate non-owner occupied4,831 159 (8)(14)943 4,982 874 
Construction(10)(103)(113)(3)(3)(226)(122)
Residential(13)(39)(2)(6)54 (54)82 
Installment11,109 11,932 7,752 7,299 5,944 30,793 23,859 
Total net charge-offs (recoveries) from loans held for investment$18,498 $13,481 $7,226 $7,582 $7,104 $39,205 $26,216 

22


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED
We believe 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 our 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
Nine Months Ended
September 30,
Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
(Dollars in thousands except per share data)
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
GAAP net income to common shareholders$61,364 $1.85 $56,519 $1.68 $74,896 $2.18 $98,647 $2.87 $110,241 $3.25 $192,779 $5.72 $201,487 $6.02 
Reconciling items (after tax):
Net loss from discontinued operations— — — — — — 1,585 0.05 — — — — 38,036 1.14 
Severance expense1,058 0.03 — — — — — — — — 1,058 0.03 1,517 0.05 
Impairments on fixed assets and leases126 0.00 705 0.02 220 0.01 1,118 0.03 — — 1,051 0.03 — — 
Merger and acquisition related expenses— — — — — — — — — — — — 320 0.01 
Loss on sale of consumer installment loans18,221 0.55 — — — — — — — — 18,221 0.54 — — 
Legal reserves— — — — — — — — 897 0.03 — — 897 0.03 
(Gains) losses on investment securities1,859 0.06 2,494 0.07 1,030 0.0343 0.00 (4,591)(0.14)5,383 0.16 (26,058)(0.78)
Loss on sale of foreign subsidiaries— — — — — — — — — — — — 2,150 0.06 
Loss on cash flow hedge derivative terminations— — — — — — — — — — — — 18,716 0.56 
Derivative credit valuation adjustment(358)(0.01)(351)(0.01)(736)(0.02)(180)(0.01)(198)(0.01)(1,445)(0.04)(1,105)(0.03)
Deposit relationship adjustment fees— — — — — — — — 4,707 0.14 — — 4,707 0.14 
Loss on redemption of preferred stock— — — — — — — — 2,820 0.08 — — 2,820 0.08 
Core earnings$82,270 $2.48 $59,367 $1.77 $75,410 $2.20 $101,213 $2.95 $113,876 $3.36 $217,047 $6.44 $243,487 $7.27 





23


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

Core Earnings, excluding PPP - Customers Bancorp
Nine Months Ended
September 30,
Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
(Dollars in thousands except per share data)
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
USD
Per share
GAAP net income to common shareholders$61,364 $1.85 $56,519 $1.68 $74,896 $2.18 $98,647 $2.87 $110,241 $3.25 $192,779 $5.72 $201,487 $6.02 
Less: PPP net income (after tax)5,846 0.18 13,066 0.39 24,713 0.72 64,323 1.87 81,337 2.40 43,625 1.29 130,728 3.90 
Net income to common shareholders, excluding PPP55,518 1.67 43,453 1.29 50,183 1.46 34,324 1.00 28,904 0.85 149,154 4.43 70,759 2.11 
Reconciling items (after tax):
Net loss from discontinued operations— — — — — — 1,585 0.05 — — — — 38,036 1.14 
Severance expense1,058 0.03 — — — — — — — — 1,058 0.03 1,517 0.05 
Impairments on fixed assets and leases126 0.00 705 0.02 220 0.01 1,118 0.03 — — 1,051 0.03 — — 
Merger and acquisition related expenses— — — — — — — — — — — — 320 0.01 
Loss on sale of consumer installment loans18,221 0.55 — — — — — — — — 18,221 0.54 — — 
Legal reserves— — — — — — — — 897 0.03 — — 897 0.03 
(Gains) losses on investment securities1,859 0.06 2,494 0.071,030 0.0343 0.00 (4,591)(0.14)5,383 0.16 (26,058)(0.78)
Loss on sale of foreign subsidiaries— — — — — — — — — — — — 2,150 0.06 
Loss on cash flow hedge derivative terminations— — — — — — — — — — — — 18,716 0.56 
Derivative credit valuation adjustment(358)(0.01)(351)(0.01)(736)(0.02)(180)(0.01)(198)(0.01)(1,445)(0.04)(1,105)(0.03)
Deposit relationship adjustment fees— — — — — — — — 4,707 0.14 — — 4,707 0.14 
Loss on redemption of preferred stock— — — — — — — — 2,820 0.08 — — 2,820 0.08 
Core earnings, excluding PPP$76,424 $2.30 $46,301 $1.38 $50,697 $1.48 $36,890 $1.07 $32,539 $0.96 $173,422 $5.15 $112,759 $3.37 
















24


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core Return on Average Assets - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
GAAP net income$63,912 $58,650 $76,761 $100,669 $116,042 $199,323 $213,978 
Reconciling items (after tax):
Net loss from discontinued operations— — — 1,585 — — 38,036 
Severance expense1,058 — — — — 1,058 1,517 
Impairments on fixed assets and leases126 705 220 1,118 — 1,051 — 
Merger and acquisition related expenses
— — — — — — 320 
Loss on sale of consumer installment loans18,221 — — — — 18,221 — 
Legal reserves— — — — 897 — 897 
(Gains) losses on investment securities1,859 2,494 1,030 43 (4,591)5,383 (26,058)
Loss on sale of foreign subsidiaries— — — — — — 2,150 
Loss on cash flow hedge derivative terminations— — — — — — 18,716 
Derivative credit valuation adjustment(358)(351)(736)(180)(198)(1,445)(1,105)
Deposit relationship adjustment fees— — — — 4,707 — 4,707 
Core net income
$84,818 $61,498 $77,275 $103,235 $116,857 $223,591 $253,158 
Average total assets
$20,514,366 $20,056,020 $19,129,330 $19,214,241 $19,739,340 $19,904,979 $19,195,114 
Core return on average assets1.64 %1.23 %1.64 %2.13 %2.35 %1.50 %1.76 %


Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
GAAP net income$63,912 $58,650 $76,761 $100,669 $116,042 $199,323 $213,978 
Reconciling items:
Income tax expense
17,899 18,896 19,332 12,993 36,263 56,127 73,947 
Provision (benefit) for credit losses
(7,994)23,847 15,997 13,890 13,164 31,850 13,536 
Provision (benefit) for credit losses on unfunded commitments254 608 (109)352 669 753 (572)
Severance expense1,363 — — — — 1,363 2,004 
Net loss from discontinued operations— — — 1,585 — — 38,036 
Impairments on fixed assets and leases162 914 286 1,260 — 1,362 — 
Merger and acquisition related expenses
— — — — — — 418 
Loss on sale of consumer installment loans23,465 — — — — 23,465 — 
Legal reserves— — — — 1,185 — 1,185 
(Gains) losses on investment securities2,394 3,232 1,339 49 (6,063)6,965 (34,161)
Loss on sale of foreign subsidiaries— — — — — — 2,840 
Loss on cash flow hedge derivative terminations— — — — — — 24,467 
Derivative credit valuation adjustment(461)(455)(957)(203)(261)(1,873)(1,443)
Deposit relationship adjustment fees— — — — 6,216 — 6,216 
Adjusted net income - pre-tax pre-provision
$100,994 $105,692 $112,649 $130,595 $167,215 $319,335 $340,451 
Average total assets
$20,514,366 $20,056,020 $19,129,330 $19,214,241 $19,739,340 $19,904,979 $19,195,114 
Adjusted ROAA - pre-tax pre-provision1.95 %2.11 %2.39 %2.70 %3.36 %2.14 %2.37 %

25


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Core Return on Average Common Equity - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
GAAP net income to common shareholders$61,364 $56,519 $74,896 $98,647 $110,241 $192,779 $201,487 
Reconciling items (after tax):
Net loss from discontinued operations— — — 1,585 — — 38,036 
Severance expense1,058 — — — — 1,058 1,517 
Impairments on fixed assets and leases126 705 220 1,118 — 1,051 — 
Merger and acquisition related expenses— — — — — — 320 
Loss on sale of consumer installment loans18,221 — — — — 18,221 — 
Legal reserves— — — — 897 — 897 
(Gains) losses on investment securities1,859 2,494 1,030 43 (4,591)5,383 (26,058)
Loss on sale of foreign subsidiaries— — — — — — 2,150 
Loss on cash flow hedge derivative terminations— — — — — — 18,716 
Derivative credit valuation adjustment(358)(351)(736)(180)(198)(1,445)(1,105)
Deposit relationship adjustment fees— — — — 4,707 — 4,707 
Loss on redemption of preferred stock— — — — 2,820 — 2,820 
Core earnings$82,270 $59,367 $75,410 $101,213 $113,876 $217,047 $243,487 
Average total common shareholders' equity $1,259,711 $1,244,819 $1,252,022 $1,179,478 $1,071,566 $1,252,212 $998,221 
Core return on average common equity25.91 %19.13 %24.43 %34.04 %42.16 %23.17 %32.61 %


Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
GAAP net income to common shareholders$61,364 $56,519 $74,896 $98,647 $110,241 $192,779 $201,487 
Reconciling items:
Income tax expense
17,899 18,896 19,332 12,993 36,263 56,127 73,947 
Provision (benefit) for credit losses
(7,994)23,847 15,997 13,890 13,164 31,850 13,536 
Provision (benefit) for credit losses on unfunded commitments254 608 (109)352 669 753 (572)
Net loss from discontinued operations— — — 1,585 — — 38,036 
Severance expense1,363 — — — — 1,363 2,004 
Impairments on fixed assets and leases162 914 286 1,260 — 1,362 — 
Merger and acquisition related expenses— — — — — — 418 
Loss on sale of consumer installment loans23,465 — — — — 23,465 — 
Legal reserves— — — — 1,185 — 1,185 
(Gains) losses on investment securities2,394 3,232 1,339 49 (6,063)6,965 (34,161)
Loss on sale of foreign subsidiaries— — — — — — 2,840 
Loss on cash flow hedge derivative terminations— — — — — — 24,467 
Derivative credit valuation adjustment(461)(455)(957)(203)(261)(1,873)(1,443)
Deposit relationship adjustment fees— — — — 6,216 — 6,216 
Loss on redemption of preferred stock— — — — 2,820 — 2,820 
Pre-tax pre-provision adjusted net income available to common shareholders$98,446 $103,561 $110,784 $128,573 $164,234 $312,791 $330,780 
Average total common shareholders' equity$1,259,711 $1,244,819 $1,252,022 $1,179,478 $1,071,566 $1,252,212 $998,221 
Adjusted ROCE - pre-tax pre-provision31.01 %33.37 %35.89 %43.25 %60.81 %33.40 %44.30 %
26


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)
Net Interest Margin, Tax Equivalent - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
GAAP net interest income$159,032 $164,852 $164,699 $193,694 $219,892 $488,583 $491,380 
Tax-equivalent adjustment334 270 239 276 290 843 871 
Net interest income tax equivalent$159,366 $165,122 $164,938 $193,970 $220,182 $489,426 $492,251 
Average total interest earning assets$20,021,455 $19,525,936 $18,572,308 $18,576,433 $19,033,826 $19,378,542 $18,562,912 
Net interest margin, tax equivalent3.16 %3.39 %3.60 %4.14 %4.59 %3.38 %3.55 %

Net Interest Margin, Tax Equivalent, excluding PPP - Customers Bancorp
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
GAAP net interest income$159,032 $164,852 $164,699 $193,694 $219,892 $488,583 $491,380 
PPP net interest income(9,632)(18,946)(34,615)(78,647)(112,005)(63,193)(182,632)
Tax-equivalent adjustment334 270 239 276 290 843 871 
Net interest income, tax equivalent, excluding PPP$149,734 $146,176 $130,323 $115,323 $108,177 $426,233 $309,619 
GAAP average total interest earning assets$20,021,455 $19,525,936 $18,572,308 $18,576,433 $19,033,826 $19,378,542 $18,562,912 
Average PPP loans(1,349,403)(1,863,429)(2,641,318)(3,898,607)(5,778,367)(1,946,651)(5,515,819)
Adjusted average total interest earning assets$18,672,052 $17,662,507 $15,930,990 $14,677,826 $13,255,459 $17,431,891 $13,047,093 
Net interest margin, tax equivalent, excluding PPP3.18 %3.32 %3.32 %3.12 %3.24 %3.27 %3.17 %

Loan Yield, excluding PPP
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
Interest income on loans and leases$200,457 $168,941 $157,175 $198,000 $233,097 $526,573 $538,822 
PPP interest income(14,666)(20,572)(36,894)(82,086)(117,102)(72,132)(197,071)
Interest income on core loans (Loans and leases, excluding PPP)$185,791 $148,369 $120,281 $115,914 $115,995 $454,441 $341,751 
Average total loans and leases$15,653,983 $14,918,498 $13,656,991 $14,335,370 $16,192,744 $14,750,473 $16,004,714 
Average PPP loans(1,349,403)(1,863,429)(2,641,318)(3,898,607)(5,778,367)(1,946,651)(5,515,819)
Adjusted average total loans and leases$14,304,580 $13,055,069 $11,015,673 $10,436,763 $10,414,377 $12,803,822 $10,488,895 
Loan yield, excluding PPP5.15 %4.56 %4.43 %4.41 %4.42 %4.75 %4.36 %




27


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
Nine Months Ended
September 30,
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 202120222021
GAAP net interest income$159,032 $164,852 $164,699 $193,694 $219,892 $488,583 $491,380 
GAAP non-interest income$(9,017)$12,746 $21,198 $16,991 $25,586 $24,927 $60,876 
Loss on sale of consumer installment loans23,465 — — — — 23,465 — 
(Gains) losses on investment securities2,394 3,232 1,339 49 (6,063)6,965 (34,161)
Derivative credit valuation adjustment(461)(455)(957)(203)(261)(1,873)(1,443)
Loss on cash flow hedge derivative terminations— — — — — — 24,467 
Loss on sale of foreign subsidiaries— — — — — — 2,840 
Core non-interest income16,381 15,523 21,580 16,837 19,262 53,484 52,579 
Core revenue$175,413 $180,375 $186,279 $210,531 $239,154 $542,067 $543,959 
GAAP non-interest expense$76,198 $76,205 $73,807 $81,548 $80,009 $226,210 $212,759 
Severance expense(1,363)— — — — (1,363)(2,004)
Impairments on fixed assets and leases(162)(914)(286)(1,260)— (1,362)— 
Legal reserves— — — — (1,185)— (1,185)
Merger and acquisition related expenses— — — — — — (418)
Deposit relationship adjustment fees— — — — (6,216)— (6,216)
Core non-interest expense$74,673 $75,291 $73,521 $80,288 $72,608 $223,485 $202,936 
Core efficiency ratio (1)
42.57 %41.74 %39.47 %38.14 %30.36 %41.23 %37.31 %
(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)Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
GAAP total shareholders' equity$1,386,931 $1,353,390 $1,377,406 $1,366,217 $1,284,299 
Reconciling items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(137,794)
   Goodwill and other intangibles(3,629)(3,629)(3,678)(3,736)(3,794)
Tangible common equity$1,245,508 $1,211,967 $1,235,934 $1,224,687 $1,142,711 
GAAP total assets$20,367,621 $20,251,996 $19,163,708 $19,575,028 $19,108,922 
Reconciling items:
Goodwill and other intangibles(3,629)(3,629)(3,678)(3,736)(3,794)
Tangible assets$20,363,992 $20,248,367 $19,160,030 $19,571,292 $19,105,128 
Tangible common equity to tangible assets6.12 %5.99 %6.45 %6.26 %5.98 %

28


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)Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
GAAP total shareholders' equity$1,386,931 $1,353,390 $1,377,406 $1,366,217 $1,284,299 
Reconciling items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(137,794)
   Goodwill and other intangibles(3,629)(3,629)(3,678)(3,736)(3,794)
Tangible common equity$1,245,508 $1,211,967 $1,235,934 $1,224,687 $1,142,711 
GAAP total assets$20,367,621 $20,251,996 $19,163,708 $19,575,028 $19,108,922 
Loans receivable, PPP(1,154,632)(1,570,160)(2,195,902)(3,250,008)(4,957,357)
Total assets, excluding PPP$19,212,989 $18,681,836 $16,967,806 $16,325,020 $14,151,565 
Reconciling items:
Goodwill and other intangibles(3,629)(3,629)(3,678)(3,736)(3,794)
Tangible assets, excluding PPP$19,209,360 $18,678,207 $16,964,128 $16,321,284 $14,147,771 
Tangible common equity to tangible assets, excluding PPP6.48 %6.49 %7.29 %7.50 %8.08 %

Tangible Book Value per Common Share - Customers Bancorp
(Dollars in thousands except share and per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
GAAP total shareholders' equity$1,386,931 $1,353,390 $1,377,406 $1,366,217 $1,284,299 
Reconciling Items:
   Preferred stock(137,794)(137,794)(137,794)(137,794)(137,794)
   Goodwill and other intangibles(3,629)(3,629)(3,678)(3,736)(3,794)
Tangible common equity$1,245,508 $1,211,967 $1,235,934 $1,224,687 $1,142,711 
Common shares outstanding32,475,502 32,449,486 32,957,847 32,913,267 32,537,976 
Tangible book value per common share$38.35 $37.35 $37.50 $37.21 $35.12 

Core Loans (Total Loans and Leases, excluding PPP)
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
Total loans and leases$15,336,688 $15,664,353 $14,073,518 $14,568,885 $15,515,537 
Loans receivable, PPP(1,154,632)(1,570,160)(2,195,902)(3,250,008)(4,957,357)
Core Loans (Loans and leases, excluding PPP)$14,182,056 $14,094,193 $11,877,616 $11,318,877 $10,558,180 

Total loans and leases, excluding loans to mortgage companies and PPP
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
Total loans and leases$15,336,688 $15,664,353 $14,073,518 $14,568,885 $15,515,537 
Loans to mortgage companies(1,708,587)(1,975,189)(1,830,121)(2,362,438)(2,626,483)
Loans receivable, PPP(1,154,632)(1,570,160)(2,195,902)(3,250,008)(4,957,357)
Total loans and leases, excluding loans to mortgage companies and PPP$12,473,469 $12,119,004 $10,047,495 $8,956,439 $7,931,697 

Total Assets, excluding PPP
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
Total assets$20,367,621 $20,251,996 $19,163,708 $19,575,028 $19,108,922 
Loans receivable, PPP(1,154,632)(1,570,160)(2,195,902)(3,250,008)(4,957,357)
Total assets, excluding PPP$19,212,989 $18,681,836 $16,967,806 $16,325,020 $14,151,565 



29


CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED (CONTINUED)
(Dollars in thousands, except per share data)

Coverage of credit loss reserves for loans and leases held for investment, excluding PPP
(Dollars in thousands except per share data)Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021
Loans and leases receivable$13,762,374 $13,783,155 $12,314,757 $12,268,306 $12,927,956 
Loans receivable, PPP(1,154,632)(1,570,160)(2,195,902)(3,250,008)(4,957,357)
Loans and leases held for investment, excluding PPP$12,607,742 $12,212,995 $10,118,855 $9,018,298 $7,970,599 
Allowance for credit losses on loans and leases$130,197 $156,530 $145,847 $137,804 $131,496 
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP1.03 %1.28 %1.44 %1.53 %1.65 %



30

“A Digital-Forward Super-Community Bank“ Investor Presentation: Q3 2022 Let’s take on tomorrow. October 2022

 
2 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED 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,” “project”, 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 impact of the ongoing pandemic on the U.S. economy and customer behavior, the impact that changes in economy have 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 continued success and acceptance of our blockchain payments system; 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, higher inflation and its impacts, and the effects of changes in accounting standards or policies. 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, 2021, 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 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Community Banking Corporate & Specialty Banking Digital Banking o C&I o CRE o Multi-Family o SBA o SMB Lending o Residential Mortgage o Lender Finance o Fund Finance o Financial Institutions Group o Real Estate Specialty Finance o Loans to Mortgage Companies o Equipment Finance o Tech and Venture Banking o Healthcare Lending Consumer o Checking & Savings o Personal Loan o Student Loan o Credit Card BaaS o MPL Program Commercial o Digital Asset Banking o SMB Bundle o Credit Card Transaction Banking o Treasury Services o Payments Customers Bancorp Snapshot Customers Bancorp, Inc. NYSE: CUBI Headquarters West Reading, PA Offices1 39 FTE Employees 672 Market Capitalization As of 10/21/2022 $1.0B Total Assets $20.4B Tangible Book Value2 $38.35 Share price As of 10/21/2022 $31.17 Data as of 09/30/2022, unless otherwise noted. (1) Offices includes branches, executive offices, Private Banking Offices and Loan Production Offices. (2) Non-GAAP Measure, refer to Appendix for reconciliation. Lines of Business A Digital-Forward Super-Community Bank

 
4 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Q3’22 (vs. Q3’21) Profitability Balance Sheet Credit 3.16% vs. 4.58% NIM $20.4B +7% Total Assets 0.14% -13 bps NPA Ratio3 1.24% vs. 2.33% ROAA $15.3B -1% Total Loans and Leases 0.95% -07 bps Reserve Coverage NA Adjusted PTPP ROAA2 $17.5B +3% Total Deposits3 466.3% vs. 252.7% Reserves to NPLs3 Highlights – GAAP 1. Net income to common shareholders 2. ROAA is the GAAP metric 3. GAAP metric Highlights Diluted EPS $1.85 Net Income1 $61.4M ROCE 19.3% Q3’22

 
5 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Q3’22 (vs. Q3’21) Profitability Balance Sheet Credit 3.18% vs. 3.24% NIM1,2 $19.2B +36% Core Assets1,2 0.14% -13 bps NPA Ratio 1.64% vs. 2.35% Core ROAA1 $14.2B +34% Total Loans and Leases1,2 1.03% -62 bps Reserve Coverage1,2 1.95% vs. 3.36% Adjusted PTPP ROAA1 $17.5B +3% Total Deposits 466.3% vs. 252.7% Reserves to NPLs Highlights – Adjusted/Core Highlights Core ROCE1 25.9% Q3’22 (vs. Q3’21) -26% 1. Non-GAAP Measure, refer to Appendix for reconciliation. 2. Ex PPP vs. 42.2% +140% $2.30$2.48 Core EPS1 Core EPS ex PPP1,2 -28% +135% $76.4 M$82.3M Core Earnings1 Core Earnings ex PPP1,2

 
6 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED o Growth focused in variable rate specialty lending1 verticals with extremely low credit risk. o Portfolio mix2 shift to low risk verticals YoY − Specialty Lending C&I1: 19% to 37% − Consumer installment portfolio: 15% to 10% o $2.7B of the $3.6B loan growth ex PPP YoY in specialty lending1 is from low to no loss verticals Lender Finance-$1.6B, Fund Finance-$1.0B and FIG -$0.1B o Enhanced loan level stress-testing activities and proprietary technology enabled portfolio monitoring to proactively manage and take action, if needed Strategic initiatives we have implemented to best position us for the current and future external environment CREDIT & PORTFOLIO MIX o Managing balance sheet size by slowing outsized total asset growth: ~0.1B,+1% QoQ and $1.3B,+7% YoY o Sale of $500 million of consumer installment loans resulting in lower portfolio credit risk and capital boost o Transfer of $500 million of AFS securities to HTM in Q2’22 avoided further potential material unrealized loss in AOCI o Earnings growth consistently benefitting capital despite AOCI headwinds CAPITAL o Loan portfolio remix expected to be complete in Q4 2022 supporting NIM expansion in 2023 o Disciplined risk-adjusted pricing with targeted 3%+ spread over projected funding cost o Strategic sales from lower yielding AFS book redeployed in higher beta earning assets o Declining proportion of lower yielding PPP loans from 26% to 6% YoY as percentage of total assets leaves additional room for NIM expansion MARGIN o Liquidity almost doubled YoY to ~$10B while proactively paying down $4.8B in PPPLF balances. o Significant core deposit opportunities by onboarding teams and new product development through transaction banking product and services o Significant Liquidity and strong deposit pipeline to fund future core loan growth and transition of the BMTX DSA o Deposit growth of $2.5B from FIG group since Q3’20 LIQUIDITY & FUNDING o Organizational and leadership changes streamlined our structure while enhancing our ability to achieve our strategic business priorities o Despite significant growth, operating expenses did not increase over the prior quarter and a year ago quarter o Realigned the scope and areas of responsibility to simplify the organization structure o Better positioned to serve our clients while maintaining industry leading efficiency ratio of ~43%3 o Onboarded 300+ CBIT customers to-date bringing in over $1.9 billion in deposits o Launch our initial MPL Banking-as-a-Service program pilot in Q4’22 and target $10M+ in annual revenue o Launched Transaction Banking platform to enable continued low cost deposit generation beginning in 2023 o Build out of proprietary front-end digital platform to service the SMB Vendor/Dealer Market to add to SMB bundle offering with expected launch by Q1’23 TECHNOLOGY ORGANIZATIONAL EFFICIENCY 1. Includes owner occupied CRE ($0.2B) for Q3’22 2. Excludes the impact of PPP forgiveness 3. Core efficiency ratio for Q3’22. Non-GAAP measure. Refer to appendix for reconciliation

 
7 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED We are reinventing banking through a cloud-based offering of 24/7 API enabled fully integrated Treasury, Payments and BaaS offerings Digital AssetsFund Finance Tech & Venture Banking Financial Institutions Group API-enabled Digital Solutions Digital Onboarding API Enabled FX CBIT & Crypto On/Off Ramps ERP Integrations Customer Facing API Library Tech-Enabled Banking: Commercial Treasury Services, Payments and BaaS CUBI’s proprietary tech-led product suite will drive: 1. Differentiated primary commercial banking relationships 2. Franchise value from sticky multi-product customer integrations 3. Low-cost deposit franchise of payments and reporting integrated operating accounts BaaS MPL Program API Enabled Wires and ACH BaaS Integrations

 
8 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED A Blockchain-based, instant payments platform to generate low- cost deposits Overview o API connected platform with customers o CBIT deposits stable at ~$1.9 billion over the last few quarters o Onboarded 111 new customers in Q3’22 bring total customers to 301 o Compliance-first, best-in-class onboarding process. o CBIT adoption central to our strategy. Digital banking team closely integrated with the business unit heads Customers Bank Instant Token (CBIT™) An Instant Payments Tool to Serve Diverse Potential Commercial Clients in 2022 and Beyond Freight and Shipping Large Corporate Clients Digital-Asset Related Businesses Healthcare and Payers Real Estate Financial Institutions $1.5 $1.9 $1.8 $2.1 $1.9 Q3’21 Q4’21 Q1’22 Q3’22Q2’22 Deposits $ bil l ions Number of CBIT customers 26 100 190 301 Q4’21Q3’21 Q1’22 Q3’22Q2’22

 
9 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Loans ex PPP1 $ bil l ions • Loan growth ex PPP1: +$0.1B QoQ, 1% QoQ, +$3.6B YoY • Specialty C&I: +$0.5B QoQ, 10% QoQ, +$3.3B YoY • Net growth of $0.1B this quarter driven by Specialty C&I ($0.5B), Multifamily ($0.3B) Community C&I ($0.1B) offset in part by consumer installment loan sale of ($0.5B) and loans to mortgage companies decline of ($0.3B) PPP loans Balance Sheet: Loan Growth and Loan yield $1.5 $2.3 $3.7 $2.4 $1.8 $2.0 $1.7 $0.7 $1.6 $1.6 $2.1 $2.4 $2.4 $1.9 $3.3 $2.4 $1.8 $1.5 $1.7 $2.0 $2.3 $1.2 $1.3 $1.4 $1.3 $1.3 $1.4 $1.4$0.7 $1.1 $1.6 $2.7 $3.2 $4.8 $5.3 $1.2 $1.3 $1.3 $1.3 $1.4 $1.5 $1.6 $11.3 20202019 $11.9 2018 2021 Q1’22 Q2’22 Q3’22 $8.5 $10.0 $11.3 $14.1 $14.2+14% Community C&I Consumer3Specialty C&I2 Multifamily Investment CRE Loans to Mortgage Companies 1. Non-GAAP Measure, refer to Appendix for reconciliation. 2. Includes owner occupied CRE ($0.2B) 3. Includes consumer installment ($1.4B), Mortgages ($0.5B) and Manufactured housing -- +10% -21% $1.2$4.6 $3.3 $2.2 $1.6 4.42% 5.15% 5.00% 4.00% 0.00% 1.00% 2.00% 3.00% 6.00% Q2’22Q3’21 Q4’21 Q1’22 Q3’22 Loan yield ex PPP1 percent • Loan yield increased by ~59 bps in Q3’22 driven by higher proportion of floating rate loans

 
10 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Balance Sheet: Deposit Growth & Deposit cost $6.0 $7.3 $9.0 $12.3 $11.8 $12.3 $1.3 $2.4 $4.5 $4.6 $4.7 $3.0 Q3’22Q2’222018 $1.1 2020 $14.5 2019 $16.8 2021 Q1’22 $7.1 $8.6 $11.3 $16.9$16.4 $17.5 +27% Non-interest bearing deposits Interest bearing deposits Deposits $ bil l ions • Total deposit growth: +$0.6B QoQ, 3% QoQ, +$0.6B YoY, 3% YoY • Proportion of DDAs has increased from 27% in 2018 to 58% in Q3’22 and is well above the pre-pandemic levels 58%DDA % 30% 42% 65% 62% 67%27% 0.42% 1.48% 0.00% 5.00% 3.00% 1.00% 2.00% 4.00% 6.00% Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Deposit cost percent

 
11 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Interest earning assets mix1 Q3’22, percent Interest Rate Sensitive Earning Asset Mix • ~62% of interest earning assets are market sensitive which is greater than the proportion of market sensitive liabilities 51% 8% 25% 13% 2% Fixed LoansFloating Loans Floating Securities Cash Fixed Securities 1. Floating rate loans and securities are defined as assets with resets less than one year and include fixed loans maturing within one year (including PPP loans). 2. Non-GAAP Measure, refer to Appendix for reconciliation. 3. Includes owner occupied CRE ($0.2B) 4. Includes consumer installment ($1.4B), Mortgages ($0.5B) and Manufactured housing 5. Includes Mortgages and Home Equity loans 11% 37% 10% 16% 13% 12% Loan mix ex PPP2 percent • Significant improvement in loan mix with greater proportion of lower credit risk verticals • Pipeline remains strong especially in C&I • Loan mix ex PPP2: Consumer installment (~10% declined from 15% YoY), Consumer mortgages5 (~4%) Community C&I Specialty C&I3 Investment CRE Multifamily Consumer4 Loans to Mortgage Companies As of Q3’22 86 % Commercial Loans

 
12 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Income Statement: Net interest income and margin 3.24% 3.18% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q3’22Q4’21Q3’21 3.00% Q1’22 Q2’22 NIM ex PPP2 percent • NIM excluding PPP consistently above 3.00% $107.9 $115.0 $130.1 $145.9 $149.4 Q3’22Q2’22Q4’21Q3’21 Q1’22 +38% NII ex PPP1 $ mill ions 1. Non-GAAP Measure, refer to Appendix for reconciliation 2. NIM excluding PPP, tax equivalent, refer to appendix for reconciliation • Strong NII growth: +2% QoQ, +38% YoY • NII growth driven by strong loan growth in C&I including specialty lending verticals

 
13 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED $3.5 $2.6 $1.8 $1.3 $1.0 $1.5 $0.7 $0.4 $0.2 Q3’21 Q2’22 Q3’22Q4’21 $0.2 Q1’22 $5.0 $3.3 $2.2 $1.6 $1.2 Rounds 1 & 2 Round 3 PPP loans1 $ bil l ions Fee income recognized from PPP1 $ mill ions • ~$350 million of origination fee income from the program • ~$30 million of remaining deferred origination fees to be recognized 1. As of 09/30/2022 includes all PPP loans facilitated by Customers Bank (originated and purchased). Paycheck Protection Program: Loans and Fees • Reduction of ~$0.4B of PPP loans balance in Q3’22 $102 $72 $30 $15 $11 Q3’22Q1’22Q4’21Q3’21 Q2’22

 
14 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED $1.1 $1.9 $0.3 $3.1 Q4’21Q3’21 $0.5 $3.8 $4.2 Q1’22 $0.2 $0.5 Q2’22 $0.4$3.9 $0.9 $2.9 Q3’22 $2.9 $4.3 $4.4 $4.2 Cash and Cash equivalents Investment securities HTM Investment securities AFS Liquidity $ bil l ions Investment Securities AFS Mix (~50% floating rate) As of Q3’ 2022, percent • Purchased $400 million of senior notes from a securitization collateralized by associated sale of consumer loans • Majority of investment securities are deployed in MBS & CMO and ABS1 • Ample liquidity to fund future loan growth • Portfolio characteristics (as of Q3’22) − Yield, net of hedges: ~3.7% − Effective Duration: ~1.7 years − Floating rate securities: ~50% Liquidity and Investment Securities Mix 46% 35% 18% MBS & CMO ABS1 Corporates Other 1. Includes CLOs

 
15 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED 13.6% 12.9% 12.9% 12.6% 12.8% Q2’22Q3’21 Q3’22E1Q4’21 Q1’22 Total risk-based capital percent 8.1% 7.5% 7.3% 6.5% Q2’22Q3’21 6.5% Q4’21 Q1’22 Q3’22 7.3% TCE/TA excl PPP2 percent $35.12 $37.21 $37.50 $37.35 $38.35 Q3’21 Q2’22Q4’21 Q1’22 Q3’22 $43.16 +9% Tangible book value3 per share o AOCI negatively impacted TCE/TA excl. PPP2 ~0.1% in Q3’22. Total cumulative impact of ~0.8% as of Q3’22 o Expect TBV per share of $40+ by Q4’22E o Expect TCE/TA excl PPP2 to be ~7.5% over the next 3-4 quarters 1. Capital ratios are estimated pending final regulatory report. 2. TCE/TA excl PPP negatively impacted by ~0..8% due to AOCI 3. Non-GAAP Measure, refer to Appendix for reconciliation. Capital: Strong Capital Position AOCI AOCI 0.8% $4.81 10.4% 10.0% 9.9% 9.7% 10.1% Q4’21Q3’21 Q2’22Q1’22 Q3’22E1 CET1 risk-based capital percent

 
16 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED $52 $50 $44 $28 $28 Q2’22Q3’21 Q4’21 Q3’22Q1’22 NPL $ mill ions NCO percent 0.27% 0.25% 0.23% 0.14% 0.14% Q4’21Q3’21 Q1’22 Q3’22Q2’22 NPA as percent of total assets percent o Credit quality remains excellent as evidenced by NPAs/Total Assets of only 0.14% at Q3’22 o Reserves/NPLs was 466.3% at Q3’22 o The Bank has also undertaken several steps to minimize loss risk given the current and forward-looking economic environment: − Loan growth in in low-risk business lines (Lender Finance, Funds Finance and Financial Institutions Group) − Continued to remain focused on limiting exposure to Investment CRE Office (~$132 million) , Investment CRE Retail (~$172 million) and Hospitality (~$452 million) − Enhanced loan level stress-testing activities to proactively take action on credits that could be impacted in stressed economic conditions Credit: Credit Quality and Reserves Remain Strong 0.03% 0.01% -0.02% 0.05% 0.22%0.17% 0.21% 0.21% 0.36% 0.47% Q1’22 Q2’22Q3’21 Q4’21 Q3’22 Commercial Total

 
17 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Industry leading core loan growth and deposit growth supported by best-in-class digital banking Moderating growth in this environment to maintain/expand margin, improve capital ratios while maintaining profitability. On track for $6.00 or higher Core EPS in 2023. Exceptional credit quality Customer centric culture built around service and experience Demonstrated industry leading proprietary technological capabilities as a high-tech, high- touch bank Attractive valuation - Trading at ~0.8X1 tangible book value and ~5X1 2023E consensus. We will consider buying back common stock at below tangible book Let’s take on tomorrow. Key Investment Highlights 1. Based on share price as of October 21, 2022 (~$31.17)

 
ANALYST COVERAGE D.A. Davidson Companies Peter Winter Hovde Group David Bishop Jefferies Group LLC Casey Haire Keefe, Bruyette & Woods Inc. Michael Perito Maxim Group Inc. Michael Diana Piper Sandler Companies Frank Schiraldi Stephens Inc. Matt Breese Wedbush Securities Inc. David Chiaverini B. Riley Financial, Inc.

 
19 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Appendix

 
20 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Seasoned teams led by SPOC RM’s Exceptional service through omnichannel expansion Full service Private Business Banking Instant B2B payments platform Digital bank with over 500K customers API integrations support customer growth Streamlined digital u/w & onboarding HIGH TOUCH HIGH TECH The customer is at the center of everything we do • Single Point of Contact for customers (SPOC) • Technology led customer experience • Customer retention & referrals at an all time high • Industry leading employee retention

 
21 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED ~$20B Assets ~$18B Deposits ~$15B Loans • A Digital-Forward Super- Community Bank • Growth story remains committed to maintaining best in class credit quality • Unique specialty lending strategy customizable to client needs • Technology enhanced products and processes enable scalable loan and deposit growth ~$0.3B ~$0.3B ~$0.2B Assets Deposits Loans WHERE WE STARTED 2009 Our vision for growth has remained a part of our story since the beginning WHERE WE ARE 2022 Q3 ~40% CAGR

 
22 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Let’s take on tomorrow. Environmental, Social & Governance Report Pennsylvania Housing Finance Agency (PHFA) recognized Customers Bank as a top-10 producing lending partner across the state in 2021 for completing 241 mortgages totaling ~$35 million Customers Bank in 2021 financed over $40 million of hydroelectric, solar and low emission domestic natural gas energy projects. Customers Bank’s SBA/Government Guaranteed Lending team ranked 36th in the nation in 2021 with ~$56 million in loans to qualifying small businesses. In total, Customers Bank contributed over $4 million in 2021 through CRA-eligible donations, charitable donations, community sponsorships, and tax credit programs. In addition to these contributions, Customers Bank made ~$50 million of CRA-qualified investments (mutual funds and small business investment companies) to support affordable housing and economic development within the bank’s footprint. Customers Bank ultimately participated in over 350,000 Paycheck Protection Program (PPP) loans worth more than $10 billion as an originator, funder, servicer, or lending partner. It is estimated that this work may have saved as many as 1 million jobs and tens of thousands of business establishments. The Board created the Environmental Social & Governance Committee charging the members to drive a positive impact within the communities we serve and through the people and organizations with whom we do business. Customers Bank was ranked as #1 “medium sized” employer in the Philadelphia region on the basis of its wellness program, culture and leadership commitment, foundational components, strategic planning, communication and marketing, programming and interventions, and reporting and analysis.

 
23 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Consumer loan sale transaction results in significant capital build and lowers the perceived risk of the portfolio s Credit Score1 729 714 736 Collateral Summary Q2’22 Pool Sold Q3’22 DTI (%)1 17.4 21.8 17.9 Total outstanding $1.9B $0.5B $1.4B Transaction Overview Key benefits Consumer installment loan sale of $500 million sold at 99.5% of par Whole loan exposure 100% risk weight Purchase of $400 million of securities collateralized by sold loans 5.5% yield 20% risk weight $100 million subordination Customers Bank Investor o Financial benefits: Capital build through reduction in RWA of ~$420 million and CECL release of ~$37 million. Total Q3’22 financial benefits of ~$13 million pre-tax, which included CECL reserve release net of loss on sale of ~$24 million, including deferred origination cost and other transaction related expenses o Lowers the perceived credit risk of the consumer installment portfolio: Sale of portfolio at 99.5% of par in the current environment validates the superior credit quality of CUBI’s consumer installment loan portfolio 1. DTI and FICO score at time of origination.

 
24 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED 1. DTI and FICO score at time of origination. Note: Data as of September 30, 2022 19% 47% 33% 1% FICO Score1 660-679 750+680-699 700-749 21% 33%23% 11% 5% 6% > 50% 20 – 29.99% 0-9.99% 10 – 19.99% 30 – 39.99% 40 – 49.99% Unknown Geog raphy Profession Deb t to Income ratio Borrower Income 16% 43% 41% $50K -$100K <$50K >$100K 20% 12% 19% 27% 22% West Southwest Midwest Southeast Northeast Consumer Installment Loans Purp ose 76% 13% 6%5% Personal Loan Specialty Home Improvement Student Loan 94% 4% 2% Non COVID-19 Impacted Segments Non-Professional Retail & Restaurants Average FICO Score1 ~736 Average DTI ~17.9% Average borrower income ~$106k Weighted average life of ~1.7 years

 
25 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED CUBI Consumer Loans – Portfolio Characteristics Portfolio borrower income trends • 84% of consumer loans with borrower income greater than 50k • 41% of consumer loans with borrower income greater than 100k 4% 1% 14% 19% 43% 47% 39% 33% 0% 30% 10% 20% 50% 40% 60% Q1’ 22 Q3’ 21 Q1’ 20 Q4’ 20 Q4’ 21 Q2’ 22 Q2’ 20 Q3’ 20 Q1’ 21 Q2’ 21 Q3’ 22 Portfolio FICO1 score trends 660-679 700-749 680-699 750+ • No consumer loans with FICO score < 660 • 80% of consumer loans with FICO score greater than 700 • Loans with FICO scores>750 increase from 25% in Q2’22 to 33% in Q3’22 14% 16% 41% 43%42% 41% 50% 0% 10% 20% 60% 30% 40% Q3’ 22 Q1’ 20 Q2’ 20 Q3’ 20 Q4’ 20 Q1’ 21 Q2’ 21 Q2’ 22 Q3’ 21 Q4’ 21 Q1’ 22 <50k 50k-99.99k >100k 1. FICO score at time of origination.

 
26 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Note: Customers Bancorp’s impairment percentages are considered 1 day+ delinquent or in forbearance. Industry chart is from DV01 Insights Performance Report-Consumer Credit Updated as of August 31, 2022 for Industry and 09/30/2022 for CUBI. September’22 Industry report yet to be released. Impairment of consumer installment loans Percent 09/1903/19 12/1906/19 15.0 03/20 06/20 09/20 12/20 09/2106/21 12/2103/21 06/2203/22 09/22 0.0 5.0 10.0 Industry CUBI CUBI Consumer installment loans impairment remains well below industry levels • CUBI portfolio impairment well below industry levels

 
27 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED (1) Utilized Moody’s September 2022 S1+S3 forecast with qualitative adjustments for Q2 2022 provision. (2) Excludes loans to mortgage companies reported at fair value, loans held for sale and PPP Loans. Credit: Allowance for Credit Losses for Loans and Leases September 30, 2022 ($ in thousands) Amortized Cost Allowance for Credit Losses Lifetime Loss Rate Loans and Leases Receivable: Commercial: Multi-Family 2,263,268 14,244 0.63% Commercial and Industrial 6,307,803 15,131 0.24% Commercial Real Estate Owner Occupied 726,670 6,220 0.86% Commercial Real Estate Non-Owner Occupied 1,263,211 11,332 0.90% Construction 136,133 1,614 1.19% Total Commercial Loans and Leases Receivable $ 10,697,085 $ 48,541 0.45% Consumer: Residential real estate $ 465,772 $ 5,453 1.17% Manufactured housing 46,990 4,482 9.54% Installment 1,397,895 71,721 5.13% Total Consumer Loans Receivable $ 1,910,657 $ 81,656 4.27% Total Loans and Leases $ 12,607,742 $ 130,197 1.03%

 
28 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Liquidity (1) Includes CLOs Liquidity Sources ($000's) 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 YOY Change Cash and Cash Equivalents $1,052,055 $518,032 $274,600 $245,178 $404,465 ($647,589) FHLB Available Borrowing Capacity $2,031,551 $1,798,374 $3,213,767 $2,924,637 $2,999,524 $967,973 FRB Available Borrowing Capacity $186,000 $191,000 $214,908 $244,802 $2,557,704 $2,371,704 Investments (MV AFS + HTM) US Gov't & Agency Debt $0 $0 $0 $0 $0 $0 Agency & Non-Agency MBS & CMO $871,191 $1,838,872 $2,194,349 $1,900,917 $1,844,043 $972,852 Municipals $8,655 $8,430 $7,950 $7,737 $7,351 ($1,304) Corporates $440,892 $580,046 $593,749 $546,336 $532,655 $91,763 ABS1 $540,959 $1,364,227 $1,347,981 $1,160,160 $1,421,075 $880,116 Other AFS $5,000 $25,575 $25,824 $24,771 $24,864 $19,864 Less: Pledged Securities HTM ($12,440) ($11,315) ($16,972) ($19,325) ($17,464) ($5,024) Net Unpledged Securities $1,854,257 $3,805,835 $4,152,881 $3,620,596 $3,812,525 $1,958,268 $5,123,863 $6,313,241 $7,856,156 $7,035,212 $9,774,219 $4,650,356

 
29 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED 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

 
30 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Core Earnings - Customers Bancorp ($ in thousands, except per share data) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 USD Per Share USD Per Share USD Per Share USD Per Share USD Per Share GAAP net income to common shareholders $ 61,364 $ 1.85 $ 56,519 $ 1.68 $ 74,896 $ 2.18 $ 98,647 $ 2.87 $ 110,241 $ 3.25 Reconciling items (after tax): Net loss from discontinued operations - - - - - - 1,585 0.05 - - Severance expense 1,058 0.03 - - - - - - - - Impairments on fixed assets and leases 126 0.00 705 0.02 220 0.01 1,118 0.03 - - Loss on sale of consumer installment loans 18,221 0.55 - - - - - - - - Legal reserves - - - - - - - - 897 0.03 (Gains) losses on investment securities 1,859 0.06 2,494 0.07 1,030 0.03 43 0.00 (4,591) (0.14) Derivative credit valuation adjustment (358) (0.01) (351) (0.01) (736) (0.02) (180) (0.01) (198) (0.01) Deposit relationship adjustment fees - - - - - - - - 4,707 0.14 Loss on redemption of preferred stock - - - - - - - - 2,820 0.08 Core earnings $ 82,270 $ 2.48 $ 59,367 $ 1.77 $ 75,410 $ 2.20 $ 101,213 $ 2.95 $ 113,876 $ 3.36 Reconciliation of Non-GAAP Measures – Unaudited (Contd.)

 
31 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Earnings, Excluding PPP - Customers Bancorp ($ in thousands, not including per share amounts) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 USD Per Share USD Per Share USD Per Share USD Per Share USD Per Share GAAP net income to common shareholders $ 61,364 $ 1.85 $ 56,519 $ 1.68 $ 74,896 $ 2.18 $ 98,647 $ 2.87 $ 110,241 $ 3.25 Less: PPP net income (after tax) 5,846 0.25 13,066 0.39 24,713 0.72 64,323 1.87 81,337 2.40 Net income to common shareholders, excluding PPP 55,518 1.59 43,453 1.29 50,183 1.46 34,324 1.00 28,904 0.85 Reconciling items (after tax): Net loss from discontinued operations - - - - - - 1,585 0.05 - - Severance expense 1,058 0.03 - - - - - - - - Impairments on fixed assets and leases 126 0.00 705 0.02 220 0.01 1,118 0.03 - - Loss on sale of consumer installment loans 18,221 0.55 - - - - - - - - Legal reserves - - - - - - - - 897 0.03 (Gains) losses on investment securities 1,859 0.06 2,494 0.07 1,030 0.03 43 0.00 (4,591) (0.14) Derivative credit valuation adjustment (358) (0.01) (351) (0.01) (736) (0.02) (180) (0.01) (198) (0.01) Deposit relationship adjustment fees - - - - - - - - 4,707 0.14 Loss on redemption of preferred stock - - - - - - - - 2,820 0.08 Core earnings, excluding PPP $ 76,424 $ 2.30 $ 46,301 $ 1.38 $ 50,697 $ 1.48 $ 36,890 $ 1.07 $ 32,539 $ 0.96

 
32 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Core Return on Average Assets - Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP net income $ 63,912 $ 58,650 $ 76,761 $ 100,669 $ 116,042 Reconciling items (after tax): Net loss from discontinued operations - - - 1,585 - Severance expense 1,058 - - - - Impairments on fixed assets and leases 126 705 220 1,118 - Loss on sale of consumer installment loans 18,221 - - - - Legal reserves - - - - 897 (Gains) losses on investment securities 1,859 2,494 1,030 43 (4,591) Derivative credit valuation adjustment (358) (351) (736) (180) (198) Deposit relationship adjustment fees - - - - 4,707 Core net income $ 84,818 $ 61,498 $ 77,275 $ 103,235 $ 116,857 Average total assets $ 20,514,366 $ 20,056,020 $ 19,129,330 $ 19,214,241 $ 19,739,340 Core return on average assets 1.64% 1.23% 1.64% 2.13% 2.35% Reconciliation of Non-GAAP Measures – Unaudited (Contd.)

 
33 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP net income $ 63,912 $ 58,650 $ 76,761 $ 100,669 $ 116,042 Reconciling items: Income tax expense 17,899 18,896 19,332 12,993 36,263 Provision (benefit) for credit losses (7,994) 23,847 15,997 13,890 13,164 Provision (benefit) for credit losses on unfunded commitments 254 608 (109) 352 669 Severance expense 1,363 - - - - Net loss from discontinued operations - - - 1,585 - Impairments on fixed assets and leases 162 914 286 1,260 - Loss on sale of consumer installment loans 23,465 - - - - Legal reserves - - - - 1,185 (Gains) losses on investment securities 2,394 3,232 1,339 49 (6,063) Derivative credit valuation adjustment (461) (455) (957) (203) (261) Deposit relationship adjustment fees - - - - 6,216 Adjusted net income - pre-tax pre-provision $ 100,994 $ 105,692 $ 112,649 $ 130,595 $ 167,215 Average total assets $ 20,514,366 $ 20,056,020 $ 19,129,330 $ 19,214,241 $ 19,739,340 Adjusted ROAA - pre-tax pre-provision 1.95% 2.11% 2.39% 2.70% 3.36% Reconciliation of Non-GAAP Measures – Unaudited (Contd.)

 
34 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Core Return on Average Common Equity – Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP net income to common shareholders $ 61,364 $ 56,519 $ 74,896 $ 98,647 $ 110,241 Reconciling items (after tax): Net loss from discontinued operations - - - 1,585 - Severance expense 1,058 - - - - Impairments on fixed assets and leases 126 705 220 1,118 - Loss on sale of consumer installment loans 18,221 - - Legal reserves - - - - 897 (Gains) losses on investment securities 1,859 2,494 1,030 43 (4,591) Derivative credit valuation adjustment (358) (351) (736) (180) (198) Deposit relationship adjustment fees - - - - 4,707 Loss on redemption of preferred stock - - - - 2,820 Core earnings $ 82,270 $ 59,367 $ 75,410 $ 101,213 $ 113,876 Average total common shareholders' equity $ 1,259,711 $ 1,244,819 $ 1,252,022 $ 1,179,478 $ 1,071,566 Core return on average common equity 25.91% 19.13% 24.43% 34.04% 42.16% Reconciliation of Non-GAAP Measures – Unaudited (Contd.)

 
35 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Core Efficiency Ratio - Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP net interest income $ 159,032 $ 164,852 $ 164,699 $ 193,694 $ 219,892 GAAP non-interest income $ (9,017) $ 12,746 $ 21,198 $ 16,991 $ 25,586 Loss on sale of consumer installment loans 23,465 - - - - (Gains) losses on investment securities 2,394 3,232 1,339 49 (6,063) Derivative credit valuation adjustment (461) (455) (957) (203) (261) Core non-interest income $ 16,381 $ 15,523 $ 21,580 $ 16,837 $ 19,262 Core revenue $ 175,413 $ 180,375 $ 186,279 $ 210,531 $ 239,154 GAAP non-interest expense $ 76,198 $ 76,205 $ 73,807 $ 81,548 $ 80,009 Severance expense (1,363) - - - - Impairments on fixed assets and leases (162) (914) (286) (1,260) - Legal reserves - - - - (1,185) Deposit relationship adjustment fees - - - - (6,216) Core non-interest expense $ 74,673 $ 75,291 $ 73,521 $ 80,288 $ 72,608 Core efficiency ratio (1) 42.57% 41.74% 39.47% 38.14% 30.36% Reconciliation of Non-GAAP Measures – Unaudited (Contd.) (1) Core efficiency ratio calculated as core non-interest expense divided by core revenue.

 
36 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible Equity – Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP - Total shareholders' equity $ 1,386,931 $ 1,353,390 $ 1,377,406 $ 1,366,217 $ 1,284,299 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,678) (3,736) (3,794) Tangible equity $ 1,383,302 $ 1,349,761 $ 1,373,728 $ 1,362,481 $ 1,280,505 Tangible Book Value per Common Share - Customers Bancorp ($ in thousands, except per share data) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP - Total shareholders' equity $ 1,386,931 $ 1,353,390 $ 1,377,406 $ 1,366,217 $ 1,284,299 Reconciling items: Preferred stock (137,794) (137,794) (137,794) (137,794) (137,794) Goodwill and other intangibles (3,629) (3,629) (3,678) (3,736) (3,794) Tangible common equity $ 1,245,508 $ 1,211,967 $ 1,235,934 $ 1,224,687 $ 1,142,711 Common shares outstanding 32,475,502 32,449,486 32,957,847 32,913,267 32,537,976 Tangible book value per common share $ 38.35 $ 37.35 $ 37.50 $ 37.21 $ 35.12

 
37 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible Common Equity to Tangible Assets, Excluding PPP - Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP - Total shareholders' equity $ 1,386,931 $ 1,353,390 $ 1,377,406 $ 1,366,217 $ 1,284,299 Reconciling items: Preferred stock (137,794) (137,794) (137,794) (137,794) (137,794) Goodwill and other intangibles (3,629) (3,629) (3,678) (3,736) (3,794) Tangible common equity $ 1,245,508 $ 1,211,967 $ 1,235,934 $ 1,224,687 $ 1,142,711 GAAP total assets $ 20,367,621 $ 20,251,996 $ 19,163,708 $ 19,575,028 $ 19,108,922 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,678) (3,736) (3,794) PPP Loans (1,154,632) (1,570,160) (2,195,902) (3,250,008) (4,957,357) Tangible assets $ 19,209,360 $ 18,678,207 $ 16,964,128 $ 16,321,284 $ 14,147,771 Tangible common equity to tangible assets, excluding PPP 6.48% 6.49% 7.29% 7.50% 8.08%

 
38 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Tangible Common Equity to Tangible Assets - Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP - Total shareholders' equity $ 1,386,931 $ 1,353,390 $ 1,377,406 $ 1,366,217 $ 1,284,299 Reconciling items: Preferred stock (137,794) (137,794) (137,794) (137,794) (137,794) Goodwill and other intangibles (3,629) (3,629) (3,678) (3,736) (3,794) Tangible common equity $ 1,245,508 $ 1,211,967 $ 1,235,934 $ 1,224,687 $ 1,142,711 GAAP - Total assets $ 20,367,621 $ 20,251,996 $ 19,163,708 $ 19,575,028 $ 19,108,922 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,678) (3,736) (3,794) Tangible assets $ 20,363,992 $ 20,248,367 $ 19,160,030 $ 19,571,292 $ 19,105,128 Tangible common equity to tangible assets 6.12% 5.99% 6.45% 6.26% 5.98%

 
39 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Loans (Total loans and leases, excluding PPP) – Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Total loans and leases $ 15,336,688 $ 15,664,353 $ 14,073,518 $ 14,568,885 $ 15,515,537 PPP loans (1,154,632) (1,570,160) (2,195,902) (3,250,008) (4,957,357) Loans and leases, excluding PPP $ 14,182,056 $ 14,094,193 $ 11,877,616 $ 11,318,877 $ 10,558,180 Total loans and leases, excluding loans to mortgage companies and PPP – Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Total loans and leases $ 15,336,688 $ 15,664,353 $ 14,073,518 $ 14,568,885 $ 15,515,537 Loans to mortgage companies (1,708,587) (1,975,189) (1,830,121) (2,362,438) (2,626,483) PPP loans (1,154,632) (1,570,160) (2,195,902) (3,250,008) (4,957,357) Loans and leases, excluding loans to mortgage companies and PPP $ 12,473,469 $ 12,119,004 $ 10,047,495 $ 8,956,439 $ 7,931,697

 
40 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Coverage of credit loss reserves for loans and leases held for investment, excluding PPP – Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Loans and leases receivable $ 13,762,374 $ 13,783,155 $ 12,314,757 $ 12,268,306 $ 12,927,956 PPP loans (1,154,632) (1,570,160) (2,195,902) (3,250,008) (4,957,357) Loans and leases held for investment, excluding PPP $ 12,607,742 $ 12,212,995 $ 10,118,855 $ 9,018,298 $ 7,970,599 Allowance for credit losses on loans and leases $ 130,197 $ 156,530 $ 145,847 $ 137,804 $ 131,496 Coverage of credit loss reserves for loans and leases held for investment, excluding PPP 1.03% 1.28% 1.44% 1.53% 1.65% Tangible assets, excluding PPP – Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP - Total assets $ 20,367,621 $ 20,251,996 $ 19,163,708 $ 19,575,028 $ 19,108,922 Reconciling items: Goodwill and other intangibles (3,629) (3,629) (3,678) (3,736) (3,794) PPP loans (1,154,632) (1,570,160) (2,195,902) (3,250,008) (4,957,357) Tangible assets $ 19,209,360 $ 18,678,207 $ 16,964,128 $ 16,321,284 $ 14,147,771

 
41 © 2022 C USTO M ERS BAN K / ALL RIG H TS RESERVED Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Net Interest Margin, Tax Equivalent, Excluding PPP - Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP net interest income $ 159,032 $ 164,852 $ 164,699 $ 193,694 $ 219,892 PPP net interest income (9,632) (18,946) (34,615) (78,647) (112,005) Tax-equivalent adjustment 334 270 239 276 290 Net interest income, tax equivalent, excluding PPP $ 149,734 $ 146,176 $ 130,323 $ 115,323 $ 108,177 GAAP average total interest earning assets $ 20,021,455 $ 19,525,936 $ 18,572,308 $ 18,576,433 $ 19,033,826 Average PPP loans (1,349,403) (1,863,429) (2,641,318) (3,898,607) (5,778,367) Adjusted average total interest earning assets $ 18,672,052 $ 17,662,507 $ 15,930,990 $ 14,677,826 $ 13,255,459 Net interest margin, tax equivalent, excluding PPP 3.18% 3.32% 3.32% 3.12% 3.24% Loan Yield, excluding PPP – Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Total interest on loans and leases $ 200,457 $ 168,941 $ 157,175 $ 198,000 $ 233,097 Interest on PPP loans (14,666) (20,572) (36,894) (82,086) (117,102) Interest on loans and leases, excluding PPP $ 185,791 $ 148,369 $ 120,281 $ 115,914 $ 115,995 Average loans and leases $ 15,653,983 $ 14,918,498 $ 13,656,991 $ 14,335,370 $ 16,192,744 Average PPP loans (1,349,403) (1,863,429) (2,641,318) (3,898,607) (5,778,367) Adjusted average total interest earning assets $ 14,304,580 $ 13,055,069 $ 11,015,673 $ 10,436,763 $ 10,414,377 Loan yield, excluding PPP 5.15% 4.56% 4.43% 4.41% 4.42% Net Interest Income, Excluding PPP - Customers Bancorp ($ in thousands) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 GAAP net interest income $ 159,032 $ 164,852 $ 164,699 $ 193,694 $ 219,892 PPP net interest income (9,632) (18,946) (34,615) (78,647) (112,005) Net interest income, excluding PPP $ 149,400 $ 145,906 $ 130,084 $ 115,047 $ 107,887