Customers Bancorp (CUBI) 8-KCustomers Bancorp Reports Results for Third Quarter 2024

Let’s take on tomorrow. Investor Presentation: Q3 2024 October 2024

 

2 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 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: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and escalating conflict in the Middle East, which could impact economic conditions in the United States; 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 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 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, 2023, 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. Forward-Looking Statements

 

3 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Key Highlights 1. Non-GAAP measure, refer to appendix for reconciliation 2. Selected 2024 proxy peers as disclosed in appendix 3. FY 2018 to FY 2023 4. Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million. Let’s take on tomorrow. Bucking the industry trend with 16% annualized loan growth Robust growth from diversified products across the franchise Net interest income and net interest margin impacted by accretion & prepayments and proactive asset remix Positive business drivers for expansion in the medium-term $1.1 billion of deposit inflows from commercial clients used to paydown $0.7 billion of less strategic deposits Strong momentum continuing into phase II of deposit transformation strategy Robust Loan GrowthAccretive Deposit Remix Net Interest Income & Net Interest Margin (NIM) Core non-interest expense as percent of average assets is top quartile among regional bank peers2 Strategic investments made to enhance talent, technology and risk management Operational Excellence & Strategic Investments CET1 and TCE/TA remain in excess of our targets of ~11.5% and ~7.5% respectively Repurchased 374k shares in the quarter below tangible book value Immediately available liquidity of approximately 183% of uninsured deposits4 NPA ratio remains at low level of 22 bps Net charge-off and special mention and substandard levels declined Tangible book value per share1 approaching $53 with increase of $2.26 in the quarter 15% CAGR over last five years3 Strong Capital & Liquidity Tangible Book Value Growth Maintaining Superior Credit Quality

 

4 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Let’s take on tomorrow. Our Priorities Remain Unchanged Selectively pursue disciplined growth by focusing on holistic and strategic relationships that create franchise value Focus on further strengthening our balance sheet, improving liquidity, capital ratios and margins Not deviate from strong risk management principles: − Superior credit quality − Sound interest rate risk management − Maintain robust liquidity − Strong capital ratios − Positive operating leverage

 

5 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. What Makes Customers Bank Unique? CULTURE High-Touch and Branch-Lite Model Single Point of Contact Consistent Recruiter of Top Talent Sufficient Scale, Yet Nimble Client Centric Focus Sophisticated Product Offerings Target Top 3-5 National Competitor in Focused Set of Verticals Entrepreneurial Culture Banking Entrepreneurs FOCUS STRATEGY Ranked #1 among banks with $10 billion to $50 billion in assets

 

6 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Q3’24 (vs. Q2’24) Profitability Balance Sheet Credit 3.06% vs. 3.29% NIM $21.5B +2% Total Assets 0.22% -01 bps NPA Ratio $14.1B +3% Total Loans and Leases $47.3M +0% NPLs Financial Highlights Highlights Q3’24 Q3’24 EARNINGS REVIEW Total Deposits $18.1B +2% Reserves to NPLs 281% vs. 280% $1.34 Core EPS1,2 $43.8 M Core Earnings1,2 Core ROCE1,2 10.7% $1.31 Diluted EPS $42.9 M Net Income ROCE 10.4% ROAA 0.88% Core ROAA1,2 0.89% vs. 1.00%vs. 1.11% 1. Excludes pre-tax severance expense of $0.7 million, unrealized losses on loans held for sale of $0.6 million, gain on investment securities of $0.4 million and derivative credit valuation adjustment of $0.2 million. 2. Non-GAAP measure, refer to appendix for reconciliation Core PTPP ROAA1,2 1.21% vs. 1.71%

 

7 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Total Deposits $ billions Continued Execution of Deposit Franchise Transformation Gross deposit inflows from commercial clients2 Average cost of deposits 3.46% ACCRETIVE DEPOSIT REMIX 3.40% $4.8 $5.8 $7.6 $4.4 $5.6 $7.9 $4.7 $5.7 $7.6 $4.5 (25%) $5.9 $7.3 $4.7 (26%) $5.6 $7.8 $18.2 $17.9 $18.0 $17.7 $18.1 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Non-Interest Bearing DDA Interest Bearing DDA Non-DDA Q3’24 Deposit Flows Paydown of commercial & consumer client deposits 11,092 12,568 13,595 13,769 15,383 19,152 10,000 20,000 2019 2020 2021 2022 2023 Q3’24 +39% Commercial Client Deposit Accounts $1.1B $0.4B -$0.7B Net deposit growth New Banking Team Deposits1 $ millions 680 860 169 536 Q1’23 Q1’24 Q2’24 Q3’24 $95 $635 $850 $1,396 +$1,301 Venture Banking Commercial Banking Teams 1. Includes venture banking team hired in Q2’23 and commercial banking teams hired in Q2’24 2. Deposit inflows in Q3’24 less strategic remix +$546

 

8 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Venture Banking: Team Lift-Out Strategy Driving Franchise Value ACCRETIVE DEPOSIT REMIX • Top 3 competitor in venture banking ecosystem • Highly attractive funding channel • Peak balances of $2+ billion in deposits at prior institution Loans: Deposits: Deposits to Loans: $2B+ $1B+ ~2:1+ Q1’22-Q1’23 Q2’23-Q3’24 • Expansion into Venture Banking market • Primarily focused on late- stage and growth portfolio companies • Top 5 competitor in venture banking ecosystem • Significantly increased size of team, portfolio and geographic coverage • Expanded coverage to early- stage portfolio companies Loans: Deposits: Deposits to Loans: $95M $538M ~1:6 Loans: Deposits: Deposits to Loans: $860M $871M ~1:1 Q4’21 Q4’23 Q4’24Q4’22 Q4’25 Q4’24+

 

9 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial Banking: Team Hires On-Track for Continued Success ACCRETIVE DEPOSIT REMIX 30 Apr 31 May 30 Jun 31 Jul 31 Aug 30 Sep 183 537 1,140 1,607 2,723 3,138 Funded Accounts > $50K Accounts < $50K Key Highlights • $2.0+ billion deposit pipeline • Deposit growth of ~$370 million in Q3’24 • Overall cost of deposits of ~2.9% with ~30% non-interest bearing • On track to breakeven by Q1'25 2.8x • 10 highly experienced commercial banking teams • Granular and holistic banking relationships • Peak balances of $10+ billion in deposits at prior institution Loans: Deposits: Deposits to Loans: $536M $180M ~3:1 Deposits to Loans: Loans: Deposits: $2B+ $500M+ Number of Accounts Q2’24-Q3’24 Q1’24 Q4’25Q3’24 ~4:1 Q4’24+

 

10 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Industry Leading Loan Growth of 16% With Contributions Across The Franchise Loans - HFI $ billions $1.0 $5.8 $6.8 Q3’23 $0.9 $5.7 $6.3 Q4’23 $0.8 $5.6 $6.5 Q1’24 $0.8 $5.5 $7.0 Q2’24 $0.7 $5.7 $7.4 Q3’24 $13.6 $12.9 $12.9 $13.3 $13.8 7.87% 7.30% 7.05% 7.17% 6.99% Yield on Loans • Added 175+ new lending relationships • Strong pipelines creating continued opportunity for growth with holistic relationships ROBUST LOAN GROWTH • Total HFI loan growth of $521 million • Top growth verticals included mortgage finance, commercial banking team C&I, CRE1 and equipment finance • Mortgage finance business well-positioned to capitalize on opportunity from lower rates • Market disruption creating unique opportunity to selectively acquire new CRE1 customers with significant deposit balances ‒ CRE1 loans increased by $184 million in Q3 ‒ Growth fully funded by CRE1 vertical-related deposits Loans – HFI Growth QoQ $ billions Corporate & Specialized Banking Community Banking Consumer Installment $346 $212 -$37 Corporate & Specialized Banking Community Banking Consumer Installment HFI 1. Includes multifamily, NOO CRE and construction loans

 

11 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Net Interest Margin in Q3’24 Impacted by Several Items from Q2’24 Net Interest Income $ millions Net Interest Margin (%) 3.06%3.29% Q2’24 Q3’24 $334.0 $332.1 Q2’24 Q3’24 $166.4 $173.6 Q2’24 Q3’24 $167.7 $158.5 Interest Income $ millions Interest Expense $ millions NET INTEREST INCOME & NET INTEREST MARGIN • Over 80% of the reduction in net interest margin in the quarter driven by: − Lower discount accretion and prepayment income − Lower average consumer installment balances and securities repositioning • $2.0+ billion high quality deposit pipeline driving opportunity to remix higher cost deposits and reduce interest expense • Strategic hedging executed in Q2’24 expected to positively impact NII and NIM in 2025 Net Interest Margin 3.29% 3.06% Q2’24 -0.12% Accretion & prepayments -0.07% Proactive asset remix1 -0.04% All other Q3’24 percent 1. Lower average consumer installment balances and securities repositioning

 

12 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. c Meaningful Positive NII and NIM Drivers Going Forward NET INTEREST INCOME & NET INTEREST MARGIN Estimated Net Interest Income Drivers1 Time deposit maturities of $680 million repriced lower by 100-200 bps $1.5-2.5 billion deposit remix repriced lower by 200-250 bps Back book fixed rate loan repricing of $240 million by 100-200 bps Franchise enhancing loan originations Strategic Reduction in Asset Sensitivity in 2024 $30-$62 $7-$14 $6-$8 $2-$5 + ~$45-$90+ $ millions Net interest income upside 1. FY’25 2. Compared to annualized Q3’24 net interest income 7-13%2 Hedging benefit

 

13 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Industry-Leading Efficiency $89 $89 $99 $101 $103 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Core Non-Interest Expense1 $ millions • ~$3 million increase2 in core non-interest expense incurred in Q3’24 from higher compensation and outside services • Outside services expected to be elevated over the next two quarters • Revenues from new banking teams expected to exceed expenses within 12 months of onboarding Core Non-Interest Expense1 / Average Assets percent • CUBI’s core non-interest expense1 as percent of average assets is top quartile among regional bank peers3 1.94% C U BI CUBI (Q3’24) Regional Bank Peers2 (MRQ) 1. Non-GAAP measure, refer to appendix for reconciliation 2. Compared to Q2 2024 core non-interest expense; non-GAAP measure, refer to appendix for reconciliation 3. Selected 2024 proxy peers as disclosed in appendix Top Quartile (1.97%) Median (2.09%) OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS

 

14 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. c OPERATIONAL EFFICIENCY AND STRATEGIC INVESTMENTS $20+ Million Expense initiatives • Technology platform consolidation • IT application rationalization • Strategic realignment • Sign-on guarantee sunsetEx pe ns es Fe es Treasury management fee income from clients using instant payments and other products Total Annual Opportunity 2025 Operational Excellence Initiative Target of $20+ Million Annually Savings Used to Invest in the Franchise

 

15 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Tangible Book Value1 per share Tangible Book Value Approaching $53 Per Share 1. Non-GAAP measure, refer to appendix for reconciliation 2. CAGR from Q4’18 to Q3’24 inclusive of impact of AOCI mark-to-market 3. CAGR from FY’18 to FY’23 4. Selected 2024 proxy peers as disclosed in appendix AOCI $23.32 $26.17 $27.92 $37.21 $38.97 $47.61 2018 2019 2020 2021 2022 2023 Q3’24 $52.96 TANGIBLE BOOK VALUE GROWTH $3.38 $56.34 15%2 • Tangible book value1 increased by $2.26 in Q3’24 (18% annualized) • Tangible book value1 has more than doubled over the last five years3 • 5-year+ CAGR in TBV1 of 15%2 despite AOCI headwinds compared to 5% for regional bank peers4

 

16 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. ` ` 14.3% 15.3% 15.9% 15.8% 15.4% +110 bps Total Risk-Based Capital percent 7. 7% 6.5% 7.0% 7.3% 7.7% +120 bps TCE/TA2,3 percent 1. Capital ratios are estimated pending final regulatory report 2. TCE/TA negatively impacted by 49 bps in Q3’24 due to AOCI 3. Non-GAAP measure, refer to appendix for reconciliation 4. Tangible book value as of Q3’24 Strong Capital Levels Provide Significant Flexibility AOCI 11.3% 12.2% 12.6% 12.8% 12.5% CET1 Risk-Based Capital percent STRONG CAPITAL AND LIQUIDITY • TCE/TA3 up over 120 bps YoY and stable QoQ inclusive of share repurchase and balance sheet growth • Share repurchase of 374k shares at an average price below tangible book value3,4 • After growing CET1 for five quarters, utilized approximately 30 bps of capital for attractive strategic loan growth Q3’23 Q4’23 Q1’24 Q2’24 Q3’241 7.5%+ 11.5%+ 8.2%

 

17 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Liquidity Position with Approximately 183% Coverage of Uninsured Deposits Immediately Available Liquidity $ billions $3.0 $1.0 $4.3 Q2’24 $3.1 $1.0 $4.2 Q3’24 $8.3 $8.3 Cash FHLB Available Committed Capacity FRB Available Committed Capacity 1. Uninsured deposits (estimate) of $6.1 billion to be reported on the Bank’s call report, less deposits of $1.4 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $136.5 million 2. Selected 2024 proxy peers as disclosed in appendix STRONG CAPITAL AND LIQUIDITY • Immediately available liquidity to uninsured deposits1 of 183% • Total overall liquidity of ~$10.0 billion as of Q3’24 Loans-HFI to Deposits Q3’24, percent CUBI Regional Bank Peers2 76% 88% Borrowings % of Total Liabilities Q3’24, percent CUBI Regional Bank Peers2 7% 7%

 

18 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Commercial NCOs percent 0.14% 0.13% 0.17% 0.23% 0.22% NPAs % of Total Assets percent Credit Metrics Remain Stable 0.17% 0.14% 0.25% 0.24%0.16%2 2.96% 2.81% 3.26% 2.74% 2.51% 0.50% 0.51% 0.55% 0.56% 0.50% Consumer NCOs percent Total NCOs percent MAINTAINING SUPERIOR CREDIT QUALITY v Q3’23 Q4’23 Q1’23 Q2’24 Q3’24 NPAs % of Total Assets Q3’24, percent CUBI Regional Bank Peers1 0.22% 0.36% 1. Selected 2024 proxy peers as disclosed in appendix 2. As of Q3’24; Excludes owner occupied CRE; 33% total CRE including owner occupied CRE 3. As of Q2’24; Selected 2024 proxy peers as disclosed in appendix 15% 10% 33%1% 8% CUBI2 Regional Bank Peers3 26% 47% Construction Commercial Real Estate Multifamily CRE % of Loans-HFI percent v • NPA ratio down 1 bp QoQ • Special mention and substandard loans declined by 10% QoQ and 30-89 delinquency loans declined 17% QoQ • Total NCOs declined by 9% QoQ 6%

 

19 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Concluding Perspectives Let’s take on tomorrow. 16% annualized loan growth contrasting with industry trends Robust pipeline to continue to originate franchise enhancing loan growth New banking teams1 have remixed nearly 10% of deposit franchise $536 million of deposits and more than 3,000 accounts from commercial banking teams in less than two quarters Transforming the deposit franchise by improving the cost and quality of deposits Tangible book value per share1 grew 18% annualized and approaching $53 in the quarter 15% CAGR over last five years – 2x the performance of top quartile banks2 and sustainable going forward Net interest margin expected to increase in medium-term Net interest income expansion opportunities on both sides of the balance sheet Robust Loan GrowthDeposit Franchise Transformation Tangible Book Value GrowthNet Interest Income / Net Interest Margin 1. Includes venture banking team hired in Q2’23 and commercial banking teams hired in Q2’24 2. US banks with $10 billion to $100 billion in assets. CAGR from FY’18-FY’23

 

ANALYST COVERAGE D.A. Davidson Companies Peter Winter Hovde Group David Bishop Keefe, Bruyette & Woods Inc. Kelly Motta Maxim Group LLC Michael Diana Piper Sandler Companies Frank Schiraldi Stephens Inc. Matt Breese Wedbush Securities Inc. David Chiaverini Raymond James Steve Moss B. Riley Securities, Inc. Hal Goetsch 2024 New Analyst

 

APPENDIX

 

22 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers Bancorp, Inc. NYSE: CUBI Headquarters West Reading, PA Offices1 41 FTE Employees 812 Market Capitalization As of October 25, 2024 $1.4B Total Assets $21.5B Tangible Book Value2 $52.96 Share price As of October 25, 2024 $44.47 Data as of September 30, 2024, 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 Customers Bancorp Company Overview Community Banking Corporate & Specialized Banking Providence Dallas Raleigh/Durham Chicago Washington, D.C. Southern California Bay Area Denver NYC Boston PA Portsmouth Austin Reno Corporate & Specialized Banking Community Banking Digital Banking Deep relationship-based community banking predominantly in the Northeast with selected presence in expansion markets Serving small and medium-sized businesses, and individuals, with a comprehensive suite of loan and deposit products National corporate niche businesses where Customers has differentiated capabilities, often enhanced through technology, to create value for clients Serving sophisticated corporate businesses above the complexity level of most community banks but with a higher level of service and attention than large regionals provide Consumer Suite of loan and deposit products delivered digitally to clients; increasingly generating fee and “fee-like” revenue with limited credit risk through our HFS strategy Commercial Transaction banking (treasury and payment services) with associated deposits D es cr ip tio n Regional C&I, owner-occupied CRE, SBA, multifamily, non-owner- occupied CRE, mortgage Operating deposit accounts and treasury services (commercial and consumer) Lender finance, capital call lines, venture banking, mortgage finance, equipment finance, healthcare, real estate specialty finance Operating deposit accounts and treasury services Consumer installment lending Payments Online savings Pr od uc ts

 

23 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 0 Demonstrated Sustainable Organic Growth Increasing Revenue, EPS and TBVPS at 15%+ CAGR Over the Last Five Years Total Revenue CAGR FY’18-FY’23, percent Diluted EPS CAGR FY’18-FY’23, percent Tangible Book Value1 CAGR Q4’18-Q4’23, percent 1. Non-GAAP measure, refer to appendix for reconciliation CUBI Top Quartile $10-100B US Banks 19% 12% CUBI Top Quartile $10-100B US Banks 33% 7% CUBI Top Quartile $10-100B US Banks 15% 8% Differentiated Performance Relative to Industry • CUBI 5-year CAGR growth in Revenue, EPS and TBVPS1 greater than top quartile of $10-100 billion US banks • #1 EPS compounder among $10-100 billion US banks

 

24 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 20% 49% 30% 1% FICO Score1 660-679 680-699 700-749 750+ 23% 35% 24% 12% 5% 1% 0-9.99% 10 – 19.99% 20 – 29.99% 30 – 39.99% 40 – 49.99% > 50% Unknown Geography Profession Debt to Income Ratio1 Borrower Income 23% 45% 32% <$50K $50K -$100K >$100K 20% 11% 20% 27% 22% West Southwest Midwest Southeast Northeast Consumer Installment Loans – Portfolio Credit Metrics Purpose 64%9% 6% 20% Personal Loan Specialty Home Improvement Student Loan 96% 2% 1% Non COVID-19 Impacted Segments Non-Professional Retail & Restaurants Average FICO Score1 ~746 Average DTI1 ~20% Average Borrower Income ~$101k Weighted average life of ~2.3 years Note: Data as of September 30, 2024; includes consumer installment HFS loans 1. DTI and FICO scores as of time of origination

 

25 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Investment Securities – AFS percent, Q3’24 Securities Portfolio Generating Attractive Returns with Minimal Credit and Duration Risk • Spot yield: 5.23% • Effective duration: 2.0 years • Floating rate securities: 30% • Credit rating: 63% AAA with only 3% at BB and below 59%25% 14% 1% MBS & CMO Corporate ABS Other Total: $2.4 billion Investment Securities – HTM percent, Q3’24 • Spot yield: 4.31% • Effective duration: 3.5 years • Floating rate securities: 28% • Credit rating: 43% AAA with no rated securities non-investment grade • ABS: $0.5 billion of credit enhanced asset backed securities from sale of consumer installment loan portfolio in Q3’22, Q2’23 and Q3’24 49%51% MBS & CMO Credit Enhanced ABS Total: $1.1 billion

 

26 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Selected 2024 Proxy Peers • Ameris • Associated • Atlantic Union • BankUnited • Commerce • Community Bank System • FB Financial • First Busey • First Financial (OH) • First Merchants • F.N.B. • Fulton • Independent • Old National • Pinnacle • Sandy Spring • TowneBank • United • United Community • WesBanco • WSFS Note: Excludes the following banks due to lack of available disclosure –Axos, Eastern, Northwest, Provident, Silvergate (removed following its March 8, 2023 announcement that it would wind down operations and liquidate the bank)

 

27 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Robust Sources of Liquidity 1. Includes CLOs Liquidity Sources ($000's) 3Q 24 2Q 24 QoQ Change Cash and Cash Equivalents $3,088,620 $3,048,586 $40,034 FHLB Available Borrowing Capacity $986,770 $966,409 $20,361 FRB Available Borrowing Capacity $4,180,824 $4,283,486 ($102,662) Investments (MV AFS + HTM) $0 Agency & Non-Agency MBS & CMO $1,960,267 $1,953,596 $6,671 Corporates $594,972 $587,746 $7,226 ABS (1) $886,265 $899,215 ($12,950) Other AFS $34,336 $33,892 $443 Less: Pledged Securities HTM & AFS ($1,698,140) ($1,733,875) $35,735 Net Unpledged Securities $1,777,699 $1,740,574 $37,125 Total $10,033,914 $10,039,056 ($5,142)

 

28 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. 1. Excludes mortgage finance reported at fair value, loans held for sale 2. Utilized Moody’s September 2024 baseline and adverse forecast scenario with qualitative adjustments for Q3’24 provision 3. Utilized Moody’s June 2024 baseline and adverse forecast scenario with qualitative adjustments for Q2’24 provision 4. Non-GAAP measure, refer to appendix for reconciliation Allowance for Credit Losses for Loans and Leases ($ in thousands) September 30, 2024 June 30, 2024 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate2 Amortized Cost1 Allowance for Credit Losses Lifetime Loss Rate3 Loans and Leases Receivable: Commercial: Commercial and Industrial, including Specialty Lending $ 6,672,933 $ 25,191 0.38 % $ 6,740,992 $ 23,721 0.35 % Multifamily 2,115,978 18,090 0.85 % 2,067,332 20,652 1.00 % Commercial Real Estate Owner Occupied 981,804 10,913 1.11 % 805,779 8,431 1.05 % Commercial Real Estate Non-Owner Occupied 1,326,591 17,303 1.30 % 1,202,606 17,966 1.49 % Construction 174,509 1,606 0.92 % 163,409 1,856 1.14 % Total Commercial Loans and Leases Receivable $ 11,271,915 $ 73,103 0.65 % $ 10,980,118 $ 72,626 0.66 % Consumer: Residential Real Estate $ 500,786 $ 5,838 1.17 % $ 481,503 $ 5,884 1.22 % Manufacturing Housing 34,481 4,080 11.83 % 35,901 4,094 11.40 % Installment 720,101 50,137 6.96 % 756,682 49,832 6.59 % Total Consumer Loans Receivable $ 1,255,368 $ 60,055 4.78 % $ 1,274,086 $ 59,810 4.69 % Total Loans and Leases Receivable $ 12,527,783 $ 133,158 1.06 %4 $ 12,254,204 $ 132,436 1.08 %4

 

29 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Customers believes that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our core results of operations and financial condition relative to other 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 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Earnings and Adjusted Core Earnings - Customers Bancorp Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 (dollars in thousands, except per share data) USD Per share USD Per share USD Per share USD Per share USD Per share GAAP net income to common shareholders $ 42,937 $ 1.31 $ 54,300 $ 1.66 $ 45,926 $ 1.40 $ 58,223 $ 1.79 $ 82,953 $ 2.58 Reconciling items (after tax): Severance expense 540 0.02 1,928 0.06 — — 473 0.01 — — (Gains) losses on investment securities (322) (0.01) 561 0.02 57 0.00 (85) (0.00) 492 0.02 Derivative credit valuation adjustment 185 0.01 (44) (0.00) 169 0.01 267 0.01 (151) (0.00) Unrealized losses on loans held for sale 498 0.02 — — — — — — — — FDIC special assessment — 0.00 138 0.00 380 0.01 2,755 0.08 — — Unrealized (gain) on equity method investments — — (8,316) (0.25) — — — — — — Core earnings $ 43,838 $ 1.34 $ 48,567 $ 1.49 $ 46,532 $ 1.42 $ 61,633 $ 1.90 $ 83,294 $ 2.59 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — — — 5,405 0.16 — — — — FDIC premiums prior to 2024 — — — — 3,200 0.10 — — — — Non-income taxes prior to 2024 (2,457) (0.07) — — — — — — — — Total one-time non-interest expense items (2,457) (0.07) — — 8,605 0.26 — — — — Adjusted core earnings (adjusted for one-time non-interest expense items) $ 41,381 $ 1.26 $ 48,567 $ 1.49 $ 55,137 $ 1.68 $ 61,633 $ 1.90 $ 83,294 $ 2.59

 

31 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Return on Average Assets and Adjusted Core Return on Average Assets - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income $ 46,743 $ 58,085 $ 49,726 $ 62,092 $ 86,756 Reconciling items (after tax): Severance expense 540 1,928 — 473 — (Gains) losses on investment securities (322) 561 57 (85) 492 Derivative credit valuation adjustment 185 (44) 169 267 (151) Unrealized losses on loans held for sale $ 498 — — — — FDIC special assessment — 138 380 2,755 — Unrealized (gain) on equity method investments $ — (8,316) — — — Core net income $ 47,644 $ 52,352 $ 50,332 $ 65,502 $ 87,097 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — 5,405 — — FDIC premiums prior to 2024 — — 3,200 — — Non-income taxes prior to 2024 (2,457) — — — — Total one-time non-interest expense items (2,457) — 8,605 — — Core net income adjusted for one-time non-interest expense items $ 45,187 $ 52,352 $ 58,937 $ 65,502 $ 87,097 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core return on average assets 0.89 % 1.00 % 0.95 % 1.22 % 1.57 % Adjusted core return on average assets (adjusted for one-time non-interest expense items) 0.85 % 1.00 % 1.11 % 1.22 % 1.57 %

 

32 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Return on Average Common Equity and Adjusted Core Return on Average Common Equity - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income to common shareholders $ 42,937 $ 54,300 $ 45,926 $ 58,223 $ 82,953 Reconciling items (after tax): Severance expense 540 1,928 — 473 — (Gains) losses on investment securities (322) 561 57 (85) 492 Derivative credit valuation adjustment 185 (44) 169 267 (151) Unrealized losses on loans held for sale 498 — — — — Tax on surrender of bank-owned life insurance policies — — — — — FDIC special assessment — 138 380 2,755 — Unrealized (gain) on equity method investments — (8,316) — — — Core earnings $ 43,838 $ 48,567 $ 46,532 $ 61,633 $ 83,294 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — 5,405 — — FDIC premiums prior to 2024 — — 3,200 — — Non-income taxes prior to 2024 (2,457) — — — — Total one-time non-interest expense items (2,457) — 8,605 — — Adjusted core earnings (adjusted for one-time non-interest expense items) $ 41,381 $ 48,567 $ 55,137 $ 61,633 $ 83,294 Average total common shareholders' equity $ 1,636,242 $ 1,576,595 $ 1,529,211 $ 1,449,728 $ 1,373,244 Core return on average common equity 10.7 % 12.4 % 12.2 % 16.9 % 24.1 % Adjusted core return on average common equity (adjusted for one-time non-interest expense items) 10.1 % 12.4 % 14.5 % 16.9 % 24.1 %

 

33 © 2024 C USTO M ERS BANC O RP, INC . / ALL RIG HTS RESERVED Let’s take on tomorrow. Reconciliation of Non-GAAP Measures – Unaudited (Contd.) Core Pre-Tax Pre-Provision Net Income and ROAA and Adjusted Core Pre-Tax Pre-Provision Net Income and ROAA - Customers Bancorp (dollars in thousands except per share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 GAAP net income $ 46,743 $ 58,085 $ 49,726 $ 62,092 $ 86,756 Reconciling items: Income tax expense (725) 19,032 15,651 21,796 23,470 Provision (benefit) for credit losses 17,066 18,121 17,070 13,523 17,856 Provision (benefit) for credit losses on unfunded commitments 642 1,594 430 (136) 48 Severance expense 659 2,560 — 639 — (Gains) losses on investment securities (394) 744 75 (114) 626 Derivative credit valuation adjustment 226 (58) 222 361 (192) FDIC special assessment — 183 500 3,723 — Unrealized (gain) on equity method investments — (11,041) — — — Unrealized losses on loans held for sale 607 — — — — Net income - pre-tax pre-provision $ 64,824 $ 89,220 $ 83,674 $ 101,884 $ 128,564 One-time non-interest expense items recorded in 2024 (after-tax): Deposit servicing fees prior to 2024 — — 7,106 — — FDIC premiums prior to 2024 — — 4,208 — — Non-income taxes prior to 2024 (2,997) — — — — Total one-time non-interest expense items (2,997) — 11,314 — — Adjusted core pre-tax pre-provision net income (adjusted for one-time non-interest expense items) $ 61,827 $ 89,220 $ 94,988 $ 101,884 $ 128,564 Average total assets $ 21,230,404 $ 20,985,203 $ 21,335,229 $ 21,252,273 $ 21,978,010 Core pre-tax pre-provision ROAA 1.21 % 1.71 % 1.58 % 1.90 % 2.32 % Adjusted core pre-tax pre-provision ROAA (adjusted for one-time non-interest expense items) 1.16 % 1.71 % 1.79 % 1.90 % 2.32 %