Customers Bancorp Reports Second Quarter 2021 Results

Record Net Income of $58.0 million, or $1.72 Per Diluted Share,
ROAA of 1.27% and ROCE of 23.22%

Top 5 Bank PPP Lender in U.S. by Loan Count
~325,000 Loans Funded Totaling $9.5 billion
~$335 million of Deferred Origination Fees Earned
Tangible Book Value Increased 29% over Q2 2020 

• Q2 2021 net income available to common shareholders was $58.0 million, or $1.72 per diluted share, up 182% over Q2 2020.
• Q2 2021 core earnings (a non-GAAP measure) were $59.3 million, or $1.76 per diluted share, up 177% over Q2 2020.
• Q2 2021 ROAA was 1.27% and Core ROAA (a non-GAAP measure) was 1.30%. Q2 2020 ROAA was 0.62% and Core ROAA (a non-GAAP measure) was 0.68%.
• Q2 2021 ROCE was 23.22% and Core ROCE (a non-GAAP measure) was 23.72%. Q2 2020 ROCE was 9.97% and Core ROCE (a non-GAAP measure) was 11.16%.
• Adjusted pre-tax pre-provision net income (a non-GAAP measure) for Q2 2021 was $86.5 million, an increase of 60% over Q2 2020. Q2 2021 adjusted pre-tax pre-provision return on average assets (a non-GAAP measure) was 1.80% compared to 1.48% for Q2 2020.
• Q2 2021 results include a provision for credit losses on loans and leases of $3.3 million, compared to a benefit of $2.9 million in Q1 2021. At June 30, 2021, the coverage of credit loss reserves for loans and leases held for investment, excluding Paycheck Protection Program ("PPP") loans (a non-GAAP measure), was 1.61% compared to 1.71% at March 31, 2021.
• Non-performing assets were 0.24% of total assets at June 30, 2021 compared to 0.26% at March 31, 2021. Allowance for credit losses equaled 270% of non-performing loans at June 30, 2021, up from 264% at March 31, 2021.
• Net interest income for Q2 2021 grew $6.0 million, or 4.5%, over Q1 2021 and $46.8 million, or 50.9%, over Q2 2020.
• Q2 2021 net interest margin (a non-GAAP measure) remained stable at 2.98%. Q2 2021 net interest margin, excluding the impact of PPP loans (a non-GAAP measure), increased by 31 basis points to 3.30% from Q1 2021.
• Total loans and leases increased $1.7 billion, or 11.0% year-over-year. Total loans and leases, excluding PPP loans (a non-GAAP measure), increased $132.2 million, or 1.3% year-over-year, as growth in the core commercial and industrial (C&I), consumer and loans to mortgage companies portfolios was offset in part by runoff in the multi-family loan portfolio.
• Total deposits increased $2.9 billion, or 26.5% year-over-year, which included a $2.4 billion or 51.9% increase in demand deposits. The total cost of deposits dropped 44 basis points from 0.91% in the year-ago quarter.
• Total deferments declined to $98.2 million, or 0.9% of total loans and leases excluding PPP loans (a non-GAAP measure) at June 30, 2021, down from $189.1 million, or 1.7% of total loans and leases excluding PPP loans (a non-GAAP measure) at March 31, 2021.
• Q2 2021 efficiency ratio was 46.59% compared to 50.73% for Q2 2020. Q2 2021 core efficiency ratio was 44.33% compared to 47.84% in Q2 2020 (non-GAAP measures).
• Fully divested foreign equity holdings in Q2 2021 reducing overall taxable capital gains resulting from BankMobile divestiture in Q1 2021.
• On track to soft launch a private real-time, blockchain-based B2B payments platform with integration of digital and legacy payment rails within the next 60 days. The platform will deliver enhanced payments functionality for our business clients and is expected to generate additional deposit growth in targeted niches, such as real estate, monetary and currency exchanges and institutional investments.
• Preferred stock redemption planned prior to year-end.

WEST READING, Pa.--(BUSINESS WIRE)--Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively "Customers" or "CUBI"), today reported second quarter 2021 ("Q2 2021") net income to common shareholders of $58.0 million, or $1.72 per diluted share, up from first quarter 2021 ("Q1 2021") net income to common shareholders of $33.2 million, or $1.01 per diluted share. Q1 2021 results included a net loss from discontinued operations of $38.0 million, which reduced GAAP earnings by $1.16 per diluted share, resulting from the divestiture of BankMobile Technologies, Inc. on January 4, 2021. Core earnings for Q2 2021 totaled $59.3 million, or $1.76 per diluted share compared to Q1 2021 core earnings of $70.3 million, or $2.14 per diluted share (non-GAAP measures). Adjusted pre-tax pre-provision net income was $86.5 million for Q2 2021 compared to $86.8 million for Q1 2021 (non-GAAP measures). Net interest margin, tax equivalent ("NIM") remained stable at 3% for Q2 2021 and Q1 2021. Excluding PPP loans, NIM expanded 31 basis points in Q2 2021 as compared to Q1 2021, largely benefiting from the balance sheet restructuring that occurred in Q1 2021, further reductions in deposit costs and disciplined pricing strategy (non-GAAP measures).

“As the Paycheck Protection Program ("PPP") comes to a close, we couldn't be happier with our overall execution and results in this program,” remarked Customers Bancorp Chairman and CEO, Jay Sidhu. “Not only have we supported hundreds of thousands of small businesses, not-for-profits, and the communities we serve, we leveraged our technology expertise to build valuable fintech partnerships, established hundreds of thousands of new customer accounts ripe for in-house analytics and cross-selling and significantly improved our capital position and tangible book value at the same time. All of this was achieved while decreasing the risk profile of Customers Bank. At June 30, 2021, we have strong capital and reserves, exceptional asset quality and expect to report the highest full year earnings in our company's history. This leaves us very well positioned to support future growth and to redeem a portion of our preferred stock later this year, an EPS enhancing action which was approved by our Board earlier today. We remain optimistic about our future.” Mr. Sidhu concluded.

Key Balance Sheet Trends

Total loans and leases increased $1.7 billion, or 11.0%, to $17.0 billion at June 30, 2021 compared to the year-ago period. PPP loans were $6.3 billion at June 30, 2021, an increase of $1.5 billion compared to the year-ago period, driven by $4.1 billion and $0.2 billion in originations from the new round and earlier rounds of PPP loans, respectively. This increase in PPP loans was offset by $2.8 billion in forgiveness from the earlier rounds of PPP loans. Additionally, the loan mix improved year-over-year as commercial and industrial loans and leases increased $233.2 million to $2.3 billion, commercial real estate owner occupied loans increased $108.9 million to $653.6 million, commercial loans to mortgage companies increased $90.1 million to $2.9 billion, and consumer installment loans increased $319.8 million to $1.6 billion. These increases in loans and leases were partially offset by decreases in multi-family loans of $526.1 million to $1.5 billion, commercial real estate non-owner occupied loans of $55.7 million to $1.2 billion and residential mortgages of $79.4 million to $273.5 million. “Looking ahead, we see continued growth in core C&I and consumer loans offsetting some of the expected decreases in loans to mortgage companies in the second half of this year," stated Sidhu.

Total deposits increased $2.9 billion, or 26.5%, to $13.9 billion at June 30, 2021 compared to the year-ago period. Total demand deposits increased $2.4 billion, or 51.9%, to $6.9 billion, money market deposits increased $1.5 billion, or 44.2%, to $4.9 billion, and savings deposits increased $287.0 million, or 25.1%, to $1.4 billion. These increases were offset, in part, by a decrease in time deposits of $1.2 billion, or 66.5%, to $627.2 million. The total cost of deposits declined by 44 basis points to 0.47% in Q2 2021 from 0.91% in the year-ago quarter. At July 15, 2021, the spot cost of deposits was 0.44%. "We expect our deposit costs to be at or below 40 basis points by September 30, 2021," stated Sidhu.

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

Customers experienced significant improvements in regulatory capital ratios in Q2 2021 as compared to a year ago. Customers Bancorp's tangible common equity (a non-GAAP measure) increased by $253.6 million to $1.0 billion at June 30, 2021 from $775.8 million at June 30, 2020, and the tangible book value per common share (a non-GAAP measure) increased to $31.82 at June 30, 2021 from $24.62 at June 30, 2020, an increase of 29.2%. Customers remains well capitalized by all regulatory measures, leaving us well positioned to redeem a portion of the preferred stock prior to year end subject to routine and customary regulatory approval. At the Customers Bancorp level, the total risk based capital ratio (estimate) and tangible common equity to tangible assets ratio ("TCE ratio"), excluding PPP loans (a non-GAAP measure), were 13.2% and 7.7%, respectively, at June 30, 2021. At March 31, 2021, Customers Bancorp's total risk based capital ratio and TCE ratio, excluding PPP loans (a non-GAAP measure), were 12.4% and 7.1%, respectively." As a consequence of PPP related income and a potential cyclical decline in mortgage warehouse loans, we expect our capital levels to increase sharply in the second half of 2021 with the TCE ratio excluding PPP loans to be close to 9% by December 31, 2021," commented Customers Bancorp CFO, Carla Leibold.

Loan Portfolio Management During the COVID-19 Crisis

Over the last decade, Customers has developed a suite of commercial and retail loan products with one particularly important common denominator: relatively low credit risk assumption. The Bank’s C&I, mortgage warehouse, specialty finance 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 healthy despite a highly adverse economic environment. Maintaining strong asset quality also requires a highly active portfolio monitoring process. In addition to frequent client outreach and monitoring at the individual loan level, Customers employs a bottom-up data driven approach to analyze its commercial portfolio.

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

• Total commercial deferments declined to $89.8 million, or 0.8% of total loans and leases, excluding PPP loans (a non-GAAP measure), at June 30, 2021, down from $176.1 million, or 1.6% of total loans and leases, excluding PPP loans, at March 31, 2021. Customers' commercial deferments peaked at about $1.2 billion in July 2020.
• Exposure to industry segments significantly impacted by COVID-19 is not substantial. At June 30, 2021, Customers had $82.8 million in energy and utilities exposure (with no deferments); $62.0 million in colleges and universities (with no deferments); $62.2 million in CRE retail sales exposure (mostly auto sales; with no deferments); $29.9 million in franchise restaurants and dining (with no deferments); and $26.1 million in entertainment only businesses (with no deferments).
• At June 30, 2021, the hospitality portfolio was $399.3 million, or 3.8% of total loans and leases, excluding PPP loans, with $59.2 million in deferment. Approximately 79.5% ($317.4 million) represents “flagged” facilities, with the majority of the non-flagged being high-end destination hotels in Cape May (NJ), Avalon (NJ), and Long Island (NY). We believe the majority of the hotels have sufficient cash resources to get through the COVID-19 crisis.
• At June 30, 2021, the healthcare portfolio was approximately $460 million, comprised predominantly of skilled nursing, which has been deemed an essential business and through a number of federal and state actions has been provided immunity from liability for COVID-19 related deaths. No deferments have been requested and there are no delinquencies.
• The multi-family portfolio is highly seasoned, with a weighted average loan to value of 61.7% as of quarter-end. 55.77% of the portfolio was in New York City, of which 70.53% was in rent controlled/regulated properties. As of June 30, 2021, no deferments have been requested.
• At June 30, 2021, investment CRE had a weighted average loan to value of 63.2%, with approximately 52% of the portfolio housed in New York, Philadelphia and surrounding markets. As of June 30, 2021, $4.4 million of the portfolio was on deferment, with minimal exposure to the office market.

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

• Total consumer-related deferments declined to $8.4 million, or 0.1% of total loans and leases, excluding PPP loans (a non-GAAP measure), at June 30, 2021, down from $13.0 million at March 31, 2021.
• The $1.6 billion consumer installment loan portfolio outperformed industry peers with deferments dropping to 0.31% and 30+ day delinquency at only 0.66%. Strong credit quality (avg. FICO at origination: 740), low concentration in at-risk job segments, and outstanding performance of CB Direct originations have resulted in solid results through the end of Q2 2021.
• The consumer installment portfolio has been managed to moderate growth and strengthening credit quality, by replacing run-off with CB Direct originations with higher FICO scores.

Key Profitability Trends

Net Interest Income

Net interest income totaled $138.8 million in Q2 2021, an increase of $6.0 million from Q1 2021, primarily due to a $755.1 million net increase in average interest-earning assets and a decrease in the cost of interest-bearing liabilities. Interest-earning asset growth was driven by increases in consumer loans and the latest round of PPP loans, offset in part by PPP loan forgiveness from the first two rounds, which accelerated the recognition of net deferred loan origination fees, and decreases in commercial loans to mortgage companies and multi-family loans. Compared to Q1 2021, total loan yields decreased 28 basis points to 3.74%. The decrease is attributable to lower yields on commercial and industrial loans and leases, increased originations of PPP loans in the latest round and lower forgiveness of PPP loans from the first two rounds, offset in part by higher yields on consumer loans. Total borrowing costs decreased by 23 basis points to 0.77% primarily due to the balance sheet restructuring completed in Q1 2021 and lower utilization of the FRB PPP Liquidity Facility, costing 0.35%, due to the PPP loan forgiveness from the first two rounds and excess cash available to fund additional PPP round 3 originations. FHLB advances and federal funds purchased were also paid off during Q2 2021 due to sufficient liquidity. "It is difficult to predict net interest income in future periods because the timing of PPP forgiveness results in the accelerated recognition of net deferred fees and also affects the amount of net interest income expected to be earned while the PPP loans are held on our balance sheet," commented Mr. Sidhu.

Provision for Credit Losses

The provision for credit losses on loans and leases in Q2 2021 was $3.3 million, compared to a $2.9 million benefit (release) in Q1 2021. The provision in Q2 2021 primarily resulted from an increase in provision for consumer installment loans from continued growth, offset in part by the benefit (release) to the provision for commercial loans resulting from continuing improvement in forecasts of macroeconomic conditions since Q4 2020. The allowance for credit losses on loans and leases represented 1.6% of total loans and leases receivable, excluding PPP loans (a non-GAAP measure) at June 30, 2021, compared to 1.7% at March 31, 2021, and 2.2% at June 30, 2020. Customers' non-performing loans at June 30, 2021 were only 0.27% of total loans and leases, a significant improvement from 0.56% at June 30, 2020.

Non-Interest Income

Non-interest income totaled $16.8 million for Q2 2021, a decrease of $1.6 million compared to Q1 2021. The decrease in non-interest income primarily resulted from decreases of $21.8 million in gain on sale of investment securities and $3.0 million in unrealized gain on derivatives, offset in part by a $24.5 million decrease in loss on cash flow hedge derivative terminations recorded in Q1 2021. In Q2 2021, the change in the fair value of foreign equity securities and the sale of the foreign subsidiaries that held those securities resulted in a net loss of $1.1 million.

Non-Interest Expense

Non-interest expense totaled $70.8 million for Q2 2021, an increase of $8.9 million compared to Q1 2021. The increase was primarily due to approximately $2.5 million of compensation expense associated with an executive's retirement and other one-time benefits, $2.4 million of increased PPP-related costs primarily due to outside professional services used to support the PPP forgiveness process and our participation in the latest round of PPP, increased consumer installment servicing expense of $1.0 million, increased stock-based compensation of $0.9 million related to new awards, and a benefit (release) to credit losses for unfunded commitments of $1.3 million recorded in Q1 2021. "Looking ahead, we expect non-interest expenses to be lower in Q3 2021," stated Ms. Leibold.

Taxes

Income tax expense from continuing operations increased by $2.5 million to $20.1 million in Q2 2021 from $17.6 million in Q1 2021 primarily due to an increase in compensation expense associated with an executive's retirement that exceeded the limit for tax deduction purposes, along with an increase in projected pre-tax income from continuing operations. Customers expects the full-year 2021 effective tax rate from continuing operations to be approximately 23% to 25%, which is comparable to previous years.

Net Loss From Discontinued Operations

The divestiture of BankMobile Technologies, Inc. was completed on January 4, 2021, and its historical financial results are presented as discontinued operations.

Outlook

“Looking ahead, we are very optimistic about the prospects of our company. The best in class tech agility of Customers Bancorp has allowed us to be a major participant in the third round of PPP and to incubate new lines of businesses that leverage our fintech relationships. We expect to launch a private real-time, blockchain-based B2B payments platform with integration of digital and legacy payment rails. The platform will deliver enhanced payments functionality for our business clients and is expected to generate additional deposit growth in targeted niches, such as real estate, monetary and currency exchanges and institutional investments. We also expect our tangible common equity and regulatory capital levels to achieve targeted levels within the next 12 months and our credit quality to remain in line with or better than peers. The financial benefits of PPP aside, we project our recurring earnings power to expand to at least the $4.00 level during 2021 and 2022 and expect to achieve $6.00 in core EPS in 2025 rather than 2026,” concluded Mr. Sidhu.

Our updated financial guidance is as follows:

• Loan growth, excluding PPP and mortgage warehouse balances, is expected to average in the mid-to-high single digits over the next several quarters.
• The balance of commercial loans to mortgage companies is expected to decline to $1.6 billion - $2.4 billion at December 31, 2021.
• The Total Capital Ratio is expected to be about 14.0% by year-end 2021. The TCE ratio excluding PPP loans is expected to be close to 9.0% by year-end 2021.
• We project the NIM, excluding PPP loans, to remain within the 3.25% - 3.50% range for the second half of 2021.
• We project an effective tax rate from continuing operations for 2021 of 23.0% - 25.0%.
• We now expect to earn at least $6.00 in core EPS in 2021 and 2022. Our core EPS guidance includes the net interest income expected to be earned on the PPP loans.
• Excluding PPP loans, we expect to earn at least $4 in core EPS in 2021 and 2022 and expect to achieve $6 in core EPS by 2025 rather than 2026.

2021 NIM expansion is expected to be achieved by:

• Remixing the loan portfolio away from commercial loans to mortgage companies toward other C&I categories and consumer installment loans.
• Restructuring of the asset and liability side of the balance sheet that was completed in Q1 2021.
• Bringing our total cost of deposits down to around 35 basis points by year-end 2021.

Webcast

Date:	Thursday, July 29, 2021
Time:	9:00 AM EDT

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com/investor-relations/ and at the Customers Bancorp 2nd Quarter Earnings Webcast.

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

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

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is a bank holding company located in West Reading, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank, a full-service bank with $19.6 billion in assets at June 30, 2021. A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking and lending services to small and medium-sized businesses, professionals, individuals and families. Services and products are available wherever permitted by law through mobile-first apps, online portals, and a network of offices and branches.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: the adverse impact on the U.S. economy, including the markets in which we operate, of the coronavirus outbreak, and the impact of a slowing U.S. economy and increased unemployment on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that 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; 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, 2020, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, including any amendments thereto, that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank, except as may be required under applicable law.

Q2 2021 Overview

The following table presents a summary of key earnings and performance metrics for the quarter ended June 30, 2021 and the preceding four quarters:

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
EARNINGS SUMMARY - UNAUDITED
(Dollars in thousands, except per share data and stock price data)	Q2			Q1			Q4			Q3			Q2			Six Months Ended June 30,
	2021			2021			2020			2020			2020			2021			2020
GAAP Profitability Metrics:
Net income available to common shareholders (from continuing and discontinued operations)	$	58,042		$	33,204		$	52,831		$	47,085		$	19,137		$	91,246		$	18,621
Per share amounts:
Earnings per share - basic	$	1.80		$	1.04		$	1.67		$	1.49		$	0.61		$	2.84		$	0.59
Earnings per share - diluted	$	1.72		$	1.01		$	1.65		$	1.48		$	0.61		$	2.74		$	0.59
Book value per common share ^(1)	$	31.94		$	30.13		$	28.37		$	26.43		$	25.08		$	31.94		$	25.08
CUBI stock price ^(1)	$	38.99		$	31.82		$	18.18		$	11.20		$	12.02		$	38.99		$	12.02
CUBI stock price as % of book value ^(1)	122		%	106		%	64		%	42		%	48		%	122		%	48		%
Average shares outstanding - basic	32,279,625			31,883,946			31,638,447			31,517,504			31,477,591			32,082,878			31,434,371
Average shares outstanding - diluted	33,741,468			32,841,711			31,959,100			31,736,311			31,625,771			33,294,075			31,625,669
Shares outstanding ^(1)	32,353,256			32,238,762			31,705,088			31,555,124			31,510,287			32,353,256			31,510,287
Return on average assets ("ROAA")	1.27		%	0.80		%	1.23		%	1.12		%	0.62		%	1.04		%	0.40		%
Return on average common equity ("ROCE")	23.22		%	14.66		%	24.26		%	23.05		%	9.97		%	19.15		%	4.74		%
Efficiency ratio	46.59		%	48.89		%	43.56		%	46.76		%	50.73		%	47.64		%	52.52		%
Non-GAAP Profitability Metrics^(2):
Core earnings	$	59,303		$	70,308		$	54,588		$	38,439		$	21,413		$	129,611		$	26,499
Adjusted pre-tax pre-provision net income	$	86,467		$	86,769		$	77,896		$	64,146		$	53,931		$	173,236		$	98,154
Per share amounts:
Core earnings per share - diluted	$	1.76		$	2.14		$	1.71		$	1.21		$	0.68		$	3.89		$	0.84
Tangible book value per common share ^(1)	$	31.82		$	30.01		$	27.92		$	25.97		$	24.62		$	31.82		$	24.62
CUBI stock price as % of tangible book value ^(1)	123		%	106		%	65		%	43		%	49		%	123		%	49		%
Core ROAA	1.30		%	1.61		%	1.26		%	0.93		%	0.68		%	1.45		%	0.52		%
Core ROCE	23.72		%	31.03		%	25.06		%	18.82		%	11.16		%	27.20		%	6.75		%
Adjusted ROAA - pre-tax and pre-provision	1.80		%	1.90		%	1.70		%	1.43		%	1.48		%	1.85		%	1.50		%
Adjusted ROCE - pre-tax and pre-provision	33.27		%	36.80		%	34.20		%	29.73		%	26.24		%	34.95		%	23.16		%
Net interest margin, tax equivalent	2.98		%	3.00		%	2.78		%	2.50		%	2.65		%	2.99		%	2.80		%
Net interest margin, tax equivalent, excluding PPP loans	3.30		%	2.99		%	3.04		%	2.86		%	2.97		%	3.14		%	2.98		%
Core efficiency ratio	44.33		%	41.13		%	42.89		%	46.10		%	47.84		%	42.76		%	50.25		%
Asset Quality:
Net charge-offs	$	6,591		$	12,521		$	8,472		$	17,299		$	10,325		$	19,112		$	29,035
Annualized net charge-offs to average total loans and leases	0.16		%	0.33		%	0.21		%	0.45		%	0.32		%	0.24		%	0.52		%
Non-performing loans ("NPLs") to total loans and leases ^(1)	0.27		%	0.30		%	0.45		%	0.38		%	0.56		%	0.27		%	0.56		%
Reserves to NPLs ^(1)	269.96		%	264.21		%	204.48		%	244.70		%	185.36		%	269.96		%	185.36		%
Non-performing assets ("NPAs") to total assets	0.24		%	0.26		%	0.39		%	0.34		%	0.48		%	0.24		%	0.48		%
Customers Bank Capital Ratios^(3):
Common equity Tier 1 capital to risk-weighted assets	12.35		%	11.75		%	10.62		%	10.12		%	10.64		%	12.35		%	10.64		%
Tier 1 capital to risk-weighted assets	12.35		%	11.75		%	10.62		%	10.12		%	10.64		%	12.35		%	10.64		%
Total capital to risk-weighted assets	13.72		%	13.11		%	12.06		%	11.62		%	12.30		%	13.72		%	12.30		%
Tier 1 capital to average assets (leverage ratio)	9.07		%	9.35		%	9.21		%	9.29		%	9.59		%	9.07		%	9.59		%

(1)	Metric is a spot balance for the last day of each quarter presented.
(2)	Non-GAAP measures exclude net loss from discontinued operations, loss on sale of foreign subsidiaries, unrealized gains (losses) on loans held for sale, investment securities gains and losses, loss on cash flow hedge derivative terminations, severance expense, merger and acquisition-related expenses, losses realized from the sale of non-QM residential mortgage loans, loss upon acquisition of interest-only GNMA securities, legal reserves, credit valuation adjustments on derivatives, risk participation agreement mark-to-market adjustments, goodwill and intangible assets, and PPP loans. These notable items are not included in Customers' disclosures of core earnings and other core profitability metrics. Please note that not each of the aforementioned adjustments affected the reported amount in each of the periods presented. Customers' reasons for the use of these non-GAAP measures and a detailed reconciliation between the non-GAAP measures and the comparable GAAP amounts are included at the end of this document.
(3)	Regulatory capital ratios are estimated for Q2 2021 and actual for the remaining periods. In accordance with regulatory capital rules, Customers elected an option to delay the estimated impact of CECL on its regulatory capital over a five-year transition period ending January 1, 2025. As a result, capital ratios and amounts as of Q2 2021 exclude the impact of the increased allowance for credit losses on loans and leases and unfunded loan commitments attributed to the adoption of CECL and 25% of the quarterly provision for credit losses for subsequent quarters through Q4 2021.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(Dollars in thousands, except per share data)											Six Months Ended
	Q2		Q1		Q4		Q3		Q2		June 30,
	2021		2021		2020		2020		2020		2021		2020
Interest income:
Loans and leases	$	153,608	$	152,117	$	145,414	$	132,107	$	118,447	$	305,725	$	234,527
Investment securities	8,327		7,979		6,777		6,297		6,155		16,306		11,132
Other	946		1,019		902		1,246		616		1,965		4,902
Total interest income	162,881		161,115		153,093		139,650		125,218		323,996		250,561
Interest expense:
Deposits	15,653		15,658		16,107		18,347		23,238		31,311		57,591
FHLB advances	963		5,192		5,749		5,762		4,736		6,155		10,127
Subordinated debt	2,689		2,689		2,688		2,689		2,689		5,378		5,378
FRB PPP liquidity facility, federal funds purchased and other borrowings	4,819		4,845		5,603		5,413		2,573		9,664		4,163
Total interest expense	24,124		28,384		30,147		32,211		33,236		52,508		77,259
Net interest income	138,757		132,731		122,946		107,439		91,982		271,488		173,302
Provision (benefit) for credit losses on loans and leases	3,291		(2,919)		(2,913)		12,955		20,946		372		52,732
Net interest income after provision (benefit) for credit losses on loans and leases	135,466		135,650		125,859		94,484		71,036		271,116		120,570
Non-interest income:
Interchange and card revenue	84		85		91		92		193		169		463
Deposit fees	891		863		823		650		502		1,754		1,054
Commercial lease income	5,311		5,205		4,853		4,510		4,508		10,516		8,776
Bank-owned life insurance	2,765		1,679		1,744		1,746		1,757		4,444		3,519
Mortgage warehouse transactional fees	3,265		4,247		3,681		3,320		2,582		7,512		4,533
Gain (loss) on sale of SBA and other loans	1,900		1,575		1,689		286		23		3,475		34
Mortgage banking income (loss)	386		463		346		1,013		38		849		334
Gain (loss) on sale of investment securities	1,812		23,566		44		11,707		4,353		25,378		8,328
Unrealized gain (loss) on investment securities	1,746		974		1,387		238		1,200		2,720		(178)
Loss on sale of foreign subsidiaries	(2,840)		—		—		—		—		(2,840)		—
Unrealized gain (loss) on derivatives	(439)		2,537		804		549		(4,158)		2,098		(5,304)
Loss on cash flow hedge derivative terminations	—		(24,467)		—		—		—		(24,467)		—
Other	1,941		1,741		621		753		713		3,682		1,312
Total non-interest income	16,822		18,468		16,083		24,864		11,711		35,290		22,871
Non-interest expense:
Salaries and employee benefits	28,023		23,971		25,600		24,752		23,192		51,994		43,716
Technology, communication and bank operations	19,618		19,988		16,021		13,005		11,103		39,606		21,642
Professional services	8,234		6,289		5,449		4,421		2,974		14,523		6,519
Occupancy	2,482		2,621		2,742		3,368		2,639		5,103		5,252
Commercial lease depreciation	4,415		4,291		3,982		3,663		3,643		8,706		7,070
FDIC assessments, non-income taxes and regulatory fees	2,602		2,719		2,642		3,784		2,368		5,321		5,235
Merger and acquisition related expenses	—		418		709		658		—		418		—
Loan workout	102		(261)		123		846		1,808		(159)		2,175
Advertising and promotion	313		561		—		—		372		874		1,795
Other	5,034		1,330		2,665		1,788		1,692		6,364		5,354
Total non-interest expense	70,823		61,927		59,933		56,285		49,791		132,750		98,758
Income before income tax expense	81,465		92,191		82,009		63,063		32,956		173,656		44,683
Income tax expense	20,124		17,560		23,447		12,016		7,980		37,684		11,254
Net income from continuing operations	61,341		74,631		58,562		51,047		24,976		135,972		33,429
Loss from discontinued operations before income taxes	—		(20,354)		(3,539)		(347)		(3,190)		(20,354)		(9,911)
Income tax expense (benefit) from discontinued operations	—		17,682		(1,222)		185		(932)		17,682		(2,299)
Net loss from discontinued operations	—		(38,036)		(2,317)		(532)		(2,258)		(38,036)		(7,612)
Net income	61,341		36,595		56,245		50,515		22,718		97,936		25,817
Preferred stock dividends	3,299		3,391		3,414		3,430		3,581		6,690		7,196
Net income available to common shareholders	$	58,042	$	33,204	$	52,831	$	47,085	$	19,137	$	91,246	$	18,621
Basic earnings per common share from continuing operations	$	1.80	$	2.23	$	1.74	$	1.51	$	0.68	$	4.03	$	0.83
Basic earnings per common share	$	1.80	$	1.04	$	1.67	$	1.49	$	0.61	$	2.84	$	0.59
Diluted earnings per common share from continuing operations	$	1.72	$	2.17	$	1.73	$	1.50	$	0.68	$	3.88	$	0.83
Diluted earnings per common share	$	1.72	$	1.01	$	1.65	$	1.48	$	0.61	$	2.74	$	0.59

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - UNAUDITED
(Dollars in thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
ASSETS
Cash and due from banks	$	36,837	$	3,123	$	78,090	$	5,822	$	44,577
Interest earning deposits	393,663		512,241		615,264		325,594		1,022,753
Cash and cash equivalents	430,500		515,364		693,354		331,416		1,067,330
Investment securities, at fair value	1,526,792		1,441,904		1,210,285		1,133,831		681,382
Loans held for sale	34,540		46,106		79,086		26,689		464,164
Loans receivable, mortgage warehouse, at fair value	2,855,284		3,407,622		3,616,432		3,913,593		2,793,164
Loans receivable, PPP	6,305,056		5,178,089		4,561,365		4,964,105		4,760,427
Loans and leases receivable	7,772,142		7,536,489		7,575,368		7,700,892		7,272,447
Allowance for credit losses on loans and leases	(125,436)		(128,736)		(144,176)		(155,561)		(159,905)
Total loans and leases receivable, net of allowance for credit losses on loans and leases	16,807,046		15,993,464		15,608,989		16,423,029		14,666,133
FHLB, Federal Reserve Bank, and other restricted stock	39,895		69,420		71,368		70,387		91,023
Accrued interest receivable	90,009		83,186		80,412		65,668		49,911
Bank premises and equipment, net	10,391		10,943		11,225		11,308		7,879
Bank-owned life insurance	329,421		281,923		280,067		277,826		275,842
Goodwill and other intangibles	3,853		3,911		3,969		4,028		4,086
Other assets	362,661		371,439		338,438		354,010		512,209
Assets of discontinued operations	—		—		62,055		80,535		83,159
Total assets	$	19,635,108	$	18,817,660	$	18,439,248	$	18,778,727	$	17,903,118
LIABILITIES AND SHAREHOLDERS' EQUITY
Demand, non-interest bearing deposits	$	2,699,869	$	2,687,628	$	2,356,998	$	2,327,017	$	1,879,789
Interest bearing deposits	11,174,070		9,784,812		8,952,931		8,512,060		9,086,086
Total deposits	13,873,939		12,472,440		11,309,929		10,839,077		10,965,875
Federal funds purchased	—		365,000		250,000		680,000		—
FHLB advances	—		850,000		850,000		850,000		850,000
Other borrowings	124,240		124,138		124,037		123,935		123,833
Subordinated debt	181,534		181,464		181,394		181,324		181,255
FRB PPP liquidity facility	3,865,865		3,284,156		4,415,016		4,811,009		4,419,967
Accrued interest payable and other liabilities	338,801		351,741		152,082		185,927		296,192
Liabilities of discontinued operations	—		—		39,704		55,964		58,149
Total liabilities	18,384,379		17,628,939		17,322,162		17,727,236		16,895,271
Preferred stock	217,471		217,471		217,471		217,471		217,471
Common stock	33,634		33,519		32,986		32,836		32,791
Additional paid in capital	519,294		515,318		455,592		452,965		450,665
Retained earnings	496,844		438,802		438,581		385,750		338,665
Accumulated other comprehensive income (loss)	5,266		5,391		(5,764)		(15,751)		(9,965)
Treasury stock, at cost	(21,780)		(21,780)		(21,780)		(21,780)		(21,780)
Total shareholders' equity	1,250,729		1,188,721		1,117,086		1,051,491		1,007,847
Total liabilities & shareholders' equity	$	19,635,108	$	18,817,660	$	18,439,248	$	18,778,727	$	17,903,118

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
	Three Months Ended
	June 30, 2021			March 31, 2021			June 30, 2020
	Average Balance		Average Yield or Cost (%)	Average Balance		Average Yield or Cost (%)	Average Balance		Average Yield or Cost (%)
Assets
Interest earning deposits	$	646,342	0.12%	$	1,177,315	0.10%	$	384,622	0.12%
Investment securities ^(1)	1,512,644		2.20%	1,357,558		2.35%	705,389		3.49%
Loans and leases:
Commercial loans to mortgage companies	2,737,629		3.09%	3,122,098		3.09%	2,456,067		2.91%
Multi-family loans	1,551,370		3.88%	1,689,174		3.80%	2,009,847		3.87%
Commercial and industrial loans and leases ^(2)	2,878,045		3.59%	2,848,328		3.97%	2,460,060		4.05%
Loans receivable, PPP	6,133,184		2.69%	4,623,213		3.41%	2,754,920		1.71%
Non-owner occupied commercial real estate loans	1,368,695		3.86%	1,348,938		3.85%	1,392,131		3.81%
Residential mortgages	346,284		3.62%	373,497		3.78%	429,609		3.53%
Installment loans	1,467,595		9.37%	1,323,863		9.04%	1,288,999		8.72%
Total loans and leases ^(3)	16,482,802		3.74%	15,329,111		4.02%	12,791,633		3.72%
Other interest-earning assets	57,208		5.32%	79,960		3.64%	98,377		2.06%
Total interest-earning assets	18,698,996		3.49%	17,943,944		3.64%	13,980,021		3.60%
Non-interest-earning assets	607,952			581,777			616,683
Assets of discontinued operations	—			—			78,880
Total assets	$	19,306,948		$	18,525,721		$	14,675,584
Liabilities
Interest checking accounts	$	3,503,242	0.76%	$	2,691,723	0.84%	$	2,482,222	0.75%
Money market deposit accounts	4,859,614		0.47%	4,435,930		0.55%	3,034,457		0.85%
Other savings accounts	1,456,777		0.57%	1,414,350		0.69%	1,177,554		1.94%
Certificates of deposit	658,698		0.78%	666,239		0.97%	1,734,062		1.51%
Total interest-bearing deposits ^(4)	10,478,331		0.60%	9,208,242		0.69%	8,428,295		1.11%
FRB PPP liquidity facility	3,858,733		0.35%	3,941,718		0.35%	942,258		0.35%
Borrowings	531,757		3.85%	1,171,826		3.23%	2,282,761		1.62%
Total interest-bearing liabilities	14,868,821		0.65%	14,321,786		0.80%	11,653,314		1.15%
Non-interest-bearing deposits ^(4)	2,889,781			2,819,871			1,890,955
Total deposits and borrowings	17,758,602		0.54%	17,141,657		0.67%	13,544,269		0.99%
Other non-interest-bearing liabilities	328,251			247,798			88,913
Liabilities of discontinued operations	—			—			53,268
Total liabilities	18,086,853			17,389,455			13,686,450
Shareholders' equity	1,220,095			1,136,266			989,134
Total liabilities and shareholders' equity	$	19,306,948		$	18,525,721		$	14,675,584
Interest spread			2.95%			2.97%			2.61%
Net interest margin			2.98%			3.00%			2.65%
Net interest margin tax equivalent ^(5)			2.98%			3.00%			2.65%
Net interest margin tax equivalent excl. PPP ^(6)			3.30%			2.99%			2.97%

(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 0.47%, 0.53% and 0.91% for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, respectively.
(5)	Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(6)	Non-GAAP tax-equivalent basis, as described in note (5) for the three months ended June 30, 2021, March 31, 2021 and June 30, 2020, excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET / NET INTEREST MARGIN - UNAUDITED
(Dollars in thousands)
	Six Months Ended
	June 30, 2021			June 30, 2020
	Average Balance		Average Yield or Cost (%)	Average Balance		Average Yield or Cost (%)
Assets
Interest earning deposits	$	910,362	0.11%	$	578,435	1.03%
Investment securities ^(1)	1,435,529		2.27%	635,838		3.50%
Loans and leases:
Commercial loans to mortgage companies	2,928,802		3.09%	2,148,863		3.30%
Multi-family loans	1,619,891		3.84%	2,111,853		3.97%
Commercial and industrial loans and leases ^(2)	2,863,268		3.78%	2,460,435		4.37%
Loans receivable, PPP	5,382,370		3.00%	1,377,460		1.71%
Non-owner occupied commercial real estate loans	1,358,871		3.86%	1,363,795		4.07%
Residential mortgages	359,815		3.71%	437,782		3.75%
Installment loans	1,396,126		9.22%	1,274,024		8.93%
Total loans and leases ^(3)	15,909,143		3.88%	11,174,212		4.22%
Other interest-earning assets	68,521		4.34%	89,890		4.31%
Total interest-earning assets	18,323,555		3.56%	12,478,375		4.04%
Non-interest-earning assets	594,936			565,304
Assets of discontinued operations	—			80,816
Total assets	$	18,918,491		$	13,124,495
Liabilities
Interest checking accounts	$	3,099,725	0.80%	$	1,888,160	0.98%
Money market deposit accounts	4,648,942		0.51%	3,335,006		1.37%
Other savings accounts	1,435,681		0.63%	1,159,479		1.99%
Certificates of deposit	662,447		0.87%	1,629,416		1.76%
Total interest-bearing deposits ^(4)	9,846,795		0.64%	8,012,061		1.45%
FRB PPP liquidity facility	3,899,996		0.35%	471,129		0.35%
Borrowings	850,024		3.42%	1,756,080		2.16%
Total interest-bearing liabilities	14,596,815		0.72%	10,239,270		1.52%
Non-interest-bearing deposits ^(4)	2,855,019			1,732,163
Total deposits and borrowings	17,451,834		0.61%	11,971,433		1.30%
Other non-interest-bearing liabilities	288,246			92,218
Liabilities of discontinued operations	—			53,600
Total liabilities	17,740,080			12,117,251
Shareholders' equity	1,178,411			1,007,244
Total liabilities and shareholders' equity	$	18,918,491		$	13,124,495
Interest spread			2.96%			2.74%
Net interest margin			2.99%			2.79%
Net interest margin tax equivalent ^(5)			2.99%			2.80%
Net interest margin tax equivalent excl. PPP ^(6)			3.14%			2.98%

(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 0.50% and 1.19% for the six months ended June 30, 2021 and 2020, respectively.
(5)	Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the six months ended June 30, 2021 and 2020, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.
(6)	Non-GAAP tax-equivalent basis as described in note (5), for the six months ended June 30, 2021 and 2020, excluding net interest income from PPP loans and related borrowings, along with the related PPP loan balances and PPP fees receivable from interest-earning assets. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END LOAN AND LEASE COMPOSITION - UNAUDITED
(Dollars in thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
Commercial:
Multi-family	$	1,497,485	$	1,659,529	$	1,761,301	$	1,950,300	$	2,023,571
Loans to mortgage companies	2,922,217		3,463,490		3,657,350		3,947,828		2,832,112
Commercial & industrial	2,293,723		2,164,784		2,304,206		2,186,480		2,060,494
Commercial real estate owner occupied	653,649		590,093		572,338		557,595		544,772
Loans receivable, PPP	6,305,056		5,178,089		4,561,365		4,964,105		4,760,427
Commercial real estate non-owner occupied	1,206,646		1,194,832		1,213,815		1,233,882		1,262,373
Construction	179,198		156,837		140,905		122,963		128,834
Total commercial loans and leases	15,057,974		14,407,654		14,211,280		14,963,153		13,612,583
Consumer:
Residential	273,493		295,654		323,322		343,775		352,941
Manufactured housing	57,904		59,977		62,243		64,638		66,865
Installment	1,577,651		1,405,021		1,235,406		1,233,713		1,257,813
Total consumer loans	1,909,048		1,760,652		1,620,971		1,642,126		1,677,619
Total loans and leases	$	16,967,022	$	16,168,306	$	15,832,251	$	16,605,279	$	15,290,202

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
PERIOD END DEPOSIT COMPOSITION - UNAUDITED
(Dollars in thousands)
	June 30,		March 31,		December 31,		September 30,		June 30,
	2021		2021		2020		2020		2020
Demand, non-interest bearing	$	2,699,869	$	2,687,628	$	2,356,998	$	2,327,017	$	1,879,789
Demand, interest bearing	4,206,355		3,228,941		2,384,691		2,308,627		2,666,209
Total demand deposits	6,906,224		5,916,569		4,741,689		4,635,644		4,545,998
Savings	1,431,756		1,483,482		1,314,817		1,173,641		1,144,788
Money market	4,908,809		4,406,508		4,601,492		4,057,366		3,404,709
Time deposits	627,150		665,881		651,931		972,426		1,870,380
Total deposits	$	13,873,939	$	12,472,440	$	11,309,929	$	10,839,077	$	10,965,875

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
ASSET QUALITY - UNAUDITED
(Dollars in thousands)	As of June 30, 2021										As of March 31, 2021										As of June 30, 2020
	Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs		Total loans		Non accrual /NPLs		Allowance for credit losses		Total NPLs to total loans		Total reserves to total NPLs
Loan type
Multi-family	$	1,497,485	$	21,595	$	5,028	1.44	%	23.28	%	$	1,640,278	$	20,530	$	8,026	1.25	%	39.09	%	$	1,581,839	$	7,013	$	14,697	0.44	%	209.57	%
Commercial & industrial^(1)	2,360,656		6,717		8,127		0.28	%	120.99	%	2,220,652		7,544		7,503		0.34	%	99.46	%	2,099,442		9,974		12,302		0.48	%	123.34	%
Commercial real estate owner occupied	653,649		2,688		4,464		0.41	%	166.07	%	590,093		3,242		5,935		0.55	%	183.07	%	544,772		4,022		11,405		0.74	%	283.57	%
Commercial real estate non-owner occupied	1,206,646		—		7,374		—	%	—	%	1,194,832		2,356		11,621		0.20	%	493.25	%	1,244,773		30,257		26,493		2.43	%	87.56	%
Construction	179,198		—		2,643		—	%	—	%	156,837		—		4,103		—	%	—	%	128,834		—		5,297		—	%	—	%
Total commercial loans and leases receivable	5,897,634		31,000		27,636		0.53	%	89.15	%	5,802,692		33,672		37,188		0.58	%	110.44	%	5,599,660		51,266		70,194		0.92	%	136.92	%
Residential	266,911		8,991		2,299		3.37	%	25.57	%	293,805		9,353		3,209		3.18	%	34.31	%	348,109		7,857		4,550		2.26	%	57.91	%
Manufactured housing	57,904		3,239		4,372		5.59	%	134.98	%	59,977		2,871		4,799		4.79	%	167.15	%	66,865		3,331		6,014		4.98	%	180.55	%
Installment	1,549,693		2,728		91,129		0.18	%	3340.51	%	1,380,015		2,185		83,540		0.16	%	3823.34	%	1,257,813		4,887		79,147		0.39	%	1619.54	%
Total consumer loans receivable	1,874,508		14,958		97,800		0.80	%	653.83	%	1,733,797		14,409		91,548		0.83	%	635.35	%	1,672,787		16,075		89,711		0.96	%	558.08	%
Loans and leases receivable^(1)	7,772,142		45,958		125,436		0.59	%	272.94	%	7,536,489		48,081		128,736		0.64	%	267.75	%	7,272,447		67,341		159,905		0.93	%	237.46	%
Loans receivable, PPP	6,305,056		—		—		—	%	—	%	5,178,089		—		—		—	%	—	%	4,760,427		—		—		—	%	—	%
Loans receivable, mortgage warehouse, at fair value	2,855,284		—		—		—	%	—	%	3,407,622		—		—		—	%	—	%	2,793,164		—		—		—	%	—	%
Total loans held for sale	34,540		507		—		1.47	%	—	%	46,106		643		—		1.39	%	—	%	464,164		18,925		—		4.08	%	—	%
Total portfolio	$	16,967,022	$	46,465	$	125,436	0.27	%	269.96	%	$	16,168,306	$	48,724	$	128,736	0.30	%	264.21	%	$	15,290,202	$	86,266	$	159,905	0.56	%	185.36	%

(1)

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

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES
NET CHARGE-OFFS/(RECOVERIES) - UNAUDITED
(Dollars in thousands)
	Q2		Q1		Q4		Q3		Q2		Six Months Ended June 30,
	2021		2021		2020		2020		2020		2021		2020
Loan type
Multi-family	$	—	$	1,132	$	—	$	—	$	—	$	1,132	$	—
Commercial & industrial	(283)		375		155		(55)		(4)		92		39
Commercial real estate owner occupied	(1)		134		12		44		(2)		133		(5)
Commercial real estate non-owner occupied	(59)		(10)		(35)		8,923		2,801		(69)		15,598
Construction	(114)		(5)		(6)		(6)		(113)		(119)		(116)
Residential	(12)		40		46		(17)		(26)		28		(55)
Installment	7,060		10,855		8,300		8,410		7,669		17,915		13,575
Total net charge-offs (recoveries) from loans held for investment	$	6,591	$	12,521	$	8,472	$	17,299	$	10,325	$	19,112	$	29,036

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - UNAUDITED

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

Core Earnings - Customers Bancorp																					Six Months Ended June 30,
	Q2 2021				Q1 2021				Q4 2020				Q3 2020				Q2 2020				2021				2020
(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	$	58,042	$	1.72	$	33,204	$	1.01	$	52,831	$	1.65	$	47,085	$	1.48	$	19,137	$	0.61	$	91,246	$	2.74	$	18,621	$	0.59
Reconciling items (after tax):
Net loss from discontinued operations	—		—		38,036		1.16		2,317		0.07		532		0.02		2,258		0.07		38,036		1.14		7,612		0.24
Severance expense	1,517		0.04		—		—		—		—		—		—		—		—		1,517		0.05		—		—
Merger and acquisition related expenses	—		—		320		0.01		508		0.02		530		0.02		—		—		320		0.01		—		—
Legal reserves	—		—		—		—		—		—		258		0.01		—		—		—		—		—		—
(Gains) losses on investment securities	(2,694)		(0.08)		(18,773)		(0.57)		(1,419)		(0.04)		(9,662)		(0.30)		(4,543)		(0.14)		(21,467)		(0.64)		(6,331)		(0.20)
Loss on sale of foreign subsidiaries	2,150		0.06		—		—		—		—		—		—		—		—		2,150		0.06		—		—
Loss on cash flow hedge derivative terminations	—		—		18,716		0.57		—		—		—		—		—		—		18,716		0.56		—		—
Derivative credit valuation adjustment	288		0.01		(1,195)		(0.04)		(448)		(0.01)		(304)		(0.01)		4,527		0.14		(907)		(0.03)		6,563		0.21
Risk participation agreement mark-to-market adjustment	—		—		—		—		—		—		—		—		(1,080)		(0.03)		—		—		(1,080)		(0.03)
Unrealized losses on loans held for sale	—		—		—		—		799		0.03		—		—		1,114		0.04		—		—		1,114		0.04
Core earnings	$	59,303	$	1.76	$	70,308	$	2.14	$	54,588	$	1.71	$	38,439	$	1.21	$	21,413	$	0.68	$	129,611	$	3.89	$	26,499	$	0.84

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																Six Months Ended June 30,
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			2021			2020
GAAP net income	$	61,341		$	36,595		$	56,245		$	50,515		$	22,718		$	97,936		$	25,817
Reconciling items (after tax):
Net loss from discontinued operations	—			38,036			2,317			532			2,258			38,036			7,612
Severance expense	1,517			—			—			—			—			1,517			—
Merger and acquisition related expenses	—			320			508			530			—			320			—
Legal reserves	—			—			—			258			—			—			—
(Gains) losses on investment securities	(2,694)			(18,773)			(1,419)			(9,662)			(4,543)			(21,467)			(6,331)
Loss on sale of foreign subsidiaries	2,150			—			—			—			—			2,150			—
Loss on cash flow hedge derivative terminations	—			18,716			—			—			—			18,716			—
Derivative credit valuation adjustment	288			(1,195)			(448)			(304)			4,527			(907)			6,563
Risk participation agreement mark-to-market adjustment	—			—			—			—			(1,080)			—			(1,080)
Unrealized losses on loans held for sale	—			—			799			—			1,114			—			1,114
Core net income	$	62,602		$	73,699		$	58,002		$	41,869		$	24,994		$	136,301		$	33,695
Average total assets	$	19,306,948		$	18,525,721		$	18,250,719		$	17,865,574		$	14,675,584		$	18,918,491		$	13,124,495
Core return on average assets	1.30		%	1.61		%	1.26		%	0.93		%	0.68		%	1.45		%	0.52		%

Adjusted Net Income and Adjusted ROAA - Pre-Tax Pre-Provision - Customers Bancorp																Six Months Ended June 30,
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			2021			2020
GAAP net income	$	61,341		$	36,595		$	56,245		$	50,515		$	22,718		$	97,936		$	25,817
Reconciling items:
Income tax expense	20,124			17,560			23,447			12,016			7,980			37,684			11,254
Provision (benefit) for credit losses on loans and leases	3,291			(2,919)			(2,913)			12,955			20,946			372			52,732
Provision (benefit) for credit losses on unfunded commitments	45			(1,286)			(968)			(527)			(356)			(1,241)			395
Severance expense	2,004			—			—			—			—			2,004			—
Net loss from discontinued operations	—			38,036			2,317			532			2,258			38,036			7,612
Merger and acquisition related expenses	—			418			709			658			—			418			—
Legal reserves	—			—			—			320			—			—			—
(Gains) losses on investment securities	(3,558)			(24,540)			(1,431)			(11,945)			(5,553)			(28,098)			(8,150)
Loss on sale of foreign subsidiaries	2,840			—			—			—			—			2,840			—
Loss on cash flow hedge derivative terminations	—			24,467			—			—			—			24,467			—
Derivative credit valuation adjustment	380			(1,562)			(625)			(378)			5,895			(1,182)			8,451
Risk participation agreement mark-to-market adjustment	—			—			—			—			(1,407)			—			(1,407)
Unrealized losses on loans held for sale	—			—			1,115			—			1,450			—			1,450
Adjusted net income - pre-tax pre-provision	$	86,467		$	86,769		$	77,896		$	64,146		$	53,931		$	173,236		$	98,154
Average total assets	$	19,306,948		$	18,525,721		$	18,250,719		$	17,865,574		$	14,675,584		$	18,918,491		$	13,124,495
Adjusted ROAA - pre-tax pre-provision	1.80		%	1.90		%	1.70		%	1.43		%	1.48		%	1.85		%	1.50		%

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																Six Months Ended June 30,
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			2021			2020
GAAP net income to common shareholders	$	58,042		$	33,204		$	52,831		$	47,085		$	19,137		$	91,246		$	18,621
Reconciling items (after tax):
Net loss from discontinued operations	—			38,036			2,317			532			2,258			38,036			7,612
Severance expense	1,517			—			—			—			—			1,517			—
Merger and acquisition related expenses	—			320			508			530			—			320			—
Legal reserves	—			—			—			258			—			—			—
(Gains) losses on investment securities	(2,694)			(18,773)			(1,419)			(9,662)			(4,543)			(21,467)			(6,331)
Loss on sale of foreign subsidiaries	2,150			—			—			—			—			2,150			—
Loss on cash flow hedge derivative terminations	—			18,716			—			—			—			18,716			—
Derivative credit valuation adjustment	288			(1,195)			(448)			(304)			4,527			(907)			6,563
Risk participation agreement mark-to-market adjustment	—			—			—			—			(1,080)			—			(1,080)
Unrealized losses on loans held for sale	—			—			799			—			1,114			—			1,114
Core earnings	$	59,303		$	70,308		$	54,588		$	38,439		$	21,413		$	129,611		$	26,499
Average total common shareholders' equity	$	1,002,624		$	918,795		$	866,411		$	812,577		$	771,663		$	960,940		$	789,774
Core return on average common equity	23.72		%	31.03		%	25.06		%	18.82		%	11.16		%	27.20		%	6.75		%

Adjusted ROCE - Pre-Tax Pre-Provision - Customers Bancorp																Six Months Ended June 30,
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			2021			2020
GAAP net income to common shareholders	$	58,042		$	33,204		$	52,831		$	47,085		$	19,137		$	91,246		$	18,621
Reconciling items:
Income tax expense	20,124			17,560			23,447			12,016			7,980			37,684			11,254
Provision (benefit) for credit losses on loan and leases	3,291			(2,919)			(2,913)			12,955			20,946			372			52,732
Provision (benefit) for credit losses on unfunded commitments	45			(1,286)			(968)			(527)			(356)			(1,241)			395
Net loss from discontinued operations	—			38,036			2,317			532			2,258			38,036			7,612
Severance expense	2,004			—			—			—			—			2,004			—
Merger and acquisition related expenses	—			418			709			658			—			418			—
Legal reserves	—			—			—			320			—			—			—
(Gains) losses on investment securities	(3,558)			(24,540)			(1,431)			(11,945)			(5,553)			(28,098)			(8,150)
Loss on sale of foreign subsidiaries	2,840			—			—			—			—			2,840			—
Loss on cash flow hedge derivative terminations	—			24,467			—			—			—			24,467			—
Derivative credit valuation adjustment	380			(1,562)			(625)			(378)			5,895			(1,182)			8,451
Risk participation agreement mark-to-market adjustment	—			—			—			—			(1,407)			—			(1,407)
Unrealized losses on loans held for sale	—			—			1,115			—			1,450			—			1,450
Pre-tax pre-provision adjusted net income available to common shareholders	$	83,168		$	83,378		$	74,482		$	60,716		$	50,350		$	166,546		$	90,958
Average total common shareholders' equity	$	1,002,624		$	918,795		$	866,411		$	812,577		$	771,663		$	960,940		$	789,774
Adjusted ROCE - pre-tax pre-provision	33.27		%	36.80		%	34.20		%	29.73		%	26.24		%	34.95		%	23.16		%

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																Six Months Ended June 30,
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			2021			2020
GAAP net interest income	$	138,757		$	132,731		$	122,946		$	107,439		$	91,982		$	271,488		$	173,302
Tax-equivalent adjustment	289			292			219			225			225			581			430
Net interest income tax equivalent	$	139,046		$	133,023		$	123,165		$	107,664		$	92,207		$	272,069		$	173,732
Average total interest earning assets	$	18,698,996		$	17,943,944		$	17,601,999		$	17,121,145		$	13,980,021		$	18,323,555		$	12,478,375
Net interest margin, tax equivalent	2.98		%	3.00		%	2.78		%	2.50		%	2.65		%	2.99		%	2.80		%

Net Interest Margin, Tax Equivalent, Excluding PPP - Customers Bancorp																Six Months Ended June 30,
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			2021			2020
GAAP net interest income	$	138,757		$	132,731		$	122,946		$	107,439		$	91,982		$	271,488		$	173,302
PPP net interest income	(35,785)			(34,842)			(25,257)			(20,018)			(9,308)			(70,627)			(9,308)
Tax-equivalent adjustment	289			292			219			225			225			581			430
Net interest income, tax equivalent, excluding PPP	$	103,261		$	98,181		$	97,908		$	87,646		$	82,899		$	201,442		$	164,424
GAAP average total interest earning assets	$	18,698,996		$	17,943,944		$	17,601,999		$	17,121,145		$	13,980,021		$	18,323,555		$	12,478,375
Average PPP loans	(6,133,184)			(4,623,213)			(4,782,606)			(4,909,197)			(2,754,920)			(5,382,370)			(1,377,460)
Adjusted average total interest earning assets	$	12,565,812		$	13,320,731		$	12,819,393		$	12,211,948		$	11,225,101		$	12,941,185		$	11,100,915
Net interest margin, tax equivalent, excluding PPP	3.30		%	2.99		%	3.04		%	2.86		%	2.97		%	3.14		%	2.98		%

Core Efficiency Ratio - Customers Bancorp																Six Months Ended June 30,
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020			2021			2020
GAAP net interest income	$	138,757		$	132,731		$	122,946		$	107,439		$	91,982		$	271,488		$	173,302
GAAP non-interest income	$	16,822		$	18,468		$	16,083		$	24,864		$	11,711		$	35,290		$	22,871
(Gains) losses on investment securities	(3,558)			(24,540)			(1,431)			(11,945)			(5,553)			(28,098)			(8,150)
Derivative credit valuation adjustment	380			(1,562)			(625)			(378)			5,895			(1,182)			8,451
Risk participation agreement mark-to-market adjustment	—			—			—			—			(1,407)			—			(1,407)
Unrealized losses on loans held for sale	—			—			1,115			—			1,450			—			1,450
Loss on cash flow hedge derivative terminations	—			24,467			—			—			—			24,467			—
Loss on sale of foreign subsidiaries	2,840			—			—			—			—			2,840			—
Core non-interest income	16,484			16,833			15,142			12,541			12,096			33,317			23,215
Core revenue	$	155,241		$	149,564		$	138,088		$	119,980		$	104,078		$	304,805		$	196,517
GAAP non-interest expense	$	70,823		$	61,927		$	59,933		$	56,285		$	49,791		$	132,750		$	98,758
Severance expense	(2,004)			—			—			—			—			(2,004)			—
Legal reserves	—			—			—			(320)			—			—			—
Merger and acquisition related expenses	—			(418)			(709)			(658)			—			(418)			—
Core non-interest expense	$	68,819		$	61,509		$	59,224		$	55,307		$	49,791		$	130,328		$	98,758
Core efficiency ratio ^(1)	44.33		%	41.13		%	42.89		%	46.10		%	47.84		%	42.76		%	50.25		%

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

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 - Customers Bancorp
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020
GAAP total shareholders' equity	$	1,250,729		$	1,188,721		$	1,117,086		$	1,051,491		$	1,007,847
Reconciling items:
Preferred stock	(217,471)			(217,471)			(217,471)			(217,471)			(217,471)
Goodwill and other intangibles^(1)	(3,853)			(3,911)			(14,298)			(14,437)			(14,575)
Tangible common equity	$	1,029,405		$	967,339		$	885,317		$	819,583		$	775,801
GAAP total assets	$	19,635,108		$	18,817,660		$	18,439,248		$	18,778,727		$	17,903,118
Reconciling items:
Goodwill and other intangibles^(1)	(3,853)			(3,911)			(14,298)			(14,437)			(14,575)
Tangible assets	$	19,631,255		$	18,813,749		$	18,424,950		$	18,764,290		$	17,888,543
Tangible common equity to tangible assets	5.24		%	5.14		%	4.80		%	4.37		%	4.34		%

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

Tangible Book Value per Common Share - Customers Bancorp
(dollars in thousands except share and per share data)	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020
GAAP total shareholders' equity	$	1,250,729	$	1,188,721	$	1,117,086	$	1,051,491	$	1,007,847
Reconciling Items:
Preferred stock	(217,471)		(217,471)		(217,471)		(217,471)		(217,471)
Goodwill and other intangibles^(1)	(3,853)		(3,911)		(14,298)		(14,437)		(14,575)
Tangible common equity	$	1,029,405	$	967,339	$	885,317	$	819,583	$	775,801
Common shares outstanding	32,353,256		32,238,762		31,705,088		31,555,124		31,510,287
Tangible book value per common share	$	31.82	$	30.01	$	27.92	$	25.97	$	24.62

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

Total Loans and Leases, excluding PPP
(dollars in thousands except per share data)	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020
Total loans and leases	$	16,967,022	$	16,168,306	$	15,832,251	$	16,605,279	$	15,290,202
Loans receivable, PPP	(6,305,056)		(5,178,089)		(4,561,365)		(4,964,105)		(4,760,427)
Loans and leases, excluding PPP	$	10,661,966	$	10,990,217	$	11,270,886	$	11,641,174	$	10,529,775

Total Assets, excluding PPP
(dollars in thousands except per share data)	Q2 2021		Q1 2021		Q4 2020		Q3 2020		Q2 2020
Total assets	$	19,635,108	$	18,817,660	$	18,439,248	$	18,778,727	$	17,903,118
Loans receivable, PPP	(6,305,056)		(5,178,089)		(4,561,365)		(4,964,105)		(4,760,427)
Total assets, excluding PPP	$	13,330,052	$	13,639,571	$	13,877,883	$	13,814,622	$	13,142,691

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)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020
Loans and leases receivable	$	14,077,198		$	12,714,578		$	12,136,733		$	12,664,997		$	12,032,874
Loans receivable, PPP	(6,305,056)			(5,178,089)			(4,561,365)			(4,964,105)			(4,760,427)
Loans and leases held for investment, excluding PPP	$	7,772,142		$	7,536,489		$	7,575,368		$	7,700,892		$	7,272,447
Allowance for credit losses on loans and leases	$	125,436		$	128,736		$	144,176		$	155,561		$	159,905
Coverage of credit loss reserves for loans and leases held for investment, excluding PPP	1.61		%	1.71		%	1.90		%	2.02		%	2.20		%

Tangible Common Equity to Tangible Assets, excluding PPP - Customers Bancorp
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020			Q3 2020			Q2 2020
GAAP total shareholders' equity	$	1,250,729		$	1,188,721		$	1,117,086		$	1,051,491		$	1,007,847
Reconciling items:
Preferred stock	(217,471)			(217,471)			(217,471)			(217,471)			(217,471)
Goodwill and other intangibles ^(1)	(3,853)			(3,911)			(14,298)			(14,437)			(14,575)
Tangible common equity	$	1,029,405		$	967,339		$	885,317		$	819,583		$	775,801
GAAP total assets	$	19,635,108		$	18,817,660		$	18,439,248		$	18,778,727		$	17,903,118
Loans receivable, PPP	(6,305,056)			(5,178,089)			(4,561,365)			(4,964,105)			(4,760,427)
Total assets, excluding PPP	$	13,330,052		$	13,639,571		$	13,877,883		$	13,814,622		$	13,142,691
Reconciling items:
Goodwill and other intangibles ^(1)	(3,853)			(3,911)			(14,298)			(14,437)			(14,575)
Tangible assets	$	13,326,199		$	13,635,660		$	13,863,585		$	13,800,185		$	13,128,116
Tangible common equity to tangible assets	7.72		%	7.09		%	6.39		%	5.94		%	5.91		%

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

Deferments to total loans and leases, excluding PPP
(dollars in thousands except per share data)	Q2 2021			Q1 2021			Q4 2020
Total loans and leases	$	16,967,022		$	16,168,306		$	15,832,251
Loans receivable, PPP	(6,305,056)			(5,178,089)			(4,561,365)
Total loans and leases, excluding PPP	$	10,661,966		$	10,990,217		$	11,270,886
Commercial deferments	$	89,800		$	176,100		$	202,100
Consumer deferments	8,400			13,000			16,400
Total deferments	$	98,200		$	189,100		$	218,500
Commercial deferments to total loans and leases, excluding PPP	0.8		%	1.6		%	1.8		%
Consumer deferments to total loans and leases, excluding PPP	0.1			0.1			0.1
Total deferments to total loans and leases, excluding PPP	0.9		%	1.7		%	1.9		%