In This Article:
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Total Assets: $22 billion at the end of 2024.
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Net Deposit Growth: $10 billion over five years, 17% annually.
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Net Interest Income: Increased by 19% annually over five years.
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Core EPS: $5.60 for the full year 2024.
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Core Net Income: $183 million for the full year 2024.
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Core ROE: 11.4% for the full year 2024.
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Core ROA: 92 basis points for the full year 2024.
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Deposit Inflows: $1 billion in Q4 2024.
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Loan Growth: 19% annualized pace in Q4 2024.
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Net Interest Margin: Increased to 3.11% in Q4 2024.
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Non-Interest Expense: $108.6 million in Q4 2024.
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Tangible Book Value: Increased to $54 per share in Q4 2024.
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Capital Ratio (CET1): 12% at the end of 2024.
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Non-Performing Assets (NPAs): 25 basis points.
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Net Charge-Offs: Declined by $2.4 million in Q4 2024.
Release Date: January 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Customers Bancorp Inc (NYSE:CUBI) reported strong deposit-led growth, with the bank doubling in size over the last five years and ending 2024 with over $22 billion in assets.
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The company achieved a significant increase in net interest income, up 19% annually, and core EPS up over 2.5 times over the last five years.
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Customers Bancorp Inc (NYSE:CUBI) successfully reduced its cost of funding in 2024, achieving an impressive total deposit beta of 64% during the easing cycle.
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The bank's loan portfolio grew at an industry-leading 19% annualized pace in the fourth quarter, with diversified growth across various sectors.
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Customers Bancorp Inc (NYSE:CUBI) maintained strong credit quality, with NPAs remaining low at just 25 basis points and a decline in net charge-offs for the second consecutive quarter.
Negative Points
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The company is still trading at a low book value despite significant growth and profitability improvements.
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Customers Bancorp Inc (NYSE:CUBI) faces uncertainties related to macroeconomic factors and potential rate cuts, which could impact net interest income growth.
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The bank's core non-interest expense increased due to higher professional services expenses, impacting short-term profitability.
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There is a potential risk associated with the high concentration of non-interest-bearing deposits from the cubiX platform, which could affect liquidity management.
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The provisioning outlook remains uncertain, with potential for increased provisions due to continued loan growth.
Q & A Highlights
Q: Can you discuss your expectations for loan growth over the next quarter or two? A: Phil Watkins, CFO: The pipelines are strong, with expectations in the $400 million to $500 million range. Q1 is typically slower due to year-end closings, and unexpected payoffs have been occurring. We remain disciplined, focusing on holistic relationships rather than loan-only relationships.