The following is a summary of the Customers Bancorp, Inc. (CUBI) Q1 2024 Earnings Call Transcript:
Financial Performance:
Customers Bancorp reported a GAAP EPS of $1.40 on a net income of $45.9 million and adjusted core EPS of $1.68 on a net income of $55 million for Q1 2024.
The bank reported a business unit deposit growth exceeding $1 billion and mentioned strengthened capital levels with a TCE/TA ratio at 7.3% and CET1 ratio at 12.5%.
The bank noted an annualized growth on key metrics such as revenue, EPS and tangible book value per share in excess of 15% over the past 5 years.
Despite investment in new banking teams, the bank expects to maintain a slightly elevated efficiency ratio in the short term.
Business Progress:
The bank indicated that they've hired 10 new banking teams from Signature Bank and that they're making upfront investments to enhance the quality of their deposit franchise and increase revenues in the coming year.
Aim for a disciplined loan growth of 10% to 15% focusing on holistic client relationships and improved granularity of their deposit franchise.
Reduction In the use of wholesale CDs by 66% and borrowings by over 40% in the past 12 months indicates sound management of resources.
The bank is focusing on maintaining robust liquidity levels while also considering deploying risk-based capital to support clients and generate franchise-enhancing higher-yielding loan growth.
Customers Bancorp has plans to reduce their efficiency ratio down to 50% by the end of the year and mid-40s by next year.
More details: Customers Bancorp IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.