Customers Bancorp, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Customers Bancorp, Inc. has filed its 2023 10-K report detailing financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Customers Bancorp, Inc. (CUBB) filed a Annual Report (10-K) with the SEC on February 29, 2024. Customers Bancorp, Inc. filed its 2023 Form 10-K on February 29, 2024, reporting on the fiscal year ending December 31, 2023. The filing includes financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items such as Interest Receivable, Other Assets, and Other Liabilities are detailed. The company's business address is 701 Reading Avenue, West Reading, PA 19611. The filing references various financial instruments and accounting standards, including those related to derivatives and cash flow hedges.

Why It Matters

For investors and stakeholders tracking Customers Bancorp, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Customers Bancorp's financial health and strategic positioning for the past fiscal year, crucial for investors assessing its stability and growth prospects. The detailed financial statements and disclosures within the report are essential for understanding the company's revenue streams, expenses, assets, liabilities, and overall profitability, informing investment decisions.

Risk Assessment

Risk Level: medium — Customers Bancorp, Inc. shows moderate risk based on this filing. The company operates in the highly regulated banking sector, facing risks related to interest rate fluctuations, credit quality, and economic downturns, as evidenced by the detailed financial disclosures and risk factor sections typical of a 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Customers Bancorp's performance and potential risks in the current economic environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-29 — Filing Date (Date filed)
• 2023 — Fiscal Year (Primary reporting year)
• 2022 — Prior Fiscal Year (Comparative year)
• 2021 — Prior Fiscal Year (Comparative year)

Key Players & Entities

• Customers Bancorp, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-29 (date) — Filing date
• 701 Reading Avenue, West Reading, PA 19611 (address) — Business address
• BM Technologies, Inc. (company) — Mentioned in relation to discontinued operations

FAQ

Risk Factors

• Interest Rate Risk [high — financial]: Fluctuations in interest rates can impact the company's net interest income and the fair value of its financial instruments.
• Credit Risk [high — financial]: The risk that borrowers will default on their obligations, leading to losses for the company.
• Economic Conditions [medium — market]: Deterioration in general economic conditions could adversely affect the company's business and financial results.
• Regulatory Compliance [medium — regulatory]: The company is subject to extensive regulation by federal and state authorities, requiring significant compliance efforts.

Key Dates

• 2023-12-31: Fiscal Year End — The period covered by the financial statements in the 10-K.
• 2024-02-29: Filing Date — The date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $1.00 — istered Voting Common Stock, par value $1.00 per share CUBI New York Stock Exchange
• $10 billion — cable to banks with assets in excess of $10 billion; changes in our business strategy or a
• $21.3 b — 31, 2023, Customers had total assets of $21.3 billion, including total loans and leases
• $13.1 b — tal loans and leases, net of the ACL of $13.1 billion, total deposits of $17.9 billion
• $17.9 billion — ACL of $13.1 billion, total deposits of $17.9 billion and shareholders' equity of $1.6 billio
• $1.6 billion — 7.9 billion and shareholders' equity of $1.6 billion. Customers differentiates itself throu

Filing Documents

• cubi-20231231.htm (10-K) — 6337KB
• cubi-12312023xex211.htm (EX-21.1) — 2KB
• cubi-12312023xex231.htm (EX-23.1) — 2KB
• cubi-12312023xex311.htm (EX-31.1) — 10KB
• cubi-12312023xex312.htm (EX-31.2) — 10KB
• cubi-12312023xex321.htm (EX-32.1) — 5KB
• cubi-12312023xex322.htm (EX-32.2) — 5KB
• cubiincentivecompensatio.htm (EX-97.1) — 32KB
• cubi-20231231_g1.jpg (GRAPHIC) — 66KB
• cubi-20231231_g2.jpg (GRAPHIC) — 193KB
• cubi-20231231_g3.jpg (GRAPHIC) — 330KB
• cubiincentivecompensatio001.jpg (GRAPHIC) — 221KB
• cubiincentivecompensatio002.jpg (GRAPHIC) — 237KB
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• cubiincentivecompensatio004.jpg (GRAPHIC) — 227KB
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• cubiincentivecompensatio007.jpg (GRAPHIC) — 312KB
• cubiincentivecompensatio008.jpg (GRAPHIC) — 247KB
• cubiincentivecompensatio009.jpg (GRAPHIC) — 94KB
• cubiincentivecompensatio010.jpg (GRAPHIC) — 101KB
• 0001488813-24-000010.txt (&nbsp;) — 34040KB
• cubi-20231231.xsd (EX-101.SCH) — 132KB
• cubi-20231231_cal.xml (EX-101.CAL) — 255KB
• cubi-20231231_def.xml (EX-101.DEF) — 801KB
• cubi-20231231_lab.xml (EX-101.LAB) — 1707KB
• cubi-20231231_pre.xml (EX-101.PRE) — 1238KB
• cubi-20231231_htm.xml (XML) — 6938KB

Risk Factors

Item 1A. Risk Factors 30

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 63

Cybersecurity

Item 1C. Cybersecurity 64

Properties

Item 2. Properties 65

Legal Proceedings

Item 3. Legal Proceedings 65

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 65 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 66

[Reserved]

Item 6. [Reserved] 68

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 69

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 107

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 110

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 185

Controls and Procedures

Item 9A. Controls and Procedures 185

Other Information

Item 9B. Other Information 186

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 186 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 187

Executive Compensation

Item 11. Executive Compensation 187

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 187

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 187

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 187 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 188

Form 10-K Summary

Item 16. Form 10-K Summary 191

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, as well as other written or oral communications made from time to time by us, contains forward-looking information within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are statements other than statements of fact and tend to relate to future events or future predictions, including events or predictions relating to future financial performance, and are generally identifiable by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "plan," "intend," or "anticipate" or the negative thereof or comparable terminology. Forward-looking statements reflect numerous assumptions, estimates and forecasts as to future events. No assurance can be given that the assumptions, estimates and forecasts underlying such forward-looking statements will accurately reflect future conditions, or that any guidance, goals, targets or projected results will be realized. The assumptions, estimates and forecasts underlying such forward-looking statements involve judgments with respect to, among other things, future economic, competitive, regulatory and financial market conditions and future business decisions, which may not be realized and which are inherently subject to significant business, economic, competitive and regulatory uncertainties and known and unknown risks, including the risks described under "Risk Factors" in this Annual Report on Form 10-K, as such factors may be updated from time to time in our filings with the SEC, including our Quarterly Reports on Form 10-Q. Our actual results may differ materially from those reflected in the forward-looking statements. In addition to the risks described in the "Risk Factors" section of this Annual Report on Form 10-K and the other reports we file with the SEC, important factors to consider and evaluate with respect to such forward-looking statements include: a prolong

Business

Item 1. Business Customers Bancorp is a bank holding company engaged in banking activities through its wholly owned subsidiary, Customers Bank, collectively referred to as "Customers" herein. Customers is a forward-thinking bank with strong risk management that provides commercial and consumer customers the stability and trust inherent in working with an established and regulated financial institution. The Bank has diversified lending activities that build overall franchise value and a high-tech, high-touch branch-light strategy that serves its customers through a single-point-of-contact private banking strategy with a focus on community banking businesses, including commercial and industrial and commercial real estate loans (to borrowers in Pennsylvania, New Jersey, New York City, New England and other geographies), multifamily lending, SBA lending and residential mortgage lending. The Bank also serves specialty businesses nationwide, including its specialty lending, commercial loans to mortgage companies and commercial equipment financing. The Bank offers digital banking to commercial and consumer businesses nationwide, including Banking-as-a-Service to fintech companies, payments and treasury services to businesses, and consumer loans through relationships with fintech companies. Business Summary Customers Bancorp and its wholly owned subsidiary, Customers Bank, provide banking products, primarily loans and deposits, to businesses and consumers through its branches, limited production offices and administrative offices in Berks County and Southeastern Pennsylvania (Bucks, Chester and Philadelphia Counties); New York (Westchester and Suffolk Counties, and Manhattan); Hamilton, New Jersey; Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Chicago, Illinois; Dallas, Texas; Wilmington, North Carolina; and other locations. The Bank has a diversified lending business consisting of geographically in-market community banking offerings such as

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View this 10-K filing on SEC EDGAR