Customers Bancorp, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, total interest income was $97,619,000 against $83,609,000 a year ago. Net interest income was $68,300,000 against $64,128,000 a year ago. Net interest income after provision for loan losses was $67,469,000 against $63,941,000 a year ago. Income before income tax expense was $32,421,000 against $29,148,000 a year ago. Net income was $21,615,000 against $19,828,000 a year ago. Net income available to common shareholders was $18,000,000 against $16,213,000 a year ago. Diluted earnings per common share were $0.55 against $0.51 a year ago. Adjusted net income to common shareholders was $17,830,000 or $0.55 per share against $23,475,000 or $0.74 per share a year ago. Return on average assets was 0.84% against 0.84% a year ago. Return on average common equity was 10.11% against 10.45% a year ago. Return on tangible common equity was 13.72% against 11.59% a year ago. Adjusted net income was $21,445,000. Adjusted return on average assets was 0.84% Adjusted return on average common equity was 10.01%.

For the year, total interest income was $372,850,000 against $322,539,000 a year ago. Net interest income was $267,343,000 against $249,497,000 a year ago. Net interest income after provision for loan losses was $260,575,000 against $246,456,000 a year ago. Income before income tax expense was $123,879,000 against $124,595,000 a year ago. Net income was $78,837,000 against $78,702,000 a year ago. Net income available to common shareholders was $64,378,000 against $69,187,000 a year ago. Diluted earnings per common share were $1.97 against $2.31 a year ago. Adjusted net income to common shareholders was $71,715,000 or $2.20per share. Book value per common share as at December 31, 2017 was $22.42 against $21.08 as at December 31, 2016. Return on average assets was 0.77% against 0.86% a year ago. Return on average common equity was 9.38% against 12.41% a year ago. Tangible book value per common share (a Non-GAAP Measure) as on December 31, 2017 was $21.90 against $20.49 as at December 31, 2016. Return on tangible common equity was 12.07% against 11.74% a year ago. Adjusted net income was $86,174,000. Adjusted return on average assets was 0.85%. Adjusted return on average common equity was 10.45%.

The company is currently targeting moderate growth in 2018 and diluted EPS of $2.75 to $3.00 from the Community Business Banking segment, which is core franchise which will remain as continuing business after the spin-off and merger has been completed. The company expects the Community Business Banking segment to grow total assets approximately 12% to 15% in 2018, and expects net interest margin will remain in a range between 2.70% to 2.80%. The efficiency ratio at the Community Business Banking segment in 2018 is expected to be in the mid to high 40%, with expected fee income of approximately $35 million to $40 million. The company estimates an effective consolidated tax rate of approximately 24%. The company expects to continue to experience notable seasonality with first quarter earnings, which are impacted by lower average balances in the mortgage warehouse business, a shorter day count, and an increase in compensation expense. The company currently expects that BankMobile's segment results will range between a slight profit and a $4.5 million loss per quarter until its divestiture.

For the quarter, the company reported net charge-offs of $1,130,000 against $770,000 a year ago.