Customers Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Earnings Guidance for Fiscal 2018; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2017
January 24, 2018 at 04:39 pm EST
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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.
Customers Bancorp, Inc. is a bank holding company, which is engaged in banking activities through its subsidiary, Customers Bank (the Bank). The Bank provides 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, New York, Hamilton, New Jersey, Boston, Massachusetts, and other geographies. The Bank administratively supports loans and other financial products, including equipment finance leases, to customers. It also offers venture banking loan portfolios. The Bank serves specialty businesses nationwide, including its commercial loans to mortgage companies, commercial equipment financing, SBA lending, specialty lending and consumer loans through relationships with fintech companies. The Bankâs specialty lending includes fund finance, real estate specialty finance, technology and venture, healthcare, and financial institutions group.
Customers Bancorp, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Earnings Guidance for Fiscal 2018; Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2017