Customers Bancorp, Inc. reported its financial results for the first quarter of 2025, revealing a significant decline in net income available to common shareholders, which fell to $9.5 million, or $0.30 per share, compared to $45.9 million, or $1.46 per share, in the same period last year. The company's total interest income decreased to $314.9 million from $331.8 million, primarily due to lower interest income from investment securities and interest-earning deposits. However, net interest income increased by 4.4% to $167.4 million, driven by a reduction in interest expense on deposits, which was partially offset by a decrease in interest income from other sources.
The provision for credit losses rose sharply by 65.8% to $28.3 million, reflecting a slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment. The allowance for credit losses on loans and leases increased to $141.1 million, representing 1.04% of total loans and leases receivable. Net charge-offs for the quarter were $17.1 million, a decrease from $18.0 million in the prior year, indicating improved asset quality in certain segments, particularly consumer installment loans.
Operationally, Customers Bancorp's total assets grew to $22.4 billion, up from $22.3 billion at the end of 2024, with total loans and leases receivable increasing by 3.3% to $13.6 billion. The bank's deposit base also saw a modest increase, totaling $18.9 billion, primarily due to growth in savings accounts and time deposits. The company continues to focus on maintaining a strong liquidity position, with approximately $8.7 billion in immediate available liquidity, which includes cash on hand and borrowing capacity from the Federal Reserve Bank and Federal Home Loan Bank.
Looking ahead, Customers Bancorp remains cautious amid ongoing economic uncertainties, including inflationary pressures and geopolitical tensions. The bank is actively managing its interest rate risk and has adjusted its loan portfolio towards lower credit risk commercial loans. The management anticipates that the economic environment will continue to evolve, and it is prepared to adapt its strategies accordingly to maintain financial stability and growth.
About Customers Bancorp, Inc.
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