WEST READING, Pa.–(BUSINESS WIRE)–$CUBI #Banking–Customers Bancorp, Inc. (NYSE:CUBI):
Fourth Quarter 2024 Highlights
- Q4 2024 net income available to common shareholders was $23.3 million, or $0.71 per diluted share; ROAA was 0.48% and ROCE was 5.50%.
- Q4 2024 core earnings*1 were $44.2 million, or $1.36 per diluted share; Core ROAA* was 0.86% and Core ROCE* was 10.44%.
- Q4 2024 net income available to common shareholders included $20.0 million of post-tax losses in connection with the securities portfolio repositioning executed to improve structural liquidity, reduce asset sensitivity and benefit margin.
- Total loans and leases held for investment grew by $671.1 million in Q4 2024 from Q3 2024 or 19% annualized.
- Total deposits increased by $777.1 million or 4.3% in Q4 2024 from Q3 2024.
- Non-interest bearing demand deposits increased $937.5 million or 20.1% in Q4 2024 from Q3 2024; non-interest bearing deposits represented 29.7% of total deposits at December 31, 2024.
- Q4 2024 average cost of deposits was 3.07% compared to Q3 2024 of 3.46%, a decrease of 39 basis points.
- Q4 2024 net interest margin, tax equivalent (“NIM”) was 3.11%, compared to Q3 2024 NIM of 3.06%, an increase of 5 basis points primarily due to lower deposit costs.
- Ratio of non-performing assets to total assets was 0.25% at December 31, 2024 compared to 0.22% at September 30, 2024.
- Q4 2024 provision for credit losses on loans and leases was $18.2 million compared to $17.8 million in Q3 2024 and the allowance for credit losses on loans and leases equaled 316% of non-performing loans at December 31, 2024, compared to 281% at September 30, 2024.
- CET 1 ratio of 12.0%2 at December 31, 2024, compared to 12.5% at September 30, 2024.
- TCE / TA ratio* of 7.6% at December 31, 2024, compared to 7.7% at September 30, 2024.
- Q4 2024 book value per share and tangible book value per share* both grew by approximately $1.12, or 2.1% over Q3 2024, or 8.4% annualized, with a tangible book value per share* of $54.08 at December 31, 2024. This was driven by current quarter earnings and a decrease in AOCI losses of $9.5 million.
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* |
Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
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1 |
Excludes pre-tax losses on investment securities of $26.7 million, severance expense of $1.6 million, derivative credit valuation adjustment of $0.4 million, unrealized gain on equity method investments of $0.4 million, legal settlement of $0.2 million and unrealized losses on loans held for sale of $0.1 million. |
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2 |
Regulatory capital ratios as of December 31, 2024 are estimates. |
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Full Year 2024 Highlights
- 2024 net income available to common shareholders was $166.4 million, or $5.09 per diluted share; ROAA was 0.85% and ROCE was 10.36%.
- 2024 core earnings* were $183.1 million, or $5.60 per diluted share; Core ROAA* was 0.92% and Core ROCE* was 11.40%.
- Total loans and leases held for investment grew by $1.6 billion or 12.3% from December 31, 2023 to December 31, 2024.
- Total deposits increased by $926.2 million or 5.2%, from December 31, 2023 to December 31, 2024.
- Non-interest bearing demand deposits increased $1.2 billion, or 26.8%, from December 31, 2023 to December 31, 2024.
- 2024 NIM was 3.15% compared to 2023 NIM of 3.29%.
- Ratio of non-performing assets to total assets was 0.25% at December 31, 2024 compared to 0.13% at December 31, 2023.
- Allowance for credit losses on loans and leases equaled 316% of non-performing loans at December 31, 2024, compared to 499% at December 31, 2023.
- CET 1 capital ratio of 12.0%1 at December 31, 2024, compared to 12.2% at December 31, 2023.
- TCE / TA ratio* of 7.6% at December 31, 2024, compared to 7.0% at December 31, 2023.
- Book value per share and tangible book value per share* grew year over year by approximately $6.47 or 13.6%, driven by strong 2024 annual earnings combined with the decreased AOCI losses of $40.0 million over the same time period. Tangible book value per share* has grown at a 16% compound annual growth rate (CAGR) over the past 5 years, significantly higher than the regional bank peer median2 of 4%.
- Repurchased 393,303 common shares below book value at a weighted-average price of $48.36 for $19.2 million in 2024.
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* |
Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount is included at the end of this document. |
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1 |
Regulatory capital ratios as of December 31, 2024 are estimates. |
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2 |
Regional bank peers based on selected 2024 proxy peers with a reporting date on or before January 22, 2025. |
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CEO Commentary
“We are pleased to share our fourth quarter and full year 2024 results that highlight the company’s continuing incredible deposit transformation and underscore our success in growing franchise value in a competitive market environment. Exceptional client service is the cornerstone of our culture and business model, and is so important it is in our name. To measure customer satisfaction, we recently participated in an annual Net Promoter Score survey, also known as NPS. Our most recent score of 73 is well above the U.S. banking industry average of 411 and is above the scores of many other service-oriented brands across all industries. We are delighted by the positive response from our customers and the trust they place in us. This is a testament to our customer-centric mindset and commitment to service provided by our extraordinary colleagues,” said Customers Bancorp Chairman and CEO Jay Sidhu.
“In the fourth quarter, we once again brought in over $1 billion of gross deposit inflows which we utilized in part to paydown higher-cost and brokered deposits. Non-interest bearing deposits increased by $937.5 million and represented 29.7% of total deposits at December 31, 2024. These efforts, along with proactive management of the cost of our existing deposit portfolio, resulted in a 39 basis point reduction in our cost of deposits during the quarter.
“Our deposit pipelines continue to expand with a significant conversion ratio. In addition, deposit focused teams we have recruited since March 2023 managed $1.7 billion or 9% of total deposits. Enhanced by their efforts, we’ve increased commercial deposit accounts by 48% over the past two years, adding granular and sticky relationships while significantly lowering our cost of deposits, increasing our non-interest bearing deposits, and driving franchise value. During the quarter, we opportunistically repositioned a portion of the securities portfolio to improve structural liquidity, reduce asset sensitivity and benefit margin. Even with the repositioning transaction and balance sheet growth we experienced during the quarter, our TCE / TA ratio* remained roughly flat. 2024 was a year in which we made significant investments in our future. We believe the company is extremely well-positioned to continue to strengthen our deposit franchise, improve our profitability, and maintain our already strong capital ratios,” stated Jay Sidhu.
“Our Q4 2024 GAAP earnings were $23.3 million, or $0.71 per diluted share, and core earnings* were $44.2 million, or $1.36 per diluted share. Fourth quarter GAAP results include losses in connection the accretive securities portfolio repositioning. We maintain a strong liquidity position, with $9.1 billion of liquidity immediately available, which covers approximately 159% of uninsured deposits2 and our loan to deposit ratio was 78%, at December 31, 2024. We continue to focus on loan production where we have a holistic and primary relationship. Total loans and leases held for investment grew by $671.1 million which represent a 19% annualized growth rate, driven by strong commercial loan growth of $683.1 million led by growth in our existing specialized lending verticals. In 2024, total loans and leases held for investment grew by $1.6 billion which represent a 12.3% growth rate. Asset quality remains strong with our NPA ratio at just 0.25% of total assets and reserve levels are robust at 316% of total non-performing loans at the end of Q4 2024. Total net charge-offs declined by $2.4 million. Our exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio. We will remain disciplined, but opportunistic, with our balance sheet capacity to manage risk and maintain robust capital levels. Tangible Book Value per share* grew to $54.08. We believe that our unique strategy and the investments we have and are making, along with the exceptional talent in our organization, will position us for success in 2025 and beyond. We are extremely excited about the future of this company especially in what we expect to be a more favorable banking environment,” Jay Sidhu continued.
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* |
Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
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1 |
The Qualtrics U.S. Banking Relational Net Promoter® Score (NPS®) benchmark is derived from Qualtrics’ vast Customer Experience dataset. The dataset includes 2022-2023 anonymized results from 50+ U.S. banking organizations, covering 80+ separate relationship surveys, and encompassing 400,000 individual survey respondents. |
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2 |
Uninsured deposits (estimate) of $7.3 billion to be reported on the Bank’s call report, less deposits of $1.5 billion collateralized by standby letters of credit from the FHLB and from our affiliates of $176.2 million. |
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Financial Highlights
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At or Three Months Ended |
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December 31, 2024 |
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September 30, 2024 |
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Increase (Decrease) |
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Profitability Metrics: |
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Net income available for common shareholders |
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$ |
23,266 |
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$ |
42,937 |
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$ |
(19,671 |
) |
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(45.8 |
)% |
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Diluted earnings per share |
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$ |
0.71 |
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$ |
1.31 |
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$ |
(0.60 |
) |
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(45.8 |
)% |
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Core earnings* |
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$ |
44,168 |
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$ |
43,838 |
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$ |
330 |
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0.8 |
% |
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Adjusted core earnings* |
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$ |
44,168 |
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$ |
41,381 |
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$ |
2,787 |
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6.7 |
% |
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Core earnings per share* |
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$ |
1.36 |
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$ |
1.34 |
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$ |
0.02 |
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1.5 |
% |
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Adjusted core earnings per share* |
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$ |
1.36 |
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$ |
1.26 |
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$ |
0.10 |
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7.9 |
% |
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Return on average assets (“ROAA”) |
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0.48 |
% |
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0.88 |
% |
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(0.40 |
) |
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Core ROAA* |
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0.86 |
% |
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0.89 |
% |
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(0.03 |
) |
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Adjusted core ROAA* |
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0.86 |
% |
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0.85 |
% |
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0.01 |
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Return on average common equity (“ROCE”) |
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5.50 |
% |
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10.44 |
% |
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(4.94 |
) |
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Core ROCE* |
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10.44 |
% |
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10.66 |
% |
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(0.22 |
) |
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Adjusted core ROCE* |
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10.44 |
% |
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10.06 |
% |
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0.38 |
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Core pre-tax pre-provision net income* |
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$ |
84,224 |
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$ |
64,824 |
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$ |
19,400 |
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29.9 |
% |
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Adjusted core pre-tax pre-provision net income* |
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$ |
84,224 |
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$ |
61,827 |
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$ |
22,397 |
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36.2 |
% |
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Net interest margin, tax equivalent |
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3.11 |
% |
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3.06 |
% |
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0.05 |
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Yield on loans (Loan yield) |
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6.78 |
% |
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6.99 |
% |
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(0.21 |
) |
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Cost of deposits |
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3.07 |
% |
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3.46 |
% |
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(0.39 |
) |
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Efficiency ratio |
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56.86 |
% |
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62.40 |
% |
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(5.54 |
) |
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Core efficiency ratio* |
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56.12 |
% |
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61.69 |
% |
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(5.57 |
) |
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Adjusted core efficiency ratio* |
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56.12 |
% |
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63.48 |
% |
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(7.36 |
) |
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Non-interest expense to average total assets |
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1.98 |
% |
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1.95 |
% |
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0.03 |
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Core non-interest expense to average total assets* |
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1.95 |
% |
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1.94 |
% |
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0.01 |
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Adjusted core non-interest expense to average total assets* |
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1.95 |
% |
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1.99 |
% |
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(0.04 |
) |
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Balance Sheet Trends: |
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Total assets |
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$ |
22,308,241 |
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$ |
21,456,082 |
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$ |
852,159 |
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4.0 |
% |
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Total cash and investment securities |
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$ |
6,797,562 |
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$ |
6,564,528 |
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$ |
233,034 |
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3.5 |
% |
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Total loans and leases |
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$ |
14,653,556 |
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$ |
14,053,116 |
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$ |
600,440 |
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4.3 |
% |
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Non-interest bearing demand deposits |
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$ |
5,608,288 |
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$ |
4,670,809 |
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$ |
937,479 |
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20.1 |
% |
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Total deposits |
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$ |
18,846,461 |
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$ |
18,069,389 |
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$ |
777,072 |
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4.3 |
% |
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Capital Metrics: |
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Common Equity |
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$ |
1,698,889 |
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$ |
1,663,386 |
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$ |
35,503 |
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|
2.1 |
% |
|
Tangible Common Equity* |
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$ |
1,695,260 |
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$ |
1,659,757 |
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$ |
35,503 |
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2.1 |
% |
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Common Equity to Total Assets |
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|
7.6 |
% |
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7.8 |
% |
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(0.2 |
) |
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Tangible Common Equity to Tangible Assets* |
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7.6 |
% |
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7.7 |
% |
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(0.1 |
) |
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Book Value per common share |
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$ |
54.20 |
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$ |
53.07 |
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$ |
1.13 |
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|
2.1 |
% |
|
Tangible Book Value per common share* |
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$ |
54.08 |
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$ |
52.96 |
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$ |
1.12 |
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2.1 |
% |
|
Common equity Tier 1 capital ratio (1) |
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|
12.0 |
% |
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|
12.5 |
% |
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|
(0.5 |
) |
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Total risk based capital ratio (1) |
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14.8 |
% |
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|
15.4 |
% |
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|
(0.6 |
) |
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(1) Regulatory capital ratios as of December 31, 2024 are estimates. |
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* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
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Financial Highlights
|
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At or Three Months Ended |
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Twelve Months Ended |
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| (Dollars in thousands, except per share data) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
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Profitability Metrics: |
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Net income available for common shareholders |
|
$ |
23,266 |
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|
$ |
58,223 |
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|
$ |
(34,957 |
) |
|
(60.0 |
)% |
|
$ |
166,429 |
|
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$ |
235,448 |
|
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$ |
(69,019 |
) |
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(29.3 |
)% |
|
Diluted earnings per share |
|
$ |
0.71 |
|
|
$ |
1.79 |
|
|
$ |
(1.08 |
) |
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(60.3 |
)% |
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$ |
5.09 |
|
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$ |
7.32 |
|
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$ |
(2.23 |
) |
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(30.5 |
)% |
|
Core earnings* |
|
$ |
44,168 |
|
|
$ |
61,633 |
|
|
$ |
(17,465 |
) |
|
(28.3 |
)% |
|
$ |
183,105 |
|
|
$ |
248,233 |
|
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$ |
(65,128 |
) |
|
(26.2 |
)% |
|
Adjusted core earnings* |
|
$ |
44,168 |
|
|
$ |
61,633 |
|
|
$ |
(17,465 |
) |
|
(28.3 |
)% |
|
$ |
189,253 |
|
|
$ |
248,233 |
|
|
$ |
(58,980 |
) |
|
(23.8 |
)% |
|
Core earnings per share* |
|
$ |
1.36 |
|
|
$ |
1.90 |
|
|
$ |
(0.54 |
) |
|
(28.4 |
)% |
|
$ |
5.60 |
|
|
$ |
7.72 |
|
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$ |
(2.12 |
) |
|
(27.5 |
)% |
|
Adjusted core earnings per share* |
|
$ |
1.36 |
|
|
$ |
1.90 |
|
|
$ |
(0.54 |
) |
|
(28.4 |
)% |
|
$ |
5.78 |
|
|
$ |
7.72 |
|
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$ |
(1.94 |
) |
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(25.1 |
)% |
|
Return on average assets (“ROAA”) |
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|
0.48 |
% |
|
|
1.16 |
% |
|
|
(0.68 |
) |
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|
0.85 |
% |
|
|
1.16 |
% |
|
|
(0.31 |
) |
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||
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Core ROAA* |
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|
0.86 |
% |
|
|
1.22 |
% |
|
|
(0.36 |
) |
|
|
|
|
0.92 |
% |
|
|
1.22 |
% |
|
|
(0.30 |
) |
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||
|
Adjusted core ROAA* |
|
|
0.86 |
% |
|
|
1.22 |
% |
|
|
(0.36 |
) |
|
|
|
|
0.95 |
% |
|
|
1.22 |
% |
|
|
(0.27 |
) |
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||
|
Return on average common equity (“ROCE”) |
|
|
5.50 |
% |
|
|
15.93 |
% |
|
|
(10.43 |
) |
|
|
|
|
10.36 |
% |
|
|
17.33 |
% |
|
|
(6.97 |
) |
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||
|
Core ROCE* |
|
|
10.44 |
% |
|
|
16.87 |
% |
|
|
(6.43 |
) |
|
|
|
|
11.40 |
% |
|
|
18.27 |
% |
|
|
(6.87 |
) |
|
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||
|
Adjusted core ROCE* |
|
|
10.44 |
% |
|
|
16.87 |
% |
|
|
(6.43 |
) |
|
|
|
|
11.78 |
% |
|
|
18.27 |
% |
|
|
(6.49 |
) |
|
|
||
|
Core pre-tax pre-provision net income* |
|
$ |
84,224 |
|
|
$ |
101,884 |
|
|
$ |
(17,660 |
) |
|
(17.3 |
)% |
|
$ |
321,942 |
|
|
$ |
416,563 |
|
|
$ |
(94,621 |
) |
|
(22.7 |
)% |
|
Adjusted core pre-tax pre-provision net income* |
|
$ |
84,224 |
|
|
$ |
101,884 |
|
|
$ |
(17,660 |
) |
|
(17.3 |
)% |
|
$ |
330,259 |
|
|
$ |
416,563 |
|
|
$ |
(86,304 |
) |
|
(20.7 |
)% |
|
Net interest margin, tax equivalent |
|
|
3.11 |
% |
|
|
3.31 |
% |
|
|
(0.20 |
) |
|
|
|
|
3.15 |
% |
|
|
3.29 |
% |
|
|
(0.14 |
) |
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|
Yield on loans (Loan yield) |
|
|
6.78 |
% |
|
|
7.30 |
% |
|
|
(0.52 |
) |
|
|
|
|
6.99 |
% |
|
|
7.16 |
% |
|
|
(0.17 |
) |
|
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||
|
Cost of deposits |
|
|
3.07 |
% |
|
|
3.39 |
% |
|
|
(0.32 |
) |
|
|
|
|
3.34 |
% |
|
|
3.27 |
% |
|
|
0.07 |
|
|
|
||
|
Efficiency ratio |
|
|
56.86 |
% |
|
|
49.08 |
% |
|
|
7.78 |
|
|
|
|
|
56.21 |
% |
|
|
46.49 |
% |
|
|
9.72 |
|
|
|
||
|
Core efficiency ratio* |
|
|
56.12 |
% |
|
|
46.70 |
% |
|
|
9.42 |
|
|
|
|
|
56.25 |
% |
|
|
45.45 |
% |
|
|
10.80 |
|
|
|
||
|
Adjusted core efficiency ratio* |
|
|
56.12 |
% |
|
|
46.70 |
% |
|
|
9.42 |
|
|
|
|
|
55.11 |
% |
|
|
45.45 |
% |
|
|
9.66 |
|
|
|
||
|
Non-interest expense to average total assets |
|
|
1.98 |
% |
|
|
1.75 |
% |
|
|
0.23 |
|
|
|
|
|
1.95 |
% |
|
|
1.64 |
% |
|
|
0.31 |
|
|
|
||
|
Core non-interest expense to average total assets* |
|
|
1.95 |
% |
|
|
1.67 |
% |
|
|
0.28 |
|
|
|
|
|
1.92 |
% |
|
|
1.62 |
% |
|
|
0.30 |
|
|
|
||
|
Adjusted core non-interest expense to average total assets* |
|
|
1.95 |
% |
|
|
1.67 |
% |
|
|
0.28 |
|
|
|
|
|
1.88 |
% |
|
|
1.62 |
% |
|
|
0.26 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
(1) Regulatory capital ratios as of December 31, 2024 are estimates. |
||||||||||||||||||||||||||||||
|
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
||||||||||||||||||||||||||||||
Financial Highlights
|
At or Three Months Ended |
|
||||||||||||||
| (Dollars in thousands, except per share data) |
December 31, 2024 |
December 31, 2023 |
Increase (Decrease) |
||||||||||||
|
Balance Sheet Trends: |
|
|
|
|
|||||||||||
|
Total assets |
$ |
22,308,241 |
|
$ |
21,316,265 |
|
$ |
991,976 |
|
4.7 |
% |
||||
|
Total cash and investment securities |
$ |
6,797,562 |
|
$ |
7,355,156 |
|
$ |
(557,594 |
) |
(7.6 |
)% |
||||
|
Total loans and leases |
$ |
14,653,556 |
|
$ |
13,202,084 |
|
$ |
1,451,472 |
|
11.0 |
% |
||||
|
Non-interest bearing demand deposits |
$ |
5,608,288 |
|
$ |
4,422,494 |
|
$ |
1,185,794 |
|
26.8 |
% |
||||
|
Total deposits |
$ |
18,846,461 |
|
$ |
17,920,236 |
|
$ |
926,225 |
|
5.2 |
% |
||||
|
Capital Metrics: |
|
|
|
|
|||||||||||
|
Common Equity |
$ |
1,698,889 |
|
$ |
1,500,600 |
|
$ |
198,289 |
|
13.2 |
% |
||||
|
Tangible Common Equity* |
$ |
1,695,260 |
|
$ |
1,496,971 |
|
$ |
198,289 |
|
13.2 |
% |
||||
|
Common Equity to Total Assets |
|
7.6 |
% |
|
7.0 |
% |
|
0.6 |
|
|
|||||
|
Tangible Common Equity to Tangible Assets* |
|
7.6 |
% |
|
7.0 |
% |
|
0.6 |
|
|
|||||
|
Book Value per common share |
$ |
54.20 |
|
$ |
47.73 |
|
$ |
6.47 |
|
13.6 |
% |
||||
|
Tangible Book Value per common share* |
$ |
54.08 |
|
$ |
47.61 |
|
$ |
6.47 |
|
13.6 |
% |
||||
|
Common equity Tier 1 capital ratio (1) |
|
12.0 |
% |
|
12.2 |
% |
|
(0.2 |
) |
|
|||||
|
Total risk based capital ratio (1) |
|
14.8 |
% |
|
15.3 |
% |
|
(0.5 |
) |
|
|||||
|
|
|
|
|
|
|||||||||||
|
(1) Regulatory capital ratios as of December 31, 2024 are estimates. |
|||||||||||||||
|
* Non-GAAP measure. Customers’ reasons for the use of the non-GAAP measure and a detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. |
|||||||||||||||
Key Balance Sheet Trends
Loans and Leases
The following table presents the composition of total loans and leases as of the dates indicated:
|
(Dollars in thousands) |
December 31, 2024 |
|
% of Total |
|
September 30, 2024 |
|
% of Total |
|
December 31, 2023 |
|
% of Total |
|||||||
|
Loans and Leases Held for Investment |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Commercial: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Commercial & industrial: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Specialized lending |
$ |
5,842,420 |
|
40.4 |
% |
|
$ |
5,468,507 |
|
39.7 |
% |
|
$ |
5,006,693 |
|
38.9 |
% |
|
|
Other commercial & industrial (1) |
|
1,062,631 |
|
7.4 |
|
|
|
1,087,222 |
|
7.9 |
|
|
|
1,162,317 |
|
9.1 |
|
|
|
Mortgage finance |
|
1,440,847 |
|
10.0 |
|
|
|
1,367,617 |
|
9.9 |
|
|
|
1,014,742 |
|
7.9 |
|
|
|
Multifamily |
|
2,252,246 |
|
15.6 |
|
|
|
2,115,978 |
|
15.4 |
|
|
|
2,138,622 |
|
16.6 |
|
|
|
Commercial real estate owner occupied |
|
1,100,944 |
|
7.6 |
|
|
|
981,904 |
|
7.1 |
|
|
|
797,319 |
|
6.2 |
|
|
|
Commercial real estate non-owner occupied |
|
1,359,130 |
|
9.4 |
|
|
|
1,326,591 |
|
9.6 |
|
|
|
1,177,650 |
|
9.2 |
|
|
|
Construction |
|
147,209 |
|
1.0 |
|
|
|
174,509 |
|
1.3 |
|
|
|
166,393 |
|
1.2 |
|
|
|
Total commercial loans and leases |
|
13,205,427 |
|
91.4 |
|
|
|
12,522,328 |
|
90.9 |
|
|
|
11,463,736 |
|
89.1 |
|
|
|
Consumer: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential |
|
496,559 |
|
3.4 |
|
|
|
500,786 |
|
3.6 |
|
|
|
484,435 |
|
3.8 |
|
|
|
Manufactured housing |
|
33,123 |
|
0.3 |
|
|
|
34,481 |
|
0.3 |
|
|
|
38,670 |
|
0.3 |
|
|
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Personal |
|
463,854 |
|
3.2 |
|
|
|
453,739 |
|
3.3 |
|
|
|
555,533 |
|
4.3 |
|
|
|
Other |
|
249,799 |
|
1.7 |
|
|
|
266,362 |
|
1.9 |
|
|
|
319,393 |
|
2.5 |
|
|
|
Total installment loans |
|
713,653 |
|
4.9 |
|
|
|
720,101 |
|
5.2 |
|
|
|
874,926 |
|
6.8 |
|
|
|
Total consumer loans |
|
1,243,335 |
|
8.6 |
|
|
|
1,255,368 |
|
9.1 |
|
|
|
1,398,031 |
|
10.9 |
|
|
|
Total loans and leases held for investment |
$ |
14,448,762 |
|
100.0 |
% |
|
$ |
13,777,696 |
|
100.0 |
% |
|
$ |
12,861,767 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Loans Held for Sale |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Residential |
$ |
1,836 |
|
0.9 |
% |
|
$ |
2,523 |
|
0.9 |
% |
|
$ |
1,215 |
|
0.3 |
% |
|
|
Installment: |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Personal |
|
40,903 |
|
20.0 |
|
|
|
55,799 |
|
20.3 |
|
|
|
151,040 |
|
44.4 |
|
|
|
Other |
|
162,055 |
|
79.1 |
|
|
|
217,098 |
|
78.8 |
|
|
|
188,062 |
|
55.3 |
|
|
|
Total installment loans |
|
202,958 |
|
99.1 |
|
|
|
272,897 |
|
99.1 |
|
|
|
339,102 |
|
99.7 |
|
|
|
Total loans held for sale |
$ |
204,794 |
|
100.0 |
% |
|
$ |
275,420 |
|
100.0 |
% |
|
$ |
340,317 |
|
100.0 |
% |
|
|
Total loans and leases portfolio |
$ |
14,653,556 |
|
|
|
$ |
14,053,116 |
|
|
|
$ |
13,202,084 |
|
|
||||
|
(1) |
Includes PPP loans of $22.8 million, $30.5 million and $74.7 million as of December 31, 2024, September 30, 2024 and December 31, 2023, respectively. |
Loans and Leases Held for Investment
Loans and leases held for investment were $14.4 billion at December 31, 2024, up $671.1 million, or 4.9%, from September 30, 2024. Specialized lending increased by $373.9 million, or 6.8% quarter-over-quarter, to $5.8 billion. Multifamily loans increased by $136.3 million, or 6.4% to $2.3 billion. Owner-occupied commercial real estate loans increased by $119.0 million, or 12.1% to $1.1 billion. Mortgage finance loans increased by $73.2 million, or 5.4% to $1.4 billion. Non-owner occupied commercial real estate loans increased by $32.5 million, or 2.5% to $1.4 billion. These increases were partially offset by a decrease in other commercial and industrial loans of $24.6 million, or 2.3%, to $1.1 billion.
Loans and leases held for investment of $14.4 billion at December 31, 2024 were up $1.6 billion, or 12.3%, year-over-year. Specialized lending increased by $835.7 million, or 16.7% year-over-year. Mortgage finance loans increased by $426.1 million. Owner-occupied commercial real estate loans increased by $303.6 million. Non-owner occupied commercial real estate loans increased by $181.5 million. Multifamily loans increased by $113.6 million. These increases were partially offset by decreases in consumer installment loans of $161.3 million and other commercial and industrial loans of $99.7 million.
Loans Held for Sale
Loans held for sale decreased $70.6 million quarter-over-quarter, and were $204.8 million at December 31, 2024.
Allowance for Credit Losses on Loans and Leases
The following table presents the allowance for credit losses on loans and leases as of the dates and for the periods presented:
|
|
At or Three Months Ended |
|
|
At or Three Months Ended |
|
|||||||||||||||||||
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||||||
|
Allowance for credit losses on loans and leases |
$ |
136,775 |
|
|
$ |
133,158 |
|
|
$ |
3,617 |
|
|
$ |
136,775 |
|
|
$ |
135,311 |
|
|
$ |
1,464 |
|
|
|
Provision (benefit) for credit losses on loans and leases |
$ |
18,229 |
|
|
$ |
17,766 |
|
|
$ |
463 |
|
|
$ |
18,229 |
|
|
$ |
13,420 |
|
|
$ |
4,809 |
|
|
|
Net charge-offs from loans held for investment |
$ |
14,612 |
|
|
$ |
17,044 |
|
|
$ |
(2,432 |
) |
|
$ |
14,612 |
|
|
$ |
17,322 |
|
|
$ |
(2,710 |
) |
|
|
Annualized net charge-offs to average loans and leases |
|
0.41 |
% |
|
|
0.50 |
% |
|
|
|
|
0.41 |
% |
|
|
0.51 |
% |
|
|
|||||
|
Coverage of credit loss reserves for loans and leases held for investment |
|
1.04 |
% |
|
|
1.06 |
% |
|
|
|
|
1.04 |
% |
|
|
1.13 |
% |
|
|
|||||
Net charge-offs decreased with $14.6 million in Q4 2024, compared to $17.0 million in Q3 2024 and $17.3 million in Q4 2023.
Provision (benefit) for Credit Losses
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|||||||||||||||||||
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||||||
|
Provision (benefit) for credit losses on loans and leases |
$ |
18,229 |
|
|
$ |
17,766 |
|
|
$ |
463 |
|
|
$ |
18,229 |
|
|
$ |
13,420 |
|
|
$ |
4,809 |
|
|
|
Provision (benefit) for credit losses on available for sale debt securities |
|
2,965 |
|
|
|
(700 |
) |
|
|
3,665 |
|
|
|
2,965 |
|
|
|
103 |
|
|
|
2,862 |
|
|
|
Provision for credit losses |
|
21,194 |
|
|
|
17,066 |
|
|
|
4,128 |
|
|
|
21,194 |
|
|
|
13,523 |
|
|
|
7,671 |
|
|
|
Provision (benefit) for credit losses on unfunded commitments |
|
(664 |
) |
|
|
642 |
|
|
|
(1,306 |
) |
|
|
(664 |
) |
|
|
(136 |
) |
|
|
(528 |
) |
|
|
Total provision for credit losses |
$ |
20,530 |
|
|
$ |
17,708 |
|
|
$ |
2,822 |
|
|
$ |
20,530 |
|
|
$ |
13,387 |
|
|
$ |
7,143 |
|
|
The provision for credit losses on loans and leases in Q4 2024 was $18.2 million, compared to $17.8 million in Q3 2024. The higher provision in Q4 2024 was primarily due to slight deterioration in macroeconomic forecasts.
The provision for credit losses on available for sale investment securities in Q4 2024 was a provision of $3.0 million, compared to a benefit to provision of $0.7 million in Q3 2024.
The provision for credit losses on loans and leases in Q4 2024 was $18.2 million, compared to $13.4 million in Q4 2023. The higher provision in Q4 2024 compared to the year ago period was primarily due to higher balances in commercial and industrial loan balances held for investment, partially offset by improvements in macroeconomic forecasts and lower balances in consumer installment loans held for investment.
The provision for credit losses on available for sale investment securities in Q4 2024 was a provision of $3.0 million compared to $0.1 million in Q4 2023.
Asset Quality
The following table presents asset quality metrics as of the dates indicated:
|
(Dollars in thousands) |
December 31, 2024 |
|
September 30, 2024 |
|
Increase (Decrease) |
|
December 31, 2024 |
|
December 31, 2023 |
|
Increase (Decrease) |
|||||||||||||
|
Non-performing assets (“NPAs”): |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Nonaccrual / non-performing loans (“NPLs”) |
$ |
43,275 |
|
|
$ |
47,326 |
|
|
$ |
(4,051 |
) |
|
$ |
43,275 |
|
|
$ |
27,110 |
|
|
$ |
16,165 |
|
|
|
Non-performing assets |
$ |
55,807 |
|
|
$ |
47,326 |
|
|
$ |
8,481 |
|
|
$ |
55,807 |
|
|
$ |
27,209 |
|
|
$ |
28,598 |
|
|
|
NPLs to total loans and leases |
|
0.30 |
% |
|
|
0.34 |
% |
|
|
|
|
0.30 |
% |
|
|
0.21 |
% |
|
|
|||||
|
Reserves to NPLs |
|
316.06 |
% |
|
|
281.36 |
% |
|
|
|
|
316.06 |
% |
|
|
499.12 |
% |
|
|
|||||
|
NPAs to total assets |
|
0.25 |
% |
|
|
0.22 |
% |
|
|
|
|
0.25 |
% |
|
|
0.13 |
% |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Loans and leases (1) risk ratings: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Commercial loans and leases |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Pass |
$ |
11,403,930 |
|
|
$ |
10,844,500 |
|
|
$ |
559,430 |
|
|
$ |
11,403,930 |
|
|
$ |
9,955,243 |
|
|
$ |
1,448,687 |
|
|
|
Special Mention |
|
175,055 |
|
|
|
178,026 |
|
|
|
(2,971 |
) |
|
|
175,055 |
|
|
|
196,182 |
|
|
|
(21,127 |
) |
|
|
Substandard |
|
282,563 |
|
|
|
218,921 |
|
|
|
63,642 |
|
|
|
282,563 |
|
|
|
339,664 |
|
|
|
(57,101 |
) |
|
|
Total commercial loans and leases |
|
11,861,548 |
|
|
|
11,241,447 |
|
|
|
620,101 |
|
|
|
11,861,548 |
|
|
|
10,491,089 |
|
|
|
1,370,459 |
|
|
|
Consumer loans |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Performing |
|
1,227,359 |
|
|
|
1,240,581 |
|
|
|
(13,222 |
) |
|
|
1,227,359 |
|
|
|
1,379,603 |
|
|
|
(152,244 |
) |
|
|
Non-performing |
|
15,976 |
|
|
|
14,787 |
|
|
|
1,189 |
|
|
|
15,976 |
|
|
|
18,428 |
|
|
|
(2,452 |
) |
|
|
Total consumer loans |
|
1,243,335 |
|
|
|
1,255,368 |
|
|
|
(12,033 |
) |
|
|
1,243,335 |
|
|
|
1,398,031 |
|
|
|
(154,696 |
) |
|
|
Loans and leases receivable (1) |
$ |
13,104,883 |
|
|
$ |
12,496,815 |
|
|
$ |
608,068 |
|
|
$ |
13,104,883 |
|
|
$ |
11,889,120 |
|
|
$ |
1,215,763 |
|
|
Contacts
Jordan Baucum, Head of Corporate Communications 951-608-8314
