SOURCE: Customers Bancorp, Inc.

Customers Bancorp, Inc.

October 21, 2014 06:30 ET

Customers Bancorp Reports Continued Strong Earnings and Organic Growth

WYOMISSING, PA--(Marketwired - October 21, 2014) -

  • 3Q 2014 Net Income up 41% over Q3 2013 and up 14% over Q2 2014
  • 3Q 2014 EPS up 40% over Q3 2013 and up 14% over Q2 2014
  • 3Q 2014 Efficiency Ratio of 54.5% and Return on Equity of 11.0%
  • YTD through September 2014 Net Income up 26.8% over same period last year

Customers Bancorp, Inc. (NASDAQ: CUBI), the parent company of Customers Bank (collectively "Customers"), reported earnings of $11.7 million for the quarter ended September 30, 2014 ("Q3 2014") compared to earnings of $8.3 million for the quarter ended September 30, 2013 ("Q3 2013"), an increase of 41.0%, and earnings of $10.2 million for the quarter ended June 30, 2014 ("Q2 2014"), an increase of 14.0%. Q3 2014 fully diluted earnings per share was $0.42, compared to $0.30 in Q3 2013 and $0.37 in Q2 2014. Average fully diluted shares for Q3 2014 were 28.0 million compared to average fully diluted shares for Q3 2013 of 27.9 million. Customers also reported earnings of $30.0 million year-to-date through September 30, 2014 compared to earnings of $23.7 million in the first nine months of 2013, an increase of 26.8%.

Customers' increase in earnings has resulted principally from higher interest income on loans and higher non-interest income. Since December 31, 2013 Customers' loan balances (including loans held for sale) have grown $2.3 billion, a 71% increase in loan balances for the nine months ended September 30, 2014. During Q3 2014 loan balances grew $800 million to $5.5 billion, an increase of 17% over Q2 2014. During Q3 2014 multi-family loans increased $357 million, warehouse loans were up $187 million, and commercial loans (including commercial real estate) were up $256 million over Q2 2014. Q3 2014 net interest income was up 47.9% over Q3 2013. Q3 2014 non-interest income was up 9.5% over Q3 2013.

Jay Sidhu, Chairman and CEO of Customers reflected, "We are extremely pleased to report very strong core earnings growth during Q3 2014 and the first nine months of 2014. Our growth results from execution of our strategy to diversify and grow our loan and deposit portfolios to fully utilize the capital provided by our investors. We believe we are on track with our plans and remain confident we will meet or exceed the earnings guidance we have provided for 2014 and 2015. We again state our goals of reaching about a 1.0% return on assets and a 12.0% return on equity within two to three years. We expect that we will achieve these goals while reducing the rate of Customers' asset growth to a level supported by growth in retained earnings."

Other financial highlights for Q3 2014 included:

  • Net interest income grew by $13.0 million to $40.2 million in Q3 2014 compared to Q3 2013 (47.9% year over year growth), and by $3.3 million compared to Q2 2014 (8.9% consecutive quarter growth), principally due to the growth in the loan portfolio. Net interest margin was 2.79% for Q3 2014 compared to 2.94% for Q2 2014, with approximately 13 basis points of the margin compression resulting from the issuance of $110 million of subordinated debt and $25 million of holding company senior notes in late Q2 2014, and the remainder of the decrease resulting from continued lengthening of liability maturities and the growing investment in the very strong credit quality, but lower margin, multi-family loan portfolio.
  • Q3 2014 provision for loan losses of $5.0 million, of which $1.8 million was due to increasing our estimates for amounts to be received from liquidation of FDIC covered loans (which resulted in Customers writing down the estimated FDIC loss sharing receivable through the provision for loan losses).
  • Q3 2014 non-interest expense was $24.7 million, an increase of $6.3 million from Q3 2013, and a decrease of $0.5 million from Q2 2014 non-interest expense of $25.2 million. The Q3 2014 non-interest expense decrease over the preceding quarter ended a trend of quarterly non-interest expense increases. The Q3 2014 efficiency ratio was 54.5%, down from the Q3 2013 efficiency ratio of 57.6% and the Q2 2014 efficiency ratio of 58.0%.
  • The Q3 2014 income tax expense rate was 25.2% of pre-tax income, and is expected to be approximately 33% for the year. The lower estimated rate for 2014 compared to the 2013 rate of 35% resulted from a return to provision and deferred tax analysis performed during third quarter 2014.
  • The increase in Q3 2014 net income resulting from the $1.3 million deferred tax asset adjustment was largely offset by the provision charge of $1.8 million to write-down the FDIC indemnification asset. 
  • Non-performing loans not covered by FDIC loss share agreements were only $9.9 million at September 30, 2014, a decrease of $3.6 million (26.8%) from December 31, 2013. Non-performing non-covered loans were 0.18% of non-covered loans outstanding at September 30, 2014 compared to 0.43% as of December 31, 2013.
  • The allowance for loan losses totaled $31.1 million as of September 30, 2014. The September 30, 2014 allowance for loan losses was 223% of total non-performing loans compared to 125% as of December 31, 2013. 
  • Capital ratios continue to exceed the "well capitalized" thresholds, although the ratios have decreased due to the increase in assets.
  • Customers' tangible book value per share increased to $15.79 at September 30, 2014 compared to $14.18 at September 30, 2013 and $15.34 at June 30, 2014, an increase of 11.4% year-over-year and 2.9% sequentially.

"Customers is on target to meet or exceed the earnings guidance we have provided for 2014 and 2015. To manage capital, we expect to slow our asset growth going forward to levels that are supported by growth in retained earnings. Customers intends to continue selling a portion of its multi-family loan portfolio for the foreseeable future while adding commercial and industrial and other commercial loans to our balance sheet," stated Robert Wahlman, Chief Financial Officer of Customers Bancorp, Inc. 

         
EARNINGS SUMMARY - UNAUDITED        
         
(Dollars in thousands, except per-share data)        
 Q3  Q2  Q3 
 2014  2014  2013 
            
Net income available to common shareholders$11,662  $10,233  $8,268 
Basic earnings per share ("EPS") (1)$0.44  $0.38  $0.30 
Diluted EPS (1)$0.42  $0.37  $0.30 
Average shares outstanding - diluted (1) 27,984,840   27,982,404   27,870,883 
            
Return on average assets 0.8%  0.8%  0.9%
Return on average common equity 11.0%  10.0%  8.6%
Net interest margin, tax equivalent 2.79%  2.94%  3.11%
Non performing loans to total loans (including held for sale and FDIC covered loans) 0.25%  0.40%  0.70%
Reserves to non performing loans (NPL's) 246.4%  184.2%  157.6%
            
Tangible book value per common share (period end) (1) (2)$15.79  $15.34  $14.18 
Period end stock price (1)$17.96  $20.01  $14.64 
            
(1) Share and per share amounts have been adjusted to give effect to the 10% stock dividend declared on May 15, 2014 and issued on June 30, 2014. 
(2) Calculated as total equity less goodwill and other intangibles divided by common shares outstanding at period end. 
  

Net Income, Earnings Per Share and Tangible Book Value

Q3 2014 net income of $11.7 million was up $3.4 million, or 41.0%, from Q3 2013. Q3 2014 diluted earnings per share was $0.42 with 28.0 million diluted shares, compared to Q3 2013 earnings of $8.3 million and diluted earnings per share of $0.30 with 27.9 million diluted shares. Customers' tangible book value per share increased to $15.79 as of September 30, 2014 compared to $14.18 as of September 30, 2013, an increase of 11.4%. The increase in net income in Q3 2014 compared to Q3 2013 was primarily due to increased net interest income, fueled by strong loan growth while maintaining strong asset quality and growing deposits. The increased tangible book value reflects Customers' strategic commitment to consistently maintain and grow tangible book value per share through growth in earnings with the expectation that it will eventually result in superior shareholder value creation.

Net Interest Margin

The net interest margin decreased 32 basis points from Q3 2013 and decreased 15 basis points from Q2 2014. Approximately 13 basis points of the Q3 2014 net interest margin decrease relative to Q3 2013 and Q2 2014 resulted from the issuance of $110 million of subordinated debt and $25 million of holding company senior notes in late Q2 2014, and the remainder of the decrease resulted principally from lengthening the liability maturities and the growing investment in the very strong credit quality, but lower net interest margin, multi-family loan portfolio.

Non-Interest Income

Q3 2014 non-interest income of $5.1 million was up $0.4 million compared to $4.7 million in Q3 2013, and down $1.8 million compared to $6.9 million in Q2 2014. The $0.4 million increase in Q3 2014 non-interest income compared to Q3 2013 non-interest income resulted primarily from a gain realized from the sale of multi-family loans during Q3 2014. The Q3 2014 non-interest income decrease compared to Q2 2014 resulted from lower mortgage banking income (down $1.3 million) and lower gains on sales of investment securities (down $0.4 million).

Non-Interest Expense

Operating expenses in Q3 2014 of $24.7 million were up $6.3 million (34.5%) over Q3 2013, but decreased $0.5 million compared to Q2 2014 operating expenses of $25.2 million. Q3 2014 operating expenses were up compared to Q3 2013 because of a greater level of business activities as Customers grew its deposits, multi-family, commercial and industrial and commercial real estate loan portfolios, and recruited larger lending, support, risk management, and compliance teams over the past year. The decrease during Q3 2014 resulted from declines in advertising, professional services and miscellaneous other expenses and ended a trend of quarterly non-interest expense increases.

Provision for Loan Losses and Asset Quality

The Q3 2014 provision for loan losses of $5.0 million was principally due to the loans held for investment growth during Q3 2014. In addition, $1.8 million of the Q3 2014 provision expense resulted from increasing our estimates of cash receipts from borrowers or liquidation of collateral related to loans covered by the FDIC loss share agreements. An increase in estimated cash flows results in lower losses on FDIC covered loans, a lower level of claims and reimbursements by the FDIC, and the write-down of the FDIC loss sharing receivable. The Q3 2013 provision for loan losses was $0.8 million.1

Customers separates its loan portfolio into "covered" and "non-covered" loans for purposes of analyzing and managing asset quality. Covered loans are those loans that are covered by FDIC purchase and assumption, or loss sharing, agreements, and for which Customers is reimbursed 80% of allowable incurred losses. Covered loans totaled $44.5 million at September 30, 2014, $66.7 million at December 31, 2013, and $81.3 million at September 30, 2013. Non-accrual covered loans totaled $4.1 million at September 30, 2014, $5.6 million at December 31, 2013 and $5.8 million at September 30, 2013. Covered real estate owned totaled $10.2 million at September 30, 2014, $7.0 million at December 31, 2013 and $7.8 million at September 30, 2013.

Non-covered loans are all loans not covered by the FDIC loss share agreements. Non-covered loans include loans accounted for as held for sale as well as loans accounted for as held for investment. Non-covered loans totaled $5.5 billion at September 30, 2014, $3.1 billion at December 31, 2013, and $2.9 billion at September 30, 2013. Non-accrual non-covered loans totaled $9.9 million at September 30, 2014 (0.18% of total non-covered loans), $13.5 million (0.43% of total non-covered loans) at December 31, 2013 and $14.9 million (0.51% of total non-covered loans) at September 30, 2013. Non-covered loans 30 to 89 days delinquent at September 30, 2014 totaled $8.2 million (0.15% of non-covered loans.)

1 Beginning in Q4 2013, the provision for loan losses is reported net of the amount of estimated credit losses on covered loans to be recovered from the Federal Deposit Insurance Corporation (the "FDIC") pursuant to specific purchase and assumption, or loss sharing, agreements. Q3 2013 amounts have been reclassified to be consistent with the current presentation. Previously, changes in the amount recoverable from the FDIC had been reported as a separate amount in non-interest income.

Strong Core Deposit Growth

Total deposits were $4.3 billion at September 30, 2014, a growth of approximately $1.3 billion or 45% from December 31, 2013. Non-interest bearing demand deposits were almost $700 million, approximately 16% of total deposits. Money market deposits were $2 billion at September 30, 2014 with CDs being only 35% of total deposits. Average deposits per branch exceeded $200 million for the first time. This performance and resulting low efficiency ratio gives Customers an opportunity to focus on strong credit quality niches and not stretch for higher risk, higher rate loans and still achieve above average profitability with lower than average margin.

Diversified Loan Portfolio

Customers is a Business Bank that principally focuses on four lending activities; commercial and industrial loans to privately held businesses, multi-family loans principally to high net worth families in the New York City area, selected commercial real estate loans, and banking services to privately held mortgage companies. Commercial and industrial loans, including owner occupied commercial real estate loans were $1.1 billion at September 30, 2014, an increase of 44% from December 31, 2013. Multi-family loans were $2.2 billion, mortgage warehouse loans were $1.3 billion while non-owner occupied commercial real estate loans were only $0.5 billion, respectively, at September 30, 2014.

Looking Ahead

"We are very confident and excited about our future. We intend to continue focusing on our core business at Customers, growing commercial loans and core deposits. Over the next few months, we intend to gradually launch Bank Mobile, America's first mobile platform based full service bank, that intends to serve millennials, middle class American families and the underserved consumers throughout America. These segments of the consumer market paid last year $39 billion in overdraft and check cashing fees. This amount is two times what America spends on breast cancer and lung cancer combined each year. We intend to introduce fee free banking to these segments of the US population through Bank mobile," Mr. Sidhu said. "Customers' stock is currently trading at approximately 11.8 times estimated 2014 earnings and approximately 10 times estimated 2015 earnings. Price to tangible book value is approximately 1.0 times estimated average 2015 book value. Previously Customers disclosed 2014 and 2015 earnings per share estimates of $1.49 - $1.53 and $1.75 - $1.80, respectively," Mr. Sidhu concluded. 

Conference Call

Date: October 21, 2014

Time: 10:00 am ET

US Dial-in: 888-430-8705

International Dial-in: 719-325-2144

Conference ID: 3667557

Webcast: http://public.viavid.com/index.php?id=111345

Institutional Background

Customers Bancorp, Inc. is a bank holding company located in Wyomissing, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank. Customers Bank is a community-based, full-service bank with assets of approximately $6.5 billion. A member of the Federal Reserve System and deposits insured by the Federal Deposit Insurance Corporation ("FDIC"), Customers Bank provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, New York, Rhode Island, Massachusetts, and New Jersey. Committed to fostering customer loyalty, Customers Bank uses a High Tech/High Touch strategy that includes use of industry-leading technology to provide customers better access to their money, as well as a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.

Customers Bancorp, Inc. is listed on the NASDAQ stock market under the symbol CUBI. Additional information about Customers Bancorp, Inc. can be found on the company's website, www.customersbank.com.

"Safe Harbor" Statement

In addition to historical information, this press release may contain "forward-looking statements" which are made in good faith by Customers Bancorp, Inc., pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements with respect to Customers Bancorp, Inc.'s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words "may," "could," "should," "pro forma," "looking forward," "would," "believe," "expect," "anticipate," "estimate," "intend," "plan," or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.'s control). Numerous competitive, economic, regulatory, legal and technological factors, among others, could cause Customers Bancorp, Inc.'s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.'s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequently filed quarterly reports on Form 10-Q. Customers Bancorp, Inc. does not undertake to update any forward looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank.

 
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED - UNAUDITED
(Dollars in thousands, except per share data)
   
 Q3Q2Q3 
 201420142013 
Interest income:       
 Loans receivable, including fees$39,640$35,220$22,485 
 Loans held for sale 8,503 6,715 9,495 
 Investment securities 2,361 2,543 1,423 
 Other 794 614 342 
  Total interest income 51,298 45,092 33,745 
        
Interest expense:       
 Deposits 6,179 5,727 5,470 
 Other borrowings 1,494 1,184 789 
 FHLB Advances 1,711 1,141 272 
 Subordinated debt 1,700 110 16 
  Total interest expense 11,084 8,162 6,547 
   Net interest income 40,214 36,930 27,198 
 Provision for loan losses 5,035 2,886 750 
   Net interest income after provision for loan losses 35,179 34,044 26,448 
        
 Non-interest income:       
 Mortgage warehouse transactional fees 2,154 2,215 3,090 
 Mortgage loan and banking income 212 1,554 50 
 Bank-owned life insurance income 976 836 615 
 Gain/(loss) on sale of loans 695 572 (6)
 Gain on sale of investment securities - 359 - 
 Deposit fees 192 212 198 
 Other 873 1,163 714 
   Total non-interest income 5,102 6,911 4,661 
        
 Non-interest expense:       
 Salaries and employee benefits 12,070 11,591 8,963 
 FDIC assessments, taxes, and regulatory fees 3,320 3,078 1,105 
 Occupancy 2,931 2,595 2,289 
 Professional services 1,671 1,881 1,191 
 Technology, communication and bank operations 1,485 1,621 1,121 
 Other real estate owned expense 603 890 401 
 Loan workout 388 477 928 
 Advertising and promotion 261 428 450 
 Other 1,950 2,644 1,899 
  Total non-interest expense 24,679 25,205 18,347 
 Income before tax expense 15,602 15,750 12,762 
  Income tax expense 3,940 5,517 4,494 
   Net income$11,662$10,233$8,268 
        
 Basic earnings per share (1)$0.44$0.38$0.30 
 Diluted earnings per share (1) 0.42 0.37 0.30 
        
 (1) Earnings per share amounts have been adjusted to give effect to the 10% common stock dividend declared on May 15, 2014 and issued on June 30, 2014.
 
 
   
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE NINE MONTHS ENDED - UNAUDITED
(Dollars in thousands, except per share data)
  
 September 30,
 20142013
Interest income:    
 Loans receivable, including fees$103,216$57,780
 Loans held for sale 20,301 31,536
 Investment securities 7,944 3,334
 Other 1,805 789
  Total interest income 133,266 93,439
     
Interest expense:    
 Deposits 17,321 15,742
 Other borrowings 3,834 868
 FHLB Advances 3,348 840
 Subordinated debt 1,826 49
  Total interest expense 26,329 17,499
   Net interest income 106,937 75,940
Provision for loan losses 12,288 2,748
   Net interest income after provision for loan losses 94,649 73,192
     
 Non-interest income:    
 Mortgage warehouse transactional fees 6,128 10,626
 Mortgage loan and banking income 2,175 50
 Bank-owned life insurance income 2,646 1,658
 Gain on sale of loans 1,266 402
 Gain on sale of investment securities 3,191 -
 Deposit fees 618 487
 Other 3,298 1,784
  Total non-interest income 19,322 15,007
     
 Non-interest expense:    
 Salaries and employee benefits 33,012 24,868
 FDIC assessments, taxes, and regulatory fees 8,529 3,510
 Occupancy 8,162 6,309
 Professional services 5,834 3,149
 Technology, communication and bank operations 4,666 3,023
 Other real estate owned expense 1,845 962
 Loan workout 1,306 1,674
 Advertising and promotion 1,104 973
 Loss contingency - 2,000
 Other 6,592 5,254
  Total non-interest expense 71,050 51,722
 Income before tax expense 42,921 36,477
  Income tax expense 12,885 12,794
   Net income$30,036$23,683
     
 Basic earnings per share (1)$1.12 1.00
 Diluted earnings per share (1) 1.08 0.98
     
 (1) Earnings per share amounts have been adjusted to give effect to the 10% common stock dividend declared on May 15, 2014 and issued on June 30, 2014.
 
 
       
CONSOLIDATED BALANCE SHEET - UNAUDITED      
(Dollars in thousands)      
       
 September 30, December 31, September 30, 
 2014 2013 2013 
ASSETS         
Cash and due from banks$89,728 $60,709 $88,539 
Interest-earning deposits 241,578  172,359  167,114 
  Cash and cash equivalents 331,306  233,068  255,653 
Investment securities available for sale, at fair value 409,303  497,573  497,566 
Loans held for sale 1,395,720  747,593  917,939 
Loans receivable not covered under Loss Sharing Agreements with the FDIC 4,065,672  2,398,353  2,018,532 
Loans receivable covered under Loss Sharing Agreements with the FDIC 44,463  66,725  81,255 
Allowance for loan losses (31,083) (23,998) (26,800)
  Total loans receivable, net of allowance for loan losses 4,079,052  2,441,080  2,072,987 
FHLB, Federal Reserve Bank, and other restricted stock 85,732  43,514  19,113 
Accrued interest receivable 13,744  8,362  7,866 
FDIC loss sharing receivable 5,995  10,046  11,038 
Bank premises and equipment, net 11,147  11,625  11,055 
Bank-owned life insurance 137,575  104,433  85,991 
Other real estate owned 17,755  12,265  13,601 
Goodwill and other intangibles 3,667  3,676  3,680 
Other assets 41,439  39,938  28,623 
  Total assets$6,532,435 $4,153,173 $3,925,112 
          
LIABILITIES AND SHAREHOLDERS' EQUITY         
Demand, non-interest bearing$697,415 $478,103 $671,218 
Interest-bearing deposits 3,586,725  2,481,819  2,572,102 
 Total deposits 4,284,140  2,959,922  3,243,320 
Federal funds purchased -  13,000  - 
FHLB advances 1,594,500  706,500  172,000 
Other borrowings 88,250  63,250  63,250 
Subordinated debt 112,000  2,000  2,000 
Accrued interest payable and other liabilities 27,746  21,878  55,657 
  Total liabilities 6,106,636  3,766,550  3,536,227 
          
Common stock 27,267  24,756  24,742 
Additional paid in capital 354,561  307,231  306,183 
Retained earnings 55,245  71,008  61,997 
Accumulated other comprehensive loss (3,020) (8,118) (3,537)
Treasury stock, at cost (8,254) (8,254) (500)
  Total shareholders' equity 425,799  386,623  388,885 
   Total liabilities & shareholders' equity$6,532,435 $4,153,173 $3,925,112 
 
 
  
Average Balance Sheet / Net Interest Margin (Unaudited) 
(Dollars in thousands) 
 Three Months Ended September 30, 
 2014 2013 
 Average BalanceAverage yield or cost (%) Average BalanceAverage yield or cost (%) 
Assets        
Interest earning deposits$244,0130.25%$230,9920.26%
Investment securities 421,2132.24% 235,9272.41%
Loans held for sale 1,014,0683.33% 985,0503.82%
Loans held for investment 3,977,4073.96% 1,999,8464.48%
Other interest-earning assets 83,3133.05% 22,8053.37%
Total interest earning assets 5,740,0143.55% 3,474,6203.86%
Non-interest earning assets 238,223   158,661  
Total assets$5,978,237  $3,633,281  
         
Liabilities        
Total interest bearing deposits (1) 3,268,5020.75% 2,561,8550.85%
Borrowings 1,674,5761.17% 244,1491.76%
Total interest bearing liabilities 4,943,0780.89% 2,806,0040.93%
Non-interest bearing deposits (1) 596,497   439,276  
Total deposits & borrowings 5,539,5750.79% 3,245,2800.80%
Other non-interest bearing liabilities 16,596   4,993  
Total liabilities 5,556,171   3,250,273  
Shareholders' equity 422,066   383,008  
Total liabilities and shareholders' equity$5,978,237  $3,633,281  
         
Net interest margin  2.78%  3.11%
Net interest margin tax equivalent  2.79%  3.11%
         
(1) Total costs of deposits (including interest bearing and non-interest bearing) were 0.63% and 0.72% for the three months ended September 30, 2014 and 2013, respectively. 
  
  
                                
Asset Quality as of September 30, 2014 (Unaudited)  
(Dollars in thousands)  

Loan Type
 Total Loans   Non Accrual /NPL's  Other Real Estate Owned  Non Performing Assets (NPA's)  Allowance for loan losses   Cash
Reserve
 Total Credit
Reserves
 NPL's/
Total Loans
 Total Reserves to
Total NPL's
 
Pre September 2009 Originated Loans                                      
 Legacy  $57,615   $5,178  $6,464  $11,642  $2,898   $-  $2,898  8.99 %55.97 %
 Troubled debt restructurings (TDR's)   1,661    657   -   657   85    -   85  39.55 %12.94 %
Total Pre September 2009 Originated Loans   59,276    5,835   6,464   12,299   2,983    -   2,983  9.84 %51.12 %
                                       
Originated Loans (Post 2009)                                      
 Warehouse   34,533    -   -   -   259    -   259  0.00 %0.00 %
 Manufactured Housing   4,382    61   -   61   88    -   88  1.39 %144.82 %
 Commercial   1,401,490    1,664   335   1,999   10,261    -   10,261  0.12 %616.65 %
 MultiFamily   1,993,431    -   -   -   7,974    -   7,974  0.00 %0.00 %
 Consumer/ Mortgage   157,674    151   -   151   675    -   675  0.10 %446.05 %
 TDR's   557    -   -   -   -    -   -  0.00 %0.00 %
Total Originated Loans   3,592,067    1,876   335   2,211   19,257    -   19,257  0.05 %1026.44 %
                                       
Acquired Loans                                      
 Berkshire   9,250    1,350   425   1,775   342    -   342  14.59 %25.33 %
 Total FDIC (covered and non covered)   31,421    4,061   10,208   14,269   528    -   528  12.92 %13.00 %
 Manufactured Housing   118,733    -   323   323   -    3,308   3,308  0.00 %0.00 %
 Flagstar (Commercial)   126,742    -   -   -   -    -   -  0.00 %0.00 %
 Flagstar (Residential)   109,294    -   -   -   -    -   -  0.00 %0.00 %
 TDR's   3,258    833   -   833   145    -   145  25.57 %17.41 %
Total Acquired Loans   398,698    6,244   10,956   17,200   1,015    3,308   4,323  1.57 %69.24 %
                                       
Acquired Purchased Credit Impaired Loans                                      
 Berkshire   43,550    -   -   -   5,416    -   5,416  0.00 %0.00 %
 Total FDIC - Covered   12,545    -   -   -   2,179    -   2,179  0.00 %0.00 %
 Manufactured Housing 2011   4,248    -   -   -   233    -   233  0.00 %0.00 %
Total Acquired Purchased Credit Impaired Loans   60,343    -   -   -   7,828    -   7,828  0.00 %0.00 %
Unamortized fees/discounts   (249 )                          0.00 %0.00 %
Total Loans Held for Investment   4,110,135    13,955   17,755   31,710   31,083    3,308   34,391  0.34 %246.44 %
Total Loans Held for Sale   1,395,720    -   -   -   -    -   -  0.00 %0.00 %
Total Portfolio  $5,505,855   $13,955  $17,755  $31,710  $31,083   $3,308  $34,391  0.25 %246.44 %
                             
                             

The following files are available for download:

Contact Information

  • Contacts:
    Jay Sidhu
    Chairman & CEO
    610-935-8693

    Richard Ehst
    President & COO
    610-917-3263

    Investor Contact:
    Robert Wahlman
    CFO
    610-743-8074