Q4 2024 Customers Bancorp Inc Earnings Call Transcript
Key Points
- Customers Bancorp Inc (CUBI) reported strong deposit-led growth, with the bank doubling in size over the last five years and ending 2024 with over $22 billion in assets.
- The company achieved a significant increase in net interest income, up 19% annually, and core EPS up over 2.5 times over the last five years.
- Customers Bancorp Inc (CUBI) successfully reduced its cost of funding in 2024, achieving an impressive total deposit beta of 64% during the easing cycle.
- The bank's loan portfolio grew at an industry-leading 19% annualized pace in the fourth quarter, with diversified growth across various sectors.
- Customers Bancorp Inc (CUBI) maintained strong credit quality, with NPAs remaining low at just 25 basis points and a decline in net charge-offs for the second consecutive quarter.
- The company is still trading at a low book value despite significant growth and profitability improvements.
- Customers Bancorp Inc (CUBI) faces uncertainties related to macroeconomic factors and potential rate cuts, which could impact net interest income growth.
- The bank's core non-interest expense increased due to higher professional services expenses, impacting short-term profitability.
- There is a potential risk associated with the high concentration of non-interest-bearing deposits from the cubiX platform, which could affect liquidity management.
- The provisioning outlook remains uncertain, with potential for increased provisions due to continued loan growth.
Hello, and welcome to the Customers Bancorp Inc. 2024 fourth quarter and year-end earnings report. (Operator Instructions) I would now like to turn the conference over to David Patti of Customers Bancorp. You may begin.
Thank you, Sarah, and good morning, everyone. Thank you for joining us for the Customer Bancorp earnings webcast for Q4 and the full year 2024. The presentation deck you will see during today's webcast has been posted on the Investor's Web page of the bank's website at www.customersbank.com.
You can scroll to Q4 and full year 2024 results and click download presentation. You can also download a PDF of the full press release at this spot. Our investor presentation includes important details that we will walk through on this morning's webcast. I encourage you to download and use the document.
Before we begin, we would like to remind you that some of the statements we make today may be considered
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