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Business Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
Customers has one reportable segment. Customers derives its revenues from customers by providing loans and deposit products in the United States, and manages the business on a consolidated basis. Customers’ accounting policies of the reportable segment are the same as those described in NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION.
Customers’ CODM is the Executive Committee (the “Executive Committee”) that includes the Chief Executive Officer, President, Chief Financial Officer, Chief Banking Officer, Chief Risk Officer and Chief Credit Officer. The Executive Committee assesses performance of Customers on a consolidated basis, and decides how to allocate resources based on net income that is also reported as net income available to common shareholders on the consolidated statement of income.
The Executive Committee uses net income, which is the measure of segment profit and loss, to evaluate income generated from segment assets (return on assets) and other measures, such as net interest margin, tax equivalent, return on average assets, return on common equity and tangible common equity per common share, in deciding how to reinvest profits, such as originating loans and leases, investing in investment securities, or to repurchase shares in Customers’ common stock.
Net income available to common shareholders is used to monitor budget versus actual results. The Executive Committee also uses net income available to common shareholders and other measures in comparing to Customers’ peer banks. The comparison of Customers’ net income available to common shareholders and other measures to its peer banks, along with the comparison of budgeted versus actual results are used in assessing Customers’ performance and in establishing management compensation.
The following table presents Customers’ reported segment revenues, profit or loss and significant segment expenses for the years ended December 31, 2024, 2023 and 2022:
Segment profit or loss
For the Years Ended December 31,
(amounts in thousands, except per share data)202420232022
Total interest income$1,327,834 $1,367,360 $885,373 
Total interest expense673,430 679,911 261,653 
Net interest income654,404 687,449 623,720 
Provision for credit losses73,451 74,611 60,066 
Net interest income after provision for credit losses580,953 612,838 563,654 
Total non-interest income (1)
60,434 70,565 32,272 
Non-interest expense:
Salaries and employee benefits175,836 133,275 112,365 
Technology, communication and bank operations65,154 65,550 84,998 
Commercial lease depreciation32,543 29,898 22,978 
Professional services34,978 35,177 27,465 
Loan servicing15,909 17,075 15,023 
Occupancy (2)
11,789 10,070 13,606 
FDIC assessments, non-income taxes, and regulatory fees41,684 35,036 8,869 
Advertising and promotion4,489 3,095 2,541 
Legal settlement expense— 4,096 — 
Other (3)
34,632 19,391 16,784 
Total non-interest expense417,014 352,663 304,629 
Income before income tax expense224,373 330,740 291,297 
Income tax expense42,904 80,597 63,263 
Segment net income
181,469 250,143 228,034 
Preferred stock dividends15,040 14,695 9,632 
Segment net income available to common shareholders
$166,429 $235,448 $218,402 
Reconciliation of profit or loss
Adjustments and reconciling items
— — — 
Consolidated net income available to common shareholders
$166,429 $235,448 $218,402 
Basic earnings per common share $5.28 $7.49 $6.69 
Diluted earnings per common share 5.09 7.32 6.51 
(1)    Includes Customers’ equity in the net income of investees accounted for under the equity method, consisting primarily of investments in affordable housing projects and the SBA’s small business investment companies.
(2)    Includes depreciation expense for furniture, fixture and equipment and amortization of leasehold improvements of $2.2 million, $2.2 million and $3.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.
(3)    Other expenses include fees paid to a fintech company related to consumer installment loans originated and held for sale, provision for credit losses on unfunded lending-related commitments, loan workout and non-capitalizable origination costs, provision for operating losses, insurance expenses, charitable contributions and other miscellaneous expenses.
Substantially all revenues generated and long-lived assets held by Customers are derived from customers that reside in the United States. Customers did not earn revenues from a single external customer that represents ten percent or more of consolidated total revenues.
The measure of segment assets is reported as total assets on the consolidated balance sheet. The following table presents Customers’ reported segment assets as of December 31, 2024 and 2023:
Segment assets
December 31,
(amounts in thousands)
20242023
Segment total assets
$22,308,241 $21,316,265 
Adjustments and reconciling items
— — 
Consolidated total assets
$22,308,241 $21,316,265