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BUSINESS SEGMENTS | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
BUSINESS SEGMENT | 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 to the audited consolidated financial statements in the 2024 Form 10-K. 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 three months ended March 31, 2025 and 2024:
Segment profit or loss |  |  |  |  |  |  |
| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Total interest income | $ | 314,909 |  |  | $ | 331,777 |  |  |  |  |
Total interest expense | 147,463 |  |  | 171,392 |  |  |  |  |
Net interest income | 167,446 |  |  | 160,385 |  |  |  |  |
Provision for credit losses | 28,297 |  |  | 17,070 |  |  |  |  |
Net interest income after provision for credit losses | 139,149 |  |  | 143,315 |  |  |  |  |
Total non-interest income (loss) (1) | (24,490) |  |  | 21,231 |  |  |  |  |
Non-interest expense: |  |  |  |  |  |  |
Salaries and employee benefits | 42,674 |  |  | 36,025 |  |  |  |  |
Technology, communication and bank operations | 11,312 |  |  | 21,904 |  |  |  |  |
Commercial lease depreciation | 8,463 |  |  | 7,970 |  |  |  |  |
Professional services | 11,857 |  |  | 6,353 |  |  |  |  |
Loan servicing | 4,630 |  |  | 4,031 |  |  |  |  |
Occupancy (2) | 3,412 |  |  | 2,347 |  |  |  |  |
FDIC assessments, non-income taxes and regulatory fees | 11,750 |  |  | 13,469 |  |  |  |  |
Advertising and promotion | 528 |  |  | 682 |  |  |  |  |
Other (3) | 8,145 |  |  | 6,388 |  |  |  |  |
Total non-interest expense | 102,771 |  |  | 99,169 |  |  |  |  |
Income before income tax expense | 11,888 |  |  | 65,377 |  |  |  |  |
Income tax expense | (1,024) |  |  | 15,651 |  |  |  |  |
Segment net income | 12,912 |  |  | 49,726 |  |  |  |  |
Preferred stock dividends | 3,389 |  |  | 3,800 |  |  |  |  |
Segment net income available to common shareholders | $ | 9,523 |  |  | $ | 45,926 |  |  |  |  |
Reconciliation of profit or loss |  |  |  |  |  |  |
Adjustments and reconciling items | — |  |  | — |  |  |  |  |
Consolidated net income available to common shareholders | $ | 9,523 |  |  | $ | 45,926 |  |  |  |  |
Basic earnings per common share | $ | 0.30 |  |  | $ | 1.46 |  |  |  |  |
Diluted earnings per common share | 0.29 |  |  | 1.40 |  |  |  |  |
(1) Includes Customers’ equity in the net income of investees accounted for under the equity method consisting primarily of investments in the SBA’s small business investment companies, and income from investments in affordable housing projects. (2) Includes depreciation expense for furniture, fixture and equipment and amortization of leasehold improvements of $0.7 million and $0.5 million for the three months ended March 31, 2025 and 2024, 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 March 31, 2025 and December 31, 2024:
Segment assets |  |  |
(amounts in thousands) | March 31, 2025 |  | December 31, 2024
Total assets | $ | 22,423,044 |  |  | $ | 22,308,241 |
Adjustments and reconciling items | — |  |  | — |
Consolidated total assets | $ | 22,423,044 |  |  | $ | 22,308,241 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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