XML 68 R26.htm IDEA: XBRL DOCUMENT v3.25.1
BUSINESS SEGMENTS
 3 Months Ended
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,
 20252024
Total interest income$314,909 $331,777 
Total interest expense147,463 171,392 
Net interest income167,446 160,385 
Provision for credit losses
28,297 17,070 
Net interest income after provision for credit losses139,149 143,315 
Total non-interest income (loss) (1)
(24,490)21,231 
Non-interest expense:
Salaries and employee benefits42,674 36,025 
Technology, communication and bank operations11,312 21,904 
Commercial lease depreciation8,463 7,970 
Professional services11,857 6,353 
Loan servicing4,630 4,031 
Occupancy (2)
3,412 2,347 
FDIC assessments, non-income taxes and regulatory fees11,750 13,469 
Advertising and promotion528 682 
Other (3)
8,145 6,388 
Total non-interest expense102,771 99,169 
Income before income tax expense11,888 65,377 
Income tax expense(1,024)15,651 
Segment net income
12,912 49,726 
Preferred stock dividends3,389 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 share0.29 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, 2025December 31, 2024
Total assets$22,423,044 $22,308,241 
Adjustments and reconciling items
— — 
Consolidated total assets
$22,423,044 $22,308,241