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BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 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, Chief Credit Officer and the Head of Corporate Development and Investor Relations. 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 redeem shares in Customers’ preferred stock or 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 and nine months ended September 30, 2025 and 2024:
Segment profit or loss
Three Months Ended September 30,Nine Months Ended September 30,
 2025202420252024
Total interest income$361,479 $332,113 $1,004,389 $997,928 
Total interest expense159,567 173,568 458,328 511,345 
Net interest income201,912 158,545 546,061 486,583 
Provision for credit losses
26,543 17,066 75,621 52,257 
Net interest income after provision for credit losses175,369 141,479 470,440 434,326 
Total non-interest income (1)
30,191 8,557 35,307 60,825 
Non-interest expense:
Salaries and employee benefits48,723 47,717 137,245 128,689 
Technology, communication and bank operations10,415 13,588 32,109 51,719 
Commercial lease depreciation9,463 7,811 26,669 23,610 
Professional services12,281 9,048 37,988 21,505 
Loan servicing4,167 3,778 12,850 11,325 
Occupancy (2)
4,370 2,987 11,333 8,454 
FDIC assessments, non-income taxes and regulatory fees8,505 7,902 32,161 31,607 
Advertising and promotion636 908 1,625 2,844 
Other (3)
6,657 10,279 22,634 26,886 
Total non-interest expense105,217 104,018 314,614 306,639 
Income before income tax expense (benefit)
100,343 46,018 191,133 188,512 
Income tax expense (benefit)
24,598 (725)41,537 33,958 
Segment net income
75,745 46,743 149,596 154,554 
Preferred stock dividends2,019 3,806 8,593 11,391 
Loss on redemption of preferred stock— — 1,908 — 
Segment net income available to common shareholders
$73,726 $42,937 $139,095 $143,163 
Reconciliation of profit or loss
Adjustments and reconciling items
— — — — 
Consolidated net income available to common shareholders
$73,726 $42,937 $139,095 $143,163 
Basic earnings per common share $2.28 $1.36 $4.37 $4.54 
Diluted earnings per common share2.20 1.31 4.24 4.37 
(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 $1.1 million and $0.5 million for the three months ended September 30, 2025 and 2024, respectively. Depreciation expense for furniture, fixture and equipment and amortization of leasehold improvements were $2.6 million and $1.6 million for the nine months ended September 30, 2025 and 2024, respectively.
(3)    Other expenses include fees paid to a fintech company related to consumer installment loans, 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 September 30, 2025 and December 31, 2024:
Segment assets
(amounts in thousands)
September 30, 2025December 31, 2024
Total assets$24,260,163 $22,308,241 
Adjustments and reconciling items
— — 
Consolidated total assets
$24,260,163 $22,308,241