Customers earnings climb 25%, per-share drops on new stock
CUSTOMERS BANCORP announced its third-quarter earnings on Wednesday, reporting a 24.6 percent rise to $8.3 million, or 33 cents per diluted share, compared with $6.6 million, or 51 cents per diluted share, in third-quarter 2012. The per-share earnings reflect the issuance of 6.2 million shares of new stock in the second quarter, said bank executives.
By Rhonda Miller PBN Staff Writer
WYOMISSING, Pa. – Customers Bancorp Inc., parent company of Customers Bank, reported third-quarter earnings of $8.3 million, or 33 cents per diluted share, an increase of 24.6 percent over the $6.6 million, or 51 cents per diluted share, reported for the same quarter in 2012.
The third-quarter diluted earnings per share of 33 cents reflects the full effect of 6.2 million shares of common stock issued in the second quarter, said Customers Bancorp Executive Vice President and Chief Financial Officer Robert Wahlman.
“We saw only a partial effect of the issuance of new stock in the second quarter and the full effect of the new shares in the third quarter,” said Wahlman.
In the second quarter of 2013, Customers reported earnings of 38 cents per diluted share.
Net interest income grew to $27 million in the quarter ended Sept. 30, a 20 percent increase compared with $22.6 million during the same period last year. The bank’s net interest income rose by $1 million in the third quarter of 2013 compared with second-quarter income of $26 million.
“We are particularly pleased that our strategies to grow our multi-family and commercial loan portfolios continue to be successfully implemented, which helped the bank offset the negative effects of considerably lower balances in our mortgage warehouse portfolio during Q3,” said Customers Bank Chairman and CEO Jay Sidhu in the bank’s earnings report released Oct. 23.
“The mortgage warehouse balances decreased $512 million from June 30, 2013 to Sept. 30, 2013 due to higher mortgage rates, but multi-family and commercial loans increased a combined $254 during the quarter,” Sidhu said.
In the first nine months of 2013, Customers Bancorp reported total net income of $23.7 million, a 45 percent increase over $16.3 million during the same period a year earlier.
Customers Bank moved into the Rhode Island market in March 2013 with the acquisition of the regional business of Flagstar Bank. Customers Bank has a regional headquarters in Providence and a second regional office in Boston.