Customers Bancorp, Inc.CUBI
Customers Bancorp, Inc. Segments Disclosure
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 that includes the Executive Chairman, Chief Executive Officer, Chief Financial Officer, Chief Banking Officer, Chief Risk Officer, Chief Credit Officer, Chief Operating 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 years ended December 31, 2025, 2024 and 2023:
Segment profit or loss | |||||||||||||||||
| For the Years Ended December 31, | |||||||||||||||||
| (amounts in thousands, except per share data) | 2025 | 2024 | 2023 | ||||||||||||||
| Total interest income | $ | 1,359,587 | $ | 1,327,834 | $ | 1,367,360 | |||||||||||
| Total interest expense | 609,098 | 673,430 | 679,911 | ||||||||||||||
| Net interest income | 750,489 | 654,404 | 687,449 | ||||||||||||||
| Provision for credit losses | 97,958 | 73,451 | 74,611 | ||||||||||||||
| Net interest income after provision for credit losses | 652,531 | 580,953 | 612,838 | ||||||||||||||
Total non-interest income (1) | 67,823 | 60,434 | 70,565 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||
| Salaries and employee benefits | 188,989 | 175,836 | 133,275 | ||||||||||||||
| Technology, communication and bank operations | 43,497 | 65,154 | 65,550 | ||||||||||||||
| Commercial lease depreciation | 38,337 | 32,543 | 29,898 | ||||||||||||||
| Professional services | 50,378 | 34,978 | 35,177 | ||||||||||||||
| Loan servicing | 16,900 | 15,909 | 17,075 | ||||||||||||||
Occupancy (2) | 15,624 | 11,789 | 10,070 | ||||||||||||||
| FDIC assessments, non-income taxes, and regulatory fees | 41,184 | 41,684 | 35,036 | ||||||||||||||
| Advertising and promotion | 2,437 | 4,489 | 3,095 | ||||||||||||||
| Legal settlement expense | — | — | 4,096 | ||||||||||||||
Other (3) | 34,577 | 34,632 | 19,391 | ||||||||||||||
| Total non-interest expense | 431,923 | 417,014 | 352,663 | ||||||||||||||
| Income before income tax expense | 288,431 | 224,373 | 330,740 | ||||||||||||||
| Income tax expense | 64,343 | 42,904 | 80,597 | ||||||||||||||
Segment net income | 224,088 | 181,469 | 250,143 | ||||||||||||||
| Preferred stock dividends | 10,198 | 15,040 | 14,695 | ||||||||||||||
| Loss on redemption of preferred stock | 4,707 | — | — | ||||||||||||||
Segment net income available to common shareholders | $ | 209,183 | $ | 166,429 | $ | 235,448 | |||||||||||
Reconciliation of profit or loss | |||||||||||||||||
Adjustments and reconciling items | — | — | — | ||||||||||||||
Consolidated net income available to common shareholders | $ | 209,183 | $ | 166,429 | $ | 235,448 | |||||||||||
| Basic earnings per common share | $ | 6.46 | $ | 5.28 | $ | 7.49 | |||||||||||
| Diluted earnings per common share | 6.26 | 5.09 | 7.32 | ||||||||||||||
(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 $3.6 million, $2.2 million and $2.2 million for the years ended December 31, 2025, 2024 and 2023, 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 December 31, 2025 and 2024:
| Segment assets | |||||||||||
| December 31, | |||||||||||
(amounts in thousands) | 2025 | 2024 | |||||||||
Segment total assets | $ | 24,895,868 | $ | 22,308,241 | |||||||
Adjustments and reconciling items | — | — | |||||||||
Consolidated total assets | $ | 24,895,868 | $ | 22,308,241 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2020 | Mar 2, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Mar 8, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.