Lending surged at Customers Bancorp (CUBI) in Wyomissing, Pa., this spring.
The $3.8 billion-asset company reported profits of $8.2 million in the second quarter, up 26% from the same period in 2012. Per-share earnings of 38 cents beat Bloomberg analysts' expectations by 4 cents.
Net interest income rose by 84%, to $26 million, as Customers' net interest margin widened by 35 basis points, to 3.26%. Its portfolio of interest-earning assets rose 63%, to $3.4 billion, led by a $543 million
increase in multifamily loans, a $337 million increase in warehouse loans and a $362 million increase in commercial loans.
Noninterest income dipped 38%, to $8.2 million, as Customers recorded no gains on securities sales, after gaining $8.8 million in the second quarter. But its deposit and mortgage fees rose, and it recorded a $2.5 million accretion credit related to a Federal Deposit Insurance Corp. loss-sharing agreement.
Customers' provision for loan losses rose 69%, to $4.6 million, and its net chargeoffs rose 44%, to $2.9 million.
Customers, led by chairman Jay Sidhu, made several important moves last quarter. In April it terminated a $65 million deal to buy Acacia Federal Savings Bank in Falls Church, Va. In May it raised $100 million in a public offering and began trading on the Nasdaq stock exchange. Last month it announced that it would invest $51 million to back an Indian financial services firm that is applying for a banking license.