Customers Bancorp : January 26, 2017 Customers Bancorp Reports Record Net Income for Full Year 2016

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• 2016 Net Income to Common Shareholders of $69.2 million Up 23.3% Over 2015
• Decision to Exit or Reduce Holdings of Religare Enterprises Limited Common Stock Results in Q4 2016 $7.3 million Impairment Charge
• Early Adoption of ASU 2016-9, Improvements to Employee Share Based Accounting ('ASU 2016-9'), Results in $4.1 million Benefit for 2016, and $3.6 million Benefit for Q4 2016
• 2016 Net Income to Common Shareholders Excluding the Impairment Charge and ASU 2016-9 Benefit of $72.3 million, Up 28.9% Over 2015
• Q4 2016 Net Income to Common Shareholders of $16.2 million Down $0.6 million, or 3.4%, From Q4 2015
• Q4 2016 Net Income to Common Shareholders Excluding the Impairment Charge and ASU 2016-9 Benefit of $19.9 million, Up 18.6% Over Q4 2015
• 2016 Return on Common Equity of 12.41%
• 2016 Return on Common Equity Excluding the Impairment Charge and ASU 2016-9 Benefit of 12.97%
• Q4 2016 Return on Common Equity of 10.45%
• Q4 2016 Return on Common Equity Excluding the Impairment Charge and ASU 2016-9 Benefit of 12.83%
• Book Value Per Common Share Up 13.8% in 2016 to $21.08
• Total Loans Up 13.9%, and Total Deposits Up 20.9%, in 2016
• Asset Quality Exceptional With NPLs 0.22% of Total Loans
• Shareholders' Equity Increased $302 million, or 54.5%, in 2016
• BankMobile Classified as Held for Sale in Financial Reports; Results Reflect Both Continuing and Discontinued Operations Unless Otherwise Indicated

Wyomissing, PA (January 26, 2017) - Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively 'Customers'), reported net income to common shareholders of $69.2 million for the full year of 2016 compared to net income to common shareholders of $56.1 million for the full year of 2015, an increase of $13.1 million, or 23.3%. Fully diluted earnings per share for the full year of 2016 was $2.31 compared to $1.96 fully diluted earnings per share for 2015, an increase of $0.35, or 17.9%. Average fully diluted shares for 2016 were 30.0 million compared to average fully diluted shares for 2015 of 28.7 million. During the fourth quarter of 2016 ('Q4 2016'), Customers recognized an impairment charge on equity securities for which Customers' intent to hold until the market price recovered changed resulting in a charge of $7.3 million, and adopted Accounting Standards Update 2016-9, Improvements to Employee Share Based Accounting ('ASU 2016-9'), resulting in a $4.1 million reduction in income tax expense, which increased 2016 earnings. Net income to common shareholders would have been $72.3 million, and fully diluted earnings per share would have been $2.46 per share, for 2016 without the impact of the impairment charge and adopting ASU 2016-9.

Customers also reported net income to common shareholders of $16.2 million for Q4 2016 compared to net income to common shareholders of $16.8 million for the fourth quarter of 2015 ('Q4 2015'), a decrease of $0.6 million, or 3.4%. Q4 2016 fully diluted earnings per share was $0.51 compared to $0.58 for Q4 2015, a decrease of $0.07 per share, or 12.1%. Average fully diluted shares for Q4 2016 was 31.6 million shares compared to average fully diluted shares for Q4 2015 of 28.9 million. Customers changed its intent to hold certain equity securities until the market price of the securities recovered, resulting in an impairment charge of $7.3 million during Q4 2016. Customers' adoption of ASU 2016-9 during Q4 2016 resulted in a $3.6 million reduction in income tax expense, which increased earnings in Q4 2016 by $3.6 million. Excluding the impairment charge and the impact of adopting ASU 2016-9, net income available to common shareholders would have been $19.9 million, and fully diluted earnings per share would have been $0.64 per share, in Q4 2016.

Net income to common shareholders from continuing operations after preferred stock dividends was $78.2 million for 2016 and $19.7 million for Q4 2016. Net income to common shareholders from continuing operations after preferred stock dividends was $60.6 million for 2015 and $17.9 million for Q4 2015. Fully diluted earnings per common share from continuing operations after preferred stock dividends was $2.61 for 2016 and $2.11 for 2015 and $0.62 for Q4 2016 and $0.62 for Q4 2015. Fully diluted earnings per common share from continuing operations after preferred stock dividends would have been $2.76 for 2016 and $0.76 for Q4 2016 without the impact of the impairment charge and adopting ASU 2016-9.

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