Customers Bancorp, Inc.

Previous wording

Management’s discussion and analysis represents an overview of the financial condition and results of operations, and highlights the significant changes in the financial condition and results of operations, as presented in the accompanying consolidated financial statements for Customers Bancorp, Inc. (the “Bancorp” or “Customers Bancorp”), a financial holding company, and its wholly owned subsidiaries, including Customers Bank (the “Bank”), collectively referred to as “Customers” herein. This information is intended to facilitate your understanding and assessment of significant changes and trends related to Customers’ financial condition and results of operations as of and for the three and six months ended June 30, 2025. All quarterly information in this Management’s Discussion and Analysis is unaudited. You should read this section in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Customers’ 2024 Form 10-K.

Current wording

Management’s discussion and analysis represents an overview of the financial condition and results of operations, and highlights the significant changes in the financial condition and results of operations, as presented in the accompanying consolidated financial statements for Customers Bancorp, Inc. (the “Bancorp” or “Customers Bancorp”), a financial holding company, and its wholly owned subsidiaries, including Customers Bank (the “Bank”), collectively referred to as “Customers” herein. This information is intended to facilitate your understanding and assessment of significant changes and trends related to Customers’ financial condition and results of operations as of and for the three and nine months ended September 30, 2025. All quarterly information in this Management’s Discussion and Analysis is unaudited. You should read this section in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Customers’ 2024 Form 10-K.

Previous wording

Inflation remains slightly elevated in 2025. The Federal Reserve has maintained the federal funds rate, and stated that they would assess incoming data, the evolving outlook and the balance of risks in further lowering the federal funds rate. Significant uncertainties exist as to the extent and timing of future rate cuts and their effects on the economic conditions.

Current wording

At its September 2025 meeting, the Federal Reserve enacted a 25 basis point reduction in the federal funds rate. In addition, on October 29, 2025, the Federal Reserve announced an additional rate cut of 25 basis points. Although inflation remains slightly elevated and above the Federal Reserve’s stated 2% target and is not anticipated to fall below that threshold until 2028, it cited the weakening labor market as the key consideration for adopting a less restrictive monetary position. The Federal Reserve has stated that they would assess incoming data, the evolving outlook and the balance of risks in further lowering the federal funds rate. Significant uncertainties exist as to the extent and timing of future rate cuts and their effects on the economic conditions.

Previous wording

Significant uncertainties as to future economic conditions continue to exist, including risks of higher inflation and sustained higher interest rate environment, changes in U.S. trade policies including the imposition of tariffs and retaliatory tariffs on its trading partners, elevated liquidity risk to the U.S. banking system and the exposure to the U.S. commercial real estate market, particularly to the regional banks, disruptions to global supply chain and labor markets and higher oil and commodity prices exacerbated by the military conflicts between Russia and Ukraine and in the Middle East. Customers has maintained higher levels of liquidity, reserves for credit losses on loans and leases and off-balance sheet credit exposures and strong capital ratios, and shifted the mix of its loan portfolio towards low credit risk commercial loans with floating or adjustable interest rates during the period of high interest rates. As the interest rates begin to decline, Customers has been reducing the Bank’s asset sensitivity through derivative hedging and investment securities portfolio rebalancing. Customers remains focused on growing its non-interest bearing and lower-cost interest-bearing deposits. Customers’ exposure to the higher risk commercial real estate office sector is minimal, representing approximately 1% of the loan portfolio as of June 30, 2025. The Bank’s debt securities available for sale and held to maturity are available to be pledged as collateral to the FRB and FHLB for additional liquidity. The Bank had approximately $5.1 billion in immediate available liquidity from the FRB and FHLB and cash on hand of $3.5 billion as of June 30, 2025. The Bank’s estimated FDIC insured deposits represented approximately 61% of our deposits (inclusive of accrued interest) as of June 30, 2025. When including collateralized and affiliate deposits as FDIC insured, this number increased to 70% of our deposits as of June 30, 2025. Customers continues to monitor closely the impact of uncertainties affecting the macroeconomic conditions, the U.S. banking system, particularly regional banks, the military conflicts between Russia and Ukraine and in the Middle East, as well as any effects that may result from the federal government’s responses including future rate and regulatory actions; however, the extent to which inflation, interest rates and other macroeconomic and industry factors, the geopolitical conflicts and developments in the U.S. banking system will impact Customers’ operations and financial results during the remainder of 2025 is highly uncertain.

Current wording

Significant uncertainties as to future economic conditions continue to exist, including risks of higher inflation, changes in U.S. trade policies including the imposition of tariffs and retaliatory tariffs on its trading partners, elevated liquidity risk to the U.S. banking system and the exposure to the U.S. commercial real estate market, particularly to the regional banks, disruptions to global supply chain and labor markets and higher oil and commodity prices exacerbated by the military conflicts between Russia and Ukraine and in the Middle East. Customers has maintained higher levels of liquidity, reserves for credit losses on loans and leases and off-balance sheet credit exposures and strong capital ratios, and shifted the mix of its loan portfolio towards low credit risk commercial loans with floating or adjustable interest rates during the period of high interest rates. As interest rates begin to decline, Customers has been reducing the Bank’s asset sensitivity through derivative hedging and investment securities portfolio rebalancing. Customers remains focused on growing its non-interest bearing and lower-cost interest-bearing deposits. The Bank’s debt securities available for sale and held to maturity are available to be pledged as collateral to the FRB and FHLB for additional liquidity. The Bank had approximately $5.7 billion in immediate available liquidity from the FRB and FHLB and cash on hand of $4.2 billion as of September 30, 2025. The Bank’s estimated FDIC insured deposits represented approximately 57% of our deposits (inclusive of accrued interest) as of September 30, 2025. When including collateralized and affiliate deposits as FDIC insured, this number increased to 67% of our deposits as of September 30, 2025. Customers continues to monitor closely the impact of uncertainties affecting the macroeconomic conditions, the U.S. banking system, particularly regional banks, the military conflicts between Russia and Ukraine and in the Middle East, as well as any effects that may result from the federal government’s responses including future rate and regulatory actions; however, the extent to which inflation, interest rates and other macroeconomic and industry factors, the geopolitical conflicts and developments in the U.S. banking system will impact Customers’ operations and financial results during the remainder of 2025 is highly uncertain.

Previous wording

The net increase in our estimated ACL as of June 30, 2025 as compared to December 31, 2024 resulted primarily from slight deterioration in macroeconomic forecasts and higher loan balances held for investment. The provision for credit losses on loans and leases was $18.5 million and $39.9 million for the three and six months ended June 30, 2025, respectively, for an ending ACL balance of $155.1 million ($147.4 million for loans and leases and $7.7 million for unfunded lending-related commitments) as of June 30, 2025.

Current wording

The net increase in our estimated ACL as of September 30, 2025 as compared to December 31, 2024 resulted primarily from higher loan balances held for investment. The provision for credit losses on loans and leases was $19.8 million and $59.7 million for the three and nine months ended September 30, 2025, respectively, for an ending ACL balance of $158.7 million ($151.8 million for loans and leases and $6.9 million for unfunded lending-related commitments) as of September 30, 2025.

Previous wording

To determine the ACL as of June 30, 2025, Customers utilized Moody’s June 2025 Baseline forecast to generate its modeled expected losses and considered Moody’s other alternative economic forecast scenarios to qualitatively adjust the modeled ACL by loan portfolio in order to reflect management’s reasonable expectations of current and future economic conditions. The Baseline forecast at June 2025 assumed slight deterioration in macroeconomic forecasts from the first quarter 2025 forecasts of macroeconomic conditions used by Customers; the Federal Reserve Board lowering interest rates in September and December 2025 and gradually reducing the policy rate to its neutral level by late 2026; high tariffs, including those on China, prove brief, but that tariffs remain materially higher than in 2024 through the end of the current administration’s term; failures of several banks in the first half of 2023 are not symptomatic of a serious broader problem in the financial system and policymakers’ aggressive response will ensure that the failures do not weaken the financial system or undermine economic growth; a cessation of the military conflict between Russia and Ukraine looks increasingly likely but the impact on energy, agriculture and other commodity markets will be modest; the war in Israel not spreading to other parts of the Middle East, including Iran and mitigating any disruption to global energy markets and global shipping; the CPI rising 2.8% in 2025 and 3.2% in 2026; and the unemployment rate rising to 4.2% in 2025 and 4.7% in 2026 as the outlook for the job market remains weak from the global trade war. Customers continues to monitor the impact of the U.S. banking system weaknesses, the military conflicts between Russia and Ukraine and in the Middle East, high tariffs, inflation, and monetary and fiscal policy measures on the U.S. economy and, if pace of the expected recovery is worse than expected, further meaningful provisions for credit losses could be required.

Current wording

To determine the ACL as of September 30, 2025, Customers utilized Moody’s September 2025 Baseline forecast to generate its modeled expected losses and considered Moody’s other alternative economic forecast scenarios to qualitatively adjust the modeled ACL by loan portfolio in order to reflect management’s reasonable expectations of current and future economic conditions. The Baseline forecast at September 2025 assumed slight improvement in macroeconomic forecasts from the second quarter 2025 forecasts of macroeconomic conditions used by Customers; the Federal Reserve Board lowering interest rates in September and December 2025 and gradually reducing the policy rate to its neutral level by late 2026; the effective tariff rate is expected to rise from just over 2% at the start of the year to an average of 15% through early next year, before slowly falling late in the decade; the military conflict between Russia and Ukraine continues but the impact on energy, agriculture and other commodity markets is modest; while there is always a threat that the turmoil in the Middle East disrupts energy and financial markets, that threat has abated somewhat; the CPI rising 2.8% in 2025 and 3.4% in 2026; and the unemployment rate rising to 4.2% in 2025 and 4.6% in 2026 as the outlook for the job market remains weak from the global trade war. Customers continues to monitor the impact of the military conflicts between Russia and Ukraine and in the Middle East, high tariffs, inflation, and monetary and fiscal policy measures including the federal government shutdown on the U.S. economy and, if pace of the expected economic growth is worse than expected, further meaningful provisions for credit losses could be required.

Previous wording

One of the most significant judgments influencing the ACL is the macroeconomic forecasts from Moody’s. Changes in the economic forecasts could significantly affect the estimated credit losses which could potentially lead to materially different allowance levels from one reporting period to the next. Given the dynamic relationship between macroeconomic variables within Customers’ modeling framework, it is difficult to estimate the impact of a change in any one individual variable on the ACL. However, to illustrate a hypothetical sensitivity analysis, management calculated a quantitative allowance using a 100% weighting applied to an adverse scenario. This scenario includes assumptions around the impact of the current administration’s tariffs and deportations on the economy being significantly worse than expected causing inflation to rise and the Federal Reserve Board to raise the fed fund rate; elevated interest rates weakening credit-sensitive spending more than anticipated and business and consumer confidence to decline; military conflict between Russia and Ukraine persisting longer than expected; the conflict in Israel widening; the combination of tariffs, rising inflation, deportations, political tensions, elevated interest rates and reduced credit availability causing the economy to fall into recession in the third quarter of 2025; real GDP declining cumulatively by 2.6% from the second quarter of 2025 through the first quarter of 2026; declines in European economies and retaliatory tariffs hurting U.S. exports; and unemployment beginning to increase significantly in the third quarter of 2025 and peaking in the third quarter of 2026. Under this scenario, as an example, the unemployment rate is estimated at 5.4% and 8.2% in 2025 and 2026, respectively. These numbers represent a 1.2% and 3.5% higher unemployment estimate than the Baseline scenario projection of 4.2% and 4.7% for the same time periods, respectively. To demonstrate the sensitivity to key economic parameters, management calculated the difference between a 100% Baseline weighting and a 100% adverse scenario weighting for modeled results. This would result in an incremental quantitative impact to the ACL of approximately $82 million at June 30, 2025. This resulting difference is not intended to represent an expected increase in ACL levels since (i) Customers may use a weighted approach applied to multiple economic scenarios for its ACL process, (ii) the highly uncertain economic environment, (iii) the difficulty in predicting inter-relationships between macroeconomic variables used in various economic scenarios, and (iv) the sensitivity analysis does not account for any qualitative adjustments incorporated by Customers as part of its overall ACL framework.

Current wording

One of the most significant judgments influencing the ACL is the macroeconomic forecasts from Moody’s. Changes in the economic forecasts could significantly affect the estimated credit losses which could potentially lead to materially different allowance levels from one reporting period to the next. Given the dynamic relationship between macroeconomic variables within Customers’ modeling framework, it is difficult to estimate the impact of a change in any one individual variable on the ACL. However, to illustrate a hypothetical sensitivity analysis, management calculated a quantitative allowance using a 100% weighting applied to an adverse scenario. This scenario includes assumptions around the impact of the current administration’s tariffs and deportations on the economy being significantly worse than expected causing inflation to rise; rising inflation causes the Federal Reserve Board to raise the Fed Funds; elevated interest rates weakening credit-sensitive spending more than anticipated and business and consumer confidence to decline; military conflict between Russia and Ukraine persisting longer than expected; the conflict in Israel widening; the combination of tariffs, rising inflation, deportations, political tensions, still-elevated interest rates and reduced credit availability causing the economy to fall into recession in the third quarter of 2025; real GDP declining cumulatively by 2.6% from the third quarter of 2025 through the second quarter of 2026; declines in European economies and retaliatory tariffs hurting U.S. exports; and unemployment beginning to increase significantly in the fourth quarter of 2025 and peaking in the fourth quarter of 2026. Under this scenario, as an example, the unemployment rate is estimated at 4.7% and 8.0% in 2025 and 2026, respectively. These numbers represent a 0.5% and 3.4% higher unemployment estimate than the Baseline scenario projection of 4.2% and 4.6% for the same time periods, respectively. To demonstrate the sensitivity to key economic parameters, management calculated the difference between a 100% Baseline weighting and a 100% adverse scenario weighting for modeled results. This would result in an incremental quantitative impact to the ACL of approximately $88 million at September 30, 2025. This resulting difference is not intended to represent an expected increase in ACL levels since (i) Customers may use a weighted approach applied to multiple economic scenarios for its ACL process, (ii) the highly uncertain economic environment, (iii) the difficulty in predicting inter-relationships between macroeconomic variables used in various economic scenarios, and (iv) the sensitivity analysis does not account for any qualitative adjustments incorporated by Customers as part of its overall ACL framework.

Previous wording

There is no certainty that Customers’ ACL will be appropriate over time to cover losses in our portfolio as economic and market conditions may ultimately differ from our reasonable and supportable forecast. Additionally, events adversely affecting specific customers, industries, or Customers’ markets, such as geopolitical instability, risks of rising inflation including a near-term recession, or worsening of the U.S. banking system could severely impact our current expectations. If the credit quality of Customers’ customer base materially deteriorates or the risk profile of a market, industry, or group of customers changes materially, Customers’ net income and capital could be materially adversely affected which, in turn could have a material adverse effect on Customers’ financial condition and results of operations. The extent to which the geopolitical instability, risks of rising inflation and worsening of the U.S. banking system have and will continue to negatively impact Customers’ businesses, financial condition, liquidity and results will depend on future developments, which are highly uncertain and cannot be forecasted with precision at this time.

Current wording

There is no certainty that Customers’ ACL will be appropriate over time to cover losses in our portfolio as economic and market conditions may ultimately differ from our reasonable and supportable forecast. Additionally, events adversely affecting specific customers, industries, or Customers’ markets, such as geopolitical instability, or risks of rising inflation including a near-term recession could severely impact our current expectations. If the credit quality of Customers’ customer base materially deteriorates or the risk profile of a market, industry, or group of customers changes materially, Customers’ net income and capital could be materially adversely affected which, in turn could have a material adverse effect on Customers’ financial condition and results of operations. The extent to which the geopolitical instability, higher tariffs, federal government shutdown and risks of rising inflation have and will continue to negatively impact Customers’ businesses, financial condition, liquidity and results will depend on future developments, which are highly uncertain and cannot be forecasted with precision at this time.

Previous wording

The following table sets forth the condensed statements of income for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table sets forth the condensed statements of income for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Customers reported net income available to common shareholders of $55.8 million and $65.4 million for the three and six months ended June 30, 2025, respectively, compared to net income available to common shareholders of $54.3 million and $100.2 million for the three and six months ended June 30, 2024, respectively. Factors contributing to the change in net income available to common shareholders for the three and six months ended June 30, 2025 compared to the three and six months ended June 30, 2024 were as follows:

Current wording

Customers reported net income available to common shareholders of $73.7 million and $139.1 million for the three and nine months ended September 30, 2025, respectively, compared to net income available to common shareholders of $42.9 million and $143.2 million for the three and nine months ended September 30, 2024, respectively. Factors contributing to the change in net income available to common shareholders for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024 were as follows:

Previous wording

mortgage finance, partially offset by a decrease in interest income from investment securities, interest-bearing deposits and consumer installment loans. Average interest-earning assets increased by $966.5 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase in interest-earning assets was primarily driven by an increase in specialized lending. NIM remained unchanged at 3.20% for the six months ended June 30, 2025 and 3.20% for the six months ended June 30, 2024. The NIM for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily attributable to lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits, which drove a 53 basis point decrease in the cost of interest-bearing liabilities for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, partially offset by decreases in market interest rates in specialized lending and interest-earning deposits. Customers’ total cost of funds, including non-interest bearing deposits was 2.98% and 3.53% for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Net interest income increased $43.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to lower interest expense on deposits and an increase in interest income from higher average loan balances, interest-bearing deposits and loan purchase discount accretion. Average interest-earning assets increased by $2.5 billion for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase in interest-earning assets was primarily driven by increases in specialized lending and interest-earning deposits, partially offset by a decrease in investment securities. NIM increased by 40 basis points to 3.46% for the three months ended September 30, 2025 from 3.06% for the three months ended September 30, 2024. The NIM increase was primarily attributable to lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits, which drove a 58 basis point decrease in the cost of interest-bearing liabilities and higher loan purchase discount accretion for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Customers’ total cost of funds, including non-interest bearing deposits was 2.91% and 3.59% for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

Net interest income increased $9.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to lower interest expense on deposits and an increase in interest income from specialized lending, multifamily and mortgage finance, partially offset by a decrease in interest income from investment securities, consumer installment loans and interest-bearing deposits. Average interest-earning assets increased by $1.2 billion for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. The increase in interest-earning assets was primarily driven by an increase in specialized lending, partially offset by a decrease in investment securities. NIM decreased by 2 basis points to 3.27% for the three months ended June 30, 2025 from 3.29% for the three months ended June 30, 2024. The NIM decrease was primarily attributable to decreases in market interest rates in specialized lending and interest-earning deposits, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits, which drove a 52 basis point decrease in the cost of interest-bearing liabilities for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Customers’ total cost of funds, including non-interest bearing deposits was 2.99% and 3.51% for the three months ended June 30, 2025 and 2024, respectively.

Current wording

Net interest income increased $59.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lower interest expense on deposits and an increase in interest income from higher average loan balances and loan purchase discount accretion, partially offset by a decrease in interest income from investment securities and interest-bearing deposits. Average interest-earning assets increased by $1.5 billion for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase in interest-earning assets was primarily driven by an increase in specialized lending and interest-earning deposits, partially offset by a decrease in investment securities. NIM increased by 14 basis points to 3.30% for the nine months ended September 30, 2025 from 3.16% for the nine months ended September 30, 2024. The NIM increase was primarily attributable to lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits, which drove a 54 basis point decrease in the cost of interest-bearing liabilities, higher loan purchase discount accretion and higher market interest rates on consumer installment loans, partially offset by decreases in market interest rates in specialized lending, investment securities and interest-earning deposits for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Customers’ total cost of funds, including non-interest bearing deposits was 2.95% and 3.55% for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

The $2.7 million increase in the provision for credit losses for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 included $0.6 million increase in provision for credit losses on loans and leases for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, which primarily reflects a slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment. The ACL on off-balance sheet credit exposures is presented within accrued interest payable and other liabilities in the consolidated balance sheet and the related provision is presented as part of other non-interest expense on the consolidated statement of income. The ACL on loans and leases held for investment represented 1.07% of total loans and leases receivable at June 30, 2025, compared to 1.08% of total loans and leases receivable at June 30, 2024. Net charge-offs for the three months ended June 30, 2025 were $13.1 million, or 35 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $18.7 million, or 56 basis points on an annualized basis, for the three months ended June 30, 2024. The decrease in net charge-offs for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to lower charge-offs for consumer installment loans.

Current wording

The $9.5 million increase in the provision for credit losses for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 included $2.0 million increase in provision for credit losses on loans and leases for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, which primarily reflects an increase in loan balances held for investment. The ACL on off-balance sheet credit exposures is presented within accrued interest payable and other liabilities in the consolidated balance sheet and the related provision is presented as part of other non-interest expense on the consolidated statement of income. The ACL on loans and leases held for investment represented 1.03% of total loans and leases receivable at September 30, 2025, compared to 1.06% of total loans and leases receivable at September 30, 2024. Net charge-offs for the three months ended September 30, 2025 were $15.4 million, or 39 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $17.0 million, or 50 basis points on an annualized basis, for the three months ended September 30, 2024. The decrease in net charge-offs for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, was primarily due to lower charge-offs for commercial and industrial loans and multifamily loans, partially offset by higher charge-offs for non-owner occupied commercial real estate loans.

Previous wording

The $13.9 million increase in the provision for credit losses for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 included $6.1 million increase in provision for credit losses on loans and leases for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, which primarily reflects a slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment. Net charge-offs for the six months ended June 30, 2025 were $30.3 million, or 41 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $36.7 million, or 56 basis points on an annualized basis, for the six months ended June 30, 2024. The decrease in net charge-offs for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to lower charge-offs for consumer installment loans.

Current wording

The $23.4 million increase in the provision for credit losses for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 included $8.1 million increase in provision for credit losses on loans and leases for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, which primarily reflects an increase in loan balances held for investment. Net charge-offs for the nine months ended September 30, 2025 were $45.6 million, or 40 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $53.7 million, or 54 basis points on an annualized basis, for the nine months ended September 30, 2024. The decrease in net charge-offs for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, was primarily due to lower charge-offs for commercial and industrial loans and consumer installment loans, partially offset by higher charge-offs for non-owner occupied commercial real estate loans.

Previous wording

The provision for credit losses for the three months ended June 30, 2025 and 2024 also included a provision for credit losses of $2.3 million and $0.3 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $9.2 million and $1.4 million for the six months ended June 30, 2025 and 2024, respectively. Refer to “NOTE 5 – INVESTMENT SECURITIES” to Customers’ unaudited consolidated financial statements for additional information.

Current wording

The provision for credit losses for the three months ended September 30, 2025 and 2024 also included a provision for credit losses of $6.8 million and a benefit to provision of $0.7 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $16.0 million and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively. Refer to “NOTE 5 – INVESTMENT SECURITIES” to Customers’ unaudited consolidated financial statements for additional information.

Previous wording

The $47.2 million decrease in non-interest income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily resulted from $51.3 million of impairment loss on certain AFS debt securities that the Bank decided to sell in order to further improve structural liquidity, enhance credit profile, reduce asset sensitivity and benefit margin during the six months ended June 30, 2025, $11.0 million of unrealized gain on equity method investment with a fair value of $16.0 million purchased at a discount for the six months ended June 30, 2024 and an increase of $1.0 million in net loss on sale of investment securities, partially offset by increases of $6.7 million in other non-interest income, $5.8 million in loan fees, $1.8 million in commercial lease income and $1.6 million in bank-owned life insurance income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Current wording

The $25.5 million decrease in non-interest income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily resulted from $51.3 million of impairment loss on certain AFS debt securities that the Bank decided to sell in order to further improve structural liquidity, reduce asset sensitivity and benefit margin during the nine months ended September 30, 2025 and $11.0 million of unrealized gain on equity method investment with a fair value of $16.0 million purchased at a discount for the nine months ended September 30, 2024, partially offset by a decrease of $14.8 million in net loss on sale of loans and leases, which included a loss of $14.3 million on leases of commercial clean vehicles that were accounted for as sales-type leases during the nine months ended September 30, 2024, and increases of $9.3 million in loan fees, $8.4 million in other non-interest income, $3.2 million in commercial lease income and $1.8 million in bank-owned life insurance income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The commercial clean vehicle leases generated the same amount of investment tax credits that were included as a benefit to income tax expense for the nine months ended September 30, 2024. Refer to “NOTE 8 – LEASES” to Customers’ unaudited consolidated financial statements for additional information on the sales-type leases of commercial clean vehicles.

Previous wording

The $3.2 million increase in non-interest expense for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily resulted from increases of $7.7 million in professional services, $1.7 million in FDIC assessments, non-income taxes and regulatory fees, $0.9 million in commercial lease depreciation and $0.9 million in salaries and employee benefits. These increases were offset in part by decreases of $5.8 million in technology, communication and bank operations and $2.4 million in other non-interest expense for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Current wording

The $1.2 million increase in non-interest expense for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily resulted from increases of $3.2 million in professional services, $1.7 million in commercial lease depreciation, $1.4 million in occupancy, $1.0 million in salaries and employee benefits and $0.6 million in FDIC assessments, non-income taxes and regulatory fees. These increases were offset in part by decreases of $3.6 million in other non-interest expense and $3.2 million in technology, communication and bank operations for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Previous wording

The $6.8 million increase in non-interest expense for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily resulted from increases of $13.3 million in professional services, $7.6 million in salaries and employee benefits, $1.5 million in occupancy, $1.4 million in commercial lease depreciation and $1.1 million in loan servicing. These increases were offset in part by a decrease of $16.4 million in technology, communication and bank operations for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Included in the $16.4 million decrease in technology, communication and bank operations for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was $7.1 million of deposit servicing fees related to periods prior to 2024 that were recorded in the six months ended June 30, 2024.

Current wording

The $8.0 million increase in non-interest expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily resulted from increases of $16.5 million in professional services, $8.6 million in salaries and employee benefits, $3.1 million in commercial lease depreciation, $2.9 million in occupancy, $1.5 million in loan servicing and $0.6 million in FDIC assessments, non-income taxes and regulatory fees. These increases were offset in part by decreases of $19.6 million in technology, communication and bank operations and $4.3 million in other non-interest expense for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Previous wording

Included in the slight decrease in FDIC assessments, non-income taxes and regulatory fees for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 was $4.2 million in FDIC premiums related to periods prior to 2024 that were recorded in the six months ended June 30, 2024.

Current wording

Included in the $19.6 million decrease in technology, communication and bank operations for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was $7.1 million of deposit servicing fees related to periods prior to 2024 that were recorded in the nine months ended September 30, 2024.

Previous wording

Preferred stock dividends were $3.2 million and $3.8 million for the three months ended June 30, 2025 and 2024, respectively. Preferred stock dividends were $6.6 million and $7.6 million for the six months ended June 30, 2025 and 2024, respectively. On June 16, 2025, Customers redeemed all of the outstanding shares of Series E Preferred Stock for an aggregate payment of $57.5 million, at a redemption price of $25.00 per share. The redemption price paid in excess of the carrying value of Series E Preferred Stock of $1.9 million is included as a loss on redemption of preferred stock in the consolidated statements of income for the three and six months ended June 30, 2025. After giving effect to the redemption, no shares of the Series E Preferred Stock remained outstanding. There were no changes to the amount of preferred stock outstanding during the three and six months ended June 30, 2024. Refer to “NOTE 11 – SHAREHOLDERS’ EQUITY” to Customers’ unaudited consolidated financial statements for additional information.

Current wording

Preferred stock dividends were $2.0 million and $3.8 million for the three months ended September 30, 2025 and 2024, respectively. Preferred stock dividends were $8.6 million and $11.4 million for the nine months ended September 30, 2025 and 2024, respectively. On June 16, 2025, Customers redeemed all of the outstanding shares of Series E Preferred Stock for an aggregate payment of $57.5 million, at a redemption price of $25.00 per share. The redemption price paid in excess of the carrying value of Series E Preferred Stock of $1.9 million is included as a loss on redemption of preferred stock in the consolidated statement of income for the nine months ended September 30, 2025. After giving effect to the redemption, no shares of the Series E Preferred Stock remained outstanding. There were no changes to the amount of preferred stock outstanding during the three and nine months ended September 30, 2024. Refer to “NOTE 11 – SHAREHOLDERS’ EQUITY” to Customers’ unaudited consolidated financial statements for additional information.

Previous wording

Net interest income (the difference between the interest earned on loans and leases, investments and interest-earning deposits with banks, and interest paid on deposits, borrowed funds and subordinated debt) is the primary source of Customers’ earnings. The following table summarizes Customers’ net interest income, related interest spread, net interest margin and the dollar amount of changes in interest income and interest expense for the major categories of interest-earning assets and interest-bearing liabilities for the three and six months ended June 30, 2025 and 2024. Information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to (i) changes attributable to volume (i.e., changes in average balances multiplied by the prior-period average rate) and (ii) changes attributable to rate (i.e., changes in average rate multiplied by prior-period average balances). For purposes of this table, changes attributable to both rate and volume which cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.

Current wording

Net interest income (the difference between the interest earned on loans and leases, investments and interest-earning deposits with banks, and interest paid on deposits, borrowed funds and subordinated debt) is the primary source of Customers’ earnings. The following table summarizes Customers’ net interest income, related interest spread, net interest margin and the dollar amount of changes in interest income and interest expense for the major categories of interest-earning assets and interest-bearing liabilities for the three and nine months ended September 30, 2025 and 2024. Information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to (i) changes attributable to volume (i.e., changes in average balances multiplied by the prior-period average rate) and (ii) changes attributable to rate (i.e., changes in average rate multiplied by prior-period average balances). For purposes of this table, changes attributable to both rate and volume which cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.

Previous wording

(4)Total costs of deposits (including interest bearing and non-interest-bearing) were 2.85% and 3.40% for the three months ended June 30, 2025 and 2024, respectively.

Current wording

(4)Total costs of deposits (including interest bearing and non-interest-bearing) were 2.77% and 3.46% for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

The NIM was 3.20% for the six months ended June 30, 2025 and 3.20% for the six months ended June 30, 2024 resulting primarily from lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits, partially offset by decreases in market interest rates in specialized lending and interest-earning deposits. The cost of interest-bearing liabilities decreased 53 basis points for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Customers’ total cost of funds, including non-interest bearing deposits was 2.98% and 3.53% for the six months ended June 30, 2025 and 2024, respectively.

Current wording

The NIM increased by 40 basis points to 3.46% for the three months ended September 30, 2025 from 3.06% for the three months ended September 30, 2024 resulting primarily from lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits and higher loan purchase discount accretion. The cost of interest-bearing liabilities decreased 58 basis points for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Customers’ total cost of funds, including non-interest bearing deposits was 2.91% and 3.59% for the three months ended September 30, 2025 and 2024, respectively.

Previous wording

(4)Total costs of deposits (including interest bearing and non-interest-bearing) were 2.84% and 3.43% for the six months ended June 30, 2025 and 2024, respectively.

Current wording

(4)Total costs of deposits (including interest bearing and non-interest-bearing) were 2.82% and 3.44% for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

(5)Tax-equivalent basis, using an estimated marginal tax rate of 26% for the six months ended June 30, 2025 and 2024, presented to approximate interest income as a taxable asset.

Current wording

(5)Tax-equivalent basis, using an estimated marginal tax rate of 26% for the nine months ended September 30, 2025 and 2024, presented to approximate interest income as a taxable asset.

Previous wording

Net interest income increased $9.1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily due to lower interest expense on deposits and an increase in interest income from specialized lending, multifamily and mortgage finance, partially offset by a decrease in interest income from investment securities, consumer installment loans and interest-bearing deposits. Average interest-earning assets increased by $1.2 billion, primarily related to an increase in specialized lending, partially offset by a decrease in investment securities.

Current wording

Net interest income increased $59.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lower interest expense on deposits and an increase in interest income from higher average loan balances and loan purchase discount accretion, partially offset by a decrease in interest income from investment securities and interest-bearing deposits. Average interest-earning assets increased by $1.5 billion, primarily related to an increase in specialized lending and interest-earning deposits, partially offset by a decrease in investment securities.

Previous wording

The NIM decreased by 2 basis points to 3.27% for the three months ended June 30, 2025 from 3.29% for the three months ended June 30, 2024 resulting primarily from decreases in market interest rates in specialized lending and interest-earning deposits, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits. The cost of interest-bearing liabilities decreased 52 basis points for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. Customers’ total cost of funds, including non-interest bearing deposits was 2.99% and 3.51% for the three months ended June 30, 2025 and 2024, respectively.

Current wording

The NIM increased by 14 basis points to 3.30% for the nine months ended September 30, 2025 from 3.16% for the nine months ended September 30, 2024 resulting primarily from lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits, higher loan purchase discount accretion and higher market interest rates on consumer installment loans, partially offset by decreases in market interest rates in specialized lending, investment securities and interest-earning deposits. The cost of interest-bearing liabilities decreased 54 basis points for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Customers’ total cost of funds, including non-interest bearing deposits was 2.95% and 3.55% for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

The provision for credit losses is a charge to earnings to maintain the ACL at a level consistent with management’s assessment of expected lifetime losses in the loan and lease portfolio, lending-related commitments and investment securities at the balance sheet date. Customers recorded a provision for credit losses on loans and leases during the three months ended June 30, 2025, which resulted primarily from slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment. Customers recorded a provision for credit losses of $18.5 million for loans and leases and $1.6 million for lending-related commitments, respectively, for the three months ended June 30, 2025. Customers recorded a provision for credit losses of $17.9 million for loans and leases and $1.6 million for lending-related commitments, respectively, for the three months ended June 30, 2024. Net charge-offs for the three months ended June 30, 2025 were $13.1 million, or 35 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $18.7 million, or 56 basis points of average loans and leases on an annualized basis, for the three months ended June 30, 2024. The decrease in net charge-offs for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to lower charge-offs for consumer installment loans.

Current wording

The provision for credit losses is a charge to earnings to maintain the ACL at a level consistent with management’s assessment of expected lifetime losses in the loan and lease portfolio, lending-related commitments and investment securities at the balance sheet date. Customers recorded a provision for credit losses on loans and leases during the three months ended September 30, 2025, which resulted primarily from an increase in loan balances held for investment. Customers recorded a provision for credit losses of $19.8 million for loans and leases and a benefit to provision of $0.8 million for lending-related commitments, respectively, for the three months ended September 30, 2025. Customers recorded a provision for credit losses of $17.8 million for loans and leases and $0.6 million for lending-related commitments, respectively, for the three months ended September 30, 2024. Net charge-offs for the three months ended September 30, 2025 were $15.4 million, or 39 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $17.0 million, or 50 basis points of average loans and leases on an annualized basis, for the three months ended September 30, 2024. The decrease in net charge-offs for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, was primarily due to lower charge-offs for commercial and industrial loans and multifamily loans, partially offset by higher charge-offs for non-owner occupied commercial real estate loans.

Previous wording

Customers recorded a provision for credit losses of $39.9 million for loans and leases and $2.8 million for lending-related commitments, respectively, for the six months ended June 30, 2025, which resulted primarily from slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment. Customers recorded a provision for credit losses of $33.8 million for loans and leases and $2.0 million for lending-related commitments, respectively, for the six months ended June 30, 2024. Net charge-offs for the six months ended June 30, 2025 were $30.3 million or 41 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $36.7 million, or 56 basis points of average loans and leases on an annualized basis, for the six months ended June 30, 2024. The decrease in net charge-offs for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to lower charge-offs for consumer installment loans.

Current wording

Customers recorded a provision for credit losses of $59.7 million for loans and leases and $2.0 million for lending-related commitments, respectively, for the nine months ended September 30, 2025, which resulted primarily from an increase in loan balances held for investment. Customers recorded a provision for credit losses of $51.6 million for loans and leases and $2.7 million for lending-related commitments, respectively, for the nine months ended September 30, 2024. Net charge-offs for the nine months ended September 30, 2025 were $45.6 million or 40 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $53.7 million, or 54 basis points of average loans and leases on an annualized basis, for the nine months ended September 30, 2024. The decrease in net charge-offs for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, was primarily due to lower charge-offs for for commercial and industrial loans and consumer installment loans, partially offset by higher charge-offs for non-owner occupied commercial real estate loans.

Previous wording

The provision for credit losses for the three months ended June 30, 2025 and 2024 also included a provision for credit losses of $2.3 million and $0.3 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $9.2 million and $1.4 million for the six months ended June 30, 2025 and 2024, respectively. Refer to “NOTE 5 – INVESTMENT SECURITIES” to Customers’ unaudited consolidated financial statements for additional information.

Current wording

The provision for credit losses for the three months ended September 30, 2025 and 2024 also included a provision for credit losses of $6.8 million and a benefit to provision of $0.7 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $16.0 million and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively. Refer to “NOTE 5 – INVESTMENT SECURITIES” to Customers’ unaudited consolidated financial statements for additional information.

Previous wording

The table below presents the components of non-interest income (loss) for the three and six months ended June 30, 2025 and 2024:

Current wording

The table below presents the components of non-interest income (loss) for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Commercial lease income represents income earned on commercial operating leases originated by Customers’ commercial equipment financing group in which Customers is the lessor. The $0.8 million increase in commercial lease income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily resulted from the growth of Customers’ equipment finance business.

Current wording

Commercial lease income represents income earned on commercial operating leases originated by Customers’ commercial equipment financing group in which Customers is the lessor. The $1.4 million increase in commercial lease income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily resulted from the growth of Customers’ equipment finance business.

Previous wording

The $1.8 million increase in commercial lease income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily resulted from the growth of Customers’ equipment finance business.

Current wording

The $3.2 million increase in commercial lease income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily resulted from the growth of Customers’ equipment finance business.

Previous wording

The $3.9 million increase in loan fees for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily resulted from increases in fees earned on unused lines of credit and servicing fees on consumer installment loans.

Current wording

The $9.3 million increase in loan fees for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily resulted from increases in fees earned on unused lines of credit and income on the settlement of certain stock warrants.

Previous wording

Bank-owned life insurance income represents income earned on life insurance policies owned by Customers including an increase in cash surrender value of the policies and any benefits paid by insurance carriers under the policies. The $0.2 million increase in bank-owned life insurance income for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily resulted from increases in death benefits received from insurance carriers and cash surrender value of the policies.

Current wording

Bank-owned life insurance income represents income earned on life insurance policies owned by Customers including an increase in cash surrender value of the policies and any benefits paid by insurance carriers under the policies. The $0.1 million increase in bank-owned life insurance income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily resulted from an increase in cash surrender value of the policies.

Previous wording

The $1.6 million increase in bank-owned life insurance income for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily resulted from increases in death benefits received from insurance carriers and cash surrender value of the policies.

Current wording

The $1.8 million increase in bank-owned life insurance income for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily resulted from increases in death benefits received from insurance carriers and cash surrender value of the policies.

Previous wording

The $1.0 million increase in net loss on sale of investment securities for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 reflects net losses realized from the sales of $452.2 million in AFS debt securities for the six months ended June 30, 2025, mostly those securities that the Bank decided to sell during the three months ended March 31, 2025, compared to the sales of $240.7 million during the six months ended June 30, 2024. There can be no assurance that Customers will realize gains from sales of investment securities in 2025, given the significant uncertainty in the capital markets and fluctuations in our funding needs, which may impact Customers’ investment strategy.

Current wording

The $0.2 million increase in net gain on sale of investment securities for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 reflects net gains realized from the sales of $100.7 million in AFS debt securities for the three months ended September 30, 2025, compared to the sale of $0.1 million in AFS debt securities during the three months ended September 30, 2024. There can be no assurance that Customers will realize gains from sales of investment securities in 2025, given the significant uncertainty in the capital markets and fluctuations in our funding needs, which may impact Customers’ investment strategy.

Previous wording

The $1.1 million increase in net loss on sale of investment securities for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 reflects net losses realized from the sales of $452.2 million in AFS debt securities for the three months ended June 30, 2025, mostly those securities that the Bank decided to sell during the three months ended March 31, 2025, compared to the sales of $218.7 million during the three months ended June 30, 2024. There can be no assurance that Customers will realize gains from sales of investment securities in 2025, given the significant uncertainty in the capital markets and fluctuations in our funding needs, which may impact Customers’ investment strategy.

Current wording

The $0.9 million increase in net loss on sale of investment securities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 reflects net losses realized from the sales of $552.9 million in AFS debt securities for the nine months ended September 30, 2025, mostly those securities that the Bank decided to sell during the three months ended March 31, 2025, compared to the sales of $241.6 million in AFS debt securities during the nine months ended September 30, 2024. There can be no assurance that Customers will realize gains from sales of investment securities in 2025, given the significant uncertainty in the capital markets and fluctuations in our funding needs, which may impact Customers’ investment strategy.

Previous wording

The $51.3 million increase in impairment loss on debt securities for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily resulted from impairment loss recorded on certain AFS debt securities that the Bank decided to sell in order to further improve structural liquidity, reduce asset sensitivity and benefit margin during the six months ended June 30, 2025.

Current wording

The $51.3 million increase in impairment loss on debt securities for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily resulted from impairment loss recorded on certain AFS debt securities that the Bank decided to sell in order to further improve structural liquidity, reduce asset sensitivity and benefit margin during the nine months ended September 30, 2025.

Previous wording

The $11.0 million decrease in unrealized gain on the equity method investments for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 reflects unrealized gain from the equity method investment with a fair value of $16.0 million purchased at a discount during the three months ended June 30, 2024.

Current wording

The $11.0 million decrease in unrealized gain on the equity method investments for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 reflects unrealized gain from the equity method investment with a fair value of $16.0 million purchased at a discount during the nine months ended September 30, 2024.

Previous wording

The $1.7 million increase in FDIC assessments, non-income taxes and regulatory fees for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 primarily resulted from an increase in FDIC assessments.

Current wording

The $1.7 million increase in other non-interest income for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily resulted from an increase of $1.8 million in deposit account fees.