Customers Bancorp, Inc.

Previous wording

This report and all attachments hereto, as well as other written or oral communications made from time to time by us, may contain forward-looking information within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and ongoing conflict in the Middle East, which could impact the economic conditions in the United States; the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest ra…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This report and all attachments hereto, as well as other written or oral communications made from time to time by us, may contain forward-looking information within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” “confident,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; technological changes, including acceptance and success of our proprietary B2B instant payments platform, cubiX, which is subject to a variety of factors that are difficult to evaluate; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks, which may be exacerbated by our continued development and implementation of generative artificial intelligence, including risks arising from reliance on third-party AI tools, model limitations, data integrity issues or regulatory uncertainty, and the cost of defending against them and any reputational or other financial risks following such a cybersecurity incident; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and milit…

Excerpt shortened here; the source contains the full paragraph.

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, 2026. 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’ 2025 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, 2026. 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’ 2025 Form 10-K.

Previous wording

Like most financial institutions, Customers derives the majority of its income from interest it receives on its interest-earning assets, such as loans, leases and investments. Customers’ primary source of funds for making these loans, leases and investments are its deposits and borrowings, on which it pays interest. Consequently, one of the key measures of Customers’ success is the amount of its net interest income, or the difference between the interest income on its interest-earning assets and the interest expense on its interest-bearing liabilities, such as deposits and borrowings. Another key measure is the difference between the interest income generated by interest earning assets and the interest expense on interest-bearing liabilities, relative to the amount of average interest earning assets, which is referred to as net interest margin.

Current wording

Like most financial institutions, Customers derives the majority of its income from interest it receives on its interest-earning assets, such as loans, leases and investments. Customers’ primary source of funds for making these loans, leases and investments is its deposits and borrowings, on which it pays interest. Consequently, one of the key measures of Customers’ success is the amount of its net interest income, or the difference between the interest income on its interest-earning assets and the interest expense on its interest-bearing liabilities, such as deposits and borrowings. Another key measure is the difference between the interest income generated by interest earning assets and the interest expense on interest-bearing liabilities, relative to the amount of average interest earning assets, which is referred to as net interest margin.

Previous wording

The Federal Reserve kept the target range for the federal funds rate unchanged at its meetings in 2026. At its June 2026 meeting, the Federal Reserve stated that inflation remains elevated in part reflecting supply shocks that have driven price increases in certain sectors, including energy. Uncertainty about the economic outlook remains elevated. The implications of developments in the Middle East for the U.S. economy are uncertain. The Federal Reserve stated that it will deliver price stability. Significant uncertainties exist as to the direction of interest rates and their effects on economic conditions.

Current wording

The Federal Reserve raised the target range for the federal funds rate by a quarter of a percentage point at its meeting in September 2026. The Federal Reserve stated that inflation remains elevated, and its policy action will support a timelier return to its 2% inflation goal. The Federal Reserve stated that it will deliver price stability. At its October 2026 meeting, the Federal Reserve maintained the target range for the federal funds rate from September 2026. Significant uncertainties exist as to the direction of interest rates and their effects on economic conditions.

Previous 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 began to decline, Customers had 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 $7.0 billion in immediate available liquidity from the FRB and FHLB and cash on hand of $4.2 billion as of June 30, 2026. The Bank’s estimated FDIC insured deposits represented approximately 55% of our deposits (inclusive of accrued interest) as of June 30, 2026. When including collateralized and affiliate deposits as FDIC insured, this number increased to 65% of our deposits as of June 30, 2026. 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 2026 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, disruptions to global supply chains 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 and strong capital ratios. 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 $7.8 billion in immediate available liquidity from the FRB and FHLB and cash on hand of $3.6 billion as of September 30, 2026. The Bank’s estimated FDIC insured deposits represented approximately 57% of our deposits (inclusive of accrued interest) as of September 30, 2026. When including collateralized and affiliate deposits as FDIC insured, this number increased to 66% of our deposits as of September 30, 2026. Customers continues to monitor closely the impact of uncertainties affecting the macroeconomic conditions, 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 and the geopolitical conflicts will impact Customers’ operations and financial results during the remainder of 2026 is highly uncertain.

Previous wording

Customers uses external sources in the creation of its forecasts, including current economic conditions and forecasts for macroeconomic variables over its reasonable and supportable forecast period (e.g., GDP growth rate, unemployment rate, BBB spread, commercial real estate and home price index). After the reasonable and supportable forecast period, which ranges from two to five years, the models revert the forecasted macroeconomic variables to their historical long-term trends, without specific predictions for the economy, over the expected life of the pool, while also incorporating prepayment assumptions into its lifetime loss rates. Internal factors that impact the quarterly allowance estimate include the level of outstanding balances, portfolio performance and assigned risk ratings. Significant loan/borrower attributes utilized in the models include property type, initial loan to value, assigned risk ratings, delinquency status, origination date, maturity date, initial FICO scores, and borrower industry and state.

Current wording

Customers uses external sources in the creation of its forecasts, including current economic conditions and forecasts for macroeconomic variables over its reasonable and supportable forecast period (e.g., GDP growth rate, unemployment rate, BBB spread, commercial real estate and home price index). After the reasonable and supportable forecast period, which ranges from two to five years, the models revert the forecasted macroeconomic variables to their historical long-term trends, without specific predictions for the economy, over the expected life of the pool, while also incorporating prepayment assumptions into its lifetime loss rates. Internal factors that impact the quarterly allowance estimate include the level of outstanding balances, portfolio performance and assigned risk ratings. Significant loan/borrower attributes utilized in the models include property type, initial loan to value, assigned risk ratings, delinquency status, origination date, maturity date, initial FICO scores, as well as borrower industry and state.

Previous wording

The ACL may be affected materially by a variety of qualitative factors that Customers considers to reflect its current judgment of various events and risks that are not measured in our statistical procedures, including uncertainty related to the economic forecasts used in the modeled credit loss estimates, nature and volume of the loan and lease portfolio, credit underwriting policy exceptions, peer comparison, industry data, and model and data limitations. The qualitative allowance for economic forecast risk is further informed by multiple alternative scenarios, as deemed applicable, to arrive at a scenario or a composite of scenarios supporting the period-end ACL balance. The evaluation process is inherently imprecise and subjective as it requires significant management judgment based on underlying factors that are susceptible to changes, sometimes materially and rapidly. Customers recognizes that this approach may not be suitable in certain economic environments such that additional analysis may be performed at management’s discretion. Due in part to its subjectivity, the qualitative evaluation may be materially impacted during periods of economic uncertainty and late breaking events that could lead to a revision of reserves to reflect management’s best estimate of expected credit losses.

Current wording

The qualitative allowance for economic forecast risk is further informed by multiple alternative scenarios, as deemed applicable, to arrive at a scenario or a composite of scenarios supporting the period-end ACL balance. The evaluation process is inherently imprecise and subjective as it requires significant management judgment based on underlying factors that are susceptible to changes, sometimes materially and rapidly. Customers recognizes that this approach may not be suitable in certain economic environments such that additional analysis may be performed at management’s discretion. Due in part to its subjectivity, the qualitative evaluation may be materially impacted during periods of economic uncertainty and late breaking events that could lead to a revision of reserves to reflect management’s best estimate of expected credit losses.

Previous wording

The net increase in our estimated ACL as of June 30, 2026 as compared to December 31, 2025 resulted primarily from increase in loan balances partially offset by slight improvements in the forecast of macroeconomic variables. The provision for credit losses on loans and leases was $17.7 million and $36.3 million for the three and six months ended June 30, 2026, respectively, for an ending ACL balance of $174.1 million ($164.1 million for loans and leases and $10.0 million for unfunded lending-related commitments) as of June 30, 2026.

Current wording

The net increase in our estimated ACL as of September 30, 2026 as compared to December 31, 2025 resulted primarily from an increase in loan balances partially offset by slight improvements in the forecast of macroeconomic variables. The provision for credit losses on loans and leases was $20.7 million and $57.0 million for the three and nine months ended September 30, 2026, respectively, for an ending ACL balance of $174.9 million ($172.1 million for loans and leases and $2.8 million for unfunded lending-related commitments) as of September 30, 2026.

Previous wording

To determine the ACL as of June 30, 2026, Customers utilized its baseline forecast to generate its modeled expected losses and considered 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 2026 assumed slight improvements in macroeconomic forecasts from the first quarter 2026 forecasts of macroeconomic conditions used by Customers; the Federal Reserve Board holding interest rates unchanged for the foreseeable future due to uncertainty caused by the military conflict with Iran and the surge in oil and other commodity prices; inflation is above the Federal Reserve’s target due to higher tariffs and the military conflict with Iran and is not expected to return to target until early 2028; the jobs market has stabilized, and unemployment remains close to the estimated unemployment rate at full employment. Key variables in the forecast show the CRE price index rising to 307.8 in 2026 and 316.7 in 2027, quarterly GDP growth between 1.8% and 2.0% through 2027, the unemployment rate rising to 4.5% in 2026 and 4.6% in 2027, and the BBB spread rising to 1.51% in 2026 and 1.79% in 2027. 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 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.

Current wording

To determine the ACL as of September 30, 2026, Customers utilized its baseline forecast to generate its modeled expected losses and considered 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 2026 assumed slight improvements in certain macroeconomic variables while others remained flat from the second quarter 2026 forecasts of macroeconomic conditions used by Customers.

Previous wording

As of December 31, 2025, the ACL ending balance was $164.7 million ($155.7 million for loans and leases and $9.0 million for unfunded lending-related commitments). To determine the ACL as of December 31, 2025, Customers utilized its December 2025 baseline forecast to generate its modeled expected losses and considered 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 December 31, 2025 assumed slight improvements in macroeconomic forecasts compared to the macroeconomic forecasts used by Customers in 2024; the Federal Reserve Board lowering interest rates in December 2025 and three more times, a quarter point each time as prompted by a soft economy and a struggling job market, in early 2026, and gradually bringing the policy rate to its neutral level by late 2028; policymakers anticipating that the recent acceleration in inflation will prove temporary, as it is largely due to a one-time price increase caused by the higher tariffs; the military conflict between Russia and Ukraine continuing but its fallout on energy, agriculture and other commodity markets is modest; a threat that the turmoil in Middle East disrupting global energy and financial markets has abated somewhat; the CPI rising 3.2% in 2026 and 2.6% in 2027; and the unemployment rate rising to 4.7% in 2026 and 2027.

Current wording

As of December 31, 2025, the ACL ending balance was $164.7 million ($155.7 million for loans and leases and $9.0 million for unfunded lending-related commitments). To determine the ACL as of December 31, 2025, Customers utilized its December 2025 baseline forecast to generate its modeled expected losses and considered 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 December 31, 2025 assumed slight improvements in macroeconomic forecasts compared to the macroeconomic forecasts used by Customers in 2024.

Previous wording

One of the most significant judgments influencing the ACL is the macroeconomic forecasts. 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 the military conflict in the Middle East, including negotiations between the U.S. and Iran taking much longer than expected, and the damage to energy infrastructure worse than expected and taking longer to repair, and causing oil prices to decline less than in the Baseline scenario; economic impacts on the economy of the current administration’s tariffs and deportations, as well as high oil prices worse than expected, causing inflation to rise in the third quarter of 2026; military conflict between Russia and Ukraine persisting longer than expected; the combination of high oil prices, 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 2026; unemployment beginning to increase significantly in the third quarter of 2026 and peaking in the third quarter of 2027. Under this scenario, the unemployment rate is estimated at 7.2% and 8.4% in 2026 and 2027, respectively. These numbers represent a 2.7% and 3.8% higher unemployment estimate than the Baseline scenario projection of 4.5% and 4.6% for the same time periods, respectively. Further, the adverse scenario showed the CRE price index declining to 289.5 in 2026 and 248.3 in 2027, quarterly GDP contracting by 3-4% through Q1 of 2027 with a very modest economic recovery happening in Q2 2027, as well as the BBB spread growing to 3.15% in Q2 of 2027 before retreating to 2.39% at the end of 2027. 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 $105 million at June 30, 2026. 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 fra…

Excerpt shortened here; the source contains the full paragraph.

Current wording

One of the most significant judgments influencing the ACL is the macroeconomic forecasts. 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. To illustrate a hypothetical sensitivity analysis, management calculated a quantitative allowance using a 100% weighting applied to an adverse scenario. Under this scenario, as an example, the unemployment rate increases significantly as compared to the baseline forecast peaking in the fourth quarter of 2027. In addition, GDP is significantly lower in the adverse scenario with GDP turning negative for the remainder of 2026 before turning positive in the third quarter of 2027. To demonstrate the sensitivity to key economic parameters, management calculated the difference between a 100% Baseline weighting and a 100% adverse scenario weighting specific only for modeled results. This would result in an incremental quantitative impact to the ACL of approximately $89.1 million at September 30, 2026. 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

The following table sets forth the condensed statements of income for the three and six months ended June 30, 2026 and 2025:

Current wording

The following table sets forth the condensed statements of income for the three and nine months ended September 30, 2026 and 2025:

Previous wording

Customers reported net income available to common shareholders of $71.6 million and $141.2 million for the three and six months ended June 30, 2026, compared to net income available to common shareholders of $55.8 million and $65.4 million for the three and six months ended June 30, 2025. Factors contributing to the change in net income available to common shareholders for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 were as follows:

Current wording

Customers reported net income available to common shareholders of $78.4 million and $219.6 million for the three and nine months ended September 30, 2026, compared to net income available to common shareholders of $73.7 million and $139.1 million for the three and nine months ended September 30, 2025. Factors contributing to the change in net income available to common shareholders for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025 were as follows:

Previous wording

Net interest income increased $16.7 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to higher average loan balances. Average interest-earning assets increased by $2.9 billion for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase in interest-earning assets was primarily driven by an increase in commercial and industrial specialized lending. NIM decreased by ten basis points to 3.17% for the three months ended June 30, 2026 from 3.27% for the three months ended June 30, 2025. The NIM decrease was primarily attributable to lower market interest rates on commercial and industrial loans and interest earning deposits, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates, which drove a 52 basis point decrease in the cost of interest-bearing liabilities for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Customers’ total cost of funds, including non-interest bearing deposits and borrowings, was 2.64% and 2.99% for the three months ended June 30, 2026 and 2025, respectively.

Current wording

Net interest income increased $6.2 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to higher average loan balances. Average interest-earning assets increased by $2.7 billion for the three months ended September 30, 2026, compared to the three months ended September 30, 2025. The increase in interest-earning assets was primarily driven by increases in corporate banking loans and leases and investment securities. NIM decreased by 27 basis points to 3.19% for the three months ended September 30, 2026 from 3.46% for the three months ended September 30, 2025. The NIM decrease was primarily attributable to lower market interest rates on corporate banking loans and leases and interest earning deposits and lower discount accretion on geographic and other commercial and industrial loans, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. Customers’ total cost of funds, including non-interest bearing deposits and borrowings, was 2.66% and 2.91% for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Net interest income increased $40.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to higher average loan balances and lower interest expense on deposits. Average interest-earning assets increased by $2.6 billion for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase in interest-earning assets was primarily driven by an increase in commercial and industrial specialized lending. NIM decreased by one basis point to 3.19% for the six months ended June 30, 2026 from 3.20% for the six months ended June 30, 2025. The NIM decrease was primarily attributable to lower market interest rates on commercial and industrial 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 50 basis point decrease in cost of interest-bearing liabilities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Customers’ total cost of funds, including non-interest bearing deposits and borrowings, was 2.63% and 2.98% for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Net interest income increased $46.7 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to higher average loan balances. Average interest-earning assets increased by $2.7 billion for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase in interest-earning assets was primarily driven by an increase in corporate banking loans and leases. NIM decreased by 11 basis points to 3.19% for the nine months ended September 30, 2026 from 3.30% for the nine months ended September 30, 2025. The NIM decrease was primarily attributable to lower market interest rates on corporate banking loans and leases and interest-earning deposits and lower discount accretion on geographic and other commercial and industrial loans, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. Customers’ total cost of funds, including non-interest bearing deposits and borrowings, was 2.64% and 2.95% for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

The $2.3 million increase in the provision for credit losses for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 included $0.7 million decrease in provision for credit losses on loans and leases for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, which primarily reflects reserve releases in commercial and industrial and commercial real estate non-owner occupied loans, were largely offset by a reserve build in multifamily loans driven by higher net charge-offs and increased reserves for consumer installment loans. 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 1.01% of total loans and leases receivable at June 30, 2026, compared to 1.07% of total loans and leases receivable at June 30, 2025. Net charge-offs for the three months ended June 30, 2026 were $14.6 million, or 34 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $13.1 million, or 35 basis points on an annualized basis, for the three months ended June 30, 2025. The increase in net charge-offs for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to higher charge-offs for multifamily loans, partially offset by lower charge-offs for commercial and industrial loans and consumer installment loans.

Current wording

The $1.1 million decrease in the provision for credit losses for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 included a $0.9 million increase in provision for credit losses on loans and leases for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, which primarily reflects a reserve build in multifamily loans driven by market specific conditions as well as increased reserves for consumer installment loans. These were largely offset by reserve releases in commercial and industrial and commercial real estate non-owner occupied loans attributable to slightly improving macroeconomic variables. The ACL on loans and leases held for investment represented 1.02% of total loans and leases receivable at September 30, 2026, compared to 1.03% of total loans and leases receivable at September 30, 2025. Net charge-offs for the three months ended September 30, 2026 were $12.7 million, or 28 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $15.4 million, or 39 basis points on an annualized basis, for the three months ended September 30, 2025. The decrease in net charge-offs for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to lower charge-offs for non-owner occupied commercial real estate loans and consumer installment loans, partially offset by higher charge-offs for commercial and industrial loans and leases.

Previous wording

The $2.6 million decrease in the provision for credit losses for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 included $3.6 million decrease in provision for credit losses on loans and leases for the six months ended June 30, 2026 compared to the six months ended June 30, 2025, which primarily reflects reserve releases in commercial and industrial and commercial real estate non-owner occupied loans were largely offset by a reserve build in multifamily loans driven by higher net charge-offs and increased reserves for consumer installment loans. Net charge-offs for the six months ended June 30, 2026 were $27.8 million, or 33 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $30.3 million, or 41 basis points on an annualized basis, for the six months ended June 30, 2025. The decrease in net charge-offs for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to lower charge-offs for commercial and industrial loans and consumer installment loans, partially offset by higher charge-offs for multifamily loans.

Current wording

The $3.7 million decrease in the provision for credit losses for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 included a $2.7 million decrease in provision for credit losses on loans and leases for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, which primarily reflects reserve releases in commercial and industrial and commercial real estate non-owner occupied loans attributable to slightly improving macroeconomic variables. These releases were largely offset by a reserve build in multifamily loans driven by market specific conditions, increases in loan balances, and increased reserves for consumer installment loans. Net charge-offs for the nine months ended September 30, 2026 were $40.5 million, or 31 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $45.6 million, or 40 basis points on an annualized basis, for the nine months ended September 30, 2025. The decrease in net charge-offs for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to lower charge-offs for non-owner occupied commercial real estate loans and consumer installment loans, partially offset by higher charge-offs for multifamily loans.

Previous wording

The provision for credit losses for the three months ended June 30, 2026 and 2025 also included a provision for credit losses of $5.3 million and $2.3 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $10.2 million and $9.2 million for the six months ended June 30, 2026 and 2025, 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, 2026 and 2025 also included a provision for credit losses of $4.7 million and $6.8 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $14.9 million and $16.0 million for the nine months ended September 30, 2026 and 2025, respectively. Refer to “NOTE 5 – INVESTMENT SECURITIES” to Customers’ unaudited consolidated financial statements for additional information.

Previous wording

The $63.2 million increase in non-interest income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily resulted from $51.3 million of impairment loss on investment securities that the Bank decided to sell as of June 30, 2025 in order to further improve structure liquidity, enhance credit profile, reduce asset sensitivity and benefit margin, and increases of $9.1 million in commercial lease income, $2.8 million in loan fees and $2.1 million in net gain on sale of loans and leases and a decrease of $2.3 million in net loss on sale of investment securities, partially offset by decreases of $3.3 million in other non-interest income and $1.6 million in bank-owned life insurance income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

The $64.4 million increase in non-interest income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily resulted from $51.3 million of impairment loss on 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 nine months ended September 30, 2025, increases of $13.5 million in commercial lease income and $3.1 million in net gain on sale of loans and leases and a decrease of $1.8 million in net loss on sale of investment securities, partially offset by decreases of $2.4 million in loan fees, $2.0 million in other non-interest income and $1.5 million in bank-owned life insurance income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

The $8.3 million increase in non-interest expense for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily resulted from increases of $10.2 million in salaries and employee benefits, $4.0 million in commercial lease depreciation and $2.5 million in technology, communication and bank operations. These increases were offset in part by decreases of $7.3 million in FDIC assessments, non-income taxes and regulatory fees and $3.8 million in professional fees for the three months ended June 30, 2026 compared to the three months ended June 30, 2025.

Current wording

The $8.2 million increase in non-interest expense for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily resulted from increases of $7.5 million in salaries and employee benefits, $4.7 million in technology, communication and bank operations, $3.7 million in commercial lease depreciation and $1.7 million in other non-interest expense. These increases were offset in part by decreases of $4.5 million in professional fees and $3.8 million in FDIC assessments, non-income taxes and regulatory fees for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Previous wording

The $17.5 million increase in non-interest expense for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily resulted from increases of $18.8 million in salaries and employee benefits, $8.2 million in commercial lease depreciation, $3.0 million in other non-interest expense and $2.8 million in technology, communication and bank operations. These increases were offset in part by decreases of $10.9 million in FDIC assessments, non-income taxes and regulatory fees and $4.0 million in professional services for the six months ended June 30, 2026 compared to the three months ended June 30, 2025.

Current wording

The $25.7 million increase in non-interest expense for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily resulted from increases of $26.4 million in salaries and employee benefits, $12.0 million in commercial lease depreciation, $7.5 million in technology, communication and bank operations and $4.7 million in other non-interest expense. These increases were offset in part by decreases of $14.6 million in FDIC assessments, non-income taxes and regulatory fees and $8.5 million in professional services for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

There were no preferred stock dividends for the three and six months ended June 30, 2026. Preferred stock dividends were $3.2 million and $6.6 million for the three and six months ended June 30, 2025, respectively. On June 16, 2025 and December 15, 2025, Customers redeemed all of the outstanding shares of Series E Preferred Stock and Series F Preferred Stock, respectively, for an aggregate payment of $142.5 million, at a redemption price of $25.00 per share. The redemption price of $57.5 million 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 and Series F Preferred Stock remained outstanding. Refer to “NOTE 11 – SHAREHOLDERS’ EQUITY” to Customers’ unaudited consolidated financial statements for additional information.

Current wording

There were no preferred stock dividends for the three and nine months ended September 30, 2026. Preferred stock dividends were $2.0 million and $8.6 million for the three and nine months ended September 30, 2025, respectively. On June 16, 2025 and December 15, 2025, Customers redeemed all of the outstanding shares of Series E Preferred Stock and Series F Preferred Stock, respectively, for an aggregate payment of $142.5 million, at a redemption price of $25.00 per share. The redemption price of $57.5 million 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 and Series F Preferred Stock remained outstanding. 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, 2026 and 2025. 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, 2026 and 2025. 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 2.50% and 2.85% for the three months ended June 30, 2026 and 2025, respectively.

Current wording

(4)Total costs of deposits (including interest bearing and non-interest-bearing) were 2.50% and 2.77% for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

Net interest income increased $40.6 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to higher average loan balances. Average interest-earning assets increased by $2.6 billion, primarily related to an increase in commercial and industrial specialized lending.

Current wording

Net interest income increased $6.2 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily due to higher average loan balances. Average interest-earning assets increased by $2.7 billion, primarily related to increases in corporate banking loans and leases and investment securities.

Previous wording

The NIM decreased by ten basis points to 3.17% for the three months ended June 30, 2026 from 3.27% for the three months ended June 30, 2025 resulting primarily from lower market interest rates on commercial and industrial loans and interest earning deposits, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates. The cost of interest-bearing liabilities decreased 52 basis points for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Customers’ total cost of funds, including non-interest bearing deposits and borrowings was 2.64% and 2.99% for the three months ended June 30, 2026 and 2025, respectively.

Current wording

The NIM decreased by 27 basis points to 3.19% for the three months ended September 30, 2026 from 3.46% for the three months ended September 30, 2025 resulting primarily from lower market interest rates on corporate banking loans and leases and interest earning deposits and lower discount accretion on geographic and other commercial and industrial loans, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates. Customers’ total cost of funds, including non-interest bearing deposits and borrowings was 2.66% and 2.91% for the three months ended September 30, 2026 and 2025, respectively.

Previous wording

(4)Total costs of deposits (including interest bearing and non-interest-bearing) were 2.48% and 2.84% for the six months ended June 30, 2026 and 2025, respectively.

Current wording

(4)Total costs of deposits (including interest bearing and non-interest-bearing) were 2.49% and 2.82% for the nine months ended September 30, 2026 and 2025, respectively.

Previous wording

(5)Tax-equivalent basis, using an estimated marginal tax rate of 21% for the six months ended June 30, 2026 and 26% for six months ended June 30, 2025, presented to approximate interest income as a taxable asset.

Current wording

(5)Tax-equivalent basis, using an estimated marginal tax rate of 21% for the nine months ended September 30, 2026 and 26% for nine months ended September 30, 2025, presented to approximate interest income as a taxable asset.

Previous wording

Net interest income increased $16.7 million for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily due to higher average loan balances. Average interest-earning assets increased by $2.9 billion, primarily related to an increase in commercial and industrial specialized lending.

Current wording

Net interest income increased $46.7 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily due to higher average loan balances. Average interest-earning assets increased by $2.7 billion, primarily related to an increase in corporate banking loans and leases.

Previous wording

The NIM decreased by one basis point to 3.19% for the six months ended June 30, 2026 from 3.20% for the six months ended June 30, 2025 resulting primarily from lower market interest rates on commercial and industrial 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 50 basis points for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Customers’ total cost of funds, including non-interest bearing deposits and borrowings was 2.63% and 2.98% for the six months ended June 30, 2026 and 2025, respectively.

Current wording

The NIM decreased by 11 basis points to 3.19% for the nine months ended September 30, 2026 from 3.30% for the nine months ended September 30, 2025 resulting primarily from lower market interest rates on corporate banking loans and leases and interest-earning deposits and lower discount accretion on geographic and other commercial and industrial loans, partially offset by lower cost of deposits from a favorable shift in deposit mix and lower market interest rates on deposits. Customers’ total cost of funds, including non-interest bearing deposits and borrowings was 2.64% and 2.95% for the nine months ended September 30, 2026 and 2025, 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 of $17.7 million for loans and leases and $0.6 million for lending-related commitments, respectively, for the three months ended June 30, 2026. 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. The decrease in provision for credit losses for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, which primarily reflects reserve releases in commercial and industrial and commercial real estate non-owner occupied loans, were largely offset by a reserve build in multifamily loans driven by higher net charge-offs and increased reserves for consumer installment loans. Net charge-offs for the three months ended June 30, 2026 were $14.6 million, or 34 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $13.1 million, or 35 basis points of average loans and leases on an annualized basis, for the three months ended June 30, 2025. The increase in net charge-offs for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, was primarily due to higher charge-offs for multifamily loans, partially offset by lower charge-offs for commercial and industrial loans and 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 of $20.7 million for loans and leases and a benefit to provision of $7.2 million for lending-related commitments, respectively, for the three months ended September 30, 2026. 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. The increase in provision for credit losses for loans and leases for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily reflects the increase in loan balances and a reserve build in multifamily loans driven by market specific conditions, partially offset by slightly improving macroeconomic variables. Net charge-offs for the three months ended September 30, 2026 were $12.7 million, or 28 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $15.4 million, or 39 basis points of average loans and leases on an annualized basis, for the three months ended September 30, 2025. The decrease in net charge-offs for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, was primarily due to lower charge-offs for non-owner occupied commercial real estate loans and consumer installment loans, partially offset by higher charge-offs for commercial and industrial loans and leases.

Previous wording

Customers recorded a provision for credit losses of $36.3 million for loans and leases and $1.0 million for lending-related commitments, respectively, for the six months ended June 30, 2026. 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. The decrease primarily reflects reserve releases in commercial and industrial and commercial real estate non-owner occupied loans were largely offset by a reserve build in multifamily loans. Net charge-offs for the six months ended June 30, 2026 were $27.8 million, or 33 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $30.3 million, or 41 basis points on an annualized basis, for the six months ended June 30, 2025. The decrease in net charge-offs for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, was primarily due to lower charge-offs for commercial and industrial loans and consumer installment loans, partially offset by higher charge-offs for multifamily loans.

Current wording

Customers recorded a provision for credit losses of $57.0 million for loans and leases and a benefit to provision of $6.2 million for lending-related commitments, respectively, for the nine months ended September 30, 2026. 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. The decrease in provision for credit losses for loans and leases primarily reflects reserve releases in commercial and industrial and commercial real estate non-owner occupied loans attributable to slightly improving macroeconomic variables. These releases were largely offset by a reserve build in multifamily loans driven by market specific conditions and the increase in loan balances. Net charge-offs for the nine months ended September 30, 2026 were $40.5 million, or 31 basis points of average loans and leases on an annualized basis, compared to net charge-offs of $45.6 million, or 40 basis points on an annualized basis, for the nine months ended September 30, 2025. The decrease in net charge-offs for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025, was primarily due to lower charge-offs for non-owner occupied commercial real estate loans and consumer installment loans, partially offset by higher charge-offs for multifamily loans.

Previous wording

The provision for credit losses for the three months ended June 30, 2026 and 2025 also included a provision for credit losses of $5.3 million and $2.3 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $10.2 million and $9.2 million for the six months ended June 30, 2026 and 2025, 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, 2026 and 2025 also included a provision for credit losses of $4.7 million and $6.8 million, respectively, on certain debt securities available for sale. The provision for credit losses on certain debt securities available for sale was $14.9 million and $16.0 million for the nine months ended September 30, 2026 and 2025, 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 for the three and six months ended June 30, 2026 and 2025:

Current wording

The table below presents the components of non-interest income for the three and nine months ended September 30, 2026 and 2025:

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 $4.3 million increase in commercial lease income for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 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 $4.4 million increase in commercial lease income for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily resulted from the growth of Customers’ equipment finance business.

Previous wording

The $9.1 million increase in commercial lease income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily resulted from the growth of Customers’ equipment finance business.

Current wording

The $13.5 million increase in commercial lease income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily resulted from the growth of Customers’ equipment finance business.

Previous wording

The $0.4 million decrease in loan fees for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily resulted from a decrease in unused credit line fees, partially offset by higher income from certain stock warrants.

Current wording

The $5.2 million decrease in loan fees for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 primarily resulted from a decrease in income from certain stock warrants.

Previous wording

The $2.8 million increase in loan fees for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily resulted from an increase in income from certain stock warrants, partially offset by a decrease in unused credit line fees.

Current wording

The $2.4 million decrease in loan fees for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily resulted from a decrease in income from certain stock warrants.

Previous wording

The $1.6 million decrease in bank-owned life insurance income for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily resulted from lower death benefits received from insurance carriers, partially offset by an increase in cash surrender value of the policies.

Current wording

The $1.5 million decrease in bank-owned life insurance income for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily resulted from lower death benefits received from insurance carriers, partially offset by an increase in cash surrender value of the policies.

Previous wording

The $3.1 million increase in other non-interest expense for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 primarily resulted from higher spending on business development and non-capitalizable loan origination expenses.

Current wording

The $3.1 million increase in net gain on sale of loans and leases for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 primarily resulted from sales of SBA loans.