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•	Changes in external competitive market factors that might impact our results of operations;

•	Changes in laws and regulations, including without limitation changes in capital requirements under Basel III;

•	Changes in our business strategy or an inability to execute our strategy due to the occurrence of unanticipated events;

•	Local, regional and national economic conditions and events, including real estate values, and the impact they may have on us and our customers;

•	Costs and effects of regulatory and legal developments, including official and unofficial interpretations by regulatory agencies of laws and regulations, the results of regulatory examinations and the outcome of regulatory or other governmental inquiries and proceedings, such as fines or restrictions on our business activities;

•	Our ability to attract deposits and other sources of liquidity;

•	Changes in the financial performance and/or condition of our borrowers;

•	Our ability to access the capital markets to fund our operations and future growth;

•	Changes in the level of non-performing and classified assets and charge-offs;

•	Changes in estimates of future loan loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements;

•	Inflation, interest rate, securities market and monetary fluctuations;

•	Timely development and acceptance of new banking products and services and perceived overall value of these products and services by users, including the products and services being developed and introduced to the market by the BankMobile division of Customers Bank;

•	Changes in consumer spending, borrowing and saving habits;

•	Technological changes;

•	Significant disruption in the technology platforms on which we rely, including security failures, cyberattacks or other breaches of our systems or those of our customers, partners or service providers;

•	Continued volatility in the credit and equity markets and its effect on the general economy;

•	Effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters;

•	Our ability to identify potential candidates for, and consummate, acquisition or investment transactions;

•	The timing of acquisition, investment, or disposition transactions;

•	Constraints on our ability to consummate an attractive acquisition or investment transaction because of significant competition for these opportunities;

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•	The businesses of Customers Bank and any acquisition targets or merger partners and subsidiaries not integrating successfully or such integration being more difficult, time-consuming or costly than expected;

•	Material differences in the actual financial results of merger and acquisition activities compared with expectations, such as with respect to the full realization of anticipated cost savings and revenue enhancements within the expected time frame;

•	Our ability to successfully implement our growth strategy, increase market share, control expenses and maintain liquidity;

•	Customers Bank’s ability to pay dividends to Customers Bancorp;

•	Risks relating to BankMobile, including:

◦	The possibility that the expected benefits of retaining BankMobile for 2 - 3 years may not be achieved;

◦	Material variances in the adoption rate of BankMobile's services by new students and/or the usage rate of BankMobile's services by current student customers compared to our expectations;

◦	The levels of usage of other BankMobile student customers following graduation of additional product and service offerings of BankMobile or Customers Bank, including mortgages and consumer loans, and the mix of products and services used;

◦	Our ability to implement changes to BankMobile's product and service offerings under current and future regulations and governmental policies;

◦	Our ability to effectively manage revenue and expense fluctuations that may occur with respect to BankMobile's student-oriented business activities, which result from seasonal factors related to the higher-education academic year;

◦	BankMobile's ability to successfully implement its growth strategy, including the successful national launch of its existing white label deposit partnership and the development of other white label relationships, and control expenses.

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•	Concentration of business activity;

•	Attractive deposit bases;

•	Significant market share held by large banks;

•	Advantageous competitive landscape that provides opportunity to achieve meaningful market presence;

•	Lack of consolidation in the banking sector and corresponding opportunities for add-on transactions;

•	Potential for economic growth over time; and

•	Management experience in the applicable markets.

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Experienced and respected management team. An integral element of Customers' business strategy is to capitalize on and leverage the prior experience of its executive management team. The management team is led by Chairman and CEO, Jay Sidhu, who is the former CEO and Chairman of Sovereign Bancorp. In addition to Mr. Sidhu, a number of the members of the current management team of Customers have experience working together at Sovereign with Mr. Sidhu, including Richard Ehst, President and Chief Operating Officer, as well as Jim Collins, Chief Administration Officer. During their tenure at Sovereign, these individuals established a track record of producing strong financial results, integrating acquisitions, managing risk, working with regulators and achieving organic growth and expense control. Team leaders Timothy Romig, Pennsylvania and New Jersey Banking Group Executive Vice President; Steve Issa, New England Marketing President and Chief Lending Officer and Lyle Cunningham, Executive Vice President, Managing Director & Market President - New York Metro, Chicago, and Washington D.C. and Specialty Finance; all with over 30 years of experience. Ken Keiser, Director of Multi-Family and Investment Commercial Real Estate Lending, leads the commercial real estate and multi-family lending group and brings more than 40 years of experience including oversight of the Mid-Atlantic commercial real estate group at Sovereign. In addition, the banking to mortgage companies group, which

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Unique Asset and Deposit Generation Strategies. Customers focuses on local market lending combined with relatively low-risk specialty lending segments. Local market asset generation provides various types of business lending products and consumer lending products, such as mortgage loans and home equity loans. Customers has also established a multi-family and commercial real estate product line that is focused on the Mid-Atlantic region, particularly New York City. The strategy is to focus on obtaining deposits and refinancing existing loans with other banks, using teams recruited from other banks, conservative underwriting standards and minimizing costs. Through the multi-family and commercial real estate product, Customers earns interest and fee income and generates commercial deposits. Customers also maintains a specialty lending business, commercial loans to mortgage originators, which is a national business where Customers Bank provides liquidity to non-depository mortgage companies to fund their mortgage pipelines and meet other business needs. Through the loans to mortgage banking businesses, Customers earns interest and fee income and generates core deposits.

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BankMobile Strategy. Customers launched BankMobile as a key strategic initiative in January 2015, recognizing the product delivery flexibility demanded by the millennial generation and the low cost of the smartphone delivery channel. BankMobile refers to Customers' efforts to build a full-service bank that is accessible to its customers anywhere and anytime through the customer's smartphone or other web-enabled device. BankMobile provides a nationwide deposit-aggregation platform. BankMobile principally has a "banking as a service" business model and focuses on the aggregation of low-cost deposits and currently offers no or low-fee banking, higher than average interest rates on savings and access to over 55,000 ATMs across the U.S. Customers believes that consolidating BankMobile with the acquired Disbursement business uniquely positions BankMobile to service 1 million students across America and to become the graduating students "bank for life" and service each graduate's financial needs throughout their life. Successful execution of the BankMobile strategy, including its consolidation with the Disbursement business through colleges and universities across America and similar white-label partnerships, greatly accelerates BankMobile's ability to achieve profitability. BankMobile's revenues are largely derived from interchange and card revenue, deposit fees, university card and disbursement fees and university subscription revenue.

•	Attractive low-credit risk profile. Customers has sought to maintain high asset quality and moderate credit risk by using conservative underwriting standards and early identification of potential problem assets. Customers has also formed a SAG to manage classified and NPAs. As of December 31, 2018, only $27.5 million, or 0.32%, of Customers Bank's total loan portfolio was non performing.

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Superior Community Banking Model. Customers expects to drive organic core loan and deposit growth by employing its Concierge Banking® and single-point-of-contact strategies, which provide specific relationship managers or private bankers for all customers, delivering an appointment banking approach available 12 hours a day, seven days a week. This allows Customers to provide services in a personalized, convenient and expeditious manner. This approach, coupled with superior technology, including remote account opening, remote deposit capture, mobile banking and the first fee-free mobile digital bank, BankMobile, results in a competitive advantage over larger institutions, which management believes contributes to the profitability of its franchise and allows Customers Bank to generate core deposits. The “high-tech, high-touch,” model requires less staff and smaller branch locations to operate, thereby significantly reducing operating costs.

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Acquisition Expertise. The depth of Customers' management team and their experience working together and successfully completing acquisitions provides unique insight in identifying and analyzing potential markets and acquisition targets. The experience of Customers' team, which includes the acquisition and integration of over 35 institutions, as well as numerous asset and branch acquisitions, provides a substantial advantage in pursuing and consummating future acquisitions. Additionally, management believes Customers' strengths in structuring transactions to limit its risk, its experience in the financial reporting and regulatory process related to troubled bank acquisitions, and its ongoing risk management expertise, particularly in problem loan workouts, collectively enable it to capitalize on the potential of the franchises it acquires. With Customers' depth of operational experience in connection with completing merger and acquisition transactions, it expects to be able to integrate and reposition acquired franchises cost-efficiently with a minimum disruption to customer relationships.

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•	Commercial Lending – Customers' focus is on Business Banking (i.e., commercial and industrial lending), including Small and Middle Market Business Banking (including SBA loans), Commercial Loans to Mortgage Companies, and to a lesser extent Multi-Family and Commercial Real Estate Lending, and

•	Consumer Lending – local-market mortgage and home equity lending.

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established the Financial Stability Oversight Council, a federal agency acting as the financial system’s systemic risk regulator with the authority to review the activities of significant bank holding companies and non-bank financial firms, to make recommendations and impose standards regarding capital, leverage, conflicts and other requirements for financial firms and to impose regulatory standards on certain financial firms deemed to pose a systemic threat to the financial health of the U.S. economy;

•	created a new CFPB within the U.S. Federal Reserve, which has substantive rule-making authority over a wide variety of consumer financial services and products, including the power to regulate unfair, deceptive or abusive acts or practices;

•	permitted state attorney generals and other state enforcement authorities broader power to enforce consumer protection laws against banks;

•	authorized federal regulatory agencies to ban compensation arrangements at financial institutions that give employees incentives to engage in conduct that could pose risks to the nation’s financial system;

•	granted the U.S. Government resolution authority to liquidate or take emergency measures with regard to troubled financial institutions, such as bank holding companies, that fall outside the existing resolution authority of the FDIC;

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required that the amount of any interchange fee charged by a debit card issuer with respect to a debit card transaction must be reasonable and proportional to the cost incurred by the issuer. On June 29, 2011, for banks with assets of $10 billion or greater, the Federal Reserve Board set the interchange rate cap at $0.21 per transaction and 5 basis points multiplied by the value of the transaction;

•	gave the FDIC substantial new authority and flexibility in assessing deposit insurance premiums, which may result in increased deposit insurance premiums for Customers in the future;

•	increased the deposit insurance coverage limit for insurable deposits to $250,000 generally, and removes the limit entirely for transaction accounts;

•	permitted banks to pay interest on business demand deposit accounts;

•	extended the national bank lending (or loans-to-one-borrower) limits to other institutions;

•	prohibited banks subject to enforcement action such as a memorandum of understanding from changing their charter without the approval of both their existing charter regulator and their proposed new charter regulator; and

•	imposed new limits on asset purchase and sale transactions between banks and their insiders.

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•	the financial condition and cash flows of the borrower and/or the project being financed;

•	the changes and uncertainties as to the future value of the collateral, in the case of a collateralized loan;

•	the discount on the loan at the time of its acquisition and capital, which could have regulatory implications;

•	the duration of the loan;

•	the credit history of a particular borrower; and

•	changes in economic and industry conditions.

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•	the ability to develop, maintain and build upon long-term customer relationships based on high quality, personal service, effective and efficient products and services, high ethical standards and safe and sound assets;

•	the scope, relevance and competitive pricing of products and services offered to meet customer needs and demands;

•	the ability to provide customers with maximum convenience of access to services and availability of banking representatives;

•	the ability to attract and retain highly qualified team members to operate our business;

•	the ability to expand our market position;

•	customer access to our decision makers and customer satisfaction with our level of service; and

•	the ability to operate our business effectively and efficiently.

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adversely affect the interest rates paid or received on, the revenue and expenses associated with or the value of Customers' LIBOR-based assets and liabilities, which include certain variable rate securities and loans, cash flow hedges, derivatives not designated as hedging instruments, subordinated debt, Customers' Series C preferred stock, Customers' Series D preferred stock, Customers' Series E preferred stock and Customers' Series F preferred stock;

•	adversely affect the interest rates paid or received on, the revenue and expenses associated with or the value of other securities or financial arrangements, given LIBOR’s role in determining market interest rates globally;

•	prompt inquiries or other actions from regulators in respect of Customers' preparation and readiness for the replacement of LIBOR with an alternative reference rate; and

•	result in disputes, litigation or other actions with counterparties regarding the interpretation and enforceability of certain fallback language in LIBOR-based contracts and securities.

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•	incurring time and expense associated with identifying and evaluating potential acquisitions and negotiating the terms of potential transactions, resulting in our attention being diverted from the operation of our existing business;

•	using inaccurate estimates and judgments to evaluate credit, operations, management and market risks with respect to the target institution or assets;

•	being potentially exposed to unknown or contingent liabilities of banks and businesses we acquire;

•	being required to expend time and expense to integrate the operations and personnel of the combined businesses;

•	experiencing higher operating expenses relative to operating income from the new operations;

•	creating an adverse short-term effect on our results of operations;

•	losing key team members and customers as a result of an acquisition that is poorly received; and

•	incurring significant problems relating to the conversion of the financial and customer data of the entity being acquired into our financial and customer product systems.

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•	the effect of the acquisition on competition;

•	the financial condition, liquidity, results of operations, capital levels and future prospects of the applicant and the bank(s) involved;

•	the quantity and complexity of previously consummated acquisitions;

•	the managerial resources of the applicant and the bank(s) involved;

•	the convenience and needs of the community, including the record of performance under CRA;

•	the effectiveness of the applicant in combating money laundering activities; and

•	the extent to which the acquisition would result in greater or more concentrated risks to the stability of the United States banking or financial system.

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•	continue to implement and improve our operational, credit underwriting and administration, financial, accounting, enterprise risk management and other internal and disclosure controls and procedures and our reporting systems and processes in order to manage a growing number of client relationships;

•	comply with changes in, and an increasing number of, laws, rules and regulations, including those of any national securities exchange on which any of our securities become listed;

•	scale our technology and other systems’ platforms;

•	maintain and attract appropriate staffing;

•	operate profitably or raise capital; and

•	support our asset growth with adequate deposits, funding and liquidity while expanding our net interest margin and meeting our customers’ and regulators’ liquidity requirements.

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•	certain federal rules regarding safeguarding personal information, including rules implementing the privacy provisions of GLBA.

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•	whether we declare or fail to declare dividends on the series of preferred stock from time to time;

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•	our operating performance, financial condition and prospects or the operating performance, financial condition and prospects of our competitors;

•	real or anticipated changes in the credit ratings (if any) assigned to the Series C, Series D, Series E and Series F Preferred Stock or our other securities;

•	our creditworthiness;

•	changes in interest rates and expectations regarding changes in rates;

•	our issuance of additional preferred equity;

•	the market for similar securities;

•	developments in the securities, credit and housing markets, and developments with respect to financial institutions generally; and

•	economic, financial, corporate, securities market, geopolitical, regulatory or judicial events that affect us, the banking industry or the financial markets generally.

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•	yields on U.S. Treasury obligations and expectations about future interest rates;

•	actual or anticipated changes in our financial condition or results, including our levels of indebtedness;

•	general economic conditions and expectations regarding the effects of national policies;

•	investors’ views of securities issued by both holding companies and similar financial service firms; and

•	the market for similar securities.

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(1)	Includes one BankMobile administrative office.

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(1)	Includes shares of common stock that may be issued upon the exercise of awards granted or rights accrued under the Amended and Restated Customers Bancorp, Inc. 2004 Incentive Equity and Deferred Compensation Plan, Customers Bancorp, Inc. 2010 Plan, the BRRP and Customers Bancorp, Inc. Amended and Restated 2014 ESPP.

(2)	Does not include restricted stock units and stock awards for which, by definition, there exists no exercise price.

(3)	Does not include securities available for future issuance under the BRRP as there is no specific number of shares reserved under this plan. By its terms, the plan links the award of restricted stock units to the annual performance awards identified with the participants in the BRRP.

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(1)	The FDIC loss sharing receivable, net of the clawback liability, was included in "Accrued interest payable and other liabilities" as of December 31, 2015. The FDIC loss sharing arrangements were terminated during 2016.

(2)	Borrowings includes FHLB advances, Federal funds purchased, Subordinated debt and other borrowings.

(3)

Customers’ selected financial data contains non-GAAP financial measures calculated using non-GAAP amounts. These measures include net interest margin tax equivalent, tangible common equity and tangible book value per common share and tangible common equity to tangible assets. Management uses these non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing the Bancorp’s financial results and use of equity. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities. Customers Bancorp calculates tangible common equity by excluding intangible assets from total shareholders’ equity. Tangible book value per common share equals tangible common equity divided by common shares outstanding. The non-GAAP tax-equivalent basis uses a marginal tax rate of 26% for the year ended December 31, 2018 and a marginal tax rate of 35% for the years ended December 31, 2017, 2016, 2015 and 2014 to approximate interest income as a taxable asset.

(4)	Excludes loans receivable, mortgage warehouse, at fair value which are not evaluated for impairment and do not have an allowance for loan loss.

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(1)	For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for OTTI and amortization of premiums and accretion of discounts.

(2)	Includes owner occupied commercial real estate loans.

(3)	Includes non-accrual loans, the effect of which is to reduce the yield earned on loans, and deferred loan fees.

(4)

Non-GAAP tax-equivalent basis, using an estimated marginal tax rate of 26% for the year ended December 31, 2018 and 35% for the years ended December 31, 2017, and 2016, presented to approximate interest income as a taxable asset. Management uses non-GAAP measures to present historical periods comparable to the current period presentation. In addition, management believes the use of these non-GAAP measures provides additional clarity when assessing Customers’ financial results. These disclosures should not be viewed as substitutes for results determined to be in accordance with U.S. GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other entities.

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(1)

Includes equity securities issued by a foreign entity that are being measured at fair value with changes in fair value recognized directly in earnings effective January 1, 2018 as a result of adopting ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (see NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for additional information related to the adoption of this new standard).

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(1)	Charge-offs and recoveries on PCI loans that are accounted for in pools are recognized on a net basis when the pool matures.

(2)	Includes owner occupied commercial real estate loans.

(3)	The provision amounts exclude the benefit/(cost) of the FDIC loss sharing arrangements of $0.3 million, $(3.9) million and $(4.7) million, for the years ended December 31, 2016, 2015 and 2014, respectively.

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(1)	Includes owner occupied commercial real estate loans.

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(1)	Commercial & industrial loans, including owner occupied commercial real estate loans.

(2)	Does not include loans receivable, mortgage warehouse, at fair value.

(1)	Commercial & industrial loans, including owner occupied commercial real estate loans.

(2)	Does not include loans receivable, mortgage warehouse, at fair value.

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(1)	Excludes PCI loans.

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(1)	Excludes loans receivable, mortgage warehouse, at fair value.

(1)	Includes owner occupied commercial real estate loans.

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•	net income of $71.7 million for the year ended December 31, 2018;

•	share-based compensation expense of $8.6 million for the year ended December 31, 2018; and

•	issuance of common stock under share-based compensation arrangements of $3.8 million for the year ended December 31, 2018.

•	other comprehensive loss of $21.0 million for the year ended December 31, 2018, arising primarily from unrealized losses on available-for-sale debt securities;

•	preferred stock dividends of $14.5 million for the year ended December 31, 2018; and

•	repurchases of shares of Customers' common stock totaling $13.0 million.

•	net income of $78.8 million for the year ended December 31, 2017;

•	OCI of $4.5 million for the year ended December 31, 2017, arising primarily from unrealized gains on available-for-sale securities and cash flow hedges; and

•	share-based compensation expense of $6.1 million for the year ended December 31, 2017;

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•	preferred stock dividends of $14.5 million for the year ended December 31, 2017; and

•	issuance of common stock under share-based compensation arrangements of $11.0 million for the year ended December 31, 2017.

•	net income of $78.7 million for the year ended December 31, 2016;

•	OCI of $3.1 million for the year ended December 31, 2016, arising primarily from unrealized gains on available-for-sale securities;

•	share-based compensation expense of $6.2 million for the year ended December 31, 2016;

•	issuance of 6,700,000 shares of preferred stock, resulting in an increases to shareholders' equity of $161.9 million; and

•	issuance of 2,641,677 shares of common stock, resulting in an increases to shareholders' equity of $64.0 million.

•	preferred stock dividends of $9.5 million for the year ended December 31, 2016; and

•	issuance of common stock under share-based compensation arrangements of $4.0 million for the year ended December 31, 2016.

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•	$7.8 million declared on January 25, 2017, and paid on March 13, 2017;

•	$7.8 million declared on April 26, 2017, and paid on June 12, 2017;

•	$11.3 million declared on July 26, 2017, and paid on September 11, 2017;

•	$11.3 million declared on October 25, 2017, and paid on December 11, 2017;

•	$11.3 million declared on January 24, 2018, and paid on March 12, 2018;

•	$11.3 million declared on April 25, 2018, and paid on June 11, 2018;

•	$11.3 million declared on July 25, 2018, and paid on September 10, 2018;

•	$11.3 million declared on October 24, 2018, and paid on December 10, 2018; and

•	$14.5 million declared on January 30, 2019, and payable on March 10, 2019.

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(1)	Represents commitments funding in approximately one-to-three years that are subject to unscheduled requests for payment.

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(a)	Includes loans held for sale

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•	Loans held for sale,

•	Loans at fair value,

•	Loans receivable and

•	Purchased loans.

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•	National, regional and local economic and business conditions, including review of changes in the unemployment rate;

•	Volume and severity of past-due loans, non-accrual loans and classified loans;

•	Lending policies and procedures, including underwriting standards and historically based loss/collection, charge-off and recovery practices;

•	Nature and volume of the portfolio;

•	Existence and effect of any credit concentrations and changes in the level of such concentrations;

•	Risk ratings;

•	Changes in the values of collateral for collateral dependent loans;

•	Changes in the quality of the loan review system;

•	Experience, ability and depth of lending management and staff; and

•	Other external factors, such as changes in the legal, regulatory or competitive environment.

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(1)

Reclassification amounts for available-for-sale debt securities are reported as gain or loss on sale of investment securities on the consolidated statements of income. During the years ended December 31, 2018 and 2017, reclassification amounts of $18.7 million ($13.8 million net of taxes), and $8.8 million ($5.4 million net of taxes) were reported as loss and gains on sale of investment securities on the consolidated statements of income, respectively. Impairment losses recorded during the year ended December 31, 2017 were not previously deferred in accumulated other comprehensive income (loss) because Customers decided to sell the securities as of December 31, 2016. Reclassification amounts for cash flow hedges are reported as either interest expense on FHLB advances on the consolidated statements of income or other non-interest income on the consolidated statements of income for gains recognized from the discontinuance of cash flow hedge accounting for certain interest rate swaps. During the year ended December 31, 2018, a reclassification amount of $95 thousand ($70 thousand net of taxes) was reported as a reduction to interest expense on FHLB advances on the consolidated statements of income. A reclassification amount of $2.8 million ($2.1 million net of taxes) was reported as other non-interest income on the consolidated statements of income from the discontinuance of cash flow hedge accounting for certain interest rate swaps. During the year ended December 31, 2017, a reclassification amount of $2.6 million ($1.6 million net of taxes) was reported as interest expense on FHLB advances on the consolidated statements of income.

(2)	Amounts reclassified from accumulated other comprehensive income (loss) on January 1, 2018 as a result of the adoption of ASU 2018-02 and ASU 2016-01 resulted in a decrease in accumulated other comprehensive income of $1.3 million and a corresponding increase in retained earnings for the same amount. See NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for more information.

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(1)	Includes corporate securities issued by other bank holding companies.

(2)

Includes equity securities issued by a foreign entity that are being measured at fair value with changes in fair value recognized directly in earnings effective January 1, 2018 as a result of adopting ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (see NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for additional information related to the adoption of this new standard).

(1)	Includes subordinated debt issued by other bank holding companies.

(2)	Includes equity securities issued by a foreign entity.

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(1)	Includes corporate securities issued by other bank holding companies.

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(1)	Includes past-due loans that are accruing interest because collection is considered probable.

(2)	Loans where next payment due is less than 30 days from the report date.

(3)

Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Due to the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans.

(4)	Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses.

(5)	Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies.

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(a)	Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualified for reimbursement under the loss sharing agreements.

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(1)	Includes residential real estate, manufactured housing, and other consumer loans not subject to risk ratings.

(2)	Includes residential real estate, manufactured housing, and other consumer loans that are past due and still accruing interest or on nonaccrual status.

(3)	Excludes commercial mortgage warehouse loans carried under the fair value option.

(1)	The purchase price was 99.9% and 99.4% of loans outstanding for the years ended December 31, 2018 and 2017, respectively. There were no loan purchases during the year ended December 31, 2016.

(2)	Loan sales resulted in a net gain of $3.3 million, $4.2 million and $3.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.

(3)	Primarily sales of SBA loans.

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(1)	Obtained from approved independent appraisers.  Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals.

(2)	Appraisals are adjusted by management for liquidation expenses. The range and weighted average of liquidation expense adjustments are presented as a percentage of the appraisal.

(3)	Business asset valuation obtained from independent party.

(4)	Business asset valuations may be adjusted by management for qualitative factors including economic conditions and the condition of the business assets. The range and weighted average of the business asset adjustments are presented as a percent of the business asset valuation.

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(1)	Includes income recognized from the termination of interest rate swaps.

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(1)	Amounts presented are net of taxes. See Note 4 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges.

(2)	Includes income recognized from the termination of interest rate swaps.

(1)	Amounts presented are net of taxes. See Note 4 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges.

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(1)	Amounts presented are net of taxes. See Note 4 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges.

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(1)	The quarter ended September 30, 2018 included an $18.7 million loss on sale of investment securities.

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(1)	Amounts reported include funds transfer pricing of $15.7 million and $12.9 million, respectively, for the years ended December 31, 2018 and 2017, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the net use of low/no-cost deposits.

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(1)	Amounts reported include funds transfer pricing of $6.9 million for the year ended December 31, 2016, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the net use of low/no-cost deposits.

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(a)	1. Financial Statements

(b)	2. Financial Statements Schedules

(c)	Exhibits

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