Customers Bancorp Reports Net Income for Third Quarter 2017 and First Nine Months 2017

• Q3 2017 Net Income to Common Shareholders of $4.1 Million, or $0.13 Diluted Earnings Per Common Share, Down 77.8% and 79.4%, Respectively, From Q3 2016
• First Nine Months of 2017 Net Income to Common Shareholders of $46.4 Million, or $1.42 Diluted Earnings Per Common Share, Down 12.5% and 21.1%, Respectively, From First Nine Months of 2016
• Notable Charges to Net Income During Q3 2017 Totaled $15.6 Million, or $0.48 Diluted Earnings Per Common Share, For Change in BankMobile Disposition Strategy ($10.4 Million After Tax, or $0.32 Per Diluted Share), and Religare Equity Investment Impairment ($8.3 Million, or $0.16 Per Diluted Share)
• Q3 2017 Diluted Earnings Per Common Share Excluding the Notable Items Was $0.61 (a Non-GAAP Measure) and First Nine Months Diluted Earnings Per Common Share Excluding the Notable Items Was $1.99 (a Non-GAAP Measure)
• Assets at September 30, 2017 Totaled $10.5 Billion, Down From June 30, 2017 Total Assets of $10.9 Billion, and Up From September 30, 2016 Total Assets of $9.6 Billion
• Customers to Reduce Assets to Under $10 Billion at December 31, 2017 to Further Improve Capital Ratios and Defer Potential Effects of the Durbin Amendment to July 1, 2019
• At September 30, 2017 Total Loans Were $9.2 Billion, Up 9.0% From September 30, 2016 and Total Deposits Were $7.6 Billion, Up 2.8% From September 30, 2016; September 30, 2017 Non-Interest Bearing Demand Deposits Were $1.4 Billion, Up $346.3 Million From September 30, 2016 and Up $461.2 Million From December 31, 2016
• September 30, 2017 Shareholders' Equity of $911 Million Up 15.3% From September 30, 2016
• Estimated Tier 1 Risk Based Capital Was 10.94% at September 30, 2017 Compared to 9.90% at September 30, 2016. Tangible Common Equity to Tangible Assets (a Non-GAAP Measure) Was 6.47% at September 30, 2017 Compared to 5.79% at September 30, 2016
• September 30, 2017 Book Value Per Common Share of $22.51 Up 8.3% From September 30, 2016.  September 30, 2017 Tangible Book Value Per Common Share (a Non-GAAP Measure) of $21.98 Up 9.0% From September 30, 2016

WYOMISSING, Pa., Oct. 25, 2017 (GLOBE NEWSWIRE) -- Customers Bancorp, Inc. (NYSE:CUBI), the parent company of Customers Bank (collectively “Customers”), reported net income to common shareholders of $4.1 million for the third quarter of 2017 ("Q3 2017") compared to net income to common shareholders of $18.7 million for the third quarter of 2016 ("Q3 2016"), a decrease of $14.5 million, or 77.8%. Fully diluted earnings per common share for Q3 2017 was $0.13 compared to $0.63 fully diluted earnings per common share for Q3 2016, a decrease of $0.50, or 79.4%.  Average fully diluted shares for Q3 2017 were 32.5 million compared to average fully diluted shares for Q3 2016 of 29.7 million.

Customers also reported net income to common shareholders of $46.4 million for the first nine months of 2017 compared to net income to common shareholders of $53.0 million for the first nine months of 2016, a decrease of $6.6 million, or 12.5%.  Fully diluted earnings per common share was $1.42 for the first nine months of 2017 compared to $1.80 for the first nine months of 2016, a decrease of 21.1%.

Customers' Q3 2017 and first nine months of 2017 net income to common shareholders were affected by several notable charges in Q3 2017. First, Customers' previously-announced strategic decision to spin-off its BankMobile business directly to Customers’ shareholders, to be followed by a merger of BankMobile into Flagship Community Bank rather than sell the business directly to a third party resulted in including BankMobile segment results as part of the continuing Customers’ business rather than as discontinued operations. The reclassification as part of the continuing business resulted in the capture of depreciation and amortization expense not recognized during the period the related assets were classified as held for sale ($4.2 million pre-tax, or $0.08 per diluted share). In addition, Customers' decision to spin-off and then merge the BankMobile business eliminated Customers’ tax strategy to offset capital losses on disposition of the Religare Enterprises, Ltd. ("Religare") common stock with capital gains from the sale of BankMobile. Customers’ decision to pursue the spin-off and merger reduced earnings by $7.7 million after tax ($0.24 per diluted share) in the third quarter due to the reversal of $4.6 million of previously recognized deferred tax assets, and inability to recognize deferred tax benefits of $3.1 million for the Q3 2017 impairment charge of $8.3 million ($0.16 per diluted share), equal to the Q3 2017 decrease in market value of Customers’ investment in Religare.

“While we believe Customers’ strategic decision to spin-off the BankMobile business should provide very significant benefits to our shareholders, there were some significant costs affecting our third quarter financial statements. Also, the fair value of our Religare equity investments declined by $8.3 million in Q3 2017.  Excluding the notable items, Customers generated approximately $0.61 in Q3 2017 earnings,” stated Jay Sidhu, CEO and Chairman of Customers Bank. “Looking at the Community Business Banking segment, which will be the continuing Customers' business after the BankMobile spin-off and merger is completed, that segment generated $0.74 of segment earnings after considering the notable items, or $0.64 of segment earnings excluding the $5.3 million securities gain. We are planning to decrease our asset size as of December 31, 2017 so we can further strengthen our capital ratios and continue to meet the small issuer exemption rules of the Durbin Amendment until July 1, 2019, if needed,” continued Mr. Sidhu. “We are disappointed about our financial results for Q3 2017 but believe Customers is very well positioned to cross the $10 billion mark again in 2018 and continue building above average shareholder value,” concluded Mr. Sidhu.

Other financial and business highlights for Q3 2017 compared to Q3 2016 include:

• Total loans outstanding, including commercial loans held for sale, increased $0.8 billion, or 9.0%, to $9.2 billion as of September 30, 2017 compared to total loans of $8.4 billion as of September 30, 2016. 
  
  
• Commercial and industrial loans, excluding commercial loans to mortgage companies, increased $302 million to $1.6 billion, up 24.2% over September 30, 2016, multi-family loans increased $594 million to $3.8 billion, up 18.7 percent over September 30, 2016,  commercial non-owner-occupied real estate loans increased only $87 million to $1.2 billion, consumer loans increased $193 million to $0.5 billion, and commercial loans to mortgage companies decreased $407 million to $2.0 billion.
  
  
• Total deposits increased by $208 million, or 2.8%, to $7.6 billion as of September 30, 2017 compared to total deposits of $7.4 billion as of September 30, 2016.  Non-interest bearing demand deposit accounts increased $346 million to $1.4 billion, interest bearing demand deposit accounts increased $161 million to $362 million, money market deposit accounts increased $329 million to $3.5 billion, and certificates of deposit accounts decreased $629 million to $2.3 billion.
  
  
• Q3 2017 net interest income of $68.0 million increased $3.4 million, or 5.3%, from net interest income for Q3 2016 as average interest earning assets increased $1.2 billion. The Q3 2017 net interest margin narrowed by 21 basis points from Q3 2016 to 262 basis points. The net interest margin compression largely resulted from a nearly $1.5 million reduction in prepayment penalties in the multi-family portfolio.  Net interest margin was also impacted by Customers Bancorp's issuance of 3.95% senior notes on June 30, 2017 and a one-time interest expense adjustment of approximately $0.3 million.
  
  
• Customers’ Q3 2017 provision for loan losses totaled $2.4 million compared to a provision expense of $0.1 million in Q3 2016.  The Q3 2017 provision expense included $1.4 million for loan portfolio net growth and a $0.8 million increase for specifically identified loans. There were no significant changes in Customers' methodology for estimating the allowance for loan losses in Q3 2017.
  
  
• Non-interest income decreased $9.5 million in Q3 2017 to $18.0 million, a 34.4% decrease over Q3 2016.  Included in Q3 2017 non-interest income was an $8.3 million impairment charge related to Religare and a $5.3 million gain on sale of investment securities, while Q3 2016 had a one-time benefit of $2.2 million arising from a recovery of a previously recorded loss.
  
  
• Non-interest expenses totaled $61.0 million, an increase of $4.8 million from Q3 2016, or 8.6%.  Salaries and employee benefits increased $2.1 million, and the $4.2 million in catch-up depreciation and amortization adjustment was recorded in Q3 2017 for BankMobile assets that were previously classified as held for sale. These increases were partially offset by decreases in other real estate owned valuation adjustments and in deposit insurance assessments, non-income taxes and regulatory fees, of $0.7 million and $0.3 million, respectively.
  
  
• During Q3 2017, Customers reversed $4.6 million in expected tax benefits from previously recorded other-than-temporary impairment losses on Religare securities. Customers no longer believes that those tax benefits will be realizable as a result of the change in strategy regarding the disposition of BankMobile. Q3 2017 income tax expense of $14.9 million on pre-tax income of $22.7 million, excluding the impact of the tax benefit reversal, represents an effective tax rate of 45.4% compared to Q3 2016 income tax expense of $14.6 million on pre-tax income of $35.8 million for an effective tax rate of 40.7%. It is expected that Customers' effective tax rate will be approximately 37.25% for the remainder of 2017.
  
  
• BankMobile, previously presented as discontinued operations in the financial statements due to Customers' stated intent to sell the business, was reclassified as held and used at September 30, 2017. During Q3 2017, Customers decided that the best strategy for its shareholders for divesting BankMobile was to spin-off BankMobile to Customers’ shareholders through a spin-off/merger transaction. During Q3 2017, the BankMobile segment reported non-interest income of $13.8 million, operating expenses of $27.1 million, provision for loan losses of $0.5 million and a tax benefit of $4.1 million from the operating losses, resulting in a net loss of $6.9 million. The segment results include the funds transfer pricing benefit received by the segment for the originated deposits in the segment reporting results.
  
  
• The increase in BankMobile's non-interest expense of $7.7 million to $27.1 million in Q3 2017 as compared to $19.4 million in Q3 2016 was mainly due to the $4.2 million catch-up depreciation and amortization for BankMobile assets for the period the assets were classified as held for sale, increases in core processing system costs including system conversion expenses totaling $1.7 million, and increases in non-capitalizable software development costs of $1.4 million.
  
  
• Customers' return on average assets was 0.29% in Q3 2017 compared to 0.89% in Q3 2016, and its return on average common equity was 2.33% in Q3 2017 compared to 13.21% in Q3 2016. The adjusted return on average assets, which excludes the notable items described above (a non-GAAP measure) was 0.86% in Q3 2017 and the adjusted return on average common equity, which excludes the notable items described above (a non-GAAP measure) was 11.11% in Q3 2017.
  
  
• The Q3 2017 efficiency ratio was 68.6% compared to the Q3 2016 efficiency of 61.1%. The Q3 2017 efficiency ratio for the Community Business Banking segment was 46.9% compared to the Q3 2016 efficiency ratio of 49.6% for the segment.
  
  
• The book value and tangible book value (a non-GAAP measure) per common share increased to $22.51 and $21.98 per share, respectively, at September 30, 2017, both reflecting a CAGR of 12% over the past five years.
  
  
• Based on Customers Bancorp, Inc.'s September 30, 2017 closing stock price of $32.62, Customers was trading at approximately 1.5 times tangible book value per common share.

Q3 2017 compared to Q2 2017:

Customers’ Q3 2017 net income to common shareholders decreased $16.0 million, or 79.4%, to $4.1 million from net income to common shareholders of $20.1 million for the second quarter of 2017 ("Q2 2017").  The $16.0 million decrease in Q3 2017 net income compared to Q2 2017 net income resulted primarily from the following quarter-over-quarter changes:

• The $0.6 million decrease in net interest income in Q3 2017 was principally attributable to lower prepayment penalties and other adjustments of approximately $1.7 million in Q3 2017 when compared to Q2 2017.
  
  
• The $1.8 million increase in provision for loan losses in Q3 2017 compared to Q2 2017 resulted principally from higher provisions for loan portfolio growth of $1.4 million and a $0.8 million increase for specifically identified loans. There were no significant changes in Customers' methodology for estimating the allowance for loan losses in Q3 2017.
  
  
• Non-interest income, excluding the $5.3 million and $3.2 million gains realized from the sale of investment securities in Q3 2017 and Q2 2017, respectively, and the impairment charges of $8.3 and $2.9 million recognized on Religare in Q3 2017 and Q2 2017, respectively, increased  by $2.9 million in Q3 2017 to $21.0 million, compared to $18.1 million in Q2 2017. The Q3 2017 increase resulted primarily from increases in interchange and card revenue of $0.9 million, gains on sale of Small Business Administration ("SBA") and other loans of $0.6 million, deposit fees of $0.5 million and derivative and hedging related items of $0.2 million. The second quarter has lower seasonal activity for the BankMobile student disbursement business which resulted in the increase in interchange and card revenue during Q3 2017.
  
  
• The $10.6 million increase in non-interest expenses in Q3 2017 compared to Q2 2017 resulted primarily from the $4.2 million charge in Q3 2017 relating to the catch-up amount of depreciation and amortization expense resulting from the reclassification of BankMobile assets from held for sale to held and used. Salaries and employee benefits and professional services increased by a combined $2.3 million while core processing system costs increased by $1.9 million and non-capitalizable costs related to BankMobile software development increased by $0.8 million.
  
  
• The $2.6 million increase in income tax expense in Q3 2017 compared to Q2 2017 was primarily due to the reversal of $4.6 million in expected tax benefits from previously recorded other-than-temporary impairment losses on Religare securities and the Q3 2017 other-than-temporary impairment on the same securities which no tax benefit was recorded because of the change in the disposition strategy for BankMobile as previously described.
  
  
• BankMobile, which was reclassified from held for sale to held and used in Q3 2017, had a pre-tax loss of $13.7 million, before considering funds transfer pricing, an increase of 62% from Q2 2017 as a result of lower deposit balances in student accounts and the recapture of $4.2 million of depreciation and amortization charges deferred while the business was classified as held for sale.  Segment reporting results, which consider income taxes and a transfer of interest income from the Community Business Banking segment to the BankMobile segment of $2.7 million in the third quarter for the use of low/no cost deposits, indicates a Q3 2017 BankMobile after-tax segment loss of $6.9 million.
  
  
• The increase in BankMobile's non-interest expense of $7.2 million to $27.1 million in Q3 2017 as compared to $19.8 million in Q2 2017 was mainly due to the $4.2 million catch-up depreciation and amortization for BankMobile assets for the period the assets were classified as held for sale, increases in core processing system costs including system conversion expenses totaling $1.0 million, increases in non-capitalizable software development costs of $0.8 million, as well as increases in legal fees and external professional services of $1.2 million.

The following table presents a summary of key earnings and performance metrics for the quarter ended September 30, 2017 and the preceding four quarters, respectively:

Capital

Customers recognizes the importance of not only being well capitalized in the current regulatory environment but to have adequate capital buffers to absorb any unexpected shocks.  "Our capital ratios generally held steady for the risk-based capital ratios during Q3 2017 as the growth in the loan portfolio was offset by a decline in the securities portfolio," stated Mr. Sidhu.  "We continue to target a Tier I leverage capital ratio of 9.0% or higher and a total risk-based capital ratio of around 13.0%, but we also need to take advantage of strong loan growth opportunities when available to us," Mr. Sidhu continued.  For the quarter ending September 30, 2017, Customers is preliminarily calculating its Tier 1 leverage ratio at 8.35% and its total risk-based capital ratio at 12.39%.  "As we shrink our balance sheet by about $500 million during the fourth quarter of 2017 and anticipate strong earnings in the quarter, we expect to reach closer to targeted capital levels at year end 2017 and future years as we retain earnings, limit asset growth to a level supported by earnings, or raise capital when considered prudent," concluded Mr. Sidhu.

BankMobile

BankMobile, a division of Customers Bank, operates a branchless digital bank offering low cost banking services to its 1.2 million active deposit customers. BankMobile has opened over 480,000 new checking accounts, and converted over 374,000 checking accounts to BankMobile, since June 16, 2016.  Deposit balances were $781 million at September 30, 2017, including $778 million of non-interest bearing deposit accounts.  Customers has stated its intent to spin-off and then merge the BankMobile business in 2018.

Managing Commercial Real Estate Concentration Risks and Providing High Net Worth Families Loans for Their Multi-Family Holdings

Customers' loans collateralized by multi-family properties were approximately 327% of total risk-based capital at September 30, 2017, compared to 345% of total risk-based capital at September 30, 2016.  Recognizing the risks that accompany certain elements of commercial real estate ("CRE") lending, Customers has as part of its core strategies studiously sought to limit its risks and has concluded that it has appropriate risk management systems in place to manage this portfolio. Customers' total real estate construction and development exposure, arguably the riskiest area of CRE, was only $87 million at September 30, 2017.

Customers' multifamily exposures are focused principally on loans to high net worth families collateralized by multi-family properties that are of modest size and subject to what Customers believes are conservative underwriting standards. Customers believes it has a strong risk management process to manage the portfolio risks prospectively and that this portfolio will perform well even under a stressed scenario. Following are some unique characteristics of Customers' multi-family loan portfolio:

• Principally concentrated in New York City and principally to high net worth families;
  
  
• Average loan size is $6.8 million;
  
  
• Median annual debt service coverage ratio is 137%;
  
  
• Median loan-to-value is 67.75%;
  
  
• All loans are individually stressed with an increase of 1% and 2% to the cap rate and an increase of 1.5% and 3% in loan interest rates;
  
  
• All properties are inspected prior to a loan being granted and monitored thereafter on an annual basis by dedicated portfolio managers; and
  
  
• Credit approval process is independent of customer sales and portfolio management process.

Customers' total CRE loan exposures subject to regulatory concentration guidelines include construction loans of $87 million, multi-family loans of $3.8 billion, and non-owner occupied commercial real estate loans of $1.2 billion, which represent 437% of total risk-based capital on a combined basis.

Asset Quality and Interest Rate Risk

Risk management is a critical component of how Customers creates long-term shareholder value, and Customers believes that two of the most important risks of banking to be understood and managed in an uncertain economy are asset quality and interest rate risk.

Customers believes that asset quality risks must be diligently addressed during good economic times with prudent underwriting standards so that when the economy deteriorates the bank's capital is sufficient to absorb all losses without threatening its ability to operate and serve its community and other constituents. "Customers adopted prudent underwriting standards in 2010 when the current management team assumed responsibility for building the Bank and has not compromised those standards," stated Mr. Sidhu. "Customers' non-performing loans at September 30, 2017 were only 0.33% of total loans, compared to our peer group non-performing loans of approximately 0.88% of total loans at September 30, 2017, and industry average non-performing loans of 1.42% of total loans at September 30, 2017.  Our expectation is superior asset quality performance in good times and in difficult years," said Mr. Sidhu.

"Customers' objective is to manage the estimated effect of future interest rate changes, up or down, to about a neutral effect on net interest income, so not speculating on whether interest rates go up or down.  At September 30, 2017, we were approximately neutral in our likely interest rate forecasts," said Mr. Sidhu.  "The margin compression year over year was principally caused by $1.5 million lower prepayment fees from the multi-family loan portfolio during Q3 2017 compared to Q3 2016.  To address the risk of rate compression, Customers has altered its strategy for dealing with a flat yield curve by being very disciplined about pricing and selling lower yielding assets as the yield curve normalizes in the future," concluded Mr. Sidhu.  

Diversified Loan Portfolio

Customers is a Business Bank that principally focuses on private banking for loan and deposit services, covering four lending activities; commercial and industrial loans to privately held businesses, multi-family loans principally to high net worth families, selected commercial real estate loans, and commercial loans and banking services to privately held mortgage companies. Commercial and industrial loans, including owner-occupied commercial real estate loans, and commercial loans to mortgage companies, were approximately $3.6 billion at September 30, 2017. Multi-family loans, or loans to high net worth families, were also approximately $3.8 billion at September 30, 2017. Non-owner occupied commercial real estate loans were approximately $1.2 billion at September 30, 2017. Consumer and residential mortgage loans make up only about 5% of the loan portfolio.

Please dial in at least 10 minutes before the start of the call to ensure timely participation.  A playback of the call will be available beginning October 25, 2017 at 8:00PM ET until 8:00PM ET on November 24, 2017. To listen, call within the United States (888)-203-1112 or 719-457-0820 when calling internationally. Please use the replay pin number 8954747.

Institutional Background

Customers Bancorp, Inc. is a bank holding company located in Wyomissing, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank.  Customers Bank is a community-based, full-service bank with assets of approximately $10.5 billion that was named by Forbes magazine as the 35th Best Bank in America (there are over 6,200 banks in the United States).  A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender that provides a range of banking services to small and medium-sized businesses, professionals, individuals and families through offices in Pennsylvania, New York, Rhode Island, Massachusetts, New Hampshire and New Jersey.  Committed to fostering customer loyalty, Customers Bank uses a High Tech/High Touch strategy that includes use of industry-leading technology to provide customers better access to their money, as well as Concierge Banking® by appointment at customers’ homes or offices 12 hours a day, seven days a week. Customers Bank offers a continually expanding portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.

Customers Bancorp, Inc.'s voting common shares are listed on the New York Stock Exchange under the symbol CUBI.  Additional information about Customers Bancorp, Inc. can be found on the Company’s website, www.customersbank.com.

“Safe Harbor” Statement

In addition to historical information, this press release may contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the 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," 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 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. In addition, important factors relating to the acquisition of the Disbursements business, the combination of Customers’ BankMobile business with the acquired Disbursements business, the implementation of Customers Bancorp, Inc.'s strategy regarding BankMobile, the possibility that the anticipated purchase agreement between Customers Bancorp, Inc. and related entities and Flagship Community Bank may not be executed, the possibility of events, changes or other circumstances occurring or existing that could result in the planned spin-off and merger of BankMobile not being completed, the possibility that the planned spin-off and merger of BankMobile may be more expensive to complete than anticipated, the possibility that the expected benefits of the planned transactions to Customers and its shareholders may not be achieved, the possibility of Customers incurring liabilities relating to the disposition of BankMobile, the possible effects on Customers' results of operations if the planned spin-off and merger of BankMobile are not completed in a timely fashion or at all, or that Customers' assets which are now in excess of $10 billion are not reduced to below $10 billion as of December 31, 2017 also could cause Customers Bancorp's actual results to differ from those in the forward-looking statements.  Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management's current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Customers Bancorp, Inc.'s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K for the year ended December 31, 2016, subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Customers Bancorp, Inc. or by or on behalf of Customers Bank.

At September 30, 2017, Customers anticipates that cash, securities, or loans (or a combination thereof) with a market value equal to the amount of BankMobile deposits at the time the planned disposition closes will be transferred separately in the combined entity as a result of the contemplated spin-off and merger transaction.

Customers believes that the non-GAAP measurements disclosed within this document are useful for investors, regulators, management and others to evaluate our results of operations and financial condition relative to other financial institutions. These non-GAAP financial measures exclude from corresponding GAAP measures the impact of certain elements that we do not believe are representative of our financial results, which we believe enhance an overall understanding of our performance. Investors should consider our performance and financial condition as reported under GAAP and all other relevant information when assessing our performance or financial condition. Although non-GAAP financial measures are frequently used in the evaluation of a company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results of operations or financial condition as reported under GAAP.

The following tables present reconciliations of GAAP to Non-GAAP measures disclosed within this document.

Contacts:
Jay Sidhu, Chairman & CEO 610-935-8693
Richard Ehst, President & COO 610-917-3263
Investor Contacts:
Robert Wahlman, CFO 610-743-8074
Bob Ramsey, Director of Investor Relations and Strategic Planning 484-926-7118