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Customers Bancorp
(NYSE:CUBI)
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Rating:67Neutral
Price Target:
$83.00
▲(5.68% Upside)
Action:Downgraded
Date:10/23/26
The score is driven primarily by moderate financial statement quality (solid profitability but elevated volatility in revenue, rising leverage, and uneven cash-flow trends). Offsetting this, the latest earnings call points to improving H2 NII/NIM momentum with strong loan/deposit growth and robust capital/credit metrics. Valuation is a positive contributor due to a low P/E, while technical signals are mixed with negative MACD and only modest trend support.
Positive Factors
Loan and Deposit Growth
Sustained growth in both loans and deposits indicates expanding commercial banking relationships and a scalable funding franchise. The combination supports future net interest income, improves operating leverage, and strengthens Customers Bancorp’s competitive position among regional banks over the next several quarters.
Negative Factors
Revenue Volatility
The sharp top-line contraction signals that reported revenue generation has been volatile, which weakens earnings visibility even as current margins and net income have recovered. Persistent variability could complicate planning, reduce confidence in recurring earnings power, and make future growth less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan and Deposit Growth
Sustained growth in both loans and deposits indicates expanding commercial banking relationships and a scalable funding franchise. The combination supports future net interest income, improves operating leverage, and strengthens Customers Bancorp’s competitive position among regional banks over the next several quarters.
Read all positive factors
Customers Bancorp (CUBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.57B
Dividend YieldN/A
Average Volume (3M)289.16K
Price to Earnings (P/E)9.0
Beta (1Y)1.28
Revenue Growth11.55%
EPS Growth103.48%
CountryUS
Employees866
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.49
Shares Outstanding33,783,800
10 Day Avg. Volume263,322
30 Day Avg. Volume289,160
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)1.18
Price to Sales (P/S)1.77
P/FCF Ratio7.49
Enterprise Value/Market Cap1.96
Enterprise Value/Revenue3.38
Enterprise Value/Gross Profit6.05
Enterprise Value/Ebitda11.40
Forecast
1Y Price Target
$94.71Price Target Upside20.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)8.44
Revenue Forecast (FY)$933.93M
Customers Bancorp Business Overview & Revenue Model
Company Description
Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides banking products and services. It provides deposit banking products, which includes commercial and consumer checking, non-interest-bearing and interest-b...
How the Company Makes Money
Customers Bancorp primarily makes money through its banking subsidiary by earning interest income on loans and investment securities and paying interest on deposits and other funding sources; the difference between these amounts (net interest inco...
Customers Bancorp Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call highlighted strong, broad-based growth (record loans and deposits, double-digit EPS and tangible book value growth), meaningful operational and AI-driven productivity gains, and growing scale in the cubiX payments platform. Credit metrics and capital remain robust. The main near-term headwinds were a Q2 NIM trough, softer digital-asset trading reducing payments float, and moderate pressure from new-loan yields. Overall, management reiterated guidance and expressed confidence in H2 momentum driven by deposit pipelines, loan growth, and operational savings.Positive Updates
Record Loan Growth
Total loans grew 4% sequentially and 17% year-over-year to a record $18.0 billion, driven by diversified commercial originations (CRE, real estate specialty finance, community C&I) and strong pipelines.
Negative Updates
Quarterly NIM Pressure
Net interest margin of 3.17% was described as the low point for 2026, reflecting margin compression versus earlier periods. Management expects NIM to rebound but Q2 represented a trough.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Loan Growth
Total loans grew 4% sequentially and 17% year-over-year to a record $18.0 billion, driven by diversified commercial originations (CRE, real estate specialty finance, community C&I) and strong pipelines.
Read all positive updates
Company Guidance
Management reaffirmed guidance for loans, deposits, NII, non‑interest expense and capital/taxes and expects stronger NII and margin momentum in H2: Q2 NII was ~$193M with NIM at 3.17% (called the low point for 2026) and management expects NIM to move back toward Q1 levels with NII stronger in the back half. Loans were $18.0B (+4% linked quarter, +17% YoY) and deposits $21.7B (+$2.7B YoY) with non‑interest‑bearing deposits at $6.9B (32% of total, +$175M Q2), supporting low‑cost funding and the view that loan growth is skewed to the higher end of the range. Expense guidance is unchanged despite continued investment: Q2 noninterest expense was $114.9M, OE2 delivered a $30M run‑rate, and the bank targets a low‑40s efficiency ratio in 2027 (vs ~50% today). Capital and credit targets remain intact: CET1 12.8%, TCE/TA 8.3%, EPS $2.05, ROE 13.2%, ROA 1.13%, net charge‑offs 18 bps, reserve coverage 293%. Management also reaffirmed cubiX expectations—after surpassing $5T cumulative transactions and processing >200k internal transfers YTD (2x YoY), with real‑estate volume up ~7x and spot balances ~+$400M—and sees cubiX and team recruiting driving continued deposit and NII growth into 2027.Customers Bancorp Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
61
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49B | 1.41B | 1.36B | 1.42B | 895.10M | 844.61M |
| Gross Profit | 834.00M | 729.84M | 614.05M | 666.33M | 573.38M | 721.38M |
| EBITDA | 442.41M | 352.57M | 257.93M | 362.55M | 318.45M | 462.88M |
| Net Income | 291.45M | 224.09M | 181.47M | 250.14M | 228.03M | 314.65M |
Balance Sheet | ||||||
| Total Assets | 26.52B | 24.90B | 22.31B | 21.32B | 20.90B | 19.58B |
| Cash, Cash Equivalents and Short-Term Investments | 85.55M | 62.05M | 5.81B | 6.25B | 3.44B | 4.34B |
| Total Debt | 2.37B | 1.71B | 1.41B | 1.51B | 1.11B | 1.18B |
| Total Liabilities | 24.32B | 22.78B | 20.47B | 19.68B | 19.49B | 18.21B |
| Stockholders Equity | 2.21B | 2.12B | 1.84B | 1.64B | 1.40B | 1.37B |
Cash Flow | ||||||
| Free Cash Flow | 262.46M | 333.70M | 79.87M | 83.39M | -134.17M | 238.21M |
| Operating Cash Flow | 380.86M | 494.76M | 145.06M | 124.73M | -20.82M | 271.16M |
| Investing Cash Flow | -3.36B | -2.06B | -1.01B | 3.16B | -1.30B | -1.20B |
| Financing Cash Flow | 3.66B | 2.19B | 800.62M | 108.09M | 1.26B | 754.77M |
Customers Bancorp Technical Analysis
Positive
78.54
Price Trends
77.53
Negative
77.62
Negative
75.65
Positive
Market Momentum
-0.61
Negative
53.01
Neutral
79.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUBI, the sentiment is Positive. The current price of 78.54 is above the 20-day moving average (MA) of 74.96, above the 50-day MA of 77.53, and above the 200-day MA of 75.65, indicating a neutral trend. The MACD of -0.61 indicates Negative momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 79.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CUBI.
Customers Bancorp Risk Analysis
Customers Bancorp disclosed 2 risk factors in its most recent earnings report. Customers Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Customers Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.47B | 10.71 | 9.51% | 3.46% | 35.64% | 113.53% | |
74 Outperform | $2.68B | 12.55 | 11.26% | 2.93% | 14.46% | 46.91% | |
71 Outperform | $2.94B | 9.39 | 11.00% | 4.26% | 3.72% | 35.18% | |
69 Neutral | $2.52B | 12.33 | 7.54% | 3.65% | 5.05% | -19.06% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.57B | 8.99 | 13.57% | ― | 11.55% | 103.48% | |
67 Neutral | $2.35B | 10.41 | 8.95% | 4.61% | 72.75% | -46.35% |
* Financial Sector Average
CUBI
Customers Bancorp
76.31
10.76
16.41%
BBT
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28.00
4.92
21.31%
BUSE
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29.77
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FRME
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39.96
4.87
13.87%
NBTB
NBT Bancorp
51.45
12.45
31.92%
PFS
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22.54
4.82
27.18%
Customers Bancorp Corporate Events
Business Operations and StrategyFinancial Disclosures
Customers Bancorp posts strong Q3 results, highlights AI
Positive
Oct 22, 2026
On October 22, 2026, Customers Bancorp reported strong third-quarter 2026 results, delivering net income available to common shareholders of $78.4 million, or $2.25 per diluted share, with ROAA of 1.16% and ROCE of 14.0%. Total deposits reached a ...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Customers Bancorp Updates CFO Employment Agreement Terms
Neutral
Jul 27, 2026
On July 24, 2026, Customers Bancorp amended and restated the employment agreement of Executive Vice President and Chief Financial Officer Mark R. McCollom, largely retaining the original terms while changing the contract to automatically renew eac...
Business Operations and StrategyFinancial Disclosures
Customers Bancorp Reports Strong AI-Driven Second-Quarter Results
Positive
Jul 23, 2026
Customers Bancorp reported strong financial results for the second quarter of 2026, with net income available to common shareholders of $71.6 million, or $2.05 per diluted share, and core earnings essentially in line. Loans and leases held for inv...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.