Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: N/A
• Average Volume (3M): 321.70K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.45
• Revenue Growth: -5.61%
• EPS Growth: -44.11%
• Country: US
• Employees: 787
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 31,587,793
• 10 Day Avg. Volume: 206,340
• 30 Day Avg. Volume: 321,703
• PEG Ratio: -0.01
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.97
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: $68.00
• Price Target Upside: 26.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Customers Bancorp demonstrates strong financial health with significant revenue growth and a solid balance sheet. Despite challenges in profitability metrics, the company is well-positioned for future growth as indicated by the positive earnings call. Technical analysis presents near-term challenges with bearish signals. Overall, the stock's reasonable valuation and strong earnings outlook make it attractive, albeit with some caution due to market volatility.

Positive Factors

Earnings

CUBI reported higher-than-expected earnings per share mainly due to a wider net interest margin and growth in net interest income.

Management and Strategy

Senior management took 100% of 2024 bonuses in stock, aligning their interests with those of shareholders.

Stock Valuation

The stock price target has been raised to $80, reflecting a very positive outlook.

Negative Factors

Financial Performance

CUBI reported 3Q24 results with core EPS of $1.34, missing consensus of $1.43 due to a much narrower NIM than guidance and added professional expenses from complying with a regulatory agreement.

Performance Expectations

Initial 2025 guidance suggests weaker performance in the first half of the year due to new banking teams not being immediately profitable and elevated expenses from a regulatory agreement.

Regulatory Impact

CUBI's current trading level is depressed due to the regulatory agreement, affecting its valuation.

Customers Bancorp Business Overview & Revenue Model

Company Description

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. The company offers deposits products, including checking, savings, MMDA, and other deposits accounts. It offers loan products, including commercial mortgage warehouse loans, multi-family and commercial real estate loans, business banking, small business loans, equipment financing, residential mortgage loans, and installment loans. It also offers traditional banking activities, including mobile phone banking, internet banking, wire transfers, electronic bill payment, lock box services, remote deposit capture services, courier services, merchant processing services, cash vault, controlled disbursements, positive pay, cash management services, such as account reconciliation, collections, and sweep accounts. It operates 12 full-service branches, as well as limited production and administrative offices in Southeastern Pennsylvania, including Bucks, Berks, Chester, Philadelphia, and Delaware Counties; Harrisburg, Pennsylvania; Rye Brook and New York; Hamilton, New Jersey; Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; Washington D.C.; Chicago, Illinois; Dallas, Texas; Orlando, Florida; and Wilmington, North Carolina. Customers Bancorp, Inc. was founded in 1994 and is headquartered in West Reading, Pennsylvania.

How the Company Makes Money

Customers Bancorp generates revenue primarily through interest income from its lending activities, including commercial real estate loans, commercial and industrial loans, and consumer loans. The company earns interest on the loans it provides to businesses and individuals, which constitutes a significant portion of its income. Additionally, Customers Bancorp earns non-interest income through fees and service charges associated with its deposit accounts, cash management services, and other banking activities. The bank also benefits from strategic partnerships and its focus on digital banking solutions, which help in attracting and retaining a diverse client base, thereby contributing to its overall earnings.

Customers Bancorp Financial Statement Overview

Summary

Customers Bancorp shows strong revenue growth and maintains a solid financial position with no debt in 2024. The company demonstrates efficient cash flow management, although there are concerns regarding the declining net profit margin and return on equity. Overall, the financial health of Customers Bancorp is robust, with room for improvement in profitability metrics.

Income Statement

Customers Bancorp has demonstrated strong revenue growth with an impressive increase from $683 million in 2023 to $1.33 billion in 2024, resulting in a revenue growth rate of 94%. The gross profit margin remains high at 100% due to financial services nature. However, the net profit margin declined from 37% to 14%, indicating increased expenses or reduced efficiency. The EBIT margin remained robust at 99.7% in 2024.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 8.2% in 2024, supported by a rising stockholders' equity. The absence of total debt in 2024 indicates a solid financial base. However, the return on equity has decreased from 15.3% in 2023 to 9.9% in 2024, suggesting challenges in generating returns for shareholders.

Cash Flow

Operating cash flow decreased slightly from $125 million in 2023 to $115 million in 2024, while free cash flow grew significantly due to capital expenditure management. The free cash flow to net income ratio improved from 33% to 63%, indicating better cash generation relative to net income. However, the operating cash flow to net income ratio is less favorable at 0.64, showing room for improvement.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.33B	683.40M	632.38M	748.54M	502.28M
	Gross Profit
687.50M	683.40M	632.38M	748.54M	502.28M
	EBIT
1.32B	406.34M	552.95M	401.59M	175.96M
	EBITDA
0.00	360.64M	318.45M	462.88M	208.27M
	Net Income Common Stockholders
181.47M	250.14M	228.03M	314.65M	132.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.08B	3.85B	3.44B	4.34B	1.90B
	Total Assets
22.31B	21.32B	20.90B	19.58B	18.44B
	Total Debt
1.41B	1.53B	1.41B	1.10B	1.16B
	Net Debt
-2.38B	-2.34B	949.73M	586.73M	462.08M
	Total Liabilities
20.47B	19.68B	19.49B	18.21B	17.32B
	Stockholders Equity
1.84B	1.64B	1.40B	1.37B	1.12B
Cash Flow		Free Cash Flow
116.00M	83.39M	-134.17M	238.21M	104.16M
	Operating Cash Flow
145.06M	124.73M	-20.82M	271.16M	133.03M
	Investing Cash Flow
-1.01B	3.16B	-1.30B	-1.20B	-6.42B
	Financing Cash Flow
800.62M	108.09M	1.26B	754.77M	6.77B

Customers Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 53.82 is above the 20-day moving average (MA) of 49.88, above the 50-day MA of 49.25, and above the 200-day MA of 50.59, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 63.33 is Neutral, neither overbought nor oversold. The STOCH value of 75.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CUBI.

Customers Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWBI	76 Outperform	$1.62B	14.17	7.19%	6.31%	6.27%	-12.50%
CUBI	74 Outperform	$1.72B	13.53	8.14%	―	-5.61%	-44.11%
FCF	74 Outperform	$1.69B	11.91	9.91%	3.24%	6.33%	―
FBNC	69 Neutral	$1.76B	20.13	6.03%	2.07%	-2.00%	-23.84%
LKFN	68 Neutral	$1.57B	17.57	13.44%	3.19%	5.03%	-3.19%
Sector *	64 Neutral	$12.75B	9.93	7.86%	17015.07%	12.19%	-5.92%
CLBK	48 Neutral	$1.59B	97.23	-0.15%	―	4.29%	-109.93%

Customers Bancorp Corporate Events

Customers Bancorp Reports Q1 2025 Financial Results

Customers Bancorp reported its first quarter 2025 financial results, highlighting a net income of $9.5 million and core earnings of $50 million. The company undertook a securities portfolio repositioning to improve liquidity and benefit margins amidst economic uncertainty. Total loans and leases grew by $611.7 million, and deposits increased by $86.5 million. The company emphasizes its strong liquidity position and minimal exposure to high-risk commercial real estate, positioning itself for continued growth and stability.

Spark’s Take on CUBI Stock

According to Spark, TipRanks’ AI Analyst, CUBI is a Outperform.

Customers Bancorp’s overall score reflects strong financial performance and positive earnings outlook, bolstered by robust revenue growth and effective cost management. The technical analysis presents near-term challenges due to negative market momentum, which is offset by the stock’s attractive valuation. The positive sentiment from the latest earnings call further enhances the stock’s appeal, suggesting potential for future growth.

To see Spark’s full report on CUBI stock, click here.

Rajeev V. Date Resigns from Customers Bancorp Board

On March 28, 2025, Rajeev V. Date, a member of the boards of directors of Customers Bancorp, Inc. and its subsidiary Customers Bank, announced his resignation effective March 31, 2025, to focus on other commitments at Fenway Summer LLC and Circle Internet Group, Inc. Mr. Date’s decision to step down is not due to any disagreements with the company’s operations or policies, and he has been a director since 2022, serving on various committees.