Customers Bancorp (CUBI)
NYSE:CUBI
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Customers Bancorp
(NYSE:CUBI)
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Rating:72Outperform
Price Target:
$84.00
▲(8.50% Upside)
Action:Reiterated
Date:05/29/26
Overall score reflects improving fundamentals and a strong earnings-call backdrop (reaffirmed growth guidance, solid Q1 metrics) plus a constructive technical setup (above major moving averages). Valuation is supportive with a low P/E, while cash-flow variability, slightly higher leverage, and potential dilution/compensation scrutiny temper the rating.
Positive Factors
Deposit franchise strength
A large, growing base of low‑cost, noninterest‑bearing deposits materially strengthens funding durability and net interest margin resilience over time. Sustained 14% YoY deposit growth reduces reliance on wholesale funding, supports organic loan growth, and underpins stable liquidity and capital planning.
Negative Factors
NIM and yield mix pressure
Persistent pressure from lower‑yielding new loan production and nonrepeatable accretion income can compress net interest margin even as balances grow. Over months, this erodes core profitability per dollar of assets and necessitates higher volume or fee income to offset margin dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit franchise strength
A large, growing base of low‑cost, noninterest‑bearing deposits materially strengthens funding durability and net interest margin resilience over time. Sustained 14% YoY deposit growth reduces reliance on wholesale funding, supports organic loan growth, and underpins stable liquidity and capital planning.
Read all positive factors
Customers Bancorp (CUBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.46B
Dividend YieldN/A
Average Volume (3M)392.49K
Price to Earnings (P/E)9.1
Beta (1Y)1.35
Revenue Growth9.32%
EPS Growth97.60%
CountryUS
Employees787
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.14
Shares Outstanding33,825,090
10 Day Avg. Volume321,063
30 Day Avg. Volume392,488
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.18
Price to Sales (P/S)1.77
P/FCF Ratio5.20
Enterprise Value/Market Cap1.77
Enterprise Value/Revenue2.90
Enterprise Value/Gross Profit5.30
Enterprise Value/Ebitda10.16
Forecast
1Y Price Target
$88.50Price Target Upside14.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)8.45
Revenue Forecast (FY)$939.89M
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...
How the Company Makes Money
Customers Bancorp primarily makes money through Customers Bank’s core banking activities. The largest driver is typically net interest income: the bank earns interest and fees on loans and interest-earning assets (e.g., commercial and consumer loa...
Customers Bancorp Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance: robust deposit and loan growth, record noninterest-bearing balances, meaningful AI adoption and productivity gains, positive operating leverage (300 bps efficiency improvement) and strong earnings/capital metrics (core EPS +28% YoY; TBV/share +16% YoY). Management also disclosed proactive initiatives (Operational Excellence Phase 2 to $30M run-rate) and a clear strategy to expand cubiX beyond digital assets. Lowlights are manageable: some margin pressure from mix and non-repeating items, modest decline in average cubiX balances, an isolated NPA reclassification and a cautious reserve build driven by macro uncertainty. Overall, the positives materially outweigh the challenges, with high conviction in continued organic growth, deposit diversification and AI-driven scale.Positive Updates
Strong Deposit Growth and Quality
Period-end deposits reached $21.6 billion, up $2.7 billion or ~14% year-over-year (management also referenced 16% growth annualized). Average total deposit cost declined 8 basis points to 2.46%, and cost of interest-bearing deposits fell 18 basis points. Noninterest-bearing deposits hit a record $6.7 billion (over 31% of total deposits) and grew by over $400 million in the quarter (including ~$200 million from digital assets and ~ $230 million from traditional commercial relationships).
Negative Updates
Net Interest Margin Pressure and Loan Yield Mix
Management noted an expected sequential decline in net interest income and margin driven by roughly $10 million of accretion income in the prior quarter that did not repeat and a lower day count in Q1. New loan production tends to price below the current blended loan yield (management noted commercial yields with new production often 225–300 bps over SOFR), which can create downward pressure on NIM even as NII grows via balance growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Deposit Growth and Quality
Period-end deposits reached $21.6 billion, up $2.7 billion or ~14% year-over-year (management also referenced 16% growth annualized). Average total deposit cost declined 8 basis points to 2.46%, and cost of interest-bearing deposits fell 18 basis points. Noninterest-bearing deposits hit a record $6.7 billion (over 31% of total deposits) and grew by over $400 million in the quarter (including ~$200 million from digital assets and ~ $230 million from traditional commercial relationships).
Read all positive updates
Company Guidance
Management reaffirmed its full‑year 2026 outlook across key metrics: they are sticking with loan and deposit growth guidance of roughly 8%–12% for the year, expect net interest income to grow 7%–11% versus 2025, and keep noninterest expense guidance at $440–$460 million (2%–6% growth), with no changes to capital or tax‑rate targets; they also raised their operational excellence savings goal to $30 million run‑rate (Phase 1 $20M achieved, +$10M Phase 2). Management highlighted that this guidance is underpinned by Q1 results and momentum — core EPS $1.97 (+28% YoY), core ROE 13.1%, core ROA 1.13%, a 300‑bp improvement in the efficiency ratio, tangible book value per share $63.54 (+16% YoY), TCE 8.3% (+60 bps YoY), total deposits $21.6B (+14% YoY) with record noninterest‑bearing deposits $6.7B (>31% of deposits), total loans $17.4B (≈15% annualized growth), and near‑term cubiX pipeline expected to drive about $250M of additional noninterest‑bearing deposit growth.Customers Bancorp Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
66
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.50B | 1.41B | 1.36B | 1.42B | 895.10M | 844.61M |
| Gross Profit | 822.11M | 729.84M | 614.05M | 666.33M | 573.38M | 721.38M |
| EBITDA | 428.63M | 351.62M | 257.93M | 362.55M | 318.45M | 462.88M |
| Net Income | 280.83M | 224.09M | 181.47M | 250.14M | 228.03M | 314.65M |
Balance Sheet | ||||||
| Total Assets | 25.88B | 24.90B | 22.31B | 21.32B | 20.90B | 19.58B |
| Cash, Cash Equivalents and Short-Term Investments | 89.15M | 62.05M | 5.81B | 6.25B | 3.44B | 4.34B |
| Total Debt | 1.90B | 1.71B | 1.41B | 1.51B | 1.11B | 1.18B |
| Total Liabilities | 23.74B | 22.78B | 20.47B | 19.68B | 19.49B | 18.21B |
| Stockholders Equity | 2.14B | 2.12B | 1.84B | 1.64B | 1.40B | 1.37B |
Cash Flow | ||||||
| Free Cash Flow | 295.07M | 481.02M | 79.87M | 83.39M | -134.17M | 238.21M |
| Operating Cash Flow | 435.71M | 494.76M | 145.06M | 124.73M | -20.82M | 271.16M |
| Investing Cash Flow | -2.18B | -2.06B | -1.01B | 3.16B | -1.30B | -1.20B |
| Financing Cash Flow | 3.12B | 2.19B | 800.62M | 108.09M | 1.26B | 754.77M |
Customers Bancorp Technical Analysis
Negative
77.42
Price Trends
74.32
Negative
73.54
Negative
71.18
Positive
Market Momentum
-0.20
Positive
43.46
Neutral
22.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUBI, the sentiment is Negative. The current price of 77.42 is above the 20-day moving average (MA) of 74.81, above the 50-day MA of 74.32, and above the 200-day MA of 71.18, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 43.46 is Neutral, neither overbought nor oversold. The STOCH value of 22.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.64B | 9.04 | 22.34% | 0.27% | 4.92% | 14.55% | |
76 Outperform | $1.89B | 9.21 | 15.62% | 2.73% | 4.29% | 15.77% | |
74 Outperform | $2.37B | 20.26 | 7.47% | 1.69% | 3.15% | 38.23% | |
72 Outperform | $2.46B | 9.09 | 13.62% | ― | 9.32% | 97.60% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $2.80B | 15.13 | 9.01% | 0.99% | 15.32% | 3.03% | |
60 Neutral | $2.11B | 13.61 | 7.42% | 2.08% | 4.27% | 33.70% |
* Financial Sector Average
CUBI
Customers Bancorp
74.93
24.21
47.73%
FBNC
First Bancorp
59.43
19.20
47.72%
HTH
Hilltop Holdings
37.13
8.47
29.56%
CASH
Pathward Financial
79.05
3.09
4.07%
OFG
OFG Bancorp
45.96
6.07
15.23%
NIC
Nicolet Bankshares
136.23
21.56
18.80%
Customers Bancorp Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Customers Bancorp Shareholders Expand Equity Incentive Plan Capacity
Positive
May 28, 2026
At its May 26, 2026 annual meeting, Customers Bancorp shareholders approved an amendment to the 2019 Stock Incentive Plan, increasing authorized common shares under the plan by 750,000 to 4,070,325 and raising the cap on non-employee director comp...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Customers Bancorp Posts Strong Q1 2026 Results, Growth
Positive
Apr 23, 2026
Customers Bancorp reported strong first-quarter 2026 results on April 23, 2026, with net income available to common shareholders of $69.7 million, or $1.97 per diluted share, and core earnings essentially in line. The bank delivered ROAA of 1.13%,...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Customers Bancorp CEO Outlines Vision for Accelerated Growth
Positive
Apr 15, 2026
On April 15, 2026, Customers Bancorp released its first annual shareholder letter from new Chief Executive Officer Sam Sidhu, who formally succeeded founder Jay Sidhu on January 1, 2026 following a multiyear succession plan. The letter stresses co...
Business Operations and StrategyExecutive/Board Changes
Customers Bancorp Adopts New Supplemental Executive Retirement Plan
Positive
Mar 24, 2026
On March 19, 2026, Customers Bancorp, Inc. adopted a new Supplemental Executive Retirement Plan for CEO Samvir Sidhu, replacing a prior version established in 2021 and structured as a nonqualified, unfunded deferred compensation arrangement under ...
Executive/Board Changes
Customers Bancorp announces planned retirement of board member
Neutral
Mar 23, 2026
On March 20, 2026, Customers Bancorp announced that board member Robert N. Mackay will retire from the boards of both Customers Bancorp, Inc. and Customers Bank and will not stand for reelection at the company’s 2026 Annual Meeting of Shareh...
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.