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Customers Bancorp (334) Q3 2026 Earnings Report

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DE:334 Q3 2026 EPS Results

Actual EPS
EUR 2.04
Consensus EPS
EUR 1.94
Beat/Miss
Beat by +EUR 0.10
One Year Ago EPS
EUR 2.00

DE:334 Q3 2026 Revenue Results

Actual Revenue
EUR 363.41M
Expected Revenue
EUR 215.16M
Beat/Miss
Beat by +EUR 148.25M
YoY Revenue Growth
+2.37%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/22/2026
Time
After Close
Conference Call
Thursday, October 22, 2026
DE:334 Upcoming Earnings

Customers Bancorp's next earnings date is estimated for January 28, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

DE:334 Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 22, 2026|% Change Since:13.53%|
Earnings Call Sentiment|Positive

The call was strongly positive, characterized by record deposits and loans, higher net interest income and EPS, improved profitability and efficiency, strong credit quality and capital, measurable AI productivity gains, expanding cubiX diversification, successful recruiting, and raised or tightened full-year guidance. The main challenges were a planned fourth-quarter expense increase, somewhat more tepid commercial real estate demand, timing-related limits on third-quarter margin expansion, lower balances in certain loan businesses, and potential borrower pressure from future rate resets.

Company Guidance

For 2026, Customers Bancorp now expects loan growth to be 12% or higher, deposits to finish up 9% or more, net interest income of $805 million to $810 million, noninterest expenses of $460 million to $465 million, and income taxes of 22% to 23%; the company expects continued net interest income and margin expansion going forward, a step up in expenses in the fourth quarter due to incentive compensation as well as investment in technology initiatives and deposit growth, and a low forties run rate efficiency ratio by the end of 2027, while 2027 guidance will be provided on the January call.

  • Record Balance-Sheet Growth and Strong Quarterly ResultsThird-quarter deposits grew 4% sequentially and 11% year over year to a record $22.6 billion, while loans grew 3% sequentially and 14% year over year to a record $18.5 billion. Net interest income increased 8% quarter over quarter, EPS was $2.25, up 10% quarter over quarter, ROE rose to 14%, and the efficiency ratio improved approximately 340 basis points.
  • Deposit Quality ImprovedNoninterest-bearing deposits increased by $300 million to $7.2 billion, a third consecutive quarterly record, representing 32% of total deposits and increasing more than $800 million, or 13%, year over year. Total cost of deposits remained flat despite the Federal Reserve's increase in interest rates, while broker deposits declined about $370 million and represented less than 20% of deposits.
  • Diversified Loan GrowthLoans increased nearly $500 million, or 3%, during the quarter, compared with 1% linked-quarter growth for the industry, and were up 14% year over year. Growth was led by fund finance, health care, and commercial real estate, which more than offset lower mortgage warehouse and real estate specialty finance balances.
  • Net Interest Income and Margin MomentumNet interest income exceeded $208 million, increasing $15 million, or 8%, from the second quarter, driven by higher average loan and security balances and higher interest spread. Net interest margin expanded 2 basis points to 3.19%, while the September run-rate net interest margin was approximately 3.25%. Management said the spread between gross loan originations and deposit inflows was about 4% and expects continued net interest income and margin expansion.
  • Strong Profitability and Operating EfficiencyThird-quarter ROE and ROA were 14% and 1.16%, respectively. Noninterest expense declined $1.5 million from the second quarter to $113.4 million, noninterest expense as a percentage of average assets was 1.68%, and the efficiency ratio improved approximately 340 basis points. Management remains focused on reaching a low forties run-rate efficiency ratio by the end of 2027.
  • AI Underwriting AutomationThe bank scaled its AI-powered loan underwriting process by adding functionality and increasing utilization. The process cycle time is down 95%, which management said will allow the same team to handle significantly more loan throughput.
  • AI-Enabled Commercial Deposit OnboardingThe bank piloted a rebuilt commercial deposit onboarding process in 10 weeks. The process allows complex commercial accounts to be opened in minutes instead of days at other institutions and represents a greater than 90% reduction in cycle time.
  • AI and Automation Deployment ExpandedThe bank launched voice agents on its main customer service line, is incorporating them into customer onboarding, expanded an AI digital-twin pilot to more employees, and piloted an automated consumer savings sweep. More than 60 people are focused on AI transformation, with 12 and growing forward-deployed engineers from partners working alongside in-house engineers and subject-matter experts.
  • Measurable AI Productivity GainsThe team doubled the number of AI agents deployed. Cumulative estimated hours saved reached 76,000, and the bank unlocked an estimated $15 million or more of annualized capacity. Revenue per employee increased 13% and pretax profit per employee increased 34% on an annualized basis versus last year; management said the bank ranked number 1 and number 4, respectively, among $10 billion to $100 billion asset banks on those metrics.
  • cubiX Diversification and Network ActivitycubiX accounts grew 19% in the third quarter, with real estate and mortgage finance driving new client growth. Those verticals represented more than 30% of cubiX deposit balances, while network activity was on pace to surpass the prior year's $2 trillion volume record. Total non-digital-asset cubiX balances were about $1.4 billion.
  • cubiX Product ExpansionThe bank enabled programmable subaccounts on cubiX, supporting existing clients and broadening potential agentic-payment use cases. It is also developing extended-hours trading capabilities for capital markets and correspondent banking services supporting cross-border flows and 24/7 money movement.
  • Successful Team Recruitment and Deposit GrowthTeams recruited since 2023 held $4.3 billion in deposits, or 19% of the total deposit base, after adding roughly $415 million in the third quarter and more than $1 billion year to date. Their share of deposits increased more than 6-fold in about three years through organic recruiting.
  • Commercial Account and Revenue-Producer ExpansionThe bank added more than 3,000 commercial deposit accounts year to date, exceeding the total achieved in all of 2025. This represented 13% growth year to date, with accounts roughly doubling since 2022. Fifteen revenue producers joined in the third quarter, bringing year-to-date revenue-producing hires to 50 across 12 teams, up 50% from last year.
  • Strong Capital and Tangible Book Value GrowthTangible book value per share increased to $65.66, up 10% year over year and approximately 2.5 times the level at the end of 2019, representing a CAGR of roughly 15% versus about 5% for regional bank peers. The estimated CET1 ratio was 12.6%, tangible common equity to tangible assets was 8%, and the bank repurchased nearly 500,000 shares, or about 1.5% of common stock, during the quarter.
  • Strong Credit PerformanceNonperforming assets declined 8% quarter over quarter to 29 basis points of total assets, below the regional-bank peer median of 36 basis points. Total net charge-offs improved to 28 basis points from 34 basis points in the prior quarter, while commercial charge-offs were 13 basis points.
  • Raised Full-Year Growth GuidanceBased on year-to-date performance and the strength and breadth of the platform, management raised full-year loan-growth guidance to 12% or higher. Deposit balances are expected to finish up 9% or more in 2026, even after deliberately moving out about $1 billion of higher-cost deposits.
  • Tightened Full-Year Financial GuidanceThe bank tightened full-year net interest income guidance to $805 million to $810 million and expects noninterest expense of $460 million to $465 million and an income-tax rate of 22% to 23%. Management described the guidance as supporting a strong finish to 2026 and a strong springboard into 2027.
  • Favorable Deposit Beta and New-Loan EconomicsSince the September rate hike, the deposit beta was about 33%, compared with approximately 60% during the prior rate upcycle. The overall cost of deposits brought in by commercial teams remained in the low twos range, third-quarter new loan volume yields were about 6.83, and the September 30 spot deposit cost was 2.47.
  • Regulatory Milestone and Risk-Management ProgressThe Pennsylvania Department of Banking and Securities lifted its consent order. Management said the regulatory agreements, including those with the Federal Reserve, are essentially unchanged, but characterized the lifting as an important milestone and said risk management is becoming a real strength.
  • Digital-Asset Network ResilienceManagement reported no material change in customer activity from perceived competition and said the cubiX network continues to benefit from a broad, diverse network and network effects. Digital-asset deposits were approximately $3.1 billion, and management said the network remains noninterest-bearing.
  • AI Partnerships and Transformation RoadmapPalantir is working with the bank on complex commercial deposit onboarding, data ontology, and related capabilities alongside the bank's engineers. OpenAI work remains focused on lending, while deposits and payments are the other two top-down AI domains. Management said all three domains are now being developed concurrently as part of a broader transformation project building momentum into 2027.
  • Strong Commercial Loan DemandManagement said loan demand remained strong at the franchise and in the industry, with strong customer activity generally over the next 30 to 90 days. Most loan growth occurred in September, which management said provided a favorable setup for fourth-quarter average loan balances.

DE:334 Earnings History

DE:334 earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Jan 28, 20272026 (Q4)2.06-1.8――
Oct 22, 20262026 (Q3)1.942.0422.27% (+0.05)
Jul 23, 20262026 (Q2)1.811.861.5718.50% (+0.29)
Apr 23, 20262026 (Q1)1.711.790.26579.31% (+1.52)
Jan 22, 20262025 (Q4)1.841.800.64178.87% (+1.15)
Oct 23, 20252025 (Q3)1.732.001.1967.94% (+0.81)
Jun 30, 20252025 (Q2)1.391.571.514.22% (+0.06)
Apr 24, 20252025 (Q1)1.180.261.27-79.29% (-1.01)
Jan 23, 20252024 (Q4)1.080.641.62-60.34% (-0.98)
Oct 31, 20242024 (Q3)1.301.192.34-49.22% (-1.15)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed