Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on CUBI

Customers Bancorp's recent performance was negatively impacted by a securities investigation initiated by Bronstein, Gewirtz & Grossman, LLC. The law firm is investigating potential claims on behalf of purchasers of Customers Bancorp securities prior to March 1, 2024. This investigation could lead to potential regulatory or legal issues, which may negatively impact the company's financials and reputation.

1.c. Company Highlights

2. Customers Bancorp's 2025 Earnings: A Strong Foundation for Future Growth

Customers Bancorp reported a robust set of earnings for the fourth quarter and full-year 2025, with core EPS reaching $7.61, up from $5.60 in 2024. The company's deposits grew by $2 billion or 10% in 2025, driven by new commercial banking teams adding $1.6 billion in deposits. In Q4, core EPS was $2.06, with a core ROE of 13.8% and ROA of about 1.2%. Net interest income increased 22% year-over-year to $204 million, and the net interest margin expanded by 29 basis points to 3.4%. The efficiency ratio improved significantly, dropping by over 6 percentage points.

Publication Date: Mar -09

📋 Highlights
  • Core EPS Surge: Rose to $7.61 in 2025 (up 35.8% y-o-y from $5.60 in 2024).
  • Deposit Growth Acceleration: Added $2B (10% y-o-y) in 2025, driven by $1.6B from new commercial teams.
  • Net Interest Income Expansion: NII jumped 22% to $204M in Q4, with NIM up 29 bps to 3.4%.
  • Tangible Book Value Surge: Reached $61.77/share (14% y-o-y growth), up 3% sequentially.
  • Stock Price Outperformance: Shares rose >50% in 2025, top bank stock of the year.

Deposit and Loan Growth

Total deposits grew almost $400 million during Q4, ending at just under $21 billion. The deposit beta in the quarter was 54%, and 71% on interest-bearing deposits only. Loans grew by 15% in 2025, contributing to the record net interest income. The company's focus on commercial banking and its successful addition of new teams drove deposit growth, with a significant portion coming from non-digital asset cubiX-related deposit growth.

Capital Strength and Shareholder Value

The company further strengthened its capital position with a successful sub-debt issuance, providing $100 million of additional Tier 2 capital. The tangible common equity ratio reached 8.5%, and tangible book value per share grew to $61.77, up 3% sequentially or 14% annualized. The company's return on equity increased by 450 basis points, while capital levels increased by 500 basis points.

Guidance and Outlook for 2026

Looking ahead to 2026, the company is targeting loan growth of 8-12%, deposit growth of 8-12%, and net interest income of $800-830 million. Noninterest expenses are projected to be $440-460 million, and the company is targeting a common equity Tier 1 ratio of 11.5-12.5% and an effective tax rate of 23-25%. The company assumes no major contribution from digital assets balances to deposit growth in 2026, with a focus on core commercial bank growth.

Valuation and Future Prospects

With a current P/TBV ratio of around 1.09, and considering the company's growth prospects, the valuation appears reasonable. The stock has outperformed in 2025, with a stock price increase of over 50%. As the company continues to focus on its organic growth story, leveraging AI to deliver enhanced client experience and productivity gains, it is well-positioned for long-term success. Analysts estimate next year's revenue growth at 9.0%, indicating a positive outlook for the company's future performance.

3. NewsRoom

Card image cap

Customers Bancorp Announces Common Stock Repurchase Plan

Feb -11

Source: businesswire.com

Card image cap

Customers Bank Named to Forbes ‘America's Best Banks' List for 2026

Feb -10

Source: businesswire.com

Card image cap

Customers Bancorp: A Growth Bank Story With Legs

Feb -03

Source: seekingalpha.com

Card image cap

Customers Bank Joins Qualia's Bank Partner Network

Feb -02

Source: businesswire.com

Card image cap

Customers Bank Appoints Stephen Wyremski as Chief Operating Officer

Jan -26

Source: businesswire.com

Card image cap

Customers Bancorp (NYSE:CUBI) Shares Gap Down – Time to Sell?

Jan -25

Source: defenseworld.net

Card image cap

Customers Bancorp Q4 Earnings Call Highlights

Jan -25

Source: defenseworld.net

Card image cap

Customers Bancorp, Inc. (CUBI) Q4 2025 Earnings Call Transcript

Jan -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Banking and Related Activities

Expected Growth: 4.0%

Customers Bancorp's 4.0% growth in Banking and Related Activities is driven by increased loan originations, expansion of commercial banking services, and strategic partnerships. Additionally, the company's focus on digital transformation, cost savings initiatives, and a favorable interest rate environment have contributed to its growth momentum.

7. Detailed Products

Commercial Banking

Provides a range of commercial banking services, including cash management, lending, and deposit services, to small and medium-sized businesses.

Consumer Banking

Offers a variety of consumer banking products, including checking and savings accounts, credit cards, and personal loans.

Mortgage Banking

Provides mortgage lending services, including residential and commercial mortgage loans, to individuals and businesses.

BankMobile

Offers a digital banking platform, providing mobile banking, online banking, and mobile deposit services.

Custodial Services

Provides custodial services, including safekeeping, reporting, and settlement services, to institutional clients.

8. Customers Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Customers Bancorp, Inc. is medium because while there are some alternatives to traditional banking services, they are not yet widely adopted and do not pose a significant threat to the company's business model.

Bargaining Power Of Customers

The bargaining power of customers for Customers Bancorp, Inc. is low because the company's customers are primarily small businesses and individuals who do not have significant bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Customers Bancorp, Inc. is medium because while the company relies on a few large suppliers for its technology and infrastructure, it also has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants for Customers Bancorp, Inc. is low because of the significant regulatory barriers to entry in the banking industry, as well as the need for significant capital and infrastructure investments.

Intensity Of Rivalry

The intensity of rivalry for Customers Bancorp, Inc. is high because the banking industry is highly competitive, with many established players and low switching costs for customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.03%
Debt Cost 8.94%
Equity Weight 51.97%
Equity Cost 12.32%
WACC 10.70%
Leverage 92.41%

11. Quality Control: Customers Bancorp, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
United Bancorp

A-Score: 6.0/10

Value: 4.4

Growth: 4.9

Quality: 4.4

Yield: 10.0

Momentum: 5.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
South Plains Financial

A-Score: 5.9/10

Value: 6.5

Growth: 5.8

Quality: 6.6

Yield: 4.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Investar Holding

A-Score: 5.8/10

Value: 6.3

Growth: 5.9

Quality: 5.9

Yield: 4.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Enterprise Bancorp

A-Score: 5.7/10

Value: 6.4

Growth: 5.3

Quality: 6.7

Yield: 3.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
QCR Holdings

A-Score: 5.6/10

Value: 6.5

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Customers Bancorp

A-Score: 5.0/10

Value: 6.4

Growth: 6.9

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.64$

Current Price

66.64$

Potential

-0.00%

Expected Cash-Flows