Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $1.49B
• Dividend Yield: N/A
• Average Volume (3M): 318.53K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.63
• Revenue Growth: -3.61%
• EPS Growth: -29.58%
• Country: US
• Employees: 787
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 5.08
• Shares Outstanding: 31,467,243
• 10 Day Avg. Volume: 363,345
• 30 Day Avg. Volume: 318,532
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.45
• Price to Cash Flow (P/CF): 3.00
• P/FCF Ratio: 1.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $69.50
• Price Target Upside: 58.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Customers Bancorp demonstrates strong financial growth and strategic positioning, supported by solid earnings call guidance. Technical indicators suggest cautious market sentiment, but the company's attractive valuation underscores its potential. Despite operational challenges, the overall outlook remains positive with a focus on efficiency and growth.

Positive Factors

Earnings

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

Management Alignment

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

Valuation

CUBI's shares are considered undervalued, trading at a multiple below the average bank valuations, offering significant upside potential to the revised price target.

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.

Guidance

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 Challenges

CUBI entered into a Written Agreement with the Federal Reserve owing to significant deficiencies in AML/BSA related to its digital asset business.

Customers Bancorp Business Overview & Revenue Model

Company Description

Customers Bancorp, Inc. (CUBI) is a bank holding company that operates primarily through its subsidiary, Customers Bank. The company provides a range of banking and financial services to small and medium-sized businesses, professionals, individuals, and families. Its core offerings include commercial and consumer loans, deposit products, and cash management services. Customers Bancorp focuses on delivering high-quality, technology-driven banking solutions to its clients, leveraging digital platforms to enhance customer experience and operational efficiency.

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.

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
1.33B	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
-56.79M	-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
116.00M	124.73M	-20.82M	271.16M	133.03M
	Investing Cash Flow
-418.00K	3.16B	-1.30B	-1.20B	-6.42B
	Financing Cash Flow
-62.20M	108.09M	1.26B	754.77M	6.77B

Customers Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 43.89 is below the 20-day moving average (MA) of 49.25, below the 50-day MA of 52.20, and below the 200-day MA of 51.28, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 45.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUBI.

Customers Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUBI	75 Outperform	$1.49B	8.63	10.44%	―	-3.61%	-29.58%
NWBI	71 Outperform	$1.47B	14.68	6.36%	6.95%	7.67%	-25.85%
FCF	67 Neutral	$1.51B	10.62	10.49%	3.51%	11.61%	-9.42%
LKFN	67 Neutral	$1.45B	15.33	14.02%	3.66%	9.38%	-0.59%
FBNC	64 Neutral	$1.58B	20.71	5.38%	2.44%	-1.53%	-27.00%
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
CLBK	50 Neutral	$1.44B	97.23	-1.10%	―	6.89%	-132.77%

Customers Bancorp Corporate Events

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.

Customers Bancorp Reports Strong 2024 Financial Results

Customers Bancorp reported its fourth quarter and full year 2024 financial results, highlighting significant growth in deposits and loans. The company achieved a net income of $23.3 million in Q4 2024 and $166.4 million for the full year, driven by strategic deposit inflows and securities portfolio repositioning. Enhancements in deposit management led to cost reductions and increased non-interest-bearing deposits. Despite repositioning its securities portfolio, the company maintained strong liquidity and asset quality, with a modest increase in non-performing assets. Customers Bancorp’s strategic investments and disciplined risk management are expected to position the company for continued success in the future.