Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: N/A
• Average Volume (3M): 377.25K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.29
• Revenue Growth: -7.45%
• EPS Growth: -45.67%
• Country: US
• Employees: 787
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.73
• Shares Outstanding: 33,822,970
• 10 Day Avg. Volume: 379,761
• 30 Day Avg. Volume: 377,253
• PEG Ratio: -0.29
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 19.20
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 2.66
• Enterprise Value/Gross Profit: 6.03
• Enterprise Value/Ebitda: 15.65
• 1Y Price Target: $79.43
• Price Target Upside: 20.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $76.00 ▲(15.45% Upside)

Customers Bancorp's overall stock score is driven by strong earnings call sentiment and solid technical indicators. While financial performance shows mixed results, effective cash generation and strategic initiatives provide a positive outlook. The stock's valuation is reasonable, though the lack of a dividend yield is a minor drawback.

Positive Factors

cubix Platform Expansion

The expansion of the cubix platform enhances the bank's competitive edge, driving customer engagement and supporting long-term growth.

Leadership Transition

The planned CEO transition to Sam Sidhu ensures leadership continuity, aligning with strategic growth and stability objectives.

Strong Free Cash Flow Growth

Robust cash flow growth highlights effective cash generation, supporting strategic investments and financial resilience.

Negative Factors

Declining Revenue Growth

Significant revenue decline poses challenges for sustaining growth and profitability, impacting long-term financial health.

Increased Professional Fees

Rising professional fees indicate higher operational costs, potentially affecting profitability and cost management efforts.

Challenges with Brokered Deposits

Reducing reliance on brokered deposits is crucial for stability, but challenges in achieving this may affect liquidity management.

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 loans, which constitutes a significant portion of its earnings. The bank provides various types of loans, including commercial and industrial loans, real estate loans, and consumer loans. Additionally, Customers Bancorp earns income from fees related to deposit accounts, transaction services, and other banking services. Other revenue streams include mortgage banking activities, where the company earns fees from originating and servicing mortgage loans. The company also benefits from partnerships with fintech firms and other organizations that enhance its product offerings and expand its customer base, contributing to its overall financial performance.

Customers Bancorp Financial Statement Overview

Summary

Customers Bancorp exhibits mixed financial performance with declining revenue growth but maintains solid operational margins and a stable balance sheet. Strong free cash flow growth is a highlight, indicating effective cash generation.

Income Statement

Customers Bancorp has shown a decline in revenue growth, with a negative growth rate of -61.7% in the TTM period. Margins have also decreased, with the gross profit margin at 44.04% and net profit margin at 11.44%. Despite these challenges, the company maintains a reasonable EBIT margin of 13.39% and EBITDA margin of 16.96%, indicating operational efficiency.

Balance Sheet

The company has a manageable debt-to-equity ratio of 0.79, reflecting a stable leverage position. Return on equity is moderate at 8.01%, suggesting decent profitability relative to shareholder equity. The equity ratio stands at 8.27%, indicating a solid equity base relative to total assets.

Cash Flow

Customers Bancorp has demonstrated strong free cash flow growth of 82.43% in the TTM period. The operating cash flow to net income ratio is low at 2.17%, but the free cash flow to net income ratio is robust at 79.37%, highlighting effective cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.36B	1.42B	895.10M	844.61M	600.55M
Gross Profit	567.98M	614.05M	666.33M	573.38M	721.38M	398.16M
EBITDA	218.79M	257.93M	362.55M	318.45M	462.88M	208.27M
Net Income	147.51M	181.47M	250.14M	228.03M	314.65M	132.58M
Balance Sheet
Total Assets	22.55B	22.31B	21.32B	20.90B	19.58B	18.44B
Cash, Cash Equivalents and Short-Term Investments	4.18B	5.81B	6.25B	3.44B	4.34B	1.90B
Total Debt	1.48B	1.41B	1.51B	1.11B	1.18B	1.41B
Total Liabilities	20.69B	20.47B	19.68B	19.49B	18.21B	17.32B
Stockholders Equity	1.86B	1.84B	1.64B	1.40B	1.37B	1.12B
Cash Flow
Free Cash Flow	328.64M	79.87M	83.39M	-134.17M	238.21M	123.23M
Operating Cash Flow	414.07M	145.06M	124.73M	-20.82M	271.16M	152.02M
Investing Cash Flow	-1.27B	-1.01B	3.16B	-1.30B	-1.20B	-6.42B
Financing Cash Flow	1.31B	800.62M	108.09M	1.26B	754.77M	6.75B

Customers Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 65.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUBI, the sentiment is Neutral. The current price of 65.83 is below the 20-day moving average (MA) of 68.47, below the 50-day MA of 66.11, and above the 200-day MA of 55.76, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 22.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CUBI.

Customers Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	78 Outperform	1.97B	10.44	14.59%	2.48%	4.15%	4.39%
NIC	76 Outperform	1.94B	15.01	11.40%	0.92%	8.38%	26.81%
FBNC	75 Outperform	2.21B	22.67	6.25%	1.67%	-2.04%	-14.82%
CUBI	74 Outperform	$2.25B	16.41	8.17%	―	-7.45%	-45.67%
HTH	73 Outperform	2.14B	15.21	6.52%	2.09%	3.16%	27.33%
CASH	71 Outperform	1.71B	10.06	20.05%	0.27%	6.51%	13.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Customers Bancorp Corporate Events

Customers Bancorp Unveils New Investor Presentation

Customers Bancorp, Inc. announced that it will use a new presentation during investor meetings starting September 8, 2025. The presentation includes forward-looking statements about the company’s strategies, financial condition, and future performance, highlighting potential risks and uncertainties in the banking industry. The announcement underscores the company’s efforts to manage risks and maintain a robust liquidity position, which could impact its operations and stakeholder relationships.

Customers Bancorp Completes Successful Stock Offering

On September 3, 2025, Customers Bancorp, Inc. announced the successful closing of an underwritten public offering of 2,189,781 shares of its voting common stock at $68.50 per share, raising approximately $172.5 million in gross proceeds. The offering, managed by Morgan Stanley, Keefe, Bruyette & Woods, and Raymond James, supports the company’s strategic initiatives for organic growth and capital investments, with net proceeds of $163.9 million after underwriting discounts and commissions.

Customers Bancorp Announces CEO Transition Plan

On July 25, 2025, Customers Bancorp announced that Jay Sidhu will retire as CEO and transition to Executive Chairman effective January 1, 2026, with Sam Sidhu succeeding him as CEO. Sam Sidhu, who has been with the company since 2020, will continue his roles as President of the Company and Customers Bank. The transition includes a performance-based incentive plan for Sam Sidhu, with stock units vesting based on stock price performance and continued employment until 2031, reflecting the company’s strategic focus on leadership continuity and growth.

Customers Bancorp Reports Strong Q2 2025 Financial Results

Customers Bancorp reported its financial results for the second quarter of 2025, highlighting a net income of $55.8 million and core earnings of $58.1 million. The company experienced significant growth in loans and deposits, with a notable increase in net interest margin due to higher interest income from loan growth. The bank’s strategic focus on enhancing its deposit franchise and managing interest expenses has strengthened its market position. Asset quality remains robust, with a low ratio of non-performing assets and a strong liquidity position. The company redeemed all outstanding shares of its Series E Preferred Stock and continues to recruit new teams, positioning itself for continued success.