Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: N/A
• Average Volume (3M): 300.28K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 1.42
• Revenue Growth: -0.35%
• EPS Growth: -20.30%
• Country: US
• Employees: 787
• Sector: General
• Sector Strength: N/A
• Industry: Banks - Regional
• EPS (TTM): 2.20
• Shares Outstanding: 33,822,970
• 10 Day Avg. Volume: 335,894
• 30 Day Avg. Volume: 300,277
• 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: 1.64
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: 16.86
• 1Y Price Target: $85.43
• Price Target Upside: 28.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 6.24
• Revenue Forecast (FY): $824.89M

• Rating: 70 Outperform
• Price Target: $71.00 ▲(6.49% Upside)

Customers Bancorp's overall stock score is driven by strong earnings call results, highlighting robust deposit and loan growth, and improved efficiency. Financial performance shows solid operational margins and cash flow generation, though revenue growth remains a challenge. Technical indicators suggest a neutral trend, and valuation is reasonable, though the lack of a dividend yield is a drawback.

Positive Factors

Deposit Growth

Strong deposit growth enhances liquidity and funding stability, allowing the bank to support loan growth and operational expansion.

Efficiency Improvement

Improved efficiency ratios indicate better cost management and operational effectiveness, which can lead to higher profitability over time.

Capital Position

A stronger capital position enhances financial stability and provides a buffer against economic downturns, supporting long-term growth.

Negative Factors

Revenue Decline

Declining revenue growth can hinder the company's ability to invest in new opportunities and maintain competitive positioning in the market.

Interest Rate Sensitivity

High sensitivity to interest rate changes can lead to earnings volatility, affecting financial predictability and planning.

Uninsured Deposits Risk

Increased uninsured deposits pose a risk in financial instability, potentially leading to liquidity challenges if depositor confidence wanes.

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: Positive
• Last Price: 66.67
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 66.67 is above the 20-day moving average (MA) of 66.09, below the 50-day MA of 66.79, and above the 200-day MA of 58.24, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 50.63 is Neutral, neither overbought nor oversold. The STOCH value of 25.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CUBI.

Customers Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFG	75 Outperform	$1.78B	9.09	14.82%	2.94%	3.98%	6.75%
CASH	74 Outperform	$1.54B	8.58	21.81%	0.30%	7.80%	19.38%
NIC	74 Outperform	$1.78B	12.88	12.25%	0.96%	6.21%	19.23%
HTH	71 Outperform	$2.00B	13.03	7.31%	2.18%	5.21%	53.15%
CUBI	70 Outperform	$2.25B	13.70	8.99%	―	-0.35%	-20.30%
FBNC	67 Neutral	$2.10B	21.25	6.40%	1.78%	-5.72%	-3.90%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Customers Bancorp Corporate Events

Customers Bancorp Shines in Earnings Call, Eyes Growth

Customers Bancorp’s recent earnings call conveyed an optimistic sentiment, underscored by robust financial performance. The company reported significant growth in deposits and loans, successful capital raising efforts, and improvements in efficiency and credit metrics. However, there were some concerns regarding interest rate sensitivity and the increase in uninsured deposits.

Customers Bancorp Reports Strong Q3 2025 Financial Results

Customers Bancorp reported its third quarter 2025 financial results, highlighting a net income of $73.7 million and a net interest margin increase to 3.46%. The company successfully raised $163 million in common equity, enhancing its capital position and enabling potential strategic moves such as redeeming preferred stock. The company’s asset quality remains strong, with a low non-performing asset ratio and robust reserve levels, positioning it well for future growth.

The most recent analyst rating on (CUBI) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

Customers Bancorp Expands Board with New Appointments

On September 24, 2025, Customers Bancorp, Inc. announced the appointment of four new directors to its Board, effective October 29, 2025. The new directors, Mike Gill, Robert Krasne, Susan Looney, and Dalton Sirmans, bring diverse backgrounds in law, communications, education, and venture capital. This expansion increases the Board’s size to twelve members, reflecting the company’s strategic growth and commitment to diverse leadership. The appointments are expected to enhance the company’s governance and strategic direction, with no related party transactions involved in these selections.

The most recent analyst rating on (CUBI) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

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.

The most recent analyst rating on (CUBI) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

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.

The most recent analyst rating on (CUBI) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

Customers Bancorp’s Earnings Call Highlights Robust Growth

The recent earnings call for Customers Bancorp showcased a robust financial performance, marked by impressive growth in loans, deposits, and net interest margin. The sentiment during the call was overwhelmingly positive, with a strong emphasis on the company’s strategic focus on technology and innovation. Despite facing some operational challenges, such as changes in deposit costs and a reduction in brokered deposits, the overall outlook remains optimistic.