Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: N/A
• Average Volume (3M): 314.45K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.32
• Revenue Growth: -7.45%
• EPS Growth: -45.67%
• Country: US
• Employees: 787
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 1.73
• Shares Outstanding: 31,623,490
• 10 Day Avg. Volume: 230,842
• 30 Day Avg. Volume: 314,448
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 6.08
• Enterprise Value/Ebitda: 16.17
• 1Y Price Target: $74.00
• Price Target Upside: 3.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 79 Outperform
• Price Target: $76.00 ▲(6.01% Upside)

Customers Bancorp's stock is rated positively due to strong financial performance and positive earnings call sentiment. The technical indicators support a bullish outlook, though caution is advised due to valuation concerns and potential overbought signals. The company's strategic initiatives and leadership transitions further enhance its growth prospects.

Positive Factors

Earnings

CUBI reported 2Q25 results with core EPS of $1.80, beating consensus mainly due to a much wider net interest margin.

Financial Performance

Guidance for loan growth and net interest income was increased, implying strong performance in the second half of 2025.

Management

The transition in management is seen as a positive, ensuring the continuation of CUBI's excellent performance.

Negative Factors

Valuation

CUBI's current trading level is depressed due to the regulatory agreement, affecting its valuation.

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

The company's financial performance is solid, with a stable gross and net profit margin. The balance sheet shows financial stability with low leverage, and cash flow analysis indicates strong cash generation. However, declining revenue growth and potential cash flow volatility pose risks.

Income Statement

The income statement reflects moderate performance with a stable gross profit margin of 43.4% and a net profit margin of 11.1% for TTM (Trailing-Twelve-Months). However, there is a decline in revenue growth of -4.64% from the previous year, indicating potential challenges in maintaining revenue momentum. EBIT and EBITDA margins are healthy at 13.2% and 16.3% respectively, suggesting efficient cost management.

Balance Sheet

The balance sheet demonstrates financial stability with a low debt-to-equity ratio of 0.76, indicating conservative leverage. The return on equity (ROE) stands at 7.8%, reflecting decent profitability relative to equity. The equity ratio is 8.3%, indicating a solid equity base relative to total assets, which enhances financial resilience.

Cash Flow

Cash flow analysis shows positive trends with a significant free cash flow growth rate of 125.6% in the TTM period. The operating cash flow to net income ratio is 1.78, suggesting strong cash generation relative to earnings. Despite these strengths, caution is warranted due to potential volatility in cash flow related to financing activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.42B	895.10M	844.61M	600.55M
Gross Profit	614.05M	666.33M	573.38M	721.38M	398.16M
EBITDA	257.93M	362.55M	318.45M	462.88M	208.27M
Net Income	181.47M	250.14M	228.03M	314.65M	132.58M
Balance Sheet
Total Assets	22.31B	21.32B	20.90B	19.58B	18.44B
Cash, Cash Equivalents and Short-Term Investments	5.81B	6.25B	3.44B	4.34B	1.90B
Total Debt	1.41B	1.51B	1.11B	1.18B	1.41B
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	79.87M	83.39M	-134.17M	238.21M	123.23M
Operating Cash Flow	145.06M	124.73M	-20.82M	271.16M	152.02M
Investing Cash Flow	-1.01B	3.16B	-1.30B	-1.20B	-6.42B
Financing Cash Flow	800.62M	108.09M	1.26B	754.77M	6.75B

Customers Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 71.69 is above the 20-day moving average (MA) of 66.21, above the 50-day MA of 63.68, and above the 200-day MA of 54.71, indicating a bullish trend. The MACD of 2.27 indicates Negative momentum. The RSI at 74.01 is Negative, neither overbought nor oversold. The STOCH value of 96.85 is Negative, 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
CUBI	79 Outperform	$2.27B	17.73	8.17%	―	-7.45%	-45.67%
OFG	78 Outperform	$1.99B	10.55	15.20%	2.46%	4.15%	4.39%
NIC	78 Outperform	$2.05B	15.87	11.89%	0.87%	8.38%	26.81%
CASH	76 Outperform	$1.90B	10.52	22.79%	0.25%	3.78%	14.13%
FBNC	74 Outperform	$2.26B	23.26	6.53%	1.63%	-2.04%	-14.82%
HTH	73 Outperform	$2.21B	15.78	6.62%	2.02%	3.16%	27.33%
Sector *	68 Neutral	$17.88B	11.68	10.28%	3.72%	9.78%	1.27%

Customers Bancorp Corporate Events

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.

Customers Bancorp Announces Leadership Transition with New CFO

On May 28, 2025, Customers Bancorp, Inc. announced a leadership transition with Philip Watkins moving to a new role as Executive Vice President, Head of Corporate Development and Investor Relations, effective around August 15, 2025. Mark McCollom, with over 35 years of experience in finance and strategy, will take over as Executive Vice President, Chief Financial Officer of the company. The transition is part of the company’s strategic initiatives to bolster long-term growth, and McCollom’s appointment is expected to enhance the company’s financial leadership and operational strategy.

Customers Bancorp Board Member Announces Retirement Plan

On May 27, 2025, Daniel K. Rothermel, a long-serving board member of Customers Bancorp, announced his intention to retire following the 2026 Annual Meeting of Shareholders. His decision is not due to any disagreements with the company’s operations or policies. At the 2025 Annual Meeting, shareholders voted on various proposals, including the reelection of directors and the ratification of Deloitte & Touche LLP as the independent accounting firm for the fiscal year ending December 31, 2025. The meeting also included an advisory vote on executive compensation.