Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $2.50B
• Dividend Yield: N/A
• Average Volume (3M): 277.84K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 1.38
• Revenue Growth: -0.37%
• EPS Growth: -20.30%
• Country: US
• Employees: 787
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.20
• Shares Outstanding: 34,168,076
• 10 Day Avg. Volume: 356,533
• 30 Day Avg. Volume: 277,838
• 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: 1.49
• Enterprise Value/Revenue: 2.89
• Enterprise Value/Gross Profit: 6.57
• Enterprise Value/Ebitda: 17.04
• 1Y Price Target: $86.00
• Price Target Upside: 15.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $79.00 ▲(5.83% Upside)

Customers Bancorp's overall stock score is driven by strong earnings call performance and positive technical indicators. Financial performance is solid, though revenue growth challenges persist. Valuation is fair, but the lack of a dividend yield is a drawback. Corporate events further bolster the company's strategic position.

Positive Factors

Strong Deposit Growth

The significant increase in deposits strengthens the bank's liquidity position, enabling more lending opportunities and supporting long-term growth.

Improved Efficiency

Sustained improvements in efficiency ratios indicate better cost management and operational effectiveness, enhancing profitability over time.

Enhanced Capital Position

A stronger capital position provides financial stability and flexibility, allowing the bank to pursue strategic initiatives and withstand economic fluctuations.

Negative Factors

Revenue Growth Decline

A significant decline in revenue growth can hinder the company's ability to expand and compete, potentially impacting long-term financial health.

Interest Rate Sensitivity

High sensitivity to interest rate changes can lead to volatility in earnings, affecting the bank's profitability and financial stability.

High Uninsured Deposits

An increase in uninsured deposits poses a risk in financial instability scenarios, potentially leading to liquidity challenges and customer trust issues.

Customers Bancorp Business Overview & Revenue Model

Company Description

Customers Bancorp, Inc. (CUBI) is a bank holding company based in Wyomissing, Pennsylvania. It operates through its wholly-owned subsidiary, Customers Bank, which provides a range of banking services including commercial and retail banking, lending, and deposit products. The bank primarily serves small to mid-sized businesses, as well as consumers, with a focus on innovative banking solutions and technology-driven services. CUBI operates in various sectors including commercial lending, residential mortgage lending, and investment banking, catering to a diverse clientele across the United States.

How the Company Makes Money

Customers Bancorp generates revenue primarily through interest income from loans and investments, as well as non-interest income from various banking services. The key revenue streams include commercial loans, residential mortgages, and consumer loans, which yield interest payments over time. Additionally, the bank earns fees from service charges, overdrafts, and other financial products. Strategic partnerships with fintech companies enhance its digital banking services, allowing for increased customer acquisition and retention. The bank's focus on specialized lending niches, such as the healthcare sector and technology startups, further diversifies its revenue sources and contributes to its overall earnings.

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: 74.65
• 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 74.65 is above the 20-day moving average (MA) of 69.98, above the 50-day MA of 67.69, and above the 200-day MA of 60.11, indicating a bullish trend. The MACD of 1.80 indicates Negative momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 86.53 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
CASH	79 Outperform	$1.66B	9.43	21.81%	0.27%	7.80%	19.38%
OFG	78 Outperform	$1.85B	9.58	14.82%	2.73%	3.98%	6.75%
NIC	78 Outperform	$1.95B	14.08	12.25%	0.94%	6.21%	19.23%
FBNC	75 Outperform	$2.22B	22.44	6.39%	1.69%	-5.72%	-3.86%
CUBI	74 Outperform	$2.50B	15.12	8.99%	―	-0.37%	-20.30%
HTH	71 Outperform	$2.14B	13.92	7.31%	2.07%	5.21%	53.15%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Customers Bancorp Corporate Events

Customers Bancorp Announces Series F Stock Redemption

On October 30, 2025, Customers Bancorp announced the full redemption of its Series F Preferred Stock, totaling 3.4 million shares, effective December 15, 2025. This move, aimed at optimizing the company’s capital structure and enhancing long-term profitability, follows the company’s strategic efforts to improve shareholder value and reflects its strong capital position and liquidity levels.

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.

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.