Customers Bancorp (CUBI)
NYSE:CUBI
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Customers Bancorp
(NYSE:CUBI)
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Rating:67Neutral
Price Target:
$74.00
▲(3.18% Upside)
Action:ReiteratedDate:03/25/26
The score is driven primarily by solid (but not elite) financial performance and a strongly positive earnings-call outlook with constructive 2026 growth guidance. These strengths are tempered by weaker near-term technical momentum (negative MACD and price below key moving averages). Valuation is supportive at ~11x earnings, while recent corporate actions (buyback/leadership moves) add a modest positive tilt.
Positive Factors
Deposit franchise strength
Sustained deposit growth and rising noninterest-bearing balances materially improve funding stability and lower blended funding costs. A deeper, cheaper deposit base supports durable loan origination, NII expansion and reduces reliance on wholesale funding, underpinning multi-quarter earnings resiliency.
Negative Factors
Historic cash-flow volatility
Intermittent free cash flow undermines predictability for capital allocation, repurchases and reinvestment. While 2025 improved materially, prior negative years show earnings and cash conversion can swing with cycle and one-offs, raising the risk that funding for strategic initiatives may be uneven.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit franchise strength
Sustained deposit growth and rising noninterest-bearing balances materially improve funding stability and lower blended funding costs. A deeper, cheaper deposit base supports durable loan origination, NII expansion and reduces reliance on wholesale funding, underpinning multi-quarter earnings resiliency.
Read all positive factors
Customers Bancorp (CUBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.45B
Dividend YieldN/A
Average Volume (3M)398.19K
Price to Earnings (P/E)11.2
Beta (1Y)1.34
Revenue Growth-0.37%
EPS Growth-20.30%
CountryUS
Employees787
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.98
Shares Outstanding34,212,173
10 Day Avg. Volume272,016
30 Day Avg. Volume398,195
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)1.18
Price to Sales (P/S)1.77
P/FCF Ratio5.20
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue2.95
Enterprise Value/Gross Profit5.71
Enterprise Value/Ebitda11.85
Forecast
1Y Price Target
$89.11Price Target Upside24.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)8.27
Revenue Forecast (FY)$937.59M
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...
How the Company Makes Money
Customers Bancorp primarily makes money through Customers Bank’s core banking activities. The largest driver is typically net interest income: the bank earns interest and fees on loans and interest-earning assets (e.g., commercial and consumer loa...
Customers Bancorp Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive picture: strong earnings (core EPS +36%), double-digit tangible book value growth (~14% annualized), robust deposit gathering (≈$2B, +10%), record payments volume (> $2T, +30%) and improving NII and margins (NII +22%, NIM +29 bps). Management also delivered conservative, yet constructive, 2026 guidance with targeted loan and deposit growth, while highlighting AI productivity gains and continued recruitment momentum. Near-term headwinds are manageable: discrete Q4 expenses, professional/legal costs, deposit remixing complexity, cubiX-related volatility (conservatively excluded from guidance), and an isolated NPA increase tied to a single credit. Given the weight and significance of the reported operating, capital, and payments momentum compared to the limited and largely controlled lowlights, the overall tone is decidedly positive.Positive Updates
Strong EPS and Earnings Growth
Core EPS for FY2025 was $7.61 versus $5.60 in 2024, an increase of ~36%, reflecting strong bottom-line performance and multiyear compounding in core earnings per share.
Negative Updates
Quarter-Specific Discrete Expense Items
Q4 included $4.8 million of unique expenses: $1.9 million legal fees related to new team onboarding, $2.2 million insurance expense tied to tax credit purchases (with offsetting tax benefit), and $0.7 million in compensation/benefits. Commercial lease depreciation increased by $2.2 million linked quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong EPS and Earnings Growth
Core EPS for FY2025 was $7.61 versus $5.60 in 2024, an increase of ~36%, reflecting strong bottom-line performance and multiyear compounding in core earnings per share.
Read all positive updates
Company Guidance
Management's 2026 guidance targets loan growth of 8–12% and deposit growth (net of remixing) of 8–12%, driving net interest income of $800–$830 million (up ~7–11%) while keeping noninterest expense to $440–$460 million (up ~2–6%) to produce meaningful positive operating leverage; they expect CET1 of 11.5–12.5% and an effective tax rate of 23–25%, plan $20 million of run‑rate proceeds from operational‑excellence initiatives to fund investments, and are underwriting this outlook off a strong pipeline and prior‑year traction (2025: $2.0B total deposit growth, ~$700M noninterest‑bearing growth, $1.6B from new teams, Q4 core EPS $2.06 and full‑year core EPS $7.61).Customers Bancorp Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.41B | 1.36B | 1.42B | 895.10M | 844.61M |
| Gross Profit | 729.84M | 614.05M | 666.33M | 573.38M | 721.38M |
| EBITDA | 351.62M | 257.93M | 362.55M | 318.45M | 462.88M |
| Net Income | 224.09M | 181.47M | 250.14M | 228.03M | 314.65M |
Balance Sheet | |||||
| Total Assets | 24.90B | 22.31B | 21.32B | 20.90B | 19.58B |
| Cash, Cash Equivalents and Short-Term Investments | 62.05M | 5.81B | 6.25B | 3.44B | 4.34B |
| Total Debt | 1.71B | 1.41B | 1.51B | 1.11B | 1.18B |
| Total Liabilities | 22.78B | 20.47B | 19.68B | 19.49B | 18.21B |
| Stockholders Equity | 2.12B | 1.84B | 1.64B | 1.40B | 1.37B |
Cash Flow | |||||
| Free Cash Flow | 481.02M | 79.87M | 83.39M | -134.17M | 238.21M |
| Operating Cash Flow | 494.76M | 145.06M | 124.73M | -20.82M | 271.16M |
| Investing Cash Flow | -2.06B | -1.01B | 3.16B | -1.30B | -1.20B |
| Financing Cash Flow | 2.19B | 800.62M | 108.09M | 1.26B | 754.77M |
Customers Bancorp Technical Analysis
Positive
71.72
Price Trends
71.10
Positive
71.97
Negative
68.57
Positive
Market Momentum
0.22
Negative
59.32
Neutral
90.60
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 71.72 is above the 20-day moving average (MA) of 67.91, above the 50-day MA of 71.10, and above the 200-day MA of 68.57, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 90.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CUBI.
Customers Bancorp Risk Analysis
Customers Bancorp disclosed 2 risk factors in its most recent earnings report. Customers Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Customers Bancorp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.02B | 11.28 | 22.83% | 0.27% | 7.80% | 19.38% | |
78 Outperform | $3.19B | 12.06 | 12.44% | 0.99% | 6.21% | 19.23% | |
71 Outperform | $1.80B | 9.31 | 15.21% | 2.73% | 3.98% | 6.75% | |
70 Outperform | $2.31B | 18.91 | 7.03% | 1.69% | -5.72% | -3.86% | |
68 Neutral | $2.18B | 12.34 | 7.57% | 2.08% | 5.21% | 53.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $2.45B | 11.16 | 11.25% | ― | -0.37% | -20.30% |
* Financial Sector Average
CUBI
Customers Bancorp
71.72
24.43
51.66%
FBNC
First Bancorp
55.75
18.26
48.69%
HTH
Hilltop Holdings
36.74
8.20
28.74%
CASH
Pathward Financial
92.61
22.46
32.02%
OFG
OFG Bancorp
41.71
5.82
16.22%
NIC
Nicolet Bankshares
149.07
43.06
40.62%
Customers Bancorp Corporate Events
Business Operations and StrategyExecutive/Board Changes
Customers Bancorp Adopts New Supplemental Executive Retirement Plan
Positive
Mar 24, 2026
On March 19, 2026, Customers Bancorp, Inc. adopted a new Supplemental Executive Retirement Plan for CEO Samvir Sidhu, replacing a prior version established in 2021 and structured as a nonqualified, unfunded deferred compensation arrangement under ...
Executive/Board Changes
Customers Bancorp announces planned retirement of board member
Neutral
Mar 23, 2026
On March 20, 2026, Customers Bancorp announced that board member Robert N. Mackay will retire from the boards of both Customers Bancorp, Inc. and Customers Bank and will not stand for reelection at the company’s 2026 Annual Meeting of Shareh...
Business Operations and StrategyStock Buyback
Customers Bancorp Announces $100 Million Share Repurchase Plan
Positive
Feb 11, 2026
On February 11, 2026, Customers Bancorp’s board authorized a new common stock repurchase plan allowing the company to buy back up to $100 million of its outstanding common stock over a one-year period starting February 12, 2026. Management f...
Business Operations and StrategyExecutive/Board Changes
Customers Bancorp Names Steve Wyremski as New COO
Positive
Jan 26, 2026
On January 26, 2026, Customers Bancorp announced that its subsidiary Customers Bank appointed Stephen (Steve) Wyremski as Executive Vice President and Chief Operating Officer, following his prior work with the bank as a strategic advisor on financ...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresPrivate Placements and Financing
Customers Bancorp posts strong Q4 results and outlook
Positive
Jan 22, 2026
On January 22, 2026, Customers Bancorp reported strong fourth-quarter and full-year 2025 results, with Q4 2025 net income available to common shareholders of $70.1 million, or $1.98 per diluted share, and core earnings of $72.9 million, alongside ...
Business Operations and StrategyExecutive/Board Changes
Customers Bancorp advances founder-family leadership succession plan
Positive
Jan 5, 2026
On December 31, 2025, Customers Bancorp’s board appointed Chief Executive Officer Sam Sidhu to the company’s Board of Directors, effective January 1, 2026, simultaneously expanding the board to 13 members and advancing a succession pla...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.