Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $2.03B
• Dividend Yield: N/A
• Average Volume (3M): 330.77K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.40
• Revenue Growth: -5.67%
• EPS Growth: -44.11%
• Country: US
• Employees: 787
• Sector: Financial
• Sector Strength: 76
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 31,587,793
• 10 Day Avg. Volume: 330,748
• 30 Day Avg. Volume: 330,766
• PEG Ratio: -0.51
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.11
• Enterprise Value/Market Cap: -0.18
• Enterprise Value/Revenue: -0.07
• Enterprise Value/Gross Profit: -0.66
• Enterprise Value/Ebitda: -0.33
• 1Y Price Target: $70.80
• Price Target Upside: 11.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $74.00 ▲(16.96%Upside)

The overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and effective management strategies. Technical analysis suggests short-term caution due to overbought conditions, while valuation reflects fair pricing. The absence of a dividend yield and revenue growth challenges are minor concerns.

Positive Factors

Earnings

CUBI's first quarter results exceeded expectations with a core EPS of $1.54, attributed to a wider net interest margin and unexpected loan growth.

Management Alignment

Senior management took 100% of 2024 bonuses in stock, aligning their interests with those of shareholders.

Strategic Initiatives

The repositioning of CUBI's securities portfolio is regarded as a strategic move, enhancing the company's financial strategy.

Valuation

The stock price target has been raised to $80, reflecting a very positive outlook.

Negative Factors

Initial Guidance

Initial 2025 guidance suggests weaker performance in the first half of the year due to new banking teams not being immediately profitable and elevated expenses from a regulatory agreement.

Regulatory Issues

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. (CUBI) is a bank holding company that operates primarily through its subsidiary, Customers Bank. It is headquartered in West Reading, Pennsylvania, and serves a broad range of individual and business clients across the United States. The company offers a variety of banking products and services, including commercial and consumer loans, deposit products, and cash management services. It also provides financial services such as real estate loans, small business loans, and equipment financing, with a focus on technology-driven solutions to enhance customer experience.

How the Company Makes Money

Customers Bancorp generates revenue primarily through interest income from its lending activities. The bank earns interest on loans provided to consumers and businesses, which is a significant portion of its revenue. Additionally, it collects fees from various banking services such as transaction processing, account maintenance, and advisory services. The company also benefits from its deposit products, where it pays lower interest on customer deposits compared to the income generated from loans. Furthermore, Customers Bancorp engages in mortgage banking activities, which contribute to its non-interest income. Strategic partnerships with fintech companies and a focus on digital banking solutions also play a role in enhancing its earnings by expanding its customer base and streamlining operations.

Customers Bancorp Financial Statement Overview

Summary

Customers Bancorp exhibits a balanced financial profile with solid profitability and efficient cash generation. The income statement reflects moderate performance, supported by stable profit margins despite a decline in revenue growth. The balance sheet shows financial stability with a low debt-to-equity ratio, enhancing resilience. Strong cash flow generation is noted, though potential volatility in cash flow related to financing activities warrants caution.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	1.36B	1.42B	895.10M	844.61M	600.55M
Gross Profit	563.56M	614.05M	666.33M	573.38M	721.38M	398.16M
EBITDA	211.83M	257.93M	362.55M	318.45M	462.88M	208.27M
Net Income	144.66M	181.47M	250.14M	228.03M	314.65M	132.58M
Balance Sheet
Total Assets	22.42B	22.31B	21.32B	20.90B	19.58B	18.44B
Cash, Cash Equivalents and Short-Term Investments	4.19B	5.81B	6.25B	3.44B	4.34B	1.90B
Total Debt	1.42B	1.41B	1.51B	1.11B	1.18B	1.41B
Total Liabilities	20.56B	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	180.15M	79.87M	83.39M	-134.17M	238.21M	123.23M
Operating Cash Flow	258.00M	145.06M	124.73M	-20.82M	271.16M	152.02M
Investing Cash Flow	-1.34B	-1.01B	3.16B	-1.30B	-1.20B	-6.42B
Financing Cash Flow	812.53M	800.62M	108.09M	1.26B	754.77M	6.75B

Customers Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.27
• 50DMA: Positive
• 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 Positive. The current price of 63.27 is above the 20-day moving average (MA) of 62.30, above the 50-day MA of 56.26, and above the 200-day MA of 52.10, indicating a bullish trend. The MACD of 2.44 indicates Positive momentum. The RSI at 63.22 is Neutral, neither overbought nor oversold. The STOCH value of 52.67 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	80 Outperform	$2.00B	10.49	15.20%	2.47%	4.15%	4.39%
NIC	79 Outperform	$2.11B	16.09	11.89%	0.84%	8.38%	26.81%
CASH	76 Outperform	$1.92B	10.87	22.88%	0.25%	3.25%	11.22%
FBNC	74 Outperform	$1.94B	22.19	6.03%	1.90%	-2.00%	-23.83%
CUBI	74 Outperform	$2.03B	16.07	8.14%	―	-5.67%	-44.11%
HTH	71 Outperform	$2.01B	15.90	5.89%	2.78%	2.60%	14.96%
Sector *	68 Neutral	$16.93B	11.67	9.79%	3.89%	11.83%	-7.56%

Customers Bancorp Corporate Events

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.

The most recent analyst rating on (CUBI) stock is a Hold with a $57.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

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.

The most recent analyst rating on (CUBI) stock is a Hold with a $57.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

Customers Bancorp to Redeem Series E Preferred Stock

On May 14, 2025, Customers Bancorp announced its decision to redeem all 2,300,000 shares of its Series E Preferred Stock by June 16, 2025. This strategic move is part of the company’s efforts to optimize its capital structure and enhance profitability, expecting an accretive impact on earnings per share by 12 cents annually. The redemption aligns with Customers Bancorp’s commitment to delivering shareholder value and improving long-term profitability.

The most recent analyst rating on (CUBI) stock is a Hold with a $57.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

Customers Bancorp Reports Q1 2025 Financial Results

Customers Bancorp reported its first quarter 2025 financial results, highlighting a net income of $9.5 million and core earnings of $50 million. The company undertook a securities portfolio repositioning to improve liquidity and benefit margins amidst economic uncertainty. Total loans and leases grew by $611.7 million, and deposits increased by $86.5 million. The company emphasizes its strong liquidity position and minimal exposure to high-risk commercial real estate, positioning itself for continued growth and stability.