Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $2.52B
• Dividend Yield: N/A
• Average Volume (3M): 382.74K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.39
• Revenue Growth: -0.37%
• EPS Growth: -20.30%
• Country: US
• Employees: 787
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.98
• Shares Outstanding: 34,168,076
• 10 Day Avg. Volume: 503,703
• 30 Day Avg. Volume: 382,737
• 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: 3.09
• Enterprise Value/Gross Profit: 6.64
• Enterprise Value/Ebitda: 15.60
• 1Y Price Target: $91.33
• Price Target Upside: 25.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $87.00 ▲(19.24% Upside)
• Action: Upgraded Date: 01/27/26
• Date: Action: Upgraded 01/27/26

The score is driven mainly by a strong, constructive earnings outlook and operating momentum from the latest call, supported by positive trend technicals and a reasonable P/E. These positives are tempered by financial-statement signals of multi-year profitability compression and historically volatile cash-flow consistency.

Positive Factors

Capital & Leverage

Improved leverage and rising equity provide durable capacity to fund loan growth, absorb losses, and execute capital actions. The stronger capital base supports management's CET1 guidance and recent subordinated issuance, reducing refinancing and liquidity strain over time.

Deposit Franchise & Payments Moat

A large payments network and strong deposit gathering create a sticky, low-cost funding mix and fee pipeline. Sustained cubiX volumes and balance support NII, cross-sell opportunities, and competitive funding advantages that can persist and scale with commercial client adoption.

Leadership Continuity & Operational Talent

Formalized succession and executive hires (including a new COO) enhance strategic continuity and execution. Tying incentives to performance and keeping experienced leadership reduces transition risk and supports consistent delivery on modernization and growth plans over the medium term.

Negative Factors

Profitability Compression

Multi-year margin and ROE decline point to weaker underlying earnings power despite revenue growth. Persistent compression limits the bank's ability to expand returns to shareholders or reinvest organically without sustained NII improvement or structural cost reductions.

Cash-Flow Volatility

Intermittent cash conversion undermines reliable capital allocation. Although cash flow rebounded TTM, prior negative years and FCF below parity with earnings mean capital returns, acquisitions, or investments may be harder to sustain without consistent OCF generation.

Regulatory & Operational Complexity

Ongoing remediation and operational dynamics (deposit remixing, cubiX balance volatility) create execution risk and recurring costs. Regulatory focus can constrain strategic flexibility, divert management bandwidth, and introduce timing uncertainty for growth initiatives and capital deployment.

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 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

Balance sheet strength is the main support (debt-to-equity improved to ~0.69 TTM and equity grew), and TTM cash generation rebounded sharply (operating cash flow ~$507M; free cash flow ~$374M). Offsetting this, profitability has compressed versus prior years (net margin ~13.2% TTM vs ~17.6% in 2023) and ROE has cooled to ~9.2% TTM, with cash flow volatility across years.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modestly higher (+3.9%), but profitability has compressed versus prior years: net margin is ~13.2% TTM vs ~17.6% in 2023 and meaningfully below 2021–2022 levels. Operating profitability is still positive (EBIT margin ~16.9% TTM), but the multi-year trajectory shows weaker earnings power despite relatively stable revenue.

Balance Sheet

Leverage looks moderate for the period shown, with debt-to-equity improving to ~0.69 TTM from ~0.92 in 2023 and ~1.00+ in 2022/2020. Equity has grown (stockholders’ equity up to ~$2.13B TTM from ~$1.84B in 2024), supporting asset growth. Return on equity has cooled to ~9.2% TTM from stronger levels in 2021–2023, indicating reduced efficiency on the capital base.

Cash Flow

Cash generation improved sharply TTM: operating cash flow rose to ~$507M (vs ~$145M in 2024) and free cash flow to ~$374M, with strong free-cash-flow growth (+13.7%). However, cash flow has been volatile historically (including negative operating and free cash flow in 2022), and free cash flow is only ~0.79x net income TTM, suggesting earnings-to-cash conversion is decent but not consistently strong across years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.36B	1.42B	895.10M	844.61M	600.55M
Gross Profit	623.12M	614.05M	666.33M	573.38M	721.38M	398.16M
EBITDA	265.27M	257.93M	362.55M	318.45M	462.88M	208.27M
Net Income	176.51M	181.47M	250.14M	228.03M	314.65M	132.58M
Balance Sheet
Total Assets	24.26B	22.31B	21.32B	20.90B	19.58B	18.44B
Cash, Cash Equivalents and Short-Term Investments	4.80B	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	22.13B	20.47B	19.68B	19.49B	18.21B	17.32B
Stockholders Equity	2.13B	1.84B	1.64B	1.40B	1.37B	1.12B
Cash Flow
Free Cash Flow	373.64M	79.87M	83.39M	-134.17M	238.21M	123.23M
Operating Cash Flow	506.59M	145.06M	124.73M	-20.82M	271.16M	152.02M
Investing Cash Flow	-1.91B	-1.01B	3.16B	-1.30B	-1.20B	-6.42B
Financing Cash Flow	2.50B	800.62M	108.09M	1.26B	754.77M	6.75B

Customers Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.96
• 50DMA: Negative
• 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 Negative. The current price of 72.96 is below the 20-day moving average (MA) of 75.41, below the 50-day MA of 75.75, and above the 200-day MA of 66.03, indicating a neutral trend. The MACD of -1.02 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 40.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUBI.

Customers Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NIC	80 Outperform	$3.30B	15.70	12.25%	0.99%	6.21%	19.23%
CASH	78 Outperform	$2.03B	11.33	23.62%	0.27%	7.80%	19.38%
CUBI	75 Outperform	$2.52B	11.60	11.34%	―	-0.37%	-20.30%
FBNC	74 Outperform	$2.53B	22.78	6.39%	1.69%	-5.72%	-3.86%
OFG	73 Outperform	$1.85B	9.19	14.82%	2.73%	3.98%	6.75%
HTH	68 Neutral	$2.29B	14.61	7.60%	2.08%	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 Names Steve Wyremski as New COO

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 finance and data modernization starting in 2024. Wyremski, a Boston College-educated certified public accountant with more than two decades of financial and operational leadership experience, previously served as chief financial officer of a New York-based commercial bank with over $100 billion in assets and held senior roles at Signature Bank, Flagstar Bank, KPMG, AIG and Veeco. His compensation package includes a $450,000 base salary, significant performance-based bonus opportunities, a $450,000 sign-on bonus subject to clawback, eligibility for executive benefits including a future SERP, and restrictive covenants on competition, solicitation and confidentiality, underlining the strategic importance Customers Bank places on his role in driving operational excellence, digital innovation and growth for clients and shareholders. The company also agreed to pay him a $425,000 completion fee for prior consulting work, signaling the value management attaches to continuity in its ongoing transformation and modernization initiatives.

The most recent analyst rating on (CUBI) stock is a Buy with a $82.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

Customers Bancorp posts strong Q4 results and outlook

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 quarterly growth in deposits and loans and a modest increase in net interest income driven by lower interest expense. For full-year 2025, the bank posted net income of $209.2 million and record net interest income of $750.5 million, while expanding deposits by $1.9 billion and loans by $2.1 billion year-over-year, strengthening its capital position with an estimated CET1 ratio of 13.0%, boosting book and tangible book value per share by about 14%, and completing key capital actions including a $100 million subordinated debt issuance and the redemption of $85 million of preferred stock; management highlighted robust asset quality, strong liquidity against uninsured deposits, and the success of newly recruited teams that helped drive above-industry loan and deposit growth, setting the stage for a planned leadership transition with Sam Sidhu assuming the CEO role on January 1, 2026.

The most recent analyst rating on (CUBI) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

Customers Bancorp advances founder-family leadership succession plan

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 plan under which he succeeds founder Jay Sidhu as CEO while Jay becomes Executive Chairman. The company also entered into new employment agreements effective January 1, 2026 with both Jay and Sam Sidhu, setting higher base salaries, substantial long-term and short-term incentive opportunities, significant non-qualified SERP benefits, and robust severance and accelerated-vesting protections in the event of termination, particularly following a change in control, alongside restrictive covenants for Sam; additionally, the company confirmed the terms of a previously announced 225,000 performance-based restricted stock unit award to Sam tied to his CEO appointment, underscoring a long-term, performance-driven leadership transition that concentrates control within the founding family while aiming to ensure continuity, strategic stability and retention of top management for shareholders and other stakeholders.

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 issues new subordinated fixed-to-floating notes

On December 22, 2025, Customers Bancorp, Inc. entered into a Second Supplemental Indenture with Wilmington Trust, National Association, to issue $100 million of 6.875% fixed-to-floating rate subordinated notes due 2036, supplementing an existing 2019 indenture. The notes, which are subordinated to the company’s senior and secured indebtedness and structurally subordinated to the liabilities of its subsidiaries, will pay a fixed 6.875% coupon until January 15, 2031 and thereafter a floating rate based on a benchmark expected to be three‑month Term SOFR plus 342 basis points, with interest paid semi-annually during the fixed period and quarterly during the floating period. The notes are callable at par plus accrued interest at the company’s option beginning January 15, 2031, carry no holder put feature before maturity, and are subject to covenants restricting the sale, pledging, issuance, and corporate reorganizations involving equity of material depository subsidiaries, reinforcing structural protections for noteholders within a customary covenant and events-of-default framework.

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 Announces $100M Notes Offering

On December 15, 2025, Customers Bancorp, Inc. finalized a public offering of $100 million in fixed-to-floating rate subordinated notes due 2036, priced at 100% of their principal value, estimating net proceeds of $98 million. The funds are intended for general corporate purposes such as redeeming existing debt, supporting organic growth, acquiring financial services businesses, and repurchasing shares, with precise usage depending on funding requirements, market conditions, and strategic priorities, thus signaling flexibility in operational and strategic planning.

The most recent analyst rating on (CUBI) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.

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.

The most recent analyst rating on (CUBI) stock is a Hold with a $68.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.