Customers Bancorp (CUBI) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: N/A
• Average Volume (3M): 363.51K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.35
• 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: 241,752
• 30 Day Avg. Volume: 363,506
• 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: -0.22
• Enterprise Value/Revenue: -0.44
• Enterprise Value/Gross Profit: -0.95
• Enterprise Value/Ebitda: -2.24
• 1Y Price Target: $84.23
• Price Target Upside: 6.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 8.03
• Revenue Forecast (FY): $914.62M

• Rating: 74 Outperform
• Price Target: $87.00 ▲(10.50% Upside)

The score is driven primarily by improving financial stability and a strong earnings-call backdrop (growth, margin expansion, efficiency gains, and better capital), supported by constructive technical momentum with price above major moving averages. The main offsets are multi-year profitability/ROE compression and only moderate valuation support given the P/E and lack of dividend yield data.

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. 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

Mixed fundamentals: income statement is pressured by sharply negative TTM revenue growth (-61.7%) and lower margins, but the balance sheet looks stable (debt-to-equity 0.79) and cash generation is a strength with strong free cash flow growth (82.43%).

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	1.34B	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: Positive
• Last Price: 78.73
• 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 78.73 is above the 20-day moving average (MA) of 76.49, above the 50-day MA of 71.79, and above the 200-day MA of 62.57, indicating a bullish trend. The MACD of 1.75 indicates Positive momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 70.71 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
CASH	79 Outperform	$1.67B	9.50	21.81%	0.27%	7.80%	19.38%
OFG	78 Outperform	$1.81B	9.37	14.82%	2.73%	3.98%	6.75%
NIC	78 Outperform	$1.94B	13.95	12.25%	0.99%	6.21%	19.23%
FBNC	75 Outperform	$2.30B	23.22	6.39%	1.69%	-5.72%	-3.86%
CUBI	74 Outperform	$2.64B	15.95	8.99%	―	-0.37%	-20.30%
HTH	71 Outperform	$2.15B	14.03	7.31%	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 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.

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.

The most recent analyst rating on (CUBI) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Customers Bancorp stock, see the CUBI Stock Forecast page.