Shares of Customers Bancorp (CUBI) have gained 1.6% over the past four weeks to close the last trading session at $65, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $84.75 indicates a potential upside of 30.4%.The average comprises eight short-term price targets ranging from a low of $68.00 to a high of $95.00, with a standard deviation of $9.5. While the lowest estimate indic ...

Key insight: The new offices in California and Nevada represent Customers Bancorp's first presence west of the Rocky Mountains. Expert quote: "A lot of these bankers are realizing that brick-and-mortar is the best way for growing new relationships, for the originations along with the cross-selling products," Haberfeld Senior Executive Vice President Preston Afrank said.Supporting data: In addition to the new offices, Customers has also onboarded seven banking teams so far in 2025.Customers Bancorp is taking ...

Group 1 - Customers Bancorp Inc. stock is currently trading at $67.57, with a recent increase of 0.01% [1] - Over the past month, the stock has increased by 3.53%, and over the past year, it has risen by 22.02%, indicating optimism among long-term shareholders [1] - Investors are considering the price-to-earnings (P/E) ratio to assess whether the stock may be overvalued [1] Group 2 - The P/E ratio is a measure of the current share price relative to the company's earnings per share (EPS), used by long-term investors to evaluate performance [5] - A higher P/E ratio suggests that investors expect better future performance, which may indicate overvaluation, but it can also reflect a willingness to pay a premium for anticipated growth [5] - The P/E ratio should be analyzed alongside other financial metrics and qualitative factors for informed investment decisions [9] Group 3 - Customers Bancorp Inc. has a P/E ratio of 13.62, which is lower than the industry average P/E ratio of 17.14 for the Banks industry [6] - This lower P/E ratio may lead shareholders to believe that the stock could perform worse than its peers, or it could indicate that the stock is undervalued [6] - A lower P/E can also imply that shareholders do not expect future growth, highlighting the limitations of using the P/E ratio in isolation [9]

Financial Performance - Net income for the three months ended September 30, 2025, was $75,745 thousand, up from $46,743 thousand in the same period of 2024, indicating a growth of 62.0%[16] - Net income for the nine months ended September 30, 2025, totaled $149,596,000, a decrease of 3.1% from $154,554,000 in the same period of 2024[17] - Comprehensive income for the three months ended September 30, 2025, was $95,981,000, up from $72,019,000 in 2024, reflecting a 33.5% increase[17] - Basic earnings per common share for the three months ended September 30, 2025, was $2.28, compared to $1.36 for the same period in 2024, representing a growth of 67.6%[16] - Net income available to common shareholders for Q3 2025 was $73,726,000, compared to $42,937,000 in Q3 2024, representing a year-over-year increase of 71.5%[34] Asset and Deposit Growth - Total assets increased to $24,260,163 thousand as of September 30, 2025, up from $22,308,241 thousand at December 31, 2024, representing an increase of 8.75%[15] - Total deposits rose to $20,405,023 thousand as of September 30, 2025, compared to $18,846,461 thousand at December 31, 2024, an increase of 8.2%[15] - The net increase in deposits for the nine months ended September 30, 2025, was $1,530,025,000, compared to $128,395,000 in 2024[24] - Cash and cash equivalents at the end of September 2025 were $4,185,639,000, up from $3,088,022,000 at the end of September 2024[25] Income and Expense Analysis - Net interest income for the three months ended September 30, 2025, was $201,912 thousand, compared to $158,545 thousand for the same period in 2024, reflecting a year-over-year increase of 27.3%[16] - Non-interest income for the three months ended September 30, 2025, was $30,191 thousand, significantly up from $8,557 thousand in the same period of 2024, reflecting an increase of 252.5%[16] - The company reported a total non-interest expense of $105,217 thousand for the three months ended September 30, 2025, slightly up from $104,018 thousand in the same period of 2024, indicating a marginal increase of 1.2%[16] Credit Losses and Allowances - Provision for credit losses increased to $26,543 thousand for the three months ended September 30, 2025, compared to $17,066 thousand for the same period in 2024, marking a rise of 55.6%[16] - The allowance for credit losses on loans and leases was $151,809 thousand as of September 30, 2025, compared to $136,775 thousand at December 31, 2024, an increase of 11.0%[15] - The allowance for credit losses (ACL) was $6.9 million as of September 30, 2025, reflecting a benefit of $0.8 million for the three months ended[134] Shareholder Actions - Customers Bancorp authorized a share repurchase program in 2024, reflecting the company's commitment to returning value to shareholders[12] - Customers Bancorp repurchased 104,206 shares of its common stock for $5.6 million under the 2024 Share Repurchase Program during the nine months ended September 30, 2025[123] - The company issued 2,518,248 shares of common stock during the three months ended September 30, 2025, raising $163,475,000 after offering costs[18] Capital and Regulatory Compliance - Customers Bancorp satisfied all capital requirements as of September 30, 2025, under regulatory guidelines[137] - Customers Bancorp, Inc. reported a Common Equity Tier 1 capital of $2,089,260, representing a ratio of 12.999% against a minimum requirement of 4.500%[139] - The Tier 1 capital ratio for Customers Bancorp, Inc. was 13.510% as of September 30, 2025, surpassing the minimum requirement of 6.000%[139] Loan and Lease Performance - The total loans and leases receivable increased to $14.7 billion as of September 30, 2025, up from $13.1 billion at December 31, 2024, representing a growth of approximately 11.5%[65] - Commercial loans and leases receivable reached $13.4 billion, a significant increase from $11.9 billion in the previous year, driven by specialized lending and commercial real estate[65] - The total amount of accrued interest recorded for total loans was $88.9 million as of September 30, 2025, slightly up from $88.2 million at the end of 2024[66] Derivative and Fair Value Measurements - The fair value of derivative assets was reported at $12,613,000 and derivative liabilities at $17,300,000 as of September 30, 2025[173] - Total assets measured at fair value on a recurring basis reached $3,593,546 thousand as of September 30, 2025, with significant contributions from Level 2 inputs totaling $3,199,813 thousand[158] - The fair value of available-for-sale debt securities was $1,979,832 thousand as of September 30, 2025, with $1,697,993 thousand classified under Level 2 inputs[157] Legal and Compliance Matters - The company intends to defend itself against a federal securities class action complaint filed against it, which could have potential implications for its financial position[182] - A Special Litigation Committee was formed to investigate allegations raised in a demand letter regarding deficiencies in disclosures concerning anti-money laundering compliance[183]

Core Insights - The Q3 earnings season for regional banks showed satisfactory performance, with revenues collectively missing analysts' consensus estimates by 1.1% [3] - Merchants Bancorp reported a revenue increase of 14.4% year on year, totaling $171.1 million, exceeding analysts' expectations by 3% [6] - Customers Bancorp emerged as a top performer with a revenue increase of 38.5% year on year, reaching $232.1 million, outperforming analysts' expectations by 7% [9] Industry Overview - Regional banks serve as intermediaries between local depositors and borrowers, benefiting from rising interest rates, digital transformation, and local economic growth [2] - Challenges include competition from fintech, deposit outflows, credit deterioration during economic slowdowns, and regulatory compliance costs [2] - Recent concerns regarding regional bank stability due to high-profile failures and significant commercial real estate exposure add to the industry's challenges [2] Company Performance - Merchants Bancorp focuses on low-risk, government-backed lending programs and specializes in multi-family mortgage banking [5] - Despite a strong quarter, Merchants Bancorp's stock is down 2.4% since reporting, currently trading at $31.59 [7] - Customers Bancorp's strategy emphasizes business lending and digital banking, leading to a stock increase of 2.2% since reporting, currently trading at $66.99 [10]

Core Points - Customers Bancorp, Inc. has declared a quarterly cash dividend of $0.5726314 per share on its Series F Preferred Stock, payable on December 15, 2025, to shareholders of record on November 30, 2025 [1] - The company is redeeming all 3,400,000 shares of its Series F Preferred Stock, totaling $85.0 million, which had a declared dividend rate of 9.06% [2][3] - The redemption date coincides with the dividend payment date, and the cash redemption price will be $25 per share, excluding declared and unpaid dividends [3] - This redemption aligns with the company's strategy to enhance funding efficiency and capital structure, aiming to optimize capitalization and improve long-term profitability [4] - Following the redemption, no shares of the Series F Preferred Stock will remain outstanding, and dividends will cease to accrue on these securities [5] Company Overview - Customers Bancorp, Inc. is a top-performing banking company with over $24 billion in assets, ranking among the 80 largest bank holding companies in the U.S. [7] - The company offers a full suite of technology-enabled products and services, including commercial and consumer banking, and has received multiple accolades for its performance [11]

Core Viewpoint - Customers Bancorp (CUBI) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [2]. - The Zacks rating upgrade for Customers Bancorp suggests an improvement in the company's earnings outlook, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between earnings estimate revisions and near-term stock price movements, making the tracking of these revisions crucial for investment decisions [7]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Current Earnings Estimates for Customers Bancorp - Customers Bancorp is projected to earn $7.53 per share for the fiscal year ending December 2025, with no year-over-year change expected [9]. - Over the past three months, the Zacks Consensus Estimate for Customers Bancorp has increased by 9.8%, indicating a positive trend in earnings estimates [9]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [10]. - The upgrade of Customers Bancorp to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1: Earnings Performance - Customers Bancorp reported quarterly earnings of $2.2 per share, exceeding the Zacks Consensus Estimate of $1.9 per share, and up from $1.26 per share a year ago, representing an earnings surprise of +15.79% [1] - The company posted revenues of $232.1 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 8.12%, compared to year-ago revenues of $167.1 million [2] Group 2: Stock Performance and Outlook - Customers Bancorp shares have increased approximately 31.5% since the beginning of the year, outperforming the S&P 500's gain of 13.9% [3] - The current consensus EPS estimate for the upcoming quarter is $1.78 on revenues of $216.29 million, and for the current fiscal year, it is $7.01 on revenues of $841 million [7] Group 3: Industry Context - The Banks - Southeast industry, to which Customers Bancorp belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]