Core Viewpoint - Customers Bancorp (CUBI) is recognized as a "growth bank" with approximately $25 billion in assets, primarily operating in the mid-Atlantic region, showcasing significant progress since its turnaround by founder Jay Sidhu [1] Group 1 - Customers Bancorp has a strong asset base of around $25 billion, indicating its substantial presence in the banking sector [1] - The bank has undergone a notable transformation under the leadership of founder Jay Sidhu, reflecting effective management and strategic direction [1]

Core Viewpoint - Customers Bancorp (CUBI) is identified as a "growth bank" with approximately $25 billion in assets, primarily operating in the mid-Atlantic region, showcasing significant progress since its turnaround by founder Jay Sidhu [1] Group 1 - The bank has a strong asset base of around $25 billion, indicating its substantial presence in the banking sector [1] - The turnaround of Customers Bancorp is attributed to the leadership of founder Jay Sidhu, highlighting effective management and strategic direction [1] - The bank's operations are primarily focused in the mid-Atlantic region, suggesting a targeted market approach [1]

Core Insights - Customers Bancorp, Inc. has joined the Qualia Bank Partner Network to enhance its service offerings in the real estate sector [1] - The partnership aims to integrate Customers Bank's title and escrow services with Qualia's AI-powered digital closing platform, improving the transaction experience for settlement service providers [1] Company Summary - Customers Bancorp, Inc. is expanding its capabilities by partnering with Qualia, which is known for its advanced technology in real estate transactions [1] - The collaboration will provide title and escrow companies using both platforms with enhanced services, streamlining the onboarding and transaction processes [1]

Core Insights - The company reported strong growth in deposits and loans, with total deposits increasing by nearly $400 million in Q4 to just under $21 billion and loans growing by about $500 million, or 3% sequentially [1][5] Deposit Growth - Non-interest-bearing deposits rose by approximately $150 million in Q4 and over $500 million in 2025, excluding large increases from Qubix clients [1] - The company emphasized a shift towards "relationship-based, granular, high-quality deposits," with teams managing over $3.3 billion in deposits across more than 8,000 commercial accounts [1] Financial Performance - CEO Sam Sidhu highlighted 2025 as an "exceptional year," with deposits growing by about $2 billion, or 10%, and loans increasing by 15% [2] - The company achieved record net interest income, which increased by 15%, and the efficiency ratio improved by more than six percentage points [2] Revenue and Earnings Growth - Jay Sidhu noted multi-year growth in revenue, earnings, and tangible book value, with a five-year total shareholder return exceeding 300% [3] - Net interest income rose 22% year-over-year to $204 million, with net interest margin expanding by 29 basis points to 3.4% [6] Credit Metrics - Credit metrics remained stable, with non-performing assets at 29 basis points of total assets, and net charge-offs declining by 10% in the quarter [8] Payments Strategy - The bank's payments platform, Qubix, processed over $2 trillion in payments volume in 2025, a 30% increase from 2024 [10] - The Qubix platform enables clients to access multiple payment rails, supporting consistent average deposit balances of $3.9 billion [10] Capital Position and Guidance - The company strengthened its capital position through a $100 million sub-debt issuance, with a tangible common equity ratio reaching 8.5% [13] - Initial guidance for 2026 includes loan growth of 8%–12% and net interest income of $800 million–$830 million [18] Operational Initiatives - The company is targeting $20 million in run-rate proceeds through a renewed operational excellence initiative, focusing on strategic growth [14] - Management emphasized the importance of organic balance sheet growth, talent recruitment, and leveraging AI across the organization [16]

Core Insights - Customers Bancorp (CUBI) reported a revenue of $236.94 million for the quarter ended December 2025, marking a 41.5% increase year-over-year, with an EPS of $2.06 compared to $1.36 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $229.75 million by 3.13%, and the EPS also surpassed the consensus estimate of $2.04 by 0.88% [1] Financial Performance Metrics - Efficiency Ratio stood at 49.5%, higher than the average estimate of 47.8% based on three analysts [4] - Net Interest Margin was reported at 3.4%, matching the average estimate from two analysts [4] - Average Balance of Total Interest-Earning Assets was $23.93 billion, slightly above the estimated $23.81 billion [4] - Annualized net charge-offs to average loans and leases were 0.3%, better than the average estimate of 0.5% [4] - Total Non-Interest Income reached $32.52 million, exceeding the estimated $27.89 million [4] - Loan fees amounted to $7.42 million, below the average estimate of $10.25 million [4] - Commercial lease income was reported at $14.19 million, surpassing the estimated $11.53 million [4] - Net interest income tax equivalent was $204.78 million, slightly below the average estimate of $205.18 million [4] Stock Performance - Shares of Customers Bancorp have returned +4.9% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Customers Bancorp (CUBI) reported quarterly earnings of $2.06 per share, exceeding the Zacks Consensus Estimate of $2.04 per share, and showing a significant increase from $1.36 per share a year ago, representing an earnings surprise of +0.88% [1] - The company achieved revenues of $236.94 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.13%, and up from $167.43 million year-over-year [2] - Customers Bancorp has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $1.92 for the upcoming quarter and $8.15 for the current fiscal year [7] - The favorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Southeast industry, to which Customers Bancorp belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of monitoring these changes [5]

Financial Performance - Q4 2025 net income available to common shareholders was $70.1 million, or $1.98 per diluted share; core earnings were $72.9 million, or $2.06 per diluted share[3] - 2025 net income available to common shareholders was $209.2 million, or $6.26 per diluted share; core earnings were $254.5 million, or $7.61 per diluted share[3] - Net income available to common shareholders for Q4 2025 was $70,088,000, a decrease of 5.4% from Q3 2025's $73,726,000[42] - Diluted earnings per share for Q4 2025 was $1.98, down from $2.20 in Q3 2025, representing a 10% decline[42] - Core earnings for Q4 2025 were $72,851,000, slightly down from $73,473,000 in Q3 2025[42] - Net income for the twelve months ended December 31, 2025, was $224,088,000, an increase from $181,469,000 in the previous year, marking a growth of 23.4%[45] - The company reported a total of $254,473 thousand in core earnings for the year 2025, compared to $183,105 thousand in 2024[62] Asset and Loan Growth - Total deposits increased by $373.7 million, or 1.8%, and total loans increased by $479.4 million, or 2.9%, in Q4 2025 from Q3 2025[3] - Total deposits increased by $1.9 billion, or 10.3%, and total loans increased by $2.1 billion, or 14.5%, from December 31, 2024 to December 31, 2025[3] - Loans and leases held for investment were $16.8 billion at December 31, 2025, up $2.3 billion, or 16.0%, year-over-year[12] - Total loans and leases reached $16,782,516,000 in Q4 2025, a 2.9% increase from $16,303,147,000 in Q3 2025[42] - Total loans and leases for the twelve months ended December 31, 2025, were $1,024,760,000, an increase from $901,457,000 in the previous year, reflecting a growth of 13.7%[45] - Specialized lending loans and leases increased to $7,090,259 thousand in December 2025, up from $5,842,420 thousand in December 2024, a growth of 21.36%[53] Deposits and Liabilities - Total deposits increased to $20,778,704,000 in Q4 2025, up from $20,405,023,000 in Q3 2025, showing growth in customer deposits[42] - Total liabilities grew to $22,780,351 thousand, an increase of 2.9% from $22,134,104 thousand in the previous quarter[46] - Non-interest-bearing deposits totaled $6,303,748 thousand in December 2025, compared to $5,608,288 thousand in December 2024, an increase of 12.38%[54] Income and Expense Analysis - Net interest income totaled a record $750.5 million in 2025, an increase of $96.1 million, or 14.7%, from 2024[3] - Non-interest income totaled $32.5 million for Q4 2025, an increase of $2.3 million compared to Q3 2025[24] - Non-interest expenses totaled $117.3 million in Q4 2025, an increase of $12.1 million compared to Q3 2025[26] - Total non-interest expense for Q4 2025 was $117,309,000, compared to $110,375,000 in Q4 2024, representing an increase of 6.5%[45] - GAAP non-interest expense increased to $117,309 thousand in Q4 2025 from $105,217 thousand in Q3 2025, with a total of $431,923 thousand for 2025 compared to $417,014 thousand in 2024[65] Credit Quality and Provisions - Non-performing loans at December 31, 2025 were 0.26% of total loans and leases, compared to 0.17% at September 30, 2025[20] - Provision for credit losses for Q4 2025 was $22,337,000, compared to $21,194,000 in Q4 2024, indicating a slight increase in credit loss provisions[45] - The total allowance for credit losses on loans and leases was $155,656 thousand, slightly up from $151,809 thousand, indicating a 2.5% increase[46] - The net charge-offs for Q4 2025 were $13,749, compared to $15,371 in Q3 2025, indicating a decrease in charge-offs[57] Capital and Efficiency Ratios - CET 1 capital ratio was 13.0% at December 31, 2025, compared to 12.1% at December 31, 2024[3] - Common equity to total assets ratio improved to 8.5% in Q4 2025, up from 8.4% in Q3 2025[43] - The efficiency ratio for Q4 2025 was 49.52%, an increase from 45.39% in Q3 2025, reflecting higher operational costs[42] - Tangible common equity to tangible assets ratio increased to 8.5% in Q4 2025 from 8.4% in Q3 2025, reflecting a steady improvement in capital efficiency[66] Future Outlook - For 2026, Customers Bancorp is targeting loan growth of 8% to 12% and deposit growth of 8% to 12%, with net interest income projected to reach $800 to $830 million[32] - Non-interest expenses are expected to be between $440 to $460 million as the company continues to invest in people and technology[32] - The company aims to maintain a Common Equity Tier 1 (CET1) ratio of 11.5% to 12.5% and anticipates a tax rate of 23% to 25%[32] Recognition and Client Focus - Customers Bancorp has been recognized as a Top 10 Performing Bank by American Banker for five consecutive years (2021-2025), achieving the 1 spot in 2024 among midsize banks[39] - The company reported a Net Promoter Score of 81, significantly higher than the industry average of 41[39] - Customers Bancorp emphasizes a client-centric culture and a Single Point of Contact service model to differentiate itself from peers[30] - Customers Bancorp is focused on enhancing its payments capabilities and increasing the utilization of AI and automation technologies to improve client experiences and productivity[31]

Core Insights - Customers Bancorp, Inc. reported strong financial performance for Q4 and full year 2025, highlighting successful execution of strategic priorities and growth in franchise value [2][6]. Financial Performance - Q4 2025 GAAP earnings were $70.1 million, or $1.98 per diluted share, while core earnings were $72.9 million, or $2.06 per diluted share [5][13]. - For the full year 2025, net income available to common shareholders was $209.2 million, or $6.26 per diluted share, with core earnings of $254.5 million, or $7.61 per diluted share [13][6]. - The company achieved a record net interest income of $750.5 million in 2025, an increase of $96.1 million, or 14.7%, from 2024 [13][22]. Loan and Deposit Growth - Total loans and leases grew by 14.5% in 2025, with significant contributions from various verticals, maintaining strong credit quality [3][6]. - Total deposits increased by $1.9 billion, or 10.3%, year-over-year, reaching $20.8 billion at December 31, 2025 [15][14]. Asset Quality - The non-performing asset (NPA) ratio was 0.29% of total assets, with reserves at 356% of total non-performing loans at the end of Q4 2025 [5][20]. - The allowance for credit losses on loans and leases was $156 million at December 31, 2025, reflecting a robust credit quality management [19]. Capital and Borrowings - The common equity increased to $2.1 billion, with a CET1 capital ratio of 13.0% at December 31, 2025, compared to 12.1% a year earlier [13][18]. - Total borrowings increased by $228.1 million, or 15.4%, to $1.7 billion at December 31, 2025, primarily due to net draws of FHLB advances [17]. Non-Interest Income and Expenses - Non-interest income for Q4 2025 was $32.5 million, an increase of $2.3 million from Q3 2025, driven by higher commercial lease income [24][25]. - Non-interest expenses totaled $117.3 million in Q4 2025, an increase of $12.1 million from Q3 2025, mainly due to higher salaries and employee benefits [26][28]. Outlook - The company targets loan growth of 8% to 12% and deposit growth of 8% to 12% for 2026, projecting net interest income to grow to $800 to $830 million [32][31]. - Continued focus on recruitment, payment capabilities, and technology investments is expected to drive sustainable long-term growth [30][33].

Core Insights - The finance sector is experiencing strong customer retention and exposure growth despite declining global commercial insurance rates, which decreased by 4% in Q3 2025, marking the fifth consecutive quarter of decline [3][10] - Falling interest rates are positively impacting real estate, M&A activities, and consumer spending, although investment yields may decline for finance companies [2][6][10] - Continued investments in technology are enhancing operational efficiency and margins across the finance industry [9] Industry Overview - The finance sector includes a diverse range of players such as banks, investment companies, insurance firms, and real estate companies, providing various financial services [1] - Catastrophes pose significant risks for insurers, leading to higher policy renewal rates and rate hikes, yet exposure growth and customer retention are driving premium income [3][4] - Interest rate cuts initiated in September 2025 are expected to benefit the real estate market and increase demand for loans and credit cards, aiding the banking sector [5][10] Company Highlights - **Customers Bancorp (CUBI)**: This company utilizes a high-tech, high-touch model for personalized banking and has a diversified loan portfolio with a low non-performing loan ratio of 0.17%. The Zacks Consensus Estimate for 2026 earnings is $8.01 per share, indicating a 5.8% rise from 2025 [13][14] - **HCI Group (HCI)**: HCI leverages internally developed platforms to enhance claims processing and underwriting, leading to improved financial performance. The Zacks Consensus Estimate for 2026 earnings is $16.00 per share, with a year-to-date stock gain of 59.5% [17][18] - **Enova International (ENVA)**: Enova is a leading online financial services provider that has extended around $5.5 billion in credit in 2025. The Zacks Consensus Estimate for 2026 earnings is $14.12 per share, reflecting a 10.6% increase from 2025 [19][20]

Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank, including Customers Bancorp, Isabella Bank Corporation, and Vertiv Holdings Co [1][2][3] Group 1: Customers Bancorp, Inc. (CUBI) - Customers Bancorp has a Zacks Rank 1 and a nearly 8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - The shares of Customers Bank gained 9.9% over the last three months, outperforming the S&P 500's advance of 3.6% [1] - The company has a Momentum Score of A [1] Group 2: Isabella Bank Corporation (ISBA) - Isabella Bank Corporation also holds a Zacks Rank 1 with a 7.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - The shares of Isabella Bank surged 49.9% over the last three months, significantly outperforming the S&P 500's advance of 3.6% [2] - The company possesses a Momentum Score of B [2] Group 3: Vertiv Holdings Co (VRT) - Vertiv Holdings Co has a Zacks Rank 1 and a 7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - The shares of Vertiv gained 18.1% over the last three months, again outperforming the S&P 500's advance of 3.6% [3] - The company has a Momentum Score of B [3]