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]

Financial Performance - Q3 2025 GAAP earnings were $73.7 million, or $2.20 per diluted share, with core earnings also at $73.5 million, or $2.20 per diluted share [4] - Net income available to common shareholders for Q3 2025 was $73,726,000, a significant increase from $55,846,000 in Q2 2025 [35] - Earnings per share (diluted) rose to $2.20 in Q3 2025, compared to $1.73 in Q2 2025 [35] - Net income for Q3 2025 reached $75,745 thousand, compared to $46,743 thousand in Q3 2024, reflecting a significant increase of 62% [38] - Basic earnings per common share for Q3 2025 were $2.28, up from $1.36 in Q3 2024, indicating a growth of 67.6% [38] - Core earnings for Q3 2025 were $73,473,000, compared to $58,147,000 in Q2 2025 [35] - GAAP net income for Q3 2025 was $73,726,000, translating to $2.20 per share, compared to $55,846,000 or $1.73 per share in Q2 2025 [55] - Core earnings for Q3 2025 reached $73,473,000, or $2.20 per share, up from $58,147,000 or $1.80 per share in Q2 2025 [55] Asset and Deposit Growth - Total assets increased to $24,260,163,000 in Q3 2025, up from $22,550,800,000 in Q2 2025 [35] - Total deposits rose by $1.4 billion to $20.4 billion, with a year-over-year increase of $2.3 billion, or 13% [11] - Total deposits reached $20,405,023,000 as of September 30, 2025, compared to $18,069,389,000 in the prior year, marking an increase of 12.9% [47] - Cash and cash equivalents increased to $4,185,639 thousand, compared to $3,503,511 thousand in the previous quarter, marking a growth of 19.5% [39] - Non-interest bearing demand deposits grew to $6,380,879,000 in Q3 2025, up from $5,481,065,000 in Q2 2025 [35] - Total non-interest-bearing deposits increased to $6,380,879,000 as of September 30, 2025, compared to $4,670,809,000 in the prior year, reflecting a growth of 36.5% [47] Loan and Lease Performance - Loans and leases held for investment increased to $16.3 billion, up $893 million, or 5.8%, from the previous quarter [7] - Total loans and leases reached $16,303,147,000 in Q3 2025, compared to $15,412,400,000 in Q2 2025 [35] - Total loans and leases held for investment increased to $16,272,250,000 as of September 30, 2025, up from $15,060,439,000 a year earlier, representing a growth of 8.1% [46] - Specialized lending loans and leases increased to $7,083,620,000 as of September 30, 2025, from $5,468,507,000 a year earlier, showing a significant rise of 29.5% [46] - The total commercial loans and leases portfolio reached $14,837,784,000 as of September 30, 2025, up from $12,522,328,000 a year earlier, representing a growth of 18.5% [46] Income and Expense Analysis - Non-interest income totaled $30.2 million, an increase of $21.6 million compared to Q3 2024, primarily due to higher loan fees [21] - Total interest income for Q3 2025 was $361,479 thousand, an increase from $332,113 thousand in Q3 2024, representing a year-over-year growth of approximately 8.8% [38] - Total interest expense decreased to $159,567 thousand in Q3 2025 from $173,568 thousand in Q3 2024, a reduction of approximately 8% [38] - GAAP net interest income for Q3 2025 was $201,912,000, an increase from $176,703,000 in Q2 2025, representing a growth of 14.0% [60] - GAAP non-interest expense for Q3 2025 was $105,217,000, a decrease from $106,626,000 in Q2 2025, reflecting a reduction of 1.3% [60] Credit Quality and Losses - Non-performing loans decreased to 0.17% of total loans and leases, down from 0.18% in the previous quarter [16] - The provision for credit losses in Q3 2025 was $27 million, compared to $21 million in Q2 2025 [15] - The total non-performing loans (NPLs) to total loans ratio was 0.17% as of September 30, 2025, indicating a significant decrease in asset quality concerns [49] - Net charge-offs for Q3 2025 amounted to $15,371, compared to $13,115 in Q2 2025 and $17,144 in Q1 2025 [50] - The allowance for credit losses on loans and leases was $151,809 thousand, slightly up from $147,418 thousand in the previous quarter [39] Capital and Efficiency Ratios - Common equity increased by $263 million to $2.0 billion, primarily from earnings and a successful equity raise [14] - The efficiency ratio improved to 45.39% in Q3 2025, down from 51.23% in Q2 2025 [35] - Common equity Tier 1 capital ratio improved to 13.0% in Q3 2025 from 12.46% in Q3 2024, showing a strengthening of capital position [36] - Tangible common equity increased to $2,040,229,000 in Q3 2025 from $1,777,728,000 in Q2 2025, marking a growth of 14.8% [61] - The tangible common equity to tangible assets ratio improved to 8.4% in Q3 2025 from 7.9% in Q2 2025, indicating stronger capital efficiency [61]

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