Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Customers Bancorp (CUBI) - Customers Bancorp currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook compared to the market [3] Performance Metrics - Over the past week, CUBI shares increased by 2.98%, outperforming the Zacks Banks - Southeast industry, which rose by 1.45% [5] - In a longer timeframe, CUBI's monthly price change is 6.38%, slightly ahead of the industry's 6.23% [5] - Over the past quarter, CUBI shares have risen by 6.96%, and over the last year, they have increased by 32.66%, while the S&P 500 has moved 5.71% and 15.31% respectively [6] Trading Volume - CUBI's average 20-day trading volume is 260,194 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, four earnings estimates for CUBI have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $7.01 to $7.57 [9] - For the next fiscal year, four estimates have also moved upwards without any downward revisions [9] Conclusion - Given the strong performance metrics and positive earnings outlook, CUBI is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Company Overview - Customers Bancorp reported a revenue of $719.93 million and a net income of $162.36 million for the trailing twelve months (TTM) [4] - The company has a dividend yield of none and a one-year price change of 22.84% as of November 25, 2025 [4] - The bank focuses on providing financial products and services to small and mid-sized businesses as well as individual consumers across various states [7][8] Insider Transaction - Jay S. Sidhu, Chairman & CEO, sold 7,479 shares in an open-market transaction valued at approximately $523,947.33 on November 25, 2025 [2][9] - Post-transaction, Sidhu retains 918,216 shares valued at about $63.7 million [2][6] - This sale represents approximately 0.81% of Sidhu's direct ownership prior to the transaction, which is significantly lower than the recent median sell trade of 4.23% for insiders [6] Stock Performance - Customers Bancorp shares achieved a total return of 22.84% over the prior twelve months, with the stock priced at $69.33 at the market close on the transaction date [6][10] - Following the sale, the stock reached a 52-week high of $72.83, indicating favorable timing for the transaction [9] Financial Performance - The company's third-quarter net income available to common shareholders was $73.7 million, a substantial increase from $42.9 million in the previous year [10] - The diluted earnings per share (EPS) for Q3 was reported at $2.20, up from $1.31 in 2024, reflecting strong growth [10]

Core Insights - Customers Bancorp (CUBI) is a regional bank located in Pennsylvania, known for its preferred share (CUBI.PR.F) that has been paying dividends at a floating rate for the past four years [1] Group 1: Company Overview - Customers Bancorp operates primarily in the regional banking sector [1] - The bank has a focus on income investing through various financial instruments including common shares, preferred shares, and bonds [1] Group 2: Investment Strategy - The investment strategy includes targeting income through preferred shares and bonds, indicating a focus on stable returns [1] - The bank's preferred shares have been consistent in providing dividends, which may attract income-focused investors [1]

Core Insights - Customers Bancorp (CUBI) is a regional bank located in Pennsylvania, known for its preferred share (CUBI.PR.F) that has been paying dividends at a floating rate for the past four years [1] Group 1: Company Overview - Customers Bancorp operates primarily in the regional banking sector, focusing on providing financial services to its customers [1] Group 2: Investment Focus - The article emphasizes a focus on income investing through various financial instruments, including common shares, preferred shares, and bonds [1]

Core Insights - The article highlights an insider sale by Jay S. Sidhu, Chairman & CEO of Customers Bancorp, Inc., involving 7,479 shares sold on November 25, 2025, for a total transaction value of approximately $523,947.33 [1][2] Company Overview - Customers Bancorp, Inc. is a regional bank holding company focused on commercial lending and technology-enabled banking services, generating revenue primarily through net interest income and fee-based services [8][7] - The company reported a total revenue of $1.42 billion and a net income of $176.51 million for the trailing twelve months (TTM) [4] Insider Transaction Details - The shares sold by Sidhu represented about 0.81% of his direct holdings prior to the transaction, indicating a minor reduction in his stake [6] - The sale was significantly smaller than Sidhu's recent median sale size of 40,901 shares, reflecting a lower-volume disposition [6] - The shares were sold at approximately $70.06 each, a premium to the market close of $68.90 on that day, aligning with a total return of 22.05% over the previous twelve months [6] Financial Performance - Customers Bancorp reported a third-quarter net income of $2.20 per share, marking a 68% increase compared to the same period the previous year [9] - The company has increased its provision for credit losses to $27 million from $17 million year-over-year, while the percentage of non-performing loans decreased to 0.17% from 0.34% [10] Expansion and Services - The bank has opened three new offices on the West Coast, including locations in Reno and Las Vegas, enhancing its branch network [10] - Customers Bancorp offers a range of deposit products, commercial and residential loans, and cash management services, primarily targeting small and middle-market businesses as well as individual consumers [7]

Core Viewpoint - Customers Bancorp (CUBI) has seen a 1.6% increase in share price over the past four weeks, closing at $65, with analysts suggesting a potential upside of 30.4% based on a mean price target of $84.75 [1][11]. Price Targets - The average price target consists of eight estimates ranging from a low of $68.00 to a high of $95.00, with a standard deviation of $9.5, indicating variability among analysts [2]. - The lowest estimate suggests a 4.6% increase from the current price, while the highest indicates a 46.2% upside [2]. Analyst Sentiment - Analysts show strong agreement regarding CUBI's ability to report better earnings than previously predicted, which supports the expectation of a stock price increase [4][11]. - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 7.4%, with four estimates moving higher and no negative revisions [12]. Zacks Rank - CUBI holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating a strong potential for upside [13]. Price Movement Implications - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14].

Core Insights - Customers Bancorp is expanding its presence by opening five new offices in California and Nevada, marking its first locations west of the Rocky Mountains [1][2][7] - The new offices aim to enhance the company's footprint in high-opportunity regions and cater to more business owners and entrepreneurs [2][3] Company Strategy - The expansion aligns with Customers Bancorp's strategy to transition from a regional Mid-Atlantic institution to a national business bank, following previous expansions into North Carolina, Chicago, Dallas, and Denver [3] - The new locations are classified as limited purpose offices focusing on commercial clients, while also offering deposit and loan services [4] Industry Context - Customers Bancorp's expansion is part of a broader trend among regional and money-center banks pursuing significant growth initiatives, with other banks like PNC Financial Group and Bank of America also planning to open numerous new branches [5][6] - The emphasis on brick-and-mortar locations is seen as a key strategy for building new relationships and enhancing product cross-selling opportunities [8] Performance Metrics - In the third quarter, Customers Bancorp reported a net income of $73.7 million, a 71% increase from the same period in 2024, driven by growth in loans and deposits [10] - The company has onboarded seven banking teams in 2025, totaling 30 bankers, contributing to its growth strategy [9][10]

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]