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 [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Performance Metrics - Over the past week, CUBI shares increased by 13.51%, outperforming the Zacks Banks - Southeast industry, which rose by 4.4% [6] - In the last month, CUBI's price change was 15.7%, significantly higher than the industry's 4.1% [6] - For longer-term performance, CUBI shares rose by 35.35% over the past three months and 21.84% over the last year, while the S&P 500 increased by 10.83% and 14.92%, respectively [7] Trading Volume - CUBI's average 20-day trading volume is 268,760 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, three earnings estimates for CUBI have been revised upwards, increasing the consensus estimate from $6.12 to $6.33 [10] - For the next fiscal year, three estimates have also moved higher, with no downward revisions noted [10] Conclusion - Considering the strong performance metrics and positive earnings outlook, CUBI is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [12]

Core Viewpoint - Customers Bancorp (CUBI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their trading actions based on these estimates can lead to significant price movements [3]. Business Improvement Indicators - The upgrade in ratings and rising earnings estimates suggest an improvement in Customers Bancorp's underlying business, which could lead to an increase in stock price as investors respond positively [4]. Importance of Earnings Estimate Revisions - Research indicates a strong link between earnings estimate revisions and stock performance, emphasizing the importance of tracking these revisions for investment decisions [5]. - The Zacks Rank system effectively leverages earnings estimate revisions to classify stocks, providing a structured approach to investment [6]. Specific Earnings Estimates for Customers Bancorp - For the fiscal year ending December 2025, Customers Bancorp is projected to earn $6.33 per share, with a 1.1% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [8][9]. - Customers Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Company Overview - Save Advisers, LLC and its affiliate Save Technologies LLC have launched the Market Savings Sub-advisory Program, an investment-driven deposit program for Registered Investment Advisers [1][2] - Customers Bank, a subsidiary of Customers Bancorp, Inc., provides the deposit accounts for this program, which are eligible for FDIC insurance [2][5] Program Features - The Market Savings Sub-advisory Program combines deposit accounts with a market-based yield enhancement strategy managed by Save Advisers LLC [1][2] - The program is designed for simplicity and security, with investment strategy allocations made according to adviser selections and managed within the Save platform [2] - The minimum deposit for participation in the program is set at $10,000 for a one-year term, with potential fees that may reduce earnings on investments [3] Industry Impact - The program aims to enhance cash management solutions in the wealth advisory industry, providing advisers with options that preserve principal while creating growth opportunities [3] - Customers Bank is recognized as one of the top-performing bank holding companies in the U.S., with over $22 billion in assets, and has received accolades for its customer service and product offerings [5][7]

Financial Performance - Net interest income for the three months ended March 31, 2025, was $167,446 thousand, up from $160,385 thousand in the same period of 2024, representing an increase of 4.0%[17] - Net income available to common shareholders decreased to $9,523 thousand for the three months ended March 31, 2025, down from $45,926 thousand in the same period of 2024, a decline of 79.3%[17] - Basic earnings per common share fell to $0.30 for the first quarter of 2025, compared to $1.46 for the same quarter in 2024, a decrease of 79.5%[17] - Comprehensive income for the three months ended March 31, 2025, was $41,831 thousand, compared to $53,990 thousand in the same period of 2024, a decrease of 22.5%[18] - Net income for the three months ended March 31, 2025, was $12,912 thousand, a decrease of 74% compared to $49,726 thousand for the same period in 2024[23] Credit Losses and Provisions - Provision for credit losses rose to $28,297 thousand for the first quarter of 2025, compared to $17,070 thousand in the first quarter of 2024, indicating a significant increase of 65.7%[17] - The allowance for credit losses on loans and leases was $141,076 thousand as of March 31, 2025, compared to $136,775 thousand at December 31, 2024, reflecting an increase of 3.4%[16] - Provision for credit losses increased to $28,297 thousand in Q1 2025 from $17,070 thousand in Q1 2024, indicating a rise in expected credit losses[23] - The allowance for credit losses (ACL) on loans and leases increased for the three months ended March 31, 2025, reflecting changes in credit quality across various loan types[69] - The total charge-offs for the three months ended March 31, 2025, were $20.8 million, compared to $22.8 million for the same period in 2024[71] Assets and Liabilities - Total assets increased to $22,423,044 thousand as of March 31, 2025, compared to $22,308,241 thousand at December 31, 2024, reflecting a growth of 0.5%[16] - The total shareholders' equity increased to $1,864,560 thousand as of March 31, 2025, from $1,691,617 thousand as of March 31, 2024[20] - The balance of accumulated other comprehensive income (loss) was $(67,641) thousand as of March 31, 2025, compared to $(132,305) thousand as of March 31, 2024[20] - The total estimated fair value of liabilities, including deposits, is $18,939,936 as of March 31, 2025, slightly up from $18,842,810 as of December 31, 2024, showing an increase of about 0.52%[146] Deposits and Funding - Total deposits increased to $18,932,925 thousand as of March 31, 2025, compared to $18,846,461 thousand at December 31, 2024, reflecting a growth of 0.5%[16] - The net increase in deposits for Q1 2025 was $66,911 thousand, compared to $41,501 thousand in Q1 2024[24] - Demand, non-interest bearing deposits decreased to $5.553 billion from $5.608 billion, a decline of 1.0%[104] - Time deposits greater than the FDIC limit of $250,000 totaled $764.4 million as of March 31, 2025, down from $803.1 million at the end of 2024, a decrease of 4.6%[104] Loans and Leases - Total loans and leases receivable increased to $13.6 billion as of March 31, 2025, compared to $13.1 billion at December 31, 2024, showing a growth of approximately 5%[58] - The total commercial loans and leases receivable reached $12.3 billion as of March 31, 2025, an increase from $11.9 billion at December 31, 2024[58] - Loans held for sale significantly decreased from $204.8 million at December 31, 2024, to $37.5 million at March 31, 2025, indicating a reduction of approximately 82%[54] - The total amount of accrued interest recorded for total loans was $86.2 million at March 31, 2025, down from $88.2 million at December 31, 2024[59] Derivatives and Fair Value - The fair value of derivatives as of March 31, 2025, is $14,146, which includes $99 classified as Level 3 inputs[146] - The company utilizes a fair value hierarchy with three levels, where Level 1 includes unadjusted quoted prices in active markets, Level 2 includes observable inputs, and Level 3 includes unobservable inputs[138] - Customers executed interest rate swaps and caps with an aggregate notional amount of $1.2 billion as of March 31, 2025, to facilitate customer risk management strategies[160] - The cumulative amount of fair value hedging adjustment for deposits was $1,815,082,000 as of March 31, 2025, compared to $1,794,923,000 at the end of 2024[159] Regulatory and Compliance - Customers will adopt ASU 2023-09 for the year ending December 31, 2025, requiring annual disclosures of specific reconciling items exceeding 5% of the effective tax rate[32] - ASU 2024-03, effective for fiscal years beginning after December 15, 2024, will require disclosure of specified costs and expenses in financial statements[32] - ASU 2025-01, effective for annual reporting periods beginning after December 15, 2026, will clarify the effective date for disaggregation disclosures[32]

Core Insights - Customers Bancorp (CUBI) reported revenue of $194.28 million for Q1 2025, a 7% year-over-year increase, with an EPS of $1.54 compared to $1.68 a year ago, indicating a decline in earnings per share [1] - The reported revenue exceeded the Zacks Consensus Estimate of $186.86 million by 3.97%, and the EPS surpassed the consensus estimate of $1.28 by 20.31% [1] Financial Performance Metrics - Efficiency Ratio stood at 52.9%, better than the average estimate of 57.7% from two analysts [4] - Net Interest Margin was reported at 3.1%, matching the average estimate from two analysts [4] - Average Balance of Total Interest-Earning Assets was $21.65 billion, slightly below the average estimate of $21.69 billion [4] - Total Non-Interest Income reached $26.83 million, exceeding the average estimate of $24.46 million from three analysts [4] - Bank-Owned Life Insurance income was $4.66 million, significantly higher than the average estimate of $2.14 million [4] - Net Interest Income (tax equivalent) was $167.81 million, slightly above the average estimate of $166.93 million [4] - Mortgage Finance Transactional Fees were $0.93 million, slightly below the average estimate of $0.96 million [4] - Net Interest Income was reported at $167.45 million, exceeding the average estimate of $159.68 million [4] - Commercial Lease Income was $10.67 million, above the average estimate of $10.51 million [4] - Loan Fees were reported at $7.24 million, below the average estimate of $8.66 million [4] Stock Performance - Shares of Customers Bancorp have returned -7% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Customers Bancorp (CUBI) reported quarterly earnings of $1.54 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, but down from $1.68 per share a year ago, representing an earnings surprise of 20.31% [1] - The company posted revenues of $194.28 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.97%, compared to $181.62 million in the same quarter last year [2] - Customers Bancorp has outperformed the S&P 500, with shares losing about 0.5% since the beginning of the year, while the S&P 500 declined by 8.6% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.56 on revenues of $197.32 million, and for the current fiscal year, it is $6.08 on revenues of $799.68 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Q1 2025 net income available to common shareholders was $9.5 million, or $0.29 per diluted share, a decrease of 59.1% from Q4 2024[3] - Core earnings for Q1 2025 were $50.0 million, or $1.54 per diluted share, representing a 13.2% increase from Q4 2024[3] - Net income available for common shareholders decreased to $9.5 million, down 79.3% from $45.9 million year-over-year[12] - GAAP net income for Q1 2025 was $9,523,000, translating to $0.29 per share, a decrease from $23,266,000 ($0.71 per share) in Q4 2024[77] - Core earnings for Q1 2025 increased to $50,002,000, or $1.54 per share, compared to $44,168,000 ($1.36 per share) in Q4 2024, representing a 4% increase[77] Asset and Loan Growth - Total assets increased by $1.1 billion, or 5.0%, to $22.4 billion compared to the previous year[12] - Total loans and leases reached $15.1 billion, up $2.2 billion, or 16.8%, year-over-year[16] - Total loans and leases held for investment grew by $611.7 million, or 4.2%, in Q1 2025 from Q4 2024[3] - Loans and leases receivable, net of allowance for credit losses, reached $14,919,363 thousand as of March 31, 2025, up from $14,311,987 thousand in Q4 2024, marking a growth of 4.2%[66] Deposit Trends - Total deposits increased by $86.5 million, or 0.5%, in Q1 2025 from Q4 2024[3] - Total deposits increased to $18,932,925 thousand as of March 31, 2025, compared to $18,846,461 thousand at the end of Q4 2024, reflecting a growth of 0.5%[66] - Money market deposits rose by $213.0 million, or 5.5%, to $4.1 billion, while savings deposits increased by $196.0 million, or 17.3%, to $1.3 billion[29] Credit Quality and Losses - Provision for credit losses was $28.3 million in Q1 2025, up from $21.2 million in Q4 2024[3] - The allowance for credit losses on loans and leases was $141.1 million, an increase of $4.3 million from the previous quarter[18] - Net charge-offs increased to $17.1 million in Q1 2025, compared to $14.6 million in Q4 2024[18] - Non-performing loans (NPLs) as of March 31, 2025, were $43.5 million, slightly up from $43.3 million at December 31, 2024, and increased from $35.7 million a year ago[22] Capital Ratios - Common Equity Tier 1 (CET 1) ratio was 11.7% at March 31, 2025, down from 12.1% at December 31, 2024[3] - Common equity Tier 1 capital ratio decreased to 11.7%, down from 12.6% year-over-year[12] - The CET 1 capital ratio was estimated at 11.7% and the total risk-based capital ratio at 14.6% as of March 31, 2025[38] Efficiency and Cost Management - The efficiency ratio improved to 52.94%, down from 54.58% year-over-year[12] - Non-interest expenses totaled $102.8 million in Q1 2025, a decrease of $7.6 million compared to Q4 2024, primarily due to lower salaries and employee benefits[47] - The core efficiency ratio improved to 52.69% in Q1 2025 from 56.12% in Q4 2024[84] Interest Income and Margin - Net interest income totaled $167.4 million in Q1 2025, a decrease of $0.4 million from Q4 2024, but an increase of $7.1 million from Q1 2024[39][42] - Net interest margin (NIM) increased by 2 basis points to 3.13% in Q1 2025 from 3.11% in Q4 2024[3] - Total interest income for Q1 2025 was $314,909 thousand, a decrease of 4.5% from Q4 2024's $329,906 thousand[65] Stock Performance - The stock price as a percentage of book value was 92% in Q1 2025, up from 90% in Q4 2024[62] - Book value per common share increased by $5.56, or 11.3%, to $54.85[12] Company Recognition - Customers Bancorp, Inc. ranked No. 1 on American Banker’s 2024 list of top-performing banks with $10B to $50B in assets[59]

Financial Performance - As of December 31, 2024, Customers Bancorp had total assets of $22.3 billion, total loans and leases net of the allowance for credit losses (ACL) of $14.5 billion, total deposits of $18.8 billion, and shareholders' equity of $1.8 billion[26]. - Customers Bank funded $22.1 billion and $20.1 billion of mortgage loans to mortgage originators in 2024 and 2023, respectively[47]. - As of December 31, 2024, Customers Bank had $13.2 billion in commercial loans outstanding, representing approximately 90.1% of its total loan portfolio[50]. - Customers originated $4.0 billion and $2.9 billion of commercial and industrial loans in 2024 and 2023, respectively[50]. - The non-performing loans as of December 31, 2024, were only $43.3 million, or 0.30% of the total loan portfolio[40]. - Customers had $1.4 billion in consumer loans outstanding as of December 31, 2024, comprising 9.9% of its total loan portfolio[54]. - The multifamily loans outstanding were $2.3 billion and $2.1 billion as of December 31, 2024 and 2023, respectively[49]. - Customers' commercial equipment financing group had $675.4 million and $547.0 million of equipment finance loans outstanding as of December 31, 2024 and 2023, respectively[48]. Growth Strategy - In 2023, Customers Bancorp expanded its venture banking client coverage by recruiting teams that originated a venture banking loan portfolio purchased from the FDIC, enhancing services in key markets such as Austin, the Bay Area, Boston, Southern California, Chicago, Denver, Raleigh/Durham, and Washington, D.C.[33]. - Customers Bancorp onboarded 10 experienced commercial and business banking teams in 2024 to accelerate deposit growth, enhancing its presence in New York City, Los Angeles, Orange County, and Reno and Las Vegas, Nevada[34]. - The Bank's strategy focuses on organic core loan and deposit growth, with a commitment to a high-tech/high-touch service model supported by state-of-the-art technology[35]. - Customers Bancorp has not acquired any banks since 2011 but continues to evaluate opportunistic acquisitions and team lift-outs to enhance its market presence[36]. - Customers Bancorp's target markets are characterized by attractive demographic, economic, and competitive dynamics, supporting its growth strategies[35]. Corporate Social Responsibility - Customers Bancorp's corporate social responsibility practices emphasize commitment to team members, customers, shareholders, and the communities it serves[27]. - The company distributed $70,000 among 14 team members' children through the Freedom Scholarship Program in 2024[84]. - More than one-third of team members participated in wellness initiatives during 2024, with 96 successfully maximizing their wellness points[80]. - Customers Bank's commitment to corporate social responsibility includes promoting sound governance and investing in team members[65]. - The company offers a variety of health, life, and disability insurance programs to support team members and their families[81]. Team and Management - The management team, led by CEO Jay Sidhu, has significant experience in building banking organizations and integrating mergers and acquisitions[29]. - The management team has extensive experience, having successfully integrated over 30 institutions and numerous asset acquisitions[40]. - Customers Bank's total team members increased from 714 in 2023 to 793 in 2024, with a voluntary turnover rate of 11.2%[67]. - In 2024, Customers Bank welcomed 247 new team members, focusing on deposit generation and risk compliance[69]. - The bank's succession planning focuses on developing internal talent for key executive positions, ensuring a sustainable leadership pipeline[86]. - The bank is actively identifying high-potential team members for succession, emphasizing technical abilities and leadership attributes[88]. Regulatory Compliance - Customers Bank has assets exceeding $10 billion, subjecting it to higher FDIC premium assessments and regulatory scrutiny from the CFPB[92]. - The minimum capital level requirements under Basel III include a common equity Tier 1 risk-based capital ratio of 4.5% and a total risk-based capital ratio of 8%[106]. - The cumulative CECL capital transition impact as of December 31, 2021, amounted to $61.6 million, with a phased-in benefit of $15.4 million expected by December 31, 2024[109]. - The final rules established a capital conservation buffer of 2.5% for 2019 and thereafter, impacting dividend payments and share repurchases if capital levels fall below minimum requirements[104]. - The prompt corrective action framework requires insured depository institutions to meet increased capital level requirements to qualify as "well capitalized"[107]. - Customers Bank has adopted a Code of Ethics and Business Conduct applicable to its directors and officers, ensuring compliance with governance standards[89]. - Federal banking laws regulate the scope of the bank's business, including mergers and acquisitions, which are subject to concentration limits[94]. - The Federal Reserve Board's leverage ratio rules require a minimum Tier 1 leverage ratio of 4% for banks not rated the highest in capital and asset quality[100]. - Customers Bank and the Bancorp met all capital adequacy requirements as of December 31, 2024 and 2023[111]. - The Dodd-Frank Act requires a common equity Tier 1 capital ratio of 6.5%, a Tier 1 risk-based capital ratio of 8%, and a total risk-based capital ratio of 10%[111]. Interest Rate Risk - The Bank's net interest income is significantly impacted by interest rate sensitivity, with management focused on optimizing income while minimizing interest rate risk[565]. - Estimated net interest income for the twelve months ending December 31, 2025 and 2024 is based on existing assets, liabilities, and off-balance sheet financial instruments[568]. - Under upward rate shocks, the projected net interest income increases by 8.4% for 2024 and 9.9% for 2023 with a 3% increase in rates[570]. - Under downward rate shocks, the projected net interest income decreases by 13.6% for 2024 and 11.2% for 2023 with a 3% decrease in rates[570]. - The estimated change in Economic Value of Equity (EVE) shows a decrease of 5.5% for 2024 and 6.2% for 2023 under a 3% upward rate shock[571]. - Under a 3% downward rate shock, the EVE decreases by 15.8% for 2024 and 23.1% for 2023[571]. - Management believes the assumptions used in evaluating interest rate risk are reasonable, but actual results may vary significantly[571]. - The modeling includes a parallel and sustained shift in interest rates for both upward and downward scenarios[569]. - The analysis considers customer preferences and general market conditions in addition to interest rate changes[568]. - The company uses income scenario modeling to measure interest rate sensitivity and manage interest rate risk[567]. - The estimated percentage changes in net interest income are critical for assessing the impact of interest rate fluctuations on financial performance[570].

Core Viewpoint - Customers Bancorp (CUBI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance Indicators - Customers Bancorp is projected to earn $6.45 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 15.2% [8]. - Over the past three months, the Zacks Consensus Estimate for Customers Bancorp has risen by 3.1%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, suggesting superior earnings estimate revisions [9][10]. - The upgrade of Customers Bancorp to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating potential for market-beating returns in the near term [10].

Core Viewpoint - An investigation is underway regarding the Board of Directors of Customers Bancorp, Inc. for potential breaches of fiduciary duties to the company and its shareholders [1] Group 1: Investigation Details - Berger Montague is advising shareholders about the investigation into Customers Bancorp's Board of Directors [1] - Shareholders can contact Berger Montague for more information regarding the investigation [2] Group 2: Regulatory Actions - On August 8, 2024, the Federal Reserve announced an enforcement action against Customers Bancorp due to significant deficiencies in risk management practices and compliance with anti-money laundering laws [3] - A consent order from the Commonwealth of Pennsylvania indicated that these deficiencies suggested unsafe or unsound banking practices related to BSA/AML requirements [3] Group 3: Whistleblower Information - Whistleblowers with non-public information about Customers Bancorp are encouraged to assist in the investigation and may receive rewards under the SEC Whistleblower program [3]