Customers Bancorp (CUBI) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Customers Bancorp (CUBI) reported a revenue of $167.1 million for the quarter ended September 2024, reflecting a decline of 23.2% year-over-year and missing the Zacks Consensus Estimate of $192.64 million by 13.26% [1] - The earnings per share (EPS) for the quarter was $1.26, down from $2.59 in the same quarter last year, and also below the consensus estimate of $1.45, resulting in an EPS surprise of -13.10% [1] Financial Performance Metrics - Efficiency Ratio stood at 62.4%, significantly higher than the four-analyst average estimate of 54% [3] - Net Interest Margin was reported at 3.1%, slightly below the estimated 3.3% by three analysts [3] - Average Interest-Earning Assets totaled $20.69 billion, marginally lower than the $20.72 billion average estimate [3] - Net charge-offs to average loans were 0.5%, better than the two-analyst average estimate of 0.6% [3] - Total Non-Interest Income was $8.56 million, substantially below the estimated $21.32 million by four analysts [3] - Net Interest Income (tax equivalent) was reported at $158.94 million, lower than the average estimate of $171.83 million [3] - Mortgage warehouse transactional fees were $1.09 million, compared to the $1.35 million average estimate [3] - Commercial lease income was $10.09 million, slightly above the average estimate of $10.06 million [3] - Loan fees reached $8.01 million, exceeding the estimated $5.28 million [3] - Other Non-Interest Income was $1.87 million, slightly below the two-analyst average estimate of $1.98 million [3] Stock Performance - Shares of Customers Bancorp have returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]