The 5 Most Interesting Analyst Questions From Customers Bancorp’s Q4 Earnings Call

Regional banking company Customers Bancorp announced better-than-expected revenue in Q4 CY2025, with sales up 22.5% year on year to $236.9 million. Its non-GAAP profit of $2.06 per share was 0.8% above analysts’ consensus estimates.

Customers Bancorp (CUBI) Q4 CY2025 Highlights:

• Revenue: $236.9 million vs analyst estimates of $231.3 million (22.5% year-on-year growth, 2.4% beat)
• Adjusted EPS: $2.06 vs analyst estimates of $2.04 (0.8% beat)
• Adjusted Operating Income: $97.25 million vs analyst estimates of $120.3 million (41.1% margin, 19.2% miss)
• Market Capitalization: $2.55 billion

StockStory’s Take

Customers Bancorp reported a mixed fourth quarter, with revenue and adjusted non-GAAP earnings per share both coming in above Wall Street expectations, but adjusted operating income significantly missing consensus forecasts. Management pointed to robust deposit growth and payments platform expansion as key contributors, highlighting a 10% annual increase in total deposits led by new commercial banking teams and continued strong adoption of the cubiX payments platform. However, higher-than-expected noninterest expenses, including onboarding and legal costs tied to new team hires, compressed margins and contributed to the negative market reaction. CFO Mark McCollom acknowledged these expense pressures, stating, “We had a total of $4.8 million of unique expense in the quarter, which included $1.9 million in legal fees associated with the new team on boarding.”

Looking ahead, Customers Bancorp’s guidance for 2026 centers on continued organic growth in both loans and deposits, further expansion of its payments network, and efficiency gains from ongoing operational improvement initiatives. Management emphasized the potential for AI-driven productivity enhancements and deeper client relationships through expanded payments offerings. CEO Samvir Sidhu stated, "Our team recruitment strategy has been foundational to our recent success," with expectations that newly hired commercial banking teams will drive further deposit growth. The company also plans to leverage AI across business functions, aiming for increased operational leverage and a more scalable platform.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to successful deposit gathering, cubiX platform expansion, and investments in technology and talent, while acknowledging expense-related margin pressures.

• Deposit franchise transformation: The company’s focus on recruiting new commercial banking teams resulted in $1.6 billion in annual deposit growth, with a significant share of these deposits being noninterest-bearing, indicating success in gathering stable, low-cost funding.
• cubiX payments platform scaling: The in-house cubiX platform processed over $2 trillion in payments during the year, now positioning Customers Bancorp as the largest U.S. commercial payments network, surpassing major industry players in transaction volume.
• AI adoption for efficiency: All employees received AI training, with management reporting a 20% productivity gain from enterprise-level AI tools. This early-stage adoption is expected to drive operational efficiencies and support customer-facing innovation.
• Noninterest expense pressures: Unique onboarding and legal expenses related to team recruitment, along with increased insurance and compensation costs, drove up noninterest expenses. While some of these were one-time, management flagged ongoing investments in people and technology as continued drivers of expense growth.
• Diversified loan growth: Loan expansion was broad-based across commercial real estate, healthcare, and mortgage finance, with management emphasizing that no single segment dominated growth, reflecting the bank’s diversified lending capabilities.

Drivers of Future Performance

Management expects 2026 performance to be driven by further deposit and loan growth, expanded payments capabilities, and operational leverage through AI and efficiency initiatives.

• Payments and deposit growth focus: Management is targeting 8%-12% growth in both loans and deposits, with commercial banking team expansion and broadening cubiX adoption seen as primary levers. Success in onboarding new client verticals, such as real estate and retail, will be key to sustaining low-cost deposit growth.
• AI-driven operational improvement: The company is rolling out department-specific AI solutions for workflow orchestration, underwriting, and compliance. Management believes these efforts will yield additional productivity gains and support scalability as the business grows.
• Expense management challenges: While the operational excellence initiative aims to generate $20 million in run-rate savings to reinvest in growth, ongoing investments in technology, talent, and compliance, as well as potential legal and regulatory costs, present continued risks to margin expansion.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will closely watch (1) whether new commercial banking team hires translate into continued double-digit deposit and loan growth, (2) the scale and monetization of the cubiX payments platform into additional commercial verticals, and (3) the realization of productivity and efficiency gains from AI adoption and operational initiatives. Execution on expense control and maintaining credit quality will also be critical to progress.

Customers Bancorp currently trades at $76.11, down from $81.21 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

Regional banking company Customers Bancorp reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 22.5% year on year to $236.9 million. Its non-GAAP profit of $2.06 per share was 0.8% above analysts’ consensus estimates.

Customers Bancorp (CUBI) Q4 CY2025 Highlights:

• Net Interest Income: $204.4 million vs analyst estimates of $200.1 million (21.8% year-on-year growth, 2.1% beat)
• Net Interest Margin: 3.4% vs analyst estimates of 3.4% (in line)
• Revenue: $236.9 million vs analyst estimates of $231.3 million (22.5% year-on-year growth, 2.4% beat)
• Efficiency Ratio: 49.5% vs analyst estimates of 47.7% (177.7 basis point miss)
• Adjusted EPS: $2.06 vs analyst estimates of $2.04 (0.8% beat)
• Tangible Book Value per Share: $61.77 vs analyst estimates of $60.92 (14.2% year-on-year growth, 1.4% beat)
• Market Capitalization: $2.74 billion

Company Overview

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Thankfully, Customers Bancorp’s 13.9% annualized revenue growth over the last five years was solid. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Customers Bancorp’s recent performance shows its demand has slowed as its annualized revenue growth of 6.8% over the last two years was below its five-year trend.

This quarter, Customers Bancorp reported robust year-on-year revenue growth of 22.5%, and its $236.9 million of revenue topped Wall Street estimates by 2.4%.

Net interest income made up 89% of the company’s total revenue during the last five years, meaning Customers Bancorp barely relies on non-interest income to drive its overall growth.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

Customers Bancorp’s TBVPS grew at an incredible 16.9% annual clip over the last five years. TBVPS growth has recently decelerated to 13.9% annual growth over the last two years (from $47.61 to $61.77 per share).

Over the next 12 months, Consensus estimates call for Customers Bancorp’s TBVPS to grow by 11.9% to $69.14, mediocre growth rate.

Key Takeaways from Customers Bancorp’s Q4 Results

It was encouraging to see Customers Bancorp beat analysts’ revenue expectations this quarter. We were also happy its net interest income outperformed Wall Street’s estimates. On the other hand, its EPS slightly beat. Overall, this print had some key positives. The market seemed to be hoping for more, and the stock traded down 2.7% to $78.98 immediately after reporting.

Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company Customers Bancorp will be reporting results tomorrow afternoon. Here’s what to look for.

Customers Bancorp beat analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $231.8 million, up 38.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

Is Customers Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Customers Bancorp’s revenue to grow 19.6% year on year to $231.3 million, improving from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.04 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Customers Bancorp has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Customers Bancorp’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 17.2%, topping estimates by 5.3%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Customers Bancorp is down 1.3% during the same time and is heading into earnings with an average analyst price target of $87 (compared to the current share price of $75.38).

Regional banking company Customers Bancorp will be reporting earnings this Thursday after market hours. Here’s what to look for.

Customers Bancorp beat analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $231.8 million, up 38.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

Is Customers Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Customers Bancorp’s revenue to grow 19.6% year on year to $231.3 million, improving from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.04 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Customers Bancorp has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Customers Bancorp’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 15.9%, topping estimates by 4.1%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Customers Bancorp is down 2.2% during the same time and is heading into earnings with an average analyst price target of $87 (compared to the current share price of $75.38).