Customers Bancorp (CUBI) Q1 2025 earnings summary

Executive summary

• Q1 2025 core earnings were $50 million ($1.54 per share), up year-over-year, while GAAP net income fell 79% to $9.5 million due to a $51.3 million impairment loss on securities and higher credit loss provisions.

• Achieved strong loan and deposit growth, with loans up 4.2% sequentially and 16.8% year-over-year, and deposits up 0.5% sequentially and 5.4% year-over-year.

• Net interest margin improved to 3.13%, driven by lower deposit costs and favorable deposit mix.

• Tangible book value per share reached $54.74, up over $5.50 year-over-year, with a 15% CAGR over five years.

• Maintained strong capital and liquidity positions, with CET1 ratio at 11.7% and immediately available liquidity covering 155% of uninsured deposits.

Financial highlights

• Net interest income was $167.4 million, up $7.1 million year-over-year, with net interest margin at 3.13%.

• Core non-interest expense declined 5% sequentially to $103 million; core efficiency ratio improved to 52.7%.

• Provision for credit losses rose to $28.3 million, reflecting macroeconomic factors and loan growth.

• Non-interest income reported a loss of $24.5 million, mainly due to the $51.3 million impairment loss on AFS securities.

• Book value per share rose to $54.85, and tangible book value per share to $54.74.

Outlook and guidance

• Management reaffirmed full-year guidance, targeting loan growth of 7–10%, deposit growth of 5–9%, net interest income growth of 3–7%, and a core efficiency ratio in the low to mid-50% range.

• Focus remains on deposit franchise transformation, risk management, and profitability, with expectations for continued margin expansion and robust loan origination pipeline.