Customers Bancorp (CUBI) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income available to common shareholders was $55.8M, with core EPS of $1.80 and strong operational execution, despite higher credit loss provisions and a $51.3M impairment loss on AFS debt securities.

• Tangible book value per share reached $56.24, more than doubling since Q4 2019 (15% CAGR).

• Leadership transition announced: Jay Sidhu to become Executive Chairman in 2026, Sam Sidhu to assume CEO role.

• Deposit transformation continued with $300M growth from new teams and a $350M reduction in brokered deposits in Q2.

• Superior credit quality maintained, with NPA ratio at 0.27% and reserves to NPLs at 518%.

Financial highlights

• Net interest income rose 6% to $176.7M, with net interest margin expanding by 14 bps to 3.27%, marking the third consecutive quarter of improvement.

• Efficiency ratio improved to 51.6%, top quartile among peers, with noninterest expenses at $106.6M.

• Total assets reached $22.6B, total loans and leases $15.4B, and total deposits $19.0B as of Q2 2025.

• Provision for credit losses was $20.8M for Q2, down from Q1 but up year-over-year.

• Non-interest income fell 4.6% to $29.6M for Q2, mainly due to securities impairment.

Outlook and guidance

• FY25 guidance raised: loan growth 8–11%, net interest income growth 7–10%, deposit growth 5–9%, and core efficiency ratio targeted in the low to mid-50s.

• CET1 ratio expected to remain above 11.5%; tax rate at the low end of 22–25%.

• Focus on deposit franchise transformation, risk management, and profitability.

• Management acknowledges ongoing uncertainty from inflation, rates, and geopolitics but maintains strong liquidity and capital.