Customers Bancorp (CUBI) Q3 2025 earnings summary

Executive summary

• Net income available to common shareholders rose 71.7% year-over-year to $73.7 million, or $2.20 per diluted share, with ROAA at 1.26% and ROCE at 15.57%, driven by higher net interest income and lower deposit costs.

• Achieved strong Q3 2025 results with significant deposit and loan growth, margin expansion, and improved efficiency ratio.

• Continued franchise transformation through new team recruitment, digital platform enhancements, and leadership transition.

• Maintained robust capital and liquidity positions, supporting future growth.

• Redeemed all Series E Preferred Stock, reducing preferred dividends and incurring a $1.9 million loss on redemption.

Financial highlights

• Net interest income for Q3 2025 was $201.9 million, up 14% quarter-over-quarter and 27.4% year-over-year, with net interest margin rising to 3.46%.

• Total revenues were $232 million, up 12% quarter-over-quarter.

• Net income reached $73.7 million, with diluted EPS of $2.20 for Q3 2025.

• Efficiency ratio improved to 45.4%, with non-interest expense as percent of average assets at 1.74%.

• Tangible book value per share increased 6.2% quarter-over-quarter to $59.72.

Outlook and guidance

• FY 2025 outlook raised: deposit growth expected at 8–10%, loan growth at 13–14%, and net interest income at 13–15%.

• Core efficiency ratio projected below 50%; CET1 ratio expected at ~13% by year-end 2025.

• Management remains focused on differentiated service, product offerings, and talent recruitment to drive sustainable long-term growth.

• The cubiX platform is highlighted as a mission-critical real-time payments solution, supporting future market share gains.

• Company expects continued uncertainty from macroeconomic factors, including inflation, interest rates, and geopolitical risks.