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 for Q3 2025, with diluted EPS of $2.20, driven by higher net interest income, lower deposit costs, and positive operating leverage.

• Achieved top-tier earnings performance, improved capital quality, and disciplined growth across deposits, loans, and fee income, supported by franchise transformation and digital platform enhancements.

• Maintained robust capital and liquidity positions, with industry-leading EPS and book value compounding, and strong rankings among U.S. banks.

• Completed a $163 million common equity offering, oversubscribed by 10x, further strengthening capital levels and enabling potential preferred stock redemption.

• Continued recruitment of new banking teams and digital initiatives, with AI projects delivering productivity gains and over 100 use cases identified.

Financial highlights

• Net income reached $73.7 million, with diluted EPS of $2.20 for Q3 2025; core EPS up 64% year-over-year.

• Net interest income was $201.9 million, up 14% quarter-over-quarter and 27.4% year-over-year; net interest margin expanded by 19 basis points to 3.46%.

• Total assets grew 8.7% since year-end 2024 to $24.3 billion; total deposits up 8% to $20.4 billion; loans and leases up 6% to $16.3 billion.

• Efficiency ratio improved to 45.4%, with non-interest expense to average asset ratio at 1.74%.

• Tangible book value per share increased 6.2% sequentially to $59.72, up over 15% CAGR since Q4 2019.

Outlook and guidance

• Raised full-year 2025 guidance: deposit growth expected at 8%-10%, loan growth at 13%-14%, and net interest income at 13%-15%.

• Efficiency ratio projected below 50% for the year; CET1 ratio expected to remain around 13% at year-end 2025.

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

• Continued emphasis on growing non-interest bearing and low-cost deposits, maintaining strong liquidity, and managing asset sensitivity.

• Monitoring macroeconomic and geopolitical risks, including inflation, interest rates, and credit quality impacts.