Customers Bancorp (CUBI) Q4 2024 earnings summary

Executive summary

• Achieved record growth in 2024, with total assets reaching $22.3B and total deposits at $18.8B, doubling the bank's size in five years.

• Core diluted EPS increased 2.5x over five years to $5.60 in FY'24; full year 2024 net income was $166.4M.

• Management and board took 2024 bonuses entirely in stock, reflecting confidence in future prospects.

• Tangible book value per share surpassed $54, more than doubling in five years with a 16% CAGR.

• Maintained superior credit quality with NPA ratio at 0.25% and reserves to NPLs at 316%.

Financial highlights

• Q4 2024 core earnings per share were $1.36 on net income of $44M; full-year core net income was $183M, or $5.60 EPS.

• Q4 2024 net interest income was $172.5M, with a net interest margin of 3.11%, up 5 bps sequentially.

• Total loans and leases reached $14.7B, up 12% year-over-year and 4% quarter-over-quarter.

• Total deposits increased 4% sequentially to $18.8B; average cost of deposits declined 39 bps in Q4 2024.

• Tangible book value increased to $54 per share, up $6.50 for the year (14%).

Outlook and guidance

• 2025 guidance: deposit growth of 5–9%, loan growth of 7–10%, and net interest income growth of 3–7%.

• Core efficiency ratio projected in the low-to-mid 50s for 2025; CET1 ratio target of 11.5%.

• ROE expected to improve to mid-teens and ROA above 1% over the medium term.

• Effective tax rate expected between 22% and 25%.