Customers Bancorp Inc (NYSE:CUBI) reported financial results for the third quarter of 2025, delivering a robust performance that significantly exceeded analyst expectations on both the top and bottom lines. The earnings beat was met with a positive reaction in after-hours trading, with shares rising over 5% following the announcement.
Earnings and Revenue Performance
The bank holding company posted core earnings of $73.5 million, or $2.20 per diluted share, comfortably surpassing the analyst consensus estimate of $1.97 per share. This represents an earnings beat of approximately 12%. Revenue for the quarter also came in strong at $232.1 million, well above the $196.4 million analysts had projected, marking an 18% revenue beat.
The quarterly performance highlights include:
- Core EPS: $2.20 (versus estimate of $1.97)
- Revenue: $232.1 million (versus estimate of $196.4 million)
- Net Interest Income: $201.9 million, a $25.2 million increase from the previous quarter
- Net Interest Margin: 3.46%, expanding 19 basis points from Q2 2025
Balance Sheet and Credit Quality
The company demonstrated significant growth and maintained strong credit metrics during the quarter. Total assets grew to $24.3 billion, driven by a $1.4 billion increase in total deposits, which reached $20.4 billion. Loan growth was particularly notable, with loans and leases held for investment increasing $893 million to $16.3 billion.
Credit quality remained a strength for the institution:
- Non-performing loans declined to 0.17% of total loans
- Allowance for credit losses covered non-performing loans by 534%
- Net charge-offs were $15 million, or 0.39% of average loans annualized
Capital and Strategic Initiatives
During the quarter, Customers Bancorp successfully raised $163 million of common equity, strengthening its capital position. This contributed to an increase in the CET1 ratio to 13.0% from 12.1% in the prior quarter. Book value per share grew to $59.83, up approximately 6% from the second quarter.
Chairman and CEO Jay Sidhu commented on the results, stating, "We are pleased with our third quarter results that show the company's continued execution of its strategic priorities and underscore our success in growing franchise value." He highlighted the successful equity raise as "a clear vote of confidence in our strategy, our team, and the disciplined execution of our business model."
Outlook and Analyst Estimates
Looking ahead, management expressed optimism about the company's positioning. President Sam Sidhu noted, "We believe we are incredibly well positioned to continue to take market share winning new client relationships and that we have the right strategy, the right team, and a client-centric culture to achieve our goals in 2025 and beyond."
Analyst estimates for the coming periods suggest continued confidence in the company's trajectory:
- Q4 2025 Revenue Estimate: $197.6 million
- Q4 2025 EPS Estimate: $1.90
- Full Year 2025 Revenue Estimate: $746.4 million
- Full Year 2025 EPS Estimate: $7.27
The company's cubiX digital banking platform was highlighted as a key differentiator, with management describing it as "a mission-critical real-time payments solution for our commercial clients."
For a detailed view of historical earnings, future estimates, and analyst projections for Customers Bancorp, readers can review the earnings and estimates data.
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