Customers Bancorp (NYSE:CUBI) delivered a strong start to 2026, posting first-quarter results that topped analyst expectations on both the top and bottom lines. The company reported net income available to common shareholders of $69.7 million, or $1.97 per diluted share, exceeding the consensus estimate of $1.93 per share. Revenue for the quarter came in at $225.7 million, also above the analyst forecast of $212.7 million.
The market responded positively to the news, with shares gaining approximately 1.3% in after-market trading immediately following the release. This uptick extends a broader rally that has seen the stock rise 11.7% over the past month, signaling growing investor confidence in the regional lender's trajectory under new leadership.
Recent Performance
The first quarter marked the first full reporting period under CEO Sam Sidhu, who took over from founder Jay Sidhu on January 1, 2026. The numbers show the transition has not disrupted momentum. Net interest income totaled $191.4 million for the quarter, a notable increase of $23.9 million compared to the same period last year, driven by higher average loan balances and a favorable shift in deposit mix. The net interest margin came in at 3.22%, down sequentially from 3.40% in Q4 2025 but still above the 3.13% reported in Q1 2025.
Balance sheet growth was a standout theme. Total deposits increased by $813.9 million, or 3.9%, from the prior quarter to reach $21.6 billion. More importantly, non-interest bearing deposits—the most stable and cost-effective source of funding—grew by $436 million to a record $6.7 billion, now representing 31.2% of total deposits. The total average cost of deposits declined by 8 basis points to 2.46% from the previous quarter.
Loan growth was equally robust. Total loans and leases held for investment expanded by $609 million, or 3.6%, quarter-over-quarter to $17.4 billion, with broad-based contributions across multiple verticals. C&I specialized lending led the way, increasing by $308 million.
Credit quality remains a strength for the bank. The non-performing asset ratio stood at just 0.29% of total assets, while the allowance for credit losses covers non-performing loans at a comfortable 337%. Net charge-offs for the quarter were $13 million, down from $14 million in the prior quarter and $17 million a year ago.
Valuation Metrics
The company continues to build tangible book value at a healthy clip. Tangible book value per share rose to $63.54 at quarter-end, up from $61.77 at the end of 2025 and significantly higher than the $54.74 recorded a year ago—a 16% year-over-year increase. The tangible common equity to tangible assets ratio stood at 8.3%, up 60 basis points from March 2025.
Return on average common equity (ROCE) came in at 13.16% on a GAAP basis, while the core ROCE was 13.12%. The efficiency ratio improved to 49.68%, down from 52.94% in the year-ago quarter, indicating the bank is generating greater operating leverage.
During the quarter, the company repurchased 621,668 shares of common stock at a weighted average price of $68.04, demonstrating management's confidence in the stock's value.
Analyst Views and Outlook
The company's results exceeded consensus expectations for both earnings and revenue, continuing a pattern of execution during what is typically a slower quarter for the banking industry. The full-year analyst consensus for 2026 currently sits at revenue of $900.1 million and earnings per share of approximately $8.31.
Looking ahead, management outlined four key priorities for 2026:
- Increasing utilization of AI and automation technologies to enhance client experiences and productivity
- Deepening and broadening payments capabilities across industries
- Continuing to deliver above-industry-average loan and deposit portfolio growth
- Maintaining high standards of regulatory and risk management excellence
CFO Mark McCollom noted that the company achieved its initial operational excellence goal of $20 million in annual run rate revenue enhancements and expense savings, providing capacity for further investment. Management highlighted that core revenue grew by 16% while core expense growth was limited to just 9% year-over-year, driving the 300-basis-point improvement in the efficiency ratio.
What to Watch
The quarter included a one-time impact from the sunsetting of discount accretion that had benefited the second half of 2025, which management flagged as expected. The bank's strong pipeline and deposit-focused team recruitment strategy appear to be gaining momentum, with 1,167 new commercial accounts added in the quarter alone.
For investors looking to dive deeper into the numbers and forward projections, more detailed historical earnings data and future estimates can be found on the earnings page and analyst forecasts page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance and analyst estimates are not guarantees of future results. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.