Customers Bancorp, Inc.

What they do

Customers Bancorp conducts banking through its wholly owned subsidiary, Customers Bank, serving commercial businesses through community, SBA and private client groups. Nationally it provides specialized lending including fund finance, real estate specialty finance, technology and venture, healthcare, financial institutions group and municipal finance, plus mortgage finance, commercial equipment financing and SBA lending. It also serves consumers through a branch network, residential mortgages, and fintech partnerships including Banking-as-a-Service. At December 31, 2025 the company reported total assets of $24.9 billion, total loans and leases net of the ACL of $16.6 billion, and total deposits of $20.8 billion.

Revenue drivers

• Net interest income on loans and leases — The company states that like most financial institutions it derives the majority of its income from interest on interest-earning assets such as loans, leases and investments. Loans totaled $18.0 billion at June 30, 2026, up 16.9% from a year earlier.
• Specialized and commercial lending verticals — National specialized lending includes fund finance, real estate specialty finance, technology and venture, healthcare, financial institutions group and municipal finance, alongside mortgage finance, commercial equipment financing and SBA lending. Management credited multiple verticals for Q2 2026 loan growth of 3.6% over Q1 2026.
• cubiX payments platform — Customers describes cubiX as its proprietary B2B instant payments platform and a risk factor item. Management said cumulative network transaction volume surpassed $5 trillion in Q2 2026, and it is not quantified as a separate revenue line in the provided excerpts.
• Deposits and treasury/fintech channels — Funding comes primarily from branch-light deposits and digital bank deposit offerings, plus payments and treasury services to businesses and Banking-as-a-Service to fintech companies. Total deposits reached a record $21.7 billion at June 30, 2026, with non-interest bearing deposits of $6.9 billion, or 31.8% of total deposits.

Recent performance

For Q2 2026, net income available to common shareholders was $71.6 million, or $2.05 per diluted share, with ROAA of 1.13% and ROCE of 13.22%; core earnings were $71.5 million, or $2.05 per diluted share. Total deposits increased $140.3 million, or 0.6%, from Q1 2026 and $2.8 billion, or 14.5%, from Q2 2025 to a record $21.7 billion. Total loans increased $623.8 million, or 3.6%, from Q1 2026 and $2.6 billion, or 16.9%, from Q2 2025 to a record $18.0 billion. Q2 2026 efficiency ratio was 50.55% versus 51.23% a year earlier. Management reported an NPA ratio of 0.32% of total assets and reserves at 293% of non-performing loans, and repurchased 92,804 shares at a weighted average price of $73.03 in the quarter.

Strategy

The stated plan is to become a leading regional bank holding company through organic core loan and deposit growth, team recruitment and opportunistic value-added acquisitions. The company emphasizes a high-tech, high-touch, branch-light model with a single-point-of-contact private banking strategy and investment in state-of-the-art technology. In Q2 2026 management highlighted AI and automation, including an AI-powered loan closing pilot that closed selected commercial loans in seven days versus a typical 30 to 60 days, AI-driven prospecting gains and AI-powered KYC and OFAC false-positive clearing. Management said cubiX continued to scale and that the real estate vertical added $300 million in deposit balances in the quarter with a nine-figure pipeline per quarter through year end. New commercial banking teams hired since Q2 2023 added approximately $570 million in deposits year to date, 65% of that growth non-interest bearing.

Risks

• Credit and allowance adequacy — The company lists risks related to maintaining an appropriate level of ACL and to changes in loan portfolio composition, with emphasis on commercial and industrial including specialized lending, mortgage finance, commercial real estate, multifamily and consumer loans.
• Commercial real estate and New York multifamily — Risk factors specifically cite the commercial real estate market and the impacts of legislative or regulatory changes on the New York state multifamily loan portfolio.
• Liquidity and deposit competition — The company flags risks in maintaining sufficient liquidity, including the ability to gather, grow and retain lower-cost deposits and maintain a favorable deposit composition, and notes competition affects deposit rates, loan rates and net interest margin.
• Regulatory and supervisory exposure — The 10-Q cautionary language cites potential negative consequences from regulatory violations, investigations and examinations, including supervisory actions, fines and penalties, sanctions, remedial actions and reputational damage.

Outlook

Management said Q2 2026 showed continued execution of strategic priorities and success in growing franchise value. The company highlighted AI-driven productivity, revenue and risk-management results, including the loan closing pilot delivered one to two quarters ahead of schedule. It said the real estate vertical has a nine-figure pipeline per quarter through year end and that loan and deposit momentum continued across multiple verticals. CEO Sam Sidhu said Q2 2026 delivered growth of about 10% in revenue, 14% in core earnings and 16% in book value per share versus Q2 2025.