In This Article:
-
Revenue Growth: 15% annual growth rate over the last five years.
-
Core Earnings Per Share (EPS): $1.54 for Q1 2025.
-
Net Income: $50 million for Q1 2025.
-
Net Interest Income: $167.4 million for Q1 2025.
-
Net Interest Margin: Increased to 3.13%, up 2 basis points sequentially.
-
Loan Growth: 12% annualized pace in Q1 2025.
-
Deposit Growth: Total deposits increased to just under $19 billion.
-
Average Cost of Deposits: Reduced by 25 basis points in Q1 2025.
-
Non-Interest Bearing Deposits: $5.6 billion, nearly 30% of total deposits.
-
Core Return on Common Equity (ROCE): 11.7% for Q1 2025.
-
Return on Assets (ROA): 97 basis points for Q1 2025.
-
Core Efficiency Ratio: Improved to 52.7%.
-
Tangible Book Value Per Share: $54.74, up more than $5.50 year over year.
-
Common Equity Tier 1 (CET1) Ratio: 11.7%.
-
Total Capital Ratio (TCO): Increased to 7.7%.
-
Non-Performing Assets (NPA) Ratio: 26 basis points.
-
Reserves to Non-Performing Loans (NPLs): 324%.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Customers Bancorp Inc (NYSE:CUBI) reported strong core performance across its franchise, with significant low-cost granular deposit growth and a 25 basis point reduction in average deposit costs.
-
The company achieved a 12% annualized loan growth rate, driven by selective onboarding of credits and leveraging long-standing relationships.
-
Net interest margin increased by 2 basis points due to reduced interest expenses, marking the second consecutive quarter of margin expansion.
-
Operational excellence initiatives surpassed targets, realizing $30 million in annualized impact, exceeding the original $20 million target.
-
Capital and liquidity metrics remain robust, with CET1 at 11.7% and a TCO ratio of 7.7%, providing substantial flexibility for organic growth.
Negative Points
-
The macroeconomic landscape remains complex and volatile, posing challenges for the banking industry.
-
Despite strong performance, there is uncertainty in the rate trajectory, which could impact net interest income expansion.
-
The company undertook a balance sheet optimization process, indicating potential concerns about credit-sensitive securities.
-
There is ongoing pressure to maintain low-cost deposits amidst market volatility and competition.
-
The company faces challenges in sustaining its high growth rates in deposits and loans, given the evolving economic conditions.
Q & A Highlights
Q: In terms of the new banking teams, are the deposits coming over still 25% non-interest bearing, and is that the expectation going forward? A: Sam Sidhu, President and CEO of Customers Bank, confirmed that the deposits from new teams are generally closer to 30% non-interest bearing. He noted a significant increase in non-interest bearing deposits from commercial teams, despite some offset from lower cubiX balances.