Our deposit transformation momentum continued as we once again saw significant low-cost granular deposit growth strengthen the quality of our deposit franchise. This is evident with another 25 basis point reduction in our average cost of deposits in the quarter.
— Sam Sidhu
03Detailed Report
CUBI-PE
Company CUBI-PE
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 29, 2026
Swipe to view all report sections
Executive Summary
Customers Bancorp (CUBI-PE) reported a strong start to 2025, continuing a multi-quarter deposit transformation and disciplined loan growth, supported by margin expansion and efficiency gains. The quarter featured robust core franchise momentum, with significant low-cost, granular deposit growth and diversification of loan originations across verticals, underpinning a 12% annualized loan growth rate and a net interest margin of 3.13%. Management emphasized the value of a single-point-of-contact, relationship-driven model and highlighted ongoing investments in risk, technology, and talent as differentiators in a competitive regional banking landscape.
Key Performance Indicators
Revenue
Decreasing
341.74M
QoQ: 9.01% | YoY: -2.07%
Operating Income
Decreasing
63.21M
QoQ: 76.26% | YoY: -3.32%
Net Income
Decreasing
12.91M
QoQ: -52.03% | YoY: -74.03%
EPS
Decreasing
0.30
QoQ: -59.46% | YoY: -79.45%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of key quarterly metrics and trend observations:
- Revenue: 341.738 million (YoY -2.07%, QoQ +9.01%)
- Net income: 12.912 million (YoY -74.03%, QoQ -52.03%); diluted EPS 0.29; basic EPS 0.30
- Net interest income (NII): 167.4 million; net interest margin (NIM): 3.13% (up 2 bps sequentially)
- Operating expenses: 103.0 million; core efficiency ratio 52.7%; noninterest expense to average assets 1.87%
- EBITDA: 63.21 million; EBITDA margin 18.50%
- Balance sheet: Total assets 22.423 billion; cash and cash equivalents 3.429 billion; net debt (negative) -2.013 billion
- Liquidity and capital: CET1 11.7%; TCE 7.7%; liquidity coverage (immediate) to uninsured deposits 55%; NPA 26 bps; reserves to NPLs 324%
- Cash flow: Operating cash flow 94.121 million; free cash flow 77.037 million; cash at end of period 3.429 billion; net change in cash -357.241 million
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
341.74M
-2.07%
9.01%
Operating Income
63.21M
-3.32%
76.26%
Net Income
12.91M
-74.03%
-52.03%
EPS
0.30
-79.45%
-59.46%
Key Financial Ratios
Gross Profit Margin
Fair
38.50%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
4.16%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
4.52%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
0.06%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.69%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.23
Current ratio below safe levels, potential liquidity risk