5 Revealing Analyst Questions From Customers Bancorp's Q3 Earnings Call

Customers Bancorp delivered a third quarter marked by significant balance sheet expansion, outpacing market expectations for both revenue and non-GAAP profitability. Management attributed the strong results to deposit-led growth, particularly through the onboarding of new commercial banking teams and substantial contributions from the proprietary cubiX payments platform. CEO Sam Sidhu emphasized the bank’s ability to recruit top industry talent and cited a 19-basis-point net interest margin expansion as a core driver. The quarter also saw a successful equity offering that bolstered capital levels, and management highlighted continued improvements in efficiency and asset quality.

Is now the time to buy CUBI? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Customers Bancorp’s Q3 Earnings Call

• Janet Lee (TD Cowen) asked about the pace and sustainability of deposit growth from new banking teams. CEO Sam Sidhu explained that the current trajectory should continue, with added lift as 2025 teams reach maturity and cubiX balances increase.

• Stephen Moss (Raymond James) inquired about potential fee income growth from the cubiX platform amid changing interest rates. Sidhu stated that deposit growth remains the primary focus, but product expansion could drive incremental fees over time.

• Peter Winter (D.A. Davidson) questioned the sustainability of expense reductions, especially FDIC assessments and professional fees. CFO Mark McCollom clarified that some reductions were retroactive and cautioned that FDIC expenses may rise slightly next quarter, but ongoing risk management investments should yield long-term benefits.

• Kelly Motta (KBW) asked about asset quality in light of rapid growth and non-deposit financial institution (NDFI) lending. McCollom highlighted the low historical loss rates and diversification within the NDFI portfolio, emphasizing long-term relationships and conservative underwriting.

• Matthew Breese (Stephens) pressed for clarity on the bank’s risk limits for cubiX exposure, especially as these deposits approach 20% of the base. Sidhu reiterated that risk controls are in place, with large institutional clients maintaining stable minimum balances and the platform’s growth being broadly distributed.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will closely monitor (1) the continued growth and stability of noninterest-bearing deposits—particularly from cubiX and new banking teams; (2) the ramp-up and productivity impact of Agentic AI systems and technology investments; and (3) the sustainability of efficiency improvements as the company invests in risk management and client experience. Developments in stablecoin adoption and regulatory clarity could also influence deposit mix and fee income.

Customers Bancorp currently trades at $67.48, up from $65.55 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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