Customers Bancorp Reports Results for Third Quarter 2026

WEST READING, Pa.--(BUSINESS WIRE)--$cubi #banking--Customers Bancorp, Inc. (NYSE:CUBI):

Third Quarter 2026 Highlights

• Q3 2026 net income available to common shareholders was $78.4 million, or $2.25 per diluted share; ROAA was 1.16% and ROCE was 14.0%.
• Total deposits increased $831 million, or 3.8% in Q3 2026 from Q2 2026, and $2.2 billion, or 10.6% from Q3 2025 to a period end record level of $22.6 billion.
• Total loans increased $496 million, or 2.8% in Q3 2026 from Q2 2026, and $2.2 billion, or 13.5% from Q3 2025 to a period end record level of $18.5 billion.
• Non-interest bearing deposits increased $295 million in Q3 2026 compared to Q2 2026 to a period end record level of $7.2 billion, or 31.9% of total deposits.
• Net interest income increased $15 million, or 7.6% in Q3 2026 compared to Q2 2026 to $208 million.
• Q3 2026 efficiency ratio was 47.2% compared to Q2 2026 efficiency ratio of 50.6%, a decline of approximately 340 basis points.

CEO Commentary

“I am pleased to share our third quarter 2026 results that show the company’s continued execution of its strategic priorities and underscore our success in growing franchise value.” said Customers Bancorp CEO Sam Sidhu.

“Artificial intelligence (“AI”) and automation continued to drive measurable transformative progress across the organization in the third quarter. On our company-wide priorities, we continued to scale our AI-powered loan process, adding additional functionality and increasing utilization. We also successfully completed a pilot of our new deposit onboarding process, opening commercial deposit accounts in minutes rather than days. The recently announced partnership with Palantir is expected to help drive this initiative toward a goal of a best-in-class customer experience and the ability to onboard new customers at scale without losing personal touch. From a team member led perspective, we’re seeing incredible engagement from across the company. Our team doubled the number of agents¹ deployed in the quarter and cumulative estimated hours saved reached 76,000², a nearly 65% increase. Through our efforts, we estimate we have unlocked over $15 million of annualized capacity³. Our goal of decoupling revenue growth from expense growth is well underway as our revenue per employee and pre-tax profit per employee are up 13% and 34%, respectively, annualized as of September 30, 2026.

Our cubiX payments platform also continued to scale, with cumulative network transaction volume surpassing $5.6 trillion inception to date. We saw continued diversification with mortgage finance and real estate verticals now representing more than 30% of our cubiX balances at September 30, 2026.

We continued to strategically and organically grow our loan and deposit portfolios with momentum throughout the organization. We hired 50 revenue producers year-to-date while our total headcount trended lower. Total loans and leases grew by 2.8% in Q3 2026 compared to Q2 2026, with contributions from multiple verticals allowing us to deliver above industry average growth rates without sacrificing on structure or credit quality.

Total deposits increased by 3.8% in Q3 2026 compared to Q2 2026, and we delivered about $295 million of non-interest bearing deposit growth in Q3 2026. Our new commercial banking teams hired since Q2 2023 added approximately $415 million in deposits with 28% of the growth from non-interest bearing deposits in the third quarter. The growth continued to be granular as we had an increase of approximately 618 commercial accounts on a net basis, or a 2% increase in a single quarter, and the 2025 teams alone added 317 accounts on a net basis in the quarter.

Asset quality remains strong with our NPA ratio at just 0.29% of total assets and reserve levels are robust at 322% of total non-performing loans at the end of Q3 2026. Our capital levels remained strong with a TCE / TA ratio* of 8.0% and Common Equity Tier 1 Ratio⁴ of 12.6% at September 30, 2026, while our balance sheet grew by 3.4% and we repurchased 492,178 shares of common stock in the quarter.

In the nine months ended September 30, 2026, we once again delivered exceptionally strong growth across key metrics of revenue, core earnings*, and book value per share of 19%, 21%*, and 10%, respectively, when compared to the same period in 2025” Sam Sidhu concluded.

Key Balance Sheet Trends

Loans and Leases Held for Investment

Loans and leases held for investment were a period end record $18.4 billion at September 30, 2026, up $445 million, or 2.5%, from June 30, 2026. C&I loans and leases increased by $592 million, or 6.8% quarter-over-quarter to $9.3 billion. Non-owner occupied commercial real estate loans increased by $179 million, or 9.5%, to $2.1 billion. Multifamily loans increased by $44 million, or 1.7%, to $2.7 billion. These increases were partially offset by decreases in mortgage finance loans of $259 million, or 15.0% to $1.5 billion, construction loans of $58 million, or 26.7% to $159 million and owner-occupied commercial real estate loans of $49 million, or 3.9% to $1.2 billion.

Within C&I, corporate banking loans and leases increased by $690 million, or 9.7% quarter-over-quarter to $7.8 billion. Geographic and other C&I loans decreased by $98 million, or 5.9% quarter-over-quarter to $1.6 billion.

Loans and leases held for investment of $18.4 billion at September 30, 2026 were up $2.1 billion, or 13.1%, year-over-year. C&I loans and leases increased by $1.2 billion, or 14.8%, year-over-year. Non-owner occupied commercial real estate loans increased by $484 million, or 30.6%. Multifamily loans increased by $312 million, or 13.2%. Owner-occupied commercial real estate loans increased by $162 million, or 15.3%. Consumer installment loans increased by $43 million, or 4.8%. Construction loans increased by $36 million, or 28.9%. Mortgage finance loans decreased by $106 million, or 6.7%.

Within C&I, corporate banking loans and leases increased by $1.2 billion, or 18.4% year-over-year. Geographic and other C&I loans decreased by $4 million, or 0.2%.

Investment Securities

At September 30, 2026, total investment securities were $4.2 billion, an increase of $915 million compared to June 30, 2026 and an increase of $1.4 billion compared to a year ago, driven primarily from purchases of agency MBS and CMO.

At September 30, 2026, the Available-For-Sale (“AFS”) debt securities portfolio had a spot yield of 5.08%, an effective duration of approximately 2.8 years, and approximately 42% are variable rate. Additionally, approximately 84% of the AFS securities portfolio was AAA rated at September 30, 2026.

At September 30, 2026, the Held-To-Maturity (“HTM”) debt securities portfolio represented only 2.2% of total assets, had a spot yield of 3.17% and an effective duration of approximately 4.5 years. Additionally, at September 30, 2026, approximately 75% of the HTM securities were AAA rated and $0.2 billion were credit enhanced asset backed securities with no current expectation of credit losses.

Deposits

Total deposits increased $831 million, or 3.8% to a period end record $22.6 billion at September 30, 2026 as compared to the prior quarter. The total average cost of deposits remained constant at 2.50% in Q3 2026 and Q2 2026. Total estimated uninsured deposits were $7.6 billion¹, or 34% of total deposits at September 30, 2026 with immediately available liquidity covering approximately 151% of these deposits.

Total deposits increased $2.2 billion, or 10.6% to $22.6 billion at September 30, 2026 as compared to a year ago. The total average cost of deposits decreased by 27 basis points to 2.50% in Q3 2026 from 2.77% in Q3 2025.

Borrowings

Total borrowings increased $78 million, or 3.4% to $2.4 billion at September 30, 2026 as compared to the prior quarter. This increase primarily resulted from net draws of $80 million in FHLB advances. Total borrowings increased $931 million, or 63.0%, to $2.4 billion at September 30, 2026 as compared to a year ago primarily due to net draws of $950 million in FHLB advances.

Capital

Customers Bancorp’s common equity decreased $13 million to $2.2 billion, and tangible common equity* decreased $13 million to $2.2 billion, at September 30, 2026 compared to the prior quarter, respectively, primarily from an increase in AOCI of $60 million (net of taxes), mostly from increased unrealized losses on AFS debt securities and $38 million of common share repurchases, offset in part by earnings of $78 million. Customers Bancorp’s common equity increased $149 million to $2.2 billion, and tangible common equity* increased $149 million to $2.2 billion, at September 30, 2026 compared to a year ago, respectively, primarily from earnings of $294 million, offset in part by $88 million of common share repurchases and an increase in AOCI of $67 million (net of taxes), mostly from increased unrealized losses on AFS debt securities. Book value per common share increased to $65.77 from $65.31 and $59.83, and tangible book value per common share* increased to $65.66 from $65.20 and $59.72, at September 30, 2026 from June 30, 2026 and September 30, 2025, respectively.

Credit Quality

The provision for credit losses in Q3 2026 was $25 million, compared to $23 million in Q2 2026 and $27 million in Q3 2025.

Net charge-offs were $13 million in Q3 2026, compared to $15 million in Q2 2026 and Q3 2025.

The allowance for credit losses on loans and leases was $172 million at September 30, 2026, compared to $164 million at June 30, 2026 and $152 million at September 30, 2025.

Non-performing loans at September 30, 2026 decreased to 0.29% of total loans and leases, compared to 0.31% at June 30, 2026 and increased, compared to 0.17% at September 30, 2025. Nonperforming loans include the guaranteed portion of SBA loans. As of September 30, 2026, nonperforming loans totaled $53 million, of which approximately $12 million represents the government-guaranteed portion. Excluding the government-guaranteed portion, nonperforming loans totaled approximately $42 million, representing 0.23% of total loans and leases.

Key Profitability Trends

Net Interest Income

Net interest income totaled $208 million in Q3 2026, an increase of $15 million from Q2 2026. This increase was driven by an increase in interest income mainly from investment securities and corporate banking loans and leases.

“Net interest income increased $15 million quarter-over-quarter in the third quarter of 2026. Net interest margin expanded to 3.19% and was impacted by a higher level of cash balances resulting from a timing difference between when we brought in deposits and when we funded loan growth. Our estimated run rate for net interest margin in September was approximately 3.25% which gives us confidence for additional expansion in Q4 2026. This trajectory is driven by expected continued low-cost deposit gathering and margin accretive loan growth,” stated Customers Bancorp CFO Mark McCollom.

Net interest income totaled $208 million in Q3 2026, an increase of $6 million from Q3 2025. This increase was primarily due to higher interest income mainly from corporate banking loans and leases, multifamily loans, non-owner occupied commercial real estate loans and investment securities, partially offset by a decrease in interest earning deposits and lower discount accretion within geographic and other C&I loans.

Non-Interest Income

Reported non-interest income totaled $31 million for Q3 2026, a decrease of $3 million compared to $34 million for Q2 2026. The decrease was primarily due to a decrease of $2 million in loan fees mainly from lower gains on stock warrants.

Non-interest income totaled $31 million for Q3 2026, an increase of $1 million compared to Q3 2025. The increase was primarily due to increases in commercial lease income of $4 million, $1 million in other non-interest income primarily from higher income from derivatives and gain on sale of loans and leases, mostly SBA loans in Q3 2026, partially offset by a decrease of $5 million in loan fees primarily due to lower gains on stock warrants.

Non-Interest Expense

Non-interest expenses totaled $113 million in Q3 2026, a decrease of $1 million compared to Q2 2026. The decrease was primarily attributable to decreases of $2 million in professional fees and $3 million in other non-interest expenses mainly due to a benefit to provision for credit losses on unfunded lending commitments and decreases in non-capitalizable loan origination expenses and provision for operating losses partially offset by higher deposit costs. These decreases were partially offset by an increase of $2 million in technology, communication and bank operations mainly for software.

Non-interest expenses totaled $113 million in Q3 2026, an increase of $8 million compared to Q3 2025. The increase was primarily attributable to increases of $8 million in salaries and employee benefits and $4 million in commercial lease depreciation associated with the Bank’s continued growth, $5 million in technology, communication and bank operations mainly for software and processing fees, and $2 million in other non-interest expenses mainly due to higher deposit costs and business development expenses, partially offset by a benefit to provision for credit losses on unfunded lending commitments. These increases were partially offset by decreases of $5 million in professional fees and $4 million in FDIC assessments, non-income taxes and regulatory fees.

Taxes

Income tax expense was $22 million for Q3 2026, compared with $18 million in Q2 2026 and $25 million in Q3 2025. The increase from Q2 2026 reflects higher pretax income and smaller benefit from discrete items. The decrease from Q3 2025 is driven by favorable discrete items, primarily from excess tax benefits on vested stock awards, and the net discount realized on the purchase of energy tax credits. The effective tax rate was 22.1% for Q3 2026, compared with 20.0% for Q2 2026 and 24.5% for Q3 2025.

Outlook

“We continued to perform well in the third quarter of 2026 and remain focused on executing in those areas which differentiate us from our peers. We believe that truly exceptional service, sophisticated product offerings, recruitment of top talent, exceptional payment capabilities, and a single point of contact service model will deliver sustainable long-term growth.

Given our strong performance year-to-date, we are updating our full-year 2026 guidance across the following metrics:

• Loans: 12%+
• Deposits: 9%+
• Net Interest Income: $805 million - $810 million
• Non-interest Expense: $460 million - $465 million
• Tax Rate: 22% to 23%

We expect to continue to execute across the company’s four top priorities for 2026. First, on AI and automation, we expect to see meaningful progress on our “top down” priorities and further benefits from “bottoms up” use cases as they drive increased revenue and improved productivity. We expect this to show up in our financial results through continued increases in our revenue, assets, and pre-tax profit per employee. Second, we expect our payments capabilities to continue to expand, driven by the new industries and use cases we are serving and by strengthening relationships with existing clients through expanded product offerings. Third, we are confident in our ability to continue to deliver above industry average loan and deposit portfolio growth and build upon our successful team recruitment strategy. And fourth, we will seek to accomplish these initiatives while operating with a high standard of regulatory and risk management excellence and maintaining a strong capital base, liquidity, and credit quality.

We believe we are incredibly well positioned to continue to achieve these goals and deliver excellent client service and strong financial performance to close out 2026 and beyond,” concluded Sam Sidhu.

Webcast

The live audio webcast, presentation slides, and earnings press release will be made available at https://www.customersbank.com and at the Customers Bancorp 3rd Quarter Earnings Webcast.

You may submit questions in advance of the live webcast by emailing our Chief Marketing Officer, Laura Vele at lvele@customersbank.com.

The webcast will be archived for viewing on the Customers Bank Investor Relations page and available beginning approximately two hours after the conclusion of the live event.

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $27 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I, commercial real estate, and residential and personal lending, Customers Bank also provides a number of national corporate banking services to clients in businesses including: fund finance, venture banking, healthcare, mortgage finance, and equipment finance. Major accolades include:

• Named a Top 10 Performing Bank by American Banker for five consecutive years (2021-2025), including the #1 spot in 2024 among midsize banks ($10B to $50B in assets)
• No. 45 out of the 100 largest publicly traded banks in 2026 Forbes Best Banks list
• Net Promoter Score of 81 compared to industry average of 41

A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Customers Bancorp, Inc.’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “project,” “confident,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Customers Bancorp, Inc.’s control). Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause Customers Bancorp, Inc.’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements, including: a continuation of the recent turmoil in the banking industry, responsive measures taken by us and regulatory authorities to mitigate and manage related risks, regulatory actions taken that address related issues and the costs and obligations associated therewith, such as the FDIC special assessments; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to our reputation; technological changes, including acceptance and success of our proprietary B2B instant payments platform, cubiX, which is subject to variety of factors that are difficult to evaluate; effects of competition on deposit rates and growth, loan rates and growth and net interest margin; failure to identify and adequately and promptly address cybersecurity risks, including data breaches and cyberattacks, which may be exacerbated by our continued development and implementation of generative artificial intelligence, including risks arising from reliance on third-party AI tools, model limitations, data integrity issues or regulatory uncertainty, and the cost of defending against them and any reputational or other financial risks following such a cybersecurity incident; public health crises and pandemics and their effects on the economic and business environments in which we operate; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism and military conflicts, including the war between Russia and Ukraine and ongoing conflict in the Middle East, which could impact economic conditions in the United States; the impact that changes in the economy have on the performance of our loan and lease portfolio, the market value of our investment securities, the demand for our products and services and the availability of sources of funding; the effects of actions by the federal government, including the Board of Governors of the Federal Reserve System and other government agencies, that affect market interest rates and the money supply; actions that we and our customers take in response to these developments and the effects such actions have on our operations, products, services and customer relationships; higher inflation and its impacts; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; and the effects of any changes in accounting standards or policies. Customers Bancorp, Inc. cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made.

Laura Vele, Chief Marketing Officer 646-315-2017