Key Highlights

  • Net income to common was USD 78.4 million, or USD 2.25 per share.
  • Deposits rose 3.8% in the quarter to a record USD 22.6 billion.
  • Net interest income rose 7.6% to USD 208 million.
  • The efficiency ratio fell about 340 basis points to 47.2%.

Earnings and Efficiency

Customers Bancorp (NYSE:CUBI) reported third-quarter 2026 results on Thursday. Net Income available to common shareholders was USD 78.4 million, or USD 2.25 per diluted share. Return on average Assets was 1.16% and return on common Equity was 14.0%. The efficiency ratio was 47.2% against 50.6% in the second quarter.

Net interest income rose USD 15 million, or 7.6%, to USD 208 million. For the nine months, Chief Executive Officer Sam Sidhu said Revenue grew 19%, core Earnings grew 21% and Book Value per share grew 10% from the same period of 2025.

Deposits, Loans and Funding

Total deposits rose USD 831 million, or 3.8%, from the second quarter and USD 2.2 billion, or 10.6%, from a year earlier, to a record USD 22.6 billion. Noninterest-bearing deposits rose USD 295 million to a record USD 7.2 billion, or 31.9% of deposits. The average cost of deposits was 2.50%, unchanged from the second quarter and down from 2.77% a year earlier.

Commercial banking teams hired since the second quarter of 2023 added about USD 415 million of deposits in the quarter, 28% of it noninterest bearing, and a net 618 commercial accounts were added. Estimated uninsured deposits were USD 7.6 billion, or 34% of deposits, with Liquidity covering about 151%. Borrowings rose USD 78 million to USD 2.4 billion, after net FHLB draws of USD 80 million.

Total loans rose USD 496 million, or 2.8%, and USD 2.2 billion, or 13.5%, from a year earlier, to a record USD 18.5 billion. Loans held for Investment were USD 18.4 billion, up USD 445 million. Commercial and industrial loans rose USD 592 million, or 6.8%, to USD 9.3 billion, and non-owner occupied Commercial Real Estate rose USD 179 million to USD 2.1 billion. Mortgage finance loans fell USD 259 million, or 15.0%, to USD 1.5 billion.

Investment securities were USD 4.2 billion, up USD 915 million from June on purchases of agency mortgage-backed securities. The available-for-sale portfolio had a spot Yield of 5.08% and a duration of about 2.8 years.

Technology and Platforms

Sidhu said the number of AI agents deployed doubled in the quarter and cumulative estimated hours saved reached 76,000, a nearly 65% increase, equal to over USD 15 million of annualized capacity by the company's estimate. The company completed a pilot of a deposit onboarding process that opens commercial accounts in minutes and announced a Partnership with Palantir for that initiative. Network transaction Volume on the cubiX payments platform passed USD 5.6 trillion since inception, and mortgage finance and real estate verticals were more than 30% of cubiX balances. The company hired 50 revenue producers year to date while headcount trended lower.

Credit and Capital

The provision for Credit losses was USD 25 million against USD 23 million in the second quarter. Net charge-offs were USD 13 million against USD 15 million. The allowance was USD 172 million, and reserves were 322% of non-performing loans. Non-Performing Assets were 0.29% of total assets.

Common equity fell USD 13 million to USD 2.2 billion, as earnings of USD 78 million were offset by USD 38 million of repurchases and a USD 60 million rise in accumulated other comprehensive losses. The company repurchased 492,178 shares. Tangible common equity to tangible assets was 8.0% and the common equity tier 1 ratio was an estimated 12.6%. Book value per share was USD 65.77.

Figures to Follow

Loans grew 2.8% and deposits 3.8% in the quarter, so deposits outgrew loans. Reference points include the share of noninterest-bearing deposits at 31.9%, FHLB borrowings of USD 2.4 billion, the efficiency ratio at 47.2%, and the allowance of USD 172 million against a provision of USD 25 million.