Highlights

  • Customers Bancorp: 66.64% one-year basic EPS growth, P/E of 10.23, PEG of 0.99.
  • Third quarter net income to common shareholders was $78.4 million, or $2.25 per diluted share.
  • Deposits were $22.6 billion and loans were $18.5 billion at September 30, 2026.
  • Customers repurchased 492,178 shares in the quarter; its Common Equity Tier 1 ratio was 12.6%.

Customers Bancorp (NYSE:CUBI) shares were trading at USD 85.29 on October 28, 2026, down 1.43%, alongside one-year basic EPS growth of 66.64%, a trailing twelve-month P/E of 10.23 and an expected-basis PEG of 0.99, the three figures behind its place among undervalued growth stocks. On the company's side, the bank holding company repurchased 492,178 shares of common stock during the third quarter, reported third quarter 2026 net income available to common shareholders of $78.4 million on October 22, and updated its full-year 2026 guidance.

Based in West Reading, Pennsylvania, and incorporated in Pennsylvania, Customers Bancorp is the holding company for Customers Bank, a member of the Federal Reserve System with deposits insured by the FDIC. The company reports over $27 billion in assets. The bank offers commercial and industrial, commercial real estate, and residential and personal lending, along with national corporate banking in fund finance, venture banking, healthcare, mortgage finance and equipment finance, and operates the cubiX payments platform.

Growth: Third Quarter Earnings, Net Interest Income and Balance Sheet

Net income available to common shareholders was $78,383 thousand in the third quarter against $73,726 thousand a year earlier and $71,560 thousand in the second quarter. Basic earnings per common share were $2.33 against $2.28, and diluted earnings per common share were $2.25 against $2.20. For the nine months, net income available to common shareholders was $219,596 thousand against $139,095 thousand, with basic earnings per share of $6.49 against $4.37 and diluted earnings per share of $6.28 against $4.24.

Net interest income was $208 million, up $15 million from the second quarter and $6 million from the third quarter of 2025. Net interest margin, tax equivalent, was 3.19% against 3.46%. The efficiency ratio was 47.2% against 50.6% in the second quarter and 45.4% a year earlier.

Total deposits were $22.6 billion, up $2.2 billion, or 10.6%, from a year earlier. Total loans were $18.5 billion, up $2.2 billion, or 13.5%. Non-interest bearing deposits were $7.2 billion, or 31.9% of total deposits.

Valuation: P/E of 10.23, PEG of 0.99 and Returns on Equity

The P/E ratio of 10.23 is measured on trailing twelve-month earnings, and the PEG ratio of 0.99 on expected growth. Return on average assets was 1.16% and return on average common equity was 14.0%. Book value per common share was $65.77 against $65.31 at June 30, 2026 and $59.83 at September 30, 2025, and tangible book value per common share, a non-GAAP measure, was $65.66.

On the October 23 call, Chief Financial Officer Mark McCollom said the third quarter return on equity of 14% was within the top quintile of banks with $10 billion to $100 billion in assets.

Capital and Balance Sheet: Repurchases, Capital Ratios and Funding

Customers repurchased 492,178 shares of common stock in the third quarter for $38 million. Common equity was $2.2 billion, down $13 million from the second quarter, which the company attributed to an increase in accumulated other comprehensive income of $60 million (net of taxes), mostly from unrealized losses on available-for-sale debt securities, and the repurchases, offset in part by earnings of $78 million.

The estimated Common Equity Tier 1 capital ratio was 12.6%, the total risk based capital ratio was 14.5% and tangible common equity to tangible assets was 8.0%. Total borrowings were $2.4 billion. Estimated uninsured deposits were $7.6 billion, or 34% of total deposits, with immediately available liquidity covering approximately 151% of them.

Disclosed Risks and Outlook: Credit Costs, Expenses and 2026 Guidance

The provision for credit losses was $25 million against $23 million in the second quarter, and net charge-offs were $13 million. Non-performing loans were 0.29% of total loans and leases, against 0.31% at June 30 and 0.17% a year earlier, and totaled $53 million, of which approximately $12 million was the government-guaranteed portion. Non-interest income was $31 million, down $3 million from the second quarter.

Management said the third quarter net interest margin was affected by higher cash balances, that its September run rate was approximately 3.25%, and that it expects a step up in fourth quarter expenses from incentive compensation and investment in technology and deposit growth.

The company updated its full-year 2026 guidance: loan growth of 12%+, deposit growth of 9%+, net interest income of $805 million to $810 million, non-interest expense of $460 million to $465 million and a tax rate of 22% to 23%. Management said it raised its loan growth guidance and tightened its net interest income range.