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Customers Bancorp

NYSE:CUBI
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CUBI
NYSE
$621M
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to small and middle market businesses, not-for-profits, and consumers. The last earnings update was 47 days ago. More info.


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CUBI Share Price and Events
7 Day Returns
-2%
NYSE:CUBI
0.1%
US Banks
2%
US Market
1 Year Returns
-33.6%
NYSE:CUBI
-7%
US Banks
4.3%
US Market
CUBI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Customers Bancorp (CUBI) -2% -3.1% 9.2% -33.6% -17.4% -2.3%
US Banks 0.1% 0.7% 5.8% -7% 51.5% 40.9%
US Market 2% 4.1% 4.2% 4.3% 43.9% 40.8%
1 Year Return vs Industry and Market
  • CUBI underperformed the Banks industry which returned -7% over the past year.
  • CUBI underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
CUBI
Industry
5yr Volatility vs Market

Value

 Is Customers Bancorp undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Customers Bancorp to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Customers Bancorp.

NYSE:CUBI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $27.75 * 9.1%
$2.53
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $27.75
Discount Rate (Cost of Equity) See below 12.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CUBI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.592 (1 + (1- 21%) (272.95%))
1.581
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.58
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.581 * 5.96%)
12.15%

Discounted Cash Flow Calculation for NYSE:CUBI using Excess Returns Model Model

The calculations below outline how an intrinsic value for Customers Bancorp is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:CUBI Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.1% – 12.15%) * $27.75)
$-0.84
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.84 / (12.15% - 2.73%)
$-8.90
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $27.75 + $-8.90
$18.85
NYSE:CUBI Discount to Share Price
Calculation Result
Value per share (USD) From above. $18.85
Current discount Discount to share price of $19.93
= -1 x ($19.93 - $18.85) / $18.85
-5.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Customers Bancorp is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Customers Bancorp's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Customers Bancorp's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CUBI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.54
NYSE:CUBI Share Price ** NYSE (2019-06-24) in USD $19.93
United States of America Banks Industry PE Ratio Median Figure of 600 Publicly-Listed Banks Companies 12.7x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Customers Bancorp.

NYSE:CUBI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CUBI Share Price ÷ EPS (both in USD)

= 19.93 ÷ 1.54

12.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Customers Bancorp is overvalued based on earnings compared to the US Banks industry average.
  • Customers Bancorp is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Customers Bancorp's expected growth come at a high price?
Raw Data
NYSE:CUBI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
17.1%per year
United States of America Banks Industry PEG Ratio Median Figure of 272 Publicly-Listed Banks Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:CUBI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.93x ÷ 17.1%

0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Customers Bancorp is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Customers Bancorp's assets?
Raw Data
NYSE:CUBI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $24.44
NYSE:CUBI Share Price * NYSE (2019-06-24) in USD $19.93
United States of America Banks Industry PB Ratio Median Figure of 603 Publicly-Listed Banks Companies 1.19x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.8x
NYSE:CUBI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CUBI Share Price ÷ Book Value per Share (both in USD)

= 19.93 ÷ 24.44

0.82x

* Primary Listing of Customers Bancorp.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Customers Bancorp is good value based on assets compared to the US Banks industry average.
X
Value checks
We assess Customers Bancorp's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Customers Bancorp has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Customers Bancorp expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Customers Bancorp expected to grow at an attractive rate?
  • Customers Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Customers Bancorp's earnings growth is expected to exceed the United States of America market average.
  • Customers Bancorp's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CUBI Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CUBI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 17.1%
NYSE:CUBI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -0.3%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CUBI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CUBI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 276 82 1
2020-12-31 272 82 4
2019-12-31 259 69 4
NYSE:CUBI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 302 58 49
2018-12-31 311 97 57
2018-09-30 318 283 61
2018-06-30 339 115 63
2018-03-31 341 76 63
2017-12-31 339 62 64
2017-09-30 331 635 63
2017-06-30 340 615 77
2017-03-31 324 289 73
2016-12-31 303 91 69
2016-09-30 280 -585 74
2016-06-30 242 -285 70

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Customers Bancorp's earnings are expected to grow by 17.1% yearly, however this is not considered high growth (20% yearly).
  • Customers Bancorp's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CUBI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Customers Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CUBI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.48 2.48 2.48 1.00
2020-12-31 2.64 3.00 2.20 5.00
2019-12-31 2.18 2.25 2.07 5.00
NYSE:CUBI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.54
2018-12-31 1.81
2018-09-30 1.94
2018-06-30 2.01
2018-03-31 2.03
2017-12-31 2.10
2017-09-30 2.07
2017-06-30 2.63
2017-03-31 2.58
2016-12-31 2.51
2016-09-30 2.74
2016-06-30 2.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Customers Bancorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Customers Bancorp's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Customers Bancorp has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Customers Bancorp performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Customers Bancorp's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Customers Bancorp's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Customers Bancorp's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Customers Bancorp's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.
Earnings and Revenue History
Customers Bancorp's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Customers Bancorp Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CUBI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 301.66 48.53 189.34
2018-12-31 311.23 57.24 186.28
2018-09-30 318.43 60.99 184.84
2018-06-30 338.96 62.71 189.12
2018-03-31 341.19 62.77 185.94
2017-12-31 339.49 64.38 182.61
2017-09-30 331.35 62.59 174.61
2017-06-30 339.64 77.11 166.09
2017-03-31 324.03 73.30 154.24
2016-12-31 302.83 69.19 136.14
2016-09-30 280.33 74.25 112.96
2016-06-30 242.36 69.90 94.18
2016-03-31 215.12 64.65 86.91
2015-12-31 203.44 56.09 90.56
2015-09-30 195.06 52.49 85.71
2015-06-30 181.33 49.84 81.56
2015-03-31 178.67 49.03 76.97
2014-12-31 162.30 44.53 71.01
2014-09-30 150.09 39.05 69.93
2014-06-30 140.92 35.65 65.53
2014-03-31 129.52 33.64 60.75
2013-12-31 124.32 32.69 55.47
2013-09-30 112.73 31.25 49.11
2013-06-30 102.54 29.62 44.57
2013-03-31 98.94 27.90 40.44
2012-12-31 86.74 23.82 38.15
2012-09-30 77.67 19.44 35.40
2012-06-30 68.68 15.14 32.63

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Customers Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Customers Bancorp used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Customers Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Customers Bancorp's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Customers Bancorp has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Customers Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Customers Bancorp's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Customers Bancorp Company Filings, last reported 2 months ago.

NYSE:CUBI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 978.37 1,670.63 132.33
2018-12-31 956.82 1,684.20 18.43
2018-09-30 954.81 1,083.42 688.65
2018-06-30 936.23 2,804.31 267.97
2018-03-31 919.09 2,755.93 229.02
2017-12-31 920.96 2,072.31 156.08
2017-09-30 910.64 1,916.55 229.93
2017-06-30 910.29 2,457.58 412.44
2017-03-31 879.82 1,631.02 168.21
2016-12-31 855.87 1,161.88 126.27
2016-09-30 789.82 1,309.88 166.18
2016-06-30 680.56 2,191.05 239.69
2016-03-31 599.25 1,931.99 277.96
2015-12-31 553.90 1,904.37 200.69
2015-09-30 537.98 1,251.10 394.34
2015-06-30 523.50 1,596.48 398.36
2015-03-31 457.95 1,756.19 342.63
2014-12-31 443.15 1,825.97 317.38
2014-09-30 425.80 1,800.88 337.03
2014-06-30 413.74 1,508.94 271.63
2014-03-31 400.94 974.60 295.63
2013-12-31 386.62 788.29 186.73
2013-09-30 388.89 239.12 94.36
2013-06-30 379.77 628.87 15.00
2013-03-31 276.91 632.39 8.04
2012-12-31 269.48 478.00 159.82
2012-09-30 261.50 38.00 157.51
2012-06-30 158.72 185.00 122.05
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Customers Bancorp has an acceptable proportion of non-loan assets held.
  • Customers Bancorp's liabilities are made up of primarily low risk sources of funding.
  • Loans at Customers Bancorp are broadly funded by customer deposits.
  • Customers Bancorp's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Customers Bancorp has a sufficient allowance for bad loans.
  • Customers Bancorp has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Customers Bancorp's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Customers Bancorp has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Customers Bancorp's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Customers Bancorp dividends.
If you bought $2,000 of Customers Bancorp shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Customers Bancorp's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Customers Bancorp's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CUBI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 479 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CUBI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Customers Bancorp has not reported any payouts.
  • Unable to verify if Customers Bancorp's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Customers Bancorp's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Customers Bancorp has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Customers Bancorp's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Customers Bancorp afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Customers Bancorp has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Customers Bancorp's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jay Sidhu
COMPENSATION $1,829,086
AGE 66
TENURE AS CEO 9.2 years
CEO Bio

Mr. Jay S. Sidhu is Chairman and CEO of Customers Bancorp, Customers Bank (the “Bank”), BankMobile and BankMobile Technologies. Since August 2018, Mr. Sidhu has also served as the Executive Chairman of Megalith Financial Acquisition Corporation. When Mr. Sidhu joined the bank in 2009, previously known as New Century Bank. In May 2010, Mr. Sidhu led an investment in the publicly traded bank holding company Atlantic Coast Financial Corporation (“Atlantic”), headquartered in Jacksonville, Florida, which wholly owns Atlantic Coast Bank. Mr. Sidhu was appointed to the Board of Directors (still serving), and also served as the Chairman of the Board until April 2012. During the second half of 2013, he led an effort by Atlantic to raise capital through a public offering in December 2013. From 2006 to 2009, Mr. Sidhu served as the Chairman and CEO of Sidhu Advisors, LLC. Prior to that, he was the Chairman and CEO of Sovereign Bancorp, Inc. and Sovereign Bank, until his retirement on Dec. 31, 2006. During his 20-year career at Sovereign, he grew the organization to the 17th largest banking institution in the U.S. at the end of 2006. Mr. Sidhu has received several accolades for his contributions to banking and the business community. He was included on Philadelphia Business Journal’s (“PBJ”) Power 100 in 2018, 2017 and 2016. In 2017, he received the CEO of the Year Award from the Asian American Chamber of Commerce of Greater Philadelphia. Mr. Sidhu also received PBJ’s Change Driver Award, was named the Ernst & Young Fintech Entrepreneur of The Year, Financial World’s CEO of the Year, Turnaround Entrepreneur of the Year, and the Large Business Leader of the Year by the Chamber of Commerce. Mr. Sidhu has also been commended for his commitment to philanthropy and his community. He was named Citizen of the Year by the Caron Foundation and received the Hero of Liberty Award from the National Liberty Museum. Mr. Sidhu has served on the boards of numerous businesses and non-for-profits, including as a member of the Board of Grupo Santander (Madrid) and Chairman of the Board of Trustees of Wilkes University. He obtained an MBA from Wilkes University and is a graduate of Harvard Business School’s Leadership Course. As a speaker on leadership and emotional intelligence, Mr. Sidhu has attended conferences in the U.S., Europe and Asia, including Artificial Intelligence Week Middle East in Dubai. At his Alma Mater, he helped establish the Jay Sidhu School of Business and Leadership.

CEO Compensation
  • Jay's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jay's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Customers Bancorp management team in years:

4.9
Average Tenure
59
Average Age
  • The tenure for the Customers Bancorp management team is about average.
Management Team

Jay Sidhu

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
66
TENURE
9.2 yrs

Dick Ehst

TITLE
President & COO
COMPENSATION
$909K
AGE
71
TENURE
9.2 yrs

Carla Leibold

TITLE
Executive VP
COMPENSATION
$496K
AGE
51
TENURE
0.6 yrs

Glenn Hedde

TITLE
Executive VP & President of Customers Bank Warehouse Lending
COMPENSATION
$668K
AGE
57

Steve Issa

TITLE
EVP, Chief Lending Officer & New England President of Commercial/Specialty Lending
COMPENSATION
$624K
AGE
63

Jeffrey Skumin

TITLE
Senior VP
AGE
41
TENURE
0.6 yrs

Jim Collins

TITLE
Chief Administration Officer

Bob Ramsey

TITLE
Director of Investor Relations & Strategic Planning

Tom Jastrem

TITLE
Executive VP & Chief Credit Officer
AGE
59

Bob Philips

TITLE
Senior Vice President
COMPENSATION
$136K
Board of Directors Tenure

Average tenure and age of the Customers Bancorp board of directors in years:

8.4
Average Tenure
66
Average Age
  • The tenure for the Customers Bancorp board of directors is about average.
Board of Directors

Larry Way

TITLE
Director
COMPENSATION
$152K
AGE
69
TENURE
8.4 yrs

Jay Sidhu

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
66
TENURE
9.2 yrs

Steve Zuckerman

TITLE
Director
COMPENSATION
$152K
AGE
54
TENURE
8.4 yrs

Daniel Rothermel

TITLE
Lead Independent Director
COMPENSATION
$187K
AGE
80
TENURE
8.4 yrs

Bhanu Choudhrie

TITLE
Director
COMPENSATION
$118K
AGE
39
TENURE
6.4 yrs

Rick Burkey

TITLE
Director
COMPENSATION
$152K
AGE
72
TENURE
3.2 yrs

Andrea Allon

TITLE
Director
COMPENSATION
$130K
AGE
56
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Mar 19 Sell Steven Issa Individual 05. Mar 19 05. Mar 19 -1,426 $20.48 $-29,199
04. Mar 19 Sell Glenn Hedde Individual 04. Mar 19 04. Mar 19 -1,276 $21.65 $-27,620
27. Feb 19 Sell Glenn Hedde Individual 26. Feb 19 26. Feb 19 -7,802 $21.57 $-168,289
11. Dec 18 Sell Richard Ehst Individual 11. Dec 18 11. Dec 18 -13,370 $18.14 $-242,565
11. Dec 18 Sell Richard Ehst Individual 10. Dec 18 10. Dec 18 -13,370 $18.01 $-240,762
X
Management checks
We assess Customers Bancorp's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Customers Bancorp has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is It Too Late To Buy Customers Bancorp, Inc. (NYSE:CUBI) At Its June Price?

Customers Bancorp's growth potential is very attractive. … But, since Customers Bancorp is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … This means that, when we account for Customers Bancorp's growth, the stock can be viewed as relatively cheap , based on the fundamentals.

Simply Wall St -

Did Customers Bancorp, Inc. (NYSE:CUBI) Insiders Sell Shares?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for Customers Bancorp Customers Bancorp Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Jay Sidhu, sold US$1.5m worth of shares at a price of US$30.28 per share. … In the last year Customers Bancorp insiders didn't buy any company stock. … Insider Ownership of Customers Bancorp I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

Here's What Customers Bancorp, Inc.'s (NYSE:CUBI) P/E Is Telling Us

We'll look at Customers Bancorp, Inc.'s (NYSE:CUBI) P/E ratio and reflect on what it tells us about the company's share price. … View our latest analysis for Customers Bancorp How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Customers Bancorp: P/E of 13.41 = $20.67 ÷ $1.54 (Based on the year to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

At US$23.01, Is Customers Bancorp, Inc. (NYSE:CUBI) Worth Looking At Closely?

As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, could the stock still be trading at a relatively cheap price … Today I will analyse the most recent data on Customers Bancorp’s outlook and valuation to see if the opportunity still exists.

Simply Wall St -

The Customers Bancorp (NYSE:CUBI) Share Price Is Down 25% So Some Shareholders Are Getting Worried

(NYSE:CUBI) shareholders should be happy to see the share price up 22% in the last month. … But in truth the last year hasn't been good for the share price. … Unhappily, Customers Bancorp had to report a 14% decline in EPS over the last year.

Simply Wall St -

Does Customers Bancorp, Inc. (NYSE:CUBI) Have A Particularly Volatile Share Price?

(NYSE:CUBI), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Before we go on, it's worth noting that Warren Buffett pointed out in his 2014 letter to shareholders that 'volatility is far from synonymous with risk.' Having said that, beta can still be rather useful.

Simply Wall St -

How Much Did Customers Bancorp, Inc.'s (NYSE:CUBI) CEO Pocket Last Year?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Jay Sidhu's Compensation Compare With Similar Sized Companies. … is worth US$600m, and total annual CEO compensation is US$8.0m.

Simply Wall St -

Why Customers Bancorp, Inc.’s (NYSE:CUBI) Risk Control Makes It Attractive

Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Customers Bancorp’s bottom line. … Today we will analyse Customers Bancorp’s level of bad debt and liabilities in order to understand the risk involved with investing in the bank. … Check out our latest analysis for Customers Bancorp

Simply Wall St -

Three Understated Metrics For Customers Bancorp, Inc. (NYSE:CUBI) You Should Know

These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Unpredictable macro events such as political instability could weaken its financial position which is why it is important to understand how well the bank manages its risk levels. … Today we will be measuring Customers Bancorp’s financial risk position by looking at three leverage and liquidity metrics.

Simply Wall St -

Is It Too Late To Consider Buying Customers Bancorp Inc (NYSE:CUBI)?

Customers Bancorp Inc (NYSE:CUBI), operating in the financial services industry based in United States,. … A question to answer is whether Customers Bancorp's current trading price of $20.27 reflective of the actual value of the? … Let’s take a look at Customers Bancorp’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Company Info

Description

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to small and middle market businesses, not-for-profits, and consumers. The company operates in two segments, Customers Bank Business Banking and BankMobile. The company accepts various deposit products, such as checking, savings, money market deposit, time deposit, and individual retirement accounts, as well as certificates of deposit. It also provides commercial and industrial lending services; small business administration loans; multi-family and commercial real estate loans; commercial loans to mortgage companies; equipment financing services; and home equity and residential mortgage loans. In addition, the company offers private banking services; mobile phone banking, Internet banking, wire transfers, electronic bill payment, lock box, remote deposit capture, courier, merchant processing, cash vault, controlled disbursements, and positive pay services; and cash management services, such as account reconciliation, collections, and sweep accounts. It operates 13 full-service branches, as well as limited purpose offices in Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; Philadelphia, Pennsylvania; Washington D.C.; and Chicago, Illinois. Customers Bancorp, Inc. was founded in 1994 and is headquartered in Wyomissing, Pennsylvania.

Details
Name: Customers Bancorp, Inc.
CUBI
Exchange: NYSE
Founded: 1994
$620,737,707
31,145,896
Website: http://www.customersbank.com
Address: Customers Bancorp, Inc.
1015 Penn Avenue,
Suite 103,
Wyomissing,
Pennsylvania, 19610,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CUBI Voting Common Stock New York Stock Exchange US USD 21. Feb 2012
LSE 0I5Z Voting Common Stock London Stock Exchange GB USD 21. Feb 2012
NYSE CUBI.PRC PFD-C FIX/FLT New York Stock Exchange US USD 14. May 2015
NYSE CUBI.PRD PFD-D FIX/FLT New York Stock Exchange US USD 26. Jan 2016
NYSE CUBI.PRE PFD CUM SER E New York Stock Exchange US USD 25. Apr 2016
NYSE CUBI.PRF PFD NONCUM SER F New York Stock Exchange US USD 12. Sep 2016
Number of employees
Current staff
Staff numbers
827
Customers Bancorp employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 00:26
End of day share price update: 2019/06/24 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.