NYSE:CUBI

Stock Analysis Report

Executive Summary

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.


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

Share Price & News

How has Customers Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CUBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.9%

CUBI

16.8%

US Banks

12.5%

US Market


1 Year Return

-43.3%

CUBI

-26.9%

US Banks

-12.7%

US Market

Return vs Industry: CUBI underperformed the US Banks industry which returned -26.9% over the past year.

Return vs Market: CUBI underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

CUBIIndustryMarket
7 Day8.9%16.8%12.5%
30 Day-47.6%-24.7%-14.7%
90 Day-55.4%-38.6%-21.5%
1 Year-43.3%-43.3%-24.8%-26.9%-10.9%-12.7%
3 Year-65.6%-65.6%-16.9%-23.0%12.6%5.4%
5 Year-57.0%-57.0%12.0%-0.7%31.9%17.5%

Price Volatility Vs. Market

How volatile is Customers Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Customers Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CUBI ($10.63) is trading below our estimate of fair value ($21.79)

Significantly Below Fair Value: CUBI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CUBI is good value based on its PE Ratio (5.1x) compared to the Banks industry average (8.8x).

PE vs Market: CUBI is good value based on its PE Ratio (5.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CUBI is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: CUBI is good value based on its PB Ratio (0.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUBI's forecast earnings growth (18.3% per year) is above the savings rate (1.7%).

Earnings vs Market: CUBI's earnings (18.3% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: CUBI's earnings are forecast to grow, but not significantly.

Revenue vs Market: CUBI's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CUBI's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CUBI's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Customers Bancorp performed over the past 5 years?

0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUBI has high quality earnings.

Growing Profit Margin: CUBI's current net profit margins (19%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: CUBI's earnings have grown by 0.1% per year over the past 5 years.

Accelerating Growth: CUBI's earnings growth over the past year (13.3%) exceeds its 5-year average (0.1% per year).

Earnings vs Industry: CUBI earnings growth over the past year (13.3%) exceeded the Banks industry 11%.


Return on Equity

High ROE: CUBI's Return on Equity (7.5%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CUBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: CUBI's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: CUBI's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CUBI has a sufficient allowance for bad loans.

Low Risk Liabilities: CUBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: CUBI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CUBI's loans are broadly funded by customer deposits.

Level of Bad Loans: CUBI has an appropriate level of bad loans (0.22%)


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate CUBI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CUBI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CUBI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CUBI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CUBI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Jay Sidhu (67yo)

9.92s

Tenure

US$1,829,086

Compensation

Mr. Jay S. Sidhu is Founder, Chairman and CEO of Customers Bancorp. He is Chairman of BankMobile and BankMobile Technologies. Since August 2018 and served as its CEO. Mr. Sidhu has also served as the Execu ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD1.83M) is about average for companies of similar size in the US market ($USD2.17M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Sidhu
Founder9.92yrsUS$1.83m3.66% $12.2m
Richard Ehst
President9.92yrsUS$909.41k0.38% $1.3m
Carla Leibold
Executive VP1.33yrsUS$495.53k0.025% $85.0k
Glenn Hedde
Executive VP & President of Customers Bank Warehouse Lendingno dataUS$668.06k0.25% $822.7k
Steven Issa
EVP, Chief Lending Officer & New England President of Commercial/Specialty Lendingno dataUS$623.58kno data
Samvir Sidhu
Head of Corporate Development & COO0.17yrno data0.13% $429.8k
James Collins
Senior EVP & Chief Administration Officerno datano data0.053% $175.5k
Robert Ramsey
Director of Investor Relations & Strategic Planningno datano datano data
Thomas Jastrem
Executive VP & Chief Credit Officerno datano datano data
Robert Philips
Senior Vice Presidentno dataUS$145.98kno data

5.6yrs

Average Tenure

60yo

Average Age

Experienced Management: CUBI's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Sidhu
Founder9.92yrsUS$1.83m3.66% $12.2m
Daniel Rothermel
Lead Independent Director9.17yrsUS$186.99k0.26% $860.8k
Steven Zuckerman
Independent Director9.17yrsUS$152.26k0.16% $538.9k
Andrea Allon
Independent Director3.75yrsUS$130.02k0.058% $194.7k
T. Way
Independent Director9.17yrsUS$152.26k0.68% $2.3m
Bhanu Choudhrie
Independent Director7.17yrsUS$117.54k2.15% $7.2m
Rick Burkey
Independent Director3.92yrsUS$152.26k0.19% $643.9k

9.2yrs

Average Tenure

67yo

Average Age

Experienced Board: CUBI's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CUBI insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Customers Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Customers Bancorp, Inc.
  • Ticker: CUBI
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$333.585m
  • Shares outstanding: 31.38m
  • Website: https://www.customersbank.com

Number of Employees


Location

  • Customers Bancorp, Inc.
  • 1015 Penn Avenue
  • Suite 103
  • Wyomissing
  • Pennsylvania
  • 19610
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUBINYSE (New York Stock Exchange)YesVoting Common StockUSUSDFeb 2012
0I5ZLSE (London Stock Exchange)YesVoting Common StockGBUSDFeb 2012
CUBI.PRCNYSE (New York Stock Exchange)PFD-C FIX/FLTUSUSDMay 2015
CUBI.PRDNYSE (New York Stock Exchange)PFD-D FIX/FLTUSUSDJan 2016
CUBI.PRENYSE (New York Stock Exchange)PFD CUM SER EUSUSDApr 2016
CUBI.PRFNYSE (New York Stock Exchange)PFD NONCUM SER FUSUSDSep 2016

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:24
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.