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

Flawless balance sheet and fair value.


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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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

CUBI

-1.0%

US Banks

0.7%

US Market


1 Year Return

21.2%

CUBI

8.9%

US Banks

12.9%

US Market

Return vs Industry: CUBI exceeded the US Banks industry which returned 8.9% over the past year.

Return vs Market: CUBI exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

CUBIIndustryMarket
7 Day-2.5%-1.0%0.7%
30 Day15.9%6.9%4.4%
90 Day28.0%16.7%7.0%
1 Year21.2%21.2%12.2%8.9%15.4%12.9%
3 Year-19.1%-19.1%39.2%29.5%49.1%39.5%
5 Year34.1%34.1%72.7%53.6%62.7%44.7%

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?

13.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CUBI ($24.21) is trading above our estimate of fair value ($22.3)

Significantly Below Fair Value: CUBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CUBI is poor value based on its PE Ratio (13.7x) compared to the Banks industry average (12.7x).

PE vs Market: CUBI is good value based on its PE Ratio (13.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CUBI is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: CUBI is good value based on its PB Ratio (0.9x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Customers Bancorp forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUBI's forecast earnings growth (24.3% per year) is above the savings rate (2.7%).

Earnings vs Market: CUBI's earnings (24.3% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CUBI's revenue (3.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CUBI's revenue (3.8% 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 (10.2%).


Next Steps

Past Performance

How has Customers Bancorp performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUBI has high quality earnings.

Growing Profit Margin: CUBI's current net profit margins (17.2%) are lower than last year (19.2%).


Past Earnings Growth Analysis

Earnings Trend: CUBI's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: CUBI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CUBI had negative earnings growth (-9.5%) over the past year, making it difficult to compare to the Banks industry average (27.5%).


Return on Equity

High ROE: CUBI's Return on Equity (6.8%) is considered low.


Return on Assets


Return on Capital Employed


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 (0.18%)


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

5.3yrs

Average management tenure


CEO

Jay Sidhu (67yo)

9.6yrs

Tenure

US$1,829,086

Compensation

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 Meg ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD1.83M) is below average for companies of similar size in the US market ($USD2.62M).

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


Management Age and Tenure

5.3yrs

Average Tenure

60yo

Average Age

Experienced Management: CUBI's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

67yo

Average Age

Experienced Board: CUBI's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$23,21701 Aug 19
Glenn Hedde
EntityIndividual
Role
Unit President
Executive VP & President of Customers Bank Warehouse Lending
Shares1,109
Max PriceUS$20.94
SellUS$29,19905 Mar 19
Steven Issa
EntityIndividual
Role
Other Key Executive
EVP, Chief Lending Officer & New England President of Commercial/Specialty Lending
Shares1,426
Max PriceUS$20.48
SellUS$27,62004 Mar 19
Glenn Hedde
EntityIndividual
Role
Unit President
Executive VP & President of Customers Bank Warehouse Lending
Shares1,276
Max PriceUS$21.65
SellUS$168,28927 Feb 19
Glenn Hedde
EntityIndividual
Role
Unit President
Executive VP & President of Customers Bank Warehouse Lending
Shares7,802
Max PriceUS$21.57
SellUS$242,56511 Dec 18
Richard Ehst
EntityIndividual
Role
President
President & COO
Shares13,370
Max PriceUS$18.14
SellUS$240,76211 Dec 18
Richard Ehst
EntityIndividual
Role
President
President & COO
Shares13,370
Max PriceUS$18.01

Ownership Breakdown

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


Management Team

  • Jay Sidhu (67yo)

    Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: US$1.83m
  • Steve Issa (64yo)

    EVP, Chief Lending Officer & New England President of Commercial/Specialty Lending

    • Tenure: 0yrs
    • Compensation: US$623.58k
  • Jim Collins

    Chief Administration Officer

    • Tenure: 0yrs
  • Bob Ramsey

    Director of Investor Relations & Strategic Planning

    • Tenure: 0yrs
  • Tom Jastrem (60yo)

    Executive VP & Chief Credit Officer

    • Tenure: 0yrs
  • Bob Philips

    Senior Vice President

    • Tenure: 0yrs
    • Compensation: US$145.98k
  • Jeffrey Skumin (42yo)

    Senior VP

    • Tenure: 1yrs
  • Dick Ehst (72yo)

    President & COO

    • Tenure: 9.6yrs
    • Compensation: US$909.41k
  • Glenn Hedde (58yo)

    Executive VP & President of Customers Bank Warehouse Lending

    • Tenure: 0yrs
    • Compensation: US$668.06k
  • Carla Leibold (52yo)

    Executive VP

    • Tenure: 1yrs
    • Compensation: US$495.53k

Board Members

  • Jay Sidhu (67yo)

    Chairman & CEO

    • Tenure: 9.6yrs
    • Compensation: US$1.83m
  • Daniel Rothermel (81yo)

    Lead Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$186.99k
  • Steve Zuckerman (55yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$152.26k
  • Andrea Allon (57yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$130.02k
  • Larry Way (70yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$152.26k
  • Bhanu Choudhrie (40yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$117.54k
  • Rick Burkey (73yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$152.26k

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$758.264m
  • Shares outstanding: 31.32m
  • 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 comp ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 00:06
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.