Strong Q3 Earnings and Capital Raise Might Change The Case For Investing In Customers Bancorp (CUBI)

• Customers Bancorp reported strong third-quarter 2025 earnings, with net interest income reaching US$201.91 million and net income rising to US$75.75 million, supported by US$1.4 billion in deposit growth and a successful capital raise.
• An oversubscribed equity offering and expansion of the cubiX payments platform marked significant steps in strengthening the bank’s capital base and digital transformation initiatives.
• We’ll examine how the robust deposit growth and capital raising influence Customers Bancorp’s investment narrative and future outlook.

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Customers Bancorp Investment Narrative Recap

To be a shareholder in Customers Bancorp, you have to believe that the bank's fast-growing deposit base, digital-first client approach, and expansion into tech-driven payment services like cubiX will keep driving both earnings and competitive strength. The strong Q3 2025 results and oversubscribed equity raise further support the near-term catalyst of deposit and loan growth; however, rising concentration in digital asset deposits is an ongoing risk and this quarter’s news does not materially reduce that exposure.

The successful common equity offering announced in September stands out as most relevant, as it has immediately improved the company’s capital position, supporting growth and the technology investments underpinning recent deposit gains. This directly ties into Customers Bancorp’s ability to pace its digital transformation ambitions with necessary financial strength, providing a cushion as technology-driven fee income and digital asset activities increase as a share of the business mix.

Yet, despite the strong financial momentum, investors should also be aware of the potential for earnings volatility if digital asset deposit concentration results in...

Read the full narrative on Customers Bancorp (it's free!)

Customers Bancorp's narrative projects $977.5 million in revenue and $424.9 million in earnings by 2028. This requires 17.9% annual revenue growth and a $293.3 million earnings increase from current earnings of $131.6 million.

Uncover how Customers Bancorp's forecasts yield a $80.12 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members submitted three fair value estimates for Customers Bancorp ranging from US$80.13 to US$152.47 per share. With digital asset-related deposits now making up 16 to 17 percent of total deposits, future earnings could swing widely as the business grows more reliant on this segment, so it pays to consider several viewpoints.

Explore 3 other fair value estimates on Customers Bancorp - why the stock might be worth just $80.12!

Build Your Own Customers Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Customers Bancorp research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Customers Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Customers Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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