NYSE:CUBI

Stock Analysis Report

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Executive Summary

Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. More Details


Snowflake Analysis

Excellent balance sheet with solid track record.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CUBI's weekly volatility has decreased from 12% to 6% over the past year.


Market Performance


7 Day Return

0.9%

CUBI

-0.2%

US Banks

-3.6%

US Market


1 Year Return

32.0%

CUBI

19.9%

US Banks

36.4%

US Market

Return vs Industry: CUBI exceeded the US Banks industry which returned 19.8% over the past year.

Return vs Market: CUBI underperformed the US Market which returned 38.5% over the past year.


Shareholder returns

CUBIIndustryMarket
7 Day0.9%-0.2%-3.6%
30 Day20.1%13.5%0.9%
90 Day50.4%22.3%6.7%
1 Year47.5%32.0%24.3%19.9%39.4%36.4%
3 Year-0.05%-10.6%11.7%2.2%53.4%43.5%
5 Year20.7%8.0%92.0%67.7%117.3%93.0%

Long-Term 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?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CUBI ($26.78) is trading below our estimate of fair value ($38.65)

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 (7.1x) compared to the US Banks industry average (12.5x).

PE vs Market: CUBI is good value based on its PE Ratio (7.1x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: CUBI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CUBI's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Customers Bancorp forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CUBI's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: CUBI's earnings are forecast to decline over the next 3 years (-0.2% per year).

High Growth Earnings: CUBI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CUBI's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: CUBI's revenue is forecast to decline over the next 3 years (-2.3% 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 (10.5%).


Next Steps

Past Performance

How has Customers Bancorp performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CUBI has high quality earnings.

Growing Profit Margin: CUBI's current net profit margins (26.8%) are higher than last year (19%).


Past Earnings Growth Analysis

Earnings Trend: CUBI's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: CUBI's earnings growth over the past year (83.1%) exceeds its 5-year average (2.5% per year).

Earnings vs Industry: CUBI earnings growth over the past year (83.1%) exceeded the Banks industry 0.6%.


Return on Equity

High ROE: CUBI's Return on Equity (11.9%) 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


Financial Institutions Analysis

Asset Level: CUBI's Assets to Equity ratio (16.5x) is moderate.

Allowance for Bad Loans: CUBI has a sufficient allowance for bad loans (204%).

Low Risk Liabilities: 65% of CUBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: CUBI has an appropriate level of Loans to Assets ratio (85%).

Low Risk Deposits: CUBI's Loans to Deposits ratio (138%) is high.

Level of Bad Loans: CUBI has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

What is Customers Bancorp 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 recent payouts.

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

10.5yrs

Average management tenure


CEO

Jay Sidhu (68 yo)

10.83yrs

Tenure

US$3,051,306

Compensation

Mr. Jay S. Sidhu is Co-Founder of BankMobile and served as its Executive Chairman until January 04, 2021 and served as its Chief Executive Officer. Mr. Sidhu is Founder of Customers Bancorp. He served as D...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD3.05M) is above average for companies of similar size in the US market ($USD2.25M).

Compensation vs Earnings: Jay's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jay Sidhu
Founder10.83yrsUS$3.05m3.94%
$ 33.4m
Richard Ehst
President10.08yrsUS$1.22m0.43%
$ 3.6m
Carla Leibold
Executive VP2.25yrsUS$791.13k0.054%
$ 461.5k
James Collins
Senior EVP & Chief Administration Officerno dataUS$313.62kno data
Jessie John Velasquez
Senior VP0.83yrno data0.0061%
$ 52.0k
Robert Ramsey
Director of Investor Relations & Strategic Planningno datano datano data
Samvir Sidhu
Head of Corporate Development & Director9.08yrsno data0.13%
$ 1.1m
Robert Philips
Senior Vice Presidentno dataUS$145.98kno data
Robert Fischer
Senior Vice President10.5yrsno datano data
Timothy Romig
Regional Chief Lending Officer10.5yrsno datano data
Keith Phillips
Senior Vice President10.5yrsno datano data
Mary Scalese
Chief Auditor & Executive VP5.83yrsno datano data

10.5yrs

Average Tenure

60.5yo

Average Age

Experienced Management: CUBI's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jay Sidhu
Founder10.83yrsUS$3.05m3.94%
$ 33.4m
Richard Ehst
President10.08yrsUS$1.22m0.43%
$ 3.6m
Samvir Sidhu
Head of Corporate Development & Director9.08yrsno data0.13%
$ 1.1m
Andrew Bowman
Senior EVP0.67yrno data0.088%
$ 750.2k
Daniel Rothermel
Lead Independent Directorno dataUS$146.22k0.27%
$ 2.3m
Steven Zuckerman
Independent Director12.08yrsUS$125.02k0.17%
$ 1.5m
Robert Buford
Independent Director0.58yrno data0.0090%
$ 76.4k
Andrea Allon
Independent Director4.67yrsUS$114.41k0.068%
$ 580.1k
T. Way
Independent Director16.08yrsUS$125.02k0.69%
$ 5.9m
Bhanu Choudhrie
Independent Director8.08yrsUS$103.80k2.14%
$ 18.1m
Rick Burkey
Independent Director4.83yrsUS$125.02k0.20%
$ 1.7m

8.6yrs

Average Tenure

69.5yo

Average Age

Experienced Board: CUBI's board of directors are considered experienced (8.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CUBI insiders have only sold shares 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$849.062m
  • Shares outstanding: 31.71m
  • Website: https://www.customersbank.com

Number of Employees


Location

  • Customers Bancorp, Inc.
  • 701 Reading Avenue
  • West Reading
  • Pennsylvania
  • 19611
  • 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)7% 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 individual consumers, and small and middle market businesses. It operates in...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/27 23:54
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.