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Sep 30
Customers Bancorp Q3 2025 Earnings Report
Customers Bancorp reported solid third quarter results with increased profitability, margin expansion, and strengthened capital levels.
Key Takeaways
Customers Bancorp delivered strong Q3 2025 results, reporting higher net income and EPS, improved efficiency ratio, and increased net interest margin. The bank also raised $163 million in equity, boosting its capital position.
Net income rose to $73.7 million, with EPS of $2.20.
Net interest income increased to $201.9 million due to higher average loan balances and deposit mix improvements.
Efficiency ratio improved significantly to 45.4%, reflecting cost discipline and operating leverage.
Raised $163 million in common equity, pushing CET1 ratio to 13.0%.
Customers Bancorp
Customers Bancorp
Forward Guidance
Management remains confident in its strategic initiatives, citing strong team recruitment, growing real-time payments platform (cubiX), and operational discipline as drivers of long-term growth.
Positive Outlook
- Strong pipeline of loan growth and new banking teams added.
- Improved funding mix with higher non-interest-bearing deposits.
- Capital strength enhanced by successful equity raise.
- Operational excellence initiatives driving efficiency gains.
- Continued investments in technology and risk management.
Challenges Ahead
- Continued provisioning for credit losses ($26.5M in Q3).
- Moderate increases in salary and benefits expenses.
- Competitive deposit environment impacting cost of funds.
- Potential macroeconomic headwinds remain a concern.
- Declines in mortgage and installment loan balances.