Customers Bancorp, Inc.

Customers Bancorp reported second-quarter 2026 net interest income of US$193.37 million and net income of US$71.56 million, alongside unaudited quarterly net charge-offs of US$14.58 million and the completion of a US$49.08 million share buyback that retired 2.09% of shares. The results featured higher earnings per share, record loans and deposits, and continued loan and deposit growth, signaling management’s focus on scaling the franchise while tightening efficiency and optimizing the balance sheet mix. However, rising net charge-offs and concentrated digital asset deposits remain key near-term swing factors for credit quality and funding stability. The bank’s investment narrative projects US$958.3 million in revenue and US$389.4 million in earnings by 2029, requiring 5.9% annual revenue growth and a roughly US$120 million earnings increase from US$269.3 million today.

Customers Bancorp is targeting a low-40s efficiency ratio run rate in 2027, down from roughly 50% today, while its cubiX real estate payments vertical is expected to become a growth area and could represent 20% of all payment units by that year. President and CEO Samvir Sidhu said total loans grew 4% in the quarter and 17% year-over-year to a record $18 billion, total deposits rose over $140 million to a record $21.7 billion, and noninterest-bearing deposits hit a second consecutive record at $6.9 billion, or 32% of total deposits. CFO Mark McCollom reported EPS of $2.05 and net interest income of over $193 million, up 9% year-over-year, while calling the second quarter's 3.17% net interest margin the low point for 2026 and an inflection point for the year. The bank reaffirmed all key metrics and expects net interest margin to move back toward first-quarter levels in the third quarter, with stronger net interest income in the back half of the year. On the cubiX platform, transaction volume is up roughly seven times, spot deposit balances have more than quadrupled to $400 million, and cumulative transaction activity has surpassed $5 trillion, prompting management to shift from earlier caution to now expecting cubiX to be a growth area in 2027.

Shares of several regional banks rose sharply in afternoon trading after softer-than-expected inflation data reduced expectations for further Federal Reserve interest rate hikes. Lake City Bank gained 3.5%, First Hawaiian Bank rose 3.3%, First Financial Bankshares added 3.1%, and both First Financial Bancorp and Customers Bancorp climbed 3.7%. The moves followed a June CPI reading of 3.5% and lower-than-expected producer prices, which bolstered investor confidence that inflationary pressures may be easing. A more stable rate environment is generally favorable for regional banks, potentially alleviating funding pressures and supporting lending activity, while strong second-quarter earnings from major financial institutions offered a bullish read-through for smaller lenders.

JPMorgan raised its price target on Customers Bancorp to $94 from $86 and maintained an Overweight rating as part of a second-quarter model adjustment across the small and mid-cap bank stocks group. The brokerage noted stable credit trends and growing loans and deposits across the group. Customers Bancorp, a regional bank with over $25 billion in assets, has signed a multiyear deal with OpenAI to automate lending and client onboarding, aiming to reduce loan timelines and grow without adding staff. The bank also plans to repurchase $100 million of its stock over the next year.

Customers Bank has integrated Qualia Shield into its platform, enabling title and escrow professionals to originate and receive wires directly within Qualia software. The integration eliminates the need to switch between systems, with automated fraud verification running on every transaction. Brett Shulick, Executive Vice President at Customers Bank, said the move gives customers the ability to move faster without compromising security. The integration builds on the bank's existing partnership with Qualia, which already provided streamlined onboarding and automated clearing. Customers Bank is a subsidiary of Customers Bancorp, which has nearly $26 billion in assets.