Customers Bancorp Q3 net income rises on higher net interest income, deposit growth

By Reuters News


Overview

  • U.S. commercial bank's Q3 net income and core EPS rose year-over-year

  • Company reported record levels for both deposits and loans in Q3

  • Net interest income increased 7.6% from Q2, driven by higher interest income


Outlook

  • Customers Bancorp raises 2026 loan growth guidance to 12%+

  • Company now sees 2026 deposit growth of 9%+

  • Customers Bancorp expects 2026 net interest income of $805 mln-$810 mln


Result Drivers

  • AI AND AUTOMATION - Co said increased use of AI and automation drove productivity gains, including higher revenue and profit per employee, and reduced expenses

  • LOAN AND DEPOSIT GROWTH - Co attributed results to continued organic growth in loans and deposits, with record period-end balances and contributions from new commercial banking teams

  • NET INTEREST INCOME - Co said higher net interest income was driven by increased interest income from investment securities and corporate banking loans and leases


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Core EPS

$2.27

Q3 Net Income

$78.38 mln

Q3 Net Interest Income

$208.08 mln

Q3 CET1 Capital Ratio

12.60%

Q3 Core ROCE

14.10%

Q3 ROCE

14.00%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Customers Bancorp, Inc. is $92.00, about 16.9% above its October 22 closing price of $78.73

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 22 - Huntington Bancshares Q3 EPS unchanged, net interest income up

  • Oct 20 - East West Bancorp Q3 revenue beats estimates on loan and deposit growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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