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

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

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

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(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.)