Customers Bancorp (CUBI) Stock Forecast & Price Target

Customers Bancorp is supported by strong earnings momentum, with 1Q core EPS up 28% and operating leverage of roughly 700bp year over year, while the efficiency ratio improved to 49.7% from 52.7% in 1Q25. Its balance sheet execution also looks compelling, as TBV rose 16% year over year to $63.54, loans increased 3.7% in 1Q to $17.27B, and deposits climbed 3.9% to $21.59B, led by noninterest-bearing growth and cubiX balances of $4.0B. The outlook remains constructive because new banking teams, a strong recruiting pipeline, and a CET1 ratio of 12.8% support continued deposit transformation, above-average growth, and further positive operating leverage even as expenses rise modestly.

Customers Bancorp is facing a weakening earnings mix as quarterly net interest income fell $13.1M, or 6.4%, to $191.4M, and average loan growth slowed to 1.0% from 5.0% in 4Q25, indicating less momentum in core balance-sheet expansion. Although fee income guidance improved to $131M and deposit costs declined to 2.46%, those positives were offset by a lower margin forecast of 3.23%, and nonperforming loans rose $4.1M to $47.8M, or 0.27% of loans, signaling credit slippage. The outlook remains negative because even with 2026 EPS raised to $8.33 and 2027 EPS to $9.33, the business still depends on continued low-cost deposit growth and stable credit quality, both of which appear increasingly uncertain.