Customers Bancorp (CUBI) Stock Forecast & Price Target

Customers Bancorp is well positioned because its core earnings engine is being supported by broad-based balance-sheet growth, disciplined expense control, and a deposit franchise that continues to deepen even amid digital-asset volatility. Period-end deposits increased $814M, or 3.9%, in 1Q to $21.59B, noninterest-bearing deposits rose $431M, loans climbed $624M to $17.27B, core EPS beat consensus at $1.96, the efficiency ratio improved to 49.7% from 52.7% in 1Q25, and tangible book value grew 16% year over year to $63.54. Even with net interest margin down 18bp to 3.22% and net interest income down to $191.4M, the company still sees 2026 net interest income of $800M-$830M, backed by strong low-cost deposit pipelines, a $100M share repurchase authorization, and growing fee income from lending, leasing, and monetization opportunities.

Customers Bancorp is facing a more cautious fundamental outlook because, despite solid headline growth, its earnings profile is being pressured by a lower margin forecast of 3.23%, rising provision expense to $23.5M, and an expected increase in noninterest expenses in 2Q as merit increases take effect on April 1. The company’s funding mix is also somewhat fragile, as average deposits rose only $163M Q/Q to $20.79B while DDA fell $205M due to a $340M decline in cubiX deposits, leaving growth reliant on newer banking teams and less-proven deposit channels. Credit quality remains manageable but is not improving, with nonperforming loans up $4.1M Q/Q to $47.8M, or 0.27% of loans, even as management adds reserves, and the only strong offset is a CET1 ratio of 12.8% that provides capital flexibility rather than immediate earnings protection.