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Investing.com -- Customers Bancorp, Inc. (NYSE:CUBI) reported better-than-expected first quarter earnings on Thursday, sending its shares up 3.5% in after-hours trading.
The bank holding company posted adjusted earnings per share of $1.54, surpassing the analyst consensus estimate of $1.32. Revenue came in at $167.4 million, below the $190.3 million analysts had projected.
Customers Bancorp’s net income available to common shareholders was $9.5 million, or $0.29 per diluted share, for the first quarter of 2025. Core earnings, which exclude certain one-time items, were $50.0 million or $1.54 per diluted share.
Total (EPA:TTEF) loans and leases held for investment grew by $611.7 million, or 4.2%, from the previous quarter to $15.1 billion. Total deposits increased by $86.5 million or 0.5% to $18.9 billion.
"We are pleased to share our first quarter results that highlight the company’s continuing incredible deposit transformation and underscore our success in growing franchise value," said Customers Bancorp Chairman and CEO Jay Sidhu.
The bank’s net interest margin expanded to 3.13% in Q1, up from 3.11% in the previous quarter, primarily due to lower deposit costs. The average cost of deposits decreased by 25 basis points to 2.82% in Q1 2025 from 3.07% in the prior quarter.
Customers Bancorp maintained strong capital levels, with a CET 1 ratio of 11.7% and total risk-based capital ratio of 14.6% at the end of the quarter.
Looking ahead, management remains focused on transforming its deposit franchise, strengthening risk management, improving profitability, and maintaining strong capital ratios and credit quality.
The company’s shares rose 3.5% in after-hours trading following the earnings release, reflecting investor optimism about the better-than-expected results.
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