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Investing.com -- Customers Bancorp, Inc. (NYSE:CUBI) reported third-quarter earnings that significantly exceeded analyst expectations, driving shares up 4.3% in after-hours trading on Thursday.
The Pennsylvania-based bank posted adjusted earnings of $2.20 per share, beating the analyst consensus of $1.90 by 15.8%. Revenue reached $232.1 million, surpassing estimates of $215.13 million and representing strong growth compared to the same period last year.
Net interest margin improved to 3.46% in the third quarter, up 19 basis points from 3.27% in the previous quarter, primarily due to higher interest income from loans and leases and increased non-interest bearing deposit balances.
"We are pleased with our third quarter results that show the company’s continued execution of its strategic priorities and underscore our success in growing franchise value," said Customers Bancorp Chairman and CEO Jay Sidhu.
The bank reported robust loan growth with loans and leases held for investment increasing by $893 million, or 5.8%, from the previous quarter to $16.3 billion. Year-over-year, loans grew by $2.5 billion or 18.1%, with specialized lending showing particularly strong growth of 29.5%.
Total deposits increased by $1.4 billion to $20.4 billion compared to the previous quarter, while the average cost of deposits decreased by 8 basis points to 2.77%.
During the quarter, Customers Bancorp successfully raised $163 million in common equity, strengthening its capital position. The bank’s CET1 ratio improved to 13.0% from 12.1% in the previous quarter, while tangible book value per share grew by 6.2% to $59.72.
Asset quality remained strong with non-performing loans at just 0.17% of total loans, down from 0.34% a year earlier.
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