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

Customers Bancorp

Thu 21:54

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: ID:nBw8JNsjWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Core EPS
 
$2.27
 
Q3 Net Income
 
$78.38 mln
 
Q3 Net Interest Income
 
$208.08 mln
 
Q3 CET1 Capital Ratio
 
12.60%
 
Q3 Core ROCE
 
14.10%
 
Q3 ROCE
 
14.00%
 

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)