WEST READING, PA — Customers Bancorp, Inc. (NYSE: CUBI) reported first-quarter 2026 net income of $69.7 million, or $1.97 per diluted share, as the bank posted growth in loans, deposits and payments activity, the company announced.
Return on average assets was 1.13% and return on common equity was 13.16% for the quarter, while core earnings totaled $69.4 million, also $1.97 per share.
Total deposits rose by $813.9 million, or 3.9%, from the prior quarter to $21.6 billion, and increased $2.7 billion, or 14%, from a year earlier.
Total loans increased by $609 million, or 3.6%, from the fourth quarter and $2.3 billion, or 15.2%, year over year to $17.4 billion.
Non-interest-bearing deposits grew by $436 million in the quarter to $6.7 billion, representing 31.2% of total deposits.
Chief Executive Officer Sam Sidhu said the company began 2026 with continued balance sheet growth and stable credit quality.
“Our Q1 2026 GAAP earnings were $69.7 million, or $1.97 per diluted share, and core earnings were $69.4 million,” Sidhu said. “Asset quality remains strong with our NPA ratio at just 0.29% of total assets.”
Loans and leases held for investment increased by $615 million from the prior quarter, driven by growth in commercial and industrial lending, mortgage finance and owner-occupied commercial real estate.
Year over year, loan growth was led by a $1.3 billion increase in specialized commercial and industrial lending and a $354 million increase in mortgage finance loans.
Investment securities totaled $2.7 billion at quarter end, down $10 million from the prior quarter and $339 million from a year earlier.
Total deposits carried an average cost of 2.46%, down 8 basis points from the prior quarter and 36 basis points from a year earlier.
Borrowings rose to $1.9 billion, up 11.6% from the prior quarter, primarily reflecting draws on Federal Home Loan Bank advances and federal funds purchased.
Net interest income totaled $191.4 million, down $13.1 million from the fourth quarter but up $23.9 million from the first quarter of 2025.
Chief Financial Officer Mark McCollom said net interest income was affected by lower rates and the end of discount accretion benefits from prior periods.
“Net interest income and net interest margin were impacted as expected by the sunsetting of the discount accretion,” McCollom said.
Non-interest income increased to $34.3 million from $32.5 million in the prior quarter, driven by higher loan fees, commercial lease income and gains on loan sales.
Non-interest expense declined to $112 million from $117.3 million in the fourth quarter, reflecting lower insurance costs, reduced credit loss provisions on unfunded commitments and lower FDIC assessments.
Provision for credit losses was $23 million, compared to $22 million in the prior quarter and $28 million a year earlier.
Net charge-offs declined to $13 million from $14 million in the prior quarter and $17 million in the year-ago period.
Nonperforming loans were 0.27% of total loans and leases, compared to 0.26% at the end of 2025 and 0.29% a year earlier.
The allowance for credit losses on loans and leases increased to $161 million, up from $156 million in the prior quarter.
The bank repurchased 621,668 shares of common stock during the quarter at an average price of $68.04, contributing to total capital returns.
Customers Bancorp reported total common equity of $2.1 billion at March 31, 2026, an increase of $29 million from the prior quarter.
Book value per share rose to $63.64 from $61.87 at the end of 2025 and $54.85 a year earlier.
The company said it remains focused on expanding lending and deposit growth, increasing use of automation and artificial intelligence, and enhancing payments capabilities as part of its 2026 strategy.
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