WEST READING, PA — Customers Bancorp, Inc. (NYSE: CUBI) announced its first-quarter 2025 financial results, showcasing strong performance in deposit transformation, loan growth, and capital enhancements despite a volatile economic landscape. The company reported core earnings of $50.0 million, or $1.54 per diluted share, with a core return on average assets (ROAA) of 0.97% and a core return on common equity (ROCE) of 11.72%.
“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. “Our unique strategy and investments position us well to strengthen our deposit franchise, improve profitability, and maintain strong capital ratios.”
Key financial metrics for the quarter included net interest margin expansion to 3.13% from 3.11% in Q4 2024, supported by a 25-basis-point decline in deposit costs. Total loans and leases held for investment rose to $15.1 billion, a 4.2% increase from the previous quarter, driven by $611.7 million in new activity, particularly in specialized lending and commercial real estate.
The company continued its strategy to enhance liquidity and streamline its balance sheet through a $39.9 million securities portfolio repositioning. This effort was designed to improve structural liquidity, reduce credit sensitivity, and strengthen future margin performance. Customers Bancorp maintained a robust capital position with a CET1 ratio of 11.7% and a liquidity coverage of approximately 155% of uninsured deposits as of March 31, 2025.
Non-interest-bearing deposits remained strong, comprising 29.3% of total deposits, with average deposit costs dropping to 2.82%, reflecting ongoing efforts to improve the deposit franchise. Additionally, the company achieved a 16.8% year-over-year increase in loans and leases, driven by growth across specialized sectors, mortgage finance, and commercial real estate lending.
“We’ve increased commercial deposit accounts by 53% since year-end 2022, adding granular, sticky relationships while significantly lowering our cost of deposits,” noted Sidhu.
Asset quality remained sound, with non-performing assets representing just 0.26% of total assets. The allowance for credit losses equaled 324% of non-performing loans, underlining the bank’s conservative credit approach.
Looking ahead, Customers Bancorp aims to continue building on its deposit remix strategy, strengthening risk management, and capturing market share through its customer-centric, single-point-of-contact service model. “We believe we have the right strategy, the right team, and a client-centric culture to achieve our goals in 2025 and beyond,” concluded President Sam Sidhu.
The company reaffirmed its focus on organic growth, efficiency improvements, and maintaining strong liquidity and capital to support future performance.
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