WEST READING, PA — Customers Bancorp, Inc. (NYSE: CUBI) reported solid third-quarter 2025 results, highlighted by a sharp rise in net interest margin and robust earnings growth that underscored continued franchise expansion and disciplined balance sheet management.
Net income available to common shareholders was $73.7 million, or $2.20 per diluted share, compared with $2.20 in core earnings. Return on average assets was 1.26%, and return on common equity reached 15.57%. Net interest margin expanded to 3.46%, up 19 basis points from the prior quarter, supported by higher loan yields and an improved mix of noninterest-bearing deposits.
“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 successful common equity raise this quarter further strengthened our already solid capital position and provides flexibility to potentially redeem the remaining preferred stock in the fourth quarter.”
During the quarter, Customers Bancorp raised $163 million in common equity (net of issuance costs), boosting its common equity tier 1 ratio to 13.0%, up from 12.1% in the previous quarter. Book value per share rose to $59.83, while tangible book value per share increased to $59.72 — both up more than 6% from the prior quarter.
Loans and leases held for investment grew to $16.3 billion, a 5.8% increase from the previous quarter and up 18% year-over-year, driven by gains in specialized lending and multifamily portfolios. Deposits climbed by $1.4 billion to $20.4 billion, while the average cost of deposits fell 8 basis points to 2.77%.
Asset quality remained strong, with nonperforming loans down slightly to 0.17% of total loans and reserve coverage at 534% of total nonperforming loans. The bank’s provision for credit losses increased to $27 million, reflecting conservative risk management amid portfolio growth.
Net interest income totaled $201.9 million, up $25.2 million from the prior quarter, while noninterest income rose to $30.2 million, aided by higher loan fees and reduced losses on securities sales. Operating efficiency improved, as noninterest expenses declined to $105.2 million, reflecting lower FDIC assessments and professional fees.
“Net interest margin continued to expand in the quarter as we realized the benefits of deposit-led loan growth and well-managed funding costs,” said Customers Bancorp President Sam Sidhu. “Our recruitment strategy remains strong, with seven new commercial banking teams joining this year, supporting continued growth momentum.”
Looking ahead, Customers Bancorp expects to maintain positive operating leverage, supported by its real-time payments platform, cubiX, and an expanding team of relationship bankers. “We have the right strategy, the right team, and a client-centric culture to achieve our goals in 2025 and beyond,” Sidhu added.
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