Customers Bancorp reported a mixed fourth quarter, with revenue and adjusted non-GAAP earnings per share both coming in above Wall Street expectations, but adjusted operating income significantly missing consensus forecasts. Management pointed to robust deposit growth and payments platform expansion as key contributors, highlighting a 10% annual increase in total deposits led by new commercial banking teams and continued strong adoption of the cubiX payments platform. However, higher-than-expected noninterest expenses, including onboarding and legal costs tied to new team hires, compressed margins and contributed to the negative market reaction. CFO Mark McCollom acknowledged these expense pressures, stating, “We had a total of $4.8 million of unique expense in the quarter, which included $1.9 million in legal fees associated with the new team on boarding.”
Is now the time to buy CUBI? Find out in our full research report (it’s free for active Edge members).
Customers Bancorp (CUBI) Q4 CY2025 Highlights:
- Revenue: $236.9 million vs analyst estimates of $231.3 million (22.5% year-on-year growth, 2.4% beat)
- Adjusted EPS: $2.06 vs analyst estimates of $2.04 (0.8% beat)
- Adjusted Operating Income: $97.25 million vs analyst estimates of $120.3 million (41.1% margin, 19.2% miss)
- Market Capitalization: $2.62 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Customers Bancorp’s Q4 Earnings Call
- Sun Young Lee (TD Cowen) asked about expectations for fee income growth in 2026. CEO Samvir Sidhu responded that fee income will vary by quarter, but recent business maturation should improve monetization and consistency.
- Stephen Moss (Raymond James) inquired about new team recruitment and the impact on deposit growth. Sidhu confirmed active discussions with several teams and highlighted the focus on low-cost deposit gathering from both new and existing verticals.
- Kelly Motta (KBW) questioned expense guidance, specifically regarding investments in new teams and professional fees. CFO Mark McCollom explained that expense guidance includes ongoing team hiring, but expects professional service fees to decline as onboarding costs normalize.
- Brian Wilczynski (Morgan Stanley) asked about the resiliency of cubiX deposits amid cryptocurrency volatility. Sidhu noted that volatility tends to increase network activity and balances, and emphasized that expanding payment rails and customer breadth enhances platform stickiness.
- Peter Winter (D.A. Davidson) asked for details on credit quality and the rise in nonperforming loans. McCollom clarified that increases were due to a small number of credits from a low base and do not indicate a broader deterioration.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will closely watch (1) whether new commercial banking team hires translate into continued double-digit deposit and loan growth, (2) the scale and monetization of the cubiX payments platform into additional commercial verticals, and (3) the realization of productivity and efficiency gains from AI adoption and operational initiatives. Execution on expense control and maintaining credit quality will also be critical to progress.
Customers Bancorp currently trades at $77.23, down from $81.21 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).
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