Regional banking company Customers Bancorp (NYSE: CUBI) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 15.7% year on year to $225.7 million. Its non-GAAP profit of $1.97 per share was 4.4% above analysts’ consensus estimates.
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Customers Bancorp (CUBI) Q1 CY2026 Highlights:
- Net Interest Income: $191.4 million vs analyst estimates of $194.8 million (14.3% year-on-year growth, 1.8% miss)
- Net Interest Margin: 3.2% vs analyst estimates of 3.2% (2.9 basis point miss)
- Revenue: $225.7 million vs analyst estimates of $223.2 million (15.7% year-on-year growth, 1.1% beat)
- Efficiency Ratio: 49.7% vs analyst estimates of 50.2% (50.6 basis point beat)
- Adjusted EPS: $1.97 vs analyst estimates of $1.89 (4.4% beat)
- Tangible Book Value per Share: $63.54 vs analyst estimates of $63.49 (16.1% year-on-year growth, in line)
- Market Capitalization: $2.58 billion
“On January 1, 2026, I had the honor of succeeding Jay Sidhu as Chief Executive Officer of Customers Bancorp. This transition was the culmination of a deliberate, multiyear transition that our Board and leadership team planned carefully to ensure continuity for our clients, our team members and our shareholders,” said Customers Bancorp CEO Sam Sidhu.
Company Overview
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE: CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Over the last five years, Customers Bancorp grew its revenue at a decent 12% compounded annual growth rate. Its growth was slightly above the average banking company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Customers Bancorp’s recent performance shows its demand has slowed as its annualized revenue growth of 7.7% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Customers Bancorp reported year-on-year revenue growth of 15.7%, and its $225.7 million of revenue exceeded Wall Street’s estimates by 1.1%.
Net interest income made up 88.8% of the company’s total revenue during the last five years, meaning Customers Bancorp barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Customers Bancorp’s TBVPS grew at an incredible 16.2% annual clip over the last five years. TBVPS growth has recently decelerated a bit to 13.7% annual growth over the last two years (from $49.18 to $63.54 per share).
Over the next 12 months, Consensus estimates call for Customers Bancorp’s TBVPS to grow by 14.1% to $72.51, decent growth rate.
Key Takeaways from Customers Bancorp’s Q1 Results
It was good to see Customers Bancorp narrowly top analysts’ revenue expectations this quarter. EPS also beat. On the other hand, its net interest income missed. Overall, this quarter was mixed. The stock remained flat at $77.52 immediately after reporting.
Customers Bancorp’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
