- Customers Bancorp (CUBI, Financial) reported Q1 2025 net income available to common shareholders of $9.5 million, or $0.29 per diluted share.
- Core earnings stood at $50.0 million, or $1.54 per diluted share.
- Total loans and leases grew by $611.7 million, or 4.2%, while deposits increased by $86.5 million, or 0.5%.
Customers Bancorp, Inc. (CUBI) has released its financial results for the first quarter of 2025, reporting a net income available to common shareholders of $9.5 million, equating to $0.29 per diluted share. The company's return on average assets (ROAA) was 0.23%, and return on common equity (ROCE) was 2.23% for the quarter.
Notably, the core earnings for Q1 2025 were $50.0 million, or $1.54 per diluted share, reflecting a core ROAA of 0.97% and a core ROCE of 11.72%. These results exclude significant post-tax losses amounting to $39.9 million associated with repositioning the securities portfolio, aiming to improve structural liquidity and reduce asset sensitivity.
The company achieved a 4.2% increase in total loans and leases held for investment, totaling $611.7 million, from the previous quarter. Additionally, total deposits rose by $86.5 million, or 0.5%. Despite a decrease in non-interest-bearing demand deposits by $55.7 million, representing a 1.0% decline, these deposits still accounted for 29.3% of total deposits as of March 31, 2025.
Customers Bancorp reported a slight decrease in the average cost of deposits to 2.82%, down by 25 basis points from the previous quarter, while the net interest margin (NIM) improved by 2 basis points to 3.13% due to reduced deposit costs. Asset quality remained strong, with the non-performing assets to total assets ratio at 0.26%, and reserves covering 324% of non-performing loans.
The bank maintained a strong liquidity position with $8.7 billion readily available, covering approximately 155% of uninsured deposits. The loan-to-deposit ratio stood at 80% at the end of Q1 2025. The company's common equity tier 1 (CET1) ratio was estimated at 11.7%, reflecting a slight decrease from the previous quarter.
Jay Sidhu, Chairman and CEO of Customers Bancorp, noted the company's strategic deposit remix efforts and its success in growing franchise value amid economic uncertainty. The bank continues to focus on its long-term goals of strengthening its deposit base and enhancing profitability while maintaining robust capital levels.
