CUBI · Customers Bancorp, Inc 5.375% S

Customers Bancorp reported solid first quarter 2026 results, with net income available to common shareholders of $69.7 million, or $1.97 per diluted share, essentially flat compared to core earnings of $69.4 million. The quarter demonstrated strong organic growth across the balance sheet, with total deposits increasing $813.9 million (3.9%) from the prior quarter to $21.6 billion, driven by a record $6.7 billion in non-interest bearing deposits (31.2% of total deposits). Total loans grew $609.0 million (3.6%) sequentially, led by C&I specialized lending, owner-occupied CRE, and mortgage finance. Net interest income was $191.4 million, down $13.1 million from Q4 2025 due to lower discount accretion and fewer days, but up $23.9 million year-over-year from higher average loan balances and lower deposit costs. The net interest margin was 3.22% (GAAP and core). Non-interest income rose to $34.3 million, up $1.8 million from the prior quarter, driven by gains on stock warrants and SBA loan sales. Non-interest expense declined $5.3 million sequentially to $112.0 million, reflecting lower insurance expenses and FDIC assessments. The efficiency ratio improved to 49.68% from 52.94% a year ago. Credit quality remained strong, with non-performing loans at 0.27% of total loans and the allowance covering 337% of NPLs. Tangible book value per share increased to $63.54, up 16% year-over-year, supported by earnings and $43 million in share repurchases (621,668 shares at $68.04). Management highlighted continued execution on strategic priorities, including AI deployment, payments expansion, and team recruitment, while expressing confidence in sustaining above-industry growth.