Customers Bancorp, Inc. (CUBI): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, do you defintely know what's driving the performance of Customers Bancorp, Inc. (CUBI), which was recently ranked No. 10 on the American Banker 2025 list of top-performing banks with $10B to $50B in assets? This regional bank has successfully navigated a challenging environment by leaning into specialized lending and its proprietary digital banking platform, a strategy that delivered a Q3 2025 net income of $73.7 million and a tangible book value per share of $59.72. Given their unique exposure, including 16% to 17% of total deposits tied to digital assets, understanding their core mission and how they generate revenue is crucial for mapping near-term opportunities and risks. We will break down the history, ownership, and mechanics that underpin this bank's projected 2025 full-year EPS of $7.29.

Customers Bancorp, Inc. (CUBI) History

Customers Bancorp, Inc. is defintely not a traditional bank story; its current, high-growth trajectory began with a dramatic turnaround and a sharp pivot to a technology-driven model, which is why it's a top-100 U.S. bank today. You have to look past the original 1994 charter to the 2009 recapitalization led by Jay Sidhu to understand the company's DNA, which is built on commercial focus and specialized digital services.

Customers Bancorp's Founding Timeline

Year established

While the bank's underlying charter, New Century Bank, dates back to 1994, the modern Customers Bancorp, Inc. effectively started its current business model in 2009 with a critical recapitalization. The bank holding company, Customers Bancorp, Inc., was formally incorporated in Pennsylvania in April 2010.

Original location

The operational headquarters following the 2009 transformation was established in Wyomissing, Pennsylvania. The headquarters later moved to West Reading, Pennsylvania.

Founding team members

The driving force behind the transformation and the current strategy was Jay S. Sidhu, who took on the role of Chairman and CEO in 2009. He assembled a new management team, many of whom had experience working with him at Sovereign Bancorp, to execute the new high-tech, high-touch vision. His son, Sam Sidhu, now serves as Vice Chairman and Chief Executive Officer of the holding company, continuing the strategic direction.

Initial capital/funding

The initial funding for the turnaround was a significant recapitalization in May 2009, where the new leadership team helped the failing bank raise $13.6 million in capital. This capital injection was the foundation for cleaning up the balance sheet and launching the new strategy.

Customers Bancorp's Evolution Milestones

Customers Bancorp's Transformative Moments

The company's most transformative decisions centered on shedding legacy business models and embracing high-margin, technology-enabled commercial and specialty finance. This wasn't a slow shift; it was a deliberate, three-stage pivot.

Here's the quick math: The strategic focus on commercial and digital banking has led to a tangible book value per share of $56.24 as of June 30, 2025, up from $54.74 just three months earlier.

• The Tech-Forward Pivot: The bank introduced a proprietary, blockchain-based, real-time B2B payments platform for institutional clients. This move positioned Customers Bancorp as a key player in the digital asset space, moving away from a purely regional community bank model.
• Capital Optimization via PPP: The massive scale of the PPP loan origination (over $10 billion) was a game-changer. The fees generated allowed the bank to significantly boost its capital base and strategically exit lower-margin businesses, including the divestiture of BankMobile in 2021.
• 2025 Balance Sheet De-Risking and Growth: In Q1 2025, the bank executed a securities portfolio repositioning, taking a $39.9 million post-tax loss to improve structural liquidity and reduce asset sensitivity. This was immediately followed by a Q3 2025 common equity raise of $163 million and the redemption of $57.5 million of Series E Preferred Stock in Q2 2025, a clear signal of confidence and capital strength.

What this estimate hides is the continued investment in new commercial and venture banking teams, which is expected to drive loan growth of 7% to 10% and deposit growth of 5% to 9% for the full year 2025. This growth is all about specialized lending verticals and a relentless focus on efficiency, which is why you should study their Mission Statement, Vision, & Core Values of Customers Bancorp, Inc. (CUBI).

Customers Bancorp, Inc. (CUBI) Ownership Structure

Customers Bancorp, Inc. (CUBI) is a publicly traded bank holding company, and its ownership is heavily concentrated among institutional investors, which is typical for a financial institution of its size and market capitalization of approximately $2.28 billion as of November 2025. This structure means that large asset managers and hedge funds exert the primary influence over the company's governance and strategic direction.

Customers Bancorp's Current Status

Customers Bancorp, Inc. is a publicly listed company trading on the New York Stock Exchange (NYSE) under the ticker symbol CUBI. As a bank holding company, it is subject to rigorous regulatory oversight by the Federal Reserve and the Securities and Exchange Commission (SEC), which mandates a high degree of transparency in its financial reporting and ownership disclosures. For the 2025 fiscal year, the company has shown strong performance, with net income available to common shareholders reaching $73.7 million in the third quarter alone. Analysts are forecasting a full-year 2025 Earnings Per Share (EPS) of approximately $6.45, indicating solid profitability.

Customers Bancorp's Ownership Breakdown

The company's stock is overwhelmingly held by institutional money, a common pattern where a significant majority of shares are held by professional investment firms. This concentration gives these large shareholders-like BlackRock, Inc. and The Vanguard Group, Inc.-considerable voting power on key corporate matters. Insiders, including executives and board members, hold a meaningful stake, aligning their interests with those of common shareholders. The following breakdown reflects the approximate ownership percentages as of November 2025.

Customers Bancorp's Leadership

The leadership team is currently undergoing a planned transition, which is defintely important for investors to note. The company is steered by an experienced executive committee, with the CEO and President roles split between the founder and his successor for a smooth handoff.

The current leadership structure, as of November 2025, is:

• Jay Sidhu: Chairman and Chief Executive Officer (CEO) of Customers Bancorp. He is set to transition to Executive Chairman effective January 1, 2026.
• Sam Sidhu: Vice Chairman, President of Customers Bancorp, and President and CEO of Customers Bank. He is appointed to succeed Jay Sidhu as CEO of the holding company on January 1, 2026.
• Mark McCollom: Executive Vice President (EVP) & Chief Financial Officer (CFO).
• Nick Robinson: EVP & Chief Risk Officer.
• Lyle Cunningham: EVP & Chief Banking Officer.
• Thomas Kasulka: EVP & Chief Credit Officer.

The board of directors expanded to twelve members in October 2025 with the appointment of four new directors, reflecting a focus on diverse expertise in the governance structure. Understanding the company's core principles is key to evaluating its leadership; you can review the Mission Statement, Vision, & Core Values of Customers Bancorp, Inc. (CUBI).

Customers Bancorp, Inc. (CUBI) Mission and Values

Customers Bancorp, Inc. (CUBI) is not just chasing quarterly earnings; its cultural DNA is built on a dual mandate: using high-tech innovation to deliver high-touch, personalized service, all while creating tangible value for its customers and the communities it serves. This strategy is what allows a bank with over $22 billion in assets to act with the agility of a fintech.

You need to know what drives the engine beyond the numbers, and for Customers Bancorp, Inc., it's a commitment to being a high-performing institution that puts the client first. This focus is paying off, with the company reporting a strong Q3 2025 net income of $73.7 million.

Customers Bancorp's Core Purpose

The company's core purpose is to build a highly successful bank by consistently prioritizing its customers, which is a simple but defintely powerful concept in a commoditized industry. This is executed through a unique 'Single Point of Contact' approach, which is essentially private banking for privately held businesses.

Official mission statement

The mission statement is clear and concise-it maps their daily operations directly to stakeholder value. It's not corporate fluff; it's a clear directive for every loan officer and digital platform developer.

• Customers Bank provides banking services that create value for our customers and the communities we serve.

This mission is supported by the company's strong financial health, including a Tier 1 Capital (CET 1) ratio of 12.0% as of June 30, 2025, which shows they have the capital strength to back their community and customer commitments.

Vision statement

The vision is a growth-oriented, performance-driven goal that was set years ago and is now coming to fruition in 2025. It's a clear financial target that anchors their strategic moves, like expanding their Banking-as-a-Service (BaaS) offering and specialty lending. You can see how this strategy is performing by Exploring Customers Bancorp, Inc. (CUBI) Investor Profile: Who's Buying and Why?

• To be a high performing bank, targeting $6.00 per share in core earnings (Core EPS) by the end of 2025.
• To achieve this by delivering memorable service, combining high-touch support with superior technology.
• To continuously improve the quality of the balance sheet and the overall franchise.

Here's the quick math: their Q2 2025 core earnings per diluted share were already $1.80, putting them on a solid track to meet or exceed that ambitious 2025 target.

Customers Bancorp slogan/tagline

The company's operating philosophy is best captured by its long-standing slogan, which reflects its hybrid model in a competitive banking landscape. It's their competitive edge, honestly.

• High Tech Forward-Thinking Bank Supported by High Touch.

This philosophy translates into practical services like their proprietary blockchain-based real-time payments platform, TassatPay, which is a clear example of their high-tech focus on institutional clients.

Customers Bancorp, Inc. (CUBI) How It Works

Customers Bancorp operates on a high-tech, high-touch model, combining a national digital banking platform with specialized, relationship-driven commercial lending to generate strong net interest income and non-interest fee revenue. The company makes money by effectively managing the spread between its low-cost, digitally sourced deposits and its higher-yielding, niche commercial loans, a strategy that drove Q3 2025 net income to $73.7 million.

Customers Bancorp's Product/Service Portfolio

The bank focuses on a diversified portfolio, but its real edge comes from two key areas: high-yield specialty lending and its proprietary digital payments platform. This dual focus allows it to serve both traditional middle-market businesses and the rapidly evolving fintech sector.

Customers Bancorp's Operational Framework

The core of CUBI's operation is its deposit transformation strategy, which is critical for profitability because it lowers the cost of funds (the money the bank pays for deposits). Honestly, this is the most important thing to watch in a bank's financials. You can see the results in the Q3 2025 net interest margin (NIM) expansion to 3.46%.

Here's the quick math on how they drive value:

• Specialized Loan Origination: Dedicated teams focus on high-growth, specialized lending verticals like venture banking. This expertise allows for a higher-quality loan book and better pricing power. Total loans and leases grew by $319.0 million in Q2 2025, led by these verticals.
• Deposit Funding Mix: The bank actively reduces reliance on expensive brokered deposits while growing relationship-based funding. They reduced brokered deposits by an estimated $350 million quarter-over-quarter in Q2 2025.
• Digital Efficiency: Technology investments aim to improve the core efficiency ratio (noninterest expense relative to revenue), with a 2025 target bias to the low end of the low to mid 50's range.

The digital banking division, including Banking-as-a-Service (BaaS) partnerships, is the engine for attracting low-cost core deposits, which then fund the high-yield loan portfolio. This is a capital-light way to grow your funding base.

Customers Bancorp's Strategic Advantages

CUBI's success isn't just about what they sell, but how they're structured to beat larger, slower competitors. Their advantages are baked into their operating model, giving them a structural edge in both pricing and service.

• Proprietary Payments Technology: The cubiX platform is a mission-critical, real-time B2B payments solution that differentiates the company, especially for commercial clients needing instant settlement.
• Niche Market Focus: Deep specialization in complex areas like Fund Finance and Lender Finance provides premium pricing and strong client retention, which is a defintely a competitive moat.
• Strong Capital and Liquidity: The bank maintains robust financial health, with a Common Equity Tier 1 (CET 1) ratio of 12.0% as of June 30, 2025, which is well above regulatory minimums and their own target of approximately 11.5%.
• Client-Centric Service Model: The Single Point of Contact (SPOC) model assigns a senior banker to each client, ensuring a high-touch experience that complements the high-tech offerings, leading to a strong Net Promoter Score (NPS) of 73 compared to an industry average of 41.

To really understand the financial strength supporting this model, I recommend you check out Breaking Down Customers Bancorp, Inc. (CUBI) Financial Health: Key Insights for Investors.

Customers Bancorp, Inc. (CUBI) How It Makes Money

Customers Bancorp, Inc. primarily generates its revenue by functioning as a traditional bank, earning interest on loans and leases, and managing a growing portfolio of interest-earning assets. The core of its business model is the net interest income (NII), which is the profit spread between the interest it collects from borrowers and the interest it pays to depositors and other funders.

In the third quarter of 2025, the company reported total revenue of approximately $232.1 million, with the vast majority coming from this interest-rate spread business. The remaining revenue comes from non-interest activities, largely fee-based services, including its specialized digital payments platform.

Customers Bancorp's Revenue Breakdown

For the third quarter of 2025, the revenue streams clearly show the company's reliance on its lending and deposit-gathering activities, typical of a commercial bank. Here is the breakdown of the $232.1 million in total revenue.

The Net Interest Income of $201.9 million in Q3 2025 was up a significant $43.4 million from the same quarter in 2024, showing a clear upward trajectory. Non-Interest Income, at $30.2 million, saw a small sequential increase of $0.6 million from the prior quarter, driven by higher loan fees.

Business Economics

The fundamental economic engine for Customers Bancorp centers on maximizing the Net Interest Margin (NIM) while managing risk, especially within its specialized lending segments. They operate on a 'high-tech, high-touch' strategy, focusing on a branch-light model to keep operating costs low.

• Net Interest Margin (NIM) Expansion: The NIM improved to 3.46% in Q3 2025, a 19 basis point increase from the previous quarter. This expansion is a direct result of earning more on loans and leases than they pay on deposits.
• Deposit Cost Management: A key driver of NIM is a successful deposit transformation strategy, which lowered the average cost of deposits to 2.77% in Q3 2025. Lowering the cost of funds directly widens the profit margin.
• Specialized Lending Focus: The bank targets high-growth, specialized lending areas, including commercial real estate and mortgage finance, which drove loans and leases held for investment to $16.3 billion as of September 30, 2025. Specialized lending alone grew by 29.5% year-over-year.
• Fintech/Payments Platform: The cubiX payments platform is a major source of non-interest income and low-cost deposits, having processed $1.5 trillion in payments volume in 2024. This digital infrastructure attracts non-interest-bearing deposits, which represented a healthy 29.3% of total deposits in Q1 2025. That's a huge advantage.

To be fair, the company's focus on specialized lending, while profitable, means credit loss management is defintely critical; provision for credit losses was $27 million in Q3 2025, up from $21 million in the prior quarter. You have to watch that number closely.

Customers Bancorp's Financial Performance

The company's performance in the third quarter of 2025 demonstrates strong profitability and a robust capital position, which is essential for a bank's stability and growth. The successful execution of their strategy is reflected in top-tier return metrics. You can read more about their strategic direction here: Mission Statement, Vision, & Core Values of Customers Bancorp, Inc. (CUBI).

• Net Income and Returns: Net income available to common shareholders was $73.7 million for Q3 2025, translating to a Return on Average Assets (ROAA) of 1.26% and a Return on Common Equity (ROCE) of 15.57%. These are strong profitability figures for the banking sector.
• Capital Strength: The Common Equity Tier 1 (CET1) ratio stood at a strong 13.0% at September 30, 2025, up from 12.1% in the prior quarter, bolstered by a successful $163 million common equity raise. This provides a significant buffer against unexpected losses and flexibility for future growth.
• Shareholder Value: Tangible Book Value per Share grew by 6.2% over the prior quarter to $59.72 as of September 30, 2025. This growth indicates that earnings are meaningfully enhancing shareholder equity.
• Asset Quality: Asset quality remains high, with non-performing loans at a low 0.17% of total loans and leases at the end of Q3 2025. This suggests that the underwriting standards on their growing loan book are sound.

Customers Bancorp, Inc. (CUBI) Market Position & Future Outlook

Customers Bancorp is strategically positioned as a high-growth regional bank, balancing its core commercial lending with a forward-looking digital banking platform, which drove Q3 2025 net income to $73.7 million. The company's future trajectory hinges on successfully executing its margin expansion plan and managing the inherent concentration risks from its digital asset deposit base.

Competitive Landscape

Customers Bancorp competes in the highly fragmented US regional banking sector, differentiating itself through a 'high-tech, high-touch' model. Its primary competitive advantage is the Single Point of Contact (SPOC) service model, supported by an efficient, branch-light structure, and its specialized lending verticals. Here is how it stacks up against comparable peers based on relative market capitalization as of November 2025:

Here's the quick math: Customers Bancorp's market capitalization of approximately $2.28 billion USD as of November 2025 makes it the largest of this peer group, reflecting its strong performance, including Q3 2025 revenue of $232.1 million.

Opportunities & Challenges

The company's strategic initiatives on the horizon focus on two main areas: operational efficiency and revenue diversification. The outlook is optimistic, with analysts forecasting a strong 27.8% yearly earnings growth, but there are defintely risks to monitor.

Industry Position

Customers Bancorp has solidified its position as a high-performing institution, moving beyond a simple regional bank label. With over $22 billion in assets, it is one of the 80 largest bank holding companies in the U.S. This scale, coupled with its specialized focus, allows it to compete effectively against much larger national banks in specific commercial niches.

• The bank was ranked No. 72 on the 2025 Forbes Best Banks list, demonstrating strong industry standing.
• Its core competitive advantage is its operational efficiency, with efficiency ratios consistently reported in the top quartile of its peers, reinforcing the positive operating leverage.
• The focus on commercial and specialized lending, including mortgage finance and corporate lending, provides higher-quality, lower-risk assets, as evidenced by a low non-performing asset ratio of just 0.27% at June 30, 2025.
• The firm's strategic goal is to continue taking market share by focusing on holistic, strategic client relationships, a key factor in driving tangible book value per share to $59.72 by the end of Q3 2025.

To understand the foundation of this strategy, you should review the Mission Statement, Vision, & Core Values of Customers Bancorp, Inc. (CUBI).