Customers Bancorp, Inc. (CUBI): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out the engine room of a modern bank, not just the stock price, right? Well, looking at Customers Bancorp, Inc.'s latest move, they are definitely pivoting hard into specialized commercial lending, using their proprietary cubiX real-time payments platform to grab high-quality deposits. Honestly, the numbers from Q2 2025 tell a clear story: a 12.0% Common Equity Tier 1 ratio and a razor-thin 0.27% Non-Performing Asset ratio show they are managing risk while pushing a 3.27% Net Interest Margin. This isn't your grandfather's regional bank; it's a tech-enabled, high-touch operation. Dive into the full Business Model Canvas below to see exactly how they structure their key activities and customer segments to pull this off.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Key Partnerships

You're mapping out Customers Bancorp, Inc.'s (CUBI) strategic alliances, which are critical for its 'High Tech/High Touch' model. These partnerships are what allow Customers Bank to punch above its weight, especially in specialized areas like digital assets and embedded finance. Honestly, looking at the numbers, the execution on the technology side is what's driving the recent financial uplift.

Digital Asset Exchanges and Institutional Clients

Customers Bank maintains relationships with key players in the digital asset space, using its blockchain-based 24/7/365 digital payment solution, CBIT (Customers Bank Instant Token). This infrastructure supports institutional clients, including exchanges like Coinbase and Gemini, and stablecoin issuers such as Circle and Paxos Trust. The scale of deposits tied to this strategy is significant, though subject to regulatory scrutiny, as evidenced by the Federal Reserve enforcement action in August 2024.

Here's a look at the scale of the digital deposit segment as of mid-2025:

The cubiX platform itself is a major operational partner output, processing $1 trillion in payments volume year-to-date in 2025, following $1.5 trillion in the full calendar year 2024. The fee revenue run rate from this platform was $8 million as of Q2 2025.

Funding Circle for Digital Small Business Lending as a Service (LaaS)

The partnership with Funding Circle lets Customers Bank embed a digital lending platform to serve small businesses. This allows the bank to offer term loans up to $500,000 with rapid funding times, leveraging Funding Circle's end-to-end platform. To give you a sense of Funding Circle's scale, they have originated $4.5 billion to 45,000 small businesses in the U.S. since 2010.

This strategy supports Customers Bank's commitment to small business growth, which is a core lending vertical. You're defintely tracking a bank that is using external tech to scale its reach without massive internal buildout costs.

Regulatory Compliance and Oversight

As a bank holding company, Customers Bancorp, Inc. operates under the strict oversight of the Federal Reserve System and its deposits are insured by the FDIC. Maintaining regulatory standing is a constant partnership requirement. The bank's capital strength is a key indicator of its compliance posture. As of June 30, 2025, the Common Equity Tier 1 (CET1) ratio stood at 12.0%, which was above its internal target.

Key regulatory and capital metrics include:

• CET1 Ratio (Q2 2025): 12.0%
• Loan to Deposit Ratio (June 30, 2025): 81%
• Immediately Available Liquidity (Q2 2025): $8.6 billion

This liquidity position covered approximately 150% of uninsured deposits as of the second quarter of 2025.

Community Organizations for Corporate Social Responsibility (CSR)

Customers Bank supports community initiatives, such as its involvement with organizations like City Year Philadelphia. While specific 2025 financial contributions to this partnership aren't public, the bank's overall commitment to community service is a component of its brand promise. For context on its peer standing, Customers Bank achieved a Net Promoter Score of 73 compared to the industry average of 41 in 2025, suggesting strong customer and community perception.

Technology Vendors for Core Banking and cubiX Platform Infrastructure

The bank's technology backbone relies on partnerships with specialized vendors. The CBIT settlement network, for example, was designed by Tassat. For its broader core banking needs, Customers Bank operates within an ecosystem that includes major industry players. While the specific core system for Customers Bank isn't explicitly stated for 2025, leading providers in the industry that banks are using to modernize include Temenos, Mambu, Finastra, FIS, and Infosys Finacle.

The cubiX platform's performance is a direct result of its underlying technology stack. The platform's fee revenue run rate was $8 million as of Q2 2025.

Finance: draft 13-week cash view by Friday.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Key Activities

You're focused on the engine room of Customers Bancorp, Inc.'s strategy, which is all about executing specialized, high-quality activities that drive margin and stability. It's not about being the biggest everywhere; it's about being precise where it counts.

Operating the cubiX real-time payments platform

The cubiX platform is definitely a core activity, acting as the infrastructure layer connecting commercial clients, including those in the digital assets space. This tech investment is meant to create a multiyear moat, even if it means foregoing immediate fee revenue. Customers Bancorp does not charge fees to use its cubiX service, aiming instead for clients to maintain higher deposit balances.

Here's the quick math on the platform's scale and its impact on the deposit base as of late 2025:

Specialized commercial and industrial (C&I) loan origination

The bank's lending focus is on specialized verticals like Commercial and Industrial (C&I), mortgage finance, and multifamily loans, all characterized by conservative underwriting. Management is clearly prioritizing franchise-enhancing, safe organic growth over chasing every deal. For the full year 2025, guidance for loan growth was raised to a range of 8% to 11%.

Loan growth figures show this activity in action:

• Total loans and leases held for investment grew $611.7 million in Q1 2025 from Q4 2024.
• Commercial loan growth was $460.3 million in Q1 2025, driven by specialized lending verticals.
• Net held-for-investment loans grew $320 million in Q2 2025, representing 8% annualized growth.
• Total loans and leases held for investment grew $319.0 million, or 2.1%, in Q2 2025 from Q1 2025.

Recruiting and integrating specialized deposit-focused banking teams

A major activity is bringing in specialized, deposit-focused commercial banking teams. These teams are key drivers for improving the quality and stability of the funding base. The bank announced the onboarding of three new teams year-to-date as of Q2 2025, with more in negotiation.

The impact of these teams on deposits is concrete:

• New commercial banking teams contributed nearly $300 million in new commercial deposits during Q2 2025.
• These new teams represent some 11% of the bank's total deposits.
• Non-interest bearing deposits were 29.3% of total deposits at March 31, 2025, holding steady at roughly 29% at Q2 2025.

Disciplined credit underwriting with low NPA ratio of 0.27% (Q2 2025)

Maintaining strong asset quality is a non-negotiable activity, supported by conservative underwriting standards across C&I, mortgage finance, and specialized lending. This discipline results in historically low loss rates. The ratio of non-performing assets to total assets was reported at 0.27% at June 30, 2025.

Credit quality metrics show this discipline:

The allowance coverage ratio increased significantly to 518% of non-performing loans by the end of Q2 2025, showing robust reserve building.

Managing interest expense to expand Net Interest Margin (NIM)

A key operational focus is managing funding costs to expand the Net Interest Margin (NIM). This is achieved through the deposit remix effort, favoring lower-cost deposits. The success of this is clear in the sequential margin expansion throughout the first three quarters of 2025.

The NIM progression demonstrates this management success:

• Q1 2025 NIM was 3.13%.
• Q2 2025 NIM expanded 14 basis points to 3.27%.
• Q3 2025 NIM expanded another 19 basis points to 3.46%.

The Q2 2025 expansion was attributed to higher interest income from loan growth and well-managed interest expenses. By Q3 2025, the 3.46% NIM was also driven by higher average non-interest bearing deposit balances. Finance: draft 13-week cash view by Friday.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Key Resources

You're looking at the core assets Customers Bancorp, Inc. (CUBI) uses to execute its strategy. These aren't just balance sheet items; they are the engines driving the bank's 'high-tech, high-touch' model.

The technology underpinning the operation is definitely a key resource. The proprietary cubiX digital payments platform is central to deposit quality and fee generation. As of Q2 2025, deposits sourced through cubiX hit $3.2 billion, representing between 16% and 17% of total deposits.

What's critical about these deposits is their cost structure. Every dollar in cubiX deposits is noninterest-bearing, meaning they cost the bank nothing in interest expense, which helps the Net Interest Margin (NIM). The platform itself is scaling its fee income, showing an estimated annual run rate of approximately $8 million as of Q2 2025, up from $2.1 million in fee income in Q1 2025.

Here's a quick look at the platform's scale:

• Payments Volume Processed (2024): $1.5 trillion
• Payments Volume Pace (2025): Near $2 trillion
• cubiX Deposits (Q2 2025): $3.2 billion
• Noninterest-Bearing cubiX Deposits: 100%

The balance sheet strength provides the necessary stability for this technology focus. Liquidity is paramount, and Customers Bancorp, Inc. (CUBI) maintains a strong position. As of Q2 2025, they had $8.6 billion of liquidity immediately available. This is a solid buffer, covering roughly 150% of uninsured deposits at that time.

The loan portfolio itself is a core asset, focused on quality over sheer volume, though it is growing. The total loans and leases held for investment stood at over $16.1 billion as of the latest reporting period, having grown by $319.0 million, or 2.1%, in Q2 2025 alone. This growth, coupled with a conservative loan-to-deposit ratio of 81% at June 30, 2025, shows balance sheet discipline.

Capital adequacy is another non-negotiable resource. The bank's capital position remains robust, which allows for strategic flexibility, like redeeming preferred stock. The Common Equity Tier 1 (CET1) ratio was 12.0% at the end of Q2 2025, and it improved further to 13.0% by Q3 2025, well above the target of approximately 11.5%.

You can see the capital strength metrics here:

Finally, the human element-specialized talent-is what makes the commercial and venture lending verticals tick. This isn't just general banking staff; it's expertise in niche, high-growth areas. For example, in 2023, Customers Bancorp, Inc. (CUBI) recruited 30 team members to service the venture-backed industry after acquiring a $631 million portfolio. More recently, the bank has continued this focus, onboarding three new teams year-to-date in 2025, with two more starting soon, to drive commercial deposit and loan growth.

The combination of these specialized teams and the cubiX platform creates a distinct competitive advantage. Finance: draft 13-week cash view by Friday.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Value Propositions

You're looking at how Customers Bancorp, Inc. (CUBI) creates value for its clients as of late 2025. It's a mix of cutting-edge tech for institutional speed and deep, personalized service for commercial relationships.

Real-time, 24/7/365 dollar payments via cubiX for institutional clients

The cubiX platform is central here; it's a proprietary, closed-loop, real-time payments system that doesn't rely on blockchain but delivers instant settlement for institutional clients, particularly those in the digital asset ecosystem. This capability is a major differentiator, allowing for continuous, around-the-clock dollar movement. By the second quarter of 2025, deposits sourced through cubiX had surged to $3.2 billion, making up about 16% to 17% of total deposits. Furthermore, the platform was processing significant volume, having handled over $1.7 trillion in payments as of Q2 2025. This platform also contributes to fee income, bringing in about $2.1 million in fee income in the first quarter of 2025.

High-touch, Single Point of Contact relationship banking model

Customers Bancorp, Inc. couples its technology with a commitment to personal service, evidenced by its successful deposit gathering strategy through new banking teams. These teams, hired since mid-2023, are key to delivering that high-touch experience. As of Q2 2025, these teams managed $2.4 billion in relationship-based funding, which was about 13% of total deposits. This focus on granular, relationship funding is paying off; by Q3 2025, non-interest bearing deposits hit a record $6.4 billion, making up 31% of total deposits, exceeding the top quartile of regional bank peers at 29%. The bank is clearly prioritizing quality funding sources over relying on more volatile options; brokered deposits decreased by an estimated $350 million quarter-over-quarter around Q2 2025.

Technology-enabled tailored product experiences for commercial clients

The bank's technology focus extends to its commercial lending, targeting high-margin sectors and using data to tailor offerings. This tech-forward approach supports disciplined loan growth. The specialized lending vertical grew by 18.9% year-over-year in 2025, focusing on commercial and industrial clients with strong cash flow profiles. This strategy helps maintain a strong credit profile while expanding the loan book. Commercial account openings were also strong, up 14% in Q2 2025 compared to the previous quarter.

Strong balance sheet and credit quality with high reserve coverage

You can see the strength of the balance sheet in the capital and credit metrics reported for the third quarter of 2025. The bank is managing risk prudently while growing assets. Here's a quick look at the key numbers as of September 30, 2025:

The efficiency ratio improved to 45.4% in Q3 2025, which management highlighted as being among the lowest for regional bank peers. Also, the Tangible Book Value per Share reached $59.72 as of September 30, 2025, showing strong annualized growth.

Access to term loans up to $500,000 for small businesses via digital channels

Customers Bancorp, Inc. supports small business expansion through government-guaranteed lending programs, which are often streamlined by their status as an SBA-Preferred Lender. This allows for efficient processing of funding for working capital, equipment, or expansion needs. Specifically, the SBA Export Express loan option offers access to financing up to $500,000, with repayment terms typically between 12 to 24 months. This aligns with the bank's overall strategy of using technology to deliver products to clients efficiently. The bank also offers general Business Term Loans for expansion and other major needs.

Here are some of the specific loan products that support small businesses:

• SBA 7(a) Loans: For startups and existing businesses, with maximum loan amounts up to $5 million.
• SBA 7(a) Small Loan: Maximum loan amount of $350,000.
• SBA Microloans: Maximum loan amount of $50,000.
• SBA Export Express Loan: Maximum loan amount of $500,000.

Finance: draft 13-week cash view by Friday.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Customer Relationships

You're looking at how Customers Bancorp, Inc. (CUBI) builds and keeps its client base, which is clearly centered on high-touch service and strategic digital partnerships. This isn't just about transactions; it's about embedding themselves as essential, reliable partners.

Dedicated Relationship Managers (Single Point of Contact)

Customers Bancorp, Inc. (CUBI) explicitly structures its service delivery around a Single Point of Contact approach for its commercial and consumer clients. You see this commitment reflected in their service model, which is designed to deliver technology-enabled, tailored product experiences through best-in-class customer service. This high-touch model is a core differentiator for the institution. It's the bedrock of their client interaction strategy.

The focus on dedicated support is directly linked to client satisfaction metrics:

• The high-touch, single point of contact business model is cited as a reason for their strong customer loyalty scores.
• The bank emphasizes its team members' commitment to making customers say 'wow.'

High Net Promoter Score (NPS) of 73, well above industry average

The proof of this relationship focus is in the numbers you see reported consistently through 2025. Customers Bancorp, Inc. (CUBI) achieved a Net Promoter Score (NPS) of 73 in Q2 and Q3 2025 reports. To put that in perspective, the industry average NPS they report against is 41. That's a significant gap, showing their clients are far more likely to recommend them than the typical bank.

Here's a quick comparison of that key metric:

Compliance-focused partnership model for digital asset clients

A major element of their modern relationship strategy involves institutional players in the digital asset space. Customers Bancorp, Inc. (CUBI) positions itself as the compliant partner of choice in this evolving sector. This is facilitated by their proprietary payments platform, Kubix, which acts as a closed-loop, 24/7/365 on/off ramp. They have direct API integrations with major exchanges like Coinbase, Gemini, and Kraken.

The scale and nature of these relationships are substantial, providing both volume and stability:

• Kubix deposits reached $3.2 billion as of Q2 2025, representing 16-17% of total deposits.
• The platform processed $1.5 trillion in payment volume in calendar year 2024.
• For Q2 2025 year-to-date, Kubix processed about $1 trillion in payments.
• Deposits from stablecoin issuers made up approximately 10% of the Kubix deposits as of Q2 2025.

Relationship-based deposit gathering to replace brokered funding

The bank is actively executing a deposit franchise transformation, shifting away from more volatile funding sources toward granular, relationship-based deposits. This strategic remixing is key to improving their funding cost structure and overall profitability. You see this play out in the growth of non-interest bearing balances and the reduction of brokered funding.

The success of this strategy is evident in the deposit mix improvement reported through Q3 2025:

Furthermore, the teams hired since March 2023 to drive this relationship focus managed $2.4 billion, which was 13% of total deposits as of Q2 2025. This intentional shift contributed to a 14 basis point increase in their net interest margin in Q2 2025 compared to the prior quarter. The average cost of deposits decreased by 25 basis points in Q1 2025 compared to Q4 2024, driven by these lower-cost sources.

Finance: draft 13-week cash view by Friday.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Channels

You're looking at how Customers Bancorp, Inc. (CUBI) gets its value proposition-high-tech, high-touch banking-out to its clients. This isn't just about branches anymore; it's a blend of digital scale and specialized, on-the-ground expertise.

Digital banking platform (cubiX) for institutional payments

The cubiX platform is central to the strategy, especially for commercial clients and the digital asset ecosystem. It's a closed-loop, real-time payments system developed in-house. The platform's deposit base is a key differentiator for liquidity.

• Q2 2025 cubiX Deposits: $3.2 billion spot basis.
• Q2 2025 cubiX Deposit Share: 16%-17% of total deposits.
• July 2025 cubiX Deposits: Up about 20% from Q2 2025 end.
• 2024 Transaction Volume: $1.5 trillion.
• 2025 Projected Transaction Volume: Near $2 trillion.
• Q2 2025 Fee Income Run Rate: $8 million annual run rate.

This platform is processing massive volumes, with year-to-date 2025 volume approaching $1 trillion as of the Q2 2025 earnings call. The Net Interest Margin (NIM) for Q3 2025 hit 3.46%, showing the benefit of this deposit sourcing.

Specialized national lending and deposit-gathering teams

The bank pairs its technology with relationship-driven teams, often hired from other institutions, to bring in stable, low-cost deposits and drive loan growth. These teams are focused on commercial clients.

Network of physical offices, including expansion to West Coast markets

Customers Bancorp, the subsidiary Customers Bank, is a $24 billion asset bank holding company. In November 2025, the bank announced a significant westward push to capture growth in key regional economies, adding five new physical locations.

The total leased space across these five new offices is just over 30,000 square feet.

• Irvine, California: 8,293 square feet.
• Sherman Oaks, California: 5,767 square feet.
• Sacramento, California: 4,043 square feet.
• Reno, Nevada: 7,779 square feet.
• Las Vegas, Nevada: 4,122 square feet.

This expansion reinforces the strategy of pairing national digital reach with local, high-touch service.

Online portals and mobile-first apps for consumer and commercial clients

Customers Bank provides its commercial and consumer clients with a full suite of technology-enabled tailored product experiences. The service model emphasizes a Single Point of Contact approach for clients.

Embedded Lending as a Service (LaaS) platform for SMBs

The bank focuses on tech-enabled lending targeting high-margin sectors, which supports its overall business model. While specific platform metrics aren't detailed, the broader market context shows that Small & Mid-sized Enterprises (SMEs) are projected to witness faster adoption of embedded lending solutions due to their acute need for accessible, flexible financing.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Customer Segments

You're looking at the core groups Customers Bancorp, Inc. serves, which is a mix of traditional commercial banking and newer, tech-focused niches. The bank organizes its lending into commercial and consumer segments, with commercial being the main driver, including business banking, specialty lending, commercial real estate, and multifamily lending.

The institutional digital asset clients are served through the CubiX platform, which is a closed-loop, real-time payments system. As of Q2 2025, deposits from the CubiX platform surged to $3.2 billion, making up 16-17% of total deposits. These clients include exchanges like Coinbase, Gemini, and Kraken, who hold dollar-denominated cash deposits. Stablecoin Issuer Deposits specifically accounted for about 10% of CubiX deposits in Q2 2025. The platform's scale is evident in its payment volume, processing about $1 trillion year-to-date in 2025. Fee revenue from CubiX was noted at an $8 million annual run rate as of Q2 2025.

For specialized commercial and industrial (C&I) borrowers and technology-focused companies, Customers Bancorp has a dedicated focus. The bank's specialized lending vertical saw growth of 18.9% year-over-year in 2025. In Q2 2025, total loans and leases held for investment grew by $319.0 million, with commercial loan growth of $360.7 million being led by these existing specialized lending verticals. The venture banking segment had grown to nearly $1 billion as of late 2024, with an aim to be a top-three national competitor. This segment was bolstered by the acquisition of a $631 million venture banking loan portfolio from the FDIC in mid-2023.

Small-to-mid sized businesses (SMBs) are served through the bank's broader business banking and C&I lines, which, along with multifamily loans, are characterized by conservative underwriting standards. The bank's overall loan portfolio maintains a focus on low credit risk assumption. Regarding commercial real estate and multifamily property investors, the bank keeps its exposure to the higher-risk commercial real estate office sector minimal, representing approximately 1% of the loan portfolio as of Q1 2025. To give you a sense of the overall loan mix, total consumer installment loans held for investment were less than 4% of total assets at March 31, 2025.

Here's a quick look at some of the key figures tied to these customer groups as of mid-2025 reporting periods:

The bank emphasizes a Private Banking approach where experienced bankers act as a single point of contact for commercial clients, offering personalized service alongside cash management products.

You should note the following key characteristics of the deposit base supporting these segments:

• Noninterest-Bearing Deposits composed roughly 29% of total deposits at Q2 2025.
• Total deposits grew by $43.1 million in Q2 2025 from Q1 2025.
• The bank reduced reliance on volatile brokered deposits by $350 million quarter-over-quarter as of Q2 2025.
• The overall loan to deposit ratio was a conservative 81% at June 30, 2025.

Customers Bancorp, Inc. also provides national corporate banking services to specific groups, including Lender Finance, Fund Finance, Financial Institutions, Technology and Venture, and Healthcare clients.

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Cost Structure

You're looking at the expense side of Customers Bancorp, Inc.'s business model as of late 2025. For a bank with total assets reaching $24.3 billion as of September 30, 2025, managing these costs is what drives that impressive 45.4% Efficiency Ratio reported in Q3 2025.

The cost of funding the balance sheet is definitely a key management focus, especially with the shifting rate environment. Interest expense on deposits and borrowings is a major driver here. For the third quarter of 2025, total interest expense grew to $160 million, though this was outpaced by interest income growth, which is exactly what you want to see. The bank is actively managing its funding mix; total borrowings at the end of Q3 2025 stood at $1.5 billion, a slight increase from the prior quarter. The success in deposit remixing helped lower the total average cost of deposits to 2.77% in Q3 2025.

Personnel costs reflect the strategic investment in growth teams. As of late 2025, Customers Bancorp, Inc. had approximately 850 FTE Employees. This headcount supports the specialized banking teams, with commentary noting the addition of 7 new teams in 2025 alone, which contributed to deposit gathering momentum. In Q2 2025, salaries and employee benefits within non-interest expense increased by $3.2 million, attributed to higher headcount, annual merit increases, and incentives.

Credit quality costs are managed through provisions, which fluctuate based on the economic outlook and portfolio performance. The provision for credit losses was $20.8 million in Q2 2025, as you noted. For the most recent quarter, Q3 2025, the provision for credit losses increased to $27 million. This is set against a backdrop where non-performing loans were very low, at just 0.25% of total assets at the end of Q3 2025, with the allowance for credit losses covering non-performing loans by 534%.

Investment in the operational backbone-technology and compliance-is visible in the non-interest expense line. For instance, in Q2 2025, professional fees, which included investment in risk management infrastructure, increased by $7.7 million year-over-year. Technology, communication, and bank operations costs actually decreased in Q2 2025 by $5.8 million compared to Q2 2024, due to lower deposit servicing fees and software-as-a-service expenses.

General and administrative expenses fall under the broader umbrella of non-interest expenses. For context, total non-interest expenses in Q2 2025 were $106.6 million. The bank's overall cost efficiency is best summarized by its ratio performance, where the Q3 2025 Efficiency Ratio of 45.4% is noted as the lowest among regional bank peers. Here's a quick look at the key cost-related metrics we have for the recent quarters:

The investment in specialized teams and infrastructure is a deliberate choice to drive future revenue, but it shows up here as an ongoing operating cost. You can see the focus on controlling funding costs, given the significant drop in the average cost of deposits. The bank is definitely spending to grow, but the resulting efficiency ratio suggests they are managing that spend well relative to the income generated.

• Total Assets as of 9/30/2025: $24.3 billion
• FTE Employees (Approximate): 850
• New Banking Teams Hired YTD 2025: 7
• Risk Management Infrastructure Investment (Q2 2025 increase in professional fees): $7.7 million
• Total Deposits (Q3 2025): $20.4 billion

Customers Bancorp, Inc. (CUBI) - Canvas Business Model: Revenue Streams

You're looking at how Customers Bancorp, Inc. (CUBI) actually brings in the money, which is key to understanding its valuation, especially given its tech-forward approach. Here's the breakdown of the revenue streams as of the second quarter of 2025.

The primary engine remains the Net Interest Income (NII) generated from its commercial loan portfolio. This is the difference between the interest CUBI earns on its assets and the interest it pays on its liabilities. For Q2 2025, the Net Interest Margin (NIM), on a tax-equivalent basis, stood at a healthy 3.27%, which was an expansion of 14 basis points from the prior quarter. The Net Interest Income for Q2 2025 was $176.7 million. This performance was supported by total loans and leases held for investment growing by $319.0 million, or 2.1%, during the quarter, with commercial loan growth specifically leading at $360.7 million. Management even raised the full-year loan growth projection to 8%-11% for 2025.

Fee income is increasingly important, particularly from the cubiX real-time payments platform. This platform is a major focus for deposit transformation. As of the end of Q2 2025, cubiX deposits reached $3.2 billion on a spot basis, making up about 16%-17% of total deposits. While the platform processed about $1 trillion in payments volume year-to-date in 2025, the direct fee revenue from the cubiX platform itself was noted at an $8 million annual run rate as of Q2 2025, with most of that platform income currently derived from interest.

Interest income from the investment securities portfolio is a component of overall interest income, though specific figures for this stream alone aren't broken out separately from the NII drivers. We know total assets grew to $22.55 billion or $22.6 billion at quarter-end.

Loan origination and servicing fees fall under the broader category of non-interest income, but the growth in the commercial portfolio, driven by existing specialized lending verticals, is the source of this activity. The overall Non-interest Income for Q2 2025 was reported at $29.6 million, showing a recovery from a previous quarter that included impairment losses on certain securities.

Non-interest income from other banking services is captured within that total non-interest income figure. To give you a clearer picture of the income composition for the quarter, here's a look at the main components:

The revenue structure is clearly weighted toward the net interest margin, but the growth in fee-related streams is a strategic focus area. You can see the contribution from the deposit franchise transformation:

• cubiX Deposits at Q2 2025: $3.2 billion
• Noninterest-Bearing Deposits as % of Total Deposits: Roughly 29%
• Total Deposits Increase (Q1 to Q2 2025): $43.1 million
• Loan to Deposit Ratio (June 30, 2025): 81%

Finance: draft the Q3 2025 revenue projection based on the raised 2025 loan growth guidance by next Tuesday.