Customers Bancorp (CUBI) Reports Q3 Earnings: Key Metrics Overview

Customers Bancorp (CUBI) recently released its earnings report for the quarter ending in September 2024. The figures reveal a decline in both revenue and earnings per share (EPS) compared to the same period in the previous year.

For this quarter, Customers Bancorp reported revenue of $167.1 million, which marks a significant decrease of 23.2% from the year-ago quarter. The EPS for this period stood at $1.26, a decline from $2.59 reported last year.

These revenue figures fell short of the Zacks Consensus Estimate of $192.64 million, leading to a surprise of -13.26%. The earnings per share also missed expectations by -13.10%, with a consensus estimate at $1.45.

While the top- and bottom-line numbers highlight the company's performance, analysts and investors often look beyond these figures to delve into key metrics, which offer a clearer picture of the financial health of the company. Comparing these metrics against past values and Wall Street estimates can help in assessing future stock performance more accurately.

Below is a summary of Customers Bancorp's performance in the recently reported quarter based on widely monitored metrics:

• Efficiency Ratio: The efficiency ratio was recorded at 62.4%, which is significantly higher than the four-analyst average estimate of 54%.
• Net Interest Margin: Reported at 3.1%, this also fell short of the estimated 3.3% by three analysts.
• Average Interest-Earning Assets: The average for this quarter was $20.69 billion, which is slightly below the average estimate of $20.72 billion.
• Net Charge-Offs to Average Loans: This came in at 0.5%, better than the two-analyst average estimate of 0.6%.
• Total Non-Interest Income: The company reported $8.56 million, a significant drop compared to the four-analyst estimate of $21.32 million.
• Bank-Owned Life Insurance: The earnings stood at $2.05 million, exactly matching the three-analyst average estimate.
• Net Interest Income (Tax Equivalent): The reported figure was $158.94 million, lower than the expected $171.83 million.
• Mortgage Warehouse Transaction Fees: Customers Bancorp reported $1.09 million, which also fell short of the $1.35 million estimate.
• Net Interest Income: At $158.55 million, this was less than the three-analyst average estimate of $171.52 million.
• Commercial Lease Income: The company reported $10.09 million, closely aligning with the estimate of $10.06 million.
• Loan Fees: These were reported at $8.01 million, up from the estimated $5.28 million.
• Other Non-Interest Income: Customers Bancorp earned $1.87 million, slightly lower than the $1.98 million estimate.

The reported results have implications for investors, as shares of Customers Bancorp have increased by +3.2% over the past month, compared to a +1% change in the Zacks S&P 500 composite. However, with a Zacks Rank of #4 (Sell), the stock may underperform the broader market in the near term.

Earnings, Finance, Investing