Customers Bancorp 2026 Annual Shareholder Letter: Key Highlights for Investors

Executive Leadership Transition and Vision

Customers Bancorp, Inc. has announced a significant milestone with the appointment of Sam Sidhu as Chief Executive Officer, effective January 1, 2026. This follows a carefully planned multiyear transition from Jay Sidhu, the architect behind the bank’s transformation from a \$200 million distressed institution in Chester County, Pennsylvania, to a nationally recognized bank with nearly \$25 billion in assets and a market capitalization of approximately \$2.5 billion. Jay Sidhu remains as Executive Chairman, ensuring operational continuity and strategic oversight.

Financial and Operational Performance: 2019–2025

The bank has demonstrated robust and consistent growth:

• Total assets increased at a CAGR of 14%, reaching \$24.9 billion in 2025.
• Total loans grew from \$10.1 billion to \$16.8 billion (9% CAGR).
• Total deposits surged from \$8.6 billion to \$20.8 billion (16% CAGR).
• Core earnings per share (EPS) grew from \$2.35 in 2019 to \$7.61 in 2025, making Customers Bancorp the #1 core EPS compounder among U.S. banks with \$20–100 billion in assets.
• Tangible book value per share (TBVPS) rose from \$26.17 to \$61.77 (15%+ CAGR), the second-highest among peers.
• Core return on average common equity (ROE) improved by about 50% from 9.5% to 13.7%.
• CET1 Capital increased by 500 basis points over the period.
• 2025 revenue was \$818 million, with net interest income up 22% YoY in Q4 2025 and net interest margin up 29 bps YoY in Q4 2025.
• Operating efficiency improved significantly — core efficiency ratio declined 660 bps YoY in Q4, and core non-interest expense as a percent of average assets (1.88%) is among the lowest of regional peers.
• CET1 capital reached 13.0%; tangible common equity to tangible assets increased to 8.5%.

The company’s performance has been recognized by industry benchmarks, including a #45 ranking on the Forbes 2026 list of the largest U.S. publicly traded banks and consecutive “Top 10” performing bank awards from American Banker, with a #1 ranking in 2024 among midsize banks.

Differentiated Business Model and Customer Service

The bank operates on a “Single Point of Contact” model—each customer has a dedicated, empowered banker, reinforced by a branch-lite structure. This enables:

• Lower cost structure and faster decision-making.
• Resources directed to technology and talent, rather than legacy branches.
• Personalized, high-touch service combined with advanced technology solutions.

Customers Bancorp achieved a Net Promoter Score (NPS) of 81 in 2026, up from 73 in 2025 and nearly double the industry benchmark of 41. This signifies exceptional customer satisfaction and loyalty—an important indicator for future growth and retention.

Technology and Payments Innovation: cubiX Platform

A core strategic asset is the cubiX payments platform, launched in late 2024. cubiX enables 24/7/365 real-time settlement for institutional customers and has become one of the largest commercial payments platforms in the U.S. by transaction volume. This positions Customers Bancorp as a leader in digital payments and modern banking infrastructure, enhancing both fee income opportunities and customer stickiness.

Talent Acquisition and National Expansion

Since 2023, the bank has recruited 18 new commercial banking teams and approximately 30 new team members for its venture banking division. The venture banking team now numbers nearly 40 and has made Customers Bancorp a top-five national competitor in this space. The commercial customer account base has increased by more than 50% since year-end 2022. The company’s ability to attract top talent—especially from larger institutions—has directly contributed to deposit growth, lending activity, and enhanced market entry strategies.

Strategic Priorities for 2026

1. AI and Automation: Customers Bancorp is aggressively operationalizing artificial intelligence across the bank. The goal is to move beyond pilots to full workflow orchestration, where AI agents manage end-to-end processes under human supervision. This is viewed as the most significant opportunity in a generation for a bank of its size, and the bank aims to lead the regional banking sector in AI adoption.
2. Organic Growth: The 2026 outlook calls for 8–12% growth in both loans and deposits—expected to outpace the industry—with net interest income projected to reach \$800–830 million (7–11% growth YoY). Non-interest expense growth is expected to be limited to 2–6%, maintaining positive operating leverage despite ongoing investments.
   • The bank aims to expand the cubiX ecosystem into mortgage finance, real estate settlement, and traditional trading markets as demand for real-time payments infrastructure grows.
3. Risk Management: The bank maintains a strong risk discipline, with a commercial net charge-off ratio of just 16 basis points in Q4 2025 and an NPA ratio of 0.29%. Management views regulatory excellence as a competitive advantage, not merely a compliance necessity.
4. Talent Recruitment: The bank continues to recruit high-performing teams that bring operating deposits, relationships, and accountability, with an active pipeline for further team additions.

Shareholder and Price-Sensitive Information

• The leadership transition is fully executed, with a clear strategic roadmap under new CEO Sam Sidhu.
• AI and automation initiatives could materially improve cost structure and operating efficiency, potentially leading to higher profitability and share valuation.
• The cubiX payments platform positions the bank as a technology leader among mid-sized banks, with opportunities for new fee income streams and market expansion.
• Strong core financials, expanding franchise, and best-in-class efficiency ratios may support further share price appreciation if sustained.
• Continued outperformance versus peers and industry recognition may attract additional investor interest and drive valuation multiples higher.

Conclusion and Outlook

Customers Bancorp is positioning itself not as the biggest, but as the most admired commercial bank of its size in the United States. The focus remains on best-in-class service, top-tier financial performance, a culture that attracts the best talent, and technology that enables all these elements. With a strong foundation and momentum, the bank is now focused on disciplined, relentless execution to deliver sustained shareholder value.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Please review official filings and consult with a professional advisor before making investment decisions. The information summarized here is based on the 2026 Annual Shareholder Letter and related SEC filings as of April 15, 2026.

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