Customers Bancorp (NYSE:CUBI) Releases Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• Quarterly EPS of $1.97 beat estimates by $0.09, while revenue was $225.4 million (vs. $223.5M expected) and revenue rose 57.9% year-over-year.
• Board approved a $100 million share repurchase plan, allowing buybacks of up to 4% of shares, signaling management believes the stock may be undervalued.
• Shares were up about 1.3% on the news; the company has a market cap of $2.61 billion, a P/E of 12.51, ~89.3% institutional ownership, and a consensus analyst rating of "Moderate Buy" with an average target of $86.42.

Customers Bancorp (NYSE:CUBI - Get Free Report) posted its quarterly earnings results on Thursday. The bank reported $1.97 EPS for the quarter, topping analysts' consensus estimates of $1.88 by $0.09, FiscalAI reports. Customers Bancorp had a net margin of 15.15% and a return on equity of 14.05%. The company had revenue of $225.40 million for the quarter, compared to analysts' expectations of $223.51 million. During the same quarter in the previous year, the firm posted $1.54 EPS. Customers Bancorp's revenue was up 57.9% on a year-over-year basis.

Customers Bancorp Stock Up 1.3%

Customers Bancorp stock opened at $77.58 on Friday. The firm has a 50 day simple moving average of $70.81 and a 200 day simple moving average of $71.30. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.76. Customers Bancorp has a 1-year low of $47.97 and a 1-year high of $82.56. The firm has a market capitalization of $2.61 billion, a price-to-earnings ratio of 12.51 and a beta of 1.57.

Customers Bancorp declared that its board has authorized a share repurchase plan on Wednesday, February 11th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the bank to purchase up to 4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's management believes its shares are undervalued.

Hedge Funds Weigh In On Customers Bancorp

Large investors have recently made changes to their positions in the stock. State Street Corp boosted its stake in Customers Bancorp by 1.8% during the fourth quarter. State Street Corp now owns 1,832,570 shares of the bank's stock valued at $133,998,000 after buying an additional 32,449 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Customers Bancorp by 3,074.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 871,596 shares of the bank's stock worth $63,732,000 after acquiring an additional 844,141 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Customers Bancorp by 9.2% in the 4th quarter. Geode Capital Management LLC now owns 757,845 shares of the bank's stock valued at $55,423,000 after acquiring an additional 63,984 shares in the last quarter. Nuveen LLC raised its holdings in shares of Customers Bancorp by 6.2% in the 4th quarter. Nuveen LLC now owns 563,757 shares of the bank's stock valued at $41,222,000 after acquiring an additional 32,726 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Customers Bancorp by 8.0% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 524,745 shares of the bank's stock valued at $38,369,000 after acquiring an additional 38,865 shares in the last quarter. 89.29% of the stock is owned by institutional investors.

Analyst Ratings Changes

A number of research firms have issued reports on CUBI. Raymond James Financial reissued a "strong-buy" rating and issued a $95.00 target price on shares of Customers Bancorp in a research report on Tuesday, January 6th. JPMorgan Chase & Co. dropped their price target on Customers Bancorp from $90.00 to $84.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 1st. TD Cowen reiterated a "buy" rating on shares of Customers Bancorp in a research note on Monday, January 26th. Zacks Research downgraded Customers Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 10th. Finally, Wall Street Zen lowered Customers Bancorp from a "buy" rating to a "hold" rating in a report on Sunday, January 25th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $86.42.

About Customers Bancorp

Customers Bancorp, Inc NYSE: CUBI is a bank holding company headquartered in Phoenixville, Pennsylvania, and the parent of Customers Bank, a federally chartered institution. The company offers a full suite of commercial and consumer banking services, combining traditional deposit and lending products with modern digital banking platforms. As a publicly traded entity, Customers Bancorp focuses on delivering tailored financial solutions to mid‐market companies, small businesses, professionals and individuals across the United States.

Through its commercial banking division, the company provides term loans, lines of credit, real estate financing, asset‐based lending and treasury management services.