Customers Bancorp, Inc. (NYSE:CUBI) has reported strong financial results for the fourth quarter and full year 2025, showing significant growth and strategic execution.
In the fourth quarter of 2025, the net income available to common shareholders was $70.1 million, or $1.98 per diluted share. This represents a solid performance, with a return on average assets (ROAA) of 1.20% and a return on average common equity (ROCE) of 13.28%. Core earnings for the quarter were $72.9 million, or $2.06 per diluted share, with core ROAA at 1.19% and core ROCE at 13.81%.
The company experienced notable increases in both total deposits and total loans during the fourth quarter of 2025. Total deposits grew by $373.7 million, or 1.8%, while total loans increased by $479.4 million, or 2.9%, compared to the third quarter of 2025. The net interest income for the quarter reached $204.4 million, up $2.5 million from the previous quarter, primarily driven by a decrease in interest expense.
For the full year 2025, net income available to common shareholders was $209.2 million, or $6.26 per diluted share. The ROAA for the full year was 0.96%, with a ROCE of 11.22%. Core earnings for the year stood at $254.5 million, or $7.61 per diluted share, with core ROAA at 1.13% and core ROCE at 13.65%.
The company experienced substantial growth in total deposits, which increased by $1.9 billion, or 10.3%, and total loans, which increased by $2.1 billion, or 14.5%, from December 31, 2024, to December 31, 2025. The net interest income for the full year reached a record $750.5 million, showing a significant increase of $96.1 million, or 14.7%, from 2024.
Customers Bancorp also saw positive trends in its capital ratios, with a CET 1 capital ratio of 13.0% at December 31, 2025, compared to 12.1% at December 31, 2024. Book value per share and tangible book value per share grew year over year by approximately $7.69 or 14.2%, driven by strong 2025 annual earnings combined with completed common stock offerings and decreased AOCI losses of $42.5 million during the year.
In terms of key balance sheet trends, loans and leases held for investment reached $16.8 billion at December 31, 2025, reflecting an increase of $484 million, or 3.0%, from September 30, 2025. The company also experienced notable growth in non-owner occupied commercial real estate loans, multifamily loans, and mortgage finance loans.
Total investment securities were $2.7 billion at December 31, 2025, showing a decrease of $145 million compared to September 30, 2025, and a decrease of $345 million compared to a year ago.
The company's total deposits increased to $20.8 billion at December 31, 2025, with the total average cost of deposits decreasing by 53 basis points to 2.54% in the fourth quarter of 2025 from 3.07% in the fourth quarter of 2024.
Customers Bancorp's total borrowings increased to $1.7 billion at December 31, 2025, showing growth of $228.1 million, or 15.4%, compared to the previous quarter.
The company's common equity increased by $72 million to $2.1 billion at December 31, 2025, compared to the prior quarter, primarily driven by earnings of $70 million. Tangible common equity also increased by $72 million to $2.1 billion at December 31, 2025.
In terms of credit quality, the provision for credit losses in the fourth quarter of 2025 was $22 million, compared to $27 million in the third quarter of 2025. Net charge-offs for the fourth quarter of 2025 were $14 million, compared to $15 million in the third quarter of 2025.
Net interest income continued to increase in the fourth quarter of 2025, reaching $204.4 million, an increase of $36.6 million from the fourth quarter of 2024. Reported non-interest income totaled $32.5 million for the fourth quarter of 2025, showing an increase of $32.9 million compared to the fourth quarter of 2024.
Non-interest expenses totaled $117.3 million in the fourth quarter of 2025, showing an increase of $6.9 million compared to the fourth quarter of 2024. The income tax expense decreased by $1.8 million to a provision of $22.8 million in the fourth quarter of 2025 from $24.6 million in the third quarter of 2025.
Looking ahead to 2026, Customers Bancorp is targeting loan growth of 8% to 12% and deposit growth of 8% to 12%, with a projected net interest income growing to $800 to $830 million.
As a result of these announcements, the company's shares have moved -0.34% on the market, and are now trading at a price of $78.46. For the full picture, make sure to review Customers Bancorp's 8-K report.
