Customers Bancorp Updates 2026 Loan and Deposit Growth Targets

The Tip Desk · October 27, 2026 · 3 min read

Net interest income rose to $208 million as the bank updated full-year loan growth to 12%+ and deposits to 9%+.

Customers Bancorp (CUBI) updated its full-year 2026 loan and deposit growth targets after a third quarter in which deposit growth re-accelerated and net interest income expanded.

The company now expects loans to grow 12% or more and deposits 9% or more for the year, with net interest income of $805 million to $810 million, non-interest expense of $460 million to $465 million, and a tax rate of 22% to 23%.

Total deposits increased $831 million, or 3.8%, in the third quarter to a record $22.6 billion, after a $140.3 million, or 0.6%, increase in the second quarter. Non-interest bearing deposits rose $295 million to a record $7.2 billion, or 31.9% of total deposits. The average cost of deposits held at 2.50%.

Total loans and leases increased $496 million, or 2.8%, to a record $18.5 billion. C&I loans and leases rose $592 million, or 6.8%, to $9.3 billion. Corporate banking loans and leases increased $690 million, or 9.7%, to $7.8 billion. Geographic and other C&I decreased $98 million, or 5.9%, to $1.6 billion. Non-owner occupied commercial real estate loans increased $179 million, or 9.5%, to $2.1 billion. Multifamily loans increased $44 million, or 1.7%, to $2.7 billion. Mortgage finance loans decreased $259 million, or 15.0%, to $1.5 billion. Construction loans decreased $58 million, or 26.7%, to $159 million. Owner-occupied commercial real estate loans decreased $49 million, or 3.9%, to $1.2 billion.

Net interest income increased $15 million, or 7.6%, to $208 million, driven mainly by higher interest income from investment securities and corporate banking loans and leases. Net interest margin expanded to 3.19% from 3.17%. The company said the move was impacted by a higher level of cash balances from a timing difference between deposit inflows and loan funding, and estimated a September run-rate NIM of about 3.25%.

Investment securities were $4.2 billion at September 30, 2026, up $915 million from June 30, driven primarily from purchases of agency MBS and CMO.

The efficiency ratio declined to 47.2% from 50.6% in the second quarter. Non-interest expenses totaled $113 million, down $1 million from the prior quarter, with lower professional fees and other expenses partly offset by higher technology costs and higher deposit costs. Reported non-interest income totaled $31 million, down $3 million from $34 million, primarily due to a $2 million decrease in loan fees mainly from lower gains on stock warrants.

Net income available to common shareholders was $78.4 million, or $2.25 a share, versus $71.6 million, or $2.05, in the second quarter. Return on average assets was 1.16% and return on average common equity 14.0%.

The provision for credit losses was $25 million. Net charge-offs were $13 million, and the annualized net charge-off rate was 0.28%. Non-performing loans decreased to 0.29% of total loans and leases. Reserves to non-performing loans were 322.10%.

Common equity Tier 1 capital ratio was 12.6% at September 30, 2026. Tangible common equity to tangible assets was 8.0%. The company repurchased 492,178 shares in the quarter.

Chief Executive Officer Sam Sidhu said the company remained focused on AI and automation, payments, above-industry loan and deposit growth, and risk management. Chief Financial Officer Mark McCollom said the NIM trajectory is driven by expected continued low-cost deposit gathering and margin-accretive loan growth.