Customers Bancorp currently trades at $62.90 and has been a dream stock for shareholders. It’s returned 464% since July 2020, blowing past the S&P 500’s 94% gain. The company has also beaten the index over the past six months as its stock price is up 25.8%.
Is now still a good time to buy CUBI? Or is this a case of a company fueled by heightened investor enthusiasm? Find out in our full research report, it’s free.
Why Is Customers Bancorp a Good Business?
Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE:CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.
1. Net Interest Income Drives Additional Growth Opportunities
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.S
Customers Bancorp’s net interest income has grown at a 9.8% annualized rate over the last four years, a step above the broader bank industry. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Customers Bancorp’s EPS grew at an astounding 19.4% compounded annual growth rate over the last five years, higher than its 12.7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Growing TBVPS Reflects Strong Asset Base
We consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation.
Customers Bancorp’s TBVPS increased by 18.7% annually over the last five years, and although its annualized growth has recently decelerated to 15.6% over the last two years (from $40.96 to $54.74 per share), we still think its performance was impressive.
Final Judgment
These are just a few reasons why we're bullish on Customers Bancorp, and with its shares topping the market in recent months, the stock trades at 1.1× forward P/B (or $62.90 per share). Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
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