What Happened?
Shares of regional banking company Customers Bancorp (NYSE: CUBI) jumped 4.2% in the morning session after the company reported second-quarter earnings that surpassed Wall Street estimates, driven by strong loan growth and expanding profitability.
The bank posted adjusted earnings of $1.80 per share, comfortably beating the average analyst estimate of $1.50 per share. Revenue also came in ahead of expectations. The strong performance was underpinned by robust loan growth, which increased at an 8% annualized rate during the quarter. Furthermore, the bank's net interest margin (NIM) — a key indicator of profitability that measures the difference between interest earned on loans and interest paid on deposits — expanded for the third consecutive quarter to 3.27%. Alongside its strong financial results, the company also announced that CEO Jay Sidhu planned to retire and transition to the role of Executive Chairman, effective January 1, 2026, with current President Sam Sidhu set to succeed him as CEO.
After the initial pop the shares cooled down to $61.77, up 0.5% from previous close.
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What Is The Market Telling Us
Customers Bancorp’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Customers Bancorp is up 30.2% since the beginning of the year, and at $61.77 per share, it is trading close to its 52-week high of $66.85 from July 2024. Investors who bought $1,000 worth of Customers Bancorp’s shares 5 years ago would now be looking at an investment worth $5,877.
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