Customers Bancorp earnings for the third quarter of 2026 showed record deposits of $22.6 billion and loans of $18.5 billion, alongside stronger net interest income. The bank holding company released its results on October 22, reporting net income available to common shareholders of $78.4 million, or $2.25 per diluted share, for the quarter ended September 30.
Key Takeaways
- Deposits rose 3.8% from the preceding quarter, while total loans increased 2.8%.
- Net interest income climbed 7.6% sequentially to $208 million as net interest margin reached 3.19%.
- Management updated its 2026 outlook, targeting loan growth of 12%+ and deposit growth of 9%+.
Table of Contents
- Customers Bancorp earnings reflect broader balance-sheet growth
- Interest income rises while deposit costs hold steady
- Credit quality improves sequentially but not annually
- Full-year outlook sets fourth-quarter priorities
- Conclusion
Customers Bancorp earnings reflect broader balance-sheet growth
Customers Bancorp’s third-quarter results announcement showed deposits increasing by $831 million from June 30 and $2.2 billion from a year earlier. Total loans rose $496 million sequentially and $2.2 billion year over year, representing annual growth of 13.5%.
Non-interest-bearing deposits increased $295 million during the quarter to a record $7.2 billion, or 31.9% of total deposits. These balances provide funding without an interest expense, making their contribution important alongside the overall deposit growth.
Growth was uneven across lending categories. Commercial and industrial loans and leases held for investment increased $592 million from the preceding quarter, while mortgage finance loans fell $259 million. Total loans and leases held for investment reached $18.4 billion, a narrower measure than the $18.5 billion total-loan figure.
| Item | Details |
|---|---|
| 2026 loan growth guidance | 12%+ |
| 2026 deposit growth guidance | 9%+ |
| 2026 net interest income guidance | $805 million–$810 million |
| 2026 non-interest expense guidance | $460 million–$465 million |
| 2026 tax rate guidance | 22%–23% |
Interest income rises while deposit costs hold steady
Net interest income increased $15 million from the second quarter, driven mainly by higher interest income from investment securities and corporate banking loans and leases. The average cost of deposits remained unchanged sequentially at 2.50%, down from 2.77% a year earlier.
Chief Financial Officer Mark McCollom said net interest margin expanded to 3.19%, despite elevated cash balances caused by a timing gap between deposit gathering and loan funding. He estimated September’s margin run rate at approximately 3.25% and said management expected further expansion in the fourth quarter.
Operating efficiency also improved. The efficiency ratio declined to 47.2% from 50.6% in the second quarter, while non-interest expenses fell $1 million to $113 million. Expenses nevertheless remained $8 million above their year-earlier level.
Credit quality improves sequentially but not annually
Non-performing loans represented 0.29% of total loans and leases at September 30, down from 0.31% at June 30 but above 0.17% a year earlier. The comparison points to sequential improvement without a return to the prior year’s level.
Net charge-offs fell to $13 million from $15 million in both comparison quarters. However, the provision for credit losses increased to $25 million from $23 million in the second quarter, while remaining below the $27 million recorded a year earlier.
Customers Bancorp repurchased 492,178 common shares during the quarter for $38 million. Its estimated Common Equity Tier 1 capital ratio stood at 12.6% at September 30.
Full-year outlook sets fourth-quarter priorities
Chief Executive Officer Sam Sidhu said the company updated its full-year guidance following its year-to-date performance. The outlook below represents management’s expectations, not completed results.
Management also plans to expand AI and automation initiatives. The company completed a pilot for opening commercial deposit accounts in minutes rather than days, but broader deployment and its expected benefits remain part of the execution agenda.
Conclusion
The fourth quarter will test management’s expectation for further margin expansion and delivery against its updated 2026 guidance. Credit performance remains another measure to watch as the larger loan portfolio develops.
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