Customers Bancorp enters the second half of 2026 with the strongest capital and earnings profile in its public-company history. The operating thesis rests on three drivers that compound rather than compete: a commercial-specialized-lending engine still in mid-scale, a deposit franchise that has shifted decisively toward non-interest bearing balances, and a credit reserve build that absorbs consumer-portfolio stress without bleeding into commercial loss rates.
Net income for the second quarter reached $71.6M, up 17.4% from a year earlier. Six-month net income of $141.2M nearly doubled because a one-time impairment depressed the prior base. Diluted EPS of $2.05 in the latest quarter compared with $1.73 a year earlier, and the return on average common equity sits well above the small-cap regional bank median. The trajectory of earnings has rarely been cleaner at the franchise.
The balance sheet now stands at $26.5B in total assets. Deposits total $21.7B and net loans total $17.8B. The holding company CET1 ratio of 12.9% sits roughly 580 basis points above the adequately-capitalized floor. Non-performing loans of $54.7M represent 0.31% of loans and leases. The allowance covers non-accrual loans nearly three times over. Liquidity totals roughly $11.2B between cash on hand and immediate FHLB and FRB capacity. The franchise carries substantial cushion against any idiosyncratic deposit stress.
Risk to the constructive view centers on three forward variables: the trajectory of net interest margin as rate cuts resume, the credit performance of the multifamily book, and the persistence of operating-expense growth that outpaced revenue growth in the first half. None of these pressures undermine the franchise, and each shapes how much of the underlying earnings power surfaces in reported results through 2027.