Customers Bancorp (CUBI) Stock Forecast & Price Target

Customers Bancorp is benefiting from a successful deposit transformation, with total deposits up $814M Q/Q to $21.59B and noninterest-bearing balances rising to 31% of deposits, supported by new banking teams and cubiX deposits that grew ~$200M to $4.0B despite digital asset volatility. Its 1Q26 results showed resilient earnings power, as core EPS grew 28% Y/Y, fee income increased to $34.1M, operating leverage reached ~700bp, and the efficiency ratio improved to 49.7%, even with NII pressure from a lower margin. The outlook remains constructive because loan balances climbed $624M to $17.27B, the recruiting pipeline remains strong, and management expects the new teams hired since 2Q23 to drive $300M to $400M of quarterly deposit growth in 2026.

Customers Bancorp is facing a weaker fundamental setup as net interest income fell $13.1 million sequentially to $191.4 million, with the prior quarter’s ~$10 million deferred-fee benefit and a full-quarter rate cut impact masking only flat underlying NII. Loan growth also slowed to 1.0% from 5.0% in 4Q25, while nonperforming loans rose to $47.8 million, or 0.27% of loans, signaling softer momentum and rising credit stress despite lower charge-offs. Although deposit costs and core expenses declined, the company’s outlook remains pressured by dependence on low-cost deposit growth, execution risk from 10 new banking teams, and vulnerability if the economy weakens further.