Q3 FY2026
Filed Oct 22, 2026Filed under $CUBICustomers Bancorp reported Q3 2026 GAAP net income available to common shareholders of $78.4 million, or $2.25 per diluted share, alongside record deposits of $22.6 billion and total loans and leases of $18.5 billion.
Quarterly earnings, net interest income, deposits and loans rose from Q2 2026, while the efficiency ratio improved to 47.2%. Deposit and loan growth were accompanied by stable total deposit costs, though nonperforming loans remained above the year-ago level and capital ratios declined from Q2 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net income available to common shareholdersGAAP | $78.38M | – | – |
| Q3 2026 net incomeGAAP | $78.38M | – | – |
| Q3 2026 diluted earnings per common shareGAAP | $ 2.25 | – | – |
| Q3 2026 basic earnings per common shareGAAP | $ 2.33 | – | – |
| Q3 2026 core earningsnon-GAAP | $79.00M | – | – |
| Q3 2026 core earnings per share - dilutednon-GAAP | $ 2.27 | – | – |
| Q3 2026 total interest incomeGAAP | $370.8M | – | – |
| Q3 2026 total interest expenseGAAP | $162.7M | – | – |
| Q3 2026 net interest incomeGAAP | $208.1M | increased $15 million, or 7.6% | – |
| Q3 2026 total non-interest incomeGAAP | $31.37M | decreased $3 million | increased $1 million |
| Q3 2026 core revenuenon-GAAP | $240.2M | – | – |
| Q3 2026 total non-interest expenseGAAP | $113.4M | decreased $1 million | increased $8 million |
| Q3 2026 provision for credit lossesGAAP | $25.43M | – | – |
| Q3 2026 income tax expenseGAAP | $22.23M | – | – |
| Q3 2026 effective tax rateGAAP | 22.1% | – | – |
| Q3 2026 return on average assetsGAAP | 1.16 % | – | – |
| Q3 2026 return on average common equityGAAP | 14.0 % | – | – |
| Q3 2026 net interest margin, tax equivalentGAAP | 3.19 % | – | – |
| Q3 2026 efficiency ratioGAAP | 47.2 % | a decline of approximately 340 basis points | – |
| Q3 2026 total assetsGAAP | $27.41B | – | – |
| September 30, 2026 total loans and leasesGAAP | $18.51B | 2.8% | 13.5% |
| September 30, 2026 loans and leases held for investmentGAAP | $18.40B | 2.5% | 13.1% |
| September 30, 2026 total depositsGAAP | $22.56B | 3.8% | 10.6% |
| September 30, 2026 non-interest bearing demand depositsGAAP | $7.21B | – | – |
| Q3 2026 total average cost of depositsother | 2.50% | remained constant | decreased by 27 basis points |
| September 30, 2026 total investment securitiesGAAP | $4.2B | an increase of $915 million | an increase of $1.4 billion |
| September 30, 2026 total borrowingsGAAP | $2.4B | increased $78 million, or 3.4% | increased $931 million, or 63.0% |
| September 30, 2026 common equityGAAP | $2.2B | decreased $13 million | increased $149 million |
| September 30, 2026 tangible common equitynon-GAAP | $2.2B | decreased $13 million | increased $149 million |
| September 30, 2026 book value per common shareGAAP | $65.77 | – | – |
| September 30, 2026 tangible book value per common sharenon-GAAP | $65.66 | – | – |
| Q3 2026 net charge-offsGAAP | $12.67M | – | – |
| September 30, 2026 nonaccrual / non-performing loansGAAP | $53.44M | – | – |
| September 30, 2026 NPLs to total loans and leasesGAAP | 0.29 % | – | – |
| September 30, 2026 allowance for credit losses on loans and leasesGAAP | $172.1M | – | – |
| September 30, 2026 common equity Tier 1 capital ratioother | 12.6 % | – | – |
| September 30, 2026 total risk based capital ratioother | 14.5 % | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full-year 2026 outlook
- Operating expensesNon-interest Expense: $460 million - $465 million
- Tax rate22% to 23%
- NoteLoans: 12%+
- NoteDeposits: 9%+
- NoteNet Interest Income: $805 million - $810 million
Capital returns
- Repurchased 492,178 shares of common stock in Q3 2026.
- $38 million of common share repurchases in Q3 2026.
- $88 million of common share repurchases in the nine months ended September 30, 2026.
What drove it
- Net interest income increased mainly from investment securities and corporate banking loans and leases.
- C&I loans and leases increased by $592 million, or 6.8% quarter-over-quarter to $9.3 billion, led by corporate banking loans and leases, which increased by $690 million, or 9.7% quarter-over-quarter to $7.8 billion.
- Total deposits increased $831 million, or 3.8%, while non-interest bearing deposits increased $295 million in Q3 2026 compared to Q2 2026.
- The efficiency-ratio improvement reflected higher core revenue with Q3 non-interest expense decreasing $1 million from Q2 2026.
- Commercial lease income increased $4 million year-over-year, while loan fees declined $5 million year-over-year primarily due to lower gains on stock warrants.
Concerns
- Nonperforming loans were 0.29% of total loans and leases at September 30, 2026, compared with 0.17% at September 30, 2025.
- Total borrowings increased $931 million, or 63.0%, from a year ago, primarily due to net draws of $950 million in FHLB advances.
- Common equity Tier 1 capital ratio was 12.6% at September 30, 2026, compared with 12.9% at June 30, 2026 and 13.0% at September 30, 2025.
- Accumulated other comprehensive income (loss), net was $(118,011) at September 30, 2026, compared with $(58,346) at June 30, 2026.
What to watch
- Execution against full-year 2026 guidance for loans of 12%+, deposits of 9%+, net interest income of $805 million - $810 million, non-interest expense of $460 million - $465 million, and tax rate of 22% to 23%.
- Management's expected continued low-cost deposit gathering and margin-accretive loan growth, following an estimated September net interest margin run rate of approximately 3.25%.
- Credit performance and reserve trends, particularly after the increase in NPLs to 0.29% of total loans and leases from 0.17% a year earlier.
- Deposit mix and growth in non-interest bearing deposits, which were $7.2 billion, or 31.9% of total deposits, at September 30, 2026.
Balance sheet and cash flow
- Total cash and investment securities were $ 7,798,061 at September 30, 2026, compared with $ 7,437,163 at June 30, 2026 and $ 6,997,783 at September 30, 2025.
- Cash and cash equivalents were $ 3,624,965 at September 30, 2026.
- Total estimated uninsured deposits were $7.6 billion, or 34% of total deposits at September 30, 2026, with immediately available liquidity covering approximately 151% of these deposits.
- FHLB advances were $ 2,137,182 at September 30, 2026, compared with $ 2,059,163 at June 30, 2026 and $ 1,195,437 at September 30, 2025.
Analysis
Customers Bancorp delivered higher third-quarter earnings and balance-sheet growth. GAAP net income available to common shareholders was $ 78,383, or $ 2.25 per diluted share, compared with $ 71,560 and $ 2.05 in Q2 2026 and $ 73,726 and $ 2.20 in Q3 2025. Core earnings were $ 79,003, or $ 2.27 per diluted share. ROAA improved to 1.16 % from 1.13 % in Q2 2026, while ROCE improved to 14.0 % from 13.2 %.
Net interest income was $ 208,078, up $15 million, or 7.6%, from Q2 2026 and $6 million from Q3 2025. Management attributed the quarterly increase principally to investment securities and corporate banking loans and leases. Tax-equivalent net interest margin was 3.19 %, versus 3.17 % in Q2 2026, while total average cost of deposits remained 2.50%. The CFO said the estimated September run rate for net interest margin was approximately 3.25%. Non-interest income of $ 31,366 declined from $ 34,043 in Q2, primarily because loan fees declined on lower gains on stock warrants. Total non-interest expense was $ 113,396, down from $ 114,891 in Q2, and the efficiency ratio improved to 47.2 % from 50.6 %.
The balance sheet expanded materially. Total deposits reached $ 22,563,833, up 3.8% quarter-over-quarter and 10.6% year-over-year. Non-interest bearing demand deposits reached $ 7,209,138. Total loans and leases reached $ 18,511,337, up 2.8% from Q2 2026 and 13.5% from Q3 2025. Growth in corporate banking loans and leases, non-owner occupied commercial real estate loans and multifamily loans more than offset lower mortgage finance, construction and owner-occupied commercial real estate loans. Investment securities increased to $4.2 billion, driven primarily by purchases of agency MBS and CMO.
Credit metrics improved sequentially but remained weaker than a year ago. Net charge-offs were $ 12,666, below $ 14,579 in Q2 2026 and $ 15,371 in Q3 2025. NPLs declined to $ 53,439 from $ 56,022 in Q2, and the NPL ratio improved to 0.29 % from 0.31 %. The ratio was still above 0.17 % in Q3 2025. The allowance for credit losses on loans and leases increased to $ 172,125, and reserves to NPLs were 322.10 %.
Capital remained substantial but declined sequentially as balance-sheet growth, AOCI and repurchases outweighed quarterly earnings. The common equity Tier 1 capital ratio was 12.6 %, versus 12.9 % in Q2 2026. Tangible common equity to tangible assets was 8.0 %, compared with 8.3 %. The company repurchased 492,178 shares in the quarter and reported $38 million of common-share repurchases. Management updated full-year 2026 guidance to loans growth of 12%+, deposits growth of 9%+, net interest income of $805 million - $810 million, non-interest expense of $460 million - $465 million and a tax rate of 22% to 23%.
Management, verbatim
I am pleased to share our third quarter 2026 results that show the company’s continued execution of its strategic priorities and underscore our success in growing franchise value.
Sam Sidhu, CEO
Net interest income increased $15 million quarter-over-quarter in the third quarter of 2026. Net interest margin expanded to 3.19% and was impacted by a higher level of cash balances resulting from a timing difference between when we brought in deposits and when we funded loan growth. Our estimated run rate for net interest margin in September was approximately 3.25% which gives us confidence for additional expansion in Q4 2026.
Mark McCollom, CFO
We continued to perform well in the third quarter of 2026 and remain focused on executing in those areas which differentiate us from our peers.
Sam Sidhu, CEO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend declarations or payments were not reported.
- Gross margin was not reported.
- Reportable operating-segment revenue was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.