WEST READING, Pa. - Customers Bancorp, Inc. (NYSE:CUBI), the parent company of Customers Bank, has announced the authorization of a new stock repurchase program. The plan, which was approved by the company's Board of Directors on June 26, 2024, allows for the repurchase of up to 497,509 shares of its outstanding common stock over the next year.
This new repurchase initiative follows the expiration of the previous plan on September 27, 2023, which concluded with the same number of shares remaining unrepurchased. The decision to activate a new repurchase plan coincides with the company's successful efforts in 2023 to strengthen its capital ratios amid an uncertain economic environment, as stated by Jay Sidhu, Chairman and CEO of Customers Bancorp, Inc.
The company saw its Common Equity Tier 1 increase by approximately 260 basis points and its tangible common equity to total assets (TCE/TA) increase by about 100 basis points in 2023, surpassing its Common Equity Tier 1 target of 11.5% and nearing its TCE/TA target of 7.5%.
Customers Bancorp, Inc., with nearly $22 billion in assets, is recognized as one of the nation's top-performing banking companies and ranks among the 80 largest bank-holding companies in the U.S.
The information presented in this article is based on a press release statement from Customers Bancorp, Inc.
In other recent news, Customers Bancorp reported a promising Q1 2024 performance, indicating continued growth and strategic advancements. The bank highlighted the addition of 10 new high-performing business and commercial banking teams and a strong quarter-over-quarter deposit growth. Additionally, Customers Bancorp achieved $1 billion in production for the fourth consecutive quarter, contributing to the repayment of higher-cost wholesale certificates of deposit.
The bank has also reduced wholesale CDs by 66% and borrowings by over 40% in the past year, showcasing a focus on deposit franchise stability. Customers Bancorp expects loan growth of $1.5 billion to $2 billion over the next three quarters and is aiming for a PPNR run rate of over $100 million by Q4.
The bank is entering Phase 2 of its deposit transformation, which is expected to be even more impactful. Executives have expressed confidence in the bank's differentiated business model and client-centric culture.
These recent developments indicate a positive outlook for Customers Bancorp's future performance.
InvestingPro Insights
Customers Bancorp, Inc. (NYSE:CUBI) has demonstrated a robust financial performance, which is reflected in several key metrics from InvestingPro. With a market capitalization of $1.52 billion, the company's P/E ratio stands at an attractive 6.51, indicating that the stock is trading at a low price relative to near-term earnings growth. This is further substantiated by the P/E ratio for the last twelve months as of Q1 2024, which is closely aligned at 6.49.
InvestingPro Tips highlight that Customers Bancorp is trading at a low earnings multiple, which could be appealing to value investors. Additionally, the company has been profitable over the last twelve months and has provided a strong return over the last five years. However, it is important to note that analysts expect net income to drop this year, and the company does not pay a dividend to shareholders, which may influence investment decisions.
In terms of growth, the company's revenue has increased by 23.39% over the last twelve months as of Q1 2024, with a quarterly growth rate of 10.87% in Q1 2024. This revenue growth could be a positive signal for investors looking for expanding companies. Despite this growth, Customers Bancorp suffers from weak gross profit margins, which could be a point of concern for potential investors.
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