Customers Bancorp Q2 net income surges 486% from Q1

Overview

• Customers Bancorp Q2 net income rises 486.4% from previous quarter

• Net interest margin improves due to higher interest income from loan growth

Outlook

• Company aims to strengthen deposit franchise and improve profitability

• Customers Bancorp sees strong liquidity position with $8.6 bln available

• Company has minimal exposure to high-risk commercial real estate office sector

• Customers Bancorp plans to continue growing franchise value

Result Drivers

• LOAN GROWTH - Strong commercial loan growth, particularly in specialized lending and mortgage finance, drove higher interest income, improving net interest margin

• DEPOSIT STRATEGY - Increase in commercial deposit accounts and reduction in cost of deposits contributed to franchise value and profitability

• ASSET QUALITY - Maintained strong asset quality with a low non-performing asset ratio and robust credit loss reserves

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Customers Bancorp Inc is $70.00, about 10.6% above its July 23 closing price of $62.55

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

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