Customers Bancorp 10-Q Report – Key Insights and Stock Movement

By Philip Seaworth • Saturday, May 09 16:18 • Permanent Link

Customers Bancorp recently released its 10-Q report for the quarter ended March 31, 2026. Customers Bancorp, Inc. is the bank holding company for Customers Bank, which offers deposit accounts, lending products, digital banking, payments, treasury services, and cash management. Its lending portfolio includes commercial and industrial, commercial real estate, multifamily, residential mortgage, SBA, mortgage finance, specialty finance, and equipment financing, along with Banking-as-a-Service and TassatPay.

In Item 2, management said the quarter was shaped by a still-uncertain rate and macro backdrop, with the Federal Reserve leaving the target federal funds range unchanged at its January, March, and April 2026 meetings. The company said it was monitoring higher inflation, tariff risks, supply-chain disruptions, and the effects of the wars in Ukraine and the Middle East, while also noting continued stress in the banking system and commercial real estate markets.

Customers said it kept higher liquidity, reserves, and capital ratios in place and continued shifting its loan mix toward lower-credit-risk commercial loans with floating or adjustable rates during the higher-rate period. As rates began to decline, the bank said it reduced asset sensitivity through derivative hedging and investment-securities rebalancing.

At March 31, 2026, Customers reported about $6.3 billion of immediate available liquidity from the Federal Reserve Bank and Federal Home Loan Bank, plus $4.8 billion of cash on hand. It said estimated FDIC-insured deposits were about 57% of total deposits, rising to 66% when collateralized and affiliate deposits were included.

The company said its allowance for credit losses increased from December 31, 2025, mainly because of slightly weaker macroeconomic forecasts and higher loan balances held for investment. Provision for credit losses on loans and leases was $18.6 million for the quarter, and the ending allowance for credit losses was $170.4 million. As a result of these announcements, the company's shares have moved -0.83% on the market, and are now trading at a price of $77.26. If you want to know more, read the company's complete 10-Q report here.

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