Customers Bancorp (CUBI) Tops Q1 EPS by 7c; Offers FY18 EPS Guidance Above Consensus

Customers Bancorp (NYSE: CUBI) reported Q1 EPS of $0.64, $0.07 better than the analyst estimate of $0.57.

Outlook

“Last quarter, Customers decided to provide more guidance for 2018 to provide greater transparency given the expected divestiture of BankMobile and impact of tax reform," stated Mr. Sidhu.

Customers expects a more moderate pace of asset growth through the remainder of 2018, with an emphasis on shifting from lower yielding to higher yielding assets. The Community Business Banking segment is expected to grow total assets approximately 10% to 15% in 2018. The full year net interest margin will likely be at the low end of the targeted 2.70% to 2.80% range. The efficiency ratio for the Community Business Banking segment in 2018 is expected to be in the mid to high 40%s with fee income of approximately $35 million to $40 million. We estimate an effective consolidated tax rate of approximately 24% for 2018. Customers expects to earn diluted EPS of $2.75 to $3.00 from the Community Business Banking segment, our core franchise which will remain as our continuing business after the spin-off and merger have been completed.

GUIDANCE:

Customers Bancorp sees FY2018 EPS of $2.75-$3.00, versus the consensus of $2.69.

For earnings history and earnings-related data on Customers Bancorp (CUBI) click here.

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