KBRA affirms the senior unsecured debt rating of BBB, the subordinated debt rating of BBB-, and the short-term debt rating of K3 for West Reading, Pennsylvania-based Customers Bancorp Inc. KBRA also affirms the deposit and senior unsecured debt ratings of BBB+, the subordinated debt rating of BBB, and the short-term deposit and debt ratings of K2 for the subsidiary, Customers Bank ("the bank"). The Outlook for all long-term ratings is revised to Positive from Stable.
Customers Bancorp is the $24 billion asset BHC for Customers Bank, which operates seven full-service bank branches plus several limited purpose offices in various regions of the U.S. Strategically, CUBI remains focused on diversifying and strengthening the bank’s deposit base to lessen exposure to large single name depositors as well as other potentially volatile sources of funds, maintaining existing capital levels, driving relationship-based loans and deposits and building fee income sources.
The bank’s loan portfolio remains positioned towards commercial lending, including several specialized loan verticals, such as commercial lender and residential warehouse finance and tech and VC finance, in addition to traditional C&I lending. The bank also engages in syndicated, equipment, and consumer finance. Multifamily loans constitute the largest CRE segment and are primarily collateralized by properties in the NYC area, including rent-controlled units. The deposit base is commercially oriented, anchored by various deposit channels including cubiX, the bank’s dedicated payments platform that serves clients that operate in the digital assets’ ecosystem.
Management signed an agreement with the FRB in 2024 to address deficiencies in policies and practices tied to digital asset services and has made substantial investments to rectify these weaknesses. In September 2025, the company raised $165.9 million in common equity via a secondary offering; use of proceeds includes the planned retirement of remaining preferred stock of $85 million in 4Q25. Earlier in 2025, $57.5 million in preferred shares were retired.