Latest news with #SamSidhu
Forbes
30-07-2025
- Business
- Forbes
Back To The Basics: How SMBs Can Navigate Tariffs And Uncertainty
Sam Sidhu is the CEO of Customers Bank. Amid a shifting tariff landscape, executives of many of America's largest corporations are becoming more conservative in providing updates to their management outlook, with some lowering their guidance (registration required) or pulling their guidance altogether. If the big players are challenged to plan for the future, the pressure is even greater on small and mid-sized businesses (SMBs). Every environment harbors some risk and uncertainty, and in today's exceptionally fluid dynamic climate, SMBs are particularly vulnerable. Anticipating Higher Costs Of Doing Business The world of SMBs is vast, ranging from sole proprietorships to corporations. Despite the diversity, it's unlikely you'll find an SMB that isn't impacted, directly or indirectly, by trade and tariff policies. Many manufacturers relying on imported components are bracing for higher material costs, with trade uncertainty and the prospect of rising raw material prices being top concerns (download required) in the industry. In March, PBS reported that construction firms, many of which source lumber from Canada, were facing increased costs not only for building materials but also for appliances and fittings that finish a dwelling, potentially driving up home prices. Similarly, many food service companies are anticipating higher prices for imported ingredients that can't be produced domestically. Complicating matters, consumer confidence is on a downward trend. The Conference Board reported that its Consumer Confidence Index, Present Situation Index and Expectations Index all dropped in June, showing consumers have a negative perception of future income, business and market conditions. If consumers significantly rein in spending, SMBs could see reduced demand that further challenges their business prospects. Developing Clarity Through A Near-Term Focus SMBs have considerable variation in their available resources and their potential courses of action for navigating trade and tariff policy. Now is the time to go back to a business plan, take a close look at balance sheets, identify where the largest risks lie and consider concrete steps to mitigate those risks as much as possible. Crafting a 90-day plan can provide SMBs with a sense of direction for the immediate term. A 90-day plan will look different for each business. Relatively larger businesses may have greater capacity to build up inventory to carry them through. For instance, early in the year, we worked with a larger food services company, which freed up cash to increase inventory. The company also reviewed its loan agreements to determine when and where cash could be available. Although the business climate remains uncertain, these actions helped the company have some guardrails in place. Another business we worked with was smaller in size and lacked the capacity to stock up on inventory. It found some stability by exploring its lending options. The goal was to have credit open and available should a need arise. The business was able to assess its creditworthiness and qualifications for Small Business Administration loans, as well as other available loans and lines of credit. Even smaller companies, those with less than about $10 million in revenue, are perhaps most at risk. These may be retail or low-margin businesses with very little room to absorb new costs. Small businesses may have difficulty adjusting or accessing funding, so owners should approach their banks early to evaluate potential capital scenarios. Leveraging Resources And Relationships SMBs are critical elements of the nation's economic engine. Given the magnitude and pace of change, businesses should ensure they're working with their banker to advise on financing options tailored to their unique situation. While it's impossible to manage external forces and know the long-term effects of tariffs, SMBs can control how they approach uncertainty. Businesses should work with their bankers or financial advisors, revisit their goals and develop sound strategies to carry them through ambiguity in the near term. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Globe and Mail
25-07-2025
- Business
- Globe and Mail
Customers Bancorp Announces Executive Leadership Transition
Customers Bancorp, Inc. (NYSE: CUBI) announced today that Jay Sidhu, Chairman and CEO, will be retiring as CEO of the company and transitioning to the role of executive chairman effective January 1, 2026. The organization has appointed Sam Sidhu to succeed Jay Sidhu as CEO. Jay Sidhu will continue as executive chairman of both Customers Bancorp and Customers Bank and will remain on its Board of Directors. Jay Sidhu, 73, founded Customers Bank and Customers Bancorp by investing in a small Chester County, Pa.-based institution with a vision to build a forward-thinking, client-focused bank. Under Jay's leadership of Customers Bancorp, Customers Bank has become a top-performing national organization growing from a distressed bank with approximately $200 million in assets to over $22 billion in assets, without any material acquisitions. Today, the market cap of Customers Bancorp has grown to approximately $2 billion from the original $17 million investment to acquire a bank charter. This was driven by a belief that a forward thinking, innovative and client-focused approach executed by a high quality team can produce hundreds of millions of dollars in market value even in the banking sector. Jay and the team's entrepreneurial spirit and resulting successes have solidified Customers' culture and reputation as an innovative and forward-thinking bank. Prior to founding Customers, Jay was co-founder, chairman and chief executive officer of Sovereign Bank and Sovereign Bancorp Inc. During his 20-year career at Sovereign, he grew the organization from an IPO value of $12 million to the 17th largest banking institution in the U.S., with a market cap approaching $12 billion and achieving about 20% average annual returns for long-term shareholders. 'As I look toward the future and consider retirement, the time has come for me to scale back my day-to-day involvement at Customers Bancorp. I know I can do so with immense pride in what we built and deep gratitude for the team, clients and communities who place their trust in us,' said Jay Sidhu. 'I look forward to continuing to work with the Board to provide strategic guidance while we continue to grow Customers as an innovative and sound bank that is built to last.' 'I have had the pleasure of working with Jay, one of the true visionaries of our industry, for over 30 years,' said Customers Bancorp Lead Independent Director, Dan Rothermel, who was also the Lead Independent Director of Sovereign Bank. 'Six years ago, the board initiated a selection process and chose Sam as a successor to the COO. It was one of the best decisions at the time, and we cannot be happier that he has been appointed CEO. We are thrilled with Sam's leadership style and couldn't be more pleased to have a thoughtful, strategic and dynamic leader step into Jay's shoes. Our best years are still ahead of us.' Sam Sidhu, 41, will retain his titles as president of Customers Bancorp and president and chief executive officer of Customers Bank. He was named COO of Customers Bank in 2020, after serving on its board for eight years. Sam was then promoted to President and Chief Executive Officer of Customers Bank in July 2021. Under his leadership, the Bank has embraced technological advances and expanded the company's product offerings, services and markets; and doubled its assets while transforming its deposit franchise. These efforts have created significant value for shareholders, with the stock price increasing nearly 500% over the past five years. Prior to joining Customers Bank, Sam founded and served as CEO of Megalith Capital Management, a real estate-focused private equity firm. He previously worked in private equity with Providence Equity Partners and investment banking with Goldman Sachs. Sam holds a BA from the Wharton School of Business at the University of Pennsylvania and an MBA from the Harvard Business School. 'It is an honor to receive this vote of confidence, and I look forward to working with our exceptional team and board of directors to constantly strive to delight our clients and produce above average returns for our shareholders,' said Sam Sidhu. 'As Customers Bank turns this important page, one thing remains unchanged: our relentless commitment to the people we serve and the entrepreneurial spirit that has defined us since day one.' Institutional Background Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation's top-performing banking companies with over $22 billion in assets, making it one of the 80 largest bank holding companies in the U.S. Customers Bank's commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include: A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender.
Business Wire
14-07-2025
- Business
- Business Wire
Customers Bancorp, Inc. Hosts Second Quarter 2025 Earnings Webcast Friday, July 25, 2025
WEST READING, Pa.--(BUSINESS WIRE)--Customers Bancorp, Inc. (NYSE: CUBI), the parent company of Customers Bank (collectively, 'Customers'), will host a webcast at 9:00 a.m. Eastern Daylight Time on Friday, July 25, 2025, to report its earnings results for the three months ending June 30, 2025. The webcast will be conducted by Customers Bancorp Chair and CEO Jay Sidhu, Customers Bancorp President and Customers Bank President and CEO Sam Sidhu, Customers Bancorp Chief Financial Officer Philip Watkins, and Customers Bank Chief Financial Officer Mark McCollom. Register online for the webcast. The live audio webcast, presentation slides and earnings press release will be made available at the Customers Bank investors webpage. The second quarter 2025 earnings press release will be issued after the market closes on Thursday, July 24, 2025. The webcast will be archived for viewing on the Customers Bank investors webpage and available beginning approximately two hours after the conclusion of the live event. Institutional Background Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation's top-performing banking companies with over $22 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank's commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include: No. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets No. 72 out of the 100 largest publicly traded banks in 2025 Forbes Best Banks list 2024 Inc. Magazine Best in Business List in Financial Services Category Net Promoter Score of 73 compared to industry average of 41 A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: .
Business Wire
14-05-2025
- Business
- Business Wire
Customers Bancorp, Inc. Announces Full Redemption of Series E Preferred Stock
WEST READING, Pa.--(BUSINESS WIRE)--Customers Bancorp, Inc. (NYSE: CUBI) is redeeming, in whole, all 2,300,000 shares ($57.5 million) of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E (ticker 'CUBIPrE') (the 'Series E Preferred Stock') which had a current declared dividend rate of 9.70%. The redemption date for the Series E Preferred Stock Shares is June 16, 2025 (the 'Series E Redemption Date'). The cash redemption price, payable on the Series E Redemption Date, for each share of Series E Preferred Stock, will equal $25. Because the redemption date is also a dividend payment date for the Series E Preferred Stock, the redemption price does not include declared and unpaid dividends. Holders of record on May 31, 2025, as declared by Customers Bancorp's board of directors on April 23, 2025, will separately receive the regular quarterly dividend of $0.61304235 per share due on the Series E Redemption Date. The redemption announced today is consistent with Customers Bancorp's ongoing efforts to enhance the efficiency of its funding and capital structure. The redemption is expected to be accretive to earnings per share at an annualized rate of 12 cents per share. Customers Bancorp's book value per share as of March 31, 2025 was $54.85 and the May 13, 2025 stock price at close was $54.50. 'Our strong capital position and robust liquidity levels have positioned us to redeem this higher cost preferred stock to further optimize our capitalization and improve long-term profitability. This action, in conjunction with our deposit remix efforts, are significant steps in our on-going commitment to deliver shareholder value,' said Sam Sidhu, President of Customers Bancorp, Inc. and CEO of Customers Bank. After giving effect to the redemption, no shares of the Series E Preferred Stock will remain outstanding, and dividends will no longer accrue on such securities. Computershare Trust Company, N.A. ('Computershare') is the paying agent for the Series E Shares. The paying agent's address is Computershare Trust Company, Attn: Corporate Actions, 150 Royall Street, Canton, MA 02021. Questions relating to the notice of redemption and related materials should be directed to Computershare via telephone at 1-800-368-5948. For further information on the Series E Preferred Stock, please see the Statement with Respect to Shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, at the following web address: Institutional Background Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation's top-performing banking companies with over $22 billion in assets making it one of the 80 largest bank holding companies in the U.S. Customers Bank's commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include: No. 1 on American Banker 2024 list of top-performing banks with $10B to $50B in assets No. 72 out of the 100 largest publicly traded banks in 2025 Forbes Best Banks list 2024 Inc. Magazine Best in Business List in Financial Services Category Net Promoter Score of 73 compared to industry average of 41 A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender.
Yahoo
26-04-2025
- Business
- Yahoo
Customers Bancorp Inc (CUBI) Q1 2025 Earnings Call Highlights: Strong Core Performance and ...
Revenue Growth: 15% annual growth rate over the last five years. Core Earnings Per Share (EPS): $1.54 for Q1 2025. Net Income: $50 million for Q1 2025. Net Interest Income: $167.4 million for Q1 2025. Net Interest Margin: Increased to 3.13%, up 2 basis points sequentially. Loan Growth: 12% annualized pace in Q1 2025. Deposit Growth: Total deposits increased to just under $19 billion. Average Cost of Deposits: Reduced by 25 basis points in Q1 2025. Non-Interest Bearing Deposits: $5.6 billion, nearly 30% of total deposits. Core Return on Common Equity (ROCE): 11.7% for Q1 2025. Return on Assets (ROA): 97 basis points for Q1 2025. Core Efficiency Ratio: Improved to 52.7%. Tangible Book Value Per Share: $54.74, up more than $5.50 year over year. Common Equity Tier 1 (CET1) Ratio: 11.7%. Total Capital Ratio (TCO): Increased to 7.7%. Non-Performing Assets (NPA) Ratio: 26 basis points. Reserves to Non-Performing Loans (NPLs): 324%. Warning! GuruFocus has detected 3 Warning Sign with CUBI. Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Customers Bancorp Inc (NYSE:CUBI) reported strong core performance across its franchise, with significant low-cost granular deposit growth and a 25 basis point reduction in average deposit costs. The company achieved a 12% annualized loan growth rate, driven by selective onboarding of credits and leveraging long-standing relationships. Net interest margin increased by 2 basis points due to reduced interest expenses, marking the second consecutive quarter of margin expansion. Operational excellence initiatives surpassed targets, realizing $30 million in annualized impact, exceeding the original $20 million target. Capital and liquidity metrics remain robust, with CET1 at 11.7% and a TCO ratio of 7.7%, providing substantial flexibility for organic growth. The macroeconomic landscape remains complex and volatile, posing challenges for the banking industry. Despite strong performance, there is uncertainty in the rate trajectory, which could impact net interest income expansion. The company undertook a balance sheet optimization process, indicating potential concerns about credit-sensitive securities. There is ongoing pressure to maintain low-cost deposits amidst market volatility and competition. The company faces challenges in sustaining its high growth rates in deposits and loans, given the evolving economic conditions. Q: In terms of the new banking teams, are the deposits coming over still 25% non-interest bearing, and is that the expectation going forward? A: Sam Sidhu, President and CEO of Customers Bank, confirmed that the deposits from new teams are generally closer to 30% non-interest bearing. He noted a significant increase in non-interest bearing deposits from commercial teams, despite some offset from lower cubiX balances. Q: Regarding the restructuring this quarter, does this conclude any restructuring of credit-sensitive instruments within the investment securities book? A: Phil Watkins, CFO, stated that no further restructuring is expected. The recent restructuring involved reducing corporate and asset-backed securities, including CLOs and non-agency CMBS, with remaining securities being predominantly investment grade. Q: What is the capacity for growth in commercial real estate lending, and is there sufficient capital room? A: Sam Sidhu confirmed that there is significant capacity for growth in commercial real estate lending, with current levels well below peer averages. He emphasized the self-funded nature of real estate deposits, achieving over 4% net spread. Q: Can you provide an update on the treasury management products and technology expenses? A: Sam Sidhu mentioned that treasury fee income is on a good run rate, with recent increases due to the rollout of the cubiX platform. Technology expenses related to these fees are largely behind, indicating a positive ROI. Q: What is the outlook for cubiX deposits, and how do you see the opportunity for growth? A: Sam Sidhu explained that cubiX deposits are payments deposits held entirely in cash, with no immediate plans to expand them. The focus remains on supporting clients' needs, with the bank holding about 1% of the liquidity in the digital asset industry. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
