Navigating Volatility: How Bancorp and Customers Bancorp Are Shaping 2025's Banking Landscape

A detailed financial ledger highlighting loan growth and deposit strategies, symbolizing the resilience of regional banks in 2025.

The first quarter of 2025 has brought both challenges and strategic wins for regional banks, as highlighted by recent earnings reports from The Bancorp (NASDAQ: TBBK) and Customers Bancorp (NYSE: CUBI). While macroeconomic uncertainties loom, these institutions are demonstrating how disciplined balance sheet management, deposit optimization, and niche lending can drive resilience.

The Bancorp: Fintech Growth and Strategic Niche Lending

The Bancorp’s Q1 results underscore its focus on diversified revenue streams and collateralized lending. Net income rose to $57.2 million, or $1.19 per share, a 12% year-over-year increase in EPS, driven by $150 million in stock buybacks and a 17% surge in total loans to $6.38 billion.

Key highlights include:
- Real Estate Bridge Loans (REBL) grew to $2.21 billion, backed by conservative underwriting (70% loan-to-value ratio).
- Fintech Solutions reported a 18% year-over-year rise in gross dollar volume (GDV) to $44.65 billion, with fees increasing 13%.

CEO Damian Kozlowski emphasized the "momentum" in fintech and niche lending, noting the company’s $3.09 billion in government-backed liquidity as a shield against market volatility. The Bancorp’s common equity Tier 1 ratio of 13.94% also reflects robust capital buffers, exceeding regulatory “well-capitalized” thresholds.

Customers Bancorp: Deposit Cost Reductions Mask Short-Term Pain

Customers Bancorp’s earnings were marked by a 59.1% drop in GAAP net income to $9.5 million due to a $39.9 million post-tax loss from repositioning its securities portfolio. Yet, core earnings rose 13.2% to $1.54 per share, highlighting strategic progress.

The company’s deposit remix strategy delivered a 25-basis-point decline in deposit costs to 2.82%, enabling a 3.13% net interest margin—up 2 basis points. Total deposits grew $86.5 million to $18.9 billion, with non-interest-bearing deposits accounting for 29.3% of the total.

CEO Jay Sidhu framed the securities impairment as a “strategic trade-off” to enhance liquidity and reduce interest rate risk. The bank’s $8.7 billion in available liquidity (covering 155% of uninsured deposits) and CET1 ratio of 11.7% reinforce its defensive positioning.

The Strategic Playbook: Deposit Focus and Niche Lending

Both banks are prioritizing deposit franchise strength and low-risk lending to navigate macroeconomic headwinds.

1. Deposit Cost Reductions as a Competitive Weapon
2. Customers Bancorp’s deposit teams added $2.1 billion in deposits since 2023, reducing reliance on high-cost funding.

3. The Bancorp’s $8.31 billion in average deposits (up 28% year-over-year) fund its loan growth and fintech expansion.

4. Niche Lending as a Growth Engine

5. The Bancorp’s REBL and securities-backed loans target affordable housing and high-collateral markets, with net charge-offs at just 0.63% of average loans.
6. Customers Bancorp’s specialized lending vertical grew 18.9% year-over-year, focusing on commercial and industrial clients with strong cash flows.

Conclusion: Focus on Core Metrics and Liquidity

Investors should prioritize banks that emphasize deposit optimization, high-margin niche lending, and robust liquidity over short-term GAAP volatility.

• The Bancorp’s fintech segment (GDV up 18%, fees up 13%) signals a scalable revenue model, while its 70% loan-to-value ratios mitigate credit risk.
• Customers Bancorp’s 29.3% non-interest-bearing deposits and $8.7 billion in liquidity position it to outperform peers in stressed markets.

For 2025, look for banks that:
- Diversify revenue (e.g., The Bancorp’s fintech fees).
- Manage deposit costs through mix shifts and commercial relationships.
- Avoid risky exposures (e.g., Customers’ minimal office CRE exposure).

The lesson? In uncertain times, balance sheet discipline and strategic focus—not just headline earnings—determine long-term resilience.