CUBI Short Interest Climbs to Year High Before Earnings

Customers Bancorp reports third-quarter results on October 23, and the regional bank enters the day with short sellers at their most committed level in at least a year, even as the stock has gained ground on its peers this week.

Short interest has climbed to 7.7% of the free float, up 17% over the past month. That month-long build is the most concentrated period of short accumulation in the trailing 30-day window, pushing the position to its highest level in recent data. Shares, meanwhile, gained 5.9% over the past week, outpacing a peer median of roughly 3.3%. ASB, SSB and HOPE each added 3% to 3.6% on the week, with UCB the standout at 8.1%. That CUBI ran faster than most of its closest peers, even with a heavier short position building behind it, creates the clearest tension in the setup. Borrow conditions give no signal of stress: availability is wide at roughly 3,639% of short interest, meaning shares to borrow are in abundant supply, and the cost to borrow at 0.47% is low by any measure. The short accumulation reflects a directional view, not a crowded or stressed technical position.

The options market is pointing the other direction. The put/call ratio dropped to 0.32 on October 22, nearly three and a half standard deviations below its 20-day average of 0.41. That is the most call-heavy options positioning of the past year relative to recent norms, a configuration consistent with traders buying into the rally rather than hedging against it. Short sellers are adding while options traders are leaning into upside: the two signals are pointing in opposite directions into the print.

Analysts broadly maintain positive ratings, with JP Morgan and TD Cowen both keeping constructive views after trimming targets in early October to $92 and $91 respectively. Morgan Stanley is the outlier, having downgraded to Underweight in September. The bull case rests on the bank's operating momentum: core EPS rose 28% in the first quarter, the efficiency ratio improved to 49.7%, and tangible book value grew 16% year-on-year to $63.54. Deposits and loans both expanded in Q1, with the cubiX digital deposit platform contributing $4.0 billion. Bears point to a narrower net interest income line, down $13.1 million in the most recent quarter, slowing average loan growth, and a modest uptick in nonperforming loans to $47.8 million. The mean analyst target of $93.55 implies about 19% upside from the current price of $78.73, with the stock trading at 8.4 times trailing earnings and just above book value at 1.03 times.

FDIC call report data, compiled by ORTEX from Federal Deposit Insurance Corporation filings, shows net loans and leases at the bank's insured charters rising for nine consecutive quarters, with total assets expanding for eight straight quarters to $26.5 billion as of the April 2026 period. This dataset has not yet been tested as a leading indicator against the company's reported figures, so no forward read should be drawn from it. What it does confirm is consistent balance-sheet expansion through the most recently available regulatory data.

The print will test whether Customers Bancorp can defend its net interest margin at the 3.23% level analysts have modelled, and whether credit quality holds as nonperforming loans nudge higher, with the stock priced above where either the bears or the most cautious bulls are comfortable.