Customers Bank is recording continuous growth in its commercial lending operations. In the third quarter, loan volume rose by 14 percent year-on-year to reach a record 18.5 billion dollars. The primary drivers of this development were fund finance, healthcare and commercial real estate in particular. Speaking to the Commercial Observer, Chief Executive Officer Sam Sidhu emphasised that the institution is structurally diversified and maintains strict discipline regarding loan structures and terms.
Given the persistently high interest rate environment, the institution is acting particularly selectively in the commercial property segment, according to Sidhu. Borrower debt sustainability is monitored closely, while the focus remains on experienced sponsors. The objective is not merely to provide selective financing to clients, but to cover the entire banking relationship encompassing lending, deposits and cash management.
Geographic expansion and significant time savings in financing
Geographically, the bank is focusing increasingly on the US West Coast. Alongside its traditional roots in the New York property market, new locations in Irvine, Sherman Oaks, Sacramento, Reno and Las Vegas are opening up dynamic growth markets. Sidhu highlighted twelve teams recruited during the current year, whose deal pipelines are set to provide noticeable momentum heading into 2027.
The institution also drew attention with the rollout of an AI-supported credit underwriting system. Using several autonomous software agents, it succeeded in reducing the turnaround time to closing for selected commercial property loans from the industry-standard 30 to 60 days down to seven days. Following a successful pilot phase, the system was scaled with expanded capabilities in the third quarter. According to Sidhu, the increased closing speed provides sponsors with crucial planning certainty. Credit analysts are relieved of administrative handoffs, while the final decision and verification of every credit report remain without exception in human hands.
Institutional deposits as the foundation for lending
Lending growth is flanked by the proprietary cash management platform cubiX. Banking teams hired since 2023 now manage approximately 4.3 billion dollars in deposits, of which around 415 million dollars was added in the third quarter alone. The number of cubiX accounts increased by 19 percent during the quarter. The real estate and mortgage finance segments now account for more than 30 percent of platform balances.
- —Direct linkage of financing, deposits and payments via central points of contact
- —Round-the-clock real-time payment settlement alongside programmable sub-accounts for property transactions
- —Improvement of the institution-wide efficiency ratio by approximately 340 basis points in the reporting quarter
- —Increase in revenue per employee of 13 percent year-on-year
Through direct integration into the operational liquidity of developers and investors, the bank can track cash flows precisely and structure loans more rapidly. Improved service leads to higher deposits, which in turn reinforce lending capacity and deepen client relationships, creating a cycle that Sidhu notes forms the foundation for further investment in personnel and technology.
