2023-05-02 06:45:00 ET
Between the banking crisis in March and the high-interest-rate environment, many banks are seeing low-cost deposits head for the exits, and are having to replace them with higher-cost deposits and funding sources. And that's hurting their margins.
But the tech-forward lender Customers Bancorp (NYSE: CUBI) , based in eastern Pennsylvania, saw the exact opposite in the first quarter of the year, adding a significant amount of new noninterest-bearing (NIB) deposits -- meaning those the bank pays no interest on -- which helped its net interest margin (NIM).
In short, Customers benefited from the banking crisis. Now the big question is how durable these deposits will be. Let's take a look.
For further details see:
Customers Bancorp Benefitted From the Banking Crisis. Can It Sustain the Momentum?