Customers Bancorp Listed in Kiplinger’s 6 Best Financial Stocks to Buy in 2021
December 29 2020 - 4:05PM
Business Wire
Customers Bancorp (NYSE:CUBI) was recently identified as one of
the “best financial stocks to buy” in 2021 by Kiplinger. The
publication looked at the financial sector, one of the hardest-hit
segments of the market, to identify the most promising investment
opportunities following the Federal Reserve’s move to give big
banks the approval to resume share buybacks in the first quarter of
2021, after a six-month ban.
While most Wall Street analysts and investors have focused on
the divestiture of BankMobile and the formation of a new company BM
Technologies Inc., which will trade on the New York Stock Exchange
under the symbol BMTX, Maxim Group’s Michael Diana focused on the
potential upside for Customers Bancorp.
“While investors have increasingly focused on the divestiture of
BankMobile and the creation of an entirely new company, there
remains immense growth and expansion opportunities for our core
business,” stated Sam Sidhu, Vice Chairman and Chief Operating
Officer of Customers Bank. “In a span of ten years, Customers Bank
has grown from a $250 million bank into a mobile-first
technology-driven financial institution with assets of
approximately $18.8 billion.”
In 2018, Customers Bank launched a “digital bank within the
bank” targeting high net worth consumers and generated over $1
billion of deposits in approximately 19 months. Near the end of
2020, the digital bank announced a national collaboration with
MaxMyInterest to provide consumers with a platform to optimize
their cash portfolio – maximizing interest while ensuring FDIC
insurance protection. That business unit is now growing a strong
nationwide commercial banking line. Throughout the pandemic, and
when many industry participants viewed fintechs as competitors to
the banking industry, Customers Bank partnered with leading
fintechs to better serve the small business industry earning the
bank the fifth-highest ranking based on the number of CARES Act
Paycheck Protection Program loans approved.
Customers Bank’s national SBA/Government Guaranteed Lending
ranked among the top 100 in the nation for the federal fiscal year
ending September 30, 2020, and is expected to increase its loan
volume in 2021 with an emphasis on small SBA 7(a) lending. The bank
is evaluating changes to the PPP Loan initiative just signed into
law by President Trump and developing plans to collaborate with a
fintech for another round of PPP Loans and the opening of the PPP
Second Draw. In its October earnings report, the bank announced it
is evaluating the expansion of its community banking into
contiguous and select regional markets.
Corporate Overview
Customers Bancorp, Inc. is a bank holding company located in
West Reading, Pennsylvania engaged in banking and related
businesses through its bank subsidiary, Customers Bank, a
full-service bank with $18.8 billion in assets as of September 30,
2020. A member of the Federal Reserve System with deposits insured
by the Federal Deposit Insurance Corporation, Customers Bank is an
equal opportunity lender that provides a range of banking and
lending services to small and medium-sized businesses,
professionals, individuals and families. Services and products are
available wherever permitted by law through digital-first apps,
online portals, and a network of offices and branches. Customers
Bancorp, Inc.’s voting common shares are listed on the New York
Stock Exchange under the symbol CUBI.
“Safe Harbor” Statement
In our public communications we may include references to
statements made or materials published by third parties, including
securities analysts. Such information is included for informational
purposes only and its inclusion is not intended to represent
Customers Bancorp’s endorsement or adoption of such statements or
materials. In addition to historical information, this press
release may contain “forward-looking statements” within the meaning
of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include statements with respect to Customers Bancorp, Inc.’s
strategies, goals, beliefs, expectations, estimates, intentions,
capital raising efforts, financial condition and results of
operations, future performance and business. Statements preceded
by, followed by, or that include the words “may,” “could,”
“should,” “pro forma,” “looking forward,” “would,” “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar
expressions generally indicate a forward-looking statement. These
forward-looking statements involve risks and uncertainties that are
subject to change based on various important factors (some of
which, in whole or in part, are beyond Customers Bancorp, Inc.’s
control). Numerous competitive, economic, regulatory, legal and
technological events and factors, among others, could cause
Customers Bancorp, Inc.’s financial performance to differ
materially from the goals, plans, objectives, intentions and
expectations expressed in such forward-looking statements,
including: the adverse impact on the U.S. economy, including the
markets in which we operate, of the coronavirus outbreak, and the
impact of a slowing U.S. economy and increased unemployment on the
performance of our loan and lease portfolio, the market value of
our investment securities, the demand for our products and services
and the availability of sources of funding; the effects of actions
by the federal government, including the Board of Governors of the
Federal Reserve System and other government agencies, that effect
market interest rates and the money supply; actions that we and our
customers take in response to these developments and the effects
such actions have on our operations, products, services and
customer relationships; the effects of changes in accounting
standards or policies, including Accounting Standards Update
("ASU") 2016-13, Financial Instruments—Credit Losses ("CECL"); and,
our ability to divest BankMobile on terms and conditions acceptable
to us, in the timeframe we currently intend, and the possible
effects on our business and results of operations of a divestiture
of BankMobile or if we are unable to divest BankMobile for an
extended period of time. Customers Bancorp, Inc. cautions that the
foregoing factors are not exclusive, and neither such factors nor
any such forward-looking statement takes into account the impact of
any future events. All forward-looking statements and information
set forth herein are based on management’s current beliefs and
assumptions as of the date hereof and speak only as of the date
they are made. For a more complete discussion of the assumptions,
risks and uncertainties related to our business, you are encouraged
to review Customers Bancorp, Inc.’s filings with the Securities and
Exchange Commission, including its most recent annual report on
Form 10-K for the year ended December 31, 2019, subsequently filed
quarterly reports on Form 10-Q and current reports on Form 8-K,
including any amendments thereto, that update or provide
information in addition to the information included in the Form
10-K and Form 10-Q filings, if any. Customers Bancorp, Inc. does
not undertake to update any forward-looking statement whether
written or oral, that may be made from time to time by Customers
Bancorp, Inc. or by or on behalf of Customers Bank, except as may
be required under applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201229005414/en/
Jay Sidhu, Executive Chairman 610-935-8693
Sam Sidhu, Vice Chairman & Chief Operating Officer
610-780-6021
Customers Bancorp (NYSE:CUBI)
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