Expands Premier National Business Serving
Innovation and Technology Companies
Customers Bancorp (NYSE:CUBI), through its principal subsidiary,
Customers Bank (“Customers”), has acquired a $631 million1 venture
banking loan portfolio from the FDIC at approximately 85% of book
value.1 Separate from the loan pool purchase, Customers has
successfully recruited 30 team members from the group that
originated these loans to service the venture-backed growth
industry from seed-stage through late-stage.
The newly recruited team will give clients access to the capital
to grow from innovation to maturity and leverage a customized,
best-in-class tech platform to support their growth. The team has
long-standing relationships with these clients offering them
premier end-to-end financial services meeting all of their needs.
The addition of these team members creates venture banking client
coverage in Austin, the Bay Area, Boston, Southern California,
Chicago, Denver, Raleigh/Durham, and Washington, D.C.
The new team is expected to be fully onboarded within the next
few weeks.
“We are excited to welcome our new clients and team members to
Customers Bank, a forward-thinking bank with strong risk
management,” said Customers Bancorp Chairman and CEO, Jay Sidhu.
“This team has deep relationships with their clients over the past
two decades. They will enhance our relationship-based banking model
focused on serving all banking needs of our clients,” stated Jay
Sidhu.
The technology and life sciences portfolio will be combined with
Customers’ existing Technology and Venture Capital Banking vertical
based in Boston. The portfolio of capital call loans to venture
capital firms will be combined with Customers’ existing capital
call line portfolio in its Fund Finance group based in New York and
Chicago.
“We are committed to following through on our stated goals of
strengthening our deposit franchise, maintaining robust liquidity,
moderating balance sheet growth, and improving our capital ratios
and margins. This loan pool purchase was extremely attractive to us
considering the historical customer deposit to loan ratio in this
vertical of over 2 to 1. With the recruitment of this highly
experienced team, we are extremely confident in our ability to
build primacy of relationships with these new clients and further
improve our liquidity profile with the addition of low-cost, core
deposits,” said Customers Bank President and CEO Sam Sidhu.
“Consistent with our disciplined approach, we will not take
concentration risk and believe this transaction will be an
excellent addition to further diversify our business model,”
concluded Sam Sidhu.
Additional detail on the transaction will be provided during
Customers Bancorp’s second quarter earnings release and conference
call.
1 Subject to customary closing adjustments
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s
top-performing banking companies with over $21 billion in assets,
making it one of the 100 largest bank holding companies in the US.
Through its primary subsidiary, Customers Bank, commercial and
consumer clients benefit from a full suite of technology-enabled
tailored product experience delivered by best-in-class customer
service. A pioneer in Banking-as-a-Service and digital banking
products, Customers Bank is one of the very few banks that provides
a blockchain-based 24/7/365 digital payment solution. In addition
to traditional lines such as C&I lending, commercial real
estate lending, and multifamily lending, Customers Bank also
provides a number of national corporate banking services to
Specialty Lending clients. Major accolades include:
- #34 out of the 100 largest publicly traded banks in 2023 per
Forbes;
- #64 on Fortune Magazine’s 2022 list of the 100 fastest growing
companies in America;
- #6 in top-performing banks with assets between $10 billion and
$50 billion in 2021 per American Banker; and
- #3 top-performing bank with over $10 billion in assets at
year-end 2021 per S&P Global S&P Global Market
Intelligence.
A member of the Federal Reserve System with deposits insured by
the Federal Deposit Insurance Corporation, Customers Bank is an
equal opportunity lender. Learn more: www.customersbank.com.
“Safe Harbor” Statement
In addition to historical information, this press release may
contain forward-looking information within the meaning of the safe
harbor provisions of the U.S. 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,” “project,” 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: a continuation of the recent turmoil in the banking
industry, responsive measures taken by us and regulatory
authorities to mitigate and manage related risks, regulatory
actions taken that address related issues and the costs and
obligations associated therewith, the impact of COVID-19 and its
variants on the U.S. economy and customer behavior, the impact that
changes in the economy have on the performance of our loan and
lease portfolio, the market value of our investment securities, the
continued success and acceptance of our blockchain payments system,
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 affect 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;
higher inflation and its impacts; and the effects of any changes in
accounting standards or policies. 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, 2022,
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/20230616176508/en/
David Patti, Communications Director 610-451-9452
Customers Bancorp (NYSE:CUBI)
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