Customers Bancorp, Inc. Subordinated Notes to Convert from Fixed to Floating Rate
March 04 2024 - 8:30AM
Business Wire
Customers Bancorp, Inc. (NYSE:CUBI) announced that subordinated
notes issued in 2014 will, on June 26, 2024, convert from an annual
fixed rate of 6.125% to a floating rate.
On June 24, 2014, Customers Bancorp, Inc. (“Customers”) and its
wholly-owned subsidiary, Customers Bank, (the “Bank”) entered into
subscription agreements with accredited investors under which the
Bank issued $110.0 million in aggregate principal amount of
fixed-to-floating rate subordinated notes due 2029 (the
“Subordinated Notes”).
Pursuant to the terms of the original Subordinated Note
Certificate, from June 26, 2024, until maturity, the Subordinated
Notes were to bear an annual interest rate equal to the three-month
LIBOR plus 344.3 basis points. Pursuant to the Adjustable Interest
Rate (LIBOR) Act enacted by Congress on March 15, 2022, the
three-month term SOFR plus a tenor spread adjustment of 26.161
basis points will replace the three-month LIBOR rate as the
benchmark reference rate used to calculate the annual interest rate
for the Subordinated Notes on and after June 26, 2024. After June
26, 2024 and until maturity or redemption, interest on the
Subordinated Notes will be payable quarterly in arrears on each
March 26, June 26, September 26 and December 26 (or, if such date
is not a Business Day (as defined in the Subordinated Note
Certificate), on the next succeeding Business Day).
The Bank has the ability to call the Subordinated Notes, in
whole, or in part, at a redemption price equal to 100% of the
principal balance at certain times on or after June 26, 2024.
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 80 largest bank holding companies in the US.
Customers Bank’s commercial and consumer clients benefit from a
full suite of technology-enabled tailored product experiences
delivered by best-in-class customer service. 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:
- #5 in top-performing banks with assets between $10 billion and
$50 billion in 2022 per American Banker;
- #34 out of the 100 largest publicly traded banks in 2023 per
Forbes; and
- #64 on Fortune Magazine’s 2022 list of the 100 fastest growing
companies in America; and
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.
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David Patti, Communications Director 610-451-9452
Customers Bancorp (NYSE:CUBI)
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