WEST READING, Pa.–(BUSINESS WIRE)–$CUBI–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.
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.
Jay Sidhu, Executive Chairman
Sam Sidhu, Vice Chairman & Chief Operating Officer