WYOMISSING, Pa., Feb. 6, 2013 /PRNewswire/ -- Customers Bank, a strong performing proforma approximately $4 billion asset bank with presence in the New York, New Jersey, Pennsylvania and Washington, DC market today announced its entry into the New England market, with the acquisition of all local New England Commercial Banking business from Michigan based Flagstar Bank.
"We are very excited about entering New England and, through our unique private banking model, serving small and medium size businesses, professionals and their employees in Massachusetts and Rhode Island, through this acquisition of Flagstar Bank offices in Boston and Providence," said Jay Sidhu, Chairman and CEO of Customers Bank. "The best part of this transaction is that we have recruited a team of very experienced New England bankers that are led by veteran Fleet and Sovereign banker Steve Issa. I worked with Steve for many years at Sovereign and am delighted to have him join our top management team as President of this newly created Customers Bank – New England Division. We plan to be very aggressive and competitive in serving the privately held businesses in Eastern Massachusetts and Rhode Island. We will have an exceptional team and have a goal to prudently grow this business to over $1 billion in outstanding over the next few years," Sidhu continued.
As part of the transaction, Customers Bank is acquiring total banking relationships with many high quality New England businesses that have loans outstanding totaling about $151 million dollars and commitments of about $190 million. No classified or problem loans are included in the purchase. The purchase price is 98.7% of loans outstanding.
Customers Bank proforma has about $4 billion in assets. It has two acquisitions of banks pending that it plans to close in the first half of 2013. "We hope to have a very strong High Touch bank supported by experienced Private Bankers extending from Boston to Washington, DC, striving to excel in exceeding the expectations of our customers, all the time. We were happy to announce last week that our loans and deposits grew over 50% last year while net income grew almost 500%," Sidhu concluded.
This transaction is expected to close within the first quarter of 2013.
About Customers Bancorp, Inc. and Customers Bank
Customers Bancorp, Inc. is a bank holding company for Customers Bank based in Wyomissing, Pennsylvania. Customers Bank is a state-chartered, full-service bank headquartered in Phoenixville, Pennsylvania. Customers Bank is a member of the Federal Reserve System and is insured by the Federal Deposit Insurance Corporation ("FDIC"). With assets of approximately $3.2 billion at December 31, 2012, Customers Bank provides a full range of banking services to small and medium-sized businesses, professionals, individuals and families through branch locations in Pennsylvania, New York and New Jersey. Customers Bancorp, Inc. has two pending acquisitions, CMS Bancorp, Inc. in White Plains, NY and Acacia Federal Savings Bank in Falls Church, VA. Customers Bank is focused on serving its targeted markets with a growth strategy that includes strategically placed branches throughout its market area and continually expanding its portfolio of loans to small businesses, multi-family projects, mortgage companies and consumers.
"Safe Harbor" Statement
In addition to historical information, this press release may contain "forward-looking statements" which are made in good faith by Customers Bancorp, Inc., pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. 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 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. 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, as well as any changes in risk factors that may be identified in its quarterly or other reports filed with the SEC. 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.
SOURCE Customers Bancorp, Inc.