Customers increases public offering amount to $90M

CUSTOMERS BANCORP, parent of Customers Bank, sees more opportunities to increase business, so it has increased the value of the shares it is selling on the market to $90 million.
Posted 5/16/13

WYOMISSING, Pa. – Customers Bancorp Inc., parent company of Customers Bank, has increased its previously announced offering of $75 million of common stock to $90 million, the bank announced Wednesday.

The announced reason for the public offering is “for organic growth, working capital and other general corporate purposes.”

“We are a rapidly growing bank, as indicated by our expansion into Providence and Boston, and we expect to continue that growth in the New England area, along with other areas,” Customers Bancorp Chief Financial Officer James Hogan told the Providence Business News Thursday. “Our footprint is from Boston to Washington, D.C.”

Customers Bank moved into the Rhode Island market with the March 29 acquisition of the regional business of Flagstar Bank. Customers Bank has its regional headquarters in Providence with a second regional office in Boston.

Customers Bancorp’s acquisition of Flagstar’s regional business included nine employees in Providence and seven in Boston, headed by the bank’s New England Market President Steve Issa, who was previously president of Flagstar’s New England market. Issa was the top Rhode Island executive for Sovereign Bank before leaving the job in 2010.

The acquisition included about $150 million in commercial banking business. The clients in Customers Bank’s New England commercial loan portfolio are about evenly divided between Providence and Boston, Issa has told Providence Business News.

The commercial customers include manufacturers, professional firms, service companies, distributors and some real estate developers, Issa said.

“We expect them to continue to grow and make loans and attract new customers,” Hogan said of Customers’ New England team. “When we pick up a loan customer, we would like to serve all of their banking needs, including loans, deposits and other banking services.

“We have high hopes they will be very successful in growing our business up there,” said Hogan.

The public offering of 5,373,134 shares of voting common stock is being priced at $16.75 per share.

The shares of voting common stock are scheduled to begin trading on the Nasdaq Global Select Market today under the symbol “CUBI.”

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