PHILADELPHIA – Customers Bank has put the stops on two pending deals in order to focus on the bank’s more organic growth opportunities, the Philadelphia Business Journal reported Jan. 8.
Wyomissing, Pa.-based Customers Bank, which has a regional office in Providence, announced it would not invest more in the financial services company Religare in India, according to the article. Customers formed a business collaboration with Religare in June 2013 and announced it would invest $51 million in the company, and has already invested $23 million of that amount, but is not going to invest the remainder.
Customers also announced the termination of a merger agreement with a small bank, CMS Bancorp based in White Plaines, N.Y.
While Customers Bancorp Chairman and CEO Jay Sidhu said the decisions were made to re-allocate the bank’s assets toward organic growth opportunities, the Philadelphia Business Journal reported that Customers Chief Financial Officer Robert Wahlman said another factor I the decision was an ongoing investigation by the U.S. Department of Justice alleging the bank has failed to comply with certain provisions of the Equal Credit Opportunity Act, Fair Housing Act and equal credit opportunity regulations in portions of Philadelphia.
Customers Bank moved into the Rhode Island market in March 2013 with the acquisition of the regional business of Flagstar Bank. In addition to Customers Bank regional headquarters in Providence, it has a second regional office in Boston.