Customers Bancorp

Customers Bancorp, Inc. is a publicly traded American bank holding company headquartered in West Reading, Pennsylvania. Its principal operating subsidiary is Customers Bank, a commercial bank serving businesses, institutions, professionals and consumers in several U.S. markets. The group has developed from a small Pennsylvania community-bank franchise into a technology-oriented regional banking organization with a focus on commercial lending, specialty finance, payments and digital banking. The operating-bank lineage began in June 1997, when Ken Mumma founded New Century Bank in Phoenixville, Pennsylvania. By the late 2000s, the bank had five Pennsylvania branches but was under significant pressure from real-estate-related credit exposure during the Great Recession. Jay Sidhu joined its board and executive committee in May 2009 and became chairman and chief executive officer the following month after helping arrange a $13.6 million capital raise. Under Sidhu's leadership, the bank pursued recapitalization, acquisitions, geographic expansion and a new identity. New Century Bank was renamed Customers 1st Bank in April 2010. Following a trademark dispute involving the Customers 1st name, the institution adopted the Customers USA name. During the same period, it acquired the deposits and assets of USA Bank and announced transactions involving Berkshire Bancorp and Berkshire Bank, as well as ISN Bank in Cherry Hill, New Jersey. These steps broadened the institution's footprint and helped establish the platform that later operated as Customers Bank. The holding-company structure was approved by shareholders in September 2011. Customers Bancorp subsequently pursued a public offering, after an earlier filing and proposed $115 million offering encountered valuation concerns from investment bankers. The company raised $100 million from investors and completed its NASDAQ initial public offering on May 17, 2013, selling approximately 55 percent of its shares and listing under the symbol CUBI. Customers Bancorp has also pursued financial-technology initiatives. In 2015, Jay Sidhu and his daughter Luvleen co-founded BankMobile as an online-bank venture incubated within Customers Bank. BankMobile reached 100,000 customers within its first year, and Customers Bancorp agreed in 2016 to acquire Higher One Holdings for $42 million, with the intention of combining the acquisition with BankMobile. In 2019, T-Mobile announced a partnership with BankMobile to offer a banking service to its wireless customers. The group moved its headquarters from Wyomissing to West Reading in 2019. In 2021, Sam Sidhu became president and chief executive officer of Customers Bank as Richard Ehst prepared to retire. Sam had previously served as a board member, vice chair, chief operating officer and head of corporate development. The company described its forward strategy as fintech-oriented banking, reflecting an effort to combine regulated-bank infrastructure with digital products, payments and specialized financial services. Customers Bancorp operates in a competitive and regulated U.S. banking environment. Its business has included commercial banking, business lending, specialty finance, digital banking and payment infrastructure. The group has also served companies in the digital-asset sector through Customers Bank Instant Token, or CBIT, a blockchain-based real-time payments platform. That digital-asset exposure became a significant regulatory issue in 2024, when the Federal Reserve Bank of Philadelphia announced an enforcement action citing deficiencies in risk management and anti-money-laundering controls, including concerns connected with the bank's digital-asset strategy. Despite the regulatory scrutiny, the company remained active, and American Banker identified it as the best-performing bank in the $10 billion-to-$50 billion asset category based on year-end 2023 results.

Customers Bancorp's history is rooted in New Century Bank, founded by Ken Mumma in Phoenixville, Pennsylvania, in June 1997. The predecessor bank developed a local branch network and by 2009 had approximately $265 million in assets and $229 million in deposits. Its lending portfolio was heavily concentrated in real estate, and a substantial portion of those loans was considered impaired during the Great Recession. Jay Sidhu joined New Century Bank's board and executive committee in May 2009 after his noncompete agreement with Sovereign Bancorp ended. He became chairman and chief executive officer the next month and helped raise $13.6 million in capital. The bank began a restructuring and expansion program, changing its name to Customers 1st Bank in April 2010. A federal court subsequently found that this name infringed another bank's trademark, prompting a further rebrand to Customers USA. The institution pursued acquisitions during 2010. It acquired the deposits and assets of USA Bank, headquartered in Port Chester, New York, and announced transactions involving Berkshire Bancorp and its Berkshire Bank subsidiary, as well as ISN Bank in Cherry Hill, New Jersey. These transactions supported the transition from a small Pennsylvania bank toward a broader regional platform. In September 2011, shareholders approved the formation of Customers Bancorp, Inc. as a bank holding company. The company initially contemplated a $115 million initial public offering, but investment bankers advised that market conditions might not support the desired valuation. Customers Bancorp instead raised $100 million from investors and completed its NASDAQ offering on May 17, 2013, listing as CUBI. The company later expanded beyond conventional branch banking. In 2015, Jay Sidhu and Luvleen Sidhu co-founded BankMobile, an online bank incubated under Customers Bank. The digital venture attracted 100,000 customers during its first year. Customers Bancorp agreed in 2016 to purchase Higher One Holdings of New Haven, Connecticut, for $42 million and planned to combine the acquisition with BankMobile. In April 2019, T-Mobile announced a partnership with BankMobile to provide a banking service for T-Mobile wireless customers. Customers Bank moved its headquarters from Wyomissing to West Reading in 2019. In 2021, Sam Sidhu succeeded Richard Ehst as president and chief executive officer of Customers Bank. Sam had previously held board, vice-chair, chief operating officer and corporate-development responsibilities. The company also articulated a fintech-forward strategy, emphasizing digital delivery and technology-enabled banking. Customers Bancorp's more recent operating model has included commercial banking, specialty lending, digital banking and payment services. Its Customers Bank Instant Token platform, known as CBIT, uses blockchain technology to support real-time payments and has been used by digital-asset firms. This business became the subject of regulatory scrutiny in 2024. On August 8, 2024, the Federal Reserve Bank of Philadelphia announced an enforcement action involving Customers Bancorp and Customers Bank, citing significant weaknesses in risk management and anti-money-laundering controls and identifying the digital-asset strategy as a particular concern. The company nevertheless continued operating, and American Banker recognized it in 2024 as the best-performing bank in the $10 billion-to-$50 billion asset category based on 2023 year-end data.

• 2024

  Federal Reserve enforcement action

  [1]Customers Banken.wikipedia.org

  The Federal Reserve Bank of Philadelphia announced an enforcement action concerning risk-management and anti-money-laundering deficiencies.

• 2021

  Sam Sidhu becomes Customers Bank chief executive

  [1]Customers Banken.wikipedia.org

  Sam Sidhu succeeded Richard Ehst as president and chief executive officer of Customers Bank.

• 2019

  Headquarters move and T-Mobile partnership

  [1]Customers Banken.wikipedia.org

  Customers Bank moved its headquarters to West Reading, while T-Mobile announced a banking partnership with BankMobile.

• 2016

  Higher One Holdings acquisition is announced

  [1]Customers Banken.wikipedia.org

  Customers Bancorp agreed to acquire Higher One Holdings and combine the business with BankMobile.

• 2015

  BankMobile is launched

  [1]Customers Banken.wikipedia.org

  Jay Sidhu and Luvleen Sidhu co-founded BankMobile as a digital-bank venture associated with Customers Bank.

• 2013

  Customers Bancorp goes public

  [1]Customers Banken.wikipedia.org

  Customers Bancorp completed its NASDAQ initial public offering and began trading under the symbol CUBI.

• 2011

  Customers Bancorp holding-company structure is approved

  [1]Customers Banken.wikipedia.org

  Shareholders approved the formation of Customers Bancorp, Inc. as a bank holding company.

• 2010

  The bank undergoes rebranding and acquisitions

  [1]Customers Banken.wikipedia.org

  New Century Bank became Customers 1st Bank, later changed its name to Customers USA, and pursued several bank and deposit acquisitions.

• 2009

  Jay Sidhu joins the bank's leadership

  [1]Customers Banken.wikipedia.org

  Jay Sidhu joined the board and became chairman and chief executive officer after helping raise new capital.

• 1997

  New Century Bank is founded

  [1]Customers Banken.wikipedia.org

  Ken Mumma founded New Century Bank in Phoenixville, Pennsylvania, establishing the predecessor institution of Customers Bank.

A technology-oriented regional banking group combining commercial banking and specialty finance with digital banking and payment infrastructure.

• Commercial banking

  Customers Bank commercial banking

  Customers Bank provides deposit, lending, treasury-management and related banking services to businesses and institutions. Its commercial-bank franchise has been the core operating business within Customers Bancorp and has expanded beyond its original Pennsylvania community-bank base into multiple U.S. markets.

• Digital banking · 2015

  BankMobile

  BankMobile was created in 2015 as an online-bank venture associated with Customers Bank. It was designed around digital account access and technology-enabled consumer banking, reached 100,000 customers in its first year, and later became the basis for a partnership with T-Mobile.

• Payments infrastructure

  Customers Bank Instant Token (CBIT)

  CBIT is a blockchain-based real-time payments platform operated by Customers Bank. It has supported payment activity for digital-asset companies and forms part of Customers Bancorp's fintech-oriented strategy. The platform was specifically associated with regulatory concerns raised by the Federal Reserve in 2024.

• Lending

  Specialty finance and commercial lending

  The group offers commercial and specialty-finance capabilities alongside traditional deposits. These activities reflect its strategy of serving businesses, professionals, institutions and specialized industries rather than operating solely as a consumer branch bank.

• 2024

  Federal Reserve enforcement action over risk-management and anti-money-laundering controls

  On August 8, 2024, the Federal Reserve Bank of Philadelphia announced an enforcement action involving Customers Bancorp and Customers Bank. The notice identified significant deficiencies in risk management and anti-money-laundering practices and highlighted concerns related to the bank's digital-asset strategy, including its CBIT platform and digital-asset clientele.

  Source

Read more

• 2019T-Mobile and BankMobile banking partnership

  United States

  T-Mobile and BankMobile announced a plan to introduce a banking service for T-Mobile wireless customers, extending the digital-bank proposition through a major telecommunications distribution channel.

  Outcome. The partnership was publicly announced; the available reference material does not provide further performance or rollout results.

  Source

• 2024

  Expand digital-asset and real-time-payment bankingStrategy

  Background

  Customers Bank operated CBIT and served prominent digital-asset firms as part of its technology-forward banking strategy.

  Action taken

  The bank maintained a blockchain-based real-time payments platform and digital-asset banking relationships.

  Aftermath

  The Federal Reserve cited the digital-asset strategy in a 2024 enforcement action concerning risk-management and anti-money-laundering deficiencies.

  Source

• 2021

  Appoint Sam Sidhu as Customers Bank chief executiveOther

  Background

  Richard Ehst announced his retirement, creating a leadership transition at Customers Bank.

  Action taken

  Sam Sidhu became president and chief executive officer after previously serving in board, vice-chair, operating and corporate-development roles.

  Aftermath

  The company continued emphasizing fintech-oriented banking under the new leadership.

  Source

• 2015

  Launch BankMobileProduct launch

  Background

  Customers Bank sought to extend its business through technology-enabled and digitally distributed banking.

  Action taken

  Jay Sidhu and Luvleen Sidhu co-founded BankMobile as an online-bank venture incubated under Customers Bank.

  Aftermath

  BankMobile reached 100,000 customers within its first year and later became the subject of a T-Mobile distribution partnership.

  Source

• 2013

  Complete the CUBI public offeringOther

  Background

  Customers Bancorp sought additional capital after an earlier proposed offering faced valuation concerns.

  Action taken

  The company raised capital from investors and completed its NASDAQ initial public offering on May 17, 2013.

  Aftermath

  Customers Bancorp became a publicly traded bank holding company under the ticker CUBI.

  Source

• 2011

  Create a bank holding companyStrategy

  Background

  The institution was moving from a community-bank structure toward a broader regional banking organization.

  Action taken

  Shareholders approved the formation of Customers Bancorp, Inc. as the holding company for the banking operation.

  Aftermath

  The structure supported subsequent capital raising, acquisitions and the company's 2013 public offering.

  Source

1. 1Customers Banken.wikipedia.org
2. 2Customers Bank official websitecustomersbank.com