Customer Bank to Consolidate Five Pennsylvania Branches

Rhea-AI Summary

Customers Bank (OTC-PINK:USBK), a digital-focused super-community bank, has announced the consolidation of five Pennsylvania branches as part of its expansion strategy. The affected branches are located in Exeter, Langhorne, Muhlenberg, Newtown Square, and Wayne, with changes expected in late October and early November. CEO Sam Sidhu emphasized the shift towards digital banking, citing reduced necessity for physical branches. The bank has also opened non-branch offices in various locations and launched a blockchain-based payment service, aiming for customer service enhancement and shareholder value growth.

Positive

• Expansion strategy includes potential new branch openings in different markets.
• Launched blockchain-based Customers Bank Instant Token™ payments service.
• Continues to open non-branch offices in various locations.

Negative

• Consolidation of branches indicates a shift away from physical banking.
• Employees displaced may face job transitions despite support.

MALVERN, Pa.--(BUSINESS WIRE)-- Customers Bank, a digital-forward super-community bank with a growing number of operations across the nation and the bank subsidiary of Customers Bancorp, Inc. (NYSE:CUBI), announced today that it will be consolidating its Pennsylvania branches and transferring the accounts from five (5) branches to other branches in the region. The move is part of an overall strategy of continued national expansion which may include additional branches in new markets at a future date.

The branches impacted are:

Exeter at 1 Hearthstone Court, Reading, PA 19606
Langhorne at Rt. 413 and Doublewoods Road, Langhorne, PA 19047
Muhlenberg at 350 E. Bellevue Avenue, Reading, PA 19605
Newtown Square at 3557 West Chester Pike, Newtown Square, PA 19073
Wayne at 153 East Lancaster Avenue, Wayne, PA 19087

The consolidations are expected to take place in late October and early November.

Over the past two years, Customers Bank has opened non-branch offices in Wilmington, NC; Harrisburg, PA; Orlando, FL; Dallas, TX; and rebooted its Chicago, IL operation. The bank continues to maintain branches and offices across Southeastern PA; Hamilton, NJ; and Rye Brook, NY; and non-branch offices in Manhattan; Providence, RI; Boston, MA; and Portsmouth, NH. Additionally, the bank launched new national business teams including Fund Finance, Financial Industries Group, and Technology and Venture Banking. In the past 10 months, the rapidly growing financial services firm launched its blockchain-based Customers Bank Instant Token^TM payments service and made bold inroads to the cryptocurrency industry. Similar growth and expansion are expected to continue.

Sam Sidhu, President & CEO of Customers Bank, explained, “We value our clients in these communities and hope to retain their business through digital and online banking, and other regional offices and branches. The truth of the matter is more and more clients have moved to mobile and online banking making physical branches less necessary and more expensive. This consolidation provides wider services to a greater number of clients both on a local and on a national basis.”

According to Sidhu, every Customers Bank team member displaced by the closings will have the ability to post for open positions internally during this transition. Impacted team members who are unable to transition to a new role will be compensated based on their position and tenure and will be offered career transition support.

“As we become more deeply integrated in the global digital financial services ecosystem,” said Sidhu, “brick and mortar banking operations have become and will continue to be less important to our customers. By redeploying our investment in emerging technologies and leading-edge financial platforms, we increase customer service and shareholder value simultaneously.”

Sidhu continued, “The people who work for us in these branches were part of the success story that brought us to a place where we can take advantage of new opportunities. Customers Bank will work with these team members to minimize the impact by providing the appropriate level of financial and job assistance. We are grateful for their hard work and dedication to the company."

Sidhu also had a message for the government and community leaders, and residents of Southeastern Pennsylvania. “We are consolidating branches but not leaving these communities. We just invested in a new Innovation and Technology Center near Malvern, PA and we will continue to maintain many offices in the region.”

About Customers Bank
Customers Bank, headquartered near Malvern, Pennsylvania, is a full-service super community bank with assets of $19.2 billion at March 31, 2022; and a subsidiary of Customers Bancorp, Inc. (NYSE:CUBI), a bank holding company located in West Reading, Pennsylvania. 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 mobile-first apps, online portals, and a network of offices and branches. Customers Bank provides blockchain-based digital payments via the Customers Bank Instant Token™ (CBIT) which allows clients to make real-time payments in US dollars, 24 hours a day, 7 days a week, 365 days a year.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220722005061/en/

David Patti, Director, Communications 610-451-9452

Source: Customers Bank

FAQ

Why is Customers Bank consolidating its branches?

Customers Bank is consolidating branches to enhance its digital banking services and reduce physical banking expenses as more clients shift to online banking.

Which Pennsylvania branches are affected by the consolidation?

The impacted branches are located in Exeter, Langhorne, Muhlenberg, Newtown Square, and Wayne, with changes scheduled for late October and early November.

What is Customers Bank's recent strategy for expansion?

Customers Bank plans continued national expansion, including the opening of non-branch offices in new markets and investment in digital banking technology.

What support will Employees receive after branch closures?

Employees affected by the branch closures will have opportunities for internal job postings and receive compensation and career transition support if unable to secure new roles.

How does the consolidation impact Customers Bank's operations?

The consolidation aims to streamline operations and redirect investments towards technology and digital platforms, enhancing customer service and shareholder value.