Customers Bancorp Announces Full Redemption of Series C Preferred Stock and Series D Preferred Stock

Rhea-AI Summary

Customers Bancorp, Inc. (NYSE: CUBI) announced that on September 15, 2021, it will redeem all 2,300,000 shares of its Series C Preferred Stock and 1,000,000 shares of its Series D Preferred Stock, at a redemption price of $25 per share. Following this action, no shares of either series will remain outstanding. This redemption coincides with the dividend payment date, and the redemption prices do not include any declared and unpaid dividends. The planned redemption is part of a strategy to enhance shareholder value, according to CEO Jay Sidhu.

Positive

• Redemption of 2.3 million Series C Preferred Shares and 1 million Series D Preferred Shares enhances shareholder value.
• The planned redemption aligns with the company's strategy for increasing shareholder returns.

Negative

• None.

Customers Bancorp, Inc. (NYSE: CUBI) announced today that on September 15, 2021, it will redeem all 2,300,000 shares (the “Redeemed Series C Preferred Shares") of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C (ticker “CUBIPrC”) (the “Series C Preferred Stock”). The redemption price will be equal to $25 per Redeemed Series C Preferred Share. After giving effect to the redemption, no shares of the Series C Preferred Stock will remain outstanding.

Customers Bancorp also announced that on September 15, 2021, it will redeem all 1,000,000 shares (the “Redeemed Series D Preferred Shares") of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D (ticker “CUBIPrD”) (the “Series D Preferred Stock”). The redemption price will be equal to $25 per Redeemed Series D Preferred Share. After giving effect to the redemption, no shares of the Series D Preferred Stock will remain outstanding.

Because the redemption date is also a dividend payment date for the Series C Preferred Stock and the Series D Preferred Stock, the redemption prices noted herein do not include declared and unpaid dividends. Regular quarterly dividends will be paid separately in the customary manner on September 15, 2021 to holders of record on the close of business on August 31, 2021.

“We announced a planned redemption of preferred stock during our recent earnings call as step one in a multiphase strategy to increase shareholder value,” said Jay Sidhu, executive chairman and CEO of Customers Bancorp, Inc.

Computershare Trust Company, N.A. (“Computershare”) is the paying agent for the Redeemed Series C Preferred Shares and the Redeemed Series D Preferred Shares. The paying agent’s address is Computershare Trust Company, Attn: Corporate Actions, 150 Royall Street, Canton, MA 02021. Questions relating to the notice of redemption and related materials should be directed to Computershare via telephone at 1-800-546-5141.

About Customers Bancorp, Inc.

Customers Bancorp, Inc. (NYSE:CUBI) is a bank holding company located in West Reading, Pennsylvania engaged in banking and related businesses through its bank subsidiary, Customers Bank, a full-service bank with $19.6 billion in assets at June 30, 2021. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005140/en/

FAQ

What is the redemption date for Customers Bancorp's preferred shares?

The redemption date for Customers Bancorp's preferred shares is September 15, 2021.

How many shares of Series C Preferred Stock will be redeemed by CUBI?

Customers Bancorp will redeem 2,300,000 shares of Series C Preferred Stock.

What will be the redemption price for the preferred shares of CUBI?

The redemption price for each of the preferred shares is $25.

Who is the paying agent for the redeemed preferred shares?

Computershare Trust Company, N.A. is the paying agent for the redeemed preferred shares.

What is the significance of the preferred stock redemption for CUBI investors?

The redemption is part of a strategy aimed at increasing shareholder value.