Customers Bank Onboards 10 Experienced Banking Teams and Accelerates Deposit Transformation; Builds Prominence on East, West Coasts

Rhea-AI Summary

Customers Bank, a $22 billion asset subsidiary of Customers Bancorp (NYSE:CUBI), has onboarded 10 commercial and business banking teams in NY, CA, and NV, aiming to boost deposit growth. The move strengthens its Single Point of Contact banking model, enhancing client service and expanding its presence on both coasts.

Insights

Market Research Analyst

The recent recruitment drive by Customers Bank, involving the onboarding of 10 experienced commercial and business banking teams across various strategic locations, is a calculated move to strengthen its Single Point of Contact banking model. This approach aims to provide a seamless and personalized banking experience, which could be particularly appealing to middle-market commercial businesses. By focusing on relationship-oriented services, Customers Bank is likely to enhance customer loyalty and potentially increase its market share in the commercial deposits space.

The bank's expansion into new regions without immediate physical locations suggests an emphasis on digital banking solutions and remote customer service capabilities. This could position Customers Bank favorably in the evolving financial services landscape where digital banking is increasingly prevalent. However, the lack of physical presence in the initial stages could also present challenges in establishing trust and brand recognition among potential clients in these new areas.

Financial Analyst

The financial implications of this recruitment drive for Customers Bank and its parent company, Customers Bancorp, hinge on the successful integration and productivity of the newly acquired teams. The investment in human capital is poised to bolster the bank's deposit growth potential, which is a key indicator of financial health in the banking industry. An increase in low-cost deposit portfolios can improve the bank's net interest margin, a critical profitability metric.

Investors should monitor the bank's upcoming quarterly reports for evidence of deposit growth and customer acquisition as a result of these strategic hires. However, the costs associated with the expansion, including recruitment and potential new office spaces, should be weighed against the projected revenue growth to assess the overall impact on the company's bottom line.

Banking Industry Expert

The Single Point of Contact model adopted by Customers Bank is an innovative approach in the banking sector, designed to differentiate the bank's service offering. This model could potentially disrupt traditional banking relationships by providing a more integrated and personalized customer service experience. In an industry where differentiation is challenging due to commoditized products, such a strategy could be a game-changer, enhancing client retention and attracting new business.

However, the execution of this model at scale, particularly in new markets, will be crucial. The ability of the new teams to replicate the bank's service culture and deliver on the promise of unparalleled client service will be key to the success of this initiative. The bank's future plans to open new locations in support of venture finance customers indicate a targeted approach to growth, focusing on niche markets with specific financial needs.

Recruitment drive fuels distinct Single Point of Contact banking model designed to offer unparalleled client service and attention

MALVERN, Pa.--(BUSINESS WIRE)-- Customers Bank, the $22 billion asset subsidiary of Customers Bancorp (NYSE:CUBI), has onboarded 10 experienced commercial and business banking teams in New York, California and Nevada. The hiring drive is expected to accelerate the Bank’s deposit growth potential and represents significant investment in its Single Point of Contact banking model, designed to exceed client expectations.

With new talent, Customers Bank builds its prominence on East and West Coasts. For the Bank, the new teams enhance its presence in New York City, where it has successfully operated for over seven years; reinforce its dedication to L.A.; add representation in Orange County, Calif.; and bring client coverage to the communities of Reno and Las Vegas, Nev.

All newly onboarded bankers are highly respected in the commercial deposits space and augment existing expertise in private banking, treasury management, and commercial and industrial lending. They are charged with accelerating growth of the Bank’s low-cost, relationship-focused deposit portfolio, and their addition strengthens the Bank’s commitment to its signature relationship-oriented service approach.

“At Customers Bank, we're intent on ensuring that our teams are fully supported to provide our clients with access to trusted and tested expertise,” said Customers Bank Executive Chairman Jay Sidhu. “We want our clients to succeed and achieve their goals, all while being wowed by the senior level of support they receive at every turn.”

“We are delighted to welcome these experienced teams to Customers Bank. These hires are a deliberate continuation of our strategy to provide incredible service to middle-market commercial businesses and solidify Customers Bank’s national banking capabilities,” added Sam Sidhu, President and CEO of Customers Bank. “Over time, they will help us become the prominent customer-oriented bank in our markets, and we expect they will add thousands of customer relationships to the Bank.”

While Customers Bank will not immediately have locations in L.A., Orange County, Reno or Las Vegas, it is evaluating the benefit of offices in these markets to support existing and future clients. In Q2 2024, the Bank will open three new locations in Menlo Park, Calif; Durham, N.C.; and Denver, Colo., to further support its venture finance customers.

Institutional Background

Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with nearly $22 billion in assets, making it one of the 80 largest bank holding companies in the U.S. Customers Bank’s commercial and consumer clients benefit from a full suite of technology-enabled tailored product experiences delivered by best-in-class customer service distinguished by a Single Point of Contact approach. In addition to traditional lines such as C&I lending, commercial real estate lending and multifamily lending, Customers Bank also provides a number of national corporate banking services to specialized lending clients. Major accolades include:

• No. 5 on American Banker 2023 list of top-performing banks with $10B to $50B in assets
• No. 29 out of the 100 largest publicly traded banks in 2024 Forbes Best Banks list
• No. 52 on Investor’s Business Daily 100 Best Stocks for 2023

A member of the Federal Reserve System with deposits insured by the Federal Deposit Insurance Corporation, Customers Bank is an equal opportunity lender. Learn more: www.customersbank.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240409869109/en/

Eric Lucero

SVP, Chief Marketing Officer

(212) 843-4543

elucero@customersbank.com

Source: Customers Bank

FAQ

How many banking teams did Customers Bank onboard in NY, CA, and NV?

Customers Bank onboarded 10 experienced commercial and business banking teams in New York, California, and Nevada.

What is Customers Bank's deposit growth potential expected to be fueled by?

The hiring drive of 10 experienced banking teams is expected to accelerate Customers Bank's deposit growth potential.

What is the primary focus of Customers Bank's Single Point of Contact banking model?

Customers Bank's Single Point of Contact banking model is designed to provide unparalleled client service and attention.

Where will Customers Bank open three new locations in Q2 2024?

Customers Bank will open three new locations in Menlo Park, California; Durham, North Carolina; and Denver, Colorado in Q2 2024.

What major accolades has Customers Bancorp received recently?

Customers Bancorp has been recognized as No. 5 on American Banker 2023 list of top-performing banks, No. 29 on the 100 largest publicly traded banks in 2024 Forbes Best Banks list, and No. 52 on Investor's Business Daily 100 Best Stocks for 2023.