CUSTOMERS BANCORP INC - CUBI STOCK NEWS

Customers Bancorp (NYSE: CUBI) has successfully divested its BankMobile business, completing the merger with Megalith Financial Acquisition Corp. on January 4, 2021. As a result, Customers received $23.1 million in cash and shareholders are entitled to approximately 4,876,387 shares of the newly formed BM Technologies, Inc. (BMT), representing about 41% of its outstanding shares. The shares will be subject to a lock-up period and are not immediately tradeable. Customers Bancorp aims for significant shareholder returns from this fast-growing fintech company.

Customers Bancorp (NYSE:CUBI) has been recognized by Kiplinger as one of the "best financial stocks to buy" in 2021. This comes after the Federal Reserve's approval of big banks to resume share buybacks. Despite the focus on the divestiture of BankMobile and the formation of BM Technologies Inc. (BMTX), Customers Bancorp's Vice Chairman emphasized ongoing growth opportunities, noting the bank's rise to $18.8 billion in assets from $250 million in ten years. Key initiatives include a digital bank launched in 2018 and significant involvement in SBA lending, positioning it for increased loan volume in 2021.

Customers Bancorp (NYSE: CUBI) announced that the stockholders of Megalith Financial Acquisition Corp. have approved the proposed merger with BankMobile Technologies. The merger, scheduled to close on January 4, 2021, will result in BankMobile merging into Megalith's subsidiary, with the latter expected to be rebranded as BM Technologies, Inc. This deal aims to facilitate tax planning for Customers' shareholders. The merger is contingent upon customary conditions being met.

Customers Bancorp (NYSE: CUBI) hosted a webcast on December 11, 2020, discussing the divestiture of BankMobile Technologies and its mid-quarter financial performance. Despite economic challenges, the company reported stable asset quality, with nonperforming assets rising slightly to $69.3 million (0.38% of total assets). Notably, net charge-offs slowed to $5.3 million, primarily impacting consumer loans. The company recognized $11.8 million in PPP deferred origination fees, anticipating a net interest margin increase to 3.00% in Q4 2020.

Customers Bancorp (NYSE: CUBI) announced a conditional special distribution for its shareholders in connection with the merger with Megalith Financial Acquisition Corp. The record date for this distribution is December 18, 2020. The merger will involve BankMobile merging into a subsidiary of Megalith, which will subsequently be renamed BM Technologies, Inc. Shareholders are expected to receive between 0.11 and 0.14 shares of Megalith common stock per share they hold, contingent on the merger's closing, which depends on stockholder and regulatory approvals. The distribution is taxable as a qualified dividend.

Customers Bancorp, Inc. declared quarterly cash dividends for its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stocks: Series C ($0.350753), Series D ($0.40625), Series E ($0.403125), and Series F ($0.375). All dividends are payable on December 15, 2020, to shareholders of record as of November 30, 2020. The company, based in West Reading, Pennsylvania, operates through its subsidiary, Customers Bank, which has $18.8 billion in assets. Customers Bancorp's common shares trade on the NYSE under the symbol CUBI.

Megalith Financial Acquisition Corp., BankMobile Technologies, and Customers Bank have amended their merger agreement, allowing stock consideration to be paid directly to Customers Bancorp's shareholders. This strategic shift aims to enhance the intrinsic value of BankMobile, particularly in light of high fintech multiples. The merger is expected to close by year-end 2020, with the newly independent BM Technologies, Inc. trading under the symbol BMTX. Customers Bancorp holds $18.8 billion in assets as of September 30, 2020, and operates as a full-service bank.

Customers Bancorp, Inc. (NYSE: CUBI) reported a net income of $47.1 million for Q3 2020, equating to $1.48 per diluted share. Core earnings stood at $38.2 million, or $1.20 per diluted share. Revenue surged 42% year-over-year, while expenses increased by only 10%. Asset quality improved with non-performing assets reduced to 0.34% of total assets. Despite a $2.4 million decline in card interchange income due to regulatory changes, the company successfully facilitated access to Paycheck Protection Program loans for around 100,000 small businesses. The focus remains on robust asset quality management amid economic challenges.