CUSTOMERS BANCORP, INC. (NYSE:CUBI) Files An 8-K Other Events

CUSTOMERS BANCORP, INC. (NYSE:CUBI) Files An 8-K Other Events

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Item 8.01

Other Events
As previously disclosed, Customers Bancorp, Inc. (“Customers”),
has been in discussions with the Board of Governors of the
Federal Reserve (the “Federal Reserve Board”)
staff regarding certain compliance matters relating to certain
past activities of a former business partner of Customers, Higher
One Holdings, Inc. (“Higher One”). To settle these matters from
2013 and to move forward, on December 6, 2016, Customers Bank,
Customers’ wholly-owned subsidiary, agreed to the issuance by
the Federal Reserve Board of a combined
Order to Cease and Desist and Order of Assessment of a Civil
Money Penalty Issued Upon Consent to the Federal Deposit
Insurance Act, as amended (the “Order”) with respect to these
matters. The executed Order, which includes descriptions of the
relationship between Customers Bank and Higher One, the concerns
raised by the Federal Reserve, and the terms of the agreement, is
included as Exhibit 10.1 to this document. Customers has already
set aside a reserve for the civil monetary penalty. Therefore the
civil money penalty, and other provisions of the Order, will not
have a material adverse effect on Customers’ results of
operations or the conduct of Customers’ business prospectively.
Customers Bank began its relationship with Higher One on August
14, 2013. In early September 2013 Customers Bank identified a
potential UDAAP (unfair, deceptive or abusive acts and practices)
issue with respect to certain Higher One practices and demanded
that Higher One remediate the issue. The issue was substantively
remediated by Higher One by December 19, 2013. Customers Bank
reported this issue and its remediation to the Federal Reserve
Bank of Philadelphia.
Customers Bank is committed to delivering the best possible
products and services to its clients in the most compliant
fashion and to make banking affordable and assessable to millions
of underserved Americans. Since taking over the Higher One
Disbursement business in June 2016, Customers has already reduced
fees by an estimated $70 million and is today servicing
approximately 1.5 million student customers across the United
States with one of the best checking accounts available.
“Safe Harbor” Statement
In addition to historical information, this press release may
contain “forward-looking statements” within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include
statements with respect to Customers Bancorp, Inc.’s strategies,
goals, beliefs, expectations, estimates, intentions, capital
raising efforts, financial condition and results of operations,
future performance and business. Statements preceded by, followed
by, or that include the words “may,” “could,” “should,”
“pro forma,” “looking forward,” “would,” “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “plan,”
or similar expressions generally indicate a
forward-looking statement. These forward-looking
statements involve risks and uncertainties that are subject to
change based on various important factors (some of which, in
whole or in part, are beyond Customers Bancorp, Inc.’s control).
Numerous competitive, economic, regulatory, legal and
technological factors, among others, could cause Customers
Bancorp, Inc.’s financial performance to differ materially from
the goals, plans, objectives, intentions and expectations
expressed in such forward-looking statements. In addition,
important factors relating to the acquisition of the
Disbursements business, the combination of
Customers’ BankMobile business with the acquired
Disbursements business and the implementation of
Customers Bancorp, Inc.’s strategy regarding
BankMobile, including with respect to the possible disposition of
the BankMobile business, depending upon market conditions and
opportunities, also could cause Customers Bancorp’s actual
results to differ from those in the forward-looking statements.
Customers Bancorp, Inc. cautions that the foregoing factors are
not exclusive, and neither such factors nor any such forward
looking statement takes into account the impact of any future
events. All forward-looking statements and information set forth
herein are based on management’s current beliefs and assumptions
as of the date hereof and speak only as of the date they are
made. For a more complete discussion of the assumptions, risks
and uncertainties related to our business, you are encouraged to
review Customers Bancorp, Inc.’s
filings with the Securities and Exchange Commission, including
its most recent annual report on Form10-K for the year ended
December 31, 2015, subsequently filed quarterly reports on Form
10-Q, and current reports on Form 8-K
that update or provide information in addition to the information
included in the Form 10-K and 10-Q
filings. Customers Bancorp, Inc. does not undertake to update any
forward looking statement whether written or oral, that may be
made from time to time by Customers Bancorp, Inc. or by or on
behalf of Customers Bank.
The foregoing description of the Order is qualified in its
entirety by reference to that document, a copy of which is filed
as Exhibit 10.1 to this Current Report on Form 8-K and is
incorporated herein by reference.
Item 9.01
Financial Statements and Exhibits
(d) Exhibits.
Exhibit
No.
Description
10.1
Order to Cease and Desist and Order of
Assessment of Civil Money Penalty Issued Upon Consent
Dated December 6, 2016


About CUSTOMERS BANCORP, INC. (NYSE:CUBI)

Customers Bancorp, Inc. (Customers Bancorp) is a bank holding company engaged in banking activities through its subsidiary, Customers Bank (the Bank). The Company operates in the community banking segment. The Bank provides financial products and services to small and middle market businesses, not-for-profits, and consumers. The Bank also provides liquidity to the mortgage market nationwide through the operation of its loans to mortgage banking companies. It offers a range of traditional loan and deposit banking products, and financial services. The Bank offers a range of lending products, including small business loans, mortgage warehouse loans, multi-family and commercial real estate loans, residential mortgage loans and other consumer loans. It also offers traditional deposit products, including commercial and consumer checking accounts, non-interest-bearing demand accounts, money market deposit accounts, savings accounts and time deposit accounts, and cash management services.

CUSTOMERS BANCORP, INC. (NYSE:CUBI) Recent Trading Information

CUSTOMERS BANCORP, INC. (NYSE:CUBI) closed its last trading session up +0.45 at 33.58 with 334,409 shares trading hands.

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