WEST READING, Pa.--(BUSINESS WIRE)--
Customers Bancorp, Inc. (NYSE:CUBI) announced that subordinated notes issued in 2014 will, on June 26, 2024, convert from an annual fixed rate of 6.125% to a floating rate.
On June 24, 2014, Customers Bancorp, Inc. (“Customers”) and its wholly-owned subsidiary, Customers Bank, (the “Bank”) entered into subscription agreements with accredited investors under which the Bank issued $110.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2029 (the “Subordinated Notes”).
Pursuant to the terms of the original Subordinated Note Certificate, from June 26, 2024, until maturity, the Subordinated Notes were to bear an annual interest rate equal to the three-month LIBOR plus 344.3 basis points. Pursuant to the Adjustable Interest Rate (LIBOR) Act enacted by Congress on March 15, 2022, the three-month term SOFR plus a tenor spread adjustment of 26.161 basis points will replace the three-month LIBOR rate as the benchmark reference rate used to calculate the annual interest rate for the Subordinated Notes on and after June 26, 2024. After June 26, 2024 and until maturity or redemption, interest on the Subordinated Notes will be payable quarterly in arrears on each March 26, June 26, September 26 and December 26 (or, if such date is not a Business Day (as defined in the Subordinated Note Certificate), on the next succeeding Business Day).
The Bank has the ability to call the Subordinated Notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after June 26, 2024.
Institutional Background
Customers Bancorp, Inc. (NYSE:CUBI) is one of the nation’s top-performing banking companies with over $21 billion in assets making it one of the 80 largest bank holding companies in the US. 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. 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 Specialty Lending clients. Major accolades include:
- #5 in top-performing banks with assets between $10 billion and $50 billion in 2022 per American Banker;
- #34 out of the 100 largest publicly traded banks in 2023 per Forbes; and
- #64 on Fortune Magazine’s 2022 list of the 100 fastest growing companies in America; and
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: .
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