Customers Bancorp Announces Common Stock Repurchase Plan

WEST READING — Customers Bancorp Inc., the holding company for Customers Bank, announced a common stock repurchase plan. The transaction was authorized by Customers’ board of directors on June 26. It gives the company the option to purchase up to 497,509 shares of its outstanding common stock over a one-year period, according to Monday’s announcement.

Customers Bancorp said it plans to fund any repurchases with available cash. Repurchases of common stock may be made through open market purchases or privately negotiated transactions.

The Company’s previous common stock repurchase plan was authorized on August 25, 2021 and expired on September 27, 2023. At the expiration of this previous plan, 497,509 shares had not been repurchased.

“In 2023, we successfully strengthened our capital ratios in an uncertain environment to position ourselves for growth,” Jay Sidhu, chairman and CEO of Customers Bancorp Inc., said in a statement. He added that Customers’ Common Equity Tier 1 capital increased by approximately 260 basis points and tangible common equity to tangible assets (TCE/TA) — a financial ratio that measures a company’s tangible common equity relative to its tangible assets — increased by approximately 100 basis points in 2023.

The company, Sidhu added, has exceeded its Common Equity Tier 1 capital target and is approaching its TCE/TA target.

“Accordingly, the board believes it is prudent to once again implement a share repurchase plan,” Sidhu added.

The timing, price and quantity of repurchases under the common stock repurchase plan will be at the discretion of Customers Bancorp and will depend on a variety of factors, the company said in the statement. These factors include: the company’s capital position, liquidity, financial performance and alternative uses of capital, stock price, regulatory requirements and limitations and general market conditions.

Additionally, there is no fixed number of shares that Customers Bancorp is obligated to repurchase and the plan may be suspended or terminated at any time.