Customers Bank strategically onboards former Signature Bank team members to manage loan portfolio, attract deposits, and strengthen its position as a leading US banking company.
Key Points
- Customers Bank successfully onboards nearly 30 former Signature Bank team members after the closure of Signature Bank.
- The team will manage the transfer and servicing of 150 loans in Customers Bank’s recently acquired venture banking loan portfolio.
- Customers Bancorp awards each team member with restricted stock units as part of the onboarding process.
Customers Bank, a subsidiary of Customers Bancorp (NYSE:CUBI), has announced the successful onboarding of nearly 30 team members formerly employed by Signature Bank, once known for its crypto-friendly stance.
Closure of Signature Bank
This move follows the closure of Signature Bank by its state chartering authority, as announced in a joint statement by the Treasury, Federal Reserve, and FDIC on March 12, 2023.
The team, which retains its experienced leadership, will initially manage the transfer and servicing of about 150 loans in Customers Bank’s recently acquired $631 million venture banking loan portfolio. The bank expects this team to attract significant deposits from these clients, contributing to the growth of Customers Bank’s Tech & Venture and Fund Finance lines of business.
Senator Bill Hagerty voted against the bipartisan RECOUP Act today.
The bill would allow the FDIC to clawback bank executives’ profits from insider stock sales.
Hagerty made ~$150K by selling stock in Signature Bank near its absolute peak.
Signature Bank is now bankrupt. pic.twitter.com/EvIOVPo2FI
— Quiver Quantitative (@QuiverQuant) June 21, 2023
Restricted Stock Units as Onboarding Incentive
As part of the onboarding process, Customers Bancorp is awarding each team member with restricted stock units. The aggregate award amounts to up to 23,464 restricted stock units, with a fair value equivalent to the closing price of Customers Bancorp’s common stock as of market close on the business day immediately preceding the grant ($32.88). These awards, which will vest equally over three years provided the individual remains employed through the vesting date, are being made outside of the Customers Bancorp 2019 Stock Incentive Plan as one-time employment inducement awards.
Customers Bank is recognized as one of the nation’s top-performing banking companies, with over $21 billion in assets, making it one of the 100 largest bank holding companies in the US. The bank is known for its innovative approach to banking, offering a blockchain-based 24/7/365 digital payment solution among its services.
Customers Bank’s onboarding of the former Signature Venture Banking team marks a strategic move for the bank. With the closure of Signature Bank, Customers Bank has seized the opportunity to employ these experienced professionals and integrate them into its operations.
The team, comprising nearly 30 members, will be responsible for managing the transfer and servicing of about 150 loans in Customers Bank’s recently acquired $631 million venture banking loan portfolio. Customers Bank expects this team to not only efficiently handle the loan portfolio but also attract significant deposits from the clients. These deposits will contribute to the growth of Customers Bank’s Tech & Venture and Fund Finance lines of business.
Customers Bancorp Strategy
To incentivize the onboarded team members, Customers Bancorp has decided to award each member with restricted stock units. The combined award totals up to 23,464 restricted stock units, valued at the closing price of Customers Bancorp’s common stock on the preceding business day. The awards will vest equally over three years, provided the individuals remain employed through the vesting date.
Customers Bank’s recognition as one of the nation’s top-performing banking companies, with assets exceeding $21 billion, further strengthens the significance of this onboarding. With its innovative approach to banking, including the provision of a blockchain-based 24/7/365 digital payment solution, Customers Bank continues to distinguish itself in the industry.
Overall, Customers Bank’s strategic move to onboard the former Signature Venture Banking team showcases its commitment to growth and innovation. By assimilating these professionals into the organization, the bank aims to enhance its loan management capabilities and attract a substantial client base, thereby solidifying its position as a leading banking company in the US.
