Customers Bancorp Inc Sells a Fixed to Floating Issue

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Relatively small ($6.8 billion in assets) Pennsylvania banking company Customers Bancorp (ticker:CUBI) has sold a fixed to floating rate preferred issue.

This issue has an initial (5 years) coupon of 7% before going to the floating rate in 2020. The floating rate is 3 month libor plus 5.30%.  Of course being a banking company the shares are non-cumulative.

Given that we are shying away from perpetual issues we will not be buying this issue, but the 7% coupon from a solid small banking company looks pretty tasty for those not worried about capital fluctuations.

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Details of the issue are here.

Customers Bancorp has no other publicly trading preferreds, but they do have a nice ETD issue (ticker:CUBS) which we have owned for years and it has performed very well (but matures in 2018).

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