Customers Bancorp Inc Sells a Fixed to Floating Issue
By: Tim McPartland,
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.
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).