PORTLAND, Maine – Stern Agee has initiated coverage on Customers Bancorp as part of its ongoing analysis of 44 banks in the northeast region, the firm announced.
“We track the Northeast community banking space and Customers is a large and growing player in the region,” Stern Agee analyst Matthew Kelley told Providence Business News.
“We’re familiar with the management team. CEO Jay Sidhu has put the Sovereign Bank team back together, particularly in New England, when Customers acquired Flagstar,” said Kelley.
The Customers Bank New England team, with offices in Providence and Boston, is lead by veteran Rhode Island banker Steve Issa, who is New England market president. Customers Bank acquired Flagstar Bank’s New England business in March 2013.
Stern Agee initiated coverage of Customers Bank with a neutral rating.
“The company is actively growing its commercial real estate loan book and adding a mortgage banking operation to help offset a significant decline in their mortgage warehouse lending business,” said Kelly. “We would prefer to take a wait-and-see approach at this transition plays out.”
Customers Bank is headquartered in Wyomissing, Pa.