PROVIDENCE – Customers Bancorp Inc., the parent company of the branchless digital bank BankMobile, reported a net income of $20 million for the second quarter, slightly below a net income of $20.1 million a year earlier.
The Pennsylvania-based company, which operates Customers Bank, recently said its BankMobile division, offering low-cost digital banking to 1.8 million checking account holders, had deposits totaling $420 million for the quarter ended June 30.
The BankMobile segment recorded a net loss of $3.3 million in the quarter, including $869,000 in merger and acquisition cost charges related to Customer’s planned spinoff of BankMobile.
Customers said it decided the best strategy for its shareholders was to spinoff BankMobile and for Flagship Community Bank to acquire BankMobile. The transaction is awaiting approval from federal regulators, and it is expected by or soon after Sept. 30.
“Our Community Business Banking segment, the core business of Customers once the BankMobile spinoff has been completed, generated adjusted earnings of $23.5 million, or 73 cents per share, a 9.1 percent increase in earnings [from the first quarter] but roughly flat year-over-year,” Customers Bank CEO and Chairman Jay Sidhu said in a statement.
Scott Blake is a PBN staff writer. Email him at Blake@pbn.com.
