Flagship Community Bank was unable to raise the capital required to close the acquisition of BankMobile from Customers Bancorp Inc., Jay Sidhu, chairman and CEO of Customers Bancorp, said in response to a question from a shareholder at the annual shareholder meeting.
As a result, Customers Bancorp is now considering restructuring the transaction as a tax-free spinoff of BankMobile to Customers Bancorp shareholders.
This would be followed by an all-stock acquisition of BankMobile, at a to-be-determined valuation and subject to regulatory approval, by a well-capitalized Flagship Community Bank, the chief executive said.
"Flagship believes it has adequate capital commitments to consummate the restructured transaction," said Sidhu.
But, over the past few weeks, Customers Bancorp received two unsolicited all-cash proposals that may both be deemed better than the Flagship proposal by the Customers Bancorp board, depending on mutual due diligence and negotiation of a definitive agreement.
If Customers Bancorp is successful in executing a definitive agreement along the lines of the letters of intent submitted, both of these all-cash offers could be materially accretive to the company's earnings and equity capital, Sidhu told the audience.
Customers Bancorp hopes to go ahead with one of these options "over the next several weeks," Sidhu said.