WEST READING, PA — Customers Bancorp, Inc. (NYSE:CUBI) announced that the Board of Directors has declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E (NYSE: CUBIPrE) of $0.68319767 per share. The dividend is payable on December 15, 2023, to shareholders of record on November 30, 2023.
The Board of Directors has also declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F (NYSE: CUBIPrF) of $0.65931017 per share. The dividend is payable on December 15, 2023, to shareholders of record on November 30, 2023.
The company is reminding shareholders that, in accordance with Federal Reserve Board rules implementing the Adjustable Interest Rate (the “LIBOR Act”), after June 30, 2023, Customers Bancorp Inc. is no longer using the three-month LIBOR as a reference rate for determining the dividend rate of the Company’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share (“Series E Preferred Stock”), and Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, par value $1.00 per share (“Series F Preferred Stock”).
Customers Bancorp has replaced the reference rate on Series E Preferred Stock and Series F Preferred Stock with the replacement reference rate determined by the Federal Reserve Board rules implementing the LIBOR Act, which specify that three-month LIBOR be replaced with the CME Term SOFR Reference Rate published for three-month tenor as administered by CME Group Benchmark Administration, Ltd. (or any successor administrator thereof) plus 0.26161 percent (the “New Reference Rate”).
Effective with the dividend payment scheduled for December 15, 2023 (and determined after June 30, 2023), for the Series E Preferred Stock (cusip 23204G605) the calculation agent determined the dividend rate by adding the spread of 5.14% per annum to the New Reference Rate as determined on the applicable dividend determination date; for the Series F Preferred Stock (cusip 23204G704) the calculation agent determined the dividend rate by adding the spread of 4.762% per annum to the New Reference Rate as determined on the applicable dividend determination date.
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