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Customers Bank appoints new Chief Compliance and AML Officer

EditorLina Guerrero
Published 08/09/2024, 02:24 PM
CUBI
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WEST READING, Pa. - Customers Bank, a subsidiary of Customers Bancorp (NYSE:CUBI) with $22 billion in assets, has announced the appointment of Allen Love as its new Chief Compliance and Anti-Money Laundering (AML) Officer. Love's appointment is part of the bank's ongoing effort to enhance its compliance program, particularly in the area of Bank Secrecy Act and AML protocols.

The move comes as the bank is working to meet the requirements of a recent agreement with the Federal Reserve Bank of Philadelphia and the Commonwealth of Pennsylvania. Customers Bank has emphasized its commitment to robust risk management practices and the enhancement of its regulatory compliance measures.

Allen Love, a seasoned professional with a background as an IRS Special Agent and extensive experience in financial crimes risk management, will lead the enterprise-wide compliance program. His previous roles include senior compliance positions at some of North America's largest banks, where he has been instrumental in enhancing BSA/AML and fraud control environments.

Joan Cheney, Executive Vice President and Chief Risk Officer of Customers Bank, expressed confidence in Love's abilities to fortify the bank's compliance initiatives. She highlighted his impressive career and the steps already taken by the bank to align with regulatory expectations.

Customers Bancorp, the parent company of Customers Bank, is recognized as one of the top-performing banking companies in the United States. It has received several accolades for its performance and services, including rankings on American Banker, Forbes Best Banks, and Investor's Business Daily lists.

In other recent news, Customers Bancorp has experienced significant developments. The U.S. Federal Reserve has imposed enforcement action on the bank due to "significant deficiencies" in its risk management and anti-money laundering protocols. In response, the bank has initiated measures to enhance these practices.

In the realm of analyst upgrades, Jefferies has raised the price target for Customers Bancorp maintaining a Buy rating. The bank anticipates an addition of approximately $2 billion in deposit pipelines over the next few quarters due to the hiring of new teams. KBW and DA Davidson have also raised their price targets on the bank's shares, maintaining positive ratings.

Customers Bancorp reported strong second-quarter results for fiscal year 2024, with an 11% annualized growth in loans and a 19 basis point expansion in net interest margin. The bank's tangible book value per share also saw an impressive increase.

InvestingPro Insights

As Customers Bank welcomes Allen Love to strengthen its compliance framework, investors are keeping a close eye on Customers Bancorp's (NYSE:CUBI) financial health and market performance. According to InvestingPro data, Customers Bancorp holds a market capitalization of approximately $1.47 billion, reflecting its position in the banking sector. The bank is currently trading at a low price-to-earnings (P/E) ratio of 6.01, suggesting that the stock could be undervalued relative to its near-term earnings growth potential.

Despite recent market turbulence, which saw the bank's stock price take a significant hit over the last week, with an 18.24% decrease in the one-week total return, Customers Bancorp has demonstrated a strong revenue growth of 26.6% over the last twelve months as of Q2 2024. This growth is paired with an operating income margin of 53.56%, indicating efficient management and profitability in its operations.

An InvestingPro Tip notes that while the stock has faced volatility, analysts predict the company will remain profitable this year, a sentiment that is underlined by the bank's solid return of 19.98% over the past year. For investors seeking more detailed analysis and additional tips, InvestingPro offers 10 more insights on Customers Bancorp, which can be explored at: https://www.investing.com/pro/CUBI.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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