Succession Planning / Customers Bancorp Sells BankMobile Unit

By: Sharon J. Lorman
Jeffrey P. Marsico
Richard B. Trauger, Jr.

Guests: Jim Langmead, EVP and CFO Eagle Bancorp, Inc. and EagleBank and Charles Levingston, EVP-Finance EagleBank

Podcast Show Notes:

Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking news that happened this month. TMIB will be available on the last Wednesday of every month here, and on Apple and Droid podcast apps for your listening enjoyment. Join us on your commute or at your desk.

Topic 1: Succession Planning
Start time 2:42
This month Jim Langmead and Charles Levingston, both of Eagle Bancorp, Inc., were TMIB’s guests for the first topic, succession planning. On March 31, 2017, Jim will retire as CFO and Charles will take over the role. While Jim is a long-time industry veteran, Charles is a former Philadelphia Fed senior examiner. Our conversation discusses their take on succession planning. With an efficiency ratio under 40%, double digit loan growth, an ROA greater than 1.50% and ROE of 12.27%, Eagle is one of the strongest performing institutions in the country. Succession planning often plays a key role in M&A transactions, and other planned and unplanned situations. In Maryland, succession played a role in the merger of Rosedale Federal Savings & Loan Association and Midstate Community Bank. In Washington State, an untimely passing of Columbia Banking System’s CEO triggered implementation of an immediate succession plan. What is essential for a smooth executive succession, be it planned, through M&A, or immediate?

About: Jim Langmead and Charles Levingston
James H. Langmead has served as Executive Vice President and Chief Financial Officer of Eagle Bancorp, Inc. since January 2007, and Executive Vice President and Chief Financial Officer of EagleBank since January 2005. He previously served as Chief Financial Officer of Sandy Spring Bank (“Sandy Spring”) and Sandy Spring Bancorp. Mr. Langmead, a CPA, served in various financial and senior management roles with Sandy Spring from 1992 through 2004. Prior to that, Mr. Langmead managed the Finance group at the Bank of Baltimore. Mr. Langmead will retire as of March 31, 2017.
Charles D. Levingston has been appointed as Chief Financial Officer of Eagle Bancorp, Inc., and the Bank, with effect from April 1, 2017. He was Executive Vice President – Finance of the Bank. Mr. Levingston joined the Bank in January 2012, and previously worked at The Federal Reserve Banks of Atlanta and Philadelphia, and at PricewaterhouseCooper.

Topic 2: Customers Bancorp Sells BankMobile Unit
Start time 30:42
$9.4B Customers Bancorp Inc., headquartered in Wyomissing Pa., has agreed to sell its BankMobile division to Flagship Community Bank ($112.6MM in assets) in Clearwater, Florida for $175 million. BankMobile launched in January 2015 and had approximately 1.7 million student checking accounts and approximately $500 million of noninterest bearing deposits at the end of 2016. Customers is close to the $10B in asset threshold , triggering the Durbin Amendment and other regulatory constraints and burdens.
BankMobile’s recently announced president, Luvleen Sidhu will continue in the role, while Customers’ Chairman and CEO Jay Sidhu will serve as chairman of the combined entity, which will be called BankMobile. Flagship will be a division of BankMobile and will continue to operate its two branches. According to Sidhu, the deal allows BankMobile to be a fintech company with a bank charter, and this transaction gives BankMobile room to grow its assets. Why do this transaction instead of selling to a larger buyer as Simple did to BBVA in 2014?

Watch for episode 16 of This Month in Banking to be released on Wednesday, April 26, 2017 and a new episode on the last Wednesday of every month.

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