BankMobile spinoff hits snag, faces possible delay
Customers Bancorp in Wyomissing, Pa., said its planned spinoff of BankMobile has hit snags.
The $11 billion-asset Customers said in a quarterly filing that Flagship Community Bank, which would end up with the digital bank after a complex series of transactions, is withdrawing its application with the Federal Deposit Insurance Corp. to address certain expected questions and comments from the regulator.
Flagship committed to complete and resubmit the application by Sept. 30, which is also the expiration date for completing the BankMobile transfer. Customers noted that Flagship has no obligation to extend the expiration date.
Customers also warned that it might be considered an affiliate of BankMobile after the deal closes. Under that scenario, BankMobile would not qualify for the small debit card issuer exemption under the Durbin amendment, which places caps on interchange fees for banks with $10 billion or more in assets.
Losing the exemption could lead to a “material loss of interchange revenue and may adversely impact the combined company’s ability to attract or retain other white label partners,” the filing said.
Customers agreed in November to a complex deal under which it would sell the digital bank to its shareholders, who will then trade their stakes for shares in Flagship Community Bank in Clearwater, Fla. Flagship would pay about $10 million for BankMobile’s deposits in a separate transaction.