Flagship Community Bank buys BankMobile for $175m
You got owned BankMobile
Florida-based Flagship Community Bank has bought mobile-only BankMobile from Customers Bancorp for $175 million.
As Banking Technology reported last month, BankMobile, which was launched by Customers Bancorp two years ago, was expected to be sold this quarter, according to Customers’ president and CEO, Jay Sidhu.
Customers Bancorp says after accounting for all expenses, the deal is expected to create about $100 million of pre-tax gain.
Frank Burke, chairman, president and CEO of Flagship, says the acquisition “provides us with an opportunity to meaningfully expand our digital banking footprint beyond our Florida markets”.
He adds that BankMobile’s team of over 220 staff members will become part of Flagship.
BankMobile’s core banking processing is done by its parent’s core banking system, Fiserv’s DNA.
The transaction is subject to the receipt of all necessary regulatory and shareholder approvals, financing and other customary closing conditions, and is expected to close in Q3 2017.
BankMobile has over two million customers. It also acquired Higher One, a student loan disbursement company and partner of Customers since 2013.
Customers Bancorp is a $9.6 billion financial institution based in Pennsylvania. Flagship is a much smaller institution, with $112.5 million assets.
