SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2012

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

NOTE 12 - SUBSEQUENT EVENTS  

Customers Bancorp, Inc. announced that, due to market conditions, it postponed its public offering of voting common stock.  Therefore, the Bancorp withdrew its registration statement for the potential $100 million initial public offering on May 8, 2012.  The Bancorp will continue to assess the financial markets for future opportunities to raise capital in the public markets if and when market conditions improve.  Due to the postponement of the public offering of the voting common stock of Customers Bancorp, $817 in related costs were reclassed from surplus to prepaid expense.  In the event that the public offering is not resumed, these costs will need to be expensed.

On May 9, 2012, Customers Bancorp reclassified its' $270 million held to maturity investment portfolio to available for sale.  Due to the strong outlook for loan growth, falling interest rates and our recent decision to postpone its initial public offering of stock, Customers Bancorp decided to proceed with this reclassification to provide liquidity and free up capital to deploy into loan growth.  The reclassification increased total shareholders' equity by $5.3 million associated with the recording of the net security gains on the portfolio, net of tax effects, to accumulated other comprehensive income.  In accordance with regulatory and accounting requirements, Customers Bancorp, Inc. is prohibited from classifying security purchases as held to maturity for a period of two years.