Customers Bank said Thursday that it has opened a loan production office in North Philadelphia with a goal of lending at least $300 million over the next three years. The Phoenixville-based bank said its emphasis will be on affordable lending programs, mortgage lending and small business lending programs targeted particularly to African American, Hispanic and other minority segments of Philadelphia's population.
"There are too many banks around Rittenhouse Square and Market Street in Philadelphia – all trying to go after the wealthy and large businesses," Customers Chairman and CEO Jay S. Sidhu said in a statement. "We believe the best contribution a community bank can make in Philadelphia is to serve the 'underserved' and help with higher percentage home ownership, stronger small businesses and greater availability of affordable lending. That's what creates a stronger economy over a period of time "
Sidhu said the bank has been working on its plans for Philadelphia for about a year. In 2012, the bank said it made about $31 million in mortgage, small business and community development loans in Philadelphia, up about six fold over less than $6 million in 2011. The bank said its goals are to take that figure up to about $80 million in 2013 and well over $100 million by 2015.
"We first wanted to develop our residential mortgage lending group to support our multi-family and small business lending groups," Customers President Richard Ehst said in a statement. "That's done now and we are ready to take off."
Customers also said it already made $25,000 in scholarships to low/moderate income students in Philadelphia and has an application with FHLB in Pittsburgh for a grant of $500,000 to support the Walnut Park Plaza project in Philadelphia.
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