Bank stocks large and small have been hammered since the start of 2016. Jay Sidhu, CEO of Customers Bancorp (CUBI), said his bank is growing just fine, the problem is more macro. 'I think the market is concerned about some possible recessionary issues coming out of global issues as well as certain issues in the United States,' said Sidhu. Customers shares have dropped 16% year-to-date, joining the overall selloff in the sector. Still, Sidhu is telling Wall Street analysts that he plans to grow earnings per share over 20% in 2016. Customers Bank’s average annual compound growth rate in earnings has been over 25% for the past five years. Sidhu said a lack of M&A is also depressing the bank stocks. He said large banks are afraid to get bigger due to regulatory headaches and political rhetoric. And even if they were interested in going shopping for a smaller bank like Customers, which has 14 branches in the Northeast, they would not necessarily get the necessary bang for their bucks. 'When you buy a bank you are buying branches and you are acquiring customers and the big banks are scratching their heads and saying ‘why should I buy something which comes with yesterday’s model when the model of the future is using technology to acquire customers not branches?’' said Sidhu.
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