Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CUBI | |
Entity Registrant Name | Customers Bancorp, Inc. | |
Entity Central Index Key | 1,488,813 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,498,221 |
Consolidated Balance Sheet - Un
Consolidated Balance Sheet - Unaudited - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 9,198 | $ 20,388 |
Interest-earning deposits | 206,213 | 125,935 |
Cash and cash equivalents | 215,411 | 146,323 |
Investment securities, at fair value | 1,181,661 | 471,371 |
Loans held for sale (includes $1,875,515 and $1,795,294, respectively, at fair value) | 1,875,515 | 1,939,485 |
Loans receivable | 6,943,566 | 6,768,258 |
Allowance for loan losses | (39,499) | (38,015) |
Total loans receivable, net of allowance for loan losses | 6,904,067 | 6,730,243 |
FHLB, Federal Reserve Bank, and other restricted stock | 130,302 | 105,918 |
Accrued interest receivable | 31,812 | 27,021 |
Bank premises and equipment, net | 11,556 | 11,955 |
Bank-owned life insurance | 259,222 | 257,720 |
Other real estate owned | 1,742 | 1,726 |
Goodwill and other intangibles | 17,477 | 16,295 |
Other assets | 140,501 | 131,498 |
Total assets | 10,769,266 | 9,839,555 |
Deposits: | ||
Demand, non-interest bearing | 1,260,853 | 1,052,115 |
Interest-bearing | 5,781,606 | 5,748,027 |
Total deposits | 7,042,459 | 6,800,142 |
Federal funds purchased | 195,000 | 155,000 |
FHLB advances | 2,252,615 | 1,611,860 |
Other borrowings | 186,735 | 186,497 |
Subordinated debt | 108,904 | 108,880 |
Accrued interest payable and other liabilities | 64,465 | 56,212 |
Total liabilities | 9,850,178 | 8,918,591 |
Shareholders’ equity: | ||
Preferred stock, par value $1.00 per share; liquidation preference $25.00 per share; 100,000,000 shares authorized, 9,000,000 shares issued and outstanding as of March 31, 2018 and December 31, 2017 | 217,471 | 217,471 |
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 31,996,531 and 31,912,763 shares issued as of March 31, 2018 and December 31, 2017; 31,466,271 and 31,382,503 shares outstanding as of March 31, 2018 and December 31, 2017 | 31,997 | 31,913 |
Additional paid in capital | 424,099 | 422,096 |
Retained earnings | 279,942 | 258,076 |
Accumulated other comprehensive loss, net | (26,188) | (359) |
Treasury stock, at cost (530,260 shares as of March 31, 2018 and December 31, 2017) | (8,233) | (8,233) |
Total shareholders’ equity | 919,088 | 920,964 |
Total liabilities and shareholders’ equity | $ 10,769,266 | $ 9,839,555 |
Consolidated Balance Sheet - U3
Consolidated Balance Sheet - Unaudited (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Loans held for sale at fair value | $ 1,875,515 | $ 1,939,659 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference (usd per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 9,000,000 | 9,000,000 |
Preferred stock, shares outstanding (shares) | 9,000,000 | 9,000,000 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 31,996,531 | 31,912,763 |
Common stock, shares outstanding (shares) | 31,466,271 | 30,820,177 |
Treasury stock, shares (shares) | 530,260 | 530,260 |
Significant Other Observable Inputs (Level 2) | ||
Loans held for sale at fair value | $ 1,875,515 | $ 1,795,294 |
Consolidated Statements of Inco
Consolidated Statements of Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income: | ||
Loans receivable, including fees | $ 66,879 | $ 61,461 |
Loans held for sale | 19,052 | 13,946 |
Investment securities | 8,672 | 5,887 |
Other | 2,361 | 1,800 |
Total interest income | 96,964 | 83,094 |
Interest expense: | ||
Deposits | 19,793 | 14,323 |
Other borrowings | 3,376 | 1,608 |
FHLB advances | 7,080 | 3,060 |
Subordinated debt | 1,684 | 1,685 |
Total interest expense | 31,933 | 20,676 |
Net interest income | 65,031 | 62,418 |
Provision for loan losses | 2,117 | 3,050 |
Net interest income after provision for loan losses | 62,914 | 59,368 |
Non-interest income: | ||
Interchange and card revenue | 9,661 | 13,511 |
Deposit fees | 2,092 | 3,127 |
Bank-owned life insurance | 2,031 | 1,367 |
Mortgage warehouse transactional fees | 1,887 | 2,221 |
Gain on sale of SBA and other loans | 1,361 | 1,328 |
Mortgage banking income | 121 | 155 |
Impairment loss on investment securities | 0 | (1,703) |
Other | 3,757 | 2,748 |
Total non-interest income | 20,910 | 22,754 |
Non-interest expense: | ||
Salaries and employee benefits | 24,925 | 21,112 |
Technology, communication and bank operations | 9,943 | 9,916 |
Professional services | 6,008 | 7,512 |
Occupancy | 2,834 | 2,714 |
FDIC assessments, non-income taxes, and regulatory fees | 2,200 | 1,725 |
Provision for operating losses | 1,526 | 1,646 |
Loan workout | 659 | 521 |
Advertising and promotion | 390 | 326 |
Merger and acquisition related expenses | 106 | 0 |
Other real estate owned expenses (income) | 40 | (55) |
Other | 3,649 | 3,949 |
Total non-interest expense | 52,280 | 49,366 |
Income before income tax expense | 31,544 | 32,756 |
Income tax expense | 7,402 | 7,009 |
Net income (loss) | 24,142 | 25,747 |
Preferred stock dividends | 3,615 | 3,615 |
Net income (loss) available to common shareholders | $ 20,527 | $ 22,132 |
Basic earnings per common share (usd per share) | $ 0.65 | $ 0.73 |
Diluted earnings per common share (usd per share) | $ 0.64 | $ 0.67 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 24,142 | $ 25,747 |
Unrealized losses on available-for-sale debt securities: | ||
Unrealized losses arising during the period | (34,098) | (1,123) |
Income tax effect | 8,865 | 438 |
Net unrealized losses on available-for-sale debt securities | (25,233) | (685) |
Unrealized gains on cash flow hedges: | ||
Unrealized gains arising during the period | 873 | 329 |
Income tax effect | (227) | (128) |
Reclassification adjustment for losses included in net income | 131 | 827 |
Income tax effect | (34) | (323) |
Net unrealized gains on cash flow hedges | 743 | 705 |
Other comprehensive (loss) income, net of income tax effect | (24,490) | 20 |
Comprehensive income (loss) | $ (348) | $ 25,767 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance, preferred stock (shares) at Dec. 31, 2016 | 9,000,000 | ||||||
Beginning balance, common stock (shares) at Dec. 31, 2016 | 30,289,917 | ||||||
Beginning balance at Dec. 31, 2016 | $ 855,872 | $ 217,471 | $ 30,820 | $ 427,008 | $ 193,698 | $ (4,892) | $ (8,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 25,747 | 25,747 | |||||
Other comprehensive income | 20 | 20 | |||||
Preferred stock dividends | (3,615) | (3,615) | |||||
Share-based compensation expense | 1,413 | 1,413 | |||||
Exercise of warrants (shares) | 43,974 | ||||||
Exercise of warrants | 420 | $ 44 | 376 | ||||
Issuance of common stock under share-based compensation arrangements (shares) | 302,436 | ||||||
Issuance of common stock under share-based compensation arrangements | (40) | $ 303 | (343) | ||||
Ending balance, preferred stock (shares) at Mar. 31, 2017 | 9,000,000 | ||||||
Ending balance, common stock (shares) at Mar. 31, 2017 | 30,636,327 | ||||||
Ending balance at Mar. 31, 2017 | 879,817 | $ 217,471 | $ 31,167 | 428,454 | 215,830 | (4,872) | (8,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2018-02 | 0 | 298 | (298) | ||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 | $ 0 | 1,041 | (1,041) | ||||
Beginning balance, preferred stock (shares) at Dec. 31, 2017 | 9,000,000 | 9,000,000 | |||||
Beginning balance, common stock (shares) at Dec. 31, 2017 | 30,820,177 | 31,382,503 | |||||
Beginning balance at Dec. 31, 2017 | $ 920,964 | $ 217,471 | $ 31,913 | 422,096 | 258,076 | (359) | (8,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 24,142 | 24,142 | |||||
Other comprehensive income | (24,490) | (24,490) | |||||
Preferred stock dividends | (3,615) | (3,615) | |||||
Share-based compensation expense | 1,786 | 1,786 | |||||
Exercise of warrants (shares) | 5,242 | ||||||
Exercise of warrants | 112 | $ 5 | 107 | ||||
Issuance of common stock under share-based compensation arrangements (shares) | 78,526 | ||||||
Issuance of common stock under share-based compensation arrangements | $ 189 | $ 79 | 110 | ||||
Ending balance, preferred stock (shares) at Mar. 31, 2018 | 9,000,000 | 9,000,000 | |||||
Ending balance, common stock (shares) at Mar. 31, 2018 | 31,466,271 | 31,466,271 | |||||
Ending balance at Mar. 31, 2018 | $ 919,088 | $ 217,471 | $ 31,997 | $ 424,099 | $ 279,942 | (26,188) | $ (8,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-01 | $ (1,041) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities | ||
Net income | $ 24,142 | $ 25,747 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 2,117 | 3,050 |
Depreciation and amortization | 3,344 | 1,475 |
Share-based compensation expense | 2,218 | 1,829 |
Deferred taxes | 2,684 | (284) |
Net amortization of investment securities premiums and discounts | 375 | 111 |
Unrealized gain recognized on equity securities | (10) | 0 |
Impairment loss on investment securities | 0 | 1,703 |
Gain on sale of SBA and other loans | (1,477) | (1,421) |
Origination of loans held for sale | (6,808,457) | (6,401,005) |
Proceeds from the sale of loans held for sale | 6,728,331 | 6,834,060 |
Amortization of fair value discounts and premiums | 76 | 27 |
Net loss on sales of other real estate owned | 0 | (103) |
Valuation and other adjustments to other real estate owned | 41 | 23 |
Earnings on investment in bank-owned life insurance | (2,031) | (1,367) |
Increase in accrued interest receivable and other assets | (6,806) | (10,827) |
(Decrease) increase in accrued interest payable and other liabilities | 7,347 | (844) |
Net Cash Provided By (Used In) Operating Activities | (48,106) | 452,174 |
Cash Flows from Investing Activities | ||
Proceeds from maturities, calls and principal repayments of securities available for sale | 11,489 | 11,781 |
Purchases of investment securities available for sale | (756,242) | (538,544) |
Net increase in loans | (46,969) | (377,517) |
Proceeds from sales of loans | 16,468 | 105,448 |
Purchase of loans | 0 | (171,839) |
Purchases of bank-owned life insurance | 0 | (50,000) |
Proceeds from bank-owned life insurance | 529 | 0 |
Net (purchases of) proceeds from FHLB, Federal Reserve Bank, and other restricted stock | (24,384) | (16,810) |
Purchases of bank premises and equipment | (268) | (366) |
Proceeds from sales of other real estate owned | 0 | 450 |
Purchase of leased assets under operating leases | (2,755) | 0 |
Net Cash Used In Investing Activities | (802,132) | (1,037,397) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 242,317 | 31,705 |
Net increase in short-term borrowed funds from the FHLB | 640,755 | 337,750 |
Net increase in federal funds purchased | 40,000 | 132,000 |
Preferred stock dividends paid | (3,615) | (3,615) |
Exercise of warrants | 112 | 420 |
Payments of employee taxes withheld from share-based awards | (587) | (2,172) |
Proceeds from issuance of common stock | 344 | 1,716 |
Net Cash Provided By Financing Activities | 919,326 | 497,804 |
Net Increase (Decrease) in Cash and Cash Equivalents | 69,088 | (87,419) |
Cash and Cash Equivalents – Beginning | 146,323 | 264,709 |
Cash and Cash Equivalents – Ending | 215,411 | 177,290 |
Supplementary Cash Flows Information | ||
Interest paid | 29,746 | 17,015 |
Income taxes paid | 4,174 | 2,348 |
Non-cash items: | ||
Transfer of loans to other real estate owned | 57 | 0 |
Transfer of loans held for sale to held for investment | 129,691 | 0 |
Transfer of Portfolio Loans and Leases to Held-for-sale | 129,700 | |
University relationship intangible purchased not settled | $ 1,502 | $ 0 |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Customers Bancorp, Inc. (the “Bancorp” or “Customers Bancorp”) is a bank holding company engaged in banking activities through its wholly owned subsidiary, Customers Bank (the “Bank”), collectively referred to as “Customers” herein. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Customers Bancorp, Inc. and its wholly owned subsidiaries, Customers Bank, and non-bank subsidiaries, serve residents and businesses in Southeastern Pennsylvania (Bucks, Berks, Chester, Philadelphia and Delaware Counties); Rye Brook, New York (Westchester County); Hamilton, New Jersey (Mercer County); Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire (Rockingham County); Manhattan and Melville, New York; Washington, D.C.; Chicago, Illinois; and nationally for certain loan and deposit products. The Bank has 13 full-service branches and provides commercial banking products, primarily loans and deposits. In addition, Customers Bank also administratively supports loan and other financial products to customers through its limited-purpose offices in Boston, Massachusetts, Providence, Rhode Island, Portsmouth, New Hampshire, Manhattan and Melville, New York, Philadelphia, Pennsylvania, Washington, D.C., and Chicago, Illinois. The Bank also provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Through BankMobile, a division of Customers Bank, Customers offers state of the art high tech digital banking services to consumers, students, and the "under banked" nationwide. In October 2017, Customers announced its intent to spin-off its BankMobile business directly to Customers’ shareholders, to be followed by a merger of BankMobile into Flagship Community Bank ("Flagship"), as the most favorable option for disposition of BankMobile to Customers' shareholders rather than selling the business directly to a third party. Until execution of the spin-off and merger transaction, the assets and liabilities of BankMobile will be reported as held and used for all periods presented. Previously, Customers had stated its intention to sell BankMobile and, accordingly, all BankMobile operating results and cash flows for the quarter ended March 31, 2017 were presented as discontinued operations. All prior period amounts have been reclassified to conform with the current period consolidated financial statement presentation. See NOTE 2 SPIN-OFF AND MERGER for more discussion regarding the spin-off and merger transaction. Customers is subject to regulation of the Pennsylvania Department of Banking and Securities and the Federal Reserve Bank and is periodically examined by those regulatory authorities. Customers Bancorp has made certain equity investments through its wholly owned subsidiaries CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd. |
Spin-Off and Merger
Spin-Off and Merger | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Spin-Off and Merger | SPIN-OFF AND MERGER In third quarter 2017, Customers decided that the best strategy for its shareholders to realize the value of the BankMobile business was to divest BankMobile through a spin-off of BankMobile to Customers’ shareholders to be followed by a merger with Flagship Community Bank ("Flagship"). An Amended and Restated Purchase and Assumption Agreement and Plan of Merger (the "Amended Agreement") with Flagship to effect the spin-off and merger and Flagship's related purchase of BankMobile deposits from Customers was executed on November 17, 2017. Per the provisions of the Amended Agreement, the spin-off will be followed by a merger of Customers' BankMobile Technologies, Inc. ("BMT") subsidiary into Flagship, with Customers' shareholders first receiving shares of BMT as a dividend in the spin-off and then receiving shares of Flagship common stock in the merger of BMT into Flagship in exchange for shares of BMT common stock they receive in the spin-off. Flagship will separately purchase BankMobile deposits directly from Customers for cash. Following completion of the spin-off and merger and other transactions contemplated in the Amended Agreement between Customers and Flagship, BMT's shareholders would receive collectively more than 50% of Flagship common stock. The common stock of the merged entities, expected to be called BankMobile, is expected to be listed on a national securities exchange after completion of the transactions. In connection with the signing of the Amended Agreement on November 17, 2017, Customers deposited $1.0 million in an escrow account with a third party to be reserved for payment to Flagship in the event the Amended Agreement is terminated for reasons described in the Amended Agreement. This $1.0 million is considered restricted cash and is presented in cash and cash equivalents in the accompanying March 31, 2018 consolidated balance sheet. The Amended Agreement provides that completion of the transactions will be subject to the receipt of all necessary closing conditions. Customers expects the transaction to close in the third quarter of 2018 . As of and for the three month period ended March 31, 2017, BankMobile met the criteria to be classified as held for sale, and accordingly the operating results and associated cash flows of BankMobile were presented as “Discontinued operations” for the three month period ended March 31, 2017 . However, generally accepted accounting principles require that assets, liabilities, operating results, and cash flows associated with a business to be disposed of through a spin-off/merger transaction should not be reported as held for sale or discontinued operations until execution of the spin-off/merger transaction. As a result, beginning in third quarter 2017, the period in which Customers decided to spin-off BankMobile rather than selling directly to a third party, BankMobile's operating results and cash flows were no longer reported as held for sale or discontinued operations but instead will be reported as held and used. At September 30, 2017, Customers measured the business at the lower of its (i) carrying amount before it was classified as held for sale, adjusted for depreciation and amortization expense that would have been recognized had the business been continuously classified as held and used, or (ii) fair value at the date the decision not to sell was made. Amounts previously reported as discontinued operations for the three month period ended March 31, 2017 have been reclassified to conform with the current period presentation within the accompanying consolidated financial statements as summarized below. Customers will continue reporting the Community Business Banking and BankMobile segment results. See NOTE 12 - BUSINESS SEGMENTS . The following summarizes the effect of the reclassification from held for sale classification to held and used classification on the previously reported consolidated statements of income for the three months ended March 31, 2017 : Three Months Ended March 31, 2017 Effect of Reclassification From Held For Sale to Held and Used (amounts in thousands) As Previously Reported After Reclassification Interest income $ 83,094 $ — $ 83,094 Interest expense 20,670 6 20,676 Net interest income 62,424 (6 ) 62,418 Provision for loan losses 3,050 — 3,050 Non-interest income 5,427 17,327 22,754 Non-interest expenses 30,147 19,219 49,366 Income from continuing operations before income taxes 34,654 (1,898 ) 32,756 Provision for income taxes 7,730 (721 ) 7,009 Net income from continuing operations 26,924 (1,177 ) 25,747 Loss from discontinued operations before income taxes (1,898 ) 1,898 — Income tax benefit from discontinued operations (721 ) 721 — Net loss from discontinued operations (1,177 ) 1,177 — Net income 25,747 — 25,747 Preferred stock dividend 3,615 — 3,615 Net income available to common shareholders $ 22,132 $ — $ 22,132 |
Significant Accounting Policies
Significant Accounting Policies and Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The interim unaudited consolidated financial statements of Customers Bancorp and subsidiaries have been prepared pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2017 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2017 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2017 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 23, 2018 (the "Form 10-K"). That Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Restrictions on Cash and Amounts due from Banks; Business Combinations; Investment Securities; Loan Accounting Framework; Loans Held for Sale and Loans at Fair Value; Loans Receivable; Purchased Loans; Allowance for Loan Losses; Goodwill and Other Intangible Assets; Investments in FHLB, Federal Reserve Bank, and Other Restricted Stock; Other Real Estate Owned; Bank-Owned Life Insurance; Bank Premises and Equipment; Operating Leases; Treasury Stock; Income Taxes; Share-Based Compensation; Transfer of Financial Assets; Business Segments; Derivative Instruments and Hedging; Comprehensive Income (Loss); Earnings per Share; and Loss Contingencies. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Reclassifications As described in NOTE 2 - SPIN-OFF AND MERGER, beginning in third quarter 2017, Customers reclassified BankMobile, a segment previously classified as held for sale, to held and used as it no longer met the held-for-sale criteria. Certain prior period amounts and note disclosures (including NOTE 4 , NOTE 8 and NOTE 10 ) have been reclassified to conform with the current period presentation. Except for these reclassifications, there have been no material changes to Customers' significant accounting policies as disclosed in Customers' Annual Report on Form 10-K for the year ended December 31, 2017 . Presented below are recently issued accounting standards that Customers has adopted as well as those that the Financial Accounting Standards Board (“FASB”) has issued but are not yet effective or that Customers has not yet adopted. Recently Issued Accounting Standards Accounting Standards Adopted on January 1, 2018 Standard Summary of guidance Effects on Financial Statements ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income/(Loss) Allows for reclassification from AOCI to retained earnings for stranded tax effects resulting from the 2017 Tax Cut and Jobs Act. Requires an entity to disclose whether it has elected to reclassify stranded tax effects from AOCI to retained earnings and its policy for releasing income tax effects from AOCI. Effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. Customers early adopted on January 1, 2018. The adoption resulted in the reclassification of $0.3 million in stranded tax effects in Customers' AOCI related to net unrealized losses on its available-for-sale securities and cash flow hedges. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued February 2018 ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities Aligns the entity's risk management activities and financial reporting for hedging relationships. Amends the existing hedge accounting model and expands an entity's ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest-rate risk. Eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedge item. Changes certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. Effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. Customers early adopted on January 1, 2018. With the early adoption, Customers is now able to pursue additional hedging strategies including the ability to apply fair value hedge accounting to a specified pool of assets by excluding the portion of the hedged items related to prepayments, defaults and other events. These additional hedging strategies will allow Customers to better align its accounting and the financial reporting of its hedging activities with its economic objectives thereby reducing the earnings volatility resulting from these hedging activities. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Customers has updated its disclosures in NOTE 11 - DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES as a result of early adopting this ASU. Issued August 2017 ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting Clarifies when to account for a change to the terms or conditions of a share-based-payment award as a modification in ASC 718. Provides that modification accounting is only required if the fair value, vesting conditions, or the classification of the award as equity or a liability changes as a result of the change in terms or conditions. Effective January 1, 2018 on a prospective basis for awards modified on or after the adoption date. Customers adopted on January 1, 2018. Customers generally does not modify the terms or conditions of its share-based-payment awards. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued May 2017 ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Clarifies the scope and application of the accounting guidance on the sale of nonfinancial assets to non-customers, including partial sales. Clarifies that if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. Effective January 1, 2018 on a prospective basis. Customers adopted on January 1, 2018. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued February 2017 ASU 2017-01, Clarifying the Definition of a Business Narrows the definition of a business and clarifies that to be considered a business, the fair value of gross assets acquired (or disposed of) should not be concentrated in a single identifiable asset or a group of similar identifiable assets. Also clarifies that in order to be considered a business, an acquisition would have to include an input and a substantive process that together will significantly contribute to the ability to create an output. Effective January 1, 2018 on a prospective basis. Customers adopted on January 1, 2018. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued January 2017 Accounting Standards Adopted on January 1, 2018 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2016-18, Statement of Cash Flows: Restricted Cash Requires inclusion of restricted cash in cash and cash equivalents when reconciling the beginning-of-period total amounts shown on the statement of cash flows. Effective January 1, 2018 and requires retrospective application to all periods presented. Customers adopted on January 1, 2018. The adoption did not result in any significant impact on Customers' consolidated financial statements, including its consolidated statement of cash flows, and therefore did not result in a retrospective application. Issued November 2016 ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Eliminates the current exception for all intra-entity transfers of an asset other than inventory that requires deferral of the tax effects until the asset is sold to a third party or otherwise recovered through use. Effective January 1, 2018 on a modified retrospective basis. Customers adopted on January 1, 2018. The adoption of the ASU did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued October 2016 ASU 2016-15, Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments Aims to reduce the existing diversity in practice with regards to the classification of the following specific items in the statement of cash flows: 1. Cash payments for debt prepayment or extinguishment costs will be classified as an operating activity, while the portion of the payment attributable to principal will be classified as a financing activity. 2. Cash paid by an acquirer soon after a business combination for the settlement of a contingent consideration liability recognized at the acquisition date will be classified in investing activities. 3. Cash proceeds received from the settlement of insurance claims will be classified on the basis of the related insurance coverage (i.e., the nature of the loss). 4. Cash proceeds received from the settlement of bank-owned life insurance policies will be classified as cash inflows from investing activities. 5. A transferor's beneficial interest obtained in a securitization of financial assets will be disclosed as a non-cash activity, and cash received from beneficial interests will be classified in investing activities. Effective January 1, 2018 and requires retrospective application to all periods presented. Customers adopted on January 1, 2018. The adoption did not result in any significant impact on Customers' consolidated financial statements, including its consolidated statement of cash flows, and therefore it did not result in a retrospective application. Issued August 2016 Accounting Standards Adopted on January 1, 2018 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2016-04, Liabilities - Extinguishment of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products Requires issuers of prepaid stored-value products (such as gift cards, telecommunication cards, and traveler's checks), to derecognize the financial liability related to those products for breakage. Breakage is the value of prepaid stored-value products that is not redeemed by consumers for goods, services or cash. The amendments in this ASU provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606. Effective January 1, 2018 on a modified retrospective basis. Customers adopted on January 1, 2018. The adoption of this ASU did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued March 2016 ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities Requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income. Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. Eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. Clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. Effective January 1, 2018 on a modified retrospective basis. Customers adopted on January 1, 2018 using a modified retrospective approach. The adoption of this ASU resulted in a cumulative-effect adjustment that resulted in a $1.0 million reduction in AOCI and a corresponding increase in retained earnings for the same amount. The $1.0 million represented the net unrealized gain on Customers' investment in Religare equity securities at December 31, 2017, as disclosed in NOTE 6 - INVESTMENT SECURITIES. Customers also refined its calculation to determine the fair value of its held-for- investment loan portfolio for disclosure purposes using an exit price notion as part of adopting this ASU. The refined calculation did not have a significant impact on Customers' fair value disclosures. Issued January 2016 Accounting Standards Adopted on January 1, 2018 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Issued May 2014 Supersedes the revenue recognition requirements in ASC 605. Requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 605. Reframed the structure of the indicators of when an entity is acting as an agent and focused on evidence that an entity is acting as the principal or agent in a revenue transaction. Requires additional qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1 , 2018 and can be either applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption (modified retrospective approach). Customers adopted on January 1, 2018 on a modified retrospective basis. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), Customers concluded that the new guidance did not have a material impact on the elements of its consolidated statements of operations most closely associated with leases and financial instruments (such as interest income, interest expense and securities gain). Customers has identified its deposit-related fees, service charges, debit and prepaid card interchange income and university fees to be within the scope of the standard. Customers has also completed its review of the related contracts and its evaluation of certain costs related to these revenue streams and determined that its debit and prepaid card interchange income, previously reported on a gross basis for periods prior to adoption, will need to be presented on a net basis under this ASU, as Customers is the agent. The adoption of this ASU, did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Additional discussion related to the adoption and the required quantitative and qualitative disclosures are included in NOTE 13 - NON-INTEREST REVENUES. Accounting Standards Issued But Not Yet Adopted Standard Summary of guidance Effects on Financial Statements ASU 2018-03 Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10) Clarifies certain aspects of the guidance issued in ASU 2016-01 including: the ability to irrevocably elect to change the measurement approach for equity securities measured using the practical expedient (at cost plus or minus observable transactions less impairment) to a fair value method in accordance with ASC 820, Fair Value Measurement. Provides clarification that if an observable transaction occurs for such securities, the adjustment is as of the observable transaction date. Effective July 1, 2018 on a prospective basis with early adoption permitted. Customers currently does not have any significant equity securities without readily determinable fair values and, accordingly, does not expect the adoption of this ASU to have a significant impact on its financial condition, results of operations and consolidated financial statements; however, Customers will continue to evaluate the potential impact of this ASU through the adoption date. Issued February 2018 ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features Changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity's own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) would no longer be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of net income available to common shareholders in basic earnings per share ("EPS"). Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Customers currently does not have any equity-linked financial instruments (or embedded features) with down round features and, accordingly, does not expect the adoption of this ASU to have a significant impact on its financial condition, results of operations and consolidated financial statements; however, Customers will continue to evaluate the potential impact of this ASU through the adoption date. Issued July 2017 ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities Requires that premiums for certain callable debt securities held be amortized to their earliest call date. Effective for Customers beginning after December 15, 2018, with early adoption permitted. Adoption of this new guidance must be applied on a modified retrospective approach. Customers currently has an immaterial amount of callable debt securities purchased at a premium and, accordingly, does not expect the adoption of this ASU to have a significant impact on its financial condition, results of operations and consolidated financial statements; however, Customers will continue to evaluate the potential impact through the adoption date. Issued March 2017 Accounting Standards Issued But Not Yet Adopted (continued) Standard Summary of guidance Effects on Financial Statements ASU 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset (including HTM securities), presents the net amount expected to be collected on the financial asset. Replaces today's "incurred loss" approach and is expected to result in earlier recognition of credit losses. For available-for-sale debt securities, entities will be required to record allowances for credit losses rather than reduce the carrying amount, as they do today under the OTTI model, and will be allowed to reverse previously established allowances in the event the credit of the issuer improves. Simplifies the accounting model for purchased credit-impaired debt securities and loans. Effective beginning after December 15, 2019 with early adoption permitted. Adoption can be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Customers is currently evaluating the impact of this ASU, initiating implementation efforts across the company and planning for loss modeling requirements consistent with lifetime expected loss estimates. Customers expects that the new model will include different assumptions used in calculating credit losses, such as estimating losses over the estimated life of a financial asset and will consider expected future changes in macroeconomic conditions. The adoption of this ASU may result in an increase to Customers' allowance for loan losses which will depend upon the nature and characteristics of Customers' loan portfolio at the adoption date, as well as the macroeconomic conditions and forecasts at that date. Customers currently does not intend to early adopt this new guidance. Issued June 2016 ASU 2016-02, Leases Supersedes the current lease accounting guidance for both lessees and lessors under ASC 840, Leases. From the lessee's perspective, the new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for lessees. This ASU will require lessors to account for leases using an approach that is substantially similar to the existing guidance for sales-type, direct financing leases and operating leases. Effective beginning after December 15, 2018 with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Customers is currently evaluating the impact of this ASU on its financial condition and results of operations and expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of unpaid lease payments as of the date of adoption. Customers does not intend to early adopt this ASU. Issued February 2016 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following are the components and results of Customers' earnings per common share calculations for the periods presented. Three Months Ended 2018 2017 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 20,527 $ 22,132 Weighted-average number of common shares outstanding - basic 31,424,496 30,407,060 Share-based compensation plans 840,561 2,344,929 Warrants 8,916 37,171 Weighted-average number of common shares - diluted 32,273,973 32,789,160 Basic earnings per common share $ 0.65 $ 0.73 Diluted earnings per common share $ 0.64 $ 0.67 The following is a summary of securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive for the periods presented. Three Months Ended 2018 2017 Anti-dilutive securities: Share-based compensation awards 1,059,225 — Warrants — 52,242 Total anti-dilutive securities 1,059,225 52,242 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) By Component | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT The following tables present the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2018 and 2017 . All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. Three Months Ended March 31, 2018 Available-for-sale securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Total Balance - December 31, 2017 $ (249 ) $ 88 $ (161 ) $ (198 ) $ (359 ) Reclassification of the income tax effects of the Tax Cuts and Jobs Act (1) (256 ) — (256 ) (42 ) (298 ) Reclassification of net unrealized gains on equity securities (1) (953 ) (88 ) (1,041 ) — (1,041 ) Balance after reclassification adjustments on January 1, 2018 (1,458 ) — (1,458 ) (240 ) (1,698 ) Other comprehensive income (loss) before reclassifications (25,233 ) — (25,233 ) 646 (24,587 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) — — — 97 97 Net current-period other comprehensive income (loss) (25,233 ) — (25,233 ) 743 (24,490 ) Balance - March 31, 2018 $ (26,691 ) $ — $ (26,691 ) $ 503 $ (26,188 ) (1) Amounts reclassified from accumulated other comprehensive income (loss) on January 1, 2018 as a result of the adoption of ASU 2018-02 and ASU 2016-01 resulted in a decrease in accumulated other comprehensive income of $1.3 million and a corresponding increase in retained earnings for the same amount. See NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for more information. (2) Reclassification amounts for available-for-sale securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. Three Months Ended March 31, 2017 Available-for-sale securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Total Balance - December 31, 2016 $ (2,681 ) $ — $ (2,681 ) $ (2,211 ) $ (4,892 ) Other comprehensive income (loss) before reclassifications (685 ) — (685 ) 201 (484 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (1) — — — 504 504 Net current-period other comprehensive income (loss) (685 ) — (685 ) 705 20 Balance - March 31, 2017 $ (3,366 ) $ — $ (3,366 ) $ (1,506 ) $ (4,872 ) (1) Reclassification amounts for available-for-sale securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of March 31, 2018 and December 31, 2017 are summarized in the tables below: March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale Debt Securities: Agency-guaranteed residential mortgage-backed securities $ 505,113 $ — $ (11,856 ) $ 493,257 Agency-guaranteed commercial real estate mortgage-backed securities 334,643 — (10,109 ) 324,534 Corporate notes 374,611 947 (15,050 ) 360,508 Available for Sale Debt Securities $ 1,214,367 $ 947 $ (37,015 ) 1,178,299 Equity Securities (1) 3,362 Total Investment Securities, at Fair Value $ 1,181,661 (1) Includes equity securities issued by a foreign entity that are being measured at fair value with changes in fair value recognized directly in earnings effective January 1, 2018 as a result of adopting ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (see NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for additional information related to the adoption of this new standard). December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 186,221 $ 36 $ (2,799 ) $ 183,458 Agency-guaranteed commercial real estate mortgage-backed securities 238,809 432 (769 ) 238,472 Corporate notes (1) 44,959 1,130 — 46,089 Equity securities (2) 2,311 1,041 — 3,352 Total Available for Sale Securities, at Fair Value $ 472,300 $ 2,639 $ (3,568 ) $ 471,371 (1) Includes subordinated debt issued by other bank holding companies. (2) Includes equity securities issued by a foreign entity. There were no sales of securities during the three month periods ended March 31, 2018 and 2017. The following table shows debt investment securities by stated maturity. Investment securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date: March 31, 2018 Amortized Cost Fair Value (amounts in thousands) Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 119,980 117,332 Due after ten years 254,631 243,176 Agency-guaranteed residential mortgage-backed securities 505,113 493,257 Agency-guaranteed commercial real estate mortgage-backed securities 334,643 324,534 Total debt securities $ 1,214,367 $ 1,178,299 Gross unrealized losses and fair value of Customers' available for sale debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale Debt Securities: Agency-guaranteed residential mortgage-backed securities $ 430,735 $ (8,161 ) $ 62,522 $ (3,695 ) $ 493,257 $ (11,856 ) Agency-guaranteed commercial real estate mortgage-backed securities 318,635 (9,831 ) 5,899 (278 ) 324,534 (10,109 ) Corporate notes 309,601 (15,050 ) — — 309,601 (15,050 ) Total $ 1,058,971 $ (33,042 ) $ 68,421 $ (3,973 ) $ 1,127,392 $ (37,015 ) December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale Debt Securities: Agency-guaranteed residential mortgage-backed securities $ 104,861 $ (656 ) $ 66,579 $ (2,143 ) $ 171,440 $ (2,799 ) Agency-guaranteed commercial real estate mortgage-backed securities 115,970 (740 ) 6,151 (29 ) 122,121 (769 ) Total $ 220,831 $ (1,396 ) $ 72,730 $ (2,172 ) $ 293,561 $ (3,568 ) At March 31, 2018 , there were sixty-two available-for-sale debt investment securities in the less-than-twelve-month category and sixteen available-for-sale debt investment securities in the twelve-month-or-more category. The unrealized losses on the mortgage-backed securities are guaranteed by government-sponsored entities and primarily relate to changes in market interest rates. The unrealized losses on the corporate notes relate to securities with no company specific concentration. The unrealized losses were due to an upward shift in interest rates that resulted in a negative impact on the respective notes pricing. All amounts related to the mortgage-backed securities and the corporate notes are expected to be recovered when market prices recover or at maturity. Customers does not intend to sell these securities and it is not more likely than not that Customers will be required to sell the securities before recovery of the amortized cost basis. During the three month period ended March 31, 2017, Customers recorded other-than-temporary impairment losses of $1.7 million related to its equity holdings in Religare for the full amount of the decline in fair value from the cost basis established at December 31, 2016 through March 31, 2017 because Customers no longer had the intent to hold these securities until a recovery in fair value. At December 31, 2017, the fair value of the Religare equity securities was $3.4 million which resulted in an unrealized gain of $1.0 million being recognized in accumulated other comprehensive income with no adjustment for deferred taxes as Customers currently does not have a tax strategy in place capable of generating sufficient capital gains to utilize any capital losses resulting from the Religare investment. As described in NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION, the adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, on January 1, 2018 resulted in a cumulative effect adjustment to Customers' consolidated balance sheet with a $1.0 million reduction in accumulated other comprehensive income and a corresponding increase in retained earnings related to the December 31, 2017 unrealized gain on the Religare equity securities. In accordance with the new accounting guidance, changes in the fair value of the Religare equity securities from December 31, 2017 through March 31, 2018 were recorded directly in earnings, which resulted in an unrealized gain of $10 thousand being recognized in other non-interest income in the accompanying consolidated statements of income. At March 31, 2018 and December 31, 2017 , Customers Bank had pledged investment securities aggregating $701.5 million and $16.9 million in fair value, respectively, as collateral against its borrowings primarily with the FHLB and an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities. |
Loans Held for Sale
Loans Held for Sale | 3 Months Ended |
Mar. 31, 2018 | |
Receivables Held-for-sale [Abstract] | |
Loans Held for Sale | LOANS HELD FOR SALE The composition of loans held for sale as of March 31, 2018 and December 31, 2017 was as follows: March 31, 2018 December 31, 2017 (amounts in thousands) Commercial loans: Mortgage warehouse loans, at fair value $ 1,874,853 $ 1,793,408 Multi-family loans at lower of cost or fair value — 144,191 Total commercial loans held for sale 1,874,853 1,937,599 Consumer loans: Residential mortgage loans, at fair value 662 1,886 Loans held for sale $ 1,875,515 $ 1,939,485 Commercial loans held for sale consists predominately of commercial loans to mortgage companies (i.e., mortgage warehouse loans). These mortgage warehouse lending transactions are subject to master repurchase agreements and are designated as held for sale and reported at fair value based on an election made to account for the loans at fair value. Pursuant to the agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded loans (i.e., the purchase event) and receives proceeds directly from third party investors when the loans are sold into the secondary market (i.e., the sale event). The fair value of the mortgage warehouse loans is estimated as the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The interest rates on these loans are variable, and the lending transactions are short-term, with an average life of 21 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. Effective March 31, 2018, Customers Bank transferred $129.7 million of multi-family loans from loans held for sale to loan receivable (held for investment) because the Bank no longer has the intent to sell these loans. Customers Bank transferred these loans at their carrying value, which approximated their fair value at the time of transfer. On June 30, 2017, Customers Bank transferred $150.6 million of multi-family loans from held for investment to loans held for sale. Customers Bank transferred these loans at their carrying value, which was lower than the estimated fair value at the time of transfer. At December 31, 2017, the carrying value of these loans approximated their fair value. Accordingly, a lower of cost or fair value adjustment was not recorded as of December 31, 2017. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The following table presents loans receivable as of March 31, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 (amounts in thousands) Commercial: Multi-family $ 3,645,374 $ 3,502,381 Commercial and industrial (including owner occupied commercial real estate) 1,704,791 1,633,818 Commercial real estate non-owner occupied 1,195,904 1,218,719 Construction 81,101 85,393 Total commercial loans 6,627,170 6,440,311 Consumer: Residential real estate 225,839 234,090 Manufactured housing 87,687 90,227 Other 3,570 3,547 Total consumer loans 317,096 327,864 Total loans receivable 6,944,266 6,768,175 Deferred (fees)/costs and unamortized (discounts)/premiums, net (700 ) 83 Allowance for loan losses (39,499 ) (38,015 ) Loans receivable, net of allowance for loan losses $ 6,904,067 $ 6,730,243 The following tables summarize loans receivable by loan type and performance status as of March 31, 2018 and December 31, 2017 : March 31, 2018 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 3,643,539 $ 1,835 $ 3,645,374 Commercial and industrial 129 — 129 14,220 1,187,571 721 1,202,641 Commercial real estate - owner occupied — — — 1,437 490,277 10,436 502,150 Commercial real estate - non-owner occupied — — — 242 1,190,591 5,071 1,195,904 Construction — — — — 81,101 — 81,101 Residential real estate 4,490 — 4,490 5,216 210,825 5,308 225,839 Manufactured housing (5) 3,444 2,746 6,190 1,979 77,042 2,476 87,687 Other consumer 75 — 75 97 3,148 250 3,570 Total $ 8,138 $ 2,746 $ 10,884 $ 23,191 $ 6,884,094 $ 26,097 $ 6,944,266 December 31, 2017 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ 4,900 $ — $ 4,900 $ — $ 3,495,600 $ 1,881 $ 3,502,381 Commercial and industrial 103 — 103 17,392 1,130,831 764 1,149,090 Commercial real estate - owner occupied 202 — 202 1,453 472,501 10,572 484,728 Commercial real estate - non-owner occupied 93 — 93 160 1,213,216 5,250 1,218,719 Construction — — — — 85,393 — 85,393 Residential real estate 7,628 — 7,628 5,420 215,361 5,681 234,090 Manufactured housing (5) 4,028 2,743 6,771 1,959 78,946 2,551 90,227 Other consumer 116 — 116 31 3,184 216 3,547 Total $ 17,070 $ 2,743 $ 19,813 $ 26,415 $ 6,695,032 $ 26,915 $ 6,768,175 (1) Includes past due loans that are accruing interest because collection is considered probable. (2) Loans where next payment due is less than 30 days from the report date. (3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. As of March 31, 2018 and December 31, 2017, the Bank had $0.3 million , respectively, of residential real estate held in other real estate owned. As of March 31, 2018 and December 31, 2017, the Bank had initiated foreclosure proceedings on $1.2 million and $1.6 million , respectively, in loans secured by residential real estate. Allowance for loan losses The changes in the allowance for loan losses for the three months ended March 31, 2018 and 2017 , and the loans and allowance for loan losses by loan class based on impairment-evaluation method as of March 31, 2018 and December 31, 2017 are presented in the tables below. Three Months Ended March 31, 2018 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, December 31, 2017 $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 Charge-offs — (50 ) (18 ) — — (365 ) — (256 ) (689 ) Recoveries — 35 — — 11 7 — 3 56 Provision for loan losses 377 834 311 (204 ) (69 ) 608 (4 ) 264 2,117 Ending Balance, March 31, 2018 $ 12,545 $ 11,737 $ 3,525 $ 7,233 $ 921 $ 3,179 $ 176 $ 183 $ 39,499 As of March 31, 2018 Loans: Individually evaluated for impairment $ — $ 14,288 $ 1,483 $ 242 $ — $ 8,242 $ 10,108 $ 97 $ 34,460 Collectively evaluated for impairment 3,643,539 1,187,632 490,231 1,190,591 81,101 212,289 75,103 3,223 6,883,709 Loans acquired with credit deterioration 1,835 721 10,436 5,071 — 5,308 2,476 250 26,097 $ 3,645,374 $ 1,202,641 $ 502,150 $ 1,195,904 $ 81,101 $ 225,839 $ 87,687 $ 3,570 $ 6,944,266 Allowance for loan losses: Individually evaluated for impairment $ — $ 986 $ 764 $ — $ — $ 365 $ 4 $ — $ 2,119 Collectively evaluated for impairment 12,545 10,300 2,751 4,512 921 2,274 82 125 33,510 Loans acquired with credit deterioration — 451 10 2,721 — 540 90 58 3,870 $ 12,545 $ 11,737 $ 3,525 $ 7,233 $ 921 $ 3,179 $ 176 $ 183 $ 39,499 Three Months Ended March 31, 2017 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, December 31, 2016 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Charge-offs — (198 ) — (404 ) — (221 ) — (20 ) (843 ) Recoveries — 215 — — 81 21 — 44 361 Provision for loan losses 681 1,942 211 357 (36 ) (62 ) (2 ) (41 ) 3,050 Ending Balance, March 31, 2017 $ 12,283 $ 13,009 $ 2,394 $ 7,847 $ 885 $ 3,080 $ 284 $ 101 $ 39,883 As of December 31, 2017 Loans: Individually evaluated for impairment $ — $ 17,461 $ 1,448 $ 160 $ — $ 9,247 $ 10,089 $ 30 $ 38,435 Collectively evaluated for impairment 3,500,500 1,130,865 472,708 1,213,309 85,393 219,162 77,587 3,301 6,702,825 Loans acquired with credit deterioration 1,881 764 10,572 5,250 — 5,681 2,551 216 26,915 $ 3,502,381 $ 1,149,090 $ 484,728 $ 1,218,719 $ 85,393 $ 234,090 $ 90,227 $ 3,547 $ 6,768,175 Allowance for loan losses: Individually evaluated for impairment $ — $ 650 $ 642 $ — $ — $ 155 $ 4 $ — $ 1,451 Collectively evaluated for impairment 12,168 9,804 2,580 4,630 979 2,177 82 117 32,537 Loans acquired with credit deterioration — 464 10 2,807 — 597 94 55 4,027 $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 Certain manufactured housing loans were purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the purchase agreement for defaults of the underlying borrower and other specified items. At March 31, 2018 and December 31, 2017 , funds available for reimbursement, if necessary, were $0.6 million , respectively. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio. Impaired Loans - Individually Evaluated for Impairment The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for impaired loans that were individually evaluated for impairment as of March 31, 2018 and December 31, 2017 and the average recorded investment and interest income recognized for the three months ended March 31, 2018 and 2017 . Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. March 31, 2018 Three Months Ended March 31, 2018 Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no recorded allowance: Commercial and industrial $ 5,830 $ 6,029 $ — $ 7,484 $ — Commercial real estate owner occupied 614 614 — 710 — Commercial real estate non-owner occupied 242 353 — 201 — Other consumer 97 97 — 63 — Residential real estate 3,617 3,788 — 3,623 — Manufactured housing 9,886 9,886 — 9,876 131 With an allowance recorded: Commercial and industrial 8,458 8,642 986 8,390 1 Commercial real estate owner occupied 869 869 764 756 1 Residential real estate 4,625 4,662 365 5,122 25 Manufactured housing 222 222 4 223 — Total $ 34,460 $ 35,162 $ 2,119 $ 36,448 $ 158 December 31, 2017 Three Months Ended March 31, 2017 Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no recorded allowance: Commercial and industrial $ 9,138 $ 9,287 $ — $ 4,248 $ 50 Commercial real estate owner occupied 806 806 — 1,435 15 Commercial real estate non-owner occupied 160 272 — 1,794 2 Other consumer 30 30 — 57 — Residential real estate 3,628 3,801 — 4,502 1 Manufactured housing 9,865 9,865 — 9,833 141 With an allowance recorded: Commercial and industrial 8,323 8,506 650 8,837 81 Commercial real estate - owner occupied 642 642 642 844 1 Commercial real estate non-owner occupied — — — 138 — Residential real estate 5,619 5,656 155 2,597 39 Manufactured housing 224 224 4 102 3 Total $ 38,435 $ 39,089 $ 1,451 $ 34,387 $ 333 Troubled Debt Restructurings At March 31, 2018 and December 31, 2017 , there were $19.0 million and $20.4 million , respectively, in loans reported as troubled debt restructurings (“TDRs”). TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if it satisfies a minimum performance requirement of six months , however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Modification of purchased-credit-impaired loans that are accounted for within loan pools in accordance with the accounting standards for purchased-credit-impaired loans do not result in the removal of these loans from the pool even if the modifications would otherwise be considered a TDR. Accordingly, as each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, modifications of loans within such pools are not considered TDRs. The following table presents total TDRs based on loan type and accrual status at March 31, 2018 and December 31, 2017. Nonaccrual TDRs are included in the reported amount of total non-accrual loans. March 31, 2018 December 31, 2017 Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total (amounts in thousands) Commercial and industrial $ 68 $ 5,519 $ 5,587 $ 63 $ 5,939 $ 6,002 Commercial real estate owner occupied 45 — 45 — — — Manufactured housing 8,130 1,787 9,917 8,130 1,766 9,896 Residential real estate 3,026 463 3,489 3,828 703 4,531 Total TDRs $ 11,269 $ 7,769 $ 19,038 $ 12,021 $ 8,408 $ 20,429 The following table presents loans modified in a troubled debt restructuring by type of concession for the three months ended March 31, 2018 and 2017 . There were no modifications that involved forgiveness of debt. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Number Recorded Number Recorded (dollars in thousands) Extensions of maturity — $ — 1 $ 348 Interest-rate reductions 9 322 20 855 Total 9 $ 322 21 $ 1,203 The following table provides, by loan type, the number of loans modified in troubled debt restructurings, and the related recorded investment, during the three months ended March 31, 2018 and 2017 . Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Number Recorded Number Recorded (dollars in thousands) Commercial and industrial — $ — 1 $ 348 Manufactured housing 9 322 20 855 Total loans 9 $ 322 21 $ 1,203 As of March 31, 2018 , there were no additional commitments to lend additional funds to debtors whose loans have been modified in TDRs. As of December 31, 2017, except for one commercial and industrial loan with an outstanding commitment of $2.1 million , there were no other commitments to lend additional funds to debtors whose loans have been modified in TDRs. As of March 31, 2018 , one manufactured housing loan totaling $29 thousand that was modified in a TDR within the past twelve months, defaulted on payments. As of March 31, 2017 , five manufactured housing loans totaling $0.2 million , that were modified in TDRs within the past twelve months, defaulted on payments. Loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for loan losses. There was no allowance recorded as a result of TDR modifications during the three months ended March 31, 2018 . For the three months ended March 31, 2017, there was one allowance recorded resulting from TDR modifications, totaling $1 thousand for one manufactured housing loan. Purchased Credit Impaired Loans The changes in accretable yield related to purchased-credit-impaired loans for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 (amounts in thousands) Accretable yield balance as of December 31, $ 7,825 $ 10,202 Accretion to interest income (338 ) (493 ) Reclassification from nonaccretable difference and disposals, net 176 (333 ) Accretable yield balance as of March 31, $ 7,663 $ 9,376 Credit Quality Indicators Multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, and construction loans are rated based on an internally assigned risk rating system which is assigned at the time of loan origination and reviewed on a periodic, or on an “as needed” basis. Residential real estate loans, manufactured housing and other consumer loans are evaluated based on the payment activity of the loan. To facilitate the monitoring of credit quality within the multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, construction and residential real estate classes, and for purposes of analyzing historical loss rates used in the determination of the allowance for loan losses for the respective loan portfolio class, the Bank utilizes the following categories of risk ratings: pass/satisfactory (includes risk rating 1 through 6), special mention, substandard, doubtful, and loss. The risk rating categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass/satisfactory ratings, which are assigned to those borrowers who do not have identified potential or well-defined weaknesses and for whom there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. While assigning risk ratings involves judgment, the risk-rating process allows management to identify riskier credits in a timely manner and allocate the appropriate resources to manage those loans. The risk rating grades are defined as follows: “1” – Pass / Excellent Loans rated 1 represent a credit extension of the highest quality. The borrower’s historic (at least five years) cash flows manifest extremely large and stable margins of coverage. Balance sheets are conservative, well capitalized, and liquid. After considering debt service for proposed and existing debt, projected cash flows continue to be strong and provide ample coverage. The borrower typically reflects broad geographic and product diversification and has access to alternative financial markets. “2” – Pass / Superior Loans rated 2 are those for which the borrower has a strong financial condition, balance sheet, operations, cash flow, debt capacity and coverage with ratios better than industry norms. The borrowers of these loans exhibit a limited leverage position, are virtually immune to local economies, and are in stable growing industries. The management team is well respected and the company has ready access to public markets. “3” – Pass / Strong Loans rated 3 are those loans for which the borrowers have above average financial condition and flexibility; more than satisfactory debt service coverage; balance sheet and operating ratios are consistent with or better than industry peers; operate in industries with little risk; move in diversified markets; and are experienced and competent in their industry. These borrowers’ access to capital markets is limited mostly to private sources, often secured, but the borrower typically has access to a wide range of refinancing alternatives. “4” – Pass / Good Loans rated 4 have a sound primary and secondary source of repayment. The borrower may have access to alternative sources of financing, but sources are not as widely available as they are to a higher grade borrower. These loans carry a normal level of risk, with very low loss exposure. The borrower has the ability to perform according to the terms of the credit facility. The margins of cash flow coverage are satisfactory but vulnerable to more rapid deterioration than the higher quality loans. “5” – Satisfactory Loans rated 5 are extended to borrowers who are determined to be a reasonable credit risk and demonstrate the ability to repay the debt from normal business operations. Risk factors may include reliability of margins and cash flows, liquidity, dependence on a single product or industry, cyclical trends, depth of management, or limited access to alternative financing sources. The borrower’s historical financial information may indicate erratic performance, but current trends are positive and the quality of financial information is adequate, but is not as detailed and sophisticated as information found on higher grade loans. If adverse circumstances arise, the impact on the borrower may be significant. “6” – Satisfactory / Bankable with Care Loans rated 6 are those for which the borrower has higher than normal credit risk; however, cash flow and asset values are generally intact. These borrowers may exhibit declining financial characteristics, with increasing leverage and decreasing liquidity and may have limited resources and access to financial alternatives. Signs of weakness in these borrowers may include delinquent taxes, trade slowness and eroding profit margins. “7” – Special Mention Loans rated 7 are credit facilities that may have potential developing weaknesses and deserve extra attention from the account manager and other management personnel. In the event potential weaknesses are not corrected or mitigated, deterioration in the ability of the borrower to repay the debt in the future may occur. This grade is not assigned to loans that bear certain peculiar risks normally associated with the type of financing involved, unless circumstances have caused the risk to increase to a level higher than would have been acceptable when the credit was originally approved. Loans where significant actual, not potential, weaknesses or problems are clearly evident are graded in the category below. “8” – Substandard Loans are rated 8 when the loans are inadequately protected by the current sound worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the company will sustain some loss if the weaknesses are not corrected. “9” – Doubtful The Bank assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. “10” – Loss The Bank assigns a loss rating to loans considered uncollectible and of such little value that their continuance as an active asset is not warranted. Amounts classified as loss are immediately charged off. Risk ratings are not established for certain consumer loans, including residential real estate, home equity, manufactured housing, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based upon aggregate payment history through the monitoring of delinquency levels and trends and are classified as performing and non-performing. The following tables present the credit ratings of loans receivable as of March 31, 2018 and December 31, 2017 . March 31, 2018 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 3,608,179 $ 1,161,401 $ 485,423 $ 1,178,454 $ 81,101 $ — $ — $ — $ 6,514,558 Special Mention 29,634 12,751 8,208 16,356 — — — — 66,949 Substandard 7,561 28,489 8,519 1,094 — — — — 45,663 Performing (1) — — — — — 216,133 79,518 3,398 299,049 Non-performing (2) — — — — — 9,706 8,169 172 18,047 Total $ 3,645,374 $ 1,202,641 $ 502,150 $ 1,195,904 $ 81,101 $ 225,839 $ 87,687 $ 3,570 $ 6,944,266 December 31, 2017 Multi-family Commercial Commercial Commercial Real Estate Non-Owner Occupied Construction Residential Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 3,438,554 $ 1,118,889 $ 471,826 $ 1,185,933 $ 85,393 $ — $ — $ 6,300,595 Special Mention 53,873 7,652 5,987 31,767 — — — — 99,279 Substandard 9,954 22,549 6,915 1,019 — — — 40,437 Performing (1) — — — — — 221,042 81,497 3,400 305,939 Non-performing (2) — — — — — 13,048 8,730 147 21,925 Total $ 3,502,381 $ 1,149,090 $ 484,728 $ 1,218,719 $ 85,393 $ 234,090 $ 90,227 $ 3,547 $ 6,768,175 (1) Includes consumer and other installment loans not subject to risk ratings. (2) Includes loans that are past due and still accruing interest and loans on nonaccrual status. Loan Purchases and Sales Customers did not purchase any loans during first quarter 2018. During first quarter 2018, Customers sold $15.0 million of Small Business Administration (SBA) loans resulting in a gain on sale of $1.4 million . In first quarter 2017, Customers purchased $174.2 million of thirty-year fixed-rate residential mortgage loans from Florida-based Everbank. The purchase price was 98.5% of loans outstanding. In first quarter 2017, Customers sold $94.9 million of multi-family loans for $95.4 million resulting in a gain on sale of $0.5 million and $8.7 million of SBA loans resulting in a gain on sale of $0.8 million . None of these purchases and sales during the three months ended March 31, 2018 and 2017 materially affected the credit profile of Customers’ related loan portfolio. Loans Pledged as Collateral Customers has pledged eligible real estate loans as collateral for potential borrowings from the Federal Home Loan Bank of Pittsburgh ("FHLB") in the amount of $5.5 billion at March 31, 2018 and December 31, 2017 , respectively. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | EGULATORY CAPITAL The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on Customers' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, and total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At March 31, 2018 and December 31, 2017 , the Bank and the Bancorp satisfied all capital requirements to which they were subject. Generally, to comply with the regulatory definition of adequately capitalized, or well capitalized, respectively, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table: Minimum Capital Levels to be Classified as: Actual Adequacy Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of March 31, 2018: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 710,156 8.508 % $ 375,609 4.500 % N/A N/A $ 532,113 6.375 % Customers Bank $ 1,037,480 12.448 % $ 375,048 4.500 % $ 541,736 6.500 % $ 531,318 6.375 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 927,627 11.113 % $ 500,812 6.000 % N/A N/A $ 657,316 7.875 % Customers Bank $ 1,037,480 12.448 % $ 500,064 6.000 % $ 666,751 8.000 % $ 656,333 7.875 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,047,698 12.552 % $ 667,749 8.000 % N/A N/A $ 824,253 9.875 % Customers Bank $ 1,186,105 14.231 % $ 666,751 8.000 % $ 833,439 10.000 % $ 823,021 9.875 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 927,627 9.031 % $ 410,858 4.000 % N/A N/A $ 410,858 4.000 % Customers Bank $ 1,037,480 10.107 % $ 410,612 4.000 % $ 513,265 5.000 % $ 410,612 4.000 % As of December 31, 2017: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 689,494 8.805 % $ 352,368 4.500 % N/A N/A $ 450,248 5.750 % Customers Bank $ 1,023,564 13.081 % $ 352,122 4.500 % $ 508,621 6.500 % $ 449,934 5.750 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 906,963 11.583 % $ 469,824 6.000 % N/A N/A $ 567,704 7.250 % Customers Bank $ 1,023,564 13.081 % $ 469,496 6.000 % $ 625,994 8.000 % $ 567,307 7.250 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,021,601 13.047 % $ 626,432 8.000 % N/A N/A $ 724,313 9.250 % Customers Bank $ 1,170,666 14.961 % $ 625,994 8.000 % $ 782,493 10.000 % $ 723,806 9.250 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 906,963 8.937 % $ 405,949 4.000 % N/A N/A $ 405,949 4.000 % Customers Bank $ 1,023,564 10.092 % $ 405,701 4.000 % $ 507,126 5.000 % $ 405,701 4.000 % The risk-based capital rules adopted effective January 1, 2015 require that banks and holding companies maintain a "capital conservation buffer" of 250 basis points in excess of the "minimum capital ratio" or certain elective distributions would be limited. The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. The capital conservation buffer is being phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. Effective January 1, 2018, the capital level required to avoid limitation on elective distributions applicable to the Bancorp and the Bank were as follows: (i) a common equity Tier 1 risk-based capital ratio of 6.375% ; (ii) a Tier 1 risk-based capital ratio of 7.875% ; and (iii) a Total risk-based capital ratio of 9.875% . Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. |
Disclosures About Fair Value of
Disclosures About Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Disclosures About Fair Value of Financial Instruments | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS Customers uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. ASC Topic 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. Many of these financial instruments lack an available trading market as characterized by a willing buyer and a willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC Topic 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require adjustments to inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used to estimate the fair values of Customers' financial instruments as of March 31, 2018 and December 31, 2017 : Financial Instruments Recorded at Fair Value on a Recurring Basis Investment securities: The fair values of equity securities and available for sale debt securities are determined by obtaining quoted market prices on nationally recognized and foreign securities exchanges (Level 1), matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices, or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). These assets are classified as Level 1, 2 or 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The carrying amount of investments in FHLB, Federal Reserve Bank, and other restricted stock approximates fair value, and considers the limited marketability of such securities. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Consumer residential mortgage loans: The Bank generally estimates the fair values of residential mortgage loans held for sale based on commitments on hand from investors within the secondary market for loans with similar characteristics. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Commercial mortgage warehouse loans: The fair value of mortgage warehouse loans is the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The loan is used by mortgage companies as short-term bridge financing between the funding of mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not expected to be recognized because at inception of the transaction the underlying loans have already been sold to an approved investor. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of 21 days from purchase to sale. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Derivatives (Assets and Liabilities): The fair values of interest rate swaps and credit derivatives are determined using models that incorporate readily observable market data into a market standard methodology. This methodology nets the discounted future cash receipts and the discounted expected cash payments. The discounted variable cash receipts and payments are based on expectations of future interest rates derived from observable market interest rate curves. In addition, fair value is adjusted for the effect of nonperformance risk by incorporating credit valuation adjustments for the Bank and its counterparties. These assets and liabilities are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair values of the residential mortgage loan commitments are derived from the estimated fair values that can be generated when the underlying mortgage loan is sold in the secondary market. The Bank generally uses commitments on hand from third- party investors to estimate an exit price and adjusts for the probability of the commitment being exercised based on the Bank’s internal experience (i.e., pull-through rate). These assets and liabilities are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Derivative assets and liabilities are presented in "Other assets" and "Accrued interest payable and other liabilities" on the consolidated balance sheet. Financial Instruments Recorded at Fair Value on a Nonrecurring Basis Impaired loans: Impaired loans are those loans that are accounted for under ASC 310, Receivables , in which the Bank has measured impairment generally based on the fair value of the loan’s collateral or discounted cash flow analysis. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans or discounted cash flows based upon the expected proceeds. These assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Other real estate owned: The fair value of other real estate owned ("OREO") is determined by using appraisals, which may be discounted based on management’s review and changes in market conditions or sales agreements with third parties. All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice. Appraisals are certified to the Bank and performed by appraisers on the Bank’s approved list of appraisers. Evaluations are completed by a person independent of management. The content of the appraisal depends on the complexity of the property. Appraisals are completed on a “retail value” and an “as is value”. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The following information should not be interpreted as an estimate of Customers' fair value in its entirety because fair value calculations are only provided for a limited portion of Customers' assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making these estimates, comparisons between Customer’s disclosures and those of other companies may not be meaningful. The estimated fair values of Customers' financial instruments at March 31, 2018 and December 31, 2017 were as follows. Fair Value Measurements at March 31, 2018 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 215,411 $ 215,411 $ 215,411 $ — $ — Debt securities, available for sale 1,178,299 1,178,299 — 1,178,299 — Equity securities 3,362 3,362 3,362 — — Loans held for sale 1,875,515 1,875,515 — 1,875,515 — Loans receivable, net of allowance for loan losses 6,904,067 6,829,770 — — 6,829,770 FHLB, Federal Reserve Bank and other restricted stock 130,302 130,302 — 130,302 — Derivatives 13,606 13,606 — 13,523 83 Liabilities: Deposits $ 7,042,459 $ 7,034,680 $ 5,153,428 $ 1,881,252 $ — Federal funds purchased 195,000 195,000 195,000 — — FHLB advances 2,252,615 2,252,445 1,687,615 564,830 — Other borrowings 186,735 187,092 64,262 122,830 — Subordinated debt 108,904 114,950 — 114,950 — Derivatives 12,673 12,673 — 12,673 — Fair Value Measurements at December 31, 2017 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 146,323 $ 146,323 $ 146,323 $ — $ — Investment securities, available for sale 471,371 471,371 3,352 468,019 — Loans held for sale 1,939,485 1,939,659 — 1,795,294 144,365 Loans receivable, net of allowance for loan losses 6,730,243 6,676,763 — — 6,676,763 FHLB, Federal Reserve Bank and other restricted stock 105,918 105,918 — 105,918 — Derivatives 9,752 9,752 — 9,692 60 Liabilities: Deposits $ 6,800,142 $ 6,796,095 $ 4,894,449 $ 1,901,646 $ — Federal funds purchased 155,000 155,000 155,000 — — FHLB advances 1,611,860 1,611,603 881,860 729,743 — Other borrowings 186,497 193,557 65,072 128,485 — Subordinated debt 108,880 115,775 — 115,775 — Derivatives 10,074 10,074 — 10,074 — For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ — $ 493,257 $ — $ 493,257 Agency guaranteed commercial mortgage-backed securities — 324,534 — 324,534 Corporate notes — 360,508 — 360,508 Equity securities 3,362 — — 3,362 Derivatives — 13,523 83 13,606 Loans held for sale – fair value option — 1,875,515 — 1,875,515 Total assets - recurring fair value measurements $ 3,362 $ 3,067,337 $ 83 $ 3,070,782 Liabilities Derivatives $ — $ 12,673 $ — $ 12,673 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $2,119 $ — $ — $ 12,588 $ 12,588 Other real estate owned — — 1,408 1,408 Total assets - nonrecurring fair value measurements $ — $ — $ 13,996 $ 13,996 December 31, 2017 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available-for-sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 183,458 $ — $ 183,458 Agency-guaranteed commercial mortgage-backed securities — 238,472 — 238,472 Corporate notes — 46,089 — 46,089 Equity securities 3,352 — — 3,352 Derivatives — 9,692 60 9,752 Loans held for sale – fair value option — 1,795,294 — 1,795,294 Total assets - recurring fair value measurements $ 3,352 $ 2,273,005 $ 60 $ 2,276,417 Liabilities Derivatives $ — $ 10,074 $ — $ 10,074 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $1,451 $ — $ — $ 13,902 $ 13,902 Other real estate owned — — 1,449 1,449 Total assets - nonrecurring fair value measurements $ — $ — $ 15,351 $ 15,351 The changes in Level 3 assets measured at fair value on a recurring basis for the three months ended March 31, 2018 and 2017 are summarized as follows. Additional information about residential mortgage loan commitments can be found in NOTE 11 - DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES. Residential Mortgage Loan Commitments Three Months Ended March 31, 2018 2017 (amounts in thousands) Balance at December 31 $ 60 $ 45 Issuances 83 95 Settlements (60 ) (45 ) Balance at March 31 $ 83 $ 95 Customers' policy is to recognize transfers between fair value levels when events or circumstances warrant transfers. There were no transfers between levels during the three months ended March 31, 2018 and 2017 . The following table summarizes financial assets and financial liabilities measured at fair value as of March 31, 2018 and December 31, 2017 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. Quantitative Information about Level 3 Fair Value Measurements March 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (3) (amounts in thousands) Impaired loans $ 12,588 Collateral appraisal (1) Liquidation expenses (2) (8)% Other real estate owned 1,408 Collateral appraisal (1) Liquidation expenses (2) (11)% Residential mortgage loan commitments 83 Adjusted market bid Pull-through rate 90% Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (3) (amounts in thousands) Impaired loans $ 13,902 Collateral appraisal (1) Liquidation expenses (2) (8)% Other real estate owned 1,449 Collateral appraisal (1) Liquidation expenses (2) (8)% Residential mortgage loan commitments 60 Adjusted market bid Pull-through rate 90% (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell based on a percentage of the value as determined by the appraisal. (3) Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers' derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers' known or expected cash receipts and its known or expected cash payments principally related to certain borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers' interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Customers' objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest-rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest-rate-risk management strategy. Interest-rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuances of debt. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on Customers' variable-rate debt. Customers expects to reclassify $0.8 million from accumulated other comprehensive income as a reduction to interest expense during the next 12 months. Customers is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 27 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). At March 31, 2018 , Customers had eleven outstanding interest rate derivatives with notional amounts totaling $960.0 million that were designated as cash flow hedges of interest rate risk. At December 31, 2017 , Customers had nine outstanding interest rate derivatives with notional amounts totaling $550.0 million that were designated as cash flow hedges of interest rate risk. The outstanding cash flow hedges at March 31, 2018 expire between April 2018 and July 2021. Derivatives Not Designated as Hedging Instruments Customers executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies (typically the loan customers will swap a floating-rate loan for a fixed-rate loan). The customer interest rate swaps are simultaneously offset by interest rate swaps that Customers executes with a third party in order to minimize interest rate risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting third-party market swaps are recognized directly in earnings. At March 31, 2018 , Customers had 84 interest rate swaps with an aggregate notional amount of $813.7 million related to this program. At December 31, 2017 , Customers had 76 interest rate swaps with an aggregate notional amount of $800.5 million related to this program. Customers enters into residential mortgage loan commitments in connection with its consumer mortgage banking activities to fund mortgage loans at specified rates and times in the future. These commitments are short-term in nature and generally expire in 30 to 60 days. The residential mortgage loan commitments that relate to the origination of mortgage loans that will be held for sale are considered derivative instruments under the applicable accounting guidance and are reported at fair value, with changes in fair value recorded directly in earnings. At March 31, 2018 and December 31, 2017 , Customers had an outstanding notional balance of residential mortgage loan commitments of $3.6 million and $2.7 million , respectively. Customers has also purchased and sold credit derivatives to either hedge or participate in the performance risk associated with some of its counterparties. These derivatives are not designated as hedging instruments and are reported at fair value, with changes in fair value recorded directly in earnings. At March 31, 2018 and December 31, 2017 , Customers had outstanding notional balances of credit derivatives of $80.0 million and $80.5 million , respectively. Fair Value of Derivative Instruments on the Balance Sheet The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of March 31, 2018 and December 31, 2017 . March 31, 2018 Derivative Assets Derivative Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 1,224 Other liabilities $ 545 Total $ 1,224 $ 545 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 12,235 Other liabilities $ 12,104 Credit contracts Other assets 64 Other liabilities 24 Residential mortgage loan commitments Other assets 83 Other liabilities — Total $ 12,382 $ 12,128 December 31, 2017 Derivative Assets Derivative Liabilities Balance Sheet Balance Sheet Location Fair Value Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 816 Other liabilities $ 1,140 Total $ 816 $ 1,140 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 8,776 Other liabilities $ 8,897 Credit contracts Other assets 100 Other liabilities 37 Residential mortgage loan commitments Other assets 60 Other liabilities — Total $ 8,936 $ 8,934 Effect of Derivative Instruments on Comprehensive Income The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2018 and 2017 . Three Months Ended March 31, 2018 Income Statement Location Amount of Income (Loss) Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 385 Credit contracts Other non-interest income (23 ) Residential mortgage loan commitments Mortgage banking income 23 Total $ 385 Three Months Ended March 31, 2017 Income Statement Location Amount of Income (Loss) Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 483 Credit contracts Other non-interest income — Residential mortgage loan commitments Mortgage banking income 50 Total $ 533 Three Months Ended March 31, 2018 Amount of Gain Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 646 Interest expense $ (131 ) Three Months Ended March 31, 2017 Amount of Gain Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 201 Interest expense $ (827 ) (1) Amounts presented are net of taxes. See NOTE 5 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME for total effect on other comprehensive income from derivatives designated as cash flow hedges for the periods presented. Credit-risk-related Contingent Features By entering into derivative contracts, Customers is exposed to credit risk. The credit risk associated with derivatives executed with customers is the same as that involved in extending the related loans and is subject to the same standard credit policies. To mitigate the credit-risk exposure to major derivative dealer counterparties, Customers only enters into agreements with those counterparties that maintain credit ratings of high quality. Agreements with major derivative dealer counterparties contain provisions whereby default on any of Customers' indebtedness would be considered a default on its derivative obligations. Customers also has entered into agreements that contain provisions under which the counterparty could require Customers to settle its obligations if Customers fails to maintain its status as a well/adequately capitalized institution. As of March 31, 2018 , the fair value of derivatives in a net liability position (which includes accrued interest but excludes any adjustment for nonperformance-risk) related to these agreements was $0.2 million . In addition, Customers has minimum collateral posting thresholds with certain of these counterparties and at March 31, 2018 had posted $0.4 million of cash as collateral. Customers records cash posted as collateral as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of other assets. Disclosures about Offsetting Assets and Liabilities The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the table below. Customers has not made a policy election to offset its derivative positions. Offsetting of Financial Assets and Derivative Assets At March 31, 2018 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 11,716 $ — $ 11,716 $ — $ 9,240 $ 2,476 Offsetting of Financial Liabilities and Derivative Liabilities At March 31, 2018 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 2,405 $ — $ 2,405 $ — $ 352 $ 2,053 Offsetting of Financial Assets and Derivative Assets At December 31, 2017 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 5,930 $ — $ 5,930 $ — $ 5,070 $ 860 Offsetting of Financial Liabilities and Derivative Liabilities At December 31, 2017 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Pledged (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 5,058 $ — $ 5,058 $ — $ 4,872 $ 186 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | USINESS SEGMENTS Customers' segment financial reporting reflects the manner in which its chief operating decision makers allocate resources and assess performance. Management has determined that Customers' operations consist of two reportable segments - Community Business Banking and BankMobile. Each segment generates revenues, manages risk, and offers distinct products and services to targeted customers through different delivery channels. The strategy, marketing, and analysis of these segments vary considerably. The Community Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island, New Hampshire, Washington D.C. and Illinois through a single-point-of-contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Lending and deposit gathering activities are focused primarily on privately held businesses, high-net-worth families, selected commercial real estate lending, and commercial mortgage companies. Revenues are generated primarily through net interest income (the difference between interest earned on loans, investments, and other interest earning assets and interest paid on deposits and other borrowed funds) and other non-interest income, such as mortgage warehouse transactional fees and bank owned life insurance. The BankMobile segment provides state-of-the-art high-tech digital banking and disbursement services to consumers, students, and the "under banked" nationwide. BankMobile, as a division of Customers Bank, is a full-service banking platform that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Revenues are currently being generated primarily through interchange and card revenue, deposit and wire transfer fees and university fees. The majority of revenue and expenses for BankMobile are related to the segment's operation of the ongoing business acquired through the Disbursement business acquisition. The following tables present the operating results for Customers' reportable business segments for the three month periods ended March 31, 2018 and 2017 . The segment financial results include directly attributable revenues and expenses. Corporate overhead costs are assigned to the Community Business Banking segment as those expenses are expected to continue following the planned spin-off of BankMobile. Similarly, the preferred stock dividends have been allocated in their entirety to the Community Business Banking segment. The tax benefit assigned to BankMobile was based on an estimated effective tax rate of 24.57% for 2018 and 37.25% for 2017 , respectively. Three Months Ended March 31, 2018 Community Business Banking BankMobile Consolidated Interest income $ 92,554 $ 4,410 (1 ) $ 96,964 Interest expense 31,917 16 31,933 Net interest income 60,637 4,394 65,031 Provision for loan losses 1,874 243 2,117 Non-interest income 8,439 12,471 20,910 Non-interest expense 34,331 17,949 52,280 Income before income tax expense (benefit) 32,871 (1,327 ) 31,544 Income tax expense (benefit) 7,728 (326 ) 7,402 Net income (loss) 25,143 (1,001 ) 24,142 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 21,528 $ (1,001 ) $ 20,527 As of March 31, 2018 Goodwill and other intangibles $ 3,630 $ 13,847 $ 17,477 Total assets $ 10,690,479 $ 78,787 $ 10,769,266 Total deposits $ 6,418,810 $ 623,649 $ 7,042,459 Total non-deposit liabilities $ 2,759,156 $ 48,563 $ 2,807,719 Three Months Ended March 31, 2017 Community Business Banking BankMobile Consolidated Interest income $ 78,832 $ 4,262 (1 ) $ 83,094 Interest expense 20,656 20 20,676 Net interest income 58,176 4,242 62,418 Provision for loan losses 3,050 — 3,050 Non-interest income 5,427 17,327 22,754 Non-interest expense 30,147 19,219 49,366 Income (loss) before income tax expense (benefit) 30,406 2,350 32,756 Income tax expense (benefit) 6,116 893 7,009 Net income (loss) 24,290 1,457 25,747 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 20,675 $ 1,457 $ 22,132 As of March 31, 2017 Goodwill and other intangibles $ 3,636 $ 13,982 $ 17,618 Total assets $ 9,833,721 $ 72,915 $ 9,906,636 Total deposits $ 6,627,061 $ 708,419 $ 7,335,480 Total non-deposit liabilities $ 1,660,967 $ 30,372 $ 1,691,339 (1) - Amounts reported include funds transfer pricing of $4.4 million and $4.3 million for the three months ended March 31, 2018 and 2017 , respectively, credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no cost deposits. |
Non-Interest Revenues
Non-Interest Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Non-Interest Revenues | REVENUES As provided in NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION, Customers' adoption of ASU 2014-09, Revenue from Contracts with Customers (ASC 606), on January 1, 2018 did not have a significant impact to Customers' consolidated financial statements, as such, a cumulative effect adjustment to beginning retained earnings was not necessary. Customers determined that its debit and prepaid card interchange income, previously reported on a gross basis for periods prior to adoption will need to be presented on a net basis under this ASU. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported in accordance with the previous accounting guidance under ASC 605. Debit and prepaid card interchange expense for the three months ended March 31, 2018 and 2017 amounted to $1.5 million and $0.8 million , respectively. In addition, as part of the enhanced disclosure requirements under the new guidance, Customers is presenting disaggregated revenue by business segment, nature of the revenue stream, and the pattern or timing of revenue recognition. The accounting treatment for interest-related revenues is covered under ASC-310 and is out of the scope of ASU 2014-09. The following tables present Customers' non-interest revenues affected by ASU 2014-09 by business segment for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and Card Revenue $ 223 $ 9,438 $ 9,661 Deposit Fees 287 1,805 2,092 University Fees - Card and Disbursement Fees — 326 326 Total revenue recognized at point in time 510 11,569 12,079 Revenue recognized over time: University Fees - Subscription Revenue — 870 870 Total revenue recognized over time — 870 870 Total revenue from contracts with customers $ 510 $ 12,439 $ 12,949 Three Months Ended March 31, 2017 Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and Card Revenue $ 203 $ 13,308 $ 13,511 Deposit Fees 324 2,803 3,127 University Fees - Card and Disbursement Fees — 392 392 Total revenue recognized at point in time 527 16,503 17,030 Revenue recognized over time: University Fees - Subscription Revenue — 795 795 Total revenue recognized over time — 795 795 Total revenue from contracts with customers $ 527 $ 17,298 $ 17,825 The following is a discussion of revenues within the scope of ASC 606: Card revenue Card revenue primarily relates to debit and prepaid card fees earned from interchange and ATM fees. Interchange fees are earned whenever Customers' issued debit and prepaid cards are processed through card payment networks. Interchange fees are recognized concurrent with the processing of the debit or prepaid card transaction. Deposit Fees Deposit fees relate to service charges on deposit accounts for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as stop-payment charges, wire transfer fees, cashier or money order fees are recognized at the time the transaction is executed. Account maintenance fees, which relate primarily to monthly maintenance and account analysis fees, are earned on a monthly basis representing the period over which Customers satisfies its performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposit accounts are withdrawn from the depositor's account balance. The above revenues recognized at a point in time primarily consist of contracts with no specified terms, but which may be terminated at any time by the customer without penalty. Due to the transactional nature and indefinite term of these agreements, there were no related contract balances that were recorded for these revenue streams on Customers' consolidated balance sheets as of March 31, 2018 and December 31, 2017. University Fees University fees represent revenues from higher education institutions and is generated from fees charged for the services provided. For higher education institution clients, Customers through BankMobile facilitates the distribution of financial aid and other refunds to students, while simultaneously enhancing the ability of the higher education institutions to comply with the federal regulations applicable to financial aid transactions. For these services, higher education institution clients are charged an annual subscription fee and/or per-transaction fees (e.g. new card or card replacement fees) for certain transactions. The annual subscription fee is recognized ratably over the period of service and the transaction fees are recognized when the transaction is completed. BankMobile also enters into long-term (generally three- or five-year initial term) contracts with higher education institutions to provide these refund management disbursement services. Deferred revenue consists of amounts billed to or received from clients prior to the performance of services. The deferred revenues are earned over the service period on a straight line basis. As of March 31, 2018 and December 31, 2017, Customers recorded deferred revenue of $1.8 million and $2.0 million , respectively, related to these university subscription contracts. At March 31, 2018 and December 31, 2017, Customers had accounts receivable of $1.2 million and $1.1 million , respectively, related to the university fee arrangements. |
Significant Accounting Polici21
Significant Accounting Policies and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim unaudited consolidated financial statements of Customers Bancorp and subsidiaries have been prepared pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2017 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2017 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2017 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 23, 2018 (the "Form 10-K"). That Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Restrictions on Cash and Amounts due from Banks; Business Combinations; Investment Securities; Loan Accounting Framework; Loans Held for Sale and Loans at Fair Value; Loans Receivable; Purchased Loans; Allowance for Loan Losses; Goodwill and Other Intangible Assets; Investments in FHLB, Federal Reserve Bank, and Other Restricted Stock; Other Real Estate Owned; Bank-Owned Life Insurance; Bank Premises and Equipment; Operating Leases; Treasury Stock; Income Taxes; Share-Based Compensation; Transfer of Financial Assets; Business Segments; Derivative Instruments and Hedging; Comprehensive Income (Loss); Earnings per Share; and Loss Contingencies. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. |
Reclassifications | Reclassifications As described in NOTE 2 - SPIN-OFF AND MERGER, beginning in third quarter 2017, Customers reclassified BankMobile, a segment previously classified as held for sale, to held and used as it no longer met the held-for-sale criteria. Certain prior period amounts and note disclosures (including NOTE 4 , NOTE 8 and NOTE 10 ) have been reclassified to conform with the current period presentation. Except for these reclassifications, there have been no material changes to Customers' significant accounting policies as disclosed in Customers' Annual Report on Form 10-K for the year ended December 31, 2017 . Presented below are recently issued accounting standards that Customers has adopted as well as those that the Financial Accounting Standards Board (“FASB”) has issued but are not yet effective or that Customers has not yet adopted. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted on January 1, 2018 Standard Summary of guidance Effects on Financial Statements ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income/(Loss) Allows for reclassification from AOCI to retained earnings for stranded tax effects resulting from the 2017 Tax Cut and Jobs Act. Requires an entity to disclose whether it has elected to reclassify stranded tax effects from AOCI to retained earnings and its policy for releasing income tax effects from AOCI. Effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. Customers early adopted on January 1, 2018. The adoption resulted in the reclassification of $0.3 million in stranded tax effects in Customers' AOCI related to net unrealized losses on its available-for-sale securities and cash flow hedges. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued February 2018 ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities Aligns the entity's risk management activities and financial reporting for hedging relationships. Amends the existing hedge accounting model and expands an entity's ability to hedge nonfinancial and financial risk components and reduce complexity in fair value hedges of interest-rate risk. Eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line item as the hedge item. Changes certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. Effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. Customers early adopted on January 1, 2018. With the early adoption, Customers is now able to pursue additional hedging strategies including the ability to apply fair value hedge accounting to a specified pool of assets by excluding the portion of the hedged items related to prepayments, defaults and other events. These additional hedging strategies will allow Customers to better align its accounting and the financial reporting of its hedging activities with its economic objectives thereby reducing the earnings volatility resulting from these hedging activities. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Customers has updated its disclosures in NOTE 11 - DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES as a result of early adopting this ASU. Issued August 2017 ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting Clarifies when to account for a change to the terms or conditions of a share-based-payment award as a modification in ASC 718. Provides that modification accounting is only required if the fair value, vesting conditions, or the classification of the award as equity or a liability changes as a result of the change in terms or conditions. Effective January 1, 2018 on a prospective basis for awards modified on or after the adoption date. Customers adopted on January 1, 2018. Customers generally does not modify the terms or conditions of its share-based-payment awards. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued May 2017 ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets Clarifies the scope and application of the accounting guidance on the sale of nonfinancial assets to non-customers, including partial sales. Clarifies that if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets, then all of the financial assets promised to the counterparty are in substance nonfinancial assets within the scope of Subtopic 610-20. Effective January 1, 2018 on a prospective basis. Customers adopted on January 1, 2018. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued February 2017 ASU 2017-01, Clarifying the Definition of a Business Narrows the definition of a business and clarifies that to be considered a business, the fair value of gross assets acquired (or disposed of) should not be concentrated in a single identifiable asset or a group of similar identifiable assets. Also clarifies that in order to be considered a business, an acquisition would have to include an input and a substantive process that together will significantly contribute to the ability to create an output. Effective January 1, 2018 on a prospective basis. Customers adopted on January 1, 2018. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued January 2017 Accounting Standards Adopted on January 1, 2018 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2016-18, Statement of Cash Flows: Restricted Cash Requires inclusion of restricted cash in cash and cash equivalents when reconciling the beginning-of-period total amounts shown on the statement of cash flows. Effective January 1, 2018 and requires retrospective application to all periods presented. Customers adopted on January 1, 2018. The adoption did not result in any significant impact on Customers' consolidated financial statements, including its consolidated statement of cash flows, and therefore did not result in a retrospective application. Issued November 2016 ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory Requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Eliminates the current exception for all intra-entity transfers of an asset other than inventory that requires deferral of the tax effects until the asset is sold to a third party or otherwise recovered through use. Effective January 1, 2018 on a modified retrospective basis. Customers adopted on January 1, 2018. The adoption of the ASU did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued October 2016 ASU 2016-15, Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments Aims to reduce the existing diversity in practice with regards to the classification of the following specific items in the statement of cash flows: 1. Cash payments for debt prepayment or extinguishment costs will be classified as an operating activity, while the portion of the payment attributable to principal will be classified as a financing activity. 2. Cash paid by an acquirer soon after a business combination for the settlement of a contingent consideration liability recognized at the acquisition date will be classified in investing activities. 3. Cash proceeds received from the settlement of insurance claims will be classified on the basis of the related insurance coverage (i.e., the nature of the loss). 4. Cash proceeds received from the settlement of bank-owned life insurance policies will be classified as cash inflows from investing activities. 5. A transferor's beneficial interest obtained in a securitization of financial assets will be disclosed as a non-cash activity, and cash received from beneficial interests will be classified in investing activities. Effective January 1, 2018 and requires retrospective application to all periods presented. Customers adopted on January 1, 2018. The adoption did not result in any significant impact on Customers' consolidated financial statements, including its consolidated statement of cash flows, and therefore it did not result in a retrospective application. Issued August 2016 Accounting Standards Adopted on January 1, 2018 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2016-04, Liabilities - Extinguishment of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products Requires issuers of prepaid stored-value products (such as gift cards, telecommunication cards, and traveler's checks), to derecognize the financial liability related to those products for breakage. Breakage is the value of prepaid stored-value products that is not redeemed by consumers for goods, services or cash. The amendments in this ASU provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606. Effective January 1, 2018 on a modified retrospective basis. Customers adopted on January 1, 2018. The adoption of this ASU did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Issued March 2016 ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities Requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income. Simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. Eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. Requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or in the accompanying notes to the financial statements. Clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. Effective January 1, 2018 on a modified retrospective basis. Customers adopted on January 1, 2018 using a modified retrospective approach. The adoption of this ASU resulted in a cumulative-effect adjustment that resulted in a $1.0 million reduction in AOCI and a corresponding increase in retained earnings for the same amount. The $1.0 million represented the net unrealized gain on Customers' investment in Religare equity securities at December 31, 2017, as disclosed in NOTE 6 - INVESTMENT SECURITIES. Customers also refined its calculation to determine the fair value of its held-for- investment loan portfolio for disclosure purposes using an exit price notion as part of adopting this ASU. The refined calculation did not have a significant impact on Customers' fair value disclosures. Issued January 2016 Accounting Standards Adopted on January 1, 2018 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Issued May 2014 Supersedes the revenue recognition requirements in ASC 605. Requires an entity to recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment includes a five-step process to assist an entity in achieving the main principle(s) of revenue recognition under ASC 605. Reframed the structure of the indicators of when an entity is acting as an agent and focused on evidence that an entity is acting as the principal or agent in a revenue transaction. Requires additional qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1 , 2018 and can be either applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption (modified retrospective approach). Customers adopted on January 1, 2018 on a modified retrospective basis. Because the ASU does not apply to revenue associated with leases and financial instruments (including loans and securities), Customers concluded that the new guidance did not have a material impact on the elements of its consolidated statements of operations most closely associated with leases and financial instruments (such as interest income, interest expense and securities gain). Customers has identified its deposit-related fees, service charges, debit and prepaid card interchange income and university fees to be within the scope of the standard. Customers has also completed its review of the related contracts and its evaluation of certain costs related to these revenue streams and determined that its debit and prepaid card interchange income, previously reported on a gross basis for periods prior to adoption, will need to be presented on a net basis under this ASU, as Customers is the agent. The adoption of this ASU, did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Additional discussion related to the adoption and the required quantitative and qualitative disclosures are included in NOTE 13 - NON-INTEREST REVENUES. Accounting Standards Issued But Not Yet Adopted Standard Summary of guidance Effects on Financial Statements ASU 2018-03 Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10) Clarifies certain aspects of the guidance issued in ASU 2016-01 including: the ability to irrevocably elect to change the measurement approach for equity securities measured using the practical expedient (at cost plus or minus observable transactions less impairment) to a fair value method in accordance with ASC 820, Fair Value Measurement. Provides clarification that if an observable transaction occurs for such securities, the adjustment is as of the observable transaction date. Effective July 1, 2018 on a prospective basis with early adoption permitted. Customers currently does not have any significant equity securities without readily determinable fair values and, accordingly, does not expect the adoption of this ASU to have a significant impact on its financial condition, results of operations and consolidated financial statements; however, Customers will continue to evaluate the potential impact of this ASU through the adoption date. Issued February 2018 ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features Changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity's own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) would no longer be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of net income available to common shareholders in basic earnings per share ("EPS"). Effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Customers currently does not have any equity-linked financial instruments (or embedded features) with down round features and, accordingly, does not expect the adoption of this ASU to have a significant impact on its financial condition, results of operations and consolidated financial statements; however, Customers will continue to evaluate the potential impact of this ASU through the adoption date. Issued July 2017 ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities Requires that premiums for certain callable debt securities held be amortized to their earliest call date. Effective for Customers beginning after December 15, 2018, with early adoption permitted. Adoption of this new guidance must be applied on a modified retrospective approach. Customers currently has an immaterial amount of callable debt securities purchased at a premium and, accordingly, does not expect the adoption of this ASU to have a significant impact on its financial condition, results of operations and consolidated financial statements; however, Customers will continue to evaluate the potential impact through the adoption date. Issued March 2017 Accounting Standards Issued But Not Yet Adopted (continued) Standard Summary of guidance Effects on Financial Statements ASU 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset (including HTM securities), presents the net amount expected to be collected on the financial asset. Replaces today's "incurred loss" approach and is expected to result in earlier recognition of credit losses. For available-for-sale debt securities, entities will be required to record allowances for credit losses rather than reduce the carrying amount, as they do today under the OTTI model, and will be allowed to reverse previously established allowances in the event the credit of the issuer improves. Simplifies the accounting model for purchased credit-impaired debt securities and loans. Effective beginning after December 15, 2019 with early adoption permitted. Adoption can be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Customers is currently evaluating the impact of this ASU, initiating implementation efforts across the company and planning for loss modeling requirements consistent with lifetime expected loss estimates. Customers expects that the new model will include different assumptions used in calculating credit losses, such as estimating losses over the estimated life of a financial asset and will consider expected future changes in macroeconomic conditions. The adoption of this ASU may result in an increase to Customers' allowance for loan losses which will depend upon the nature and characteristics of Customers' loan portfolio at the adoption date, as well as the macroeconomic conditions and forecasts at that date. Customers currently does not intend to early adopt this new guidance. Issued June 2016 ASU 2016-02, Leases Supersedes the current lease accounting guidance for both lessees and lessors under ASC 840, Leases. From the lessee's perspective, the new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for lessees. This ASU will require lessors to account for leases using an approach that is substantially similar to the existing guidance for sales-type, direct financing leases and operating leases. Effective beginning after December 15, 2018 with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Customers is currently evaluating the impact of this ASU on its financial condition and results of operations and expects to recognize right-of-use assets and lease liabilities for substantially all of its operating lease commitments based on the present value of unpaid lease payments as of the date of adoption. Customers does not intend to early adopt this ASU. Issued February 2016 |
Fair Value Measurement | Customers uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. ASC Topic 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. Many of these financial instruments lack an available trading market as characterized by a willing buyer and a willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC Topic 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require adjustments to inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. |
Impaired Loans | Impaired loans: Impaired loans are those loans that are accounted for under ASC 310, Receivables , in which the Bank has measured impairment generally based on the fair value of the loan’s collateral or discounted cash flow analysis. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans or discounted cash flows based upon the expected proceeds. These assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. |
Derivatives | Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers' derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers' known or expected cash receipts and its known or expected cash payments principally related to certain borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers' interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Customers' objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest-rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest-rate-risk management strategy. Interest-rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuances of debt. |
Spin-Off and Merger (Tables)
Spin-Off and Merger (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations Income Statement and Balance Sheet | The following summarizes the effect of the reclassification from held for sale classification to held and used classification on the previously reported consolidated statements of income for the three months ended March 31, 2017 : Three Months Ended March 31, 2017 Effect of Reclassification From Held For Sale to Held and Used (amounts in thousands) As Previously Reported After Reclassification Interest income $ 83,094 $ — $ 83,094 Interest expense 20,670 6 20,676 Net interest income 62,424 (6 ) 62,418 Provision for loan losses 3,050 — 3,050 Non-interest income 5,427 17,327 22,754 Non-interest expenses 30,147 19,219 49,366 Income from continuing operations before income taxes 34,654 (1,898 ) 32,756 Provision for income taxes 7,730 (721 ) 7,009 Net income from continuing operations 26,924 (1,177 ) 25,747 Loss from discontinued operations before income taxes (1,898 ) 1,898 — Income tax benefit from discontinued operations (721 ) 721 — Net loss from discontinued operations (1,177 ) 1,177 — Net income 25,747 — 25,747 Preferred stock dividend 3,615 — 3,615 Net income available to common shareholders $ 22,132 $ — $ 22,132 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The following are the components and results of Customers' earnings per common share calculations for the periods presented. Three Months Ended 2018 2017 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 20,527 $ 22,132 Weighted-average number of common shares outstanding - basic 31,424,496 30,407,060 Share-based compensation plans 840,561 2,344,929 Warrants 8,916 37,171 Weighted-average number of common shares - diluted 32,273,973 32,789,160 Basic earnings per common share $ 0.65 $ 0.73 Diluted earnings per common share $ 0.64 $ 0.67 |
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following is a summary of securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive for the periods presented. Three Months Ended 2018 2017 Anti-dilutive securities: Share-based compensation awards 1,059,225 — Warrants — 52,242 Total anti-dilutive securities 1,059,225 52,242 |
Changes in Accumulated Other 24
Changes in Accumulated Other Comprehensive Income (Loss) By Component (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (loss) | The following tables present the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2018 and 2017 . All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. Three Months Ended March 31, 2018 Available-for-sale securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Total Balance - December 31, 2017 $ (249 ) $ 88 $ (161 ) $ (198 ) $ (359 ) Reclassification of the income tax effects of the Tax Cuts and Jobs Act (1) (256 ) — (256 ) (42 ) (298 ) Reclassification of net unrealized gains on equity securities (1) (953 ) (88 ) (1,041 ) — (1,041 ) Balance after reclassification adjustments on January 1, 2018 (1,458 ) — (1,458 ) (240 ) (1,698 ) Other comprehensive income (loss) before reclassifications (25,233 ) — (25,233 ) 646 (24,587 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) — — — 97 97 Net current-period other comprehensive income (loss) (25,233 ) — (25,233 ) 743 (24,490 ) Balance - March 31, 2018 $ (26,691 ) $ — $ (26,691 ) $ 503 $ (26,188 ) (1) Amounts reclassified from accumulated other comprehensive income (loss) on January 1, 2018 as a result of the adoption of ASU 2018-02 and ASU 2016-01 resulted in a decrease in accumulated other comprehensive income of $1.3 million and a corresponding increase in retained earnings for the same amount. See NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for more information. (2) Reclassification amounts for available-for-sale securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. Three Months Ended March 31, 2017 Available-for-sale securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Total Balance - December 31, 2016 $ (2,681 ) $ — $ (2,681 ) $ (2,211 ) $ (4,892 ) Other comprehensive income (loss) before reclassifications (685 ) — (685 ) 201 (484 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (1) — — — 504 504 Net current-period other comprehensive income (loss) (685 ) — (685 ) 705 20 Balance - March 31, 2017 $ (3,366 ) $ — $ (3,366 ) $ (1,506 ) $ (4,872 ) (1) Reclassification amounts for available-for-sale securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Approximate Fair Value of Investment Securities | The amortized cost and approximate fair value of investment securities as of March 31, 2018 and December 31, 2017 are summarized in the tables below: March 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale Debt Securities: Agency-guaranteed residential mortgage-backed securities $ 505,113 $ — $ (11,856 ) $ 493,257 Agency-guaranteed commercial real estate mortgage-backed securities 334,643 — (10,109 ) 324,534 Corporate notes 374,611 947 (15,050 ) 360,508 Available for Sale Debt Securities $ 1,214,367 $ 947 $ (37,015 ) 1,178,299 Equity Securities (1) 3,362 Total Investment Securities, at Fair Value $ 1,181,661 (1) Includes equity securities issued by a foreign entity that are being measured at fair value with changes in fair value recognized directly in earnings effective January 1, 2018 as a result of adopting ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (see NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for additional information related to the adoption of this new standard). December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 186,221 $ 36 $ (2,799 ) $ 183,458 Agency-guaranteed commercial real estate mortgage-backed securities 238,809 432 (769 ) 238,472 Corporate notes (1) 44,959 1,130 — 46,089 Equity securities (2) 2,311 1,041 — 3,352 Total Available for Sale Securities, at Fair Value $ 472,300 $ 2,639 $ (3,568 ) $ 471,371 (1) Includes subordinated debt issued by other bank holding companies. (2) Includes equity securities issued by a foreign entity. |
Summary of Available-for-Sale Debt Securities by Stated Maturity | The following table shows debt investment securities by stated maturity. Investment securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date: March 31, 2018 Amortized Cost Fair Value (amounts in thousands) Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 119,980 117,332 Due after ten years 254,631 243,176 Agency-guaranteed residential mortgage-backed securities 505,113 493,257 Agency-guaranteed commercial real estate mortgage-backed securities 334,643 324,534 Total debt securities $ 1,214,367 $ 1,178,299 |
Gross Unrealized Losses and Fair Value, Aggregated by Investment Category | Gross unrealized losses and fair value of Customers' available for sale debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale Debt Securities: Agency-guaranteed residential mortgage-backed securities $ 430,735 $ (8,161 ) $ 62,522 $ (3,695 ) $ 493,257 $ (11,856 ) Agency-guaranteed commercial real estate mortgage-backed securities 318,635 (9,831 ) 5,899 (278 ) 324,534 (10,109 ) Corporate notes 309,601 (15,050 ) — — 309,601 (15,050 ) Total $ 1,058,971 $ (33,042 ) $ 68,421 $ (3,973 ) $ 1,127,392 $ (37,015 ) December 31, 2017 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale Debt Securities: Agency-guaranteed residential mortgage-backed securities $ 104,861 $ (656 ) $ 66,579 $ (2,143 ) $ 171,440 $ (2,799 ) Agency-guaranteed commercial real estate mortgage-backed securities 115,970 (740 ) 6,151 (29 ) 122,121 (769 ) Total $ 220,831 $ (1,396 ) $ 72,730 $ (2,172 ) $ 293,561 $ (3,568 ) |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables Held-for-sale [Abstract] | |
Composition of Loans Held for Sale | The composition of loans held for sale as of March 31, 2018 and December 31, 2017 was as follows: March 31, 2018 December 31, 2017 (amounts in thousands) Commercial loans: Mortgage warehouse loans, at fair value $ 1,874,853 $ 1,793,408 Multi-family loans at lower of cost or fair value — 144,191 Total commercial loans held for sale 1,874,853 1,937,599 Consumer loans: Residential mortgage loans, at fair value 662 1,886 Loans held for sale $ 1,875,515 $ 1,939,485 |
Loans Receivable and Allowanc27
Loans Receivable and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | The following table presents loans receivable as of March 31, 2018 and December 31, 2017 . March 31, 2018 December 31, 2017 (amounts in thousands) Commercial: Multi-family $ 3,645,374 $ 3,502,381 Commercial and industrial (including owner occupied commercial real estate) 1,704,791 1,633,818 Commercial real estate non-owner occupied 1,195,904 1,218,719 Construction 81,101 85,393 Total commercial loans 6,627,170 6,440,311 Consumer: Residential real estate 225,839 234,090 Manufactured housing 87,687 90,227 Other 3,570 3,547 Total consumer loans 317,096 327,864 Total loans receivable 6,944,266 6,768,175 Deferred (fees)/costs and unamortized (discounts)/premiums, net (700 ) 83 Allowance for loan losses (39,499 ) (38,015 ) Loans receivable, net of allowance for loan losses $ 6,904,067 $ 6,730,243 |
Loans Receivable by Loan Type and Performance Status | The following tables summarize loans receivable by loan type and performance status as of March 31, 2018 and December 31, 2017 : March 31, 2018 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 3,643,539 $ 1,835 $ 3,645,374 Commercial and industrial 129 — 129 14,220 1,187,571 721 1,202,641 Commercial real estate - owner occupied — — — 1,437 490,277 10,436 502,150 Commercial real estate - non-owner occupied — — — 242 1,190,591 5,071 1,195,904 Construction — — — — 81,101 — 81,101 Residential real estate 4,490 — 4,490 5,216 210,825 5,308 225,839 Manufactured housing (5) 3,444 2,746 6,190 1,979 77,042 2,476 87,687 Other consumer 75 — 75 97 3,148 250 3,570 Total $ 8,138 $ 2,746 $ 10,884 $ 23,191 $ 6,884,094 $ 26,097 $ 6,944,266 December 31, 2017 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ 4,900 $ — $ 4,900 $ — $ 3,495,600 $ 1,881 $ 3,502,381 Commercial and industrial 103 — 103 17,392 1,130,831 764 1,149,090 Commercial real estate - owner occupied 202 — 202 1,453 472,501 10,572 484,728 Commercial real estate - non-owner occupied 93 — 93 160 1,213,216 5,250 1,218,719 Construction — — — — 85,393 — 85,393 Residential real estate 7,628 — 7,628 5,420 215,361 5,681 234,090 Manufactured housing (5) 4,028 2,743 6,771 1,959 78,946 2,551 90,227 Other consumer 116 — 116 31 3,184 216 3,547 Total $ 17,070 $ 2,743 $ 19,813 $ 26,415 $ 6,695,032 $ 26,915 $ 6,768,175 (1) Includes past due loans that are accruing interest because collection is considered probable. (2) Loans where next payment due is less than 30 days from the report date. (3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. |
Schedule of Allowance for Loan Losses | The changes in the allowance for loan losses for the three months ended March 31, 2018 and 2017 , and the loans and allowance for loan losses by loan class based on impairment-evaluation method as of March 31, 2018 and December 31, 2017 are presented in the tables below. Three Months Ended March 31, 2018 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, December 31, 2017 $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 Charge-offs — (50 ) (18 ) — — (365 ) — (256 ) (689 ) Recoveries — 35 — — 11 7 — 3 56 Provision for loan losses 377 834 311 (204 ) (69 ) 608 (4 ) 264 2,117 Ending Balance, March 31, 2018 $ 12,545 $ 11,737 $ 3,525 $ 7,233 $ 921 $ 3,179 $ 176 $ 183 $ 39,499 As of March 31, 2018 Loans: Individually evaluated for impairment $ — $ 14,288 $ 1,483 $ 242 $ — $ 8,242 $ 10,108 $ 97 $ 34,460 Collectively evaluated for impairment 3,643,539 1,187,632 490,231 1,190,591 81,101 212,289 75,103 3,223 6,883,709 Loans acquired with credit deterioration 1,835 721 10,436 5,071 — 5,308 2,476 250 26,097 $ 3,645,374 $ 1,202,641 $ 502,150 $ 1,195,904 $ 81,101 $ 225,839 $ 87,687 $ 3,570 $ 6,944,266 Allowance for loan losses: Individually evaluated for impairment $ — $ 986 $ 764 $ — $ — $ 365 $ 4 $ — $ 2,119 Collectively evaluated for impairment 12,545 10,300 2,751 4,512 921 2,274 82 125 33,510 Loans acquired with credit deterioration — 451 10 2,721 — 540 90 58 3,870 $ 12,545 $ 11,737 $ 3,525 $ 7,233 $ 921 $ 3,179 $ 176 $ 183 $ 39,499 Three Months Ended March 31, 2017 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, December 31, 2016 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Charge-offs — (198 ) — (404 ) — (221 ) — (20 ) (843 ) Recoveries — 215 — — 81 21 — 44 361 Provision for loan losses 681 1,942 211 357 (36 ) (62 ) (2 ) (41 ) 3,050 Ending Balance, March 31, 2017 $ 12,283 $ 13,009 $ 2,394 $ 7,847 $ 885 $ 3,080 $ 284 $ 101 $ 39,883 As of December 31, 2017 Loans: Individually evaluated for impairment $ — $ 17,461 $ 1,448 $ 160 $ — $ 9,247 $ 10,089 $ 30 $ 38,435 Collectively evaluated for impairment 3,500,500 1,130,865 472,708 1,213,309 85,393 219,162 77,587 3,301 6,702,825 Loans acquired with credit deterioration 1,881 764 10,572 5,250 — 5,681 2,551 216 26,915 $ 3,502,381 $ 1,149,090 $ 484,728 $ 1,218,719 $ 85,393 $ 234,090 $ 90,227 $ 3,547 $ 6,768,175 Allowance for loan losses: Individually evaluated for impairment $ — $ 650 $ 642 $ — $ — $ 155 $ 4 $ — $ 1,451 Collectively evaluated for impairment 12,168 9,804 2,580 4,630 979 2,177 82 117 32,537 Loans acquired with credit deterioration — 464 10 2,807 — 597 94 55 4,027 $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 |
Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans | The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for impaired loans that were individually evaluated for impairment as of March 31, 2018 and December 31, 2017 and the average recorded investment and interest income recognized for the three months ended March 31, 2018 and 2017 . Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. March 31, 2018 Three Months Ended March 31, 2018 Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no recorded allowance: Commercial and industrial $ 5,830 $ 6,029 $ — $ 7,484 $ — Commercial real estate owner occupied 614 614 — 710 — Commercial real estate non-owner occupied 242 353 — 201 — Other consumer 97 97 — 63 — Residential real estate 3,617 3,788 — 3,623 — Manufactured housing 9,886 9,886 — 9,876 131 With an allowance recorded: Commercial and industrial 8,458 8,642 986 8,390 1 Commercial real estate owner occupied 869 869 764 756 1 Residential real estate 4,625 4,662 365 5,122 25 Manufactured housing 222 222 4 223 — Total $ 34,460 $ 35,162 $ 2,119 $ 36,448 $ 158 December 31, 2017 Three Months Ended March 31, 2017 Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no recorded allowance: Commercial and industrial $ 9,138 $ 9,287 $ — $ 4,248 $ 50 Commercial real estate owner occupied 806 806 — 1,435 15 Commercial real estate non-owner occupied 160 272 — 1,794 2 Other consumer 30 30 — 57 — Residential real estate 3,628 3,801 — 4,502 1 Manufactured housing 9,865 9,865 — 9,833 141 With an allowance recorded: Commercial and industrial 8,323 8,506 650 8,837 81 Commercial real estate - owner occupied 642 642 642 844 1 Commercial real estate non-owner occupied — — — 138 — Residential real estate 5,619 5,656 155 2,597 39 Manufactured housing 224 224 4 102 3 Total $ 38,435 $ 39,089 $ 1,451 $ 34,387 $ 333 |
Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession | The following table presents loans modified in a troubled debt restructuring by type of concession for the three months ended March 31, 2018 and 2017 . There were no modifications that involved forgiveness of debt. Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Number Recorded Number Recorded (dollars in thousands) Extensions of maturity — $ — 1 $ 348 Interest-rate reductions 9 322 20 855 Total 9 $ 322 21 $ 1,203 |
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment | The following table presents total TDRs based on loan type and accrual status at March 31, 2018 and December 31, 2017. Nonaccrual TDRs are included in the reported amount of total non-accrual loans. March 31, 2018 December 31, 2017 Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total (amounts in thousands) Commercial and industrial $ 68 $ 5,519 $ 5,587 $ 63 $ 5,939 $ 6,002 Commercial real estate owner occupied 45 — 45 — — — Manufactured housing 8,130 1,787 9,917 8,130 1,766 9,896 Residential real estate 3,026 463 3,489 3,828 703 4,531 Total TDRs $ 11,269 $ 7,769 $ 19,038 $ 12,021 $ 8,408 $ 20,429 The following table provides, by loan type, the number of loans modified in troubled debt restructurings, and the related recorded investment, during the three months ended March 31, 2018 and 2017 . Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Number Recorded Number Recorded (dollars in thousands) Commercial and industrial — $ — 1 $ 348 Manufactured housing 9 322 20 855 Total loans 9 $ 322 21 $ 1,203 |
Changes in Accretable Yield Related to Purchased-credit-impaired Loans | The changes in accretable yield related to purchased-credit-impaired loans for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 (amounts in thousands) Accretable yield balance as of December 31, $ 7,825 $ 10,202 Accretion to interest income (338 ) (493 ) Reclassification from nonaccretable difference and disposals, net 176 (333 ) Accretable yield balance as of March 31, $ 7,663 $ 9,376 |
Credit Ratings of Covered and Non-Covered Loan Portfolio | The following tables present the credit ratings of loans receivable as of March 31, 2018 and December 31, 2017 . March 31, 2018 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 3,608,179 $ 1,161,401 $ 485,423 $ 1,178,454 $ 81,101 $ — $ — $ — $ 6,514,558 Special Mention 29,634 12,751 8,208 16,356 — — — — 66,949 Substandard 7,561 28,489 8,519 1,094 — — — — 45,663 Performing (1) — — — — — 216,133 79,518 3,398 299,049 Non-performing (2) — — — — — 9,706 8,169 172 18,047 Total $ 3,645,374 $ 1,202,641 $ 502,150 $ 1,195,904 $ 81,101 $ 225,839 $ 87,687 $ 3,570 $ 6,944,266 December 31, 2017 Multi-family Commercial Commercial Commercial Real Estate Non-Owner Occupied Construction Residential Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 3,438,554 $ 1,118,889 $ 471,826 $ 1,185,933 $ 85,393 $ — $ — $ 6,300,595 Special Mention 53,873 7,652 5,987 31,767 — — — — 99,279 Substandard 9,954 22,549 6,915 1,019 — — — 40,437 Performing (1) — — — — — 221,042 81,497 3,400 305,939 Non-performing (2) — — — — — 13,048 8,730 147 21,925 Total $ 3,502,381 $ 1,149,090 $ 484,728 $ 1,218,719 $ 85,393 $ 234,090 $ 90,227 $ 3,547 $ 6,768,175 (1) Includes consumer and other installment loans not subject to risk ratings. (2) Includes loans that are past due and still accruing interest and loans on nonaccrual statu |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios | Generally, to comply with the regulatory definition of adequately capitalized, or well capitalized, respectively, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table: Minimum Capital Levels to be Classified as: Actual Adequacy Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of March 31, 2018: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 710,156 8.508 % $ 375,609 4.500 % N/A N/A $ 532,113 6.375 % Customers Bank $ 1,037,480 12.448 % $ 375,048 4.500 % $ 541,736 6.500 % $ 531,318 6.375 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 927,627 11.113 % $ 500,812 6.000 % N/A N/A $ 657,316 7.875 % Customers Bank $ 1,037,480 12.448 % $ 500,064 6.000 % $ 666,751 8.000 % $ 656,333 7.875 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,047,698 12.552 % $ 667,749 8.000 % N/A N/A $ 824,253 9.875 % Customers Bank $ 1,186,105 14.231 % $ 666,751 8.000 % $ 833,439 10.000 % $ 823,021 9.875 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 927,627 9.031 % $ 410,858 4.000 % N/A N/A $ 410,858 4.000 % Customers Bank $ 1,037,480 10.107 % $ 410,612 4.000 % $ 513,265 5.000 % $ 410,612 4.000 % As of December 31, 2017: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 689,494 8.805 % $ 352,368 4.500 % N/A N/A $ 450,248 5.750 % Customers Bank $ 1,023,564 13.081 % $ 352,122 4.500 % $ 508,621 6.500 % $ 449,934 5.750 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 906,963 11.583 % $ 469,824 6.000 % N/A N/A $ 567,704 7.250 % Customers Bank $ 1,023,564 13.081 % $ 469,496 6.000 % $ 625,994 8.000 % $ 567,307 7.250 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,021,601 13.047 % $ 626,432 8.000 % N/A N/A $ 724,313 9.250 % Customers Bank $ 1,170,666 14.961 % $ 625,994 8.000 % $ 782,493 10.000 % $ 723,806 9.250 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 906,963 8.937 % $ 405,949 4.000 % N/A N/A $ 405,949 4.000 % Customers Bank $ 1,023,564 10.092 % $ 405,701 4.000 % $ 507,126 5.000 % $ 405,701 4.000 % |
Disclosures About Fair Value 29
Disclosures About Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers' financial instruments at March 31, 2018 and December 31, 2017 were as follows. Fair Value Measurements at March 31, 2018 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 215,411 $ 215,411 $ 215,411 $ — $ — Debt securities, available for sale 1,178,299 1,178,299 — 1,178,299 — Equity securities 3,362 3,362 3,362 — — Loans held for sale 1,875,515 1,875,515 — 1,875,515 — Loans receivable, net of allowance for loan losses 6,904,067 6,829,770 — — 6,829,770 FHLB, Federal Reserve Bank and other restricted stock 130,302 130,302 — 130,302 — Derivatives 13,606 13,606 — 13,523 83 Liabilities: Deposits $ 7,042,459 $ 7,034,680 $ 5,153,428 $ 1,881,252 $ — Federal funds purchased 195,000 195,000 195,000 — — FHLB advances 2,252,615 2,252,445 1,687,615 564,830 — Other borrowings 186,735 187,092 64,262 122,830 — Subordinated debt 108,904 114,950 — 114,950 — Derivatives 12,673 12,673 — 12,673 — Fair Value Measurements at December 31, 2017 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 146,323 $ 146,323 $ 146,323 $ — $ — Investment securities, available for sale 471,371 471,371 3,352 468,019 — Loans held for sale 1,939,485 1,939,659 — 1,795,294 144,365 Loans receivable, net of allowance for loan losses 6,730,243 6,676,763 — — 6,676,763 FHLB, Federal Reserve Bank and other restricted stock 105,918 105,918 — 105,918 — Derivatives 9,752 9,752 — 9,692 60 Liabilities: Deposits $ 6,800,142 $ 6,796,095 $ 4,894,449 $ 1,901,646 $ — Federal funds purchased 155,000 155,000 155,000 — — FHLB advances 1,611,860 1,611,603 881,860 729,743 — Other borrowings 186,497 193,557 65,072 128,485 — Subordinated debt 108,880 115,775 — 115,775 — Derivatives 10,074 10,074 — 10,074 — |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ — $ 493,257 $ — $ 493,257 Agency guaranteed commercial mortgage-backed securities — 324,534 — 324,534 Corporate notes — 360,508 — 360,508 Equity securities 3,362 — — 3,362 Derivatives — 13,523 83 13,606 Loans held for sale – fair value option — 1,875,515 — 1,875,515 Total assets - recurring fair value measurements $ 3,362 $ 3,067,337 $ 83 $ 3,070,782 Liabilities Derivatives $ — $ 12,673 $ — $ 12,673 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $2,119 $ — $ — $ 12,588 $ 12,588 Other real estate owned — — 1,408 1,408 Total assets - nonrecurring fair value measurements $ — $ — $ 13,996 $ 13,996 December 31, 2017 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available-for-sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 183,458 $ — $ 183,458 Agency-guaranteed commercial mortgage-backed securities — 238,472 — 238,472 Corporate notes — 46,089 — 46,089 Equity securities 3,352 — — 3,352 Derivatives — 9,692 60 9,752 Loans held for sale – fair value option — 1,795,294 — 1,795,294 Total assets - recurring fair value measurements $ 3,352 $ 2,273,005 $ 60 $ 2,276,417 Liabilities Derivatives $ — $ 10,074 $ — $ 10,074 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $1,451 $ — $ — $ 13,902 $ 13,902 Other real estate owned — — 1,449 1,449 Total assets - nonrecurring fair value measurements $ — $ — $ 15,351 $ 15,351 |
Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis for the three months ended March 31, 2018 and 2017 are summarized as follows. Additional information about residential mortgage loan commitments can be found in NOTE 11 - DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES. Residential Mortgage Loan Commitments Three Months Ended March 31, 2018 2017 (amounts in thousands) Balance at December 31 $ 60 $ 45 Issuances 83 95 Settlements (60 ) (45 ) Balance at March 31 $ 83 $ 95 |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value as of March 31, 2018 and December 31, 2017 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. Quantitative Information about Level 3 Fair Value Measurements March 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (3) (amounts in thousands) Impaired loans $ 12,588 Collateral appraisal (1) Liquidation expenses (2) (8)% Other real estate owned 1,408 Collateral appraisal (1) Liquidation expenses (2) (11)% Residential mortgage loan commitments 83 Adjusted market bid Pull-through rate 90% Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (3) (amounts in thousands) Impaired loans $ 13,902 Collateral appraisal (1) Liquidation expenses (2) (8)% Other real estate owned 1,449 Collateral appraisal (1) Liquidation expenses (2) (8)% Residential mortgage loan commitments 60 Adjusted market bid Pull-through rate 90% (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell based on a percentage of the value as determined by the appraisal. (3) Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned. |
Derivative Instruments and He30
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments | The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of March 31, 2018 and December 31, 2017 . March 31, 2018 Derivative Assets Derivative Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 1,224 Other liabilities $ 545 Total $ 1,224 $ 545 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 12,235 Other liabilities $ 12,104 Credit contracts Other assets 64 Other liabilities 24 Residential mortgage loan commitments Other assets 83 Other liabilities — Total $ 12,382 $ 12,128 December 31, 2017 Derivative Assets Derivative Liabilities Balance Sheet Balance Sheet Location Fair Value Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 816 Other liabilities $ 1,140 Total $ 816 $ 1,140 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 8,776 Other liabilities $ 8,897 Credit contracts Other assets 100 Other liabilities 37 Residential mortgage loan commitments Other assets 60 Other liabilities — Total $ 8,936 $ 8,934 |
Effect of Derivative Financial Instruments on Comprehensive Income | The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2018 and 2017 . Three Months Ended March 31, 2018 Income Statement Location Amount of Income (Loss) Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 385 Credit contracts Other non-interest income (23 ) Residential mortgage loan commitments Mortgage banking income 23 Total $ 385 Three Months Ended March 31, 2017 Income Statement Location Amount of Income (Loss) Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 483 Credit contracts Other non-interest income — Residential mortgage loan commitments Mortgage banking income 50 Total $ 533 Three Months Ended March 31, 2018 Amount of Gain Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 646 Interest expense $ (131 ) Three Months Ended March 31, 2017 Amount of Gain Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Loss Reclassified from Accumulated OCI into Income (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 201 Interest expense $ (827 ) (1) Amounts presented are net of taxes. See NOTE 5 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME for total effect on other comprehensive income from derivatives designated as cash flow hedges for the periods presented. |
Summary of Offsetting of Financial Assets and Derivative Assets | Offsetting of Financial Assets and Derivative Assets At December 31, 2017 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 5,930 $ — $ 5,930 $ — $ 5,070 $ 860 Offsetting of Financial Assets and Derivative Assets At March 31, 2018 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 11,716 $ — $ 11,716 $ — $ 9,240 $ 2,476 |
Summary of Offsetting of Financial Liabilities and Derivative Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities At December 31, 2017 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Pledged (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 5,058 $ — $ 5,058 $ — $ 4,872 $ 186 Offsetting of Financial Liabilities and Derivative Liabilities At March 31, 2018 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 2,405 $ — $ 2,405 $ — $ 352 $ 2,053 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present the operating results for Customers' reportable business segments for the three month periods ended March 31, 2018 and 2017 . The segment financial results include directly attributable revenues and expenses. Corporate overhead costs are assigned to the Community Business Banking segment as those expenses are expected to continue following the planned spin-off of BankMobile. Similarly, the preferred stock dividends have been allocated in their entirety to the Community Business Banking segment. The tax benefit assigned to BankMobile was based on an estimated effective tax rate of 24.57% for 2018 and 37.25% for 2017 , respectively. Three Months Ended March 31, 2018 Community Business Banking BankMobile Consolidated Interest income $ 92,554 $ 4,410 (1 ) $ 96,964 Interest expense 31,917 16 31,933 Net interest income 60,637 4,394 65,031 Provision for loan losses 1,874 243 2,117 Non-interest income 8,439 12,471 20,910 Non-interest expense 34,331 17,949 52,280 Income before income tax expense (benefit) 32,871 (1,327 ) 31,544 Income tax expense (benefit) 7,728 (326 ) 7,402 Net income (loss) 25,143 (1,001 ) 24,142 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 21,528 $ (1,001 ) $ 20,527 As of March 31, 2018 Goodwill and other intangibles $ 3,630 $ 13,847 $ 17,477 Total assets $ 10,690,479 $ 78,787 $ 10,769,266 Total deposits $ 6,418,810 $ 623,649 $ 7,042,459 Total non-deposit liabilities $ 2,759,156 $ 48,563 $ 2,807,719 Three Months Ended March 31, 2017 Community Business Banking BankMobile Consolidated Interest income $ 78,832 $ 4,262 (1 ) $ 83,094 Interest expense 20,656 20 20,676 Net interest income 58,176 4,242 62,418 Provision for loan losses 3,050 — 3,050 Non-interest income 5,427 17,327 22,754 Non-interest expense 30,147 19,219 49,366 Income (loss) before income tax expense (benefit) 30,406 2,350 32,756 Income tax expense (benefit) 6,116 893 7,009 Net income (loss) 24,290 1,457 25,747 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 20,675 $ 1,457 $ 22,132 As of March 31, 2017 Goodwill and other intangibles $ 3,636 $ 13,982 $ 17,618 Total assets $ 9,833,721 $ 72,915 $ 9,906,636 Total deposits $ 6,627,061 $ 708,419 $ 7,335,480 Total non-deposit liabilities $ 1,660,967 $ 30,372 $ 1,691,339 (1) - Amounts reported include funds transfer pricing of $4.4 million and $4.3 million for the three months ended March 31, 2018 and 2017 , respectively, credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no cost deposits. |
Non-Interest Revenues (Tables)
Non-Interest Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | |
Disaggregation of Revenue | The following tables present Customers' non-interest revenues affected by ASU 2014-09 by business segment for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and Card Revenue $ 223 $ 9,438 $ 9,661 Deposit Fees 287 1,805 2,092 University Fees - Card and Disbursement Fees — 326 326 Total revenue recognized at point in time 510 11,569 12,079 Revenue recognized over time: University Fees - Subscription Revenue — 870 870 Total revenue recognized over time — 870 870 Total revenue from contracts with customers $ 510 $ 12,439 $ 12,949 Three Months Ended March 31, 2017 Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and Card Revenue $ 203 $ 13,308 $ 13,511 Deposit Fees 324 2,803 3,127 University Fees - Card and Disbursement Fees — 392 392 Total revenue recognized at point in time 527 16,503 17,030 Revenue recognized over time: University Fees - Subscription Revenue — 795 795 Total revenue recognized over time — 795 795 Total revenue from contracts with customers $ 527 $ 17,298 $ 17,825 |
Description of the Business - A
Description of the Business - Additional Information (Detail) | Mar. 31, 2018Branch |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches (branch) | 13 |
Spin-Off and Merger - Narrative
Spin-Off and Merger - Narrative (Details) - Flagship Community Bank - Spinoff - Common Stock - USD ($) $ in Millions | Nov. 17, 2017 | Mar. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale of stock, percentage of ownership after transaction | 50.00% | |
Escrow Deposit | $ 1 | |
Cash and Cash Equivalents | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Escrow Deposit | $ 1 |
Spin-Off and Merger - Income St
Spin-Off and Merger - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income tax expense | $ 7,402 | $ 7,009 |
Net income (loss) | 24,142 | 25,747 |
Preferred stock dividends | 3,615 | 3,615 |
Net income (loss) available to common shareholders | $ 20,527 | 22,132 |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest income | 83,094 | |
Interest expense | 20,676 | |
Net interest income | 62,418 | |
Provision for loan losses | 3,050 | |
Non-interest income | 22,754 | |
Non-interest expense | 49,366 | |
Income from continuing operations before income taxes | 32,756 | |
Income tax expense | 7,009 | |
Net income from continuing operations | 25,747 | |
Loss from discontinued operations before income tax benefit | 0 | |
Income tax benefit from discontinued operations | 0 | |
Net loss from discontinued operations | 0 | |
Net income (loss) | 25,747 | |
Preferred stock dividends | 3,615 | |
Net income (loss) available to common shareholders | 22,132 | |
Previously Reported | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest income | 83,094 | |
Interest expense | 20,670 | |
Net interest income | 62,424 | |
Provision for loan losses | 3,050 | |
Non-interest income | 5,427 | |
Non-interest expense | 30,147 | |
Income from continuing operations before income taxes | 34,654 | |
Income tax expense | 7,730 | |
Net income from continuing operations | 26,924 | |
Loss from discontinued operations before income tax benefit | (1,898) | |
Income tax benefit from discontinued operations | (721) | |
Net loss from discontinued operations | (1,177) | |
Net income (loss) | 25,747 | |
Preferred stock dividends | 3,615 | |
Net income (loss) available to common shareholders | 22,132 | |
Restatement Adjustment | BankMobile | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest income | 0 | |
Interest expense | 6 | |
Net interest income | (6) | |
Provision for loan losses | 0 | |
Non-interest income | 17,327 | |
Non-interest expense | 19,219 | |
Income from continuing operations before income taxes | (1,898) | |
Income tax expense | (721) | |
Net income from continuing operations | (1,177) | |
Loss from discontinued operations before income tax benefit | 1,898 | |
Income tax benefit from discontinued operations | 721 | |
Net loss from discontinued operations | 1,177 | |
Net income (loss) | 0 | |
Preferred stock dividends | 0 | |
Net income (loss) available to common shareholders | $ 0 |
Significant Accounting Polici36
Significant Accounting Policies and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Accumulated other comprehensive loss, net | $ 26,188 | $ 359 | |
Retained earnings | 279,942 | 258,076 | |
Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 0 | ||
Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 0 | ||
Accumulated other comprehensive loss, net | $ 1,300 | ||
Retained earnings | $ 1,300 | ||
Net unrealized gain | 1,041 | ||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | (298) | ||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | (1,041) | (1,041) | |
Retained Earnings | Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | 298 | ||
Retained Earnings | Accounting Standards Update 2016-01 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of new accounting principle in period of adoption | $ 1,041 | ||
Retained earnings | $ 1,041 |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income (loss) available to common shareholders | $ 20,527 | $ 22,132 |
Weighted-average number of common shares outstanding - basic (shares) | 31,424,496 | 30,407,060 |
Share-based compensation plans (shares) | 840,561 | 2,344,929 |
Warrants (shares) | 8,916 | 37,171 |
Weighted-average number of common shares - diluted (shares) | 32,273,973 | 32,789,160 |
Basic earnings per common share (usd per share) | $ 0.65 | $ 0.73 |
Diluted earnings per common share (usd per share) | $ 0.64 | $ 0.67 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Anti-dilutive securities: | ||
Total anti-dilutive securities (shares) | 1,059,225 | 52,242 |
Share-based compensation awards | ||
Anti-dilutive securities: | ||
Total anti-dilutive securities (shares) | 1,059,225 | 0 |
Warrants | ||
Anti-dilutive securities: | ||
Total anti-dilutive securities (shares) | 0 | 52,242 |
Changes in Accumulated Other 39
Changes in Accumulated Other Comprehensive Income (Loss) By Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 920,964 | $ 855,872 | ||
Ending balance | 919,088 | 879,817 | ||
Accumulated other comprehensive loss, net | 26,188 | $ 359 | ||
Retained earnings | 279,942 | 258,076 | ||
Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (249) | (2,681) | ||
Other comprehensive income (loss) before reclassifications | (25,233) | (685) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | (1,458) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | ||
Net current-period other comprehensive income (loss) | (25,233) | (685) | ||
Ending balance | (26,691) | (3,366) | ||
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 88 | 0 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | 0 | |||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Total Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (161) | (2,681) | ||
Other comprehensive income (loss) before reclassifications | (25,233) | (685) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | (1,458) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | ||
Net current-period other comprehensive income (loss) | (25,233) | (685) | ||
Ending balance | (26,691) | (3,366) | ||
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (198) | (2,211) | ||
Other comprehensive income (loss) before reclassifications | 646 | 201 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | (240) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 97 | 504 | ||
Net current-period other comprehensive income (loss) | 743 | 705 | ||
Ending balance | 503 | (1,506) | ||
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (359) | (4,892) | ||
Other comprehensive income (loss) before reclassifications | (24,587) | (484) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | (1,698) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 97 | 504 | ||
Net current-period other comprehensive income (loss) | (24,490) | 20 | ||
Ending balance | (26,188) | $ (4,872) | ||
Staff Accounting Bulletin No. 118 | Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (256) | |||
Staff Accounting Bulletin No. 118 | Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
Staff Accounting Bulletin No. 118 | Total Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (256) | |||
Staff Accounting Bulletin No. 118 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (42) | |||
Staff Accounting Bulletin No. 118 | Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (298) | |||
Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
Accumulated other comprehensive loss, net | $ 1,300 | |||
Retained earnings | $ 1,300 | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (953) | |||
Accounting Standards Update 2016-01 | Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (88) | |||
Accounting Standards Update 2016-01 | Total Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (1,041) | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
Accounting Standards Update 2016-01 | Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | $ (1,041) | $ (1,041) |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 1,214,367 | $ 472,300 |
Gross Unrealized Gains | 947 | 2,639 |
Gross Unrealized Losses | (37,015) | (3,568) |
Available-for-sale securities, debt securities | 1,178,299 | |
Investment securities, at fair value | 1,181,661 | 471,371 |
Fair value | 1,181,661 | 471,371 |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 374,611 | 44,959 |
Gross Unrealized Gains | 947 | 1,130 |
Gross Unrealized Losses | (15,050) | 0 |
Available-for-sale securities, debt securities | 360,508 | |
Fair value | 46,089 | |
Agency-guaranteed residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 505,113 | 186,221 |
Gross Unrealized Gains | 0 | 36 |
Gross Unrealized Losses | (11,856) | (2,799) |
Available-for-sale securities, debt securities | 493,257 | |
Fair value | 183,458 | |
Agency-guaranteed commercial real estate mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 334,643 | 238,809 |
Gross Unrealized Gains | 0 | 432 |
Gross Unrealized Losses | (10,109) | (769) |
Available-for-sale securities, debt securities | 324,534 | |
Fair value | 238,472 | |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,311 | |
Gross Unrealized Gains | 1,041 | |
Gross Unrealized Losses | 0 | |
Investment securities, at fair value | $ 3,362 | |
Fair value | $ 3,352 |
Investment Securities - Summa41
Investment Securities - Summary of Available-for-Sale Debt Securities by Stated Maturity (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Due in one year or less, amortized cost | $ 0 |
Due after one year through five years, amortized cost | 0 |
Due after five years through ten years, amortized cost | 119,980 |
Due after ten years, amortized cost | 254,631 |
Total debt securities, amortized cost | 1,214,367 |
Due in one year or less, fair value | 0 |
Due after one year through five years, fair value | 0 |
Due after five years through ten years, fair value | 117,332 |
Due after ten years, fair value | 243,176 |
Total debt securities, fair value | 1,178,299 |
Agency-guaranteed residential mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Agency-guaranteed mortgage backed securities, amortized cost | 505,113 |
Agency-guaranteed mortgage-backed securities, fair value | 493,257 |
Total debt securities, fair value | 493,257 |
Agency-guaranteed commercial real estate mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Agency-guaranteed mortgage backed securities, amortized cost | 334,643 |
Agency-guaranteed mortgage-backed securities, fair value | 324,534 |
Total debt securities, fair value | $ 324,534 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value, Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | $ 1,058,971 | $ 220,831 |
Less Than 12 Months, Unrealized Losses | (33,042) | (1,396) |
12 Months or More, Fair Value | 68,421 | 72,730 |
12 Months or More, Unrealized Losses | (3,973) | (2,172) |
Fair Value, Total | 1,127,392 | 293,561 |
Unrealized Losses | (37,015) | (3,568) |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 309,601 | |
Less Than 12 Months, Unrealized Losses | (15,050) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Fair Value, Total | 309,601 | |
Unrealized Losses | (15,050) | |
Agency-guaranteed residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 430,735 | 104,861 |
Less Than 12 Months, Unrealized Losses | (8,161) | (656) |
12 Months or More, Fair Value | 62,522 | 66,579 |
12 Months or More, Unrealized Losses | (3,695) | (2,143) |
Fair Value, Total | 493,257 | 171,440 |
Unrealized Losses | (11,856) | (2,799) |
Agency-guaranteed commercial real estate mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 318,635 | 115,970 |
Less Than 12 Months, Unrealized Losses | (9,831) | (740) |
12 Months or More, Fair Value | 5,899 | 6,151 |
12 Months or More, Unrealized Losses | (278) | (29) |
Fair Value, Total | 324,534 | 122,121 |
Unrealized Losses | $ (10,109) | $ (769) |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($)Security | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of available-for-sale investment securities in the less than twelve month category (security) | Security | 62 | |||
Number of available-for-sale investment securities in the twelve month or more category (security) | Security | 16 | |||
Impairment loss on investment securities | $ 0 | $ (1,703) | ||
Investment securities, at fair value | 1,181,661 | $ 471,371 | ||
Unrealized gains (losses) on equity securities | (25,233) | (685) | ||
Gain (Loss) on Investments | 10 | 0 | ||
Pledged investment securities fair value | 701,500 | 16,900 | ||
Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Impairment loss on investment securities | $ (1,700) | |||
Investment securities, at fair value | 3,352 | |||
Unrealized gains (losses) on equity securities | 1,000 | |||
Accounting Standards Update 2016-01 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 0 | |||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2016-01 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 1,000 | |||
Other Non-interest Income | Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gain (Loss) on Investments | $ 10 |
Loans Held for Sale - Compositi
Loans Held for Sale - Composition of Loans Held for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Receivables Held-for-sale [Abstract] | |||
Mortgage warehouse loans, at fair value | $ 1,793,408 | $ 1,874,853 | |
Multi-family loans at lower of cost or fair value | 144,191 | 0 | |
Total commercial loans held for sale | 1,937,599 | 1,874,853 | |
Residential mortgage loans, at fair value | 1,886 | 662 | |
Loans held for sale | 1,939,485 | $ 1,875,515 | |
Loans held for sale, average life from purchase to sale | 21 days | ||
Transfer of loans to other real estate owned | $ 129,700 | ||
Transfer of loans held for sale to held for investment | $ 150,600 | $ 129,691 | $ 0 |
Loans Receivable and Allowanc45
Loans Receivable and Allowance for Loan Losses - Schedule of Loans Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 6,944,266 | $ 6,768,175 | ||
Deferred (fees)/costs and unamortized (discounts)/premiums, net | (700) | 83 | ||
Allowance for loan losses | (39,499) | (38,015) | $ (39,883) | $ (37,315) |
Total loans receivable, net of allowance for loan losses | 6,904,067 | 6,730,243 | ||
Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 3,645,374 | 3,502,381 | ||
Allowance for loan losses | (12,545) | (12,168) | (12,283) | (11,602) |
Total loans receivable, net of allowance for loan losses | 94,900 | |||
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 81,101 | 85,393 | ||
Allowance for loan losses | (921) | (979) | (885) | (840) |
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 225,839 | 234,090 | ||
Allowance for loan losses | (3,179) | (2,929) | (3,080) | (3,342) |
Manufactured housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 87,687 | 90,227 | ||
Allowance for loan losses | (176) | (180) | (284) | (286) |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 3,570 | 3,547 | ||
Allowance for loan losses | (183) | (172) | $ (101) | $ (118) |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 6,627,170 | 6,440,311 | ||
Commercial | Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 3,645,374 | 3,502,381 | ||
Commercial | Commercial and industrial (including owner occupied commercial real estate) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 1,704,791 | 1,633,818 | ||
Commercial | Commercial real estate non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 1,195,904 | 1,218,719 | ||
Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 81,101 | 85,393 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 317,096 | 327,864 | ||
Consumer | Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 225,839 | 234,090 | ||
Consumer | Manufactured housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 87,687 | 90,227 | ||
Consumer | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | $ 3,570 | $ 3,547 |
Loans Receivable and Allowanc46
Loans Receivable and Allowance for Loan Losses - Non-Covered Loans and Covered Loans by Class and Performance Status (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 10,884 | $ 19,813 |
Non-Accrual | 23,191 | 26,415 |
Current | 6,884,094 | 6,695,032 |
Loans receivable | 6,943,566 | 6,768,258 |
Loans receivable, gross | $ 6,944,266 | 6,768,175 |
Due days for loan payments | 30 days | |
Delinquent period | 90 days | |
Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 26,097 | 26,915 |
30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 8,138 | 17,070 |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,746 | 2,743 |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 4,900 |
Non-Accrual | 0 | 0 |
Current | 3,643,539 | 3,495,600 |
Loans receivable, gross | 3,645,374 | 3,502,381 |
Multi-family | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,835 | 1,881 |
Multi-family | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 4,900 |
Multi-family | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 129 | 103 |
Non-Accrual | 14,220 | 17,392 |
Current | 1,187,571 | 1,130,831 |
Loans receivable, gross | 1,202,641 | 1,149,090 |
Commercial and industrial | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 721 | 764 |
Commercial and industrial | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 129 | 103 |
Commercial and industrial | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 202 |
Non-Accrual | 1,437 | 1,453 |
Current | 490,277 | 472,501 |
Loans receivable, gross | 502,150 | 484,728 |
Commercial real estate - owner occupied | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 10,436 | 10,572 |
Commercial real estate - owner occupied | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 202 |
Commercial real estate - owner occupied | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate - non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 93 |
Non-Accrual | 242 | 160 |
Current | 1,190,591 | 1,213,216 |
Loans receivable, gross | 1,195,904 | 1,218,719 |
Commercial real estate - non-owner occupied | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 5,071 | 5,250 |
Commercial real estate - non-owner occupied | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 93 |
Commercial real estate - non-owner occupied | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Current | 81,101 | 85,393 |
Loans receivable, gross | 81,101 | 85,393 |
Construction | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Construction | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,490 | 7,628 |
Non-Accrual | 5,216 | 5,420 |
Current | 210,825 | 215,361 |
Loans receivable, gross | 225,839 | 234,090 |
Residential real estate | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 5,308 | 5,681 |
Residential real estate | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,490 | 7,628 |
Residential real estate | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Manufactured housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 6,190 | 6,771 |
Non-Accrual | 1,979 | 1,959 |
Current | 77,042 | 78,946 |
Loans receivable, gross | 87,687 | 90,227 |
Manufactured housing | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 2,476 | 2,551 |
Manufactured housing | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,444 | 4,028 |
Manufactured housing | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,746 | 2,743 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 75 | 116 |
Non-Accrual | 97 | 31 |
Current | 3,148 | 3,184 |
Loans receivable, gross | 3,570 | 3,547 |
Other | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 250 | 216 |
Other | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 75 | 116 |
Other | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans Receivable and Allowanc47
Loans Receivable and Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2018USD ($)AllowanceCommitmentLoan | Mar. 31, 2017USD ($)AllowanceLoan | Dec. 31, 2017USD ($)Commitment | |
Financing Receivable, Modifications [Line Items] | |||
Funds for reimbursement | $ 600,000 | ||
Loans reported as TDR | $ 19,000,000 | $ 20,400,000 | |
Minimum performance requirement | 6 months | ||
Sustained performance period | 9 months | ||
Number of commitments to lend additional funds (commitment) | Commitment | 0 | 0 | |
Loans modified as TDR allowance (allowance) | Allowance | 0 | 0 | |
Residential mortgage loans acquired | $ 0 | ||
Loans receivable, net of allowance for loan losses | $ 6,904,067,000 | $ 6,730,243,000 | |
Gain on sale of SBA and other loans | 1,361,000 | $ 1,328,000 | |
Term of fixed rate residential mortgage loans | 30 years | ||
Purchase price as a percentage of loans outstanding | 98.50% | ||
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Residential real estate held in other real estate owned | 300,000 | ||
Loans in process of foreclosure | $ 1,200,000 | $ 1,600,000 | |
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans modified as TDR (loan) | Loan | 1 | ||
Loans modified as TDR | $ 2,100,000 | ||
Manufactured housing | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans modified as TDR (loan) | Loan | 1 | 5 | |
Loans modified as TDR | $ 29,000 | $ 200,000 | |
Loans modified as TDR allowance (allowance) | Allowance | 1 | ||
Allowance for credit losses, effect of change in method | $ 1,000 | ||
Small Business Administration Loan | |||
Financing Receivable, Modifications [Line Items] | |||
Loans receivable, net of allowance for loan losses | 15,000,000 | 8,700,000 | |
Gain on sale of SBA and other loans | 1,400,000 | 800,000 | |
Residential Mortgage Loan Commitments | |||
Financing Receivable, Modifications [Line Items] | |||
Loans receivable, net of allowance for loan losses | 174,200,000 | ||
Multi-family | |||
Financing Receivable, Modifications [Line Items] | |||
Loans receivable, net of allowance for loan losses | 94,900,000 | ||
Loans receivable, net | 95,400,000 | ||
Gain on sale of SBA and other loans | $ 500,000 | ||
Federal Home Loan Bank of Pittsburgh | |||
Financing Receivable, Modifications [Line Items] | |||
Loans pledged as collateral | $ 5,500,000,000 |
Loans Receivable and Allowanc48
Loans Receivable and Allowance for Loan Losses - Schedule of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 38,015 | $ 37,315 | ||
Charge-offs | (689) | (843) | ||
Recoveries | 56 | 361 | ||
Provision for loan losses | 2,117 | 3,050 | ||
Ending balance | 39,499 | 39,883 | ||
Loans: | ||||
Individually evaluated for impairment | $ 34,460 | $ 38,435 | ||
Collectively evaluated for impairment | 6,883,709 | 6,702,825 | ||
Loans receivable, gross | 6,944,266 | 6,768,175 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 2,119 | 1,451 | ||
Collectively evaluated for impairment | 33,510 | 32,537 | ||
Total Allowance for loan losses | 38,015 | 37,315 | 39,499 | 38,015 |
Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 26,097 | 26,915 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 3,870 | 4,027 | ||
Multi-family | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 12,168 | 11,602 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 377 | 681 | ||
Ending balance | 12,545 | 12,283 | ||
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 3,643,539 | 3,500,500 | ||
Loans receivable, gross | 3,645,374 | 3,502,381 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 12,545 | 12,168 | ||
Total Allowance for loan losses | 12,168 | 11,602 | 12,545 | 12,168 |
Multi-family | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 1,835 | 1,881 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 10,918 | 11,050 | ||
Charge-offs | (50) | (198) | ||
Recoveries | 35 | 215 | ||
Provision for loan losses | 834 | 1,942 | ||
Ending balance | 11,737 | 13,009 | ||
Loans: | ||||
Individually evaluated for impairment | 14,288 | 17,461 | ||
Collectively evaluated for impairment | 1,187,632 | 1,130,865 | ||
Loans receivable, gross | 1,202,641 | 1,149,090 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 986 | 650 | ||
Collectively evaluated for impairment | 10,300 | 9,804 | ||
Total Allowance for loan losses | 10,918 | 11,050 | 11,737 | 10,918 |
Commercial and industrial | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 721 | 764 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 451 | 464 | ||
Commercial real estate - owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 3,232 | 2,183 | ||
Charge-offs | (18) | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | 311 | 211 | ||
Ending balance | 3,525 | 2,394 | ||
Loans: | ||||
Individually evaluated for impairment | 1,483 | 1,448 | ||
Collectively evaluated for impairment | 490,231 | 472,708 | ||
Loans receivable, gross | 502,150 | 484,728 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 764 | 642 | ||
Collectively evaluated for impairment | 2,751 | 2,580 | ||
Total Allowance for loan losses | 3,232 | 2,183 | 3,525 | 3,232 |
Commercial real estate - owner occupied | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 10,436 | 10,572 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 10 | 10 | ||
Commercial real estate - non-owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 7,437 | 7,894 | ||
Charge-offs | 0 | (404) | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | (204) | 357 | ||
Ending balance | 7,233 | 7,847 | ||
Loans: | ||||
Individually evaluated for impairment | 242 | 160 | ||
Collectively evaluated for impairment | 1,190,591 | 1,213,309 | ||
Loans receivable, gross | 1,195,904 | 1,218,719 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4,512 | 4,630 | ||
Total Allowance for loan losses | 7,437 | 7,894 | 7,233 | 7,437 |
Commercial real estate - non-owner occupied | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 5,071 | 5,250 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 2,721 | 2,807 | ||
Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 979 | 840 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 11 | 81 | ||
Provision for loan losses | (69) | (36) | ||
Ending balance | 921 | 885 | ||
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 81,101 | 85,393 | ||
Loans receivable, gross | 81,101 | 85,393 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 921 | 979 | ||
Total Allowance for loan losses | 979 | 840 | 921 | 979 |
Construction | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Residential real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 2,929 | 3,342 | ||
Charge-offs | (365) | (221) | ||
Recoveries | 7 | 21 | ||
Provision for loan losses | 608 | (62) | ||
Ending balance | 3,179 | 3,080 | ||
Loans: | ||||
Individually evaluated for impairment | 8,242 | 9,247 | ||
Collectively evaluated for impairment | 212,289 | 219,162 | ||
Loans receivable, gross | 225,839 | 234,090 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 365 | 155 | ||
Collectively evaluated for impairment | 2,274 | 2,177 | ||
Total Allowance for loan losses | 2,929 | 3,342 | 3,179 | 2,929 |
Residential real estate | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 5,308 | 5,681 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 540 | 597 | ||
Manufactured housing | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 180 | 286 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan losses | (4) | (2) | ||
Ending balance | 176 | 284 | ||
Loans: | ||||
Individually evaluated for impairment | 10,108 | 10,089 | ||
Collectively evaluated for impairment | 75,103 | 77,587 | ||
Loans receivable, gross | 87,687 | 90,227 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 4 | 4 | ||
Collectively evaluated for impairment | 82 | 82 | ||
Total Allowance for loan losses | 180 | 286 | 176 | 180 |
Manufactured housing | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 2,476 | 2,551 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 90 | 94 | ||
Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 172 | 118 | ||
Charge-offs | (256) | (20) | ||
Recoveries | 3 | 44 | ||
Provision for loan losses | 264 | (41) | ||
Ending balance | 183 | 101 | ||
Loans: | ||||
Individually evaluated for impairment | 97 | 30 | ||
Collectively evaluated for impairment | 3,223 | 3,301 | ||
Loans receivable, gross | 3,570 | 3,547 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 125 | 117 | ||
Total Allowance for loan losses | $ 172 | $ 118 | 183 | 172 |
Other | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 250 | 216 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | $ 58 | $ 55 |
Loans Receivable and Allowanc49
Loans Receivable and Allowance for Loan Losses - Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Recorded Investment Net of Charge offs | |||
Recorded Investment Net of Charge Offs, Total | $ 34,460 | $ 38,435 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, Total | 35,162 | 39,089 | |
Related Allowance | 2,119 | 1,451 | |
Average Recorded Investment | |||
Average Recorded Investment, Total | 36,448 | $ 34,387 | |
Interest Income Recognized | |||
Interest Income Recognized, Total | 158 | 333 | |
Commercial and industrial | |||
Recorded Investment Net of Charge offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 5,830 | 9,138 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 8,458 | 8,323 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 6,029 | 9,287 | |
Unpaid Principal Balance, With an allowance recorded | 8,642 | 8,506 | |
Related Allowance | 986 | 650 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 7,484 | 4,248 | |
Average Recorded Investment, With an allowance recorded | 8,390 | 8,837 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 50 | |
Interest Income Recognized, With an allowance recorded | 1 | 81 | |
Commercial real estate - owner occupied | |||
Recorded Investment Net of Charge offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 614 | 806 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 869 | 642 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 614 | 806 | |
Unpaid Principal Balance, With an allowance recorded | 869 | 642 | |
Related Allowance | 764 | 642 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 710 | 1,435 | |
Average Recorded Investment, With an allowance recorded | 756 | 844 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 15 | |
Interest Income Recognized, With an allowance recorded | 1 | 1 | |
Commercial real estate - non-owner occupied | |||
Recorded Investment Net of Charge offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 242 | 160 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 0 | ||
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 353 | 272 | |
Unpaid Principal Balance, With an allowance recorded | 0 | ||
Related Allowance | 0 | ||
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 201 | 1,794 | |
Average Recorded Investment, With an allowance recorded | 138 | ||
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 2 | |
Interest Income Recognized, With an allowance recorded | 0 | ||
Other | |||
Recorded Investment Net of Charge offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 97 | 30 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 97 | 30 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 63 | 57 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Residential real estate | |||
Recorded Investment Net of Charge offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 3,617 | 3,628 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 4,625 | 5,619 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 3,788 | 3,801 | |
Unpaid Principal Balance, With an allowance recorded | 4,662 | 5,656 | |
Related Allowance | 365 | 155 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 3,623 | 4,502 | |
Average Recorded Investment, With an allowance recorded | 5,122 | 2,597 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 1 | |
Interest Income Recognized, With an allowance recorded | 25 | 39 | |
Manufactured housing | |||
Recorded Investment Net of Charge offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 9,886 | 9,865 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 222 | 224 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 9,886 | 9,865 | |
Unpaid Principal Balance, With an allowance recorded | 222 | 224 | |
Related Allowance | 4 | $ 4 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 9,876 | 9,833 | |
Average Recorded Investment, With an allowance recorded | 223 | 102 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 131 | 141 | |
Interest Income Recognized, With an allowance recorded | $ 0 | $ 3 |
Loans Receivable and Allowanc50
Loans Receivable and Allowance for Loan Losses - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 9 | 21 |
Recorded Investment | $ | $ 322 | $ 1,203 |
Extensions of maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 348 |
Interest-rate reductions | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 9 | 20 |
Recorded Investment | $ | $ 322 | $ 855 |
Loans Receivable and Allowanc51
Loans Receivable and Allowance for Loan Losses - Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Loan | Mar. 31, 2017USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 9 | 21 |
Recorded Investment | $ | $ 322 | $ 1,203 |
Commercial and industrial (including owner occupied commercial real estate) | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 348 |
Manufactured housing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 9 | 20 |
Recorded Investment | $ | $ 322 | $ 855 |
Loans Receivable and Allowanc52
Loans Receivable and Allowance for Loan Losses - Schedule of Accruing and Nonaccrual TDRs (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 322,000 | $ 1,203,000 | |
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 348,000 | |
Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 322,000 | $ 855,000 | |
Accruing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 11,269 | $ 12,021 | |
Accruing | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 68 | 63 | |
Accruing | Commercial real estate - owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 45 | 0 | |
Accruing | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 8,130 | 8,130 | |
Accruing | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 3,026 | 3,828 | |
Nonaccruing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 7,769 | 8,408 | |
Nonaccruing | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,519 | 5,939 | |
Nonaccruing | Commercial real estate - owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 0 | |
Nonaccruing | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 1,787 | 1,766 | |
Nonaccruing | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 463 | 703 | |
Total | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 19,038 | 20,429 | |
Total | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,587 | 6,002 | |
Total | Commercial real estate - owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 45 | 0 | |
Total | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 9,917 | 9,896 | |
Total | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 3,489 | $ 4,531 |
Loans Receivable and Allowanc53
Loans Receivable and Allowance for Loan Losses - Changes in Accretable Yield Related to Purchased-credit-impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Changes in Accretable Yield | ||
Accretable yield balance, beginning of period | $ 7,825 | $ 10,202 |
Accretion to interest income | (338) | (493) |
Reclassification from nonaccretable difference and disposals, net | 176 | (333) |
Accretable yield balance, end of period | $ 7,663 | $ 9,376 |
Loans Receivable and Allowanc54
Loans Receivable and Allowance for Loan Losses - Credit Ratings of Covered and Non-Covered Loan Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | $ 6,944,266 | $ 6,768,175 |
Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 6,514,558 | 6,300,595 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 66,949 | 99,279 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 45,663 | 40,437 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 299,049 | 305,939 |
Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 18,047 | 21,925 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,645,374 | 3,502,381 |
Multi-family | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,608,179 | 3,438,554 |
Multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 29,634 | 53,873 |
Multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 7,561 | 9,954 |
Multi-family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Multi-family | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 1,202,641 | 1,149,090 |
Commercial and industrial | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 1,161,401 | 1,118,889 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 12,751 | 7,652 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 28,489 | 22,549 |
Commercial and industrial | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial and industrial | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 502,150 | 484,728 |
Commercial real estate - owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 485,423 | 471,826 |
Commercial real estate - owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 8,208 | 5,987 |
Commercial real estate - owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 8,519 | 6,915 |
Commercial real estate - owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - owner occupied | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 1,195,904 | 1,218,719 |
Commercial real estate - non-owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 1,178,454 | 1,185,933 |
Commercial real estate - non-owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 16,356 | 31,767 |
Commercial real estate - non-owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 1,094 | 1,019 |
Commercial real estate - non-owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - non-owner occupied | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 81,101 | 85,393 |
Construction | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 81,101 | 85,393 |
Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 225,839 | 234,090 |
Residential real estate | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | |
Residential real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | |
Residential real estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 216,133 | 221,042 |
Residential real estate | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 9,706 | 13,048 |
Manufactured housing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 87,687 | 90,227 |
Manufactured housing | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Manufactured housing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Manufactured housing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Manufactured housing | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 79,518 | 81,497 |
Manufactured housing | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 8,169 | 8,730 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,570 | 3,547 |
Other | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Other | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,398 | 3,400 |
Other | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | $ 172 | $ 147 |
Regulatory Capital - Summary of
Regulatory Capital - Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 capital (to risk weighted assets), Actual Amount | $ 710,156 | $ 689,494 | ||
Tier 1 capital (to risk weighted assets), Actual Amount | 927,627 | 906,963 | ||
Total capital (to risk weighted assets), Actual Amount | 1,047,698 | 1,021,601 | ||
Tier 1 capital (to average assets), Actual Amount | $ 927,627 | $ 906,963 | ||
Common equity Tier 1 (to risk weighted assets), Actual Ratio | 8.508% | 8.805% | ||
Tier 1 capital (to risk weighted assets), Actual Ratio | 11.113% | 11.583% | ||
Total capital (to risk weighted assets), Actual Ratio | 12.552% | 13.047% | ||
Tier 1 capital (to average assets), Actual Ratio | 9.031% | 8.937% | ||
Common equity Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | $ 375,609 | $ 352,368 | ||
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 500,812 | 469,824 | ||
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 667,749 | 626,432 | ||
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount | $ 410,858 | $ 405,949 | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Ratio | 4.50% | 6.375% | 4.50% | |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 6.00% | 7.875% | 6.00% | |
Total capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 8.00% | 9.875% | 8.00% | |
Tier 1 capital (to average assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1 (to risk weighted assets), for Basel III amount | $ 532,113 | $ 450,248 | ||
Tier 1 (to risk weighted assets) Required for Basel III amount | 657,316 | 567,704 | ||
Total capital (to risk weighted assets), for Basel III amount | 824,253 | 724,313 | ||
Tier 1 (to risk average assets), for Basel III amount | $ 410,858 | $ 405,949 | ||
Common equity Tier 1 (to risk weighted assets), for Basel III ratio | 6.375% | 5.75% | ||
Tier 1 capital (to risk weighted assets), for Basel III ratio | 7.875% | 7.25% | ||
Total capital (to risk weighted assets), for Basel III ratio | 9.875% | 9.25% | ||
Tier 1 capital (to average assets), for Basel III ratio | 4.00% | 4.00% | ||
Customers Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 capital (to risk weighted assets), Actual Amount | $ 1,037,480 | $ 1,023,564 | ||
Tier 1 capital (to risk weighted assets), Actual Amount | 1,037,480 | 1,023,564 | ||
Total capital (to risk weighted assets), Actual Amount | 1,186,105 | 1,170,666 | ||
Tier 1 capital (to average assets), Actual Amount | $ 1,037,480 | $ 1,023,564 | ||
Common equity Tier 1 (to risk weighted assets), Actual Ratio | 12.448% | 13.081% | ||
Tier 1 capital (to risk weighted assets), Actual Ratio | 12.448% | 13.081% | ||
Total capital (to risk weighted assets), Actual Ratio | 14.231% | 14.961% | ||
Tier 1 capital (to average assets), Actual Ratio | 10.107% | 10.092% | ||
Common equity Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | $ 375,048 | $ 352,122 | ||
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 500,064 | 469,496 | ||
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 666,751 | 625,994 | ||
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount | $ 410,612 | $ 405,701 | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | 6.375% | |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 7.875% | |
Total capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | 9.875% | |
Tier 1 capital (to average assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1 Capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 541,736 | $ 508,621 | ||
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 666,751 | 625,994 | ||
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 833,439 | 782,493 | ||
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 513,265 | $ 507,126 | ||
Common equity Tier 1 (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% | ||
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | ||
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% | ||
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% | ||
Common equity Tier 1 (to risk weighted assets), for Basel III amount | $ 531,318 | $ 449,934 | ||
Tier 1 (to risk weighted assets) Required for Basel III amount | 656,333 | 567,307 | ||
Total capital (to risk weighted assets), for Basel III amount | 823,021 | 723,806 | ||
Tier 1 (to risk average assets), for Basel III amount | $ 410,612 | $ 405,701 | ||
Common equity Tier 1 (to risk weighted assets), for Basel III ratio | 6.375% | 5.75% | ||
Tier 1 capital (to risk weighted assets), for Basel III ratio | 7.875% | 7.25% | ||
Total capital (to risk weighted assets), for Basel III ratio | 9.875% | 9.25% | ||
Tier 1 capital (to average assets), for Basel III ratio | 4.00% | 4.00% |
Regulatory Capital - Narrative
Regulatory Capital - Narrative (Details) | Mar. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | Jan. 01, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Capital conservation buffer to risk weighted assets, year one | 0.625% | ||||
Capital conservation buffer to risk weighted assets, year two | 1.25% | ||||
Capital conservation buffer to risk weighted assets, year three | 1.875% | ||||
Capital conservation buffer to risk weighted assets, year four and thereafter | 2.50% | ||||
Capital conservation buffer, excess of minimum capital ratio | 2.50% | ||||
Common equity Tier 1 (to risk weighted assets), for capital adequacy purposes ratio | 4.50% | 6.375% | 4.50% | ||
Tier 1 capital (to risk weighted assets), for capital adequacy purposes ratio | 6.00% | 7.875% | 6.00% | ||
Total capital (to risk weighted assets), for capital adequacy purposes ratio | 8.00% | 9.875% | 8.00% | ||
Customers Bank | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Common equity Tier 1 (to risk weighted assets), for capital adequacy purposes ratio | 4.50% | 4.50% | 6.375% | ||
Tier 1 capital (to risk weighted assets), for capital adequacy purposes ratio | 6.00% | 6.00% | 7.875% | ||
Total capital (to risk weighted assets), for capital adequacy purposes ratio | 8.00% | 8.00% | 9.875% |
Disclosures About Fair Value 57
Disclosures About Fair Value of Financial Instruments - Narrative (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans held for sale, average life from purchase to sale | 21 days |
Disclosures About Fair Value 58
Disclosures About Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Carrying Amount | $ 215,411 | $ 146,323 | $ 177,290 | $ 264,709 |
Cash and cash equivalents, Estimated Fair Value | 215,411 | 146,323 | ||
Debt securities, available for sale | 1,178,299 | |||
Debt securities, available for sale, Estimated Fair Value | 1,178,299 | |||
Investment securities, at fair value | 1,181,661 | 471,371 | ||
Investments securities, available for sale, fair value | 471,371 | |||
Equity securities, carrying amount | 3,362 | |||
Equity securities, Estimated Fair Value | 3,362 | |||
Loans held for sale, Carrying Amount | 1,875,515 | 1,939,485 | ||
Loans held for sale, Estimated Fair Value | 1,875,515 | 1,939,659 | ||
Loans receivable, net of allowance for loan losses, Carrying Amount | 6,904,067 | 6,730,243 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 6,829,770 | 6,676,763 | ||
FHLB, Federal Reserve Bank and other restricted stock, Carrying Amount | 130,302 | 105,918 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 130,302 | 105,918 | ||
Derivative assets | 13,606 | 9,752 | ||
Deposits, Carrying Amount | 7,042,459 | 6,800,142 | ||
Deposits, Estimated Fair Value | 7,034,680 | 6,796,095 | ||
Federal funds purchased, Carrying Amount | 195,000 | 155,000 | ||
Federal funds purchased, Estimated Fair Value | 195,000 | 155,000 | ||
FHLB advances, Carrying Amount | 2,252,615 | 1,611,860 | ||
FHLB advances, Estimated Fair Value | 2,252,445 | 1,611,603 | ||
Other borrowings, Carrying Amount | 186,735 | 186,497 | ||
Other borrowings, Estimated Fair Value | 187,092 | 193,557 | ||
Subordinated debt, Carrying Amount | 108,904 | 108,880 | ||
Subordinated debt, Estimated Fair Value | 114,950 | 115,775 | ||
Derivative liabilities | 12,673 | 10,074 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Estimated Fair Value | 215,411 | 146,323 | ||
Debt securities, available for sale, Estimated Fair Value | 0 | |||
Investments securities, available for sale, fair value | 3,352 | |||
Equity securities, Estimated Fair Value | 3,362 | |||
Loans held for sale, Estimated Fair Value | 0 | 0 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 0 | 0 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Deposits, Estimated Fair Value | 5,153,428 | 4,894,449 | ||
Federal funds purchased, Estimated Fair Value | 195,000 | 155,000 | ||
FHLB advances, Estimated Fair Value | 1,687,615 | 881,860 | ||
Other borrowings, Estimated Fair Value | 64,262 | 65,072 | ||
Subordinated debt, Estimated Fair Value | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Estimated Fair Value | 0 | 0 | ||
Debt securities, available for sale, Estimated Fair Value | 1,178,299 | |||
Investments securities, available for sale, fair value | 468,019 | |||
Equity securities, Estimated Fair Value | 0 | |||
Loans held for sale, Estimated Fair Value | 1,875,515 | 1,795,294 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 0 | 0 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 130,302 | 105,918 | ||
Derivative assets | 13,523 | 9,692 | ||
Deposits, Estimated Fair Value | 1,881,252 | 1,901,646 | ||
Federal funds purchased, Estimated Fair Value | 0 | 0 | ||
FHLB advances, Estimated Fair Value | 564,830 | 729,743 | ||
Other borrowings, Estimated Fair Value | 122,830 | 128,485 | ||
Subordinated debt, Estimated Fair Value | 114,950 | 115,775 | ||
Derivative liabilities | 12,673 | 10,074 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Estimated Fair Value | 0 | 0 | ||
Debt securities, available for sale, Estimated Fair Value | 0 | |||
Investments securities, available for sale, fair value | 0 | |||
Equity securities, Estimated Fair Value | 0 | |||
Loans held for sale, Estimated Fair Value | 0 | 144,365 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 6,829,770 | 6,676,763 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 0 | 0 | ||
Derivative assets | 83 | 60 | ||
Deposits, Estimated Fair Value | 0 | 0 | ||
Federal funds purchased, Estimated Fair Value | 0 | 0 | ||
FHLB advances, Estimated Fair Value | 0 | 0 | ||
Other borrowings, Estimated Fair Value | 0 | 0 | ||
Subordinated debt, Estimated Fair Value | 0 | 0 | ||
Derivative liabilities | $ 0 | $ 0 |
Disclosures About Fair Value 59
Disclosures About Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | $ 3,070,782 | $ 2,276,417 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 13,996 | 15,351 |
Specific reserves related to impaired loans | 2,119 | 1,451 |
Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 13,606 | 9,752 |
Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 1,875,515 | 1,795,294 |
Derivative liabilities | ||
Liabilities | ||
Derivatives | 12,673 | 10,074 |
Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 12,588 | 13,902 |
Specific reserves related to impaired loans | 2,119 | 1,451 |
Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 1,408 | 1,449 |
Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 3,362 | |
Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 493,257 | 183,458 |
Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 324,534 | 238,472 |
Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 360,508 | 46,089 |
Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 3,352 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 3,362 | 3,352 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative liabilities | ||
Liabilities | ||
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 3,362 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 3,352 | |
Significant Other Observable Inputs (Level 2) | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 3,067,337 | 2,273,005 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 13,523 | 9,692 |
Significant Other Observable Inputs (Level 2) | Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 1,875,515 | 1,795,294 |
Significant Other Observable Inputs (Level 2) | Derivative liabilities | ||
Liabilities | ||
Derivatives | 12,673 | 10,074 |
Significant Other Observable Inputs (Level 2) | Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 493,257 | 183,458 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 324,534 | 238,472 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 360,508 | 46,089 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 83 | 60 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 13,996 | 15,351 |
Significant Unobservable Inputs (Level 3) | Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 83 | 60 |
Significant Unobservable Inputs (Level 3) | Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Derivative liabilities | ||
Liabilities | ||
Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 12,588 | 13,902 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 1,408 | 1,449 |
Significant Unobservable Inputs (Level 3) | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | $ 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | $ 0 |
Disclosures About Fair Value 60
Disclosures About Fair Value of Financial Instruments - Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Detail) - Significant Unobservable Inputs (Level 3) - Residential Mortgage Loan Commitments - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning | $ 60 | $ 45 |
Issuances | 83 | 95 |
Settlements | (60) | (45) |
Balance at ending | $ 83 | $ 95 |
Disclosures About Fair Value 61
Disclosures About Fair Value of Financial Instruments - Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 1,742 | $ 1,726 |
Impaired loans, net of specific reserves | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 8.00% | 8.00% |
Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 11.00% | 8.00% |
Residential mortgage loan commitments | Adjusted Market Bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments pull through rate | 90.00% | 90.00% |
Fair Value Estimate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments | $ 83 | $ 60 |
Fair Value Estimate | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 12,588 | 13,902 |
Other real estate owned | $ 1,408 | $ 1,449 |
Derivative Instruments and He62
Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)derivativeswap | Dec. 31, 2017USD ($)derivativeswap | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassification adjustment from accumulated other comprehensive income | $ (0.8) | |
Assets needed for immediate settlement of derivatives in a net liability position | 0.2 | |
Minimum collateral with counterparties | $ 0.4 | |
Minimum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 30 days | |
Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 60 days | |
Not Designated as Hedging Instrument | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 3.6 | $ 2.7 |
Interest Rate Swaps | Derivative Designated as Cash Flow Hedges | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of outstanding interest rate derivatives (derivative) | derivative | 11 | 9 |
Aggregate notional amount | $ 960 | $ 550 |
Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 813.7 | $ 800.5 |
Number of interest rate swaps (swap) | swap | 84 | 76 |
Credit Contract | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 80 | $ 80.5 |
Derivative Instruments and He63
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | $ 11,716 | $ 5,930 |
Derivative Liabilities, Fair Value | 2,405 | 5,058 |
Other Assets | Derivative Designated as Cash Flow Hedges | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 1,224 | 816 |
Other Assets | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 12,382 | 8,936 |
Other Assets | Not Designated as Hedging Instrument | Residential Mortgage Loan Commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 83 | 60 |
Other Assets | Not Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 12,235 | 8,776 |
Other Assets | Not Designated as Hedging Instrument | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 64 | 100 |
Other Liabilities | Derivative Designated as Cash Flow Hedges | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 545 | 1,140 |
Other Liabilities | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 12,128 | 8,934 |
Other Liabilities | Not Designated as Hedging Instrument | Residential Mortgage Loan Commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 0 | 0 |
Other Liabilities | Not Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 12,104 | 8,897 |
Other Liabilities | Not Designated as Hedging Instrument | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | $ 24 | $ 37 |
Derivative Instruments and He64
Derivative Instruments and Hedging Activities - Effect of Derivative Financial Instruments on Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Expense | Interest Rate Swaps | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 646 | $ 201 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (131) | (827) |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Income (Loss) Recognized in Earnings | 385 | 533 |
Not Designated as Hedging Instrument | Other Non-interest Income | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Income (Loss) Recognized in Earnings | 385 | 483 |
Not Designated as Hedging Instrument | Other Non-interest Income | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Income (Loss) Recognized in Earnings | (23) | 0 |
Not Designated as Hedging Instrument | Mortgage Banking Income | Residential Mortgage Loan Commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Income (Loss) Recognized in Earnings | $ 23 | $ 50 |
Derivative Instruments and He65
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting Assets [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 13,606 | $ 9,752 |
Interest Rate Swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Assets | 11,716 | 5,930 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 11,716 | 5,930 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral received | 9,240 | 5,070 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 2,476 | $ 860 |
Derivative Instruments and He66
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Offsetting Liabilities [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 12,673 | $ 10,074 |
Interest Rate Swaps | ||
Offsetting Liabilities [Line Items] | ||
Gross Amount of Recognized Liabilities | 2,405 | 5,058 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 2,405 | 5,058 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged | 352 | 4,872 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 2,053 | $ 186 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments (segment) | Segment | 2 | ||
Interest income | $ 96,964 | $ 83,094 | |
Interest expense | 31,933 | 20,676 | |
Net interest income | 65,031 | 62,418 | |
Provision for loan losses | 2,117 | 3,050 | |
Total non-interest income | 20,910 | 22,754 | |
Non-interest expense | 52,280 | 49,366 | |
Income before income tax expense | 31,544 | 32,756 | |
Income tax expense (benefit) | 7,402 | 7,009 | |
Net income (loss) | 24,142 | 25,747 | |
Preferred stock dividends | 3,615 | 3,615 | |
Net income (loss) available to common shareholders | 20,527 | 22,132 | |
Goodwill and other intangibles | 17,477 | $ 16,295 | |
Assets | 10,769,266 | 9,839,555 | |
Deposits | 7,042,459 | $ 6,800,142 | |
Combined Business Segments | |||
Segment Reporting Information [Line Items] | |||
Interest income | 96,964 | 83,094 | |
Interest expense | 31,933 | 20,676 | |
Net interest income | 65,031 | 62,418 | |
Provision for loan losses | 2,117 | 3,050 | |
Total non-interest income | 20,910 | 22,754 | |
Non-interest expense | 52,280 | 49,366 | |
Income before income tax expense | 31,544 | 32,756 | |
Income tax expense (benefit) | 7,402 | 7,009 | |
Net income (loss) | 24,142 | 25,747 | |
Preferred stock dividends | 3,615 | 3,615 | |
Net income (loss) available to common shareholders | 20,527 | 22,132 | |
Goodwill and other intangibles | 17,477 | 17,618 | |
Assets | 10,769,266 | 9,906,636 | |
Deposits | 7,042,459 | 7,335,480 | |
Non-deposit Liabilities | $ 2,807,719 | $ 1,691,339 | |
Operating Segments | Community Business Banking | |||
Segment Reporting Information [Line Items] | |||
Effective tax rate | 24.57% | 37.25% | |
Interest income | $ 92,554 | $ 78,832 | |
Interest expense | 31,917 | 20,656 | |
Net interest income | 60,637 | 58,176 | |
Provision for loan losses | 1,874 | 3,050 | |
Total non-interest income | 8,439 | 5,427 | |
Non-interest expense | 34,331 | 30,147 | |
Income before income tax expense | 32,871 | 30,406 | |
Income tax expense (benefit) | 7,728 | 6,116 | |
Net income (loss) | 25,143 | 24,290 | |
Preferred stock dividends | 3,615 | 3,615 | |
Net income (loss) available to common shareholders | 21,528 | 20,675 | |
Goodwill and other intangibles | 3,630 | 3,636 | |
Assets | 10,690,479 | 9,833,721 | |
Deposits | 6,418,810 | 6,627,061 | |
Non-deposit Liabilities | 2,759,156 | 1,660,967 | |
Operating Segments | BankMobile | |||
Segment Reporting Information [Line Items] | |||
Interest income | 4,410 | 4,262 | |
Interest expense | 16 | 20 | |
Net interest income | 4,394 | 4,242 | |
Provision for loan losses | 243 | 0 | |
Total non-interest income | 12,471 | 17,327 | |
Non-interest expense | 17,949 | 19,219 | |
Income before income tax expense | (1,327) | 2,350 | |
Income tax expense (benefit) | (326) | 893 | |
Net income (loss) | (1,001) | 1,457 | |
Preferred stock dividends | 0 | 0 | |
Net income (loss) available to common shareholders | (1,001) | 1,457 | |
Goodwill and other intangibles | 13,847 | 13,982 | |
Assets | 78,787 | 72,915 | |
Deposits | 623,649 | 708,419 | |
Non-deposit Liabilities | 48,563 | 30,372 | |
Segment Reconciling Items | BankMobile | |||
Segment Reporting Information [Line Items] | |||
Interest income | $ 4,400 | $ 4,300 |
Non-Interest Revenues - Narrati
Non-Interest Revenues - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Interchange and card revenue | $ 9,661 | $ 13,511 | |
Contract with customer, liability | 1,811 | $ 2,002 | |
Contract with customer, asset | 1,200 | $ 1,100 | |
Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Interchange and card revenue | $ 1,500 | $ 800 |
Non-Interest Revenues - Non-int
Non-Interest Revenues - Non-interest Revenues by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Deposit fees | $ 2,092 | $ 3,127 |
Accounting Standards Update 2014-09 | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 12,949 | 17,825 |
Accounting Standards Update 2014-09 | Community Business Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 510 | 527 |
Accounting Standards Update 2014-09 | BankMobile | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 12,439 | 17,298 |
Accounting Standards Update 2014-09 | Transferred at Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Card Revenue | 9,661 | 13,511 |
Deposit fees | 2,092 | 3,127 |
University Fees - Card and Disbursement Fees | 326 | 392 |
Total revenue from contracts with customers | 12,079 | 17,030 |
Accounting Standards Update 2014-09 | Transferred at Point in Time | Community Business Banking | ||
Disaggregation of Revenue [Line Items] | ||
Card Revenue | 223 | 203 |
Deposit fees | 287 | 324 |
University Fees - Card and Disbursement Fees | 0 | 0 |
Total revenue from contracts with customers | 510 | 527 |
Accounting Standards Update 2014-09 | Transferred at Point in Time | BankMobile | ||
Disaggregation of Revenue [Line Items] | ||
Card Revenue | 9,438 | 13,308 |
Deposit fees | 1,805 | 2,803 |
University Fees - Card and Disbursement Fees | 326 | 392 |
Total revenue from contracts with customers | 11,569 | 16,503 |
Accounting Standards Update 2014-09 | Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
University Fees - Subscription Revenue | 870 | 795 |
Total revenue from contracts with customers | 870 | 795 |
Accounting Standards Update 2014-09 | Transferred over Time | Community Business Banking | ||
Disaggregation of Revenue [Line Items] | ||
University Fees - Subscription Revenue | 0 | 0 |
Total revenue from contracts with customers | 0 | 0 |
Accounting Standards Update 2014-09 | Transferred over Time | BankMobile | ||
Disaggregation of Revenue [Line Items] | ||
University Fees - Subscription Revenue | 870 | 795 |
Total revenue from contracts with customers | $ 870 | $ 795 |