Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Customers Bancorp, Inc. | ||
Entity Central Index Key | 1,488,813 | ||
Trading Symbol | CUBI | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K/A | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Amendment Description | As previously reported on its Current Report on Form 8-K, which was filed with the SEC on November 13, 2018, Customers Bancorp, Inc. is restating its previously issued audited consolidated financial statements for 2017, 2016 and 2015 and its interim unaudited consolidated financial statements as of and for the three months ended March 31, 2018 and 2017 and the three and six months ended June 30, 2018 and 2017, because of misclassifications of cash flow activities associated with its commercial mortgage warehouse lending activities between operating and investing activities on the consolidated statements of cash flows because the related loan balances were incorrectly classified as held for sale rather than held for investment on the consolidated balance sheets. Accordingly, management has concluded that the control deficiency that resulted in these incorrect classifications constituted a material weakness in internal control over financial reporting. Solely as a result of this material weakness, management revised its earlier assessment and has now concluded that its disclosure controls and procedures were not effective at December 31, 2017. | ||
Entity Common Stock, Shares Outstanding | 31,439,416 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 814,989,106 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 20,388 | $ 37,485 |
Interest earning deposits | 125,935 | 227,224 |
Cash and cash equivalents | 146,323 | 264,709 |
Investment securities available for sale, at fair value | 471,371 | 493,474 |
Loans held for sale (includes $1,886 and $695, respectively at fair value) | 146,077 | 695 |
Loans receivable, mortgage warehouse, at fair value | 1,793,408 | 2,116,815 |
Loans receivable | 6,768,258 | 6,154,637 |
Allowance for loan losses | (38,015) | (37,315) |
Total loans receivable, net of allowance for loan losses | 8,523,651 | 8,234,137 |
FHLB, Federal Reserve Bank, and other restricted stock | 105,918 | 68,408 |
Accrued interest receivable | 27,021 | 23,690 |
Bank premises and equipment, net | 11,955 | 12,769 |
Bank-owned life insurance | 257,720 | 161,494 |
Other real estate owned | 1,726 | 3,108 |
Goodwill and other intangibles | 16,295 | 17,621 |
Other assets | 131,498 | 102,631 |
Total assets | 9,839,555 | 9,382,736 |
Deposits: | ||
Demand, non-interest bearing | 1,052,115 | 966,058 |
Interest bearing | 5,748,027 | 6,337,717 |
Total deposits | 6,800,142 | 7,303,775 |
Federal funds purchased | 155,000 | 83,000 |
FHLB advances | 1,611,860 | 868,800 |
Other borrowings | 186,497 | 87,123 |
Subordinated debt | 108,880 | 108,783 |
Accrued interest payable and other liabilities | 56,212 | 75,383 |
Total liabilities | 8,918,591 | 8,526,864 |
Commitments and contingencies (Notes 18 and 22) | ||
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 December 31, 2017 and 2016 | 217,471 | 217,471 |
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 31,912,763 and 30,820,177 shares issued as of December 31, 2017 and 2016; 31,382,503 and 30,289,917 shares outstanding as of December 31, 2017 and 2016 | 31,913 | 30,820 |
Additional paid in capital | 422,096 | 427,008 |
Retained earnings | 258,076 | 193,698 |
Accumulated other comprehensive loss, net | (359) | (4,892) |
Treasury stock, at cost (530,260 shares as of December 31, 2017 and 2016) | (8,233) | (8,233) |
Total shareholders’ equity | 920,964 | 855,872 |
Total liabilities and shareholders’ equity | $ 9,839,555 | $ 9,382,736 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Loans held for sale at fair value | $ 1,886 | $ 695 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference (usd per share) | $ 25 | $ 25 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 9,000,000 | 9,000,000 |
Preferred stock, shares outstanding | 9,000,000 | 9,000,000 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 31,912,763 | 30,820,177 |
Common stock, shares outstanding | 31,382,503 | 30,289,917 |
Treasury stock, shares | 530,260 | 530,260 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income: | |||
Loans | $ 339,936 | $ 302,818 | $ 233,833 |
Investment securities | 25,153 | 14,293 | 10,405 |
Other | 7,761 | 5,428 | 5,612 |
Total interest income | 372,850 | 322,539 | 249,850 |
Interest expense: | |||
Deposits | 67,582 | 48,268 | 33,982 |
Other borrowings | 10,056 | 6,438 | 6,096 |
FHLB advances | 21,130 | 11,597 | 6,743 |
Subordinated debt | 6,739 | 6,739 | 6,739 |
Total interest expense | 105,507 | 73,042 | 53,560 |
Net interest income | 267,343 | 249,497 | 196,290 |
Provision for loan losses | 6,768 | 3,041 | 20,566 |
Net interest income after provision for loan losses | 260,575 | 246,456 | 175,724 |
Non-interest income: | |||
Interchange and card revenue | 41,509 | 24,681 | 557 |
Deposit fees | 10,039 | 8,067 | 944 |
Mortgage warehouse transactional fees | 9,345 | 11,547 | 10,394 |
Gain (loss) on sale of investment securities | 8,800 | 25 | (85) |
Bank-owned life insurance | 7,219 | 4,736 | 7,006 |
Gains on sale of SBA and other loans | 4,223 | 3,685 | 4,047 |
Mortgage banking income | 875 | 969 | 741 |
Impairment loss on investment securities | (12,934) | (7,262) | 0 |
Other | 9,834 | 9,922 | 4,113 |
Total non-interest income | 78,910 | 56,370 | 27,717 |
Non-interest expense: | |||
Salaries and employee benefits | 95,518 | 80,641 | 58,777 |
Technology, communication and bank operations | 45,885 | 26,839 | 10,596 |
Professional services | 28,051 | 20,684 | 11,042 |
Occupancy | 11,161 | 10,327 | 8,668 |
FDIC assessments, non-income taxes, and regulatory fees | 7,906 | 13,097 | 10,728 |
Provision for operating losses | 6,435 | 3,517 | 140 |
Loan workout | 2,366 | 2,063 | 1,127 |
Other real estate owned | 570 | 1,953 | 2,516 |
Advertising and promotion | 1,470 | 1,549 | 1,475 |
Merger and acquisition related expenses | 410 | 1,195 | 0 |
Other | 15,834 | 16,366 | 9,877 |
Total non-interest expense | 215,606 | 178,231 | 114,946 |
Income before income tax expense | 123,879 | 124,595 | 88,495 |
Income tax expense | 45,042 | 45,893 | 29,912 |
Net income | 78,837 | 78,702 | 58,583 |
Preferred stock dividends | 14,459 | 9,515 | 2,493 |
Net income available to common shareholders | $ 64,378 | $ 69,187 | $ 56,090 |
Basic earnings per common share (usd per share) | $ 2.10 | $ 2.51 | $ 2.09 |
Diluted earnings per common share (usd per share) | $ 1.97 | $ 2.31 | $ 1.96 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 78,837 | $ 78,702 | $ 58,583 |
Unrealized gains (losses) on available-for-sale securities: | |||
Unrealized gains (losses) arising during the period | 12,266 | (3,335) | (10,140) |
Income tax effect | (4,378) | 1,317 | 3,759 |
Reclassification adjustments for (gains) losses included in net income | (8,800) | 7,237 | 85 |
Income tax effect | 3,432 | (2,714) | (32) |
Net unrealized gains (losses) on available-for-sale securities | 2,520 | 2,505 | (6,328) |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized gains (losses) arising during the period | 666 | (1,093) | (2,532) |
Income tax effect | (260) | 464 | 998 |
Reclassification adjustment for losses included in net income | 2,634 | 1,946 | 0 |
Income tax effect | (1,027) | (730) | 0 |
Net unrealized gains (losses) on cash flow hedges | 2,013 | 587 | (1,534) |
Other comprehensive income (loss), net of income tax effect | 4,533 | 3,092 | (7,862) |
Comprehensive income | $ 83,370 | $ 81,794 | $ 50,721 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Common Stock | Common StockCommon Stock | Common StockAdditional Paid in Capital | Preferred Stock | Preferred StockPreferred Stock |
Beginning balance at Dec. 31, 2014 | $ 443,145 | $ 0 | $ 27,278 | $ 355,822 | $ 68,421 | $ (122) | $ (8,254) | |||||
Beginning balance, preferred stock (shares) at Dec. 31, 2014 | 0 | |||||||||||
Beginning balance, common stock (shares) at Dec. 31, 2014 | 26,745,529 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 58,583 | 58,583 | ||||||||||
Other comprehensive income (loss) | (7,862) | (7,862) | ||||||||||
Issuance of stock, net of offering costs | $ 55,569 | $ 55,569 | ||||||||||
Issuance of stock, net of offering costs (shares) | 2,300,000 | |||||||||||
Preferred stock dividends | (2,493) | (2,493) | ||||||||||
Share-based compensation expense | 4,862 | 4,862 | ||||||||||
Exercise of warrants | 98 | $ 8 | 90 | |||||||||
Exercise of warrants (shares) | 7,611 | |||||||||||
Issuance of common stock under share-based-compensation arrangements | 2,000 | $ 146 | 1,833 | 21 | ||||||||
Issuance of common stock under share-based-compensation arrangements (shares) | 148,661 | |||||||||||
Ending balance at Dec. 31, 2015 | 553,902 | $ 55,569 | $ 27,432 | 362,607 | 124,511 | (7,984) | (8,233) | |||||
Ending balance, preferred stock (shares) at Dec. 31, 2015 | 2,300,000 | |||||||||||
Ending balance, common stock (shares) at Dec. 31, 2015 | 26,901,801 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 78,702 | 78,702 | ||||||||||
Other comprehensive income (loss) | 3,092 | 3,092 | ||||||||||
Issuance of stock, net of offering costs | $ 64,031 | $ 2,642 | $ 61,389 | $ 161,902 | $ 161,902 | |||||||
Issuance of stock, net of offering costs (shares) | 2,641,677 | 6,700,000 | ||||||||||
Preferred stock dividends | (9,515) | (9,515) | ||||||||||
Share-based compensation expense | 6,189 | 6,189 | ||||||||||
Exercise of warrants | 1,531 | $ 345 | 1,186 | |||||||||
Exercise of warrants (shares) | 345,414 | |||||||||||
Issuance of common stock under share-based-compensation arrangements | (3,962) | $ 401 | (4,363) | |||||||||
Issuance of common stock under share-based-compensation arrangements (shares) | 401,025 | |||||||||||
Ending balance at Dec. 31, 2016 | $ 855,872 | $ 217,471 | $ 30,820 | 427,008 | 193,698 | (4,892) | (8,233) | |||||
Ending balance, preferred stock (shares) at Dec. 31, 2016 | 9,000,000 | 9,000,000 | ||||||||||
Ending balance, common stock (shares) at Dec. 31, 2016 | 30,289,917 | 30,289,917 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | $ 78,837 | 78,837 | ||||||||||
Other comprehensive income (loss) | 4,533 | 4,533 | ||||||||||
Preferred stock dividends | (14,459) | (14,459) | ||||||||||
Share-based compensation expense | 6,088 | 6,088 | ||||||||||
Exercise of warrants | 1,059 | $ 74 | 985 | |||||||||
Exercise of warrants (shares) | 74,161 | |||||||||||
Issuance of common stock under share-based-compensation arrangements | (10,966) | $ 1,019 | (11,985) | |||||||||
Issuance of common stock under share-based-compensation arrangements (shares) | 1,018,425 | |||||||||||
Ending balance at Dec. 31, 2017 | $ 920,964 | $ 217,471 | $ 31,913 | $ 422,096 | $ 258,076 | $ (359) | $ (8,233) | |||||
Ending balance, preferred stock (shares) at Dec. 31, 2017 | 9,000,000 | 9,000,000 | ||||||||||
Ending balance, common stock (shares) at Dec. 31, 2017 | 31,382,503 | 31,382,503 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Common Stock | ||
Offering costs | $ 2,238 | |
Preferred Stock | ||
Offering costs | $ 5,598 | $ 1,931 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net income | $ 78,837 | $ 78,702 | $ 58,583 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses, net of change to FDIC receivable and clawback liability | 6,768 | 3,041 | 20,566 |
Depreciation and amortization | 10,801 | 5,897 | 3,998 |
Share-based compensation expense | 7,167 | 7,069 | 5,661 |
Deferred taxes | 14,820 | (2,579) | (10,092) |
Net amortization of investment securities premiums and discounts | 702 | 891 | 858 |
(Gain) loss on sale of investment securities | (8,800) | (25) | 85 |
Impairment loss on investment securities | 12,934 | 7,262 | 0 |
Gain on sale of SBA and other loans | (4,898) | (3,685) | (4,479) |
Origination of loans held for sale | (41,172) | (39,750) | (39,257) |
Proceeds from the sale of loans held for sale | 40,656 | 42,772 | 40,815 |
Decrease (increase) in FDIC loss sharing receivable net of clawback liability | 0 | 255 | (2,430) |
Amortization of fair value discounts and premiums | 88 | 405 | 832 |
Net loss on sales of other real estate owned | 154 | 130 | 761 |
Valuation and other adjustments to other real estate owned, net of FDIC receivable | 298 | 1,473 | 992 |
Earnings on investment in bank-owned life insurance | (7,219) | (4,736) | (7,006) |
Increase in accrued interest receivable and other assets | (32,256) | (11,538) | (12,024) |
(Decrease) increase in accrued interest payable and other liabilities | (16,687) | 5,819 | 8,706 |
Net Cash Provided by Operating Activities | 62,193 | 91,403 | 66,569 |
Cash Flows from Investing Activities | |||
Purchases of investment securities available for sale | (796,594) | (5,000) | (231,703) |
Proceeds from maturities, calls and principal repayments on investment securities available for sale | 48,124 | 64,701 | 76,331 |
Proceeds from sales of investment securities available for sale | 769,203 | 2,852 | 806 |
Origination of mortgage warehouse loans | (30,084,255) | (36,091,174) | (29,886,506) |
Proceeds from repayments of mortgage warehouse loans | 30,407,662 | 35,729,309 | 29,463,289 |
Net increase in loans | (960,372) | (794,954) | (1,341,133) |
Purchase of loans | (262,641) | 0 | 0 |
Proceeds from sale of loans | 462,518 | 133,104 | 248,060 |
Purchases of bank-owned life insurance | (90,000) | 0 | (15,000) |
Proceeds from bank-owned life insurance | 1,418 | 619 | 3,384 |
Net (purchases of) proceeds from FHLB, Federal Reserve Bank, and other restricted stock | (37,510) | 22,433 | (8,839) |
(Payments to) reimbursements from the FDIC on loss sharing agreements | 0 | (2,049) | 3,917 |
Purchases of leased assets under operating leases | (22,223) | 0 | 0 |
Purchases of bank premises and equipment | (2,135) | (5,426) | (2,939) |
Proceeds from sales of other real estate owned | 1,680 | 1,051 | 8,890 |
Acquisition of Disbursements business, net | 0 | (17,000) | 0 |
Net Cash Used in Investing Activities | (565,125) | (961,534) | (1,681,443) |
Cash Flows from Financing Activities | |||
Net (decrease) increase in deposits | (503,633) | 1,394,276 | 1,376,985 |
Net increase (decrease) in short-term borrowed funds from the FHLB | 743,060 | (831,500) | (17,700) |
Net increase in federal funds purchased | 72,000 | 13,000 | 70,000 |
Proceeds from long-term FHLB borrowings | 0 | 75,000 | 25,000 |
Proceeds from issuance of long-term debt | 98,564 | 0 | 0 |
Net proceeds from issuance of preferred stock | 0 | 161,902 | 55,569 |
Preferred stock dividends paid | (14,459) | (9,051) | (2,314) |
Exercise and redemption of warrants | 1,059 | 1,532 | 98 |
Payment of employee taxes withheld from share-based awards | (14,761) | (5,897) | 0 |
Net proceeds from issuance of common stock | 2,716 | 70,985 | 806 |
Net Cash Provided by Financing Activities | 384,546 | 870,247 | 1,508,444 |
Net (Decrease) Increase in Cash and Cash Equivalents | (118,386) | 116 | (106,430) |
Cash and Cash Equivalents – Beginning | 264,709 | 264,593 | 371,023 |
Cash and Cash Equivalents – Ending | 146,323 | 264,709 | 264,593 |
Supplementary Cash Flow Information | |||
Interest paid | 101,575 | 71,216 | 51,313 |
Income taxes paid | 40,282 | 57,251 | 38,734 |
Non-cash Items: | |||
Transfer of loans to other real estate owned | 750 | 703 | 3,467 |
Transfer of loans from held for investment to held for sale | 150,638 | 0 | 0 |
Transfer of loans from held for sale to held for investment | $ 0 | $ 25,118 | $ 30,365 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2017 | |
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; 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, and Philadelphia, Pennsylvania. 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 sell 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-related assets and liabilities were reported as held for sale in the consolidated balance sheet as of December 31, 2016, and its operating results and cash flows for the years ended December 31, 2016 and 2015, were presented as discontinued operations. All prior period amounts have been reclassified to conform with the current period consolidated financial statement presentation. See NOTE 3 - SPIN-OFF AND MERGER. Customers Bank 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. |
Acquisition Activity
Acquisition Activity | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition Activity | ACQUISITION ACTIVITY On June 15, 2016, Customers completed the acquisition of substantially all the assets and the assumption of certain liabilities of the Disbursement business from Higher One. The acquisition was completed pursuant to the terms of an Asset Purchase Agreement (the "Purchase Agreement") dated as of December 15, 2015, between Customers and Higher One. Under the terms of the Purchase Agreement, Customers also acquired all existing relationships with vendors and educational institutions, and all intellectual property and assumed normal business related liabilities. In conjunction with the acquisition, Customers hired approximately 225 Higher One employees primarily located in New Haven, Connecticut that manage the Disbursement business and serve the Disbursement business customers. The transaction contemplated aggregate guaranteed payments to Higher One of $42 million . The aggregate purchase price payable by Customers was $37 million in cash, with the payments to be made as follows: (i) $17 million in cash paid upon the closing of the acquisition, (ii) $10 million in cash to be paid upon the first anniversary of the closing and (iii) $10 million in cash to be paid upon the second anniversary of the closing. In addition, concurrently with the closing, the parties entered into a Transition Services Agreement pursuant to which Higher One provided certain transition services to Customers through June 30, 2017. As consideration for these services, Customers paid Higher One an additional $5 million in cash. Customers will also be required to make additional payments to Higher One if, during the three years following the closing, revenues from the Disbursement business exceed $75 million in a year. The potential payment is equal to 35% of the amount the Disbursement business related revenue exceeds $75 million in each year. As of December 31, 2017 , Customers has not recorded a liability for any additional contingent consideration payable under the Purchase Agreement. As specified in the Purchase Agreement, the payments of $10 million payable to Higher One upon each of the first and second anniversary of the transaction closing were placed into an escrow account with a third party. Upon the first anniversary of the transaction closing in June 2017, Customers paid to Higher One the first $10 million installment payment. In December 2017, Customers paid $5 million of the second installment payment to Higher One in advance of the second anniversary of the transaction closing pursuant to a mutual agreement between Customers and Higher One. The remaining $5 million of the second installment payment will be held in the escrow account until June 2018. The escrow account with $5 million and $20 million , respectively, as of December 31, 2017 and 2016, in aggregate restricted cash and the corresponding obligation to pay Higher One pursuant to the terms of the Purchase Agreement have been assigned to BankMobile and are included with "Cash and cash equivalents" and "Accrued interest payable and other liabilities" on the December 31, 2017 and 2016 consolidated balance sheets. For more information regarding Customers' plans for BankMobile and the presentation of BankMobile within the consolidated financial statements, see NOTE 3 - SPIN-OFF AND MERGER. The assets acquired and liabilities assumed were initially presented at their estimated fair values based on a preliminary allocation of the purchase price. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that were highly subjective and subject to change. The fair value estimates were considered preliminary and subject to change after the closing date of the acquisition if additional information became available. Based on a preliminary purchase price allocation, Customers recorded $4.3 million in goodwill as a result of the acquisition. At December 31, 2016, Customers recorded adjustments to the estimated fair values of prepaid expenses and other liabilities, which resulted in a $1.0 million increase in goodwill. The adjusted amount of goodwill of $5.3 million reflects the excess purchase price over the estimated fair value of the net assets acquired. The goodwill recorded is deductible for tax purposes. The purchase price allocation was considered final as of June 30, 2017. The following table summarizes the final adjusted amounts recognized for assets acquired and liabilities assumed: (amounts in thousands) Fair value of assets acquired: Developed software $ 27,400 Other intangible assets 9,300 Accounts receivable 2,784 Prepaid expenses 418 Fixed assets, net 229 Total assets acquired 40,131 Fair value of liabilities assumed: Other liabilities 5,735 Deferred revenue 2,655 Total liabilities assumed 8,390 Net assets acquired $ 31,741 Transaction cash consideration (1) $ 37,000 Goodwill recognized $ 5,259 (1) Includes $10 million payable to Higher One upon each of the first and second anniversary of the transaction closing, which has been placed into an escrow account with a third party (aggregate amount of $20 million ). As of December 31, 2017, $15 million of the $20 million installment payments had been paid to Higher One. The fair value for the developed software was estimated based on expected revenue attributable to the software utilizing a discounted cash flow methodology giving consideration to potential obsolescence. The developed software is being amortized over ten years based on the estimated economic benefits received. The fair values for the other intangible assets represent the value of existing student and university relationships and a non-compete agreement with Higher One based on estimated retention rates and discounted cash flows. Other intangible assets are being amortized over an estimated life ranging from four to twenty years . |
Tax-Free Spin-Off and Merger
Tax-Free Spin-Off and Merger | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Tax-Free 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 the shares of BMT common stock they received 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 December 31, 2017 consolidated balance sheet. The Amended Agreement provides that completion of the transactions will be subject to the receipt of all necessary regulatory approvals, certain Flagship shareholder approvals, successful raising of capital by Flagship and other customary closing conditions. Customers expects the transactions to close in mid-2018. At December 31, 2016, Customers intended to sell its BankMobile division, and the BankMobile division met the criteria to be classified as held for sale; and accordingly the assets and liabilities of BankMobile were presented as “Assets held for sale,” “Non-interest bearing deposits held for sale,” and “Other liabilities held for sale” and BankMobile’s operating results and associated cash flows were presented as “Discontinued operations.” 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 and merger transaction should not be reported as held for sale or discontinued operations until execution of the spin-off and merger. 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 assets, liabilities, operating results and cash flows were no longer reported as held for sale or discontinued operations but instead were 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. BankMobile's assets, liabilities, operating results and cash flows at December 31, 2017 and 2016, and for the years ended December 31, 2017, 2016 and 2015, are reported as held and used in the accompanying consolidated financial statements. Prior reported December 31, 2016 assets held for sale, non-interest bearing deposits held for sale and other liabilities held for sale have been reclassified to conform with the current period presentation as summarized below. Amounts previously reported as discontinued operations for the years ended December 31, 2016 and 2015, have also been reclassified to conform with the current period presentation as summarized below. Customers will continue reporting the Community Business Banking and BankMobile segment results. See NOTE 24 - BUSINESS SEGMENTS. The following table summarizes the effects of the reclassification of BankMobile's assets and liabilities from held for sale to held and used on the previously reported consolidated balance sheet as of December 31, 2016: December 31, 2016 As Previously Reported Effect of Reclassification From Held For Sale to Held and Used December 31, 2016 After Reclassification (amounts in thousands) ASSETS Cash and cash equivalents $ 244,709 $ 20,000 $ 264,709 Loans receivable 6,142,390 12,247 6,154,637 Bank premises and equipment, net 12,259 510 12,769 Goodwill and other intangibles 3,639 13,982 17,621 Assets held for sale 79,271 (79,271 ) — Other assets 70,099 32,532 102,631 LIABILITIES Demand, non-interest bearing deposits $ 512,664 $ 453,394 $ 966,058 Interest-bearing deposits 6,334,316 3,401 6,337,717 Non-interest bearing deposits held for sale 453,394 (453,394 ) — Other liabilities held for sale 31,403 (31,403 ) — Accrued interest payable and other liabilities 47,381 28,002 75,383 The following table summarizes the effects of the reclassification of BankMobile's operating results from discontinued operations to continuing operations for the year ended December 31, 2016: Year Ended December 31, 2016 As Previously Reported Effect of Reclassification From Discontinued Operations Year Ended December 31, 2016 After Reclassification (amounts in thousands) Interest income $ 322,539 $ — $ 322,539 Interest expense 73,023 19 73,042 Net interest income 249,516 (19 ) 249,497 Provision for loan losses 2,345 696 3,041 Non-interest income 23,165 33,205 56,370 Non-interest expenses 131,217 47,014 178,231 Income from continuing operations before income taxes 139,119 (14,524 ) 124,595 Provision for income taxes 51,412 (5,519 ) 45,893 Net income from continuing operations 87,707 (9,005 ) 78,702 Loss from discontinued operations before income taxes (14,524 ) 14,524 — Income tax benefit from discontinued operations (5,519 ) 5,519 — Net loss from discontinued operations (9,005 ) 9,005 — Net income 78,702 — 78,702 Preferred stock dividend 9,515 — 9,515 Net income available to common shareholders $ 69,187 $ — $ 69,187 The following table summarizes the effects of the reclassification of BankMobile's operating results from discontinued operations to continuing operations for the year ended December 31, 2015: Year Ended December 31, 2015 As Previously Reported Effect of Reclassification From Discontinued Operations Year Ended December 31, 2015 After Reclassification (amounts in thousands) Interest income $ 249,850 $ — $ 249,850 Interest expense 53,551 9 53,560 Net interest income 196,299 (9 ) 196,290 Provision for loan losses 20,566 — 20,566 Non-interest income 27,572 145 27,717 Non-interest expenses 107,568 7,378 114,946 Income from continuing operations before income taxes 95,737 (7,242 ) 88,495 Provision for income taxes 32,664 (2,752 ) 29,912 Net income from continuing operations 63,073 (4,490 ) 58,583 Loss from discontinued operations before income taxes (7,242 ) 7,242 — Income tax benefit from discontinued operations (2,752 ) 2,752 — Net loss from discontinued operations (4,490 ) 4,490 — Net income 58,583 — 58,583 Preferred stock dividend 2,493 — 2,493 Net income available to common shareholders $ 56,090 $ — $ 56,090 |
Significant Accounting Policies
Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION - As Restated Basis of Presentation The accounting and reporting policies of Customers Bancorp, Inc. and subsidiaries are in conformity with accounting principles generally accepted in the United States of America and predominant practices of the banking industry. The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, credit deterioration and expected cash flows of purchased-credit-impaired loans, valuation of deferred tax assets, other-than-temporary impairment losses on securities, fair values of financial instruments, fair value of stock option awards and annual goodwill and intangible asset impairment analysis. Restatement of Previously Issued Financial Statements In November 2018, Customers determined that the cash flow activities associated with its commercial mortgage warehouse lending activities should have been reported as investing activities in its consolidated statements of cash flows because the related loan balances should have been classified as held for investment (i.e., loans receivable). Customers changed its accounting policies such that commercial mortgage warehouse loans will be classified as held for investment and presented as "Loans receivable, mortgage warehouse, at fair value" on its consolidated balance sheets. The cash flow activities associated with these commercial mortgage warehouse lending activities will be reported as investing activities in the consolidated statements of cash flows. Accordingly, Customers has restated the consolidated balance sheets and statements of cash flows as of December 31, 2017 and 2016 and for the three year period ending December 31, 2017 herein. The following tables set forth the effects of the correction on the consolidated balance sheet as of December 31, 2017 and 2016, and the consolidated statements of cash flows for the years ended December 2017, 2016, and 2015. December 31, 2017 2016 Consolidated Balance Sheet As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated (amounts in thousands) Loans held for sale $ 1,939,485 $ (1,793,408 ) $ 146,077 $ 2,117,510 $ (2,116,815 ) $ 695 Loans receivable, mortgage warehouse, at fair value — 1,793,408 1,793,408 — 2,116,815 2,116,815 Total loans receivable, net of allowance for loan losses 6,730,243 1,793,408 8,523,651 6,117,322 2,116,815 8,234,137 For the Years Ended December 31, 2017 2016 2015 Consolidated Statements of Cash Flows As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated (amounts in thousands) Origination of loans held for sale $ (30,125,427 ) $ 30,084,255 $ (41,172 ) $ (36,130,924 ) $ 36,091,174 $ (39,750 ) $ (29,925,763 ) $ 29,886,506 $ (39,257 ) Proceeds from the sale of loans held for sale 30,448,318 (30,407,662 ) 40,656 35,772,081 (35,729,309 ) 42,772 29,504,104 (29,463,289 ) 40,815 Net Cash Provided by (Used in) Operating Activities 385,600 (323,407 ) 62,193 (270,462 ) 361,865 91,403 (356,648 ) 423,217 66,569 Origination of mortgage warehouse loans — (30,084,255 ) (30,084,255 ) — (36,091,174 ) (36,091,174 ) — (29,886,506 ) (29,886,506 ) Proceeds from repayments of mortgage warehouse loans — 30,407,662 30,407,662 — 35,729,309 35,729,309 — 29,463,289 29,463,289 Net Cash Used in Investing Activities (888,532 ) 323,407 (565,125 ) (599,669 ) (361,865 ) (961,534 ) (1,258,226 ) (423,217 ) (1,681,443 ) In addition to the restatement of Customers' consolidated balance sheets and statements of cash flows summarized above, the following notes to the consolidated financial statements have been restated to reflect the corrected classification of Customers' commercial mortgage warehouse lending activities: • NOTE 8 - LOANS HELD FOR SALE; • NOTE 9 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES; and • NOTE 20 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS. Reclassifications As described in NOTE 3 - SPIN-OFF AND MERGER, during third quarter 2017 Customers reclassified BankMobile, a segment which Customers previously intended to sell directly to a third party but decided to divest in a spin-off to its shareholders, was reclassified from held for sale to held and used because it no longer met the held-for-sale criteria. Certain prior period amounts and note disclosures (including NOTE 5, NOTE 9, NOTE 10, NOTE 11, NOTE 16, NOTE 20 and NOTE 23) have been reclassified to conform with the current period presentation. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the parent company and its wholly owned subsidiaries, including Customers Bank, CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd., as well as Customers Bank's wholly owned subsidiaries, CIC, Inc., BankMobile Technologies, Inc., Customers Commercial Finance, LLC and Devon Service PA LLC. All significant intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents and Statements of Cash Flows Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits with banks with a maturity date of three months or less and are recorded at cost. The carrying value of cash and cash equivalents is a reasonable estimate of its approximate fair value. Changes in the balances of cash and cash equivalents are reported on the consolidated statements of cash flows. Cash receipts from the repayment or sale of loans are classified within the statement of cash flows based on management's original intent upon origination of the loan, as prescribed by accounting guidance related to the statement of cash flows. Commercial mortgage warehouse loans are classified as held for investment and presented at "Loans receivable, mortgage warehouse, at fair value" on the consolidated balance sheets and the cash flow activities associated with these commercial mortgage warehouse lending activities are reported as investing activities on the consolidated statements of cash flows. Restrictions on Cash and Amounts due from Banks Customers Bank is required to maintain average balances at a certain level of cash and amounts on deposit with the Federal Reserve Bank. Customers Bank generally maintains balances in excess of the required levels at the Federal Reserve Bank. At December 31, 2017 and 2016 , these reserve balances were $164.7 million and $149.3 million , respectively. In connection with the acquisition of the Disbursement business from Higher One, as of December 31, 2017, Customers had $5 million in an escrow account restricted in use with a third party to be paid to Higher One upon the second anniversary of the transaction closing as described in NOTE 2 - ACQUISITION ACTIVITY. In connection with the spin-off and merger, Customers had $1.0 million in an escrow account with a third party that is reserved for payment to Flagship in the event the agreement is terminated for reasons described in the agreement. See NOTE 3 - SPIN-OFF AND MERGER for additional details related to this escrow account. Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accountings Standards Codification ("ASC") 805, Business Combinations . Under the acquisition method, identifiable assets acquired and liabilities assumed are measured at their fair values as of the date of acquisition and are recognized separately from goodwill. The results of operations of the acquired entity are included in the consolidated statement of income from the date of acquisition. Customers recognizes goodwill when the acquisition price exceeds the estimated fair value of the net assets acquired. Investment Securities Customers acquires securities, largely mortgage-backed securities, to effectively utilize cash and capital and to generate earnings. Security transactions are recorded as of the trade date. Securities are classified at the time of acquisition as available for sale, held to maturity or trading, and their classification determines the accounting as follows: Available for sale : Investment securities classified as available for sale are those debt and equity securities that Customers intends to hold for an indefinite period of time but not necessarily to maturity. Investment securities available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in accumulated other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings and recorded at the trade date. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Held to maturity : Investment securities classified as held to maturity are those debt securities that Customers has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premiums and accretion of discounts, computed by a method which approximates the interest method over the terms of the securities. There were no securities classified as held to maturity as of December 31, 2017 and 2016 . Trading: Investment securities classified as trading are those debt and equity securities that management intends to actively trade. These securities are carried at their current fair value, with changes in fair value reported in income. Customers does not actively trade securities. For available-for-sale and held-to-maturity securities, management periodically assesses whether the securities are other than temporarily impaired. Other-than-temporary impairment means that management believes a security’s decline in fair value below its amortized cost basis is due to factors that could include the issuer’s inability to pay interest or dividends, its potential for default and/or other factors. When a held-to-maturity or available-for-sale debt security is assessed for other-than-temporary impairment, management has to first consider (a) whether Customers intends to sell the security, and (b) whether it is more likely than not that Customers will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an other-than-temporary impairment loss is recognized in the consolidated statements of income equal to the full amount of the decline in fair value below the amortized cost basis. If neither of these circumstances applies to a security, but Customers does not expect to recover the entire amortized cost basis, an other-than-temporary impairment has occurred that must be separated into two categories for debt securities: (a) the amount related to a credit loss and (b) the amount related to other factors. In determining the amount of other-than-temporary impairment attributable to credit loss, management compares the present value of cash flows expected to be collected to the amortized cost basis of the security. The portion of the total other-than-temporary impairment attributed to a credit loss is recognized in earnings (as the difference between the fair value and the present value of the estimated cash flows expected to be collected), while the amount related to all other factors is recognized in accumulated other comprehensive income. The total other-than-temporary impairment loss is presented in the statement of income, less the portion recognized in accumulated other comprehensive income. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. For marketable equity securities, Customers considers the issuer’s financial condition, capital strength and near-term prospects to determine whether an impairment is temporary or other-than-temporary. Customers also considers the volatility of a security’s price in comparison to the market as a whole and any recoveries or declines in fair value subsequent to the balance sheet date. If management determines that the impairment is other-than-temporary, the entire amount of the impairment as of the balance sheet date is recognized in earnings even if the decision to sell the security has not been made. The fair value of the security becomes the new amortized cost basis of the investment and is not adjusted for subsequent recoveries in fair value. Beginning January 1, 2018, changes in the fair value of marketable equity securities classified as available for sale will be recorded in earnings in the period in which they occur and will no longer be deferred in accumulated other comprehensive income. Amounts previously recorded to accumulated other comprehensive income were reclassified to retained earnings on January 1, 2018. Loan Accounting Framework The accounting for a loan depends on management’s strategy for the loan and on whether the loan was credit impaired at the date of acquisition. The Bank accounts for loans based on the following categories: • Loans held for sale, • Loans at fair value, • Loans receivable and • Purchased loans. The discussion that follows describes the accounting for loans in these categories. Loans Held for Sale and Loans at Fair Value Loans originated or acquired by Customers with the intent to sell them in the secondary market are carried either at the lower of cost or fair value, determined in the aggregate, or at fair value, depending upon an election made at the time the loan is originated. These loans are generally sold on a non-recourse basis with servicing released. Gains and losses on the sale of loans accounted for at the lower of cost or fair value are recognized in earnings based on the difference between the proceeds received and the carrying amount of the loans, inclusive of deferred origination fees and costs, if any. As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or acquired with the intent to sell may subsequently be designated as held for sale. These loans are transferred to the held-for-sale portfolio at the lower of amortized cost or fair value. When the recorded investment of the loan exceeds its fair value at the date of transfer to the held-for-sale portfolio, the excess will be recognized as a charge against the allowance for loan losses to the extent the loan's reduction in fair value has already been provided for in the allowance for loan losses. Any subsequent lower of cost or fair value adjustments are recognized as a valuation allowance with charges recognized in non-interest income. Loans originated or acquired by Customers with the intent to sell them for which fair value accounting is elected are reported at fair value, with changes in fair value recognized in earnings in the period in which they occur. Upon sale, any difference between the proceeds received and the carrying amount of the loan is recognized in earnings. No fees or costs related to such loans are deferred, so they do not affect the gain or loss calculation at the time of sale. An allowance for loan losses is not maintained on loans designated as held for sale or reported at fair value. Loans Receivable - Mortgage Warehouse, at Fair Value Certain mortgage warehouse lending transactions subject to master repurchase agreements are designated as loans receivable, mortgage warehouse and reported at fair value based on an election made to account for the loans at fair value. Pursuant to these agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded loans and receives proceeds directly from third party investors when the loans are sold into the secondary market. Commercial warehouse mortgage loans are classified as held for investment and presented as "Loans receivable, mortgage warehouse, at fair value" on the consolidated balance sheets. An allowance for loan losses is not maintained on loans reported at fair value. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the level-yield method without anticipating prepayments. Customers is generally amortizing these amounts over the contractual life of the loans. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or when management has doubts about further collectibility of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is well secured. When a loan is placed on non-accrual status, unpaid accrued interest previously credited to income is reversed. Interest received on non-accrual loans is generally applied against principal until all principal has been recovered. Thereafter, payments are recognized as interest income until all unpaid amounts have been received. Generally, loans are restored to accrual status when the obligation is brought current and has performed in accordance with the contractual terms for a minimum of six months , and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. Purchased Loans Customers believes that the varying circumstances under which it purchases loans and the diverse credit quality of loans purchased should drive the decision as to whether loans in a portfolio should be deemed to be purchased credit-impaired loans. Therefore, loan purchases are evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans acquired that do not have evidence of credit deterioration at the purchase date are accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs, and loans acquired with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans that are purchased that do not have evidence of credit deterioration Purchased performing loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized or accreted as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected For these types of loan purchases, evidence of deteriorated credit quality may include past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. The fair value of loans with evidence of credit deterioration is recorded net of a nonaccretable difference and accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference that is not included in the carrying amount of acquired loans. Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities and other factors that are reflective of current market conditions. Subsequent decreases in expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows. Purchased credit-impaired ("PCI") loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have similar risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. On a quarterly basis, Customers re-estimates the total cash flows (both principal and interest) expected to be collected over the remaining life of each pool. These estimates incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that reflect the then-current market conditions. If the timing and/or amounts of expected cash flows on purchased credit-impaired loans are determined not to be reasonably estimable, no interest is accreted, and the loans are reported as non-accrual loans; however, when the timing and amounts of expected cash flows for purchased credit-impaired loans are reasonably estimable, interest is accreted, and the loans are reported as performing loans. Allowance for Loan Losses The allowance for loan losses is established as losses that are estimated to have occurred and are recognized through provisions for loan losses. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses is maintained at a level considered appropriate to absorb probable incurred loan losses inherent in the loan portfolio as of the reporting date. Customers segments its loan portfolio into groups of loans with similar risk characteristics for purposes of estimating the allowance for loan losses. Customers' loan groups include multi-family, commercial and industrial, owner and non-owner occupied commercial real estate, construction, residential real estate, manufactured housing, other consumer and PCI loans. Loans originated pursuant to the rules and regulations of the Small Business Administration ("SBA loans") are further segmented. Customers also further segments its residential real estate portfolio into two classes based upon certain risk characteristics: first-mortgage loans and home equity loans and lines of credit. The remaining loan groups are also considered classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Additionally, within each loan group the acquired loans that are accounted for under ASC 310-10 are further segmented. The total allowance for loan losses consists of an allowance for impaired loans, a general allowance for losses and may also include residual non-specific reserve amounts. The allowance for loan losses is maintained at a level considered adequate to provide for losses that are estimated to have been incurred. Management performs a quarterly assessment of the adequacy of the allowance for loan losses, which is based on Customers' past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, peer and industry data and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Customers' current methodology for determining the allowance for loan losses is based on historical loss rates, peer and industry data, current economic conditions, risk ratings, allowances on loans identified as impaired and other qualitative adjustments as considered appropriate. The impaired-loan component of the allowance for loan losses generally relates to loans for which it is probable that Customers will be unable to collect all amounts due according to the contractual terms of the loan agreements. Customers analyzes certain loans in its portfolio for impairment in accordance with ASC 310-10-35. Customers' impaired loans generally include loans that have been (i) placed on non-accrual, (ii) restructured in a troubled debt restructuring, regardless of their payment status and (iii) charged-off to their net realizable value. For such loans, an allowance is established when the (i) discounted cash flows, (ii) collateral value or (iii) the impaired loan estimated fair value is lower than the carrying value of the loan. The general component of the allowance for loan losses covers groups of loans by loan class, including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity loans, home equity lines of credit and other consumer loans. These pools of loans are evaluated for loss exposure based upon industry, peer or Customers' historical loss rates for each of these groups of loans. After determining the appropriate historical loss rate for each group of loans, management considers current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience. The overall effect of these factors is recorded as an adjustment that, as appropriate, increases or decreases the historical loss rate applied to the loan group. The qualitative factors that management generally considers include the following: • National, regional and local economic and business conditions, including review of changes in the unemployment rate; • Volume and severity of past-due loans, non-accrual loans and classified loans; • Lending policies and procedures, including underwriting standards and historically based loss/collection, charge-off and recovery practices; • Nature and volume of the portfolio; • Existence and effect of any credit concentrations and changes in the level of such concentrations; • Risk ratings; • Changes in the values of collateral for collateral dependent loans; • Changes in the quality of the loan review system; • Experience, ability and depth of lending management and staff; and • Other external factors, such as changes in the legal, regulatory or competitive environment. A residual reserve may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The residual reserve amount reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating credit losses in the portfolio. The discussion that follows describes Customers' underwriting policies for its primary lending activities and its credit monitoring and charge-off practices. Commercial and industrial loans are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay its obligation as agreed. Commercial and industrial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan facility. Accordingly, the repayment of a commercial and industrial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans rely on the value associated with the project upon completion. These cost and valuation amounts used are estimates and may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of the developed property. These loans are closely monitored by on-site inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest-rate sensitivity and governmental regulation of real property. Commercial real estate and multi-family loans are subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan, or the principal business conducted on the property securing the loan, to generate sufficient cash flows to service the debt. In addition, the underwriting considers the amount of the principal advanced relative to the property value. Commercial real estate and multi-family loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates commercial real estate and multi-family loans based on cash flow estimates, collateral valuation and risk-rating criteria. Customers also utilizes third-party experts to provide environmental and market valuations. Substantial effort is required to underwrite, monitor and evaluate commercial real estate and multi-family loans. Residential real estate loans are secured by one-to-four dwelling units. This group is further divided into first mortgage and home equity loans. First mortgages are originated at a loan to value ratio of 80% or less. Home equity loans have additional risks as a result of typically being in a second position or lower in the event collateral is liquidated. Manufactured housing loans are loans that are secured by the manufactured housing unit where the borrower may or may not own the underlying real estate and therefore have a higher risk than a residential real estate loan. Other consumer loans consist of loans to individuals originated through Customers' retail network and are typically secured by personal property or are unsecured. Consumer loans have a greater credit risk than residential loans because of the difference in the underlying collateral, if any. The application of various federal and state bankruptcy and insolvency laws may limit the amount that can be recovered on such loans. Delinquency status and other borrower characteristics are used to monitor loans and identify credit risks, and the general reserves are established based on the expected net charge-offs, adjusted for qualitative factors. Charge-offs on commercial and industrial, construction, multi-family and commercial real estate loans are recorded when management estimates that there are insufficient cash flows to repay the contractual loan obligation based upon financial information available and valuation of the underlying collateral. Shortfalls in the underlying collateral value for loans determined to be collateral dependent are charged-off immediately. Customers also takes into account the strength of any guarantees and the ability of the borrower to provide value related to those guarantees in determining the ultimate charge-off or allowance associated with an impaired loan. Accordingly, Customers may charge-off a loan to a value below the net appraised value if it believes that an expeditious liquidation is desirable under the c |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following are the components and results of the Bancorp’s earnings per share ("EPS") calculation for the periods presented. For the Years Ended December 31, 2017 2016 2015 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 64,378 $ 69,187 $ 56,090 Weighted-average number of common shares outstanding – basic 30,659,320 27,596,020 26,844,545 Share-based compensation plans 1,917,451 2,221,517 1,516,297 Warrants 19,906 196,113 324,097 Weighted-average number of common shares – diluted 32,596,677 30,013,650 28,684,939 Basic earnings per common share $ 2.10 $ 2.51 $ 2.09 Diluted earnings per common share 1.97 2.31 1.96 The following is a summary of securities that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS because to do so would have been anti-dilutive for the periods presented. For the Years Ended December 31, 2017 2016 2015 Anti-dilutive securities: Share-based compensation plans 1,059,225 894,720 606,095 Warrants — 52,242 52,242 Total anti-dilutive securities 1,059,225 946,962 658,337 |
Changes In Accumulated Other Co
Changes In Accumulated Other Comprehensive Income (Loss) By Component | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2017 and 2016 . All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. Available-for-Sale Securities Total Unrealized Unrealized Foreign Unrealized Gains (Losses) Gains Currency Gains on Cash Flow (amounts in thousands) (Losses) (1) Items (Losses) Hedges Total Balance, December 31, 20 15 $ (4,602 ) $ (584 ) $ (5,186 ) $ (2,798 ) $ (7,984 ) Current period: Other comprehensive loss before reclassifications (1,872 ) (146 ) (2,018 ) (629 ) (2,647 ) Amounts reclassified from accumulated other comprehensive income to net income (1) 3,793 730 4,523 1,216 5,739 Net current-period other comprehensive income 1,921 584 2,505 587 3,092 Balance, December 31, 2016 (2,681 ) — (2,681 ) (2,211 ) (4,892 ) Current period: Other comprehensive income before reclassifications 7,800 88 7,888 406 8,294 Amounts reclassified from accumulated other comprehensive income to net income (1) (5,368 ) — (5,368 ) 1,607 (3,761 ) Net current-period other comprehensive income 2,432 88 2,520 2,013 4,533 Balance, December 31, 2017 $ (249 ) $ 88 $ (161 ) $ (198 ) $ (359 ) (1) Reclassification amounts for available-for-sale securities are reported as gain or loss on sale of investment securities or impairment loss on investment securities on the consolidated statements of income. During the years ended December 31, 2017 and 2016, reclassification amounts of $8.8 million ( $5.4 million net of taxes) and $25 thousand ( $16 thousand net of taxes), respectively, were reported as gain on sale of investment securities on the consolidated statements of income. During the year ended December 31, 2016, reclassification amounts of $7.3 million ( $4.5 million net of taxes) were reported as impairment loss on investment securities on the consolidated statements of income. Impairment losses recorded during the year ended December 31, 2017, were not previously deferred in accumulated comprehensive income (loss) because Customers decided to sell the securities as of December 31, 2016. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of December 31, 2017 and 2016 , are summarized as follows: 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 $ 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. December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale Agency-guaranteed residential mortgage-backed securities $ 233,002 $ 918 $ (2,657 ) $ 231,263 Agency-guaranteed commercial real estate mortgage-backed securities 204,689 — (2,872 ) 201,817 Corporate notes (1) 44,932 401 (185 ) 45,148 Equity securities (2) 15,246 — — 15,246 Total $ 497,869 $ 1,319 $ (5,714 ) $ 493,474 (1) Includes subordinated debt issued by other bank holding companies. (2) Includes equity securities issued by a foreign entity. The following table shows proceeds from the sale of available-for-sale investment securities, gross gains and gross losses on those sales of securities: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Proceeds from sale of available-for-sale investment securities $ 769,203 $ 2,852 $ 806 Gross gains $ 8,808 $ 26 $ — Gross losses (8 ) (1 ) (85 ) Net gains (losses) $ 8,800 $ 25 $ (85 ) These gains and losses were determined using the specific identification method and were included in non-interest income. 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 are, therefore, classified separately with no specific maturity date: December 31, 2017 Available for Sale 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 42,959 44,005 Due after ten years 2,000 2,084 Agency-guaranteed residential mortgage-backed securities 186,221 183,458 Agency-guaranteed commercial mortgage-backed securities 238,809 238,472 Total debt securities $ 469,989 $ 468,019 Gross unrealized losses and fair value of Customers' investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: 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 Agency-guaranteed residential mortgage-backed securities $ 104,861 $ (656 ) $ 66,579 $ (2,143 ) $ 171,440 $ (2,799 ) Agency-guaranteed commercial 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 ) December 31, 2016 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 Agency-guaranteed residential mortgage-backed securities $ 87,433 $ (1,330 ) $ 30,592 $ (1,327 ) $ 118,025 $ (2,657 ) Agency-guaranteed commercial mortgage-backed securities 201,817 (2,872 ) — — 201,817 (2,872 ) Corporate notes (1) 9,747 (185 ) — — 9,747 (185 ) Total $ 298,997 $ (4,387 ) $ 30,592 $ (1,327 ) $ 329,589 $ (5,714 ) (1) Includes subordinated debt issued by other bank holding companies. At December 31, 2017 , there were twenty available-for-sale investment securities in the less-than-twelve-month category and sixteen available-for-sale 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. All amounts 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 year ended December 31, 2017, Customers recorded other-than-temporary impairment losses of $12.9 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 September 30, 2017, because Customers no longer has the intent to hold these securities until a recovery in fair value. The fair value of the Religare equity securities at September 30, 2017, of $2.3 million became the new cost basis of the securities. 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. At December 31, 2017 and 2016 , Customers Bank had pledged investment securities aggregating $16.9 million and $231.3 million 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 | 12 Months Ended |
Dec. 31, 2017 | |
Receivables Held-for-sale [Abstract] | |
Loans Held for Sale | LOANS HELD FOR SALE - As Restated The composition of loans held for sale as of December 31, 2017 and 2016 , was as follows: December 31, 2017 2016 (amounts in thousands) (As Restated) (As Restated) Commercial loans: Multi-family loans, at lower of cost or fair value $ 144,191 $ — Total commercial loans held for sale 144,191 — Consumer loans: Residential mortgage loans, at fair value 1,886 695 Loans held for sale $ 146,077 $ 695 Effective June 30, 2017, Customers Bank transferred $150.6 million of multi-family loans from loans receivable (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 approximates their fair value. Accordingly, a lower of cost or fair value adjustment was not recorded as of December 31, 2017. See NOTE 4 – SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for more information on the reclassification of loans previously reported as held for sale. Effective December 31, 2016, Customers Bank transferred $25.1 million of multi-family loans from held for sale to loans receivable (held for investment) because the Bank no longer had the intent to sell these loans. Customers Bank transferred these loans at their carrying value, which was lower than the estimated fair value at the time of transfer. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - As Restated The following table presents loans receivable as of December 31, 2017 and 2016 : December 31, 2017 2016 (amounts in thousands) (As Restated) (As Restated) Loans receivable, mortgage warehouse, at fair value $ 1,793,408 $ 2,116,815 Loans receivable: Commercial: Multi-family 3,502,381 3,214,999 Commercial and industrial (includes owner occupied commercial real estate) 1,633,818 1,382,343 Commercial real estate non-owner occupied 1,218,719 1,193,715 Construction 85,393 64,789 Total commercial loans receivable 6,440,311 5,855,846 Consumer: Residential real estate 234,090 193,502 Manufactured housing 90,227 101,730 Other 3,547 3,483 Total consumer loans receivable 327,864 298,715 Loans receivable 6,768,175 6,154,561 Deferred costs and unamortized premiums, net 83 76 Allowance for loan losses (38,015 ) (37,315 ) Total loans receivable, net of allowance for loan losses $ 8,523,651 $ 8,234,137 Included in December 31, 2016 loans receivable balances above are $11.5 million of commercial and industrial loans and $0.7 million of other consumer loans that were previously classified as held for sale at December 31, 2016 and have been reclassified to held and used to conform with the current period presentation. Customers' total loans receivable portfolio includes loans receivable which are reported at fair value based on an election made to account for these loans at fair value and loans receivable which are predominately reported at their outstanding unpaid principal balance, net of charge-offs and deferred costs and fees and unamortized premiums and discounts and are evaluated for impairment. Loans receivable, mortgage warehouse, at fair value: Mortgage warehouse loans consist of commercial loans to mortgage companies. These mortgage warehouse lending transactions are subject to master repurchase agreements. As a result of the contractual provisions, for accounting purposes control of the underlying mortgage loan has not transferred and the rewards and risks of the mortgage loans are not assumed by Customers. The commercial mortgage warehouse loans receivable are designated as loans held for investment 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 mortgage loans and receives proceeds directly from third party investors when the underlying mortgage loans are sold into the secondary market. 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 22 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. At December, 2017 and 2016, all of Customers' commercial mortgage warehouse loans were current in terms of payment. Because these loans are reported at their fair value, they do not have an allowance for loan loss and are therefore excluded from allowance for loan losses related disclosures. Loans receivable: The following tables summarize loans receivable by loan type and performance status as of December 31, 2017 and 2016 : December 31, 2017 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (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 December 31, 2016 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ 12,573 $ — $ 12,573 $ — $ 3,200,322 $ 2,104 $ 3,214,999 Commercial and industrial 350 — 350 8,443 978,881 1,037 988,711 Commercial real estate - owner occupied 137 — 137 2,039 379,227 12,229 393,632 Commercial real estate - non-owner occupied — — — 2,057 1,185,331 6,327 1,193,715 Construction — — — — 64,789 — 64,789 Residential real estate 4,417 — 4,417 2,959 178,559 7,567 193,502 Manufactured housing (5) 3,761 2,813 6,574 2,236 89,850 3,070 101,730 Other consumer 12 — 12 58 3,177 236 3,483 Total $ 21,250 $ 2,813 $ 24,063 $ 17,792 $ 6,080,136 $ 32,570 $ 6,154,561 (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 Customers 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 unaccreted discounts and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at Customers 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 December 31, 2017 and 2016, Customers had $0.3 million and $0.5 million , respectively, of residential real estate recorded in Other real estate owned in the consolidated balance sheets. As of December 31, 2017 and 2016, the Bank had initiated foreclosure proceedings on $1.6 million and $0.4 million , respectively, in loans secured by residential real estate. Allowance for Loan Losses The changes in the allowance for loan losses for the years ended December 31, 2017 and 2016 , and the loans and allowance for loan losses by loan type based on impairment-evaluation method are presented in the tables below. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans for periods prior to the termination of the FDIC loss sharing arrangements. Twelve Months Ended December 31, 2017 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Allowance for loan losses Ending Balance, December 31, 2016 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Charge-offs — (4,157 ) (731 ) (486 ) — (415 ) — (1,338 ) (7,127 ) Recoveries — 676 9 — 164 72 — 138 1,059 Provision for loan losses 566 3,349 1,771 29 (25 ) (70 ) (106 ) 1,254 6,768 Ending Balance, December 31, 2017 $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 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 Twelve Months Ended December 31, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Allowance for loan losses Ending Balance, December 31, 2015 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Charge-offs — (2,920 ) (27 ) (140 ) — (493 ) — (825 ) (4,405 ) Recoveries — 381 — 130 1,854 367 — 11 2,743 Provision for loan losses (414 ) 4,725 862 (516 ) (2,088 ) 170 (208 ) 799 3,330 Ending Balance, December 31, 2016 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Loans Individually evaluated for impairment $ — $ 8,516 $ 2,050 $ 2,151 $ — $ 6,972 $ 9,665 $ 57 $ 29,411 Collectively evaluated for impairment 3,212,895 979,158 379,353 1,185,237 64,789 178,963 88,995 3,190 6,092,580 Loans acquired with credit deterioration 2,104 1,037 12,229 6,327 — 7,567 3,070 236 32,570 $ 3,214,999 $ 988,711 $ 393,632 $ 1,193,715 $ 64,789 $ 193,502 $ 101,730 $ 3,483 $ 6,154,561 Allowance for loan losses Individually evaluated for impairment $ — $ 1,024 $ 287 $ 14 $ — $ 35 $ — $ — $ 1,360 Collectively evaluated for impairment 11,602 9,686 1,896 4,626 772 2,414 88 60 31,144 Loans acquired with credit deterioration — 340 — 3,254 68 893 198 58 4,811 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Certain manufactured housing loans were purchased in August 2010. A portion of the purchase price may be used to reimburse Customers under the specified terms in the purchase agreement for defaults of the underlying borrower and other specified items. At December 31, 2017 and 2016, funds available for reimbursement, if necessary, were $0.6 million and $1.0 million , respectively. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb probable losses within the manufactured housing portfolio. 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 are individually evaluated for impairment as of December 31, 2017 and 2016, and the average recorded investment and interest income recognized for the years ended December 31, 2017, 2016 and 2015. Purchased credit-impaired loans are considered to be performing and are not included in the tables below. December 31, 2017 Twelve Months Ended December 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 $ — $ 8,865 $ 214 Commercial real estate - owner occupied 806 806 — 1,439 70 Commercial real estate - non-owner occupied 160 272 — 898 2 Other consumer 30 30 — 51 — Residential real estate 3,628 3,801 — 4,617 24 Manufactured housing 9,865 9,865 — 10,003 558 With an allowance recorded Commercial and industrial 8,323 8,506 650 5,984 230 Commercial real estate - owner occupied 642 642 642 882 — Residential real estate 5,619 5,656 155 3,307 187 Manufactured housing 224 224 4 131 8 Total $ 38,435 $ 39,089 $ 1,451 $ 36,177 $ 1,293 December 31, 2016 Twelve Months Ended December 31, 2016 Twelve Months Ended December 31, 2015 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (amounts in thousands) With no recorded allowance Multi-family $ — $ — $ — $ 964 $ 53 $ 267 $ 24 Commercial and industrial 2,396 3,430 — 15,424 804 8,543 891 Commercial real estate - owner occupied 1,210 1,210 — 7,963 426 6,526 454 Commercial real estate - non-owner occupied 2,002 2,114 5,265 155 6,605 648 Construction — — — — — 749 — Other consumer 57 57 — 47 — 42 1 Residential real estate 6,682 6,749 — 4,567 120 2,254 86 Manufactured housing 9,665 9,665 — 8,961 465 5,433 368 With an allowance recorded Multi-family — — — 232 — — — Commercial and industrial 6,120 6,120 1,024 7,028 436 9,331 191 Commercial real estate - owner occupied 840 840 287 173 — 15 1 Commercial real estate - non-owner occupied 149 204 14 380 — 817 12 Other consumer — — — 29 — 83 — Residential real estate 290 303 35 395 — 426 2 Total $ 29,411 $ 30,692 $ 1,360 $ 51,428 $ 2,459 $ 41,091 $ 2,678 Troubled Debt Restructurings At December 31, 2017 , 2016 and 2015 , there were $20.4 million , $16.4 million and $11.4 million , respectively, in loans categorized 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 accruing status if the borrower satisfies a minimum six -month performance requirement; however, the TDR will remain classified as impaired. Generally, the Customers requires sustained performance for nine months before returning a TDR to accruing status. Modifications 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 December 31, 2017, 2016, and 2015. Nonaccrual TDRs are included in the reported amount of total non-accrual loans. December 31, 2017 2016 2015 Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total (amounts in thousands) Commercial and industrial $ 63 $ 5,939 $ 6,002 $ 73 $ 146 $ 219 $ 27 $ 518 $ 545 Commercial real estate owner occupied — — — 12 — 12 — — — Commercial real estate non-owner occupied — — — — 1,945 1,945 — 204 204 Manufactured housing 8,130 1,766 9,896 7,429 2,072 9,501 5,911 2,389 8,300 Residential real estate 3,828 703 4,531 4,012 707 4,719 2,332 61 2,393 Total TDRs $ 12,021 $ 8,408 $ 20,429 $ 11,526 $ 4,870 $ 16,396 $ 8,270 $ 3,172 $ 11,442 The following table presents loans modified in a troubled debt restructuring by type of concession for the years ended December 31, 2017 , 2016 and 2015. There were no modifications that involved forgiveness of debt. For the Years Ended December 31, 2017 2016 2015 Number Recorded Number Recorded Number Recorded (dollars in thousands) Extensions of maturity 5 $ 6,497 3 $ 1,995 1 $ 183 Interest-rate reductions 35 1,574 61 4,621 161 7,274 Total 40 $ 8,071 64 $ 6,616 162 $ 7,457 The following table provides, by loan type, the number of loans modified in troubled debt restructurings and the related recorded investment for the years ended December 31, 2017, 2016 and 2015. For the Years Ended December 31, 2017 2016 2015 Number of Loans Recorded Investment Number of Loans Recorded Investment Number Recorded (dollars in thousands) Commercial and industrial 4 $ 6,437 1 $ 76 3 $ 791 Commercial real estate non-owner occupied — — 1 1,844 1 211 Manufactured housing 36 1,634 58 2,286 156 6,251 Residential real estate — — 4 2,410 2 204 Total loans 40 $ 8,071 64 $ 6,616 162 $ 7,457 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. There were no commitments to lend additional funds to debtors whose terms had been modified in TDRs at December 31, 2016 and 2015, respectively. As of December 31, 2017 , five manufactured housing loans totaling $0.2 million that were modified in troubled debt restructurings within the past twelve months defaulted on payments. As of December 31, 2016 , eight manufactured housing loans totaling $0.2 million , one commercial real estate non-owner occupied loan of $1.8 million and one residential real estate loan of $0.1 million that had been modified in troubled debt restructurings within the past twelve months defaulted on payments. As of December 31, 2015, eleven manufactured housing loans totaling $0.3 million that had been modified in troubled debt restructurings within the past 12 months defaulted on payments. Loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those that have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for loan losses. For the year ended December 31, 2017, there was one allowance recorded as a result of TDR modifications totaling $1 thousand for one manufactured housing loan. There were no allowances recorded as a result of TDR modifications during 2016. There were three allowances recorded as a result of TDR modifications during 2015 totaling $0.2 million for two commercial and industrial loans, and $0.1 million for one commercial real estate non-owner occupied loan. Purchased Credit-Impaired Loans The changes in accretable yield related to purchased credit-impaired loans for the years ended December 31, 2017, 2016 and 2015, were as follows: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Accretable yield balance as of December 31, $ 10,202 $ 12,947 $ 17,606 Accretion to interest income (1,673 ) (3,760 ) (2,299 ) Reclassification from nonaccretable difference and disposals, net (704 ) 1,015 (2,360 ) Accretable yield balance as of December 31, $ 7,825 $ 10,202 $ 12,947 Allowance for Loan Losses and the FDIC Loss Sharing Receivable and Clawback Liability In 2010, Customers acquired certain loans pursuant to FDIC-assisted transactions in which losses from resolution of the nonperforming loans were eligible for partial reimbursement by the FDIC ("covered loans"). Subsequent to the purchase date, the expected cash flows on the covered loans were subject to evaluation. Decreases in the present value of expected cash flows on the covered loans were recognized by increasing the allowance for loan losses with a related charge to the provision for loan losses. At the same time, the FDIC loss sharing receivable balance was increased reflecting an estimated future collection from the FDIC, which was recorded as a reduction to the provision for loan losses. If the expected cash flows on the covered loans increased such that a previously recorded impairment could be reversed, Customers recorded a reduction in the allowance for loan losses (with a related credit to the provision for loan losses) accompanied by a reduction in the FDIC loss sharing receivable balance (with a related charge to the provision for loan losses). Increases in expected cash flows on covered loans and decreases in expected cash flows from the FDIC loss sharing receivable, when there were no previously recorded impairments, were considered together and recognized over the remaining life of the loans as interest income. Decreases in the valuations of other real estate owned covered by the loss sharing agreements were recorded net of the estimated FDIC receivable as an increase to other real estate owned expense (a component of non-interest expense). As part of the FDIC loss sharing agreements, Customers also assumed a potential liability to be paid within 45 days subsequent to the maturity or termination of the loss sharing agreements that was contingent upon actual losses incurred over the life of the agreements relative to the expected losses and the consideration paid upon acquisition of the failed institutions (the "Clawback liability"). Due to cash receipts on the covered assets in excess of the original expectations of the FDIC, Customers anticipated that it would be required to pay an amount to the FDIC at the end of the loss sharing agreements. Customers presented the FDIC Loss Sharing Receivable, net of the Clawback liability on the consolidated balance sheets. In the event the Clawback liability exceeded the FDIC Loss Sharing Receivable balance, the net liability amount was presented in "Accrued interest payable and other liabilities" on the consolidated balance sheets. On July 11, 2016, Customers entered into an agreement to terminate all existing rights and obligations pursuant to the loss sharing agreements with the FDIC. In connection with the termination agreement, Customers paid the FDIC $1.4 million as final payment under these agreements. The negotiated settlement amount was based on net losses incurred on the covered assets through September 30, 2015, adjusted for cash payments to and cash receipts from the FDIC as part of the December 31, 2015 and March 31, 2016 certifications. Consequently, loans and other real estate owned previously reported as covered assets pursuant to the loss sharing agreements were no longer presented as covered assets as of June 30, 2016. The following table presents changes in the allowance for loans losses and the FDIC loss sharing receivable, including the effect of the estimated Clawback liability for the years ended December 31, 2017 , 2016 and 2015 . Allowance for Loan Losses For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Ending balance as of December 31, $ 37,315 $ 35,647 $ 30,932 Provision for loan losses (1) 6,768 3,330 16,694 Charge-offs (7,127 ) (4,405 ) (13,412 ) Recoveries 1,059 2,743 1,433 Ending balance as of December 31, $ 38,015 $ 37,315 $ 35,647 FDIC Loss Sharing Receivable For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Ending balance as of December 31, $ — $ (2,083 ) $ 2,320 Increased (decreased) estimated cash flows (2) — 289 (3,872 ) Increased estimated cash flows from covered OREO (a) — — 3,138 Other activity, net (b) — (255 ) 248 Cash payments to (receipts from) the FDIC — 2,049 (3,917 ) Ending balance as of December 31, $ — $ — $ (2,083 ) (1) Provision for loan losses $ 6,768 $ 3,330 $ 16,694 (2) Effect attributable to FDIC loss sharing agreements — (289 ) 3,872 Net amount reported as provision for loan losses $ 6,768 $ 3,041 $ 20,566 (a) Recorded as a reduction to Other real estate owned expense (a component of non-interest expense). (b) Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualified for reimbursement under the loss sharing agreements. Credit Quality Indicators The allowance for loan losses represents management's estimate of probable losses in Customers' loans receivable portfolio, excluding commercial mortgage warehouse loans reported at fair value because of a fair value option election. 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, Customers 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 that are consistent with or better than industry peers, operations in industries with little risk, movement in diversified markets and experience and competency 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 classified 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 Customers 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 Customers 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 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 table presents the credit ratings as of December 31, 2017 and 2016 , for the loans receivable portfolio. December 31, 2017 Multi-family Commercial Commercial Commercial Construction Residential Manufactured Other Consumer Total (3) (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 December 31, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (3) (amounts in thousands) Pass/Satisfactory $ 3,198,290 $ 954,846 $ 375,919 $ 1,175,850 $ 50,291 $ — $ — $ — $ 5,755,196 Special Mention — 19,552 12,065 10,824 14,498 — — — 56,939 Substandard 16,709 14,313 5,648 7,041 — — — — 43,711 Performing (1) — — — — — 189,919 92,920 3,413 286,252 Non-performing (2) — — — — — 3,583 8,810 70 12,463 Total $ 3,214,999 $ 988,711 $ 393,632 $ 1,193,715 $ 64,789 $ 193,502 $ 101,730 $ 3,483 $ 6,154,561 (1) Includes residential real estate, manufactured housing, and other consumer loans not subject to risk ratings. (2) Includes residential real estate, manufactured housing, and other consumer loans that are past due and still accruing interes |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Bank Premises and Equipment | BANK PREMISES AND EQUIPMENT The components of bank premises and equipment as of December 31, 2017 and 2016 , were as follows: December 31, Expected Useful Life 2017 2016 (amounts in thousands) Leasehold improvements 3 to 25 years $ 14,028 $ 13,690 Furniture, fixtures and equipment 5 to 10 years 6,447 6,138 IT equipment 3 to 5 years 8,002 7,106 Automobiles 3 to 5 years 506 506 28,983 27,440 Accumulated depreciation and amortization (17,028 ) (14,671 ) Total $ 11,955 $ 12,769 Depreciation expense and amortization of leasehold improvements, which are included on the consolidated statements of income in occupancy expenses, were $2.8 million , $2.5 million and $2.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Future minimum rental commitments pursuant to non-cancelable leases as of December 31, 2017 , were as follows: December 31, 2017 (amounts in thousands) 2018 $ 5,499 2019 4,837 2020 4,192 2021 3,609 2022 2,989 Thereafter 6,431 Total minimum payments $ 27,557 Rent expense was approximately $5.2 million , $4.7 million and $3.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. A majority of the leases provide for the payment of taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Many of the leases contain extension provisions and escalation clauses. These leases are generally renewable and may, in certain cases, contain renewal provisions and options to expand and contract space and terminate the leases at predetermined contractual dates. In addition, escalation clauses may exist, which are tied to a predetermined rate or may change based on a specified percentage increase or the Consumer Price Index. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS The components of deposits at December 31, 2017 and 2016 , were as follows: December 31, 2017 2016 (amounts in thousands) Demand, non-interest bearing $ 1,052,115 $ 966,058 Demand, interest bearing 523,848 339,398 Savings, including money market deposit accounts 3,318,486 3,166,557 Time, $100,000 and over 1,284,855 2,106,905 Time, other 620,838 724,857 Total deposits $ 6,800,142 $ 7,303,775 Included in December 31, 2016 deposits balances above are $453.4 million of demand, non-interest bearing deposits and $3.4 million of savings deposits that were previously classified as held for sale at December 31, 2016 and have been reclassified to held and used to conform with the current period presentation. The scheduled maturities for time deposits at December 31, 2017 , were as follows: December 31, 2017 (amounts in thousands) 2018 $ 1,453,519 2019 279,490 2020 61,133 2021 89,939 2022 21,503 Thereafter 109 Total time deposits $ 1,905,693 Time deposits greater than $250,000 totaled $0.8 billion and $1.2 billion at December 31, 2017 and 2016 , respectively. Included in the savings balances above were $654.8 million and $972.2 million of brokered money market deposits at December 31, 2017 and 2016 , respectively. Also included in time, other balances above were $504.3 million and $721.9 million of brokered time deposits, respectively, at December 31, 2017 and 2016 . Demand deposit overdrafts reclassified as loans were $2.0 million and $12.3 million at December 31, 2017 and 2016, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Short-term debt Short-term debt at December 31, 2017 and 2016 , was as follows: December 31, 2017 2016 Amount Rate Amount Rate (amounts in thousands) FHLB advances $ 1,611,860 1.47 % $ 688,800 0.85 % Federal funds purchased 155,000 1.50 83,000 0.74 Total short-term debt $ 1,766,860 $ 771,800 The following is a summary of additional information relating to Customers' short-term debt: December 31, 2017 2016 2015 (amounts in thousands) FHLB advances Maximum outstanding at any month end $ 2,283,250 $ 1,697,800 $ 1,365,300 Average balance during the year 1,415,755 965,293 844,835 Weighted-average interest rate during the year 1.44 % 0.95 % 0.60 % Federal funds purchased Maximum outstanding at any month end 238,000 137,000 85,000 Average balance during the year 163,466 84,514 41,397 Weighted-average interest rate during the year 1.19 % 0.58 % 0.35 % At December 31, 2017 and 2016 , the Bank had aggregate availability under federal funds lines totaling $310.0 million and $237.0 million , respectively. Long-term debt FHLB advances At December 31, 2016, Customers had $180.0 million of long-term FHLB advances at an average rate of 1.32% that mature in 2018, of which $170.0 million are fixed rate. Customers had a total maximum borrowing capacity with the Federal Home Loan Bank of $4.3 billion and with the Federal Reserve Bank of Philadelphia of $142.5 million at December 31, 2017 . Customers had a total borrowing capacity with the Federal Home Loan Bank of $4.1 billion and with the Federal Reserve Bank of Philadelphia of $158.6 million at December 31, 2016 . Amounts can be borrowed as short-term or long-term. As of December 31, 2017 and 2016, advances under these arrangements were secured by certain assets, which included qualifying loans of Customers Bank of $5.5 billion and $4.8 billion , respectively. Senior notes In June 2017, Customers Bancorp issued $100 million of senior notes at 99.775% of face value. The price to purchasers represents a yield-to-maturity of 4.0% on the fixed coupon rate of 3.95% . The senior notes mature in June 2022. The net proceeds to Customers after deducting the underwriting discount and offering expenses were $98.6 million . The net proceeds were contributed to Customers Bank for purposes of its working capital needs and the funding of its organic growth. On June 26, 2014, the Bancorp closed a private placement transaction in which it issued $25.0 million of 4.625% senior notes that will mature in June 2019. Interest is paid semi-annually in arrears in June and December. In July and August 2013, the Bancorp issued $63.3 million in aggregate principal amount of senior notes that will mature in July 2018. The notes bear interest at 6.375% per year which is payable on March 15, June 15, September 15 and December 15. The notes are unsecured obligations of the Bancorp and rank equally with all of its secured and unsecured senior indebtedness. Subordinated debt On June 26, 2014, the Bank closed a private-placement transaction in which it issued $110.0 million of fixed-to-floating rate subordinated notes due in 2029. The subordinated notes bear interest at an annual fixed rate of 6.125% until June 26, 2024, and interest is paid semiannually. From June 26, 2024, the subordinated notes will bear an annual interest rate equal to three-month LIBOR plus 344.3 basis points until maturity on June 26, 2029. The Bank has the ability to call the subordinated notes, in whole or in part, at a redemption price equal to 100% of the principal balance at certain times on or after June 26, 2024. The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Common Stock During 2017 , Customers Bancorp did not issue any shares of its common stock pursuant to public offerings. During 2016, Customers Bancorp issued shares of its common stock pursuant to the following public offerings: On November 9, 2016, Customers Bancorp issued 2,415,000 shares of common stock at a price to the public of $25.00 per share as part of an underwritten public offering. Customers received proceeds of $58.3 million from the offering, after deducting offering costs. On August 11, 2016, Customers Bancorp entered into an At Market Issuance Sales Agreement ("the Sales Agreement") with FBR Capital Markets & Co., Keefe, Bruyette & Woods, Inc. and Maxim Group LLC. Customers Bancorp has authorized the sale, at its discretion, of shares of its common stock, in an aggregate offering amount up to $50 million under the Sales Agreement. Customers issued 219,386 shares in connection with this Sales Agreement during 2016 receiving proceeds of $5.5 million , net of offering costs. The net proceeds from the common stock offerings was used for general corporate purposes, which included working capital and the funding of organic growth at Customers Bank. In November 2013, Customers Bancorp announced that its Board of Directors had authorized a stock repurchase plan in which it could acquire up to 5% of its current outstanding shares at prices not to exceed a 20% premium over the current book value. The repurchase program may be suspended, modified or discontinued at any time, and the Bancorp has no obligation to repurchase any amount of its common stock under the program. There was no stock repurchased during 2017, 2016 or 2015. At December 31, 2017 , there were 35,187 warrants outstanding to purchase shares of Customers Bancorp’s common stock at a price of $21.38 per share. At December 31, 2016 , there were warrants outstanding to purchase 184,706 shares of Customers Bancorp’s common stock. The purchase prices at December 31, 2016 , ranged from $9.55 per share to $73.01 per share, with warrants at the latter purchase price having expired on December 31, 2017 . Preferred Stock Customers Bancorp currently has four series of preferred stock outstanding. During 2017, Customers Bancorp did not issue any preferred stock. Preferred stock issued during 2016 included the following: On September 16, 2016, Customers Bancorp issued 3,400,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, (the “Series F Preferred Stock”) par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series F Preferred Stock accrue and are payable quarterly in arrears, at a fixed rate per annum equal to 6.00% from the original issue date to, but excluding, December 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 4.762% per annum. Customers received proceeds of $82.2 million from the offering, after deducting offering costs. On April 28, 2016, Customers Bancorp issued 2,300,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, (the “Series E Preferred Stock”) par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series E Preferred Stock accrue and are payable quarterly in arrears, at a fixed rate per annum equal to 6.45% from the original issue date to, but excluding, June 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.14% per annum. Customers received proceeds of $55.6 million from the offering, after deducting offering costs. On January 29, 2016, Customers Bancorp issued 1,000,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, (the "Series D Preferred Stock") par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series D Preferred Stock accrue and are payable quarterly in arrears, at a fixed rate per annum equal to 6.50% from the original issue date to, but excluding, March 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.09% per annum. Customers received proceeds of $24.1 million from the offering, after deducting offering costs. Preferred stock issued during 2015 included the following: On May 18, 2015, Customers Bancorp issued 2,300,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, (the "Series C Preferred Stock") par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series C Preferred Stock accrue and are payable quarterly in arrears, at a fixed rate per annum equal to 7.00% from the original issue date to, but excluding, June 15, 2020, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.30% per annum. Customers received proceeds of $55.6 million from the offering, after deducting offering costs. The net proceeds from the preferred stock offerings were used for general corporate purposes, which included working capital and the funding of organic growth at Customers Bank. Dividends on the Series C, Series D, Series E and Series F Preferred Stock are not cumulative. If Customers Bancorp's board of directors or a duly authorized committee of the board does not declare a dividend on the Series C, Series D, Series E and Series F Preferred Stock in respect of a dividend period, then no dividend shall be deemed to have accrued for such dividend period, be payable on the applicable dividend payment date, or be cumulative, and Customers Bancorp will have no obligation to pay any dividend for that dividend period, whether or not the board of directors or a duly authorized committee of the board declares a dividend on the Series C, Series D, Series E, and Series F Preferred Stock for any future dividend period. The Series C, Series D, Series E and Series F Preferred Stock have no stated maturity, are not subject to any mandatory redemption, sinking fund or other similar provisions and will remain outstanding unless redeemed at Customers Bancorp's option. Customers Bancorp may redeem the Series C, Series D, Series E and Series F Preferred Stock at its option, at a redemption price equal to $25.00 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), (i) in whole or in part, from time to time, on any dividend payment date on or after June 15, 2020, for the Series C Preferred Stock, March 15, 2021, for the Series D Preferred Stock, June 15, 2021, for the Series E Preferred Stock and December 15, 2021, for the Series F Preferred Stock and or (ii) in whole but not in part, within 90 days following the occurrence of a regulatory capital treatment event. Any redemption of the Series C, Series D, Series E and Series F Preferred Stock is subject to prior approval of the Board of Governors of the Federal Reserve System. The Series C, Series D, Series E and Series F Preferred Stock qualify as Tier 1 capital under regulatory capital guidelines. Except in limited circumstances, the Series C, Series D, Series E and Series F Preferred Stock do not have any voting rights. Preferred stock dividends paid during 2017 included the following: On December 15, 2017, Customers made the following dividend payments to preferred shareholders of record as of November 30, 2017: • a cash dividend on its Series C Preferred Stock of $0.4375 per share; • a cash dividend on its Series D Preferred Stock of $0.40625 per share; • a cash dividend on its Series E Preferred Stock of $0.403125 per share and • a cash dividend on its Series F Preferred Stock of $0.375 per share. On September 15, 2017, Customers made the following dividend payments to preferred shareholders of record as of August 31, 2017: • a cash dividend on its Series C Preferred Stock of $0.4375 per share; • a cash dividend on its Series D Preferred Stock of $0.40625 per share; • a cash dividend on its Series E Preferred Stock of $0.403125 per share and • a cash dividend on its Series F Preferred Stock of $0.375 per share. On June 15, 2017, Customers made the following dividend payments to preferred shareholders of record as of May 31, 2017: • a cash dividend on its Series C Preferred Stock of $0.4375 per share; • a cash dividend on its Series D Preferred Stock of $0.40625 per share; • a cash dividend on its Series E Preferred Stock of $0.403125 per share and • a cash dividend on its Series F Preferred Stock of $0.375 per share. On March 15, 2017, Customers made the following dividend payments to preferred shareholders of record as of February 28, 2017: • a cash dividend on its Series C Preferred Stock of $0.4375 per share; • a cash dividend on its Series D Preferred Stock of $0.40625 per share; • a cash dividend on its Series E Preferred Stock of $0.403125 per share and • a cash dividend on its Series F Preferred Stock of $0.375 per share. Preferred stock dividends paid during 2016 included the following: On December 15, 2016, Customers made the following dividend payments to preferred shareholders of record as of November 30, 2016: • a cash dividend on its Series C Preferred Stock of $0.4375 per share; • a cash dividend on its Series D Preferred Stock of $0.40625 per share; • a cash dividend on its Series E Preferred Stock of $0.403125 per share and • a cash dividend on its Series F Preferred Stock of $0.370833 per share. On September 15, 2016, Customers made the following dividend payments to preferred shareholders of record as of August 31, 2016: • a cash dividend on its Series C Preferred Stock of $0.4375 per share; • a cash dividend on its Series D Preferred Stock of $0.40625 per share; • a cash dividend on its Series E Preferred Stock of $0.403125 per share and On June 15, 2016, Customers made the following dividend payments to preferred shareholders of record as of May 31, 2016: • a cash dividend on its Series C Preferred Stock of $0.4375 per share; • a cash dividend on its Series D Preferred Stock of $0.40625 per share and • a cash dividend on its Series E Preferred Stock of $0.210521 per share. On March 15, 2016, Customers made the following dividend payments to preferred shareholders of record as of February 29, 2016: • a cash dividend on its Series C Preferred Stock of $0.4375 per share and • a cash dividend on its Series D Preferred Stock of $0.2076 per share. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS 401(k) Plan Customers has a 401(k) profit sharing plan whereby eligible team members may contribute amounts up to the annual IRS statutory contribution limit. Customers provides a matching contribution equal to 50% of the first 6% of the contribution made by the team member. Employer contributions for the years ended December 31, 2017 , 2016 and 2015 , were $1.9 million , $1.6 million , and $1.1 million , respectively. Supplemental Executive Retirement Plan Customers entered into a supplemental executive retirement plan ("SERP") with its Chairman and Chief Executive Officer that provides annual retirement benefits for a 15 -year period upon the later of his reaching the age of 65 or when he terminates employment. The SERP is a defined-contribution type of deferred-compensation arrangement that is designed to provide a target annual retirement benefit of $300,000 per year for 15 years starting at age 65 , based on an assumed constant rate of return of 7% per year. The level of retirement benefit is not guaranteed by Customers, and the ultimate retirement benefit can be less than or greater than the target. Customers funds its obligations under the SERP with the increase in cash surrender value of a life insurance policy on the life of the Chairman and Chief Executive Officer which it owns. The present value of the amount owed as of December 31, 2017 , was $4.6 million and was included in other liabilities. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | SHARE-BASED COMPENSATION PLANS Summary During 2010, the shareholders of Customers Bancorp approved the 2010 Stock Option Plan (“2010 Plan”), and during 2012, the shareholders of Customers Bancorp approved the 2012 Amendment and Restatement of the Customers Bancorp, Inc. Amended and Restated 2004 Incentive Equity and Deferred Compensation Plan (“2004 Plan”). The purpose of these plans is to promote the success and enhance the value of Customers Bancorp by linking the personal interests of the members of the Board of Directors, team members, officers and executives of Customers to those of the shareholders of Customers and by providing such individuals with an incentive for outstanding performance in order to generate superior returns to shareholders of Customers. The 2010 Plan and 2004 Plan are intended to provide flexibility to Customers in its ability to motivate, attract and retain the services of members of the Board of Directors, team members, officers and executives of Customers. Stock options and restricted stock units normally vest on the third or fifth anniversary of the grant date provided the grantee remains employed by Customers or continues to serve on the Board. With respect to certain stock options granted under the 2010 Plan, vested options shall be exercisable only when Customers' fully diluted tangible book value will have increased by 50% from the date of grant. Share-based awards generally provide for accelerated vesting if there is a change in control (as defined in the Plans). No stock options may be exercisable for more than 10 years from the date of grant. The 2010 and 2004 Plans are administered by the Compensation Committee of the Board of Directors. The 2010 Plan provides exclusively for the grant of stock options, some or all of which may be structured to qualify as Incentive Stock Options, to team members, officers and executives. The maximum number of shares of common stock which may be issued under the 2010 Plan is 3,666,667 shares. The 2004 Plan provides for the grant of options, some or all of which may be structured to qualify as Incentive Stock Options if granted to team members, stock appreciation rights, restricted stock, restricted stock units and unrestricted stock to team members, officers, executives and members of the Board of Directors. The maximum number of shares of common stock which may be issued under the 2004 Plan is 2,750,000 shares. At December 31, 2017 , the aggregate number of shares of common stock available for grant under these plans was 1,621,444 shares. On January 1, 2011, Customers initiated a Bonus Recognition and Retention Program (“BRRP”). This is a restricted stock unit plan. Team members eligible to participate in the BRRP include the Chief Executive Officer and other senior management and highly compensated team members as determined by the Compensation Committee at its sole discretion. Under the BRRP, a participant may elect to defer not less than 25% , nor more than 50% , of his or her bonus payable with respect to each year of participation. Shares of Voting Common Stock having a value equal to the portion of the bonus deferred by a participant are allocated to an annual deferral account, and a matching amount equal to an identical number of shares of common stock is also allocated to the annual deferral account. A participant becomes 100% vested in the annual deferral account on the fifth anniversary date of the initial funding of the account, provided he or she remains continuously employed by Customers from the date of funding to the anniversary date. Vesting is accelerated in the event of involuntary termination other than for cause, retirement at or after age 65 , death, termination on account of disability or a change in control of Customers. Participants were first eligible to make elections under the BRRP with respect to their bonuses for 2011, which were payable in first quarter 2012. The BRRP does not provide for a specific number of shares to be reserved; by its terms, the award of restricted stock units under this plan is limited by the amount of cash bonuses paid to the participants in the plan. At December 31, 2017 , restricted stock units outstanding under this plan totaled 263,517 . Share-based-compensation expense relating to stock options and restricted stock units is recognized on a straight-line basis over the vesting periods of the awards and is a component of salaries and employee benefits expense. Total share-based- compensation expense for 2017 , 2016 and 2015 , was $6.1 million , $6.2 million and $4.9 million , respectively. At December 31, 2017 , there was $19.8 million of unrecognized compensation cost related to all non-vested share-based- compensation awards. This cost is expected to be recognized through December 2022 . In 2014, the shareholders of Customers Bancorp approved the 2014 Employee Stock Purchase Plan (the "ESPP"). The ESPP is intended to encourage team member participation in the ownership and economic progress of Customers. This plan is intended to qualify as an employee stock purchase plan within the meaning of the Internal Revenue Code and is administered by the Compensation Committee of the Board of Directors. Under the ESPP, team members may elect to purchase shares of Customers' common stock through payroll deduction. Because the purchase price under the plan is 85% of the fair market value of a share of common stock on the first day of each quarterly subscription period (a 15% discount to the market price), Customers' ESPP is considered to be a compensatory plan under current accounting guidance. Therefore, the entire amount of the discount is recognizable compensation expense. ESPP expense for 2017 , 2016 and 2015 was $132 thousand , $103 thousand , and $80 thousand , respectively. Stock Options Customers estimated the fair value of each option on the date of grant generally using the Black-Scholes option pricing model. The risk-free interest rate was based upon the zero-coupon Treasury rates in effect on the grant date of the options based on the expected life of the option. Expected volatility was based upon limited historical information because Customers' common stock has only been traded since February 2012. Expected life was management’s estimate which took into consideration the vesting requirement, generally three or five years. During 2017 , options to purchase an aggregate of 776,500 shares of Customers Bancorp voting common stock were granted to certain officers and team members. The exercise price for the options granted was equal to the closing price of Customers Bancorp's voting common stock on the date of grant. The majority of the options issued are subject to a five -year cliff vesting and expire after ten years. In addition to the five -year service requirement, 650,000 of the options issued also require that Customers' share price trade above $40 for ten days during the vesting period for the options to become exercisable. Customers evaluated the likelihood that the aforementioned vesting condition would be met over the requisite service period and determined that it was more likely than not that the condition would be satisfied (based upon historical performance). Accordingly, the grant-date fair value of these awards is being recognized as expense over the five -year vesting period. The following table presents the weighted-average assumptions used and the resulting weighted-average fair value of each option granted for the periods presented. 2017 2016 2015 Weighted-average risk-free interest rate 2.35 % 1.84 % 1.90 % Expected dividend yield — % — % — % Weighted-average expected volatility 25.05 % 23.39 % 21.18 % Weighted-average expected life (in years) 7.00 7.00 7.00 Weighted-average fair value of each option granted $ 8.68 $ 7.61 $ 6.42 The following table summarizes stock option activity for the year ended December 31, 2017 : Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (dollars in thousands, except weighted-average exercise price) Outstanding, December 31, 2016 3,960,040 $ 15.25 Granted 776,500 26.92 Exercised (2,007,762 ) 11.30 $ 32,029 Expired (7,334 ) 10.91 Forfeited (2,750 ) 17.65 Outstanding, December 31, 2017 2,718,694 $ 21.52 7.54 $ 12,887 Exercisable at December 31, 2017 96,963 $ 12.42 4.06 $ 1,317 Cash received from the exercise of the stock options during the year ended December 31, 2017 was $2.0 million . The tax benefit realized for the tax deductions from option exercises totaled $10.2 million in 2017. A summary of the status of Customers' non-vested options at December 31, 2017 , and changes during the year ended December 31, 2017 , is as follows: Options Weighted- Average exercise price Non-vested at December 31, 2016 2,865,962 $ 17.24 Granted 776,500 26.92 Vested (1,017,981 ) 12.77 Forfeited (2,750 ) 17.65 Non-vested at December 31, 2017 2,621,731 21.85 Restricted Stock Units The fair value of restricted stock units granted under the 2004 Plan is generally determined based on the closing market price of Customers' common stock on the date of grant. The fair value of restricted stock units granted under the BRRP is measured as of the date on which such portion of the bonus would have been paid had the deferral not been elected. In February 2012, the Compensation Committee recommended and the Board of Directors approved a restricted stock award that had two vesting requirements. The first requirement was that the recipient remained an employee or director through December 31, 2016. The second requirement was that Customers' Voting Common Stock will have traded at a price greater than $ 17.18 per share (adjusted for any stock splits or stock dividends) for at least five consecutive trading days during the five-year period ending December 31, 2016. This second requirement was satisfied during fourth quarter 2013. Pursuant to the terms of this award, 375,402 of restricted stock units vested on December 31, 2016. There were 218,449 restricted stock units granted during the year ended December 31, 2017 . Of the aggregate restricted stock units granted, 41,244 were granted under the BRRP and are subject to five -year cliff vesting. The remaining 177,205 units were granted under the Bancorp's Restated and Amended 2004 Incentive Equity and Deferred Compensation Plan and are subject to either a three -year waterfall vesting (with one third of the amount vesting annually) or a three-year cliff vesting. The table below presents the status of the restricted stock units at December 31, 2017 , and changes during the year ended December 31, 2017 : Restricted Stock Units Weighted- Average Grant- Date Fair Value Outstanding and unvested at December 31, 2016 645,505 $ 19.43 Granted 218,449 29.93 Vested (256,078 ) 15.70 Forfeited (17,840 ) 25.85 Outstanding and unvested at December 31, 2017 590,036 $ 24.74 Customers has a policy that permits its directors to elect to receive shares of Voting Common Stock in lieu of their cash retainers. During the year ended December 31, 2017 , Customers issued 31,962 shares of Voting Common Stock with a fair value of $0.9 million to the directors as compensation for their services. The fair values were generally determined based on the closing price of the common stock the day before the shares were issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense were as follows: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Current $ 29,924 $ 48,472 $ 40,004 Deferred 15,118 (2,579 ) (10,092 ) Income tax expense $ 45,042 $ 45,893 $ 29,912 Effective tax rates differ from the federal statutory rate of 35% , which is applied to income before income tax expense, due to the following: For the Years Ended December 31, 2017 2016 2015 Amount % of Amount % of Amount % of (amounts in thousands) Federal income tax at statutory rate $ 43,357 35.00 % $ 43,608 35.00 % $ 30,973 35.00 % State income tax, net of federal benefit 3,835 3.10 4,548 3.65 1,434 1.62 Tax-exempt interest, net of disallowance (381 ) (0.31 ) (237 ) (0.19 ) (277 ) (0.31 ) Bank-owned life insurance (2,675 ) (2.16 ) (1,716 ) (1.38 ) (2,422 ) (2.73 ) Equity-based compensation benefit (10,741 ) (8.67 ) (3,659 ) (2.94 ) — — Non-deductible executive compensation 654 0.53 — — — — Unrecorded basis difference in foreign subsidiaries 4,527 3.65 2,830 2.27 — — Enactment of federal tax reform 5,505 4.44 — — — — Other 961 0.78 519 0.42 204 0.22 Effective income tax rate $ 45,042 36.36 % $ 45,893 36.83 % $ 29,912 33.80 % Customers accounts for income taxes under the liability method of accounting for income taxes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Customers determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. A tax position is recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent ; the terms examined and upon examination also include resolution of the related appeals or litigation process, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. At December 31, 2017 and 2016 , Customers had no ASC 740-10 unrecognized tax benefits. Customers does not expect the total amount of unrecognized tax benefits to significantly increase within the next 12 months. Customers recognizes interest and penalties on unrecognized tax benefits in other expense. Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the carry-back period. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income and the projected future taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Based on its assessment, management determined that no valuation allowance was necessary at December 31, 2017 and 2016 . On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act, was signed into law. The Act includes many provisions that will effect Customers' income tax expenses, including reducing the corporate federal tax rate from 35% to 21% effective January 1, 2018. As a result of the rate reduction, Customers was required to re-measure, through income tax expense in the period of enactment, its deferred tax assets and liabilities using the enacted rate at which Customers expects them to be recovered or settled. The re-measurement of the net deferred tax asset resulted in additional income tax expense of $5.5 million . Also on December 22, 2017, the SEC released Staff Accounting Bulletin No. 118 to address any uncertainty or diversity of views in practice in accounting for the income tax effects of the Act in situations where a registrant does not have the necessary information available, prepared or analyzed in reasonable detail to complete this accounting in the reporting period that includes the enactment date. SAB 118 allows for a measurement period not to extend beyond one year from the Act’s enactment date to complete the necessary accounting. Customers recorded provisional amounts of deferred income taxes using reasonable estimates in three areas where information necessary to complete the accounting was not available, prepared or analyzed as follows: (i) the deferred tax liability for temporary differences between the tax and financial reporting bases of fixed assets principally due to the accelerated depreciation under the Act which allows for full expensing of qualified property purchased and placed in service after September 27, 2017; (ii) the deferred tax asset for temporary differences associated with accrued compensation is awaiting final determinations of amounts that will be paid and deducted on the 2017 income tax returns and (iii) the deferred tax liability for temporary differences associated with equity investments in partnerships is awaiting receipt of Schedules K-1 from outside preparers, which is necessary to determine the 2017 tax impact from these investments. In a fourth area, Customers made no adjustments to deferred tax assets representing future deductions for accrued compensation that may be subject to new limitations under Internal Revenue Code Section 162(m) which, generally, limits the annual deduction for certain compensation paid to certain team members to $1 million . There is uncertainty in applying the newly enacted rules to existing contracts, and Customers is seeking further clarifications before completing its analysis. Customers will complete and record the income tax effects of these provisional items during the period in which the necessary information becomes available. This measurement period will not extend beyond December 22, 2018. Deferred income taxes reflect temporary differences in the recognition of revenue and expenses for tax reporting and financial statement purposes, principally because certain items are recognized in different periods for financial reporting and tax return purposes. The following represents Customers' deferred tax asset and liabilities as December 31, 2017 and 2016 : December 31, 2017 2016 (amounts in thousands) Deferred tax assets Allowance for loan losses $ 9,738 $ 14,540 Net unrealized losses on securities 512 1,714 OREO expenses 748 1,233 Non-accrual interest 515 589 Net operating losses 1,199 2,137 Deferred compensation 1,181 1,523 Equity-based compensation 2,748 5,548 Cash flow hedge 84 1,413 Incentive compensation 634 3,041 Net deferred loan fees 47 — Other 2,215 1,972 Total deferred tax assets 19,621 33,710 Deferred tax liabilities Fair value adjustments on acquisitions (618 ) (1,039 ) Net deferred loan fees — (1,090 ) Bank premises and equipment (986 ) (713 ) Lease adjustments (4,899 ) (206 ) Other (980 ) (1,173 ) Total deferred tax liabilities (7,483 ) (4,221 ) Net deferred tax asset $ 12,138 $ 29,489 Customers had approximately $6.0 million of federal and state net operating loss carryovers at December 31, 2017, that expire in 2027 through 2037. Customers is subject to U.S. federal income tax as well as income tax in various state and local taxing jurisdictions. Generally, Customers is no longer subject to examination by federal, state and local taxing authorities for years prior to December 31, 2014. |
Transactions with Executive Off
Transactions with Executive Officers, Directors, and Principal Shareholders | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Executive Officers, Directors, and Principal Shareholders | TRANSACTIONS WITH EXECUTIVE OFFICERS, DIRECTORS AND PRINCIPAL SHAREHOLDERS Customers has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal shareholders, their immediate families and affiliated companies (commonly referred to as related parties). The activity relating to loans to such persons was as follows: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Balance as of December 31, $ 238 $ 220 $ 9 Additions 99 1,160 2,218 Repayments (337 ) (1,142 ) (2,007 ) Balance as of December 31, $ — $ 238 $ 220 As of December 31, 2017 and 2016, Customers Bank had an outstanding commitment to one of its related parties to provide short-term commercial real estate financing, subject to certain terms and conditions, not to exceed $8.0 million . Customers Bank also had an available line of credit of $1.8 million with this related party as of December 31, 2016. Also, as of December 31, 2017, Customers Bank had an outstanding commitment to a related party to provide a letter of credit in the amount of $0.5 million . Some current directors, nominees for director and executive officers of Customers and entities or organizations in which they were executive officers or the equivalent or owners of more than 10% of the equity were customers of and had transactions with or involving Customers in the ordinary course of business during the fiscal year ended December 31, 2017 . None of these transactions involved amounts in excess of 5% of Customers' gross revenues during 2017 , nor was Customers indebted to any of the foregoing persons or entities in an aggregate amount in excess of 5% of Customers' total assets at December 31, 2017 . Additional transactions with such persons and entities may be expected to take place in the ordinary course of business in the future. At December 31, 2017 and 2016 , Customers had approximately $10.6 million and $6.4 million , respectively, in deposits from related parties, including directors and certain executive officers. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK Customers is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. Customers' exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. Customers uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following financial instruments were outstanding whose contract amounts represent credit risk: December 31, 2017 2016 (amounts in thousands) Commitments to fund loans $ 333,874 $ 244,784 Unfunded commitments to fund mortgage warehouse loans 1,567,139 1,230,596 Unfunded commitments under lines of credit 485,345 480,446 Letters of credit 39,890 40,223 Other unused commitments 6,679 5,310 Commitments to fund loans and unfunded commitments under lines of credit may be obligations of Customers as long as there is no violation of any condition established in the contract. Because many of the commitments are expected to expire without having being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Customers evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by Customers upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Mortgage warehouse loan commitments are agreements to fund the pipeline of mortgage banking businesses from closing of the individual mortgage loans until their sale into the secondary market. Most of the individual mortgage loans are insured or guaranteed by the U.S. Government through one of its programs, such as FHA or VA, or are conventional loans eligible for sale to Fannie Mae and Freddie Mac. These commitments generally fluctuate monthly based on changes in interest rates, refinance activity, new home sales and laws and regulation. Outstanding letters of credit written are conditional commitments issued by Customers to guarantee the performance of a customer to a third party. Letters of credit may obligate Customers to fund draws under those letters of credit regardless of whether the customer continues to meet the conditions of the extension of credit. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. Customers requires collateral supporting these letters of credit as deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liabilities as of December 31, 2017 and 2016 , for guarantees under standby letters of credit issued was not material. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | REGULATORY MATTERS 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 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 December 31, 2017 and 2016 , the Bank and the Bancorp met all capital adequacy 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 set forth in the following table. Minimum Capital Levels to be Classified as: Actual Adequately Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Common equity Tier 1 (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 % December 31, 2016 Common equity Tier 1 (to risk-weighted assets) Customers Bancorp, Inc. $ 628,139 8.487 % $ 333,049 4.500 % N/A N/A $ 379,306 5.125 % Customers Bank $ 857,421 11.626 % $ 331,879 4.500 % $ 479,380 6.500 % $ 377,973 5.125 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 844,755 11.414 % $ 444,065 6.000 % N/A N/A $ 490,322 6.625 % Customers Bank $ 857,421 11.626 % $ 442,505 6.000 % $ 590,006 8.000 % $ 488,599 6.625 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 966,097 13.053 % $ 592,087 8.000 % N/A N/A $ 638,343 8.625 % Customers Bank $ 1,003,609 13.608 % $ 590,006 8.000 % $ 737,508 10.000 % $ 636,101 8.625 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 844,755 9.067 % $ 372,652 4.000 % N/A N/A $ 372,652 4.000 % Customers Bank $ 857,421 9.233 % $ 371,466 4.000 % $ 464,333 5.000 % $ 371,466 4.000 % The risk-based capital rules adopted effective January 1, 2015, required 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, 2017, 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 5.750% ; (ii) a Tier 1 risk-based capital ratio of 7.250% and (iii) a Total risk-based capital ratio of 9.250% . Failure to maintain the required capital conservation buffer will result in limitations on elective distributions, including capital distributions and discretionary bonuses to executive officers. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Financial Instruments | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - As Restated 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. FASB 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. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC 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 (i.e., 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 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 December 31, 2017 and 2016 : Cash and cash equivalents: The carrying amounts reported on the balance sheet for cash and cash equivalents approximate those assets’ fair values. These assets are classified as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Investment securities: The fair values of investment securities available for sale 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 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 (fair value option): Customers 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 receivable - Commercial mortgage warehouse loans (fair value option): 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 since 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 22 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. Loans held for sale - Multi-family loans: The fair values of multi-family loans held for sale are estimated using pricing indications from letters of intent with third party investors, recent sale transactions within the secondary markets for loans with similar characteristics, non-binding indicative bids from brokers or estimates made by management considering current market rates and terms. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans receivable, net of allowance for loan losses: The fair values of loans held for investment are estimated using discounted cash flows, using market rates at the balance sheet date that reflect the credit and interest-rate risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Impaired loans: Impaired loans are those that are accounted for under ASC 310, Receivables , for which Customers 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 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 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 Customers and performed by appraisers on Customers' 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. Deposit liabilities: The fair values disclosed for interest and non-interest checking, savings and money market deposit accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). These liabilities are classified as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. These liabilities are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Federal funds purchased: For these short-term instruments, the carrying amount is considered a reasonable estimate of fair value. These liabilities are classified as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Borrowings: Borrowings consist of long-term and short-term FHLB advances, 5 -year senior unsecured notes, and subordinated debt. For overnight borrowings, the carrying amounts are considered reasonable estimates of fair value and are classified as Level 1 fair values measurements. Fair values of all other FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit-risk characteristics, terms and remaining maturity. The prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. These liabilities are classified as Level 2 fair value measurements. Fair values of privately placed subordinated and senior unsecured debt are estimated by a third-party financial adviser using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit-risk characteristics, terms and remaining maturity. These liabilities are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The $63.3 million senior unsecured notes issued during third quarter 2013 are traded on the New York Stock Exchange, and their price can be obtained daily. This fair value measurement is classified as Level 1. 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 fixed cash receipts and the discounted expected variable cash payments. The discounted variable cash 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 Customers and its counterparties. These assets and liabilities are included 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. Customers 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 Customers' internal experience (i.e., pull-through rate). These assets and liabilities are included 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. Off-balance-sheet financial instruments: The fair values of unused commitments to lend and standby letters of credit are considered to be the same as their contractual amounts. 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 Customers’ disclosures and those of other companies may not be meaningful. The estimated fair values of Customers’ financial instruments were as follows at December 31, 2017 and 2016 . Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) (as restated) 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 (as restated) 146,077 146,251 — 1,886 144,365 Total loans receivable, net of allowance for loan losses (as restated) 8,523,651 8,470,171 — 1,793,408 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 — Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) (as restated) Assets Cash and cash equivalents $ 264,709 $ 264,709 $ 264,709 $ — $ — Investment securities, available for sale 493,474 493,474 15,246 478,228 — Loans held for sale (as restated) 695 695 — 695 — Total loans receivable, net of allowance for loan losses (as restated) 8,234,137 8,278,835 — 2,116,815 6,162,020 FHLB and Federal Reserve Bank, and other restricted stock 68,408 68,408 — 68,408 — Derivatives 10,864 10,864 — 10,819 45 Liabilities Deposits $ 7,303,775 $ 7,303,663 $ 4,472,013 $ 2,831,650 $ — Federal funds purchased 83,000 83,000 83,000 — — FHLB advances 868,800 869,049 688,800 180,249 — Other borrowings 87,123 91,761 66,261 25,500 — Subordinated debt 108,783 111,375 — 111,375 — Derivatives 14,172 14,172 — 14,172 — For financial assets and liabilities measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2017 and 2016 , were as follows: December 31, 2017 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Significant Other Significant Total (amounts in thousands) (as restated) 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 (as restated) — 1,886 — 1,886 Loans receivable, mortgage warehouse – fair value option (as restated) — 1,793,408 — 1,793,408 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 specific 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 December 31, 2016 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) (as restated) Measured at Fair Value on a Recurring Basis Assets Available-for-sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 231,263 $ — $ 231,263 Agency-guaranteed commercial mortgage-backed securities — 201,817 — 201,817 Corporate notes — 45,148 — 45,148 Equity securities 15,246 — — 15,246 Derivatives — 10,819 45 10,864 Loans held for sale – fair value option (as restated) — 695 — 695 Loans receivable, mortgage warehouse – fair value option (as restated) — 2,116,815 — 2,116,815 Total assets - recurring fair value measurements $ 15,246 $ 2,606,557 $ 45 $ 2,621,848 Liabilities Derivatives $ — $ 14,172 $ — $ 14,172 Measured at Fair Value on a Nonrecurring Basis Assets Impaired loans, net of specific reserves of $1,360 $ — $ — $ 6,527 $ 6,527 Other real estate owned — — 2,731 2,731 Total assets - nonrecurring fair value measurements $ — $ — $ 9,258 $ 9,258 The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016 , were as follows: For the Years Ended December 31, 2017 2016 Residential Mortgage Loan Commitments (amounts in thousands) Balance at December 31, $ 45 $ 45 Issuances 360 400 Settlements (345 ) (400 ) Balance at December 31, $ 60 $ 45 Customers' policy is to recognize transfers between fair value levels when events or circumstances warrant transfers. There were no transfers between levels during the years ended December 31, 2017 and 2016 . The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2017 and 2016 , for which Customers utilized Level 3 inputs to measure fair value: Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars 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 % Quantitative Information about Level 3 Fair Value Measurements December 31, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars in thousands) Impaired loans $ 1,431 Collateral appraisal (1) Liquidation expenses (2) (8 )% Impaired loans 5,096 Discounted cash flow Projected cash flows (3) 4 times EBIDTA Other real estate owned 2,731 Collateral appraisal (1) Liquidation expenses (2) (8 )% Residential mortgage loan commitments 45 Adjusted market bid Pull-through rate 90 % (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. Customers does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell based on a percentage of the value determined by appraisal. (3) Projected cash flows of the business derived using EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) multiple based on management's best estimate. (4) 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 | 12 Months Ended |
Dec. 31, 2017 | |
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 values 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 sometimes 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 effective portion of 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. During 2017 and 2016 , such derivatives were used to hedge the variable cash flows associated with the forecasted issuances of debt. The ineffective portion of the change in fair value of the derivatives is to be recognized directly in earnings. During 2017 and 2016 , Customers did not record any hedge ineffectiveness. 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 $0.3 million from accumulated other comprehensive income 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 24 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). 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. At December 31, 2016 , Customers had four outstanding interest rate derivatives with notional amounts totaling $325.0 million that were designated as cash flow hedges of interest-rate risk. The hedges expire between January 2018 and April 2019. Derivatives Not Designated as Hedging Instruments Customers executes interest rate swaps with commercial banking customers to facilitate the customer's respective risk management strategies (typically the loan customers will swap a floating-rate loan to 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 December 31, 2017 , Customers had 76 interest rate swaps with an aggregate notional amount of $ 800.5 million related to this program. At December 31, 2016 , Customers had 76 interest rate swaps with an aggregate notional amount of $ 716.6 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 applicable accounting guidance and are reported at fair value, with changes in fair value recorded directly in earnings. At December 31, 2017 and 2016 , Customers had an outstanding notional balance of residential mortgage loan commitments of $ 2.7 million and $ 3.6 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 reported directly in earnings. At December 31, 2017 and 2016 , Customers had an outstanding notional balance of credit derivatives of $80.5 million and $44.9 million , respectively. Fair Value of Derivative Instruments on the Balance Sheet The following table presents the fair value of Customers’ derivative financial instruments as well as their presentation on the consolidated balance sheets at December 31, 2017 and 2016 . 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 December 31, 2016 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 $ — Other liabilities $ 3,624 Total $ — $ 3,624 Derivatives not designated as hedging instruments Interest rate swaps Other assets $ 10,683 Other liabilities $ 10,537 Credit contracts Other assets 136 Other liabilities 11 Residential mortgage loan commitments Other assets 45 Other liabilities — Total $ 10,864 $ 10,548 Effect of Derivative Instruments on Comprehensive Income The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the years ended December 31, 2017 , 2016 and 2015 . For the Year Ended December 31, 2017 Income Statement Location Amount of Income Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments Interest rate swaps Other non-interest income $ 604 Credit contracts Other non-interest income 171 Residential mortgage loan commitments Mortgage banking income 15 Total $ 790 For the Year Ended December 31, 2016 Income Statement Location Amount of Income Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments Interest rate swaps Other non-interest income $ 2,955 Credit contracts Other non-interest income 163 Residential mortgage loan commitments Mortgage banking income — Total $ 3,118 For the Year Ended December 31, 2015 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 $ 1,889 Credit contracts Other non-interest income (15 ) Residential mortgage loan commitments Mortgage banking income 2 Total $ 1,876 For the Year Ended December 31, 2017 Location of Gain Amount of Loss Amount of Income (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 406 Interest expense $ (2,634 ) For the Year Ended December 31, 2016 Location of Gain Amount of Loss Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivative in cash flow hedging relationship: Interest rate swaps $ (629 ) Interest expense $ (1,946 ) For the Year Ended December 31, 2015 Location of Gain Amount of Gain (Loss) Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivative in cash flow hedging relationship: Interest rate swaps $ (1,534 ) Interest expense $ — (1) Amounts presented are net of taxes 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 December 31, 2017 , 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 $ 4.4 million . In addition, Customers has collateral posting thresholds with certain of these counterparties and at December 31, 2017 , had posted $ 4.9 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 December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (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 December 31, 2016 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 4,723 $ — $ 4,723 $ — $ — $ 4,723 Offsetting of Financial Liabilities and Derivative Liabilities at December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (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 December 31, 2016 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 9,825 $ — $ 9,825 $ — $ 4,472 $ 5,353 |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The following tables present the condensed financial statements for Customers Bancorp, Inc. (parent company only) as of December 31, 2017 and 2016, and for the years ended December 31, 2017, 2016 and 2015. Balance Sheets December 31, 2017 2016 (amounts in thousands) Assets Cash in subsidiary bank $ 67,231 $ 54,441 Investments in and receivables due from subsidiaries 1,039,883 883,793 Other assets 3,160 10,784 Total assets $ 1,110,274 $ 949,018 Liabilities and Shareholders’ equity Borrowings $ 186,497 $ 87,123 Other liabilities 2,813 6,023 Total liabilities 189,310 93,146 Shareholders’ equity 920,964 855,872 Total Liabilities and Shareholders’ Equity $ 1,110,274 $ 949,018 Income and Comprehensive Income Statements For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Operating income: Other $ 38,200 $ 25,400 $ 18,545 Total operating income 38,200 25,400 18,545 Operating expense: Interest 7,984 5,854 5,854 Other 1,742 4,570 4,604 Total operating expense 9,726 10,424 10,458 Income before taxes and undistributed income of subsidiaries 28,474 14,976 8,087 Income tax benefit 3,620 3,961 3,516 Income before undistributed income of subsidiaries 32,094 18,937 11,603 Equity in undistributed income of subsidiaries 46,743 59,765 46,980 Net income 78,837 78,702 58,583 Preferred stock dividends 14,459 9,515 2,493 Net income available to common shareholders 64,378 69,187 56,090 Comprehensive income $ 83,370 $ 81,794 $ 50,721 Statements of Cash Flows For the Years Ended December 31, (amounts in thousands) 2017 2016 2015 Cash Flows from Operating Activities: Net income $ 78,837 $ 78,702 $ 58,583 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries, net of dividends received from Bank (46,743 ) (59,765 ) (46,980 ) Loss on sale of available for sale investment securities — 1 — (Increase) decrease in other assets 7,624 (7,721 ) 2,488 Increase (decrease) in other liabilities (1,322 ) 54 (112 ) Net Cash Provided By Operating Activities 38,396 11,271 13,979 Cash Flows from Investing Activities: Proceeds from sales of investment securities available for sale — 4 — Payments for investments in and advances to subsidiaries (98,725 ) (230,872 ) (30,036 ) Net Cash Used in Investing Activities (98,725 ) (230,868 ) (30,036 ) Cash Flows from Financing Activities: Proceeds from issuance of common stock 2,716 70,985 904 Proceeds from issuance of preferred stock — 161,902 55,569 Proceeds from issuance of long-term debt 98,564 — — Exercise and redemption of warrants 1,059 1,532 — Payments of employee taxes withheld from share-based awards (14,761 ) (5,897 ) — Preferred stock dividends paid (14,459 ) (9,051 ) (2,314 ) Net Cash Provided by Financing Activities 73,119 219,471 54,159 Net Increase (Decrease) in Cash and Cash Equivalents 12,790 (126 ) 38,102 Cash and Cash Equivalents – Beginning 54,441 54,567 16,465 Cash and Cash Equivalents – Ending $ 67,231 $ 54,441 $ 54,567 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents selected quarterly data for the years ended December 31, 2017 and 2016 . Amounts previously reported as discontinued operations for the quarterly data for the year ended December 31, 2016, related to BankMobile have been reclassified to conform with the current period presentation as a result of the BankMobile spin-off/merger transaction described in NOTE 3 - SPIN-OFF AND MERGER. 2017 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 97,619 $ 98,285 $ 93,852 $ 83,094 Interest expense 29,319 30,266 25,246 20,676 Net interest income 68,300 68,019 68,606 62,418 Provision for loan losses 831 2,352 535 3,050 Non-interest income 19,740 18,026 18,391 22,754 Non-interest expenses 54,788 61,040 50,413 49,366 Income before income taxes 32,421 22,653 36,049 32,756 Provision for income taxes 10,806 14,899 12,327 7,009 Net income 21,615 7,754 23,722 25,747 Preferred stock dividends 3,615 3,615 3,615 3,615 Net income available to common shareholders $ 18,000 $ 4,139 $ 20,107 $ 22,132 Earnings per common share: Basic earnings per common share $ 0.58 $ 0.13 $ 0.66 $ 0.73 Diluted earnings per common share $ 0.55 $ 0.13 $ 0.62 $ 0.67 2016 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 83,609 $ 84,212 $ 81,321 $ 73,398 Interest expense 19,481 19,627 18,163 15,771 Net interest income 64,128 64,585 63,158 57,627 Provision for loan losses 187 88 786 1,980 Non-interest income 15,131 27,486 8,257 5,494 Non-interest expenses 49,924 56,218 38,183 33,905 Income before income taxes 29,148 35,765 32,446 27,236 Provision for income taxes 9,320 14,558 12,963 9,052 Net income 19,828 21,207 19,483 18,184 Preferred stock dividends 3,615 2,552 2,062 1,286 Net income available to common shareholders $ 16,213 $ 18,655 $ 17,421 $ 16,898 Earnings per common share: Basic earnings per common share $ 0.56 $ 0.68 $ 0.64 $ 0.63 Diluted earnings per common share $ 0.51 $ 0.63 $ 0.59 $ 0.58 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS 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 and New Hampshire 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, commercial mortgage companies and equipment finance. 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 bank 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 a result of the Disbursement business acquisition described in NOTE 2 - ACQUISITION ACTIVITY. The following tables present the operating results for Customers' reportable business segments for the years ended December 31, 2017 , 2016 and 2015 . 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 37.67% for year ended December 31, 2017 , and 38% for the years ended December 31, 2016 and 2015 , respectively. For the Year Ended December 31, 2017 (amounts in thousands) Community Business Banking BankMobile Consolidated Interest income (1) $ 359,931 $ 12,919 $ 372,850 Interest expense 105,438 69 105,507 Net interest income 254,493 12,850 267,343 Provision for loan losses 5,638 1,130 6,768 Non-interest income 24,788 54,122 78,910 Non-interest expense 128,604 87,002 215,606 Income (loss) before income taxes 145,039 (21,160 ) 123,879 Income tax expense (benefit) 53,013 (7,971 ) 45,042 Net income (loss) 92,026 (13,189 ) 78,837 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 77,567 $ (13,189 ) $ 64,378 Goodwill and other intangibles $ 3,630 $ 12,665 $ 16,295 Total assets $ 9,769,996 $ 69,559 $ 9,839,555 Total deposits $ 6,400,310 $ 399,832 $ 6,800,142 Total non-deposit liabilities $ 2,106,919 $ 11,530 $ 2,118,449 For the Year Ended December 31, 2016 (amounts in thousands) Community Business Banking BankMobile Consolidated Interest income (1) $ 315,643 $ 6,896 $ 322,539 Interest expense 73,004 38 73,042 Net interest income 242,639 6,858 249,497 Provision for loan losses 2,246 795 3,041 Non-interest income 23,165 33,205 56,370 Non-interest expense (2) 130,394 47,837 178,231 Income (loss) before income taxes 133,164 (8,569 ) 124,595 Income tax expense (benefit) (2) 49,149 (3,256 ) 45,893 Net income (loss) 84,015 (5,313 ) 78,702 Preferred stock dividends 9,515 — 9,515 Net income (loss) available to common shareholders $ 74,500 $ (5,313 ) $ 69,187 Goodwill and other intangibles $ 3,639 $ 13,982 $ 17,621 Total assets $ 9,303,465 $ 79,271 $ 9,382,736 Total deposits $ 6,846,980 $ 456,795 $ 7,303,775 Total non-deposit liabilities $ 1,195,087 $ 28,002 $ 1,223,089 (1) - Amounts reported include funds transfer pricing of $12.9 million and $6.9 million , respectively, for the years ended December 31, 2017 and 2016 , credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no-cost deposits. (2) - Includes an $0.8 million inter-segment reclassification of previously reported Community Business Banking and BankMobile segment non-interest expenses, and related income tax effects, as a result of the reallocation of certain segment expenses in 2016 to be consistent with year ended December 31, 2017, presentation. For the Year Ended December 31, 2015 (amounts in thousands) Community Business Banking BankMobile Consolidated Interest income (1) $ 243,404 $ 6,446 $ 249,850 Interest expense 53,536 24 53,560 Net interest income 189,868 6,422 196,290 Provision for loan losses 20,562 4 20,566 Non-interest income 27,573 144 27,717 Non-interest expense 107,569 7,377 114,946 Income (loss) before income taxes 89,310 (815 ) 88,495 Income tax expense (benefit) 30,221 (309 ) 29,912 Net income (loss) 59,089 (506 ) 58,583 Preferred stock dividends 2,493 — 2,493 Net income (loss) available to common shareholders $ 56,596 $ (506 ) $ 56,090 Goodwill and other intangibles $ 3,651 $ — $ 3,651 Total assets $ 8,395,525 $ 2,680 $ 8,398,205 Total deposits $ 5,662,433 $ 247,068 $ 5,909,501 Total non-deposit liabilities $ 1,934,731 $ 71 $ 1,934,802 (1) - Amounts reported include funds transfer pricing of $6.4 million for the year ended December 31, 2015, credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no-cost deposits. |
Significant Accounting Polici_2
Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of Customers Bancorp, Inc. and subsidiaries are in conformity with accounting principles generally accepted in the United States of America and predominant practices of the banking industry. The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, credit deterioration and expected cash flows of purchased-credit-impaired loans, valuation of deferred tax assets, other-than-temporary impairment losses on securities, fair values of financial instruments, fair value of stock option awards and annual goodwill and intangible asset impairment analysis. |
Reclassifications | Reclassifications As described in NOTE 3 - SPIN-OFF AND MERGER, during third quarter 2017 Customers reclassified BankMobile, a segment which Customers previously intended to sell directly to a third party but decided to divest in a spin-off to its shareholders, was reclassified from held for sale to held and used because it no longer met the held-for-sale criteria. Certain prior period amounts and note disclosures (including NOTE 5, NOTE 9, NOTE 10, NOTE 11, NOTE 16, NOTE 20 and NOTE 23) have been reclassified to conform with the current period presentation. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the parent company and its wholly owned subsidiaries, including Customers Bank, CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd., as well as Customers Bank's wholly owned subsidiaries, CIC, Inc., BankMobile Technologies, Inc., Customers Commercial Finance, LLC and Devon Service PA LLC. All significant intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents and Statements of Cash Flows | Cash and Cash Equivalents and Statements of Cash Flows Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits with banks with a maturity date of three months or less and are recorded at cost. The carrying value of cash and cash equivalents is a reasonable estimate of its approximate fair value. Changes in the balances of cash and cash equivalents are reported on the consolidated statements of cash flows. Cash receipts from the repayment or sale of loans are classified within the statement of cash flows based on management's original intent upon origination of the loan, as prescribed by accounting guidance related to the statement of cash flows. Commercial mortgage warehouse loans are classified as held for investment and presented at "Loans receivable, mortgage warehouse, at fair value" on the consolidated balance sheets and the cash flow activities associated with these commercial mortgage warehouse lending activities are reported as investing activities on the consolidated statements of cash flows. |
Restrictions on Cash and Amounts due from Banks | Restrictions on Cash and Amounts due from Banks Customers Bank is required to maintain average balances at a certain level of cash and amounts on deposit with the Federal Reserve Bank. |
Business Combinations | Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accountings Standards Codification ("ASC") 805, Business Combinations . Under the acquisition method, identifiable assets acquired and liabilities assumed are measured at their fair values as of the date of acquisition and are recognized separately from goodwill. The results of operations of the acquired entity are included in the consolidated statement of income from the date of acquisition. |
Investment Securities | Investment Securities Customers acquires securities, largely mortgage-backed securities, to effectively utilize cash and capital and to generate earnings. Security transactions are recorded as of the trade date. Securities are classified at the time of acquisition as available for sale, held to maturity or trading, and their classification determines the accounting as follows: Available for sale : Investment securities classified as available for sale are those debt and equity securities that Customers intends to hold for an indefinite period of time but not necessarily to maturity. Investment securities available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in accumulated other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings and recorded at the trade date. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Held to maturity : Investment securities classified as held to maturity are those debt securities that Customers has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premiums and accretion of discounts, computed by a method which approximates the interest method over the terms of the securities. There were no securities classified as held to maturity as of December 31, 2017 and 2016 . Trading: Investment securities classified as trading are those debt and equity securities that management intends to actively trade. These securities are carried at their current fair value, with changes in fair value reported in income. Customers does not actively trade securities. For available-for-sale and held-to-maturity securities, management periodically assesses whether the securities are other than temporarily impaired. Other-than-temporary impairment means that management believes a security’s decline in fair value below its amortized cost basis is due to factors that could include the issuer’s inability to pay interest or dividends, its potential for default and/or other factors. When a held-to-maturity or available-for-sale debt security is assessed for other-than-temporary impairment, management has to first consider (a) whether Customers intends to sell the security, and (b) whether it is more likely than not that Customers will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an other-than-temporary impairment loss is recognized in the consolidated statements of income equal to the full amount of the decline in fair value below the amortized cost basis. If neither of these circumstances applies to a security, but Customers does not expect to recover the entire amortized cost basis, an other-than-temporary impairment has occurred that must be separated into two categories for debt securities: (a) the amount related to a credit loss and (b) the amount related to other factors. In determining the amount of other-than-temporary impairment attributable to credit loss, management compares the present value of cash flows expected to be collected to the amortized cost basis of the security. The portion of the total other-than-temporary impairment attributed to a credit loss is recognized in earnings (as the difference between the fair value and the present value of the estimated cash flows expected to be collected), while the amount related to all other factors is recognized in accumulated other comprehensive income. The total other-than-temporary impairment loss is presented in the statement of income, less the portion recognized in accumulated other comprehensive income. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. For marketable equity securities, Customers considers the issuer’s financial condition, capital strength and near-term prospects to determine whether an impairment is temporary or other-than-temporary. Customers also considers the volatility of a security’s price in comparison to the market as a whole and any recoveries or declines in fair value subsequent to the balance sheet date. If management determines that the impairment is other-than-temporary, the entire amount of the impairment as of the balance sheet date is recognized in earnings even if the decision to sell the security has not been made. The fair value of the security becomes the new amortized cost basis of the investment and is not adjusted for subsequent recoveries in fair value. |
Loan Accounting Framework | Loan Accounting Framework The accounting for a loan depends on management’s strategy for the loan and on whether the loan was credit impaired at the date of acquisition. The Bank accounts for loans based on the following categories: • Loans held for sale, • Loans at fair value, • Loans receivable and • Purchased loans. The discussion that follows describes the accounting for loans in these categories. |
Loans Held for Sale and Loans at Fair Value | Loans Held for Sale and Loans at Fair Value Loans originated or acquired by Customers with the intent to sell them in the secondary market are carried either at the lower of cost or fair value, determined in the aggregate, or at fair value, depending upon an election made at the time the loan is originated. These loans are generally sold on a non-recourse basis with servicing released. Gains and losses on the sale of loans accounted for at the lower of cost or fair value are recognized in earnings based on the difference between the proceeds received and the carrying amount of the loans, inclusive of deferred origination fees and costs, if any. As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or acquired with the intent to sell may subsequently be designated as held for sale. These loans are transferred to the held-for-sale portfolio at the lower of amortized cost or fair value. When the recorded investment of the loan exceeds its fair value at the date of transfer to the held-for-sale portfolio, the excess will be recognized as a charge against the allowance for loan losses to the extent the loan's reduction in fair value has already been provided for in the allowance for loan losses. Any subsequent lower of cost or fair value adjustments are recognized as a valuation allowance with charges recognized in non-interest income. Loans originated or acquired by Customers with the intent to sell them for which fair value accounting is elected are reported at fair value, with changes in fair value recognized in earnings in the period in which they occur. Upon sale, any difference between the proceeds received and the carrying amount of the loan is recognized in earnings. No fees or costs related to such loans are deferred, so they do not affect the gain or loss calculation at the time of sale. An allowance for loan losses is not maintained on loans designated as held for sale or reported at fair value. |
Loans Receivable | Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the level-yield method without anticipating prepayments. Customers is generally amortizing these amounts over the contractual life of the loans. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or when management has doubts about further collectibility of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is well secured. When a loan is placed on non-accrual status, unpaid accrued interest previously credited to income is reversed. Interest received on non-accrual loans is generally applied against principal until all principal has been recovered. Thereafter, payments are recognized as interest income until all unpaid amounts have been received. Generally, loans are restored to accrual status when the obligation is brought current and has performed in accordance with the contractual terms for a minimum of six months , and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. |
Purchased Loans | Purchased Loans Customers believes that the varying circumstances under which it purchases loans and the diverse credit quality of loans purchased should drive the decision as to whether loans in a portfolio should be deemed to be purchased credit-impaired loans. Therefore, loan purchases are evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans acquired that do not have evidence of credit deterioration at the purchase date are accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs, and loans acquired with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans that are purchased that do not have evidence of credit deterioration Purchased performing loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized or accreted as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected For these types of loan purchases, evidence of deteriorated credit quality may include past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. The fair value of loans with evidence of credit deterioration is recorded net of a nonaccretable difference and accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference that is not included in the carrying amount of acquired loans. Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities and other factors that are reflective of current market conditions. Subsequent decreases in expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows. Purchased credit-impaired ("PCI") loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have similar risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. On a quarterly basis, Customers re-estimates the total cash flows (both principal and interest) expected to be collected over the remaining life of each pool. These estimates incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that reflect the then-current market conditions. If the timing and/or amounts of expected cash flows on purchased credit-impaired loans are determined not to be reasonably estimable, no interest is accreted, and the loans are reported as non-accrual loans; however, when the timing and amounts of expected cash flows for purchased credit-impaired loans are reasonably estimable, interest is accreted, and the loans are reported as performing loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses that are estimated to have occurred and are recognized through provisions for loan losses. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses is maintained at a level considered appropriate to absorb probable incurred loan losses inherent in the loan portfolio as of the reporting date. Customers segments its loan portfolio into groups of loans with similar risk characteristics for purposes of estimating the allowance for loan losses. Customers' loan groups include multi-family, commercial and industrial, owner and non-owner occupied commercial real estate, construction, residential real estate, manufactured housing, other consumer and PCI loans. Loans originated pursuant to the rules and regulations of the Small Business Administration ("SBA loans") are further segmented. Customers also further segments its residential real estate portfolio into two classes based upon certain risk characteristics: first-mortgage loans and home equity loans and lines of credit. The remaining loan groups are also considered classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Additionally, within each loan group the acquired loans that are accounted for under ASC 310-10 are further segmented. The total allowance for loan losses consists of an allowance for impaired loans, a general allowance for losses and may also include residual non-specific reserve amounts. The allowance for loan losses is maintained at a level considered adequate to provide for losses that are estimated to have been incurred. Management performs a quarterly assessment of the adequacy of the allowance for loan losses, which is based on Customers' past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions, peer and industry data and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Customers' current methodology for determining the allowance for loan losses is based on historical loss rates, peer and industry data, current economic conditions, risk ratings, allowances on loans identified as impaired and other qualitative adjustments as considered appropriate. The impaired-loan component of the allowance for loan losses generally relates to loans for which it is probable that Customers will be unable to collect all amounts due according to the contractual terms of the loan agreements. Customers analyzes certain loans in its portfolio for impairment in accordance with ASC 310-10-35. Customers' impaired loans generally include loans that have been (i) placed on non-accrual, (ii) restructured in a troubled debt restructuring, regardless of their payment status and (iii) charged-off to their net realizable value. For such loans, an allowance is established when the (i) discounted cash flows, (ii) collateral value or (iii) the impaired loan estimated fair value is lower than the carrying value of the loan. The general component of the allowance for loan losses covers groups of loans by loan class, including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity loans, home equity lines of credit and other consumer loans. These pools of loans are evaluated for loss exposure based upon industry, peer or Customers' historical loss rates for each of these groups of loans. After determining the appropriate historical loss rate for each group of loans, management considers current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience. The overall effect of these factors is recorded as an adjustment that, as appropriate, increases or decreases the historical loss rate applied to the loan group. The qualitative factors that management generally considers include the following: • National, regional and local economic and business conditions, including review of changes in the unemployment rate; • Volume and severity of past-due loans, non-accrual loans and classified loans; • Lending policies and procedures, including underwriting standards and historically based loss/collection, charge-off and recovery practices; • Nature and volume of the portfolio; • Existence and effect of any credit concentrations and changes in the level of such concentrations; • Risk ratings; • Changes in the values of collateral for collateral dependent loans; • Changes in the quality of the loan review system; • Experience, ability and depth of lending management and staff; and • Other external factors, such as changes in the legal, regulatory or competitive environment. A residual reserve may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The residual reserve amount reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating credit losses in the portfolio. The discussion that follows describes Customers' underwriting policies for its primary lending activities and its credit monitoring and charge-off practices. Commercial and industrial loans are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay its obligation as agreed. Commercial and industrial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan facility. Accordingly, the repayment of a commercial and industrial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans rely on the value associated with the project upon completion. These cost and valuation amounts used are estimates and may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of the developed property. These loans are closely monitored by on-site inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest-rate sensitivity and governmental regulation of real property. Commercial real estate and multi-family loans are subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan, or the principal business conducted on the property securing the loan, to generate sufficient cash flows to service the debt. In addition, the underwriting considers the amount of the principal advanced relative to the property value. Commercial real estate and multi-family loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates commercial real estate and multi-family loans based on cash flow estimates, collateral valuation and risk-rating criteria. Customers also utilizes third-party experts to provide environmental and market valuations. Substantial effort is required to underwrite, monitor and evaluate commercial real estate and multi-family loans. Residential real estate loans are secured by one-to-four dwelling units. This group is further divided into first mortgage and home equity loans. First mortgages are originated at a loan to value ratio of 80% or less. Home equity loans have additional risks as a result of typically being in a second position or lower in the event collateral is liquidated. Manufactured housing loans are loans that are secured by the manufactured housing unit where the borrower may or may not own the underlying real estate and therefore have a higher risk than a residential real estate loan. Other consumer loans consist of loans to individuals originated through Customers' retail network and are typically secured by personal property or are unsecured. Consumer loans have a greater credit risk than residential loans because of the difference in the underlying collateral, if any. The application of various federal and state bankruptcy and insolvency laws may limit the amount that can be recovered on such loans. Delinquency status and other borrower characteristics are used to monitor loans and identify credit risks, and the general reserves are established based on the expected net charge-offs, adjusted for qualitative factors. Charge-offs on commercial and industrial, construction, multi-family and commercial real estate loans are recorded when management estimates that there are insufficient cash flows to repay the contractual loan obligation based upon financial information available and valuation of the underlying collateral. Shortfalls in the underlying collateral value for loans determined to be collateral dependent are charged-off immediately. Customers also takes into account the strength of any guarantees and the ability of the borrower to provide value related to those guarantees in determining the ultimate charge-off or allowance associated with an impaired loan. Accordingly, Customers may charge-off a loan to a value below the net appraised value if it believes that an expeditious liquidation is desirable under the circumstance, and it has legitimate offers or other indications of interest to support a value that is less than the net appraised value. Alternatively, Customers may carry a loan at a value that is in excess of the appraised value in certain circumstances, such as when Customers has a guarantee from a borrower that Customers believes has realizable value. In evaluating the strength of any guarantee, Customers evaluates the financial wherewithal of the guarantor, the guarantor’s reputation and the guarantor’s willingness and desire to work with Customers. Customers then conducts a review of the strength of a guarantee on a frequency established as the circumstances and conditions of the borrower warrant. Customers records charge-offs for residential real estate, consumer and manufactured housing loans after 120 days of delinquency or sooner when cash flows are determined to be insufficient for repayment. Customers may also charge-off these loans below the net appraised valuation if Customers holds a junior-mortgage position in a piece of collateral whereby the risk to acquiring control of the property through the purchase of the senior-mortgage position is deemed to potentially increase the risk of loss upon liquidation due to the amount of time to ultimately market the property and the volatile market conditions. In such cases, Customers may abandon its junior mortgage and charge-off the loan balance in full. Estimates of cash flows expected to be collected for purchased credit-impaired loans are updated each reporting period. If Customers estimates decreases in expected cash flows to be collected after acquisition, Customers charges the provision for loan losses and establishes an allowance for loan losses. Credit Quality Factors Commercial and industrial, multi-family, commercial real estate and construction loans are each assigned a numerical rating of risk based on an internal risk-rating system. The risk rating is assigned at loan origination and indicates management's estimate of credit quality. Risk ratings are reviewed on a periodic or “as needed” basis. Residential real estate, manufactured housing and other consumer loans are evaluated primarily based on payment activity of the loan. Risk ratings are not established for residential real estate, home equity loans, manufactured housing loans 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 on aggregate payment history (through the monitoring of delinquency levels and trends). For additional information about credit quality factor ratings refer to NOTE 9 – LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES. Impaired Loans A loan is generally considered impaired when, based on current information and events, it is probable that Customers will be unable to collect all amounts due according to the contractual terms of the loan agreement. Customers' impaired loans generally include loans that have been (i) placed on non-accrual, (ii) restructured in a troubled debt restructuring, regardless of their payment status and (iii) charged-off to their net realizable value. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is generally measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s original effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. The fair value of the collateral is measured based on the value of the collateral securing the loans, less estimated costs to liquidate the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of Customers' collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, third-party licensed appraiser using observable market data. The value of business equipment is based upon an outside appraisal if deemed significant or the net book value on the applicable business’ financial statements if not considered significant, using observable market data. Similarly, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the identifiable net assets of businesses acquired through business combinations accounted for under the acquisition method. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as customer and university relationships and non-compete agreements, are amortized over their estimated useful lives and are subject to impairment testing. Goodwill and other intangible assets recognized as part of the Disbursement business acquisition in June 2016 were based on a preliminary allocation of the purchase price. At December 31, 2016, Customers recorded adjustments to the estimated fair values of the net assets acquired in the Disbursement business acquisition, which resulted in a $1.0 million increase in goodwill. For more information regarding the net assets acquired and goodwill recorded upon acquisition of the Disbursement business, see NOTE 2 - ACQUISITION ACTIVITY. Goodwill and other intangible assets are reviewed for impairment annually as of October 31 and between annual tests when events and circumstances indicate that impairment may have occurred. As described below, Customers early adopted Accounting Standards Update 2017-04, Simplifying the Test for Goodwill Impairment, during its annual goodwill impairment review in October 2017. The new rules provide that the goodwill impairment charge will be the amount by which the reporting unit's carrying amount exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The same one-step impairment test is applied to goodwill at all reporting units. Customers applies a qualitative assessment for its reporting units to determine if the one-step quantitative impairment test is necessary. Intangible assets subject to amortization are reviewed for impairment under ASC 360 which requires that a long-lived asset or asset group be tested for recoverability whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. As part of its qualitative assessment, Customers reviewed regional and national trends in current and expected economic conditions, examining indicators such as GDP growth, interest rates and unemployment rates. Customers also considered its own historical performance, expectations of future performance and other trends specific to the banking industry as well as an initial valuation of the BankMobile business performed by an independent third party. Based on its qualitative assessment, Customers determined that there was no evidence of impairment on the balance of goodwill and other intangible assets. |
FHLB, Federal Reserve Bank, and other restricted stock | FHLB, Federal Reserve Bank and other restricted stock FHLB, Federal Reserve Bank and other restricted stock represents required investment in the capital stock of the Federal Home Loan Bank (“FHLB”), the Federal Reserve Bank and Atlantic Community Bankers Bank and is carried at cost. |
Other Real Estate Owned | Other Real Estate Owned Real estate properties acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less estimated costs to sell at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by third-party appraisers, and the real estate is carried at the lower of its carrying amount or fair value less estimated costs to sell. Any declines in the fair value of the real estate properties below the initial cost basis are recorded through a valuation allowance. Increases in the fair value of the real estate properties net of estimated selling costs will reverse the valuation allowance but only up to the costs basis which was established at the initial measurement date. Revenue and expenses from operations and changes in the valuation allowance are included in earnings. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance policies insure the lives of officers of Customers and name Customers as beneficiary. Non-interest income is generated tax free (subject to certain limitations) from the increase in value of the policies’ underlying investments made by the insurance company. Cash proceeds received from the settlement of the bank-owned life insurance policies are tax-free and can be used to partially offset costs associated with employee compensation and benefit programs. |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the term of the lease or estimated useful life, unless extension of the lease term is reasonably assured. |
Operating Leases | Operating Leases Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges. The depreciation expense of the leased assets is recognized on a straight-line basis over the contractual term of the leases up to their expected residual value. The expected residual value and, accordingly, the monthly depreciation expense, may change throughout the term of the lease. Operating lease rental income for leased assets is recognized in other non-interest income on a straight-line basis over the lease term. Customers periodically reviews its leased assets for impairment. An impairment loss is recognized if the carrying amount of the leased asset exceeds its fair value and is not recoverable. The carrying amount of leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the equipment. During 2017, Customers leased various types of equipment to customers within its commercial and industrial loan portfolio. The net carrying value of the leased assets was $21.7 million , which included accumulated depreciation of $0.5 million , as of December 31, 2017, and is presented in other assets in Customers’ consolidated balance sheets. As of December 31, 2017, the leases have a weighted-average term of 5.4 years. Customers had not entered into similar operating lease arrangements in prior years. |
Treasury Stock | Treasury Stock Common stock purchased for treasury is recorded at cost. |
Income Taxes | Income Taxes Customers accounts for income taxes under the liability method of accounting for income taxes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Customers determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. A tax position is recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent ; the term upon examination includes resolution of the related appeals or litigation process. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. In assessing the realizability of federal or state deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible as well as available tax planning strategies, management believes it is more likely than not that Customers will realize the benefits of these deferred tax assets. |
Share-Based Compensation | Share-Based Compensation Customers has four active share-based compensation plans. Share-based-compensation accounting guidance requires that the compensation cost relating to share-based-payment transactions be recognized in earnings. The cost is measured based on the grant-date fair value of the equity instruments issued. The Black-Scholes model is used to estimate the fair value of stock options, while the closing market price of Customers’ common stock on the date of grant is generally used for restricted stock awards. Compensation cost for all share-based awards is calculated and recognized over the team member's service period, generally defined as the vesting period. For performance-based awards, compensation cost is recognized over the vesting period as long as it remains probable that the performance conditions will be met. If the service or performance conditions are not met, Customers reverses previously recorded compensation expense upon forfeiture. Customers' accounting policy election is to recognize forfeitures as they occur. In 2014, the shareholders of Customers Bancorp approved an employee stock purchase plan. Because the purchase price under the plan is 85% (a 15% discount to the market price) of the fair market value of a share of common stock on the first day of each quarterly subscription period, the plan is considered to be a compensatory plan under current accounting guidance. Therefore, the entire amount of the discount is recognizable compensation expense. |
Segment Information | Segment Information In connection with the acquisition of the Disbursement business from Higher One and the combination of that business with the BankMobile technology platform late in second quarter 2016, Customers' chief operating decision makers, our Chief Executive Officer and the Board of Directors, began allocating resources and assessing performance for two distinct business segments, "Community Business Banking" and "BankMobile." The Community Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island and New Hampshire through a single point of contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. 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 bank that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Prior to third quarter 2016, Customers operated in one business segment, “Community Banking.” Additional information regarding reportable segments can be found in NOTE 24 - BUSINESS SEGMENTS. |
Derivative Instruments and Hedging | Derivative Instruments and Hedging ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (i) how and why an entity uses derivative instruments, (ii) how the entity accounts for derivative instruments and the related hedged items and (c) how derivative instruments and the related hedged items affect an entity’s financial position, financial performance and cash flows. Further, qualitative disclosures are required that explain the objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, Customers records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether Customers has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as hedges of the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest-rate risk, are considered fair value hedges. Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. Customers may enter into derivative contracts that are intended to economically hedge certain of its risks; even though hedge accounting does not apply, or Customers elects not to apply hedge accounting. Prior to first quarter 2014, none of Customers' financial derivatives were designated in qualifying hedge relationships in accordance with the applicable accounting guidance. As such, all changes in fair value of the financial derivatives were recognized directly in earnings. Beginning in March 2014, Customers entered into pay-fixed interest-rate swaps to hedge the variable cash flows associated with the forecasted issuance of debt. Customers documented and designated these interest-rate swaps as cash flow hedges. The effective portion of changes in the fair value of financial derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the financial derivatives is recognized directly in earnings. Amounts reported in accumulated other comprehensive income related to financial derivatives will be reclassified to interest expense as interest payments are made on Customers' variable-rate debt. As of December 31, 2017 , Customers had nine financial derivatives designated in qualifying cash flow hedge relationships with a notional aggregate balance of $550.0 million . As of December 31, 2016, Customers had four financial derivatives designated in qualifying cash flow hedge relationships with a notional aggregate balance of $325.0 million . 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 were not designated in hedge relationships for accounting purposes and are being recorded at their fair value, with fair value changes recorded directly in earnings. At December 31, 2017 and 2016, Customers had an outstanding notional balance of credit derivatives of $80.5 million and $44.9 million , respectively. In accordance with the FASB’s fair value measurement guidance, Customers made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. 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 values 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. |
Comprehensive Income | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes changes in unrealized gains and losses on securities available for sale arising during the period and reclassification adjustments for realized gains and losses on securities available for sale included in net income. Unrealized gains and losses on securities available for sale include a component for unrealized changes in foreign currency exchange rates relating to Customers’ investment in certain foreign equity securities. Other comprehensive income (loss) also includes the effective portion of changes in fair value of financial derivatives designated and qualifying as cash flow hedges. Cash flow hedge amounts classified as comprehensive income are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. |
Earnings per Share | Earnings per Share Basic earnings per share represents net income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share includes all potentially dilutive common shares outstanding during the period. Potential common shares that may be issued related to outstanding stock options, restricted stock units and warrants are determined using the treasury stock method. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the consolidated financial statements that are not currently accrued for |
Recently Issued Accounting Standards and Updates | Recently Issued Accounting Standards and Updates Accounting Standards Adopted in 2017 Since January 1, 2017, Customers has adopted the following FASB Accounting Standard Updates (“ASUs”), none of which had a material impact to Customers’ consolidated financial statements: • Customers adopted ASU 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, on a prospective basis. This ASU clarifies that a change in the counterparties to a derivative contract (i.e., a novation), in and of itself, does not require the dedesignation of a hedging relationship provided that all the other hedge accounting criteria continue to be met. • Customers also adopted ASU 2016-06, Contingent Put and Call Options in Debt Instruments . This ASU clarifies that a contingency of put or call exercise does not need to be evaluated to determine whether it relates to interest rates and credit risk in an embedded derivative analysis of hybrid financial instruments. In other words, a contingent put or call option embedded in a debt instrument would be evaluated for possible separate accounting as a derivative instrument without regard to the nature of the exercise contingency. However, as required under the existing accounting guidance, companies will still need to evaluate the other relevant embedded derivative guidance, such as whether the payoff from the contingent put or call option is adjusted based on changes in an index other than interest rates or credit risk, and whether the debt involves a substantial premium or discount. The adoption did not result in any significant impact to Customers’ consolidated financial statements that would warrant the application on a modified retrospective basis. • Customers also adopted ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting, on a prospective basis. This ASU eliminates the requirement for the retrospective use of the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence of an investor. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for the equity method of accounting. • Customers also adopted ASU 2016-17, Consolidation - Interests Held Through Related Parties that are Under Common Control . This ASU amends the guidance included in ASU 2015-02, Consolidation: Amendments to Consolidation Analysis which Customers adopted in first quarter 2016. This ASU makes a narrow amendment that requires that a single decision maker considers indirect economic interests in an entity held through related parties that are under common control on a proportionate basis when determining whether it is the primary beneficiary of that variable interest entity ("VIE"). Prior to this amendment, indirect interests held through related parties that are under common control were to be considered equivalent of the single decision maker’s direct interests in their entirety which could result in a single decision maker consolidating the VIE. The adoption did not result in any significant impact to Customers’ consolidated financial statements that would warrant the application on a full retrospective basis. • In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test that requires an entity to determine the implied fair value of its goodwill through a hypothetical purchase price allocation. Instead, under this ASU, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. All other goodwill impairment guidance remains largely unchanged. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will also be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Customers early adopted this ASU during its annual goodwill impairment test in October 2017, which did not have a material impact to Customers’ consolidated financial statements. Accounting Standards Adopted on January 1, 2018 Customers has adopted the following FASB ASUs on January 1, 2018, none of which had a material impact to Customers' consolidated financial statements: • In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act described in the "Income Taxes" section above. The amount of the reclassification should include the effect of the change in the federal corporate income tax rate related to items remaining in accumulated other comprehensive income (loss). The ASU would require an entity to disclose whether it elects to reclassify stranded tax effects from accumulated other comprehensive income (loss) to retained earnings in the period of adoption and, more generally, a description of the accounting policy for releasing income tax effects from accumulated other comprehensive income (loss). The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption of the amendments in this update is permitted for periods for which financial statements have not yet been issued or made available for issuance, including in the period the Act was enacted. As of December 31, 2017, Customers has $0.3 million in stranded tax effects in its accumulated other comprehensive income resulting from the enactment of the Act related to net unrealized losses on its available-for-sale securities and cash flow hedges. Customers adopted this ASU on January 1, 2018, by recording the reclassification adjustment to its beginning retained earnings. The adoption of this ASU did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. • In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which 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. The ASU 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 as the hedged item. The ASU also changes certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. This ASU is effective for public business entities for fiscal years beginning after December 15, 2018, with early adoption permitted. Customers early adopted this ASU 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. However, by early adopting, Customers is now able to pursue additional hedging strategies as described above, 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. This will allow Customers to better align its accounting and the financial reporting of its hedging activities with their economic objectives thereby reducing the earnings volatility resulting from these hedging activities. • In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation: Scope of Modification `Accounting , which clarifies when to account for a change to the terms or conditions of a share-based-payment award as a modification in ASC 718. Under this ASU, modification accounting is required only 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. This ASU does not change the accounting for modifications under ASC 718. The ASU was effective for Customers on January 1, 2018. Adoption of this new guidance must be applied prospectively to awards modified on or after the adoption date. Customers generally does not modify the terms or conditions of its share-based-payment awards. The adoption of this ASU did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. • In February 2017, the FASB issued ASU 2017-05, Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope and application of the accounting guidance on the sale of nonfinancial assets to non-customers, including partial sales. This ASU defines an in-substance nonfinancial asset, in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. 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. This ASU also unifies the guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing the sales of real estate, removes exceptions to the financial asset derecognition model and clarifies the accounting for contributions of nonfinancial assets to joint ventures. This ASU was effective for Customers 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. • In January 2017, the FASB issued ASU 2017-01, Clarifying the Definition of a Business , which 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. In addition, 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. Also, the amendments narrow the definition of the term “output” so that it is consistent with how outputs are defined in ASC Topic 606, Revenue from Contracts with Customers . This ASU was effective for Customers on January 1, 2018. Adoption of this new guidance must be applied on a prospective basis. The adoption of this ASU did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. • In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash , which requires that the statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU was effective for Customers on January 1, 2018. As the adoption did not result in any significant impact to Customers’ consolidated financial statements, including its consolidated statement of cash flows, it did not result in a retrospective application. See NOTE 2 - ACQUISITION ACTIVITY and NOTE 3 - SPIN-OFF AND MERGER for a description of the nature of the restrictions on the Customers' restricted cash balances. • In October 2016, the FASB issued ASU 2016-16- Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory , which requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This 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. This ASU was effective for Customers 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. • In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which aims to reduce the existing diversity in practice with regards to the following specific items in the statement of cash flows: 1. Cash payments for debt prepayment or extinguishment costs will be classified in financing activities. Upon settlement of zero-coupon bonds and bonds with insignificant cash coupons, the portion of the payment attributable to imputed interest 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 (i.e., approximately three months or less) for the settlement of a contingent consideration liability will be classified in investing activities. Payments made thereafter should be separated between financing activities and operating activities. Cash payments up to the amount of the contingent consideration liability recognized at the acquisition date will be classified in financing activities; any excess will be classified in operating 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). Cash proceeds from lump-sum settlements will be classified based on the nature of each loss component included in the settlement. 4. Cash proceeds received from the settlement of bank-owned life insurance policies will be classified as cash inflows from investing activities. Cash payments for premiums on BOLI may be classified as cash outflows for investing, operating or a combination of both. 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. Distributions received from equity method investees will be classified using a cumulative-earnings approach or a look-through approach as an accounting policy election. The ASU contains additional guidance clarifying when an entity should separate cash receipts and cash payments and classify them into more than one class of cash flows (including when reasonable judgment is required to estimate and allocate cash flows) versus when an entity should classify the aggregate amount into one class of cash flows on the basis of predominance. This ASU was effective for Customers on January 1, 2018. As the adoption did not result in any significant impact to Customers’ consolidated financial statements, including its consolidated statement of cash flows, it did not result in a retrospective application. • In March 2016, the FASB issued ASU 2016-04, Liabilities - Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products , that would require issuers of prepaid stored-value product (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. There is currently a diversity in the methodology used to recognize breakage. Subtopic 405-20, Extinguishment of Liabilities , includes derecognition guidance for both financial liabilities and nonfinancial liabilities, and Topic 606, Revenue from Contracts with Customers , includes authoritative breakage guidance but excludes financial liabilities. 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. This ASU was effective for Customers 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. • In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The guidance in this ASU among other things, (i) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) 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, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) 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, (vi) 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 and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance was effective for Customers on January 1, 2018 and was adopted using a modified retrospective approach. The adoption of this ASU 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 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 7 - INVESTMENT SECURITIES. • In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , superseding the revenue recognition requirements in ASC 605. This ASU 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. In March 2016, the FASB also issued ASU 2016-08, an amendment to the guidance in ASU 2014-09, which 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. ASU 2016-08 also eliminated two of the indicators (the entity’s consideration is in the form of a commission, and the entity is not exposed to credit risk) in making that determination. This amendment also clarifies that each indicator may be more or less relevant to the assessment depending on the terms and conditions of the contract. In May 2016, the FASB issued ASU 2016-12, an amendment to ASU 2014-09, which provided practical expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on transition, collectability, non-cash consideration and presentation of sales and other similar taxes. The amendments, collectively, should be applied retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption (modified retrospective approach). 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). This ASU was effective for Customers on January 1, 2018. Customers completed its identification of all revenue streams included in its financial statements and 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 to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). After completion of its review, Customers has determined that its debit and prepaid card interchange income, currently reported on a gross basis, will need to be presented on a net basis under this ASU. Customers will implement this change in its 2018 financial reporting and will update its prior comparative consolidated income statements. The impact of this presentation will result in the netting of $3.6 million and $1.3 million of debit and prepaid card interchange expense to debit and prepaid card interchange income for the years ended December 31, 2017 and 2016, respectively. Customers' overall assessment indicates that adoption of this ASU will not materially change its current method and timing of recognizing revenue for the identified revenue streams. Customers, however, is still in the process of developing additional quantitative and qualitative disclosures that are required upon the adoption of the new revenue recognition standard. Customers adopted this ASU on January 1, 2018, on a modified retrospective approach. The adoption of this ASU, as discussed above, did not have a significant impact to Customers' financial condition, results of operations and consolidated financial statements. Accounting Standards Issued But Not Yet Adopted |
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. FASB 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. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC 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 (i.e., 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 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 Financing Receivable | Impaired loans: Impaired loans are those that are accounted for under ASC 310, Receivables , for which Customers 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 classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. |
Acquisition Activity - (Tables)
Acquisition Activity - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | (amounts in thousands) Fair value of assets acquired: Developed software $ 27,400 Other intangible assets 9,300 Accounts receivable 2,784 Prepaid expenses 418 Fixed assets, net 229 Total assets acquired 40,131 Fair value of liabilities assumed: Other liabilities 5,735 Deferred revenue 2,655 Total liabilities assumed 8,390 Net assets acquired $ 31,741 Transaction cash consideration (1) $ 37,000 Goodwill recognized $ 5,259 (1) Includes $10 million payable to Higher One upon each of the first and second anniversary of the transaction closing, which has been placed into an escrow account with a third party (aggregate amount of $20 million ). |
Tax-Free Spin-Off and Merger (T
Tax-Free Spin-Off and Merger (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Income Statement and Balance Sheet Discontinued Operations | The following table summarizes the effects of the reclassification of BankMobile's assets and liabilities from held for sale to held and used on the previously reported consolidated balance sheet as of December 31, 2016: December 31, 2016 As Previously Reported Effect of Reclassification From Held For Sale to Held and Used December 31, 2016 After Reclassification (amounts in thousands) ASSETS Cash and cash equivalents $ 244,709 $ 20,000 $ 264,709 Loans receivable 6,142,390 12,247 6,154,637 Bank premises and equipment, net 12,259 510 12,769 Goodwill and other intangibles 3,639 13,982 17,621 Assets held for sale 79,271 (79,271 ) — Other assets 70,099 32,532 102,631 LIABILITIES Demand, non-interest bearing deposits $ 512,664 $ 453,394 $ 966,058 Interest-bearing deposits 6,334,316 3,401 6,337,717 Non-interest bearing deposits held for sale 453,394 (453,394 ) — Other liabilities held for sale 31,403 (31,403 ) — Accrued interest payable and other liabilities 47,381 28,002 75,383 The following table summarizes the effects of the reclassification of BankMobile's operating results from discontinued operations to continuing operations for the year ended December 31, 2016: Year Ended December 31, 2016 As Previously Reported Effect of Reclassification From Discontinued Operations Year Ended December 31, 2016 After Reclassification (amounts in thousands) Interest income $ 322,539 $ — $ 322,539 Interest expense 73,023 19 73,042 Net interest income 249,516 (19 ) 249,497 Provision for loan losses 2,345 696 3,041 Non-interest income 23,165 33,205 56,370 Non-interest expenses 131,217 47,014 178,231 Income from continuing operations before income taxes 139,119 (14,524 ) 124,595 Provision for income taxes 51,412 (5,519 ) 45,893 Net income from continuing operations 87,707 (9,005 ) 78,702 Loss from discontinued operations before income taxes (14,524 ) 14,524 — Income tax benefit from discontinued operations (5,519 ) 5,519 — Net loss from discontinued operations (9,005 ) 9,005 — Net income 78,702 — 78,702 Preferred stock dividend 9,515 — 9,515 Net income available to common shareholders $ 69,187 $ — $ 69,187 The following table summarizes the effects of the reclassification of BankMobile's operating results from discontinued operations to continuing operations for the year ended December 31, 2015: Year Ended December 31, 2015 As Previously Reported Effect of Reclassification From Discontinued Operations Year Ended December 31, 2015 After Reclassification (amounts in thousands) Interest income $ 249,850 $ — $ 249,850 Interest expense 53,551 9 53,560 Net interest income 196,299 (9 ) 196,290 Provision for loan losses 20,566 — 20,566 Non-interest income 27,572 145 27,717 Non-interest expenses 107,568 7,378 114,946 Income from continuing operations before income taxes 95,737 (7,242 ) 88,495 Provision for income taxes 32,664 (2,752 ) 29,912 Net income from continuing operations 63,073 (4,490 ) 58,583 Loss from discontinued operations before income taxes (7,242 ) 7,242 — Income tax benefit from discontinued operations (2,752 ) 2,752 — Net loss from discontinued operations (4,490 ) 4,490 — Net income 58,583 — 58,583 Preferred stock dividend 2,493 — 2,493 Net income available to common shareholders $ 56,090 $ — $ 56,090 |
Significant Accounting Polici_3
Significant Accounting Policies and Basis of Presentation Tables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | In November 2018, Customers determined that the cash flow activities associated with its commercial mortgage warehouse lending activities should have been reported as investing activities in its consolidated statements of cash flows because the related loan balances should have been classified as held for investment (i.e., loans receivable). Customers changed its accounting policies such that commercial mortgage warehouse loans will be classified as held for investment and presented as "Loans receivable, mortgage warehouse, at fair value" on its consolidated balance sheets. The cash flow activities associated with these commercial mortgage warehouse lending activities will be reported as investing activities in the consolidated statements of cash flows. Accordingly, Customers has restated the consolidated balance sheets and statements of cash flows as of December 31, 2017 and 2016 and for the three year period ending December 31, 2017 herein. The following tables set forth the effects of the correction on the consolidated balance sheet as of December 31, 2017 and 2016, and the consolidated statements of cash flows for the years ended December 2017, 2016, and 2015. December 31, 2017 2016 Consolidated Balance Sheet As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated (amounts in thousands) Loans held for sale $ 1,939,485 $ (1,793,408 ) $ 146,077 $ 2,117,510 $ (2,116,815 ) $ 695 Loans receivable, mortgage warehouse, at fair value — 1,793,408 1,793,408 — 2,116,815 2,116,815 Total loans receivable, net of allowance for loan losses 6,730,243 1,793,408 8,523,651 6,117,322 2,116,815 8,234,137 For the Years Ended December 31, 2017 2016 2015 Consolidated Statements of Cash Flows As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated As Previously Reported Adjustments As Restated (amounts in thousands) Origination of loans held for sale $ (30,125,427 ) $ 30,084,255 $ (41,172 ) $ (36,130,924 ) $ 36,091,174 $ (39,750 ) $ (29,925,763 ) $ 29,886,506 $ (39,257 ) Proceeds from the sale of loans held for sale 30,448,318 (30,407,662 ) 40,656 35,772,081 (35,729,309 ) 42,772 29,504,104 (29,463,289 ) 40,815 Net Cash Provided by (Used in) Operating Activities 385,600 (323,407 ) 62,193 (270,462 ) 361,865 91,403 (356,648 ) 423,217 66,569 Origination of mortgage warehouse loans — (30,084,255 ) (30,084,255 ) — (36,091,174 ) (36,091,174 ) — (29,886,506 ) (29,886,506 ) Proceeds from repayments of mortgage warehouse loans — 30,407,662 30,407,662 — 35,729,309 35,729,309 — 29,463,289 29,463,289 Net Cash Used in Investing Activities (888,532 ) 323,407 (565,125 ) (599,669 ) (361,865 ) (961,534 ) (1,258,226 ) (423,217 ) (1,681,443 ) In addition to the restatement of Customers' consolidated balance sheets and statements of cash flows summarized above, the following notes to the consolidated financial statements have been restated to reflect the corrected classification of Customers' commercial mortgage warehouse lending activities: • NOTE 8 - LOANS HELD FOR SALE; • NOTE 9 - LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES; and • NOTE 20 - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The following are the components and results of the Bancorp’s earnings per share ("EPS") calculation for the periods presented. For the Years Ended December 31, 2017 2016 2015 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 64,378 $ 69,187 $ 56,090 Weighted-average number of common shares outstanding – basic 30,659,320 27,596,020 26,844,545 Share-based compensation plans 1,917,451 2,221,517 1,516,297 Warrants 19,906 196,113 324,097 Weighted-average number of common shares – diluted 32,596,677 30,013,650 28,684,939 Basic earnings per common share $ 2.10 $ 2.51 $ 2.09 Diluted earnings per common share 1.97 2.31 1.96 |
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following is a summary of securities that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS because to do so would have been anti-dilutive for the periods presented. For the Years Ended December 31, 2017 2016 2015 Anti-dilutive securities: Share-based compensation plans 1,059,225 894,720 606,095 Warrants — 52,242 52,242 Total anti-dilutive securities 1,059,225 946,962 658,337 |
Changes In Accumulated Other _2
Changes In Accumulated Other Comprehensive Income (Loss) By Component (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2017 and 2016 . All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. Available-for-Sale Securities Total Unrealized Unrealized Foreign Unrealized Gains (Losses) Gains Currency Gains on Cash Flow (amounts in thousands) (Losses) (1) Items (Losses) Hedges Total Balance, December 31, 20 15 $ (4,602 ) $ (584 ) $ (5,186 ) $ (2,798 ) $ (7,984 ) Current period: Other comprehensive loss before reclassifications (1,872 ) (146 ) (2,018 ) (629 ) (2,647 ) Amounts reclassified from accumulated other comprehensive income to net income (1) 3,793 730 4,523 1,216 5,739 Net current-period other comprehensive income 1,921 584 2,505 587 3,092 Balance, December 31, 2016 (2,681 ) — (2,681 ) (2,211 ) (4,892 ) Current period: Other comprehensive income before reclassifications 7,800 88 7,888 406 8,294 Amounts reclassified from accumulated other comprehensive income to net income (1) (5,368 ) — (5,368 ) 1,607 (3,761 ) Net current-period other comprehensive income 2,432 88 2,520 2,013 4,533 Balance, December 31, 2017 $ (249 ) $ 88 $ (161 ) $ (198 ) $ (359 ) (1) Reclassification amounts for available-for-sale securities are reported as gain or loss on sale of investment securities or impairment loss on investment securities on the consolidated statements of income. During the years ended December 31, 2017 and 2016, reclassification amounts of $8.8 million ( $5.4 million net of taxes) and $25 thousand ( $16 thousand net of taxes), respectively, were reported as gain on sale of investment securities on the consolidated statements of income. During the year ended December 31, 2016, reclassification amounts of $7.3 million ( $4.5 million net of taxes) were reported as impairment loss on investment securities on the consolidated statements of income. Impairment losses recorded during the year ended December 31, 2017, were not previously deferred in accumulated comprehensive income (loss) because Customers decided to sell the securities as of December 31, 2016. 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) | 12 Months Ended |
Dec. 31, 2017 | |
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 December 31, 2017 and 2016 , are summarized as follows: 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 $ 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. December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale Agency-guaranteed residential mortgage-backed securities $ 233,002 $ 918 $ (2,657 ) $ 231,263 Agency-guaranteed commercial real estate mortgage-backed securities 204,689 — (2,872 ) 201,817 Corporate notes (1) 44,932 401 (185 ) 45,148 Equity securities (2) 15,246 — — 15,246 Total $ 497,869 $ 1,319 $ (5,714 ) $ 493,474 (1) Includes subordinated debt issued by other bank holding companies. (2) Includes equity securities issued by a foreign entity. |
Statement of Proceeds from Sale of Available for Sale Investment Securities | The following table shows proceeds from the sale of available-for-sale investment securities, gross gains and gross losses on those sales of securities: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Proceeds from sale of available-for-sale investment securities $ 769,203 $ 2,852 $ 806 Gross gains $ 8,808 $ 26 $ — Gross losses (8 ) (1 ) (85 ) Net gains (losses) $ 8,800 $ 25 $ (85 ) |
Summary of Investment 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 are, therefore, classified separately with no specific maturity date: December 31, 2017 Available for Sale 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 42,959 44,005 Due after ten years 2,000 2,084 Agency-guaranteed residential mortgage-backed securities 186,221 183,458 Agency-guaranteed commercial mortgage-backed securities 238,809 238,472 Total debt securities $ 469,989 $ 468,019 |
Gross Unrealized Losses and Fair Value, Aggregated by Investment Category | Gross unrealized losses and fair value of Customers' investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: 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 Agency-guaranteed residential mortgage-backed securities $ 104,861 $ (656 ) $ 66,579 $ (2,143 ) $ 171,440 $ (2,799 ) Agency-guaranteed commercial 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 ) December 31, 2016 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 Agency-guaranteed residential mortgage-backed securities $ 87,433 $ (1,330 ) $ 30,592 $ (1,327 ) $ 118,025 $ (2,657 ) Agency-guaranteed commercial mortgage-backed securities 201,817 (2,872 ) — — 201,817 (2,872 ) Corporate notes (1) 9,747 (185 ) — — 9,747 (185 ) Total $ 298,997 $ (4,387 ) $ 30,592 $ (1,327 ) $ 329,589 $ (5,714 ) (1) Includes subordinated debt issued by other bank holding companies. |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables Held-for-sale [Abstract] | |
Composition of Loans Held for Sale | The composition of loans held for sale as of December 31, 2017 and 2016 , was as follows: December 31, 2017 2016 (amounts in thousands) (As Restated) (As Restated) Commercial loans: Multi-family loans, at lower of cost or fair value $ 144,191 $ — Total commercial loans held for sale 144,191 — Consumer loans: Residential mortgage loans, at fair value 1,886 695 Loans held for sale $ 146,077 $ 695 |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | The following table presents loans receivable as of December 31, 2017 and 2016 : December 31, 2017 2016 (amounts in thousands) (As Restated) (As Restated) Loans receivable, mortgage warehouse, at fair value $ 1,793,408 $ 2,116,815 Loans receivable: Commercial: Multi-family 3,502,381 3,214,999 Commercial and industrial (includes owner occupied commercial real estate) 1,633,818 1,382,343 Commercial real estate non-owner occupied 1,218,719 1,193,715 Construction 85,393 64,789 Total commercial loans receivable 6,440,311 5,855,846 Consumer: Residential real estate 234,090 193,502 Manufactured housing 90,227 101,730 Other 3,547 3,483 Total consumer loans receivable 327,864 298,715 Loans receivable 6,768,175 6,154,561 Deferred costs and unamortized premiums, net 83 76 Allowance for loan losses (38,015 ) (37,315 ) Total loans receivable, net of allowance for loan losses $ 8,523,651 $ 8,234,137 |
Loans Receivable by Class and Performance Status | The following tables summarize loans receivable by loan type and performance status as of December 31, 2017 and 2016 : December 31, 2017 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (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 December 31, 2016 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ 12,573 $ — $ 12,573 $ — $ 3,200,322 $ 2,104 $ 3,214,999 Commercial and industrial 350 — 350 8,443 978,881 1,037 988,711 Commercial real estate - owner occupied 137 — 137 2,039 379,227 12,229 393,632 Commercial real estate - non-owner occupied — — — 2,057 1,185,331 6,327 1,193,715 Construction — — — — 64,789 — 64,789 Residential real estate 4,417 — 4,417 2,959 178,559 7,567 193,502 Manufactured housing (5) 3,761 2,813 6,574 2,236 89,850 3,070 101,730 Other consumer 12 — 12 58 3,177 236 3,483 Total $ 21,250 $ 2,813 $ 24,063 $ 17,792 $ 6,080,136 $ 32,570 $ 6,154,561 (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 Customers 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 unaccreted discounts and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at Customers 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 years ended December 31, 2017 and 2016 , and the loans and allowance for loan losses by loan type based on impairment-evaluation method are presented in the tables below. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans for periods prior to the termination of the FDIC loss sharing arrangements. Twelve Months Ended December 31, 2017 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Allowance for loan losses Ending Balance, December 31, 2016 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Charge-offs — (4,157 ) (731 ) (486 ) — (415 ) — (1,338 ) (7,127 ) Recoveries — 676 9 — 164 72 — 138 1,059 Provision for loan losses 566 3,349 1,771 29 (25 ) (70 ) (106 ) 1,254 6,768 Ending Balance, December 31, 2017 $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 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 Twelve Months Ended December 31, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Allowance for loan losses Ending Balance, December 31, 2015 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Charge-offs — (2,920 ) (27 ) (140 ) — (493 ) — (825 ) (4,405 ) Recoveries — 381 — 130 1,854 367 — 11 2,743 Provision for loan losses (414 ) 4,725 862 (516 ) (2,088 ) 170 (208 ) 799 3,330 Ending Balance, December 31, 2016 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Loans Individually evaluated for impairment $ — $ 8,516 $ 2,050 $ 2,151 $ — $ 6,972 $ 9,665 $ 57 $ 29,411 Collectively evaluated for impairment 3,212,895 979,158 379,353 1,185,237 64,789 178,963 88,995 3,190 6,092,580 Loans acquired with credit deterioration 2,104 1,037 12,229 6,327 — 7,567 3,070 236 32,570 $ 3,214,999 $ 988,711 $ 393,632 $ 1,193,715 $ 64,789 $ 193,502 $ 101,730 $ 3,483 $ 6,154,561 Allowance for loan losses Individually evaluated for impairment $ — $ 1,024 $ 287 $ 14 $ — $ 35 $ — $ — $ 1,360 Collectively evaluated for impairment 11,602 9,686 1,896 4,626 772 2,414 88 60 31,144 Loans acquired with credit deterioration — 340 — 3,254 68 893 198 58 4,811 $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 |
Summary of Impaired Loans | Purchased credit-impaired loans are considered to be performing and are not included in the tables below. December 31, 2017 Twelve Months Ended December 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 $ — $ 8,865 $ 214 Commercial real estate - owner occupied 806 806 — 1,439 70 Commercial real estate - non-owner occupied 160 272 — 898 2 Other consumer 30 30 — 51 — Residential real estate 3,628 3,801 — 4,617 24 Manufactured housing 9,865 9,865 — 10,003 558 With an allowance recorded Commercial and industrial 8,323 8,506 650 5,984 230 Commercial real estate - owner occupied 642 642 642 882 — Residential real estate 5,619 5,656 155 3,307 187 Manufactured housing 224 224 4 131 8 Total $ 38,435 $ 39,089 $ 1,451 $ 36,177 $ 1,293 December 31, 2016 Twelve Months Ended December 31, 2016 Twelve Months Ended December 31, 2015 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (amounts in thousands) With no recorded allowance Multi-family $ — $ — $ — $ 964 $ 53 $ 267 $ 24 Commercial and industrial 2,396 3,430 — 15,424 804 8,543 891 Commercial real estate - owner occupied 1,210 1,210 — 7,963 426 6,526 454 Commercial real estate - non-owner occupied 2,002 2,114 5,265 155 6,605 648 Construction — — — — — 749 — Other consumer 57 57 — 47 — 42 1 Residential real estate 6,682 6,749 — 4,567 120 2,254 86 Manufactured housing 9,665 9,665 — 8,961 465 5,433 368 With an allowance recorded Multi-family — — — 232 — — — Commercial and industrial 6,120 6,120 1,024 7,028 436 9,331 191 Commercial real estate - owner occupied 840 840 287 173 — 15 1 Commercial real estate - non-owner occupied 149 204 14 380 — 817 12 Other consumer — — — 29 — 83 — Residential real estate 290 303 35 395 — 426 2 Total $ 29,411 $ 30,692 $ 1,360 $ 51,428 $ 2,459 $ 41,091 $ 2,678 |
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 years ended December 31, 2017 , 2016 and 2015. There were no modifications that involved forgiveness of debt. For the Years Ended December 31, 2017 2016 2015 Number Recorded Number Recorded Number Recorded (dollars in thousands) Extensions of maturity 5 $ 6,497 3 $ 1,995 1 $ 183 Interest-rate reductions 35 1,574 61 4,621 161 7,274 Total 40 $ 8,071 64 $ 6,616 162 $ 7,457 |
Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments | The following table presents total TDRs based on loan type and accrual status at December 31, 2017, 2016, and 2015. Nonaccrual TDRs are included in the reported amount of total non-accrual loans. December 31, 2017 2016 2015 Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total (amounts in thousands) Commercial and industrial $ 63 $ 5,939 $ 6,002 $ 73 $ 146 $ 219 $ 27 $ 518 $ 545 Commercial real estate owner occupied — — — 12 — 12 — — — Commercial real estate non-owner occupied — — — — 1,945 1,945 — 204 204 Manufactured housing 8,130 1,766 9,896 7,429 2,072 9,501 5,911 2,389 8,300 Residential real estate 3,828 703 4,531 4,012 707 4,719 2,332 61 2,393 Total TDRs $ 12,021 $ 8,408 $ 20,429 $ 11,526 $ 4,870 $ 16,396 $ 8,270 $ 3,172 $ 11,442 The following table provides, by loan type, the number of loans modified in troubled debt restructurings and the related recorded investment for the years ended December 31, 2017, 2016 and 2015. For the Years Ended December 31, 2017 2016 2015 Number of Loans Recorded Investment Number of Loans Recorded Investment Number Recorded (dollars in thousands) Commercial and industrial 4 $ 6,437 1 $ 76 3 $ 791 Commercial real estate non-owner occupied — — 1 1,844 1 211 Manufactured housing 36 1,634 58 2,286 156 6,251 Residential real estate — — 4 2,410 2 204 Total loans 40 $ 8,071 64 $ 6,616 162 $ 7,457 |
Changes in Accretable Discount Related to Purchased Credit Impaired Loans | The changes in accretable yield related to purchased credit-impaired loans for the years ended December 31, 2017, 2016 and 2015, were as follows: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Accretable yield balance as of December 31, $ 10,202 $ 12,947 $ 17,606 Accretion to interest income (1,673 ) (3,760 ) (2,299 ) Reclassification from nonaccretable difference and disposals, net (704 ) 1,015 (2,360 ) Accretable yield balance as of December 31, $ 7,825 $ 10,202 $ 12,947 |
Schedule of Changes in Allowance for Loans Losses | The following table presents changes in the allowance for loans losses and the FDIC loss sharing receivable, including the effect of the estimated Clawback liability for the years ended December 31, 2017 , 2016 and 2015 . Allowance for Loan Losses For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Ending balance as of December 31, $ 37,315 $ 35,647 $ 30,932 Provision for loan losses (1) 6,768 3,330 16,694 Charge-offs (7,127 ) (4,405 ) (13,412 ) Recoveries 1,059 2,743 1,433 Ending balance as of December 31, $ 38,015 $ 37,315 $ 35,647 |
Schedule of FDIC Loss Sharing Receivable | FDIC Loss Sharing Receivable For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Ending balance as of December 31, $ — $ (2,083 ) $ 2,320 Increased (decreased) estimated cash flows (2) — 289 (3,872 ) Increased estimated cash flows from covered OREO (a) — — 3,138 Other activity, net (b) — (255 ) 248 Cash payments to (receipts from) the FDIC — 2,049 (3,917 ) Ending balance as of December 31, $ — $ — $ (2,083 ) (1) Provision for loan losses $ 6,768 $ 3,330 $ 16,694 (2) Effect attributable to FDIC loss sharing agreements — (289 ) 3,872 Net amount reported as provision for loan losses $ 6,768 $ 3,041 $ 20,566 (a) Recorded as a reduction to Other real estate owned expense (a component of non-interest expense). (b) Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualified for reimbursement under the loss sharing agreements. |
Credit Quality Tables | The following table presents the credit ratings as of December 31, 2017 and 2016 , for the loans receivable portfolio. December 31, 2017 Multi-family Commercial Commercial Commercial Construction Residential Manufactured Other Consumer Total (3) (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 December 31, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (3) (amounts in thousands) Pass/Satisfactory $ 3,198,290 $ 954,846 $ 375,919 $ 1,175,850 $ 50,291 $ — $ — $ — $ 5,755,196 Special Mention — 19,552 12,065 10,824 14,498 — — — 56,939 Substandard 16,709 14,313 5,648 7,041 — — — — 43,711 Performing (1) — — — — — 189,919 92,920 3,413 286,252 Non-performing (2) — — — — — 3,583 8,810 70 12,463 Total $ 3,214,999 $ 988,711 $ 393,632 $ 1,193,715 $ 64,789 $ 193,502 $ 101,730 $ 3,483 $ 6,154,561 (1) |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of Bank Premises and Equipment | The components of bank premises and equipment as of December 31, 2017 and 2016 , were as follows: December 31, Expected Useful Life 2017 2016 (amounts in thousands) Leasehold improvements 3 to 25 years $ 14,028 $ 13,690 Furniture, fixtures and equipment 5 to 10 years 6,447 6,138 IT equipment 3 to 5 years 8,002 7,106 Automobiles 3 to 5 years 506 506 28,983 27,440 Accumulated depreciation and amortization (17,028 ) (14,671 ) Total $ 11,955 $ 12,769 |
Future Minimum Rental Commitments under Non-Cancelable Leases | Future minimum rental commitments pursuant to non-cancelable leases as of December 31, 2017 , were as follows: December 31, 2017 (amounts in thousands) 2018 $ 5,499 2019 4,837 2020 4,192 2021 3,609 2022 2,989 Thereafter 6,431 Total minimum payments $ 27,557 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Components of Deposits | The components of deposits at December 31, 2017 and 2016 , were as follows: December 31, 2017 2016 (amounts in thousands) Demand, non-interest bearing $ 1,052,115 $ 966,058 Demand, interest bearing 523,848 339,398 Savings, including money market deposit accounts 3,318,486 3,166,557 Time, $100,000 and over 1,284,855 2,106,905 Time, other 620,838 724,857 Total deposits $ 6,800,142 $ 7,303,775 Included in December 31, 2016 deposits balances above are $453.4 million of demand, non-interest bearing deposits and $3.4 million of savings deposits that were previously classified as held for sale at December 31, 2016 and have been reclassified to held and used to conform with the current period presentation. |
Schedule of Time Deposit Maturities | time deposits at December 31, 2017 , were as follows: December 31, 2017 (amounts in thousands) 2018 $ 1,453,519 2019 279,490 2020 61,133 2021 89,939 2022 21,503 Thereafter 109 Total time deposits $ 1,905,693 Time deposits greater than $250,000 totaled $0.8 billion and $1.2 billion at December 31, 2017 and 2016 , respectively. Included in the savings balances above were $654.8 million and $972.2 million of brokered money market deposits at December 31, 2017 and 2016 , respectively. Also included in time, other balances above were $504.3 million and $721.9 million of brokered time deposits, respectively, at December 31, 2017 and 2016 . Demand deposit overdrafts reclassified as loans were $2.0 million and $12.3 million at December 31, 2017 and 2016, respectively. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Short Term Borrowings | Short-term debt at December 31, 2017 and 2016 , was as follows: December 31, 2017 2016 Amount Rate Amount Rate (amounts in thousands) FHLB advances $ 1,611,860 1.47 % $ 688,800 0.85 % Federal funds purchased 155,000 1.50 83,000 0.74 Total short-term debt $ 1,766,860 $ 771,800 |
Summary of Bancorps Short Term Borrowings | The following is a summary of additional information relating to Customers' short-term debt: December 31, 2017 2016 2015 (amounts in thousands) FHLB advances Maximum outstanding at any month end $ 2,283,250 $ 1,697,800 $ 1,365,300 Average balance during the year 1,415,755 965,293 844,835 Weighted-average interest rate during the year 1.44 % 0.95 % 0.60 % Federal funds purchased Maximum outstanding at any month end 238,000 137,000 85,000 Average balance during the year 163,466 84,514 41,397 Weighted-average interest rate during the year 1.19 % 0.58 % 0.35 % |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Statement of Weighted-Average Assumptions Used and Resulting Weighted-Average Fair Value of Option | The following table presents the weighted-average assumptions used and the resulting weighted-average fair value of each option granted for the periods presented. 2017 2016 2015 Weighted-average risk-free interest rate 2.35 % 1.84 % 1.90 % Expected dividend yield — % — % — % Weighted-average expected volatility 25.05 % 23.39 % 21.18 % Weighted-average expected life (in years) 7.00 7.00 7.00 Weighted-average fair value of each option granted $ 8.68 $ 7.61 $ 6.42 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the year ended December 31, 2017 : Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (dollars in thousands, except weighted-average exercise price) Outstanding, December 31, 2016 3,960,040 $ 15.25 Granted 776,500 26.92 Exercised (2,007,762 ) 11.30 $ 32,029 Expired (7,334 ) 10.91 Forfeited (2,750 ) 17.65 Outstanding, December 31, 2017 2,718,694 $ 21.52 7.54 $ 12,887 Exercisable at December 31, 2017 96,963 $ 12.42 4.06 $ 1,317 |
Summary of Non-Vested Options | A summary of the status of Customers' non-vested options at December 31, 2017 , and changes during the year ended December 31, 2017 , is as follows: Options Weighted- Average exercise price Non-vested at December 31, 2016 2,865,962 $ 17.24 Granted 776,500 26.92 Vested (1,017,981 ) 12.77 Forfeited (2,750 ) 17.65 Non-vested at December 31, 2017 2,621,731 21.85 |
Status of Restricted Stock | The table below presents the status of the restricted stock units at December 31, 2017 , and changes during the year ended December 31, 2017 : Restricted Stock Units Weighted- Average Grant- Date Fair Value Outstanding and unvested at December 31, 2016 645,505 $ 19.43 Granted 218,449 29.93 Vested (256,078 ) 15.70 Forfeited (17,840 ) 25.85 Outstanding and unvested at December 31, 2017 590,036 $ 24.74 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Current $ 29,924 $ 48,472 $ 40,004 Deferred 15,118 (2,579 ) (10,092 ) Income tax expense $ 45,042 $ 45,893 $ 29,912 |
Schedule of Income (Loss) Before Income Tax Expense (Benefit) | Effective tax rates differ from the federal statutory rate of 35% , which is applied to income before income tax expense, due to the following: For the Years Ended December 31, 2017 2016 2015 Amount % of Amount % of Amount % of (amounts in thousands) Federal income tax at statutory rate $ 43,357 35.00 % $ 43,608 35.00 % $ 30,973 35.00 % State income tax, net of federal benefit 3,835 3.10 4,548 3.65 1,434 1.62 Tax-exempt interest, net of disallowance (381 ) (0.31 ) (237 ) (0.19 ) (277 ) (0.31 ) Bank-owned life insurance (2,675 ) (2.16 ) (1,716 ) (1.38 ) (2,422 ) (2.73 ) Equity-based compensation benefit (10,741 ) (8.67 ) (3,659 ) (2.94 ) — — Non-deductible executive compensation 654 0.53 — — — — Unrecorded basis difference in foreign subsidiaries 4,527 3.65 2,830 2.27 — — Enactment of federal tax reform 5,505 4.44 — — — — Other 961 0.78 519 0.42 204 0.22 Effective income tax rate $ 45,042 36.36 % $ 45,893 36.83 % $ 29,912 33.80 % |
Components of Net Deferred Tax Assets (Liabilities) | The following represents Customers' deferred tax asset and liabilities as December 31, 2017 and 2016 : December 31, 2017 2016 (amounts in thousands) Deferred tax assets Allowance for loan losses $ 9,738 $ 14,540 Net unrealized losses on securities 512 1,714 OREO expenses 748 1,233 Non-accrual interest 515 589 Net operating losses 1,199 2,137 Deferred compensation 1,181 1,523 Equity-based compensation 2,748 5,548 Cash flow hedge 84 1,413 Incentive compensation 634 3,041 Net deferred loan fees 47 — Other 2,215 1,972 Total deferred tax assets 19,621 33,710 Deferred tax liabilities Fair value adjustments on acquisitions (618 ) (1,039 ) Net deferred loan fees — (1,090 ) Bank premises and equipment (986 ) (713 ) Lease adjustments (4,899 ) (206 ) Other (980 ) (1,173 ) Total deferred tax liabilities (7,483 ) (4,221 ) Net deferred tax asset $ 12,138 $ 29,489 |
Transactions with Executive O_2
Transactions with Executive Officers, Directors, and Principal Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Activity Relating to Loans | The activity relating to loans to such persons was as follows: For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Balance as of December 31, $ 238 $ 220 $ 9 Additions 99 1,160 2,218 Repayments (337 ) (1,142 ) (2,007 ) Balance as of December 31, $ — $ 238 $ 220 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Outstanding Contract Amounts Represent Credit Risk | The following financial instruments were outstanding whose contract amounts represent credit risk: December 31, 2017 2016 (amounts in thousands) Commitments to fund loans $ 333,874 $ 244,784 Unfunded commitments to fund mortgage warehouse loans 1,567,139 1,230,596 Unfunded commitments under lines of credit 485,345 480,446 Letters of credit 39,890 40,223 Other unused commitments 6,679 5,310 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 set forth in the following table. Minimum Capital Levels to be Classified as: Actual Adequately Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Common equity Tier 1 (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 % December 31, 2016 Common equity Tier 1 (to risk-weighted assets) Customers Bancorp, Inc. $ 628,139 8.487 % $ 333,049 4.500 % N/A N/A $ 379,306 5.125 % Customers Bank $ 857,421 11.626 % $ 331,879 4.500 % $ 479,380 6.500 % $ 377,973 5.125 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 844,755 11.414 % $ 444,065 6.000 % N/A N/A $ 490,322 6.625 % Customers Bank $ 857,421 11.626 % $ 442,505 6.000 % $ 590,006 8.000 % $ 488,599 6.625 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 966,097 13.053 % $ 592,087 8.000 % N/A N/A $ 638,343 8.625 % Customers Bank $ 1,003,609 13.608 % $ 590,006 8.000 % $ 737,508 10.000 % $ 636,101 8.625 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 844,755 9.067 % $ 372,652 4.000 % N/A N/A $ 372,652 4.000 % Customers Bank $ 857,421 9.233 % $ 371,466 4.000 % $ 464,333 5.000 % $ 371,466 4.000 % |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers’ financial instruments were as follows at December 31, 2017 and 2016 . Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) (as restated) 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 (as restated) 146,077 146,251 — 1,886 144,365 Total loans receivable, net of allowance for loan losses (as restated) 8,523,651 8,470,171 — 1,793,408 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 — Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) (as restated) Assets Cash and cash equivalents $ 264,709 $ 264,709 $ 264,709 $ — $ — Investment securities, available for sale 493,474 493,474 15,246 478,228 — Loans held for sale (as restated) 695 695 — 695 — Total loans receivable, net of allowance for loan losses (as restated) 8,234,137 8,278,835 — 2,116,815 6,162,020 FHLB and Federal Reserve Bank, and other restricted stock 68,408 68,408 — 68,408 — Derivatives 10,864 10,864 — 10,819 45 Liabilities Deposits $ 7,303,775 $ 7,303,663 $ 4,472,013 $ 2,831,650 $ — Federal funds purchased 83,000 83,000 83,000 — — FHLB advances 868,800 869,049 688,800 180,249 — Other borrowings 87,123 91,761 66,261 25,500 — Subordinated debt 108,783 111,375 — 111,375 — Derivatives 14,172 14,172 — 14,172 — |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis | For financial assets and liabilities measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2017 and 2016 , were as follows: December 31, 2017 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Significant Other Significant Total (amounts in thousands) (as restated) 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 (as restated) — 1,886 — 1,886 Loans receivable, mortgage warehouse – fair value option (as restated) — 1,793,408 — 1,793,408 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 specific 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 December 31, 2016 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) (as restated) Measured at Fair Value on a Recurring Basis Assets Available-for-sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 231,263 $ — $ 231,263 Agency-guaranteed commercial mortgage-backed securities — 201,817 — 201,817 Corporate notes — 45,148 — 45,148 Equity securities 15,246 — — 15,246 Derivatives — 10,819 45 10,864 Loans held for sale – fair value option (as restated) — 695 — 695 Loans receivable, mortgage warehouse – fair value option (as restated) — 2,116,815 — 2,116,815 Total assets - recurring fair value measurements $ 15,246 $ 2,606,557 $ 45 $ 2,621,848 Liabilities Derivatives $ — $ 14,172 $ — $ 14,172 Measured at Fair Value on a Nonrecurring Basis Assets Impaired loans, net of specific reserves of $1,360 $ — $ — $ 6,527 $ 6,527 Other real estate owned — — 2,731 2,731 Total assets - nonrecurring fair value measurements $ — $ — $ 9,258 $ 9,258 |
Statement of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016 , were as follows: For the Years Ended December 31, 2017 2016 Residential Mortgage Loan Commitments (amounts in thousands) Balance at December 31, $ 45 $ 45 Issuances 360 400 Settlements (345 ) (400 ) Balance at December 31, $ 60 $ 45 |
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 December 31, 2017 and 2016 , for which Customers utilized Level 3 inputs to measure fair value: Quantitative Information about Level 3 Fair Value Measurements December 31, 2017 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars 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 % Quantitative Information about Level 3 Fair Value Measurements December 31, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars in thousands) Impaired loans $ 1,431 Collateral appraisal (1) Liquidation expenses (2) (8 )% Impaired loans 5,096 Discounted cash flow Projected cash flows (3) 4 times EBIDTA Other real estate owned 2,731 Collateral appraisal (1) Liquidation expenses (2) (8 )% Residential mortgage loan commitments 45 Adjusted market bid Pull-through rate 90 % (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. Customers does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell based on a percentage of the value determined by appraisal. (3) Projected cash flows of the business derived using EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) multiple based on management's best estimate. (4) Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments | The following table presents the fair value of Customers’ derivative financial instruments as well as their presentation on the consolidated balance sheets at December 31, 2017 and 2016 . 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 December 31, 2016 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 $ — Other liabilities $ 3,624 Total $ — $ 3,624 Derivatives not designated as hedging instruments Interest rate swaps Other assets $ 10,683 Other liabilities $ 10,537 Credit contracts Other assets 136 Other liabilities 11 Residential mortgage loan commitments Other assets 45 Other liabilities — Total $ 10,864 $ 10,548 |
Effect of Derivative Instruments on Comprehensive Income | The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the years ended December 31, 2017 , 2016 and 2015 . For the Year Ended December 31, 2017 Income Statement Location Amount of Income Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments Interest rate swaps Other non-interest income $ 604 Credit contracts Other non-interest income 171 Residential mortgage loan commitments Mortgage banking income 15 Total $ 790 For the Year Ended December 31, 2016 Income Statement Location Amount of Income Recognized in Earnings (amounts in thousands) Derivatives not designated as hedging instruments Interest rate swaps Other non-interest income $ 2,955 Credit contracts Other non-interest income 163 Residential mortgage loan commitments Mortgage banking income — Total $ 3,118 For the Year Ended December 31, 2015 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 $ 1,889 Credit contracts Other non-interest income (15 ) Residential mortgage loan commitments Mortgage banking income 2 Total $ 1,876 For the Year Ended December 31, 2017 Location of Gain Amount of Loss Amount of Income (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 406 Interest expense $ (2,634 ) For the Year Ended December 31, 2016 Location of Gain Amount of Loss Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivative in cash flow hedging relationship: Interest rate swaps $ (629 ) Interest expense $ (1,946 ) For the Year Ended December 31, 2015 Location of Gain Amount of Gain (Loss) Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivative in cash flow hedging relationship: Interest rate swaps $ (1,534 ) Interest expense $ — (1) Amounts presented are net of taxes |
Summary of Offsetting of Financial Assets and Derivative Assets | 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 December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (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 December 31, 2016 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 4,723 $ — $ 4,723 $ — $ — $ 4,723 |
Summary of Offsetting of Financial Liabilities and Derivative Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities at December 31, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (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 December 31, 2016 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 9,825 $ — $ 9,825 $ — $ 4,472 $ 5,353 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Summary of Condensed Balance Sheets of Parent Company | Balance Sheets December 31, 2017 2016 (amounts in thousands) Assets Cash in subsidiary bank $ 67,231 $ 54,441 Investments in and receivables due from subsidiaries 1,039,883 883,793 Other assets 3,160 10,784 Total assets $ 1,110,274 $ 949,018 Liabilities and Shareholders’ equity Borrowings $ 186,497 $ 87,123 Other liabilities 2,813 6,023 Total liabilities 189,310 93,146 Shareholders’ equity 920,964 855,872 Total Liabilities and Shareholders’ Equity $ 1,110,274 $ 949,018 |
Summary of Condensed Income Statements of Parent Company | Income and Comprehensive Income Statements For the Years Ended December 31, 2017 2016 2015 (amounts in thousands) Operating income: Other $ 38,200 $ 25,400 $ 18,545 Total operating income 38,200 25,400 18,545 Operating expense: Interest 7,984 5,854 5,854 Other 1,742 4,570 4,604 Total operating expense 9,726 10,424 10,458 Income before taxes and undistributed income of subsidiaries 28,474 14,976 8,087 Income tax benefit 3,620 3,961 3,516 Income before undistributed income of subsidiaries 32,094 18,937 11,603 Equity in undistributed income of subsidiaries 46,743 59,765 46,980 Net income 78,837 78,702 58,583 Preferred stock dividends 14,459 9,515 2,493 Net income available to common shareholders 64,378 69,187 56,090 Comprehensive income $ 83,370 $ 81,794 $ 50,721 |
Summary of Condensed Statements of Cash Flows of Parent Company | Statements of Cash Flows For the Years Ended December 31, (amounts in thousands) 2017 2016 2015 Cash Flows from Operating Activities: Net income $ 78,837 $ 78,702 $ 58,583 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries, net of dividends received from Bank (46,743 ) (59,765 ) (46,980 ) Loss on sale of available for sale investment securities — 1 — (Increase) decrease in other assets 7,624 (7,721 ) 2,488 Increase (decrease) in other liabilities (1,322 ) 54 (112 ) Net Cash Provided By Operating Activities 38,396 11,271 13,979 Cash Flows from Investing Activities: Proceeds from sales of investment securities available for sale — 4 — Payments for investments in and advances to subsidiaries (98,725 ) (230,872 ) (30,036 ) Net Cash Used in Investing Activities (98,725 ) (230,868 ) (30,036 ) Cash Flows from Financing Activities: Proceeds from issuance of common stock 2,716 70,985 904 Proceeds from issuance of preferred stock — 161,902 55,569 Proceeds from issuance of long-term debt 98,564 — — Exercise and redemption of warrants 1,059 1,532 — Payments of employee taxes withheld from share-based awards (14,761 ) (5,897 ) — Preferred stock dividends paid (14,459 ) (9,051 ) (2,314 ) Net Cash Provided by Financing Activities 73,119 219,471 54,159 Net Increase (Decrease) in Cash and Cash Equivalents 12,790 (126 ) 38,102 Cash and Cash Equivalents – Beginning 54,441 54,567 16,465 Cash and Cash Equivalents – Ending $ 67,231 $ 54,441 $ 54,567 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents selected quarterly data for the years ended December 31, 2017 and 2016 . Amounts previously reported as discontinued operations for the quarterly data for the year ended December 31, 2016, related to BankMobile have been reclassified to conform with the current period presentation as a result of the BankMobile spin-off/merger transaction described in NOTE 3 - SPIN-OFF AND MERGER. 2017 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 97,619 $ 98,285 $ 93,852 $ 83,094 Interest expense 29,319 30,266 25,246 20,676 Net interest income 68,300 68,019 68,606 62,418 Provision for loan losses 831 2,352 535 3,050 Non-interest income 19,740 18,026 18,391 22,754 Non-interest expenses 54,788 61,040 50,413 49,366 Income before income taxes 32,421 22,653 36,049 32,756 Provision for income taxes 10,806 14,899 12,327 7,009 Net income 21,615 7,754 23,722 25,747 Preferred stock dividends 3,615 3,615 3,615 3,615 Net income available to common shareholders $ 18,000 $ 4,139 $ 20,107 $ 22,132 Earnings per common share: Basic earnings per common share $ 0.58 $ 0.13 $ 0.66 $ 0.73 Diluted earnings per common share $ 0.55 $ 0.13 $ 0.62 $ 0.67 2016 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 83,609 $ 84,212 $ 81,321 $ 73,398 Interest expense 19,481 19,627 18,163 15,771 Net interest income 64,128 64,585 63,158 57,627 Provision for loan losses 187 88 786 1,980 Non-interest income 15,131 27,486 8,257 5,494 Non-interest expenses 49,924 56,218 38,183 33,905 Income before income taxes 29,148 35,765 32,446 27,236 Provision for income taxes 9,320 14,558 12,963 9,052 Net income 19,828 21,207 19,483 18,184 Preferred stock dividends 3,615 2,552 2,062 1,286 Net income available to common shareholders $ 16,213 $ 18,655 $ 17,421 $ 16,898 Earnings per common share: Basic earnings per common share $ 0.56 $ 0.68 $ 0.64 $ 0.63 Diluted earnings per common share $ 0.51 $ 0.63 $ 0.59 $ 0.58 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | For the Year Ended December 31, 2017 (amounts in thousands) Community Business Banking BankMobile Consolidated Interest income (1) $ 359,931 $ 12,919 $ 372,850 Interest expense 105,438 69 105,507 Net interest income 254,493 12,850 267,343 Provision for loan losses 5,638 1,130 6,768 Non-interest income 24,788 54,122 78,910 Non-interest expense 128,604 87,002 215,606 Income (loss) before income taxes 145,039 (21,160 ) 123,879 Income tax expense (benefit) 53,013 (7,971 ) 45,042 Net income (loss) 92,026 (13,189 ) 78,837 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 77,567 $ (13,189 ) $ 64,378 Goodwill and other intangibles $ 3,630 $ 12,665 $ 16,295 Total assets $ 9,769,996 $ 69,559 $ 9,839,555 Total deposits $ 6,400,310 $ 399,832 $ 6,800,142 Total non-deposit liabilities $ 2,106,919 $ 11,530 $ 2,118,449 For the Year Ended December 31, 2016 (amounts in thousands) Community Business Banking BankMobile Consolidated Interest income (1) $ 315,643 $ 6,896 $ 322,539 Interest expense 73,004 38 73,042 Net interest income 242,639 6,858 249,497 Provision for loan losses 2,246 795 3,041 Non-interest income 23,165 33,205 56,370 Non-interest expense (2) 130,394 47,837 178,231 Income (loss) before income taxes 133,164 (8,569 ) 124,595 Income tax expense (benefit) (2) 49,149 (3,256 ) 45,893 Net income (loss) 84,015 (5,313 ) 78,702 Preferred stock dividends 9,515 — 9,515 Net income (loss) available to common shareholders $ 74,500 $ (5,313 ) $ 69,187 Goodwill and other intangibles $ 3,639 $ 13,982 $ 17,621 Total assets $ 9,303,465 $ 79,271 $ 9,382,736 Total deposits $ 6,846,980 $ 456,795 $ 7,303,775 Total non-deposit liabilities $ 1,195,087 $ 28,002 $ 1,223,089 (1) - Amounts reported include funds transfer pricing of $12.9 million and $6.9 million , respectively, for the years ended December 31, 2017 and 2016 , credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no-cost deposits. (2) - Includes an $0.8 million inter-segment reclassification of previously reported Community Business Banking and BankMobile segment non-interest expenses, and related income tax effects, as a result of the reallocation of certain segment expenses in 2016 to be consistent with year ended December 31, 2017, presentation. For the Year Ended December 31, 2015 (amounts in thousands) Community Business Banking BankMobile Consolidated Interest income (1) $ 243,404 $ 6,446 $ 249,850 Interest expense 53,536 24 53,560 Net interest income 189,868 6,422 196,290 Provision for loan losses 20,562 4 20,566 Non-interest income 27,573 144 27,717 Non-interest expense 107,569 7,377 114,946 Income (loss) before income taxes 89,310 (815 ) 88,495 Income tax expense (benefit) 30,221 (309 ) 29,912 Net income (loss) 59,089 (506 ) 58,583 Preferred stock dividends 2,493 — 2,493 Net income (loss) available to common shareholders $ 56,596 $ (506 ) $ 56,090 Goodwill and other intangibles $ 3,651 $ — $ 3,651 Total assets $ 8,395,525 $ 2,680 $ 8,398,205 Total deposits $ 5,662,433 $ 247,068 $ 5,909,501 Total non-deposit liabilities $ 1,934,731 $ 71 $ 1,934,802 (1) - Amounts reported include funds transfer pricing of $6.4 million for the year ended December 31, 2015, credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no-cost deposits. |
Description of the Business - N
Description of the Business - Narrative (Detail) | Dec. 31, 2017Branch |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches | 13 |
Acquisition Activity - Narrativ
Acquisition Activity - Narrative (Detail) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 15, 2016USD ($)employee | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Capital Unit [Line Items] | ||||||||
Payments at closing | $ 0 | $ 17,000 | $ 0 | |||||
Higher One, Inc's Disbursements Business | ||||||||
Capital Unit [Line Items] | ||||||||
Number of employees hired (employee) | employee | 225 | |||||||
Total consideration for Higher One | $ 42,000 | |||||||
Cash consideration for Higher One | 37,000 | 37,000 | ||||||
Payments at closing | 17,000 | |||||||
Future consideration | $ 15,000 | 20,000 | ||||||
Consideration for transition services | $ 5,000 | |||||||
Period after closing for required additional payments | 3 years | |||||||
Revenue amount to trigger additional payments | $ 75,000 | |||||||
Payment amount as a percent of revenue exceeding $75 million | 35.00% | |||||||
Payables to Higher One | $ 5,000 | 5,000 | $ 20,000 | |||||
Goodwill | 5,259 | $ 5,259 | 5,259 | |||||
Increase in goodwill | $ 1,000 | |||||||
Higher One, Inc's Disbursements Business | Maximum | ||||||||
Capital Unit [Line Items] | ||||||||
Future consideration | $ 20,000 | |||||||
Higher One, Inc's Disbursements Business | Developed software | ||||||||
Capital Unit [Line Items] | ||||||||
Intangible assets useful life | 10 years | |||||||
Higher One, Inc's Disbursements Business | Other intangible assets | Minimum | ||||||||
Capital Unit [Line Items] | ||||||||
Intangible assets useful life | 4 years | |||||||
Higher One, Inc's Disbursements Business | Other intangible assets | Maximum | ||||||||
Capital Unit [Line Items] | ||||||||
Intangible assets useful life | 20 years | |||||||
Higher One, Inc's Disbursements Business | First Anniversary of Closing | ||||||||
Capital Unit [Line Items] | ||||||||
Future consideration | $ 10,000 | $ 5,000 | $ 10,000 | |||||
Higher One, Inc's Disbursements Business | Second Anniversary of Closing | ||||||||
Capital Unit [Line Items] | ||||||||
Future consideration | 10,000 | |||||||
Payables to Higher One | 10,000 | $ 5,000 | ||||||
Preliminary | Higher One, Inc's Disbursements Business | ||||||||
Capital Unit [Line Items] | ||||||||
Goodwill | $ 4,293 |
Acquisition Activity - Fair Val
Acquisition Activity - Fair Value of Assets Acquired and Liabilities Assumed (Details) - Higher One, Inc's Disbursements Business - USD ($) $ in Thousands | Dec. 31, 2017 | Jun. 15, 2016 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Accounts receivable | $ 2,784 | $ 2,784 | $ 2,784 | ||
Prepaid expenses | 418 | 418 | 418 | ||
Fixed assets, net | 229 | 229 | 229 | ||
Total assets acquired | 40,131 | 40,131 | 40,131 | ||
Other liabilities | 5,735 | 5,735 | 5,735 | ||
Deferred revenue | 2,655 | 2,655 | 2,655 | ||
Total liabilities assumed | 8,390 | 8,390 | 8,390 | ||
Net assets acquired | 31,741 | 31,741 | 31,741 | ||
Transaction cash consideration | $ 37,000 | 37,000 | |||
Goodwill | 5,259 | 5,259 | 5,259 | ||
Future consideration | 15,000 | 20,000 | |||
First Anniversary of Closing | |||||
Business Acquisition [Line Items] | |||||
Future consideration | $ 10,000 | 5,000 | $ 10,000 | ||
Developed software | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | 27,400 | 27,400 | 27,400 | ||
Other intangible assets | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets | $ 9,300 | $ 9,300 | $ 9,300 |
Tax-Free Spin-Off and Merger -
Tax-Free Spin-Off and Merger - Narrative (Details) - Common Stock - Spinoff - Flagship - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Nov. 17, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
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 |
Tax-Free Spin-Off and Merger _2
Tax-Free Spin-Off and Merger - Balance Sheet Information (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |
ASSETS | |
Cash and cash equivalents | $ 264,709 |
Loans receivable | 6,154,637 |
Bank premises and equipment, net | 12,769 |
Goodwill and other intangibles | 17,621 |
Assets held for sale | 0 |
Other assets | 102,631 |
LIABILITIES | |
Non-interest bearing deposits held for sale | 966,058 |
Interest-bearing deposits | 6,337,717 |
Other liabilities held for sale | 0 |
Accrued interest payable and other liabilities | 0 |
Discontinued Operations, Held-for-sale [Member] | |
LIABILITIES | |
Liabilities held for sale | 75,383 |
As Previously Reported | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |
ASSETS | |
Cash and cash equivalents | 244,709 |
Loans receivable | 6,142,390 |
Bank premises and equipment, net | 12,259 |
Goodwill and other intangibles | 3,639 |
Assets held for sale | 79,271 |
Other assets | 70,099 |
LIABILITIES | |
Non-interest bearing deposits held for sale | 512,664 |
Interest-bearing deposits | 6,334,316 |
Other liabilities held for sale | 453,394 |
Accrued interest payable and other liabilities | 31,403 |
As Previously Reported | Discontinued Operations, Held-for-sale [Member] | |
LIABILITIES | |
Liabilities held for sale | 47,381 |
Adjustment | BankMobile | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | |
ASSETS | |
Cash and cash equivalents | 20,000 |
Loans receivable | 12,247 |
Bank premises and equipment, net | 510 |
Goodwill and other intangibles | 13,982 |
Assets held for sale | (79,271) |
Other assets | 32,532 |
LIABILITIES | |
Non-interest bearing deposits held for sale | 453,394 |
Interest-bearing deposits | 3,401 |
Other liabilities held for sale | (453,394) |
Accrued interest payable and other liabilities | (31,403) |
Liabilities held for sale | $ 28,002 |
Tax-Free Spin-Off and Merger _3
Tax-Free Spin-Off and Merger - Income Statement Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Provision for income taxes | $ 10,806 | $ 14,899 | $ 12,327 | $ 7,009 | $ 9,320 | $ 14,558 | $ 12,963 | $ 9,052 | $ 45,042 | $ 45,893 | $ 29,912 |
Net income from continuing operations | 21,615 | 7,754 | 23,722 | 25,747 | 19,828 | 21,207 | 19,483 | 18,184 | 78,837 | 78,702 | 58,583 |
Net income | 78,837 | 78,702 | 58,583 | ||||||||
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 2,552 | 2,062 | 1,286 | 14,459 | 9,515 | 2,493 |
Net income available to common shareholders | $ 18,000 | $ 4,139 | $ 20,107 | $ 22,132 | $ 16,213 | $ 18,655 | $ 17,421 | $ 16,898 | $ 64,378 | 69,187 | 56,090 |
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 | 322,539 | 249,850 | |||||||||
Interest expense | 73,042 | 53,560 | |||||||||
Net interest income | 249,497 | 196,290 | |||||||||
Provision for loan losses | 3,041 | 20,566 | |||||||||
Non-interest income | 56,370 | 27,717 | |||||||||
Non-interest expense | 178,231 | 114,946 | |||||||||
Income from continuing operations before income taxes | 124,595 | 88,495 | |||||||||
Provision for income taxes | 45,893 | 29,912 | |||||||||
Net income from continuing operations | 78,702 | 58,583 | |||||||||
Loss from discontinued operations before income taxes | 0 | 0 | |||||||||
Income tax benefit from discontinued operations | 0 | 0 | |||||||||
Net loss from discontinued operations | 0 | 0 | |||||||||
Net income | 78,702 | 58,583 | |||||||||
Preferred stock dividends | 9,515 | 2,493 | |||||||||
Net income available to common shareholders | 69,187 | 56,090 | |||||||||
As 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 | 322,539 | 249,850 | |||||||||
Interest expense | 73,023 | 53,551 | |||||||||
Net interest income | 249,516 | 196,299 | |||||||||
Provision for loan losses | 2,345 | 20,566 | |||||||||
Non-interest income | 23,165 | 27,572 | |||||||||
Non-interest expense | 131,217 | 107,568 | |||||||||
Income from continuing operations before income taxes | 139,119 | 95,737 | |||||||||
Provision for income taxes | 51,412 | 32,664 | |||||||||
Net income from continuing operations | 87,707 | 63,073 | |||||||||
Loss from discontinued operations before income taxes | (14,524) | (7,242) | |||||||||
Income tax benefit from discontinued operations | (5,519) | (2,752) | |||||||||
Net loss from discontinued operations | (9,005) | (4,490) | |||||||||
Net income | 78,702 | 58,583 | |||||||||
Preferred stock dividends | 9,515 | 2,493 | |||||||||
Net income available to common shareholders | 69,187 | 56,090 | |||||||||
BankMobile | Adjustment | 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 | 0 | |||||||||
Interest expense | 19 | 9 | |||||||||
Net interest income | (19) | (9) | |||||||||
Provision for loan losses | 696 | 0 | |||||||||
Non-interest income | 33,205 | 145 | |||||||||
Non-interest expense | 47,014 | 7,378 | |||||||||
Income from continuing operations before income taxes | (14,524) | (7,242) | |||||||||
Provision for income taxes | (5,519) | (2,752) | |||||||||
Net income from continuing operations | (9,005) | (4,490) | |||||||||
Loss from discontinued operations before income taxes | 14,524 | 7,242 | |||||||||
Income tax benefit from discontinued operations | 5,519 | 2,752 | |||||||||
Net loss from discontinued operations | 9,005 | 4,490 | |||||||||
Net income | 0 | 0 | |||||||||
Preferred stock dividends | 0 | 0 | |||||||||
Net income available to common shareholders | $ 0 | $ 0 |
Significant Accounting Polici_4
Significant Accounting Policies and Basis of Presentation - Schedule of Error Correction on Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Loans held for sale, carrying value | $ 146,077 | $ 695 |
Loans receivable, mortgage warehouse, at fair value | 1,793,408 | 2,116,815 |
Loans receivable, net of allowance for loan losses, carrying value | 8,523,651 | 8,234,137 |
As Previously Reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Loans held for sale, carrying value | 1,939,485 | 2,117,510 |
Loans receivable, mortgage warehouse, at fair value | 0 | 0 |
Loans receivable, net of allowance for loan losses, carrying value | 6,730,243 | 6,117,322 |
Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Loans held for sale, carrying value | (1,793,408) | (2,116,815) |
Loans receivable, mortgage warehouse, at fair value | 1,793,408 | 2,116,815 |
Loans receivable, net of allowance for loan losses, carrying value | $ 1,793,408 | $ 2,116,815 |
Significant Accounting Polici_5
Significant Accounting Policies and Basis of Presentation - Schedule of Error Correction on Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Origination of loans held for sale | $ (41,172) | $ (39,750) | $ (39,257) |
Proceeds from the sale of loans held for sale | 40,656 | 42,772 | 40,815 |
Net Cash Provided by (Used in) Operating Activities | 62,193 | 91,403 | 66,569 |
Origination of mortgage warehouse loans | (30,084,255) | (36,091,174) | (29,886,506) |
Proceeds from repayments of mortgage warehouse loans | 30,407,662 | 35,729,309 | 29,463,289 |
Net Cash Used in Investing Activities | (565,125) | (961,534) | (1,681,443) |
As Previously Reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Origination of loans held for sale | (30,125,427) | (36,130,924) | (29,925,763) |
Proceeds from the sale of loans held for sale | 30,448,318 | 35,772,081 | 29,504,104 |
Net Cash Provided by (Used in) Operating Activities | 385,600 | (270,462) | (356,648) |
Origination of mortgage warehouse loans | 0 | 0 | 0 |
Proceeds from repayments of mortgage warehouse loans | 0 | 0 | 0 |
Net Cash Used in Investing Activities | (888,532) | (599,669) | (1,258,226) |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Origination of loans held for sale | 30,084,255 | 36,091,174 | 29,886,506 |
Proceeds from the sale of loans held for sale | (30,407,662) | (35,729,309) | (29,463,289) |
Net Cash Provided by (Used in) Operating Activities | (323,407) | 361,865 | 423,217 |
Origination of mortgage warehouse loans | (30,084,255) | (36,091,174) | (29,886,506) |
Proceeds from repayments of mortgage warehouse loans | 30,407,662 | 35,729,309 | 29,463,289 |
Net Cash Used in Investing Activities | $ 323,407 | $ (361,865) | $ (423,217) |
Significant Accounting Polici_6
Significant Accounting Policies and Basis of Presentation - Narrative (Detail) | Dec. 31, 2016USD ($)derivativeSwap | Jul. 11, 2016USD ($) | Jun. 15, 2016USD ($) | Sep. 30, 2016Segment | Dec. 31, 2016USD ($)derivativeSegmentSwap | Jun. 30, 2016Segment | Dec. 31, 2017USD ($)derivativeCompensationPlanSwap | Dec. 31, 2016USD ($)derivativeSwap | Dec. 31, 2015USD ($) | Dec. 31, 2014 | Nov. 17, 2017USD ($) |
Derivative [Line Items] | |||||||||||
Average reserve balances maintained with federal reserve bank | $ 149,300,000 | $ 149,300,000 | $ 164,700,000 | $ 149,300,000 | |||||||
Held to maturity securities | 0 | 0 | 0 | 0 | |||||||
Deferred cost of bank loans | $ 0 | ||||||||||
Contractual payment of principal duration (days) | 90 days | ||||||||||
Contractual terms for loans (months) | 6 months | ||||||||||
Payments for termination to FDIC | $ 1,400,000 | ||||||||||
Operating lease, carrying value of assets | $ 21,700,000 | ||||||||||
Operating lease, accumulated depreciation | $ 500,000 | ||||||||||
Operating lease, term | 5 years 4 months 24 days | ||||||||||
Maximum loan to value ratio | 80.00% | ||||||||||
Delinquency period for loan charge-offs (days) | 120 days | ||||||||||
Goodwill and other intangibles | 17,621,000 | 17,621,000 | $ 16,295,000 | 17,621,000 | |||||||
FHLB, Federal Reserve Bank, and other restricted stock | 68,408,000 | 68,408,000 | 105,918,000 | 68,408,000 | |||||||
Federal Home Loan Bank stock | 51,300,000 | $ 51,300,000 | $ 83,700,000 | 51,300,000 | |||||||
Percentage of tax position will realized or sustained upon examination | 50.00% | ||||||||||
Number of share-based compensation plans | CompensationPlan | 4 | ||||||||||
Number of reportable segments (segment) | Segment | 2 | 2 | 1 | ||||||||
Stranded tax effects in AOCI from federal tax reform | $ 300,000 | ||||||||||
Cumulative effect adjustment | 1,000,000 | ||||||||||
Unrealized gains (losses) on available-for-sale securities | 2,520,000 | 2,505,000 | $ (6,328,000) | ||||||||
Interchange and card revenue | 41,509,000 | 24,681,000 | $ 557,000 | ||||||||
Accounting Standards Update 2014-09 | |||||||||||
Derivative [Line Items] | |||||||||||
Interchange and card revenue | 3,600,000 | 1,300,000 | |||||||||
Cash Flow Hedging | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative notional amount | $ 325,000,000 | $ 325,000,000 | $ 325,000,000 | ||||||||
Number of interest rate swaps | derivative | 4 | 4 | 4 | ||||||||
Interest Rate Swap | Not Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative notional amount | $ 716,600,000 | $ 716,600,000 | $ 800,500,000 | $ 716,600,000 | |||||||
Number of interest rate swaps | Swap | 76 | 76 | 76 | 76 | |||||||
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative notional amount | $ 325,000,000 | $ 325,000,000 | $ 550,000,000 | $ 325,000,000 | |||||||
Number of interest rate swaps | derivative | 4 | 4 | 9 | 4 | |||||||
Credit contracts | Not Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
Derivative notional amount | $ 44,900,000 | $ 44,900,000 | $ 80,500,000 | $ 44,900,000 | |||||||
ESPP | |||||||||||
Derivative [Line Items] | |||||||||||
Purchase price under employee stock purchase plan (percent) | 85.00% | 85.00% | |||||||||
Purchase price under employee stock purchase plan, discount (percent) | 15.00% | 15.00% | |||||||||
Higher One, Inc's Disbursements Business | |||||||||||
Derivative [Line Items] | |||||||||||
Escrow amount | $ 5,000,000 | $ 5,000,000 | $ 20,000,000 | ||||||||
Increase in goodwill | $ 1,000,000 | ||||||||||
Flagship | Spinoff | Common Stock | |||||||||||
Derivative [Line Items] | |||||||||||
Escrow deposit | $ 1,000,000 | ||||||||||
Flagship | Spinoff | Common Stock | Cash and Cash Equivalents | |||||||||||
Derivative [Line Items] | |||||||||||
Escrow deposit | 1,000,000 | ||||||||||
Equity securities | |||||||||||
Derivative [Line Items] | |||||||||||
Unrealized gains (losses) on available-for-sale securities | $ 1,000,000 |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common shareholders | $ 18,000 | $ 4,139 | $ 20,107 | $ 22,132 | $ 16,213 | $ 18,655 | $ 17,421 | $ 16,898 | $ 64,378 | $ 69,187 | $ 56,090 |
Weighted-average number of common shares outstanding – basic (shares) | 30,659,320 | 27,596,020 | 26,844,545 | ||||||||
Share-based compensation plans (shares) | 1,917,451 | 2,221,517 | 1,516,297 | ||||||||
Warrants (shares) | 19,906 | 196,113 | 324,097 | ||||||||
Weighted-average number of common shares – diluted (shares) | 32,596,677 | 30,013,650 | 28,684,939 | ||||||||
Basic earnings per common share (usd per share) | $ 0.58 | $ 0.13 | $ 0.66 | $ 0.73 | $ 0.56 | $ 0.68 | $ 0.64 | $ 0.63 | $ 2.10 | $ 2.51 | $ 2.09 |
Diluted earnings per share (usd per share) | $ 0.55 | $ 0.13 | $ 0.62 | $ 0.67 | $ 0.51 | $ 0.63 | $ 0.59 | $ 0.58 | $ 1.97 | $ 2.31 | $ 1.96 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (shares) | 1,059,225 | 946,962 | 658,337 |
Share-based compensation plans | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (shares) | 1,059,225 | 894,720 | 606,095 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (shares) | 0 | 52,242 | 52,242 |
Changes In Accumulated Other _3
Changes In Accumulated Other Comprehensive Income (Loss) By Component (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | $ 855,872 | $ 553,902 | $ 443,145 |
Ending balance | 920,964 | 855,872 | 553,902 |
Reclassification adjustment from AOCI | 8,800 | (7,237) | (85) |
Unrealized gains (losses), available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (2,681) | (4,602) | |
Other comprehensive income (loss) before reclassifications | 7,800 | (1,872) | |
Amounts reclassified from accumulated other comprehensive income to net income | (5,368) | 3,793 | |
Net current-period other comprehensive income | 2,432 | 1,921 | |
Ending balance | (249) | (2,681) | (4,602) |
Foreign currency items, available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | 0 | (584) | |
Other comprehensive income (loss) before reclassifications | 88 | (146) | |
Amounts reclassified from accumulated other comprehensive income to net income | 0 | 730 | |
Net current-period other comprehensive income | 88 | 584 | |
Ending balance | 88 | 0 | (584) |
Total unrealized gains (losses), available-for-sale securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (2,681) | (5,186) | |
Other comprehensive income (loss) before reclassifications | 7,888 | (2,018) | |
Amounts reclassified from accumulated other comprehensive income to net income | (5,368) | 4,523 | |
Net current-period other comprehensive income | 2,520 | 2,505 | |
Ending balance | (161) | (2,681) | (5,186) |
Unrealized loss on cash flow hedge | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (2,211) | (2,798) | |
Other comprehensive income (loss) before reclassifications | 406 | (629) | |
Amounts reclassified from accumulated other comprehensive income to net income | 1,607 | 1,216 | |
Net current-period other comprehensive income | 2,013 | 587 | |
Ending balance | (198) | (2,211) | (2,798) |
Accumulated other comprehensive income (loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | (4,892) | (7,984) | (122) |
Other comprehensive income (loss) before reclassifications | 8,294 | (2,647) | |
Amounts reclassified from accumulated other comprehensive income to net income | (3,761) | 5,739 | |
Net current-period other comprehensive income | 4,533 | 3,092 | |
Ending balance | (359) | (4,892) | $ (7,984) |
Gain on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Reclassification adjustment from AOCI | 8,800 | 25 | |
Reclassification adjustment from AOCI, net | $ 5,400 | 16 | |
Impairment Loss on Investment Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Reclassification adjustment from AOCI | 7,300 | ||
Reclassification adjustment from AOCI, net | $ 4,500 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 472,300 | $ 497,869 | |
Gross Unrealized Gains | 2,639 | 1,319 | |
Gross Unrealized Losses | (3,568) | (5,714) | |
Investment securities available for sale, fair value | 471,371 | 493,474 | |
Agency-guaranteed residential mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 186,221 | 233,002 | |
Gross Unrealized Gains | 36 | 918 | |
Gross Unrealized Losses | (2,799) | (2,657) | |
Investment securities available for sale, fair value | 183,458 | 231,263 | |
Agency-guaranteed commercial real estate mortgage-backed securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 238,809 | 204,689 | |
Gross Unrealized Gains | 432 | 0 | |
Gross Unrealized Losses | (769) | (2,872) | |
Investment securities available for sale, fair value | 238,472 | 201,817 | |
Corporate notes | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 44,959 | 44,932 | |
Gross Unrealized Gains | 1,130 | 401 | |
Gross Unrealized Losses | 0 | (185) | |
Investment securities available for sale, fair value | 46,089 | 45,148 | |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 2,311 | $ 2,300 | 15,246 |
Gross Unrealized Gains | 1,041 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Investment securities available for sale, fair value | $ 3,352 | $ 15,246 |
Investment Securities - Stateme
Investment Securities - Statement of Proceeds from Sale of Available for Sale Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of available-for-sale investment securities | $ 769,203 | $ 2,852 | $ 806 |
Gross gains | 8,808 | 26 | 0 |
Gross losses | (8) | (1) | (85) |
Net gains (losses) | $ 8,800 | $ 25 | $ (85) |
Investment Securities - Summa_2
Investment Securities - Summary of Investment Securities by Stated Maturity (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Amortized cost, due in one year or less | $ 0 |
Amortized cost, due after one year through five years | 0 |
Amortized cost, due after five years through ten years | 42,959 |
Amortized cost, due after ten years | 2,000 |
Amortized cost | 469,989 |
Fair value, due in one year or less | 0 |
Fair value, due after one year through five years | 0 |
Fair value, due after five years through ten years | 44,005 |
Fair value, due after ten years | 2,084 |
Total debt securities, fair value | 468,019 |
Agency-guaranteed residential mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-backed securities, amortized cost | 186,221 |
Mortgage-backed securities, fair value | 183,458 |
Agency-guaranteed commercial real estate mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Mortgage-backed securities, amortized cost | 238,809 |
Mortgage-backed securities, fair value | $ 238,472 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value, Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 220,831 | $ 298,997 |
Less than 12 months, unrealized losses | (1,396) | (4,387) |
12 months or more, fair value | 72,730 | 30,592 |
12 months or more, unrealized losses | (2,172) | (1,327) |
Fair value, total | 293,561 | 329,589 |
Unrealized losses, total | (3,568) | (5,714) |
Agency-guaranteed residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 104,861 | 87,433 |
Less than 12 months, unrealized losses | (656) | (1,330) |
12 months or more, fair value | 66,579 | 30,592 |
12 months or more, unrealized losses | (2,143) | (1,327) |
Fair value, total | 171,440 | 118,025 |
Unrealized losses, total | (2,799) | (2,657) |
Agency-guaranteed commercial real estate mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 115,970 | 201,817 |
Less than 12 months, unrealized losses | (740) | (2,872) |
12 months or more, fair value | 6,151 | 0 |
12 months or more, unrealized losses | (29) | 0 |
Fair value, total | 122,121 | 201,817 |
Unrealized losses, total | $ (769) | (2,872) |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 9,747 | |
Less than 12 months, unrealized losses | (185) | |
12 months or more, fair value | 0 | |
12 months or more, unrealized losses | 0 | |
Fair value, total | 9,747 | |
Unrealized losses, total | $ (185) |
Investment Securities - Narrati
Investment Securities - Narrative (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of available-for-sale investment securities in the less than twelve month category (security) | Security | 20 | |||
Number of available-for-sale investment securities in the twelve month or more category (security) | Security | 16 | |||
Amortized cost | $ 472,300 | $ 497,869 | ||
Investment securities available for sale, fair value | 471,371 | 493,474 | ||
Unrealized gains (losses) on available-for-sale securities | 2,520 | 2,505 | $ (6,328) | |
Deferred tax liabilities, equity investments | 0 | |||
Pledged investment securities fair value | 16,900 | 231,300 | ||
Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Impairment loss | 12,900 | |||
Amortized cost | 2,311 | 15,246 | $ 2,300 | |
Investment securities available for sale, fair value | 3,352 | $ 15,246 | ||
Unrealized gains (losses) on available-for-sale securities | $ 1,000 |
Loans Held for Sale - Compositi
Loans Held for Sale - Composition of Loans Held for Sale (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables Held-for-sale [Abstract] | ||||
Multi-family loans, at lower of cost or fair value | $ 144,191 | $ 0 | ||
Total commercial loans held for sale | 144,191 | 0 | ||
Residential mortgage loans, at fair value | 1,886 | 695 | ||
Loans held for sale | 146,077 | 695 | ||
Transfer of loans from held for sale to held for investment | $ 150,600 | $ 0 | $ 25,118 | $ 30,365 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Schedule of Loans Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 6,768,175 | $ 6,154,561 | ||
Deferred costs and unamortized premiums, net | 83 | 76 | ||
Allowance for loan losses | (38,015) | (37,315) | $ (35,647) | $ (30,932) |
Total loans receivable, net of allowance for loan losses | 8,523,651 | 8,234,137 | ||
Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 3,502,381 | 3,214,999 | ||
Allowance for loan losses | (12,168) | (11,602) | (12,016) | |
Total loans receivable, net of allowance for loan losses | 226,900 | |||
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 85,393 | 64,789 | ||
Allowance for loan losses | (979) | (840) | (1,074) | |
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 234,090 | 193,502 | ||
Allowance for loan losses | (2,929) | (3,342) | (3,298) | |
Total loans receivable, net of allowance for loan losses | 191,600 | |||
Manufactured housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 90,227 | 101,730 | ||
Allowance for loan losses | (180) | (286) | (494) | |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 3,547 | 3,483 | ||
Allowance for loan losses | (172) | (118) | $ (133) | |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 6,440,311 | 5,855,846 | ||
Commercial | Mortgage Warehouse | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,793,408 | 2,116,815 | ||
Commercial | Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 3,502,381 | 3,214,999 | ||
Commercial | Commercial and industrial (including owner occupied commercial real estate) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,633,818 | 1,382,343 | ||
Commercial | Commercial real estate non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,218,719 | 1,193,715 | ||
Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 85,393 | 64,789 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 327,864 | 298,715 | ||
Consumer | Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 234,090 | 193,502 | ||
Consumer | Manufactured housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 90,227 | 101,730 | ||
Consumer | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 3,547 | $ 3,483 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Narrative (Detail) | Jul. 11, 2016USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2014Allowance | Dec. 31, 2017USD ($)AllowanceCommitmentLoan | Dec. 31, 2016USD ($)AllowanceCommitmentLoan | Dec. 31, 2015USD ($)CommitmentLoan |
Financing Receivable, Modifications [Line Items] | ||||||||
Loans held for sale, average life from purchase to sale (days) | 22 days | |||||||
Loans receivable, net of allowance for loan losses, carrying value | $ 8,523,651,000 | $ 8,234,137,000 | ||||||
Available funds for reimbursement | 600,000 | 1,000,000 | ||||||
Individually evaluated for impairment | 38,435,000 | 29,411,000 | ||||||
Troubled debt restructurings loans | $ 20,400,000 | $ 16,400,000 | $ 11,400,000 | |||||
Minimum performance requirement (months) | 6 months | |||||||
Sustained performance period (months) | 6 months | |||||||
Commitments to lend additional funds to debtors | Commitment | 0 | 0 | 0 | |||||
Number of Loans | Loan | 40 | 64 | 162 | |||||
Number of TDR loans that defaulted on payments | Loan | 11 | |||||||
TDR modification (allowance) | Allowance | 0 | 3 | ||||||
Payments for termination to FDIC | $ 1,400,000 | |||||||
Mortgage loans on real estate, loans acquired | $ 90,000,000 | $ 174,200,000 | $ 0 | |||||
Loans held-for-investment, term | 30 years | |||||||
Loans held-for-investment, purchase price as a percentage of loans outstanding | 101.00% | 98.50% | ||||||
Gain (loss) on sales of loans | $ 4,223,000 | $ 3,685,000 | $ 4,047,000 | |||||
Commercial and industrial (including owner occupied commercial real estate) | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
TDR modification (allowance) | Allowance | 2 | |||||||
Allowance for TDR modification | $ 200,000 | |||||||
Commercial real estate non-owner occupied | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
TDR modification (allowance) | Allowance | 1 | |||||||
Allowance for TDR modification | $ 100,000 | |||||||
Commercial and industrial | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Individually evaluated for impairment | 17,461,000 | 8,516,000 | ||||||
Other | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Individually evaluated for impairment | 30,000 | 57,000 | ||||||
Manufactured housing | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Individually evaluated for impairment | $ 10,089,000 | $ 9,665,000 | ||||||
Number of Loans | Loan | 36 | 58 | 156 | |||||
Number of TDR loans that defaulted on payments | Loan | 5 | 8 | ||||||
Amount of TDR loans that defaulted on payments | $ 200,000 | $ 200,000 | $ 300,000 | |||||
Commercial real estate - non-owner occupied | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Individually evaluated for impairment | $ 160,000 | $ 2,151,000 | ||||||
Number of Loans | Loan | 0 | 1 | 1 | |||||
Number of TDR loans that defaulted on payments | Loan | 1 | |||||||
Amount of TDR loans that defaulted on payments | $ 1,800,000 | |||||||
Residential real estate | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans receivable, net of allowance for loan losses, carrying value | $ 191,600,000 | |||||||
Individually evaluated for impairment | $ 9,247,000 | $ 6,972,000 | ||||||
Number of Loans | Loan | 0 | 4 | 2 | |||||
Number of TDR loans that defaulted on payments | Loan | 1 | |||||||
Amount of TDR loans that defaulted on payments | $ 100,000 | |||||||
Gain (loss) on sales of loans | $ 200,000 | |||||||
Multi-family | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans receivable, net of allowance for loan losses, carrying value | 226,900,000 | |||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Gain (loss) on sales of loans | $ 400,000 | |||||||
Commercial | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Gain (loss) on sales of loans | 100,000 | |||||||
Troubled Debt Restructurings | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Sustained performance period (months) | 9 months | |||||||
Residential Real Estate | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Other real estate owned | $ 300,000 | 500,000 | ||||||
Foreclosure loans | 1,600,000 | 400,000 | ||||||
Commercial and industrial (including owner occupied commercial real estate) | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans receivable, net of allowance for loan losses, carrying value | $ 3,900,000 | |||||||
Number of TDR loans that defaulted on payments | Loan | 1 | |||||||
Amount of TDR loans that defaulted on payments | $ 2,100,000 | |||||||
Gain (loss) on sales of loans | $ 100,000 | |||||||
Number of loans | Loan | 1 | |||||||
Small Business Administration Loan | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans receivable, net of allowance for loan losses, carrying value | $ 35,800,000 | 33,300,000 | ||||||
Gain (loss) on sales of loans | $ 3,500,000 | 3,700,000 | ||||||
Manufactured Housing | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
TDR modification (allowance) | Allowance | 1 | |||||||
Allowance for TDR modification | $ 1,000 | |||||||
Commercial | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans receivable, net of allowance for loan losses, carrying value | 5,700,000 | |||||||
Federal Home Loan Bank of Pittsburgh | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans pledged as collateral | $ 5,500,000,000 | 4,800,000,000 | ||||||
Held and Used | Commercial and industrial | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans receivable, net of allowance for loan losses, carrying value | 11,500,000 | |||||||
Held and Used | Other | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Loans receivable, net of allowance for loan losses, carrying value | $ 700,000 | |||||||
Principal Forgiveness | ||||||||
Financing Receivable, Modifications [Line Items] | ||||||||
Number of Loans | Loan | 0 | 0 | 0 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Loans by Type and Performance Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | $ 19,813 | $ 24,063 |
Non-Accrual | 26,415 | 17,792 |
Current | 6,695,032 | 6,080,136 |
Total loans | 6,768,175 | 6,154,561 |
Loans receivable, at amortized cost or lower of cost or market | $ 6,768,175 | 6,154,561 |
Due days for loan payments (days) | 30 days | |
Delinquent period (days) | 90 days | |
30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | $ 17,070 | 21,250 |
90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,743 | 2,813 |
Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 26,915 | 32,570 |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 4,900 | 12,573 |
Non-Accrual | 0 | 0 |
Current | 3,495,600 | 3,200,322 |
Total loans | 3,502,381 | 3,214,999 |
Multi-family | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 4,900 | 12,573 |
Multi-family | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Multi-family | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 1,881 | 2,104 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 103 | 350 |
Non-Accrual | 17,392 | 8,443 |
Current | 1,130,831 | 978,881 |
Total loans | 1,149,090 | 988,711 |
Commercial and industrial | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 103 | 350 |
Commercial and industrial | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Commercial and industrial | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 764 | 1,037 |
Commercial real estate - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 202 | 137 |
Non-Accrual | 1,453 | 2,039 |
Current | 472,501 | 379,227 |
Total loans | 484,728 | 393,632 |
Commercial real estate - owner occupied | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 202 | 137 |
Commercial real estate - owner occupied | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Commercial real estate - owner occupied | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 10,572 | 12,229 |
Commercial real estate - non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 93 | 0 |
Non-Accrual | 160 | 2,057 |
Current | 1,213,216 | 1,185,331 |
Total loans | 1,218,719 | 1,193,715 |
Commercial real estate - non-owner occupied | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 93 | 0 |
Commercial real estate - non-owner occupied | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Commercial real estate - non-owner occupied | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 5,250 | 6,327 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Current | 85,393 | 64,789 |
Total loans | 85,393 | 64,789 |
Construction | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Construction | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Construction | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 0 | 0 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 7,628 | 4,417 |
Non-Accrual | 5,420 | 2,959 |
Current | 215,361 | 178,559 |
Total loans | 234,090 | 193,502 |
Residential real estate | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 7,628 | 4,417 |
Residential real estate | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Residential real estate | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 5,681 | 7,567 |
Manufactured housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 6,771 | 6,574 |
Non-Accrual | 1,959 | 2,236 |
Current | 78,946 | 89,850 |
Total loans | 90,227 | 101,730 |
Manufactured housing | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 4,028 | 3,761 |
Manufactured housing | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,743 | 2,813 |
Manufactured housing | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | 2,551 | 3,070 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 116 | 12 |
Non-Accrual | 31 | 58 |
Current | 3,184 | 3,177 |
Total loans | 3,547 | 3,483 |
Other | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 116 | 12 |
Other | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Other | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchased Credit-Impaired Loans | $ 216 | $ 236 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Schedule of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | $ 37,315 | $ 35,647 | $ 30,932 | ||
Charge-offs | (7,127) | (4,405) | (13,412) | ||
Recoveries | 1,059 | 2,743 | 1,433 | ||
Provision for loan losses | 6,768 | 3,330 | 16,694 | ||
Ending Balance | 38,015 | 37,315 | 35,647 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | $ 38,435 | $ 29,411 | |||
Collectively evaluated for impairment | 6,702,825 | 6,092,580 | |||
Loans receivable, at amortized cost or lower of cost or market | 6,768,175 | 6,154,561 | |||
Allowance for loan losses, individually evaluated for impairment | 1,451 | 1,360 | |||
Allowance for loan losses, collectively evaluated for impairment | 32,537 | 31,144 | |||
Total allowance for loan losses | 37,315 | 35,647 | 30,932 | 38,015 | 37,315 |
Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 26,915 | 32,570 | |||
Allowance for loan losses, loans acquired with credit deterioration | 4,027 | 4,811 | |||
Multi-family | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 11,602 | 12,016 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision for loan losses | 566 | (414) | |||
Ending Balance | 12,168 | 11,602 | 12,016 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 3,500,500 | 3,212,895 | |||
Total loans receivable | 3,502,381 | 3,214,999 | |||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||
Allowance for loan losses, collectively evaluated for impairment | 12,168 | 11,602 | |||
Total allowance for loan losses | 11,602 | 12,016 | 12,016 | 12,168 | 11,602 |
Multi-family | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 1,881 | 2,104 | |||
Allowance for loan losses, loans acquired with credit deterioration | 0 | 0 | |||
Commercial and industrial | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 11,050 | 8,864 | |||
Charge-offs | (4,157) | (2,920) | |||
Recoveries | 676 | 381 | |||
Provision for loan losses | 3,349 | 4,725 | |||
Ending Balance | 10,918 | 11,050 | 8,864 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 17,461 | 8,516 | |||
Collectively evaluated for impairment | 1,130,865 | 979,158 | |||
Total loans receivable | 1,149,090 | 988,711 | |||
Allowance for loan losses, individually evaluated for impairment | 650 | 1,024 | |||
Allowance for loan losses, collectively evaluated for impairment | 9,804 | 9,686 | |||
Total allowance for loan losses | 11,050 | 8,864 | 8,864 | 10,918 | 11,050 |
Commercial and industrial | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 764 | 1,037 | |||
Allowance for loan losses, loans acquired with credit deterioration | 464 | 340 | |||
Commercial real estate - owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 2,183 | 1,348 | |||
Charge-offs | (731) | (27) | |||
Recoveries | 9 | 0 | |||
Provision for loan losses | 1,771 | 862 | |||
Ending Balance | 3,232 | 2,183 | 1,348 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 1,448 | 2,050 | |||
Collectively evaluated for impairment | 472,708 | 379,353 | |||
Total loans receivable | 484,728 | 393,632 | |||
Allowance for loan losses, individually evaluated for impairment | 642 | 287 | |||
Allowance for loan losses, collectively evaluated for impairment | 2,580 | 1,896 | |||
Total allowance for loan losses | 2,183 | 1,348 | 1,348 | 3,232 | 2,183 |
Commercial real estate - owner occupied | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 10,572 | 12,229 | |||
Allowance for loan losses, loans acquired with credit deterioration | 10 | 0 | |||
Commercial real estate - non-owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 7,894 | 8,420 | |||
Charge-offs | (486) | (140) | |||
Recoveries | 0 | 130 | |||
Provision for loan losses | 29 | (516) | |||
Ending Balance | 7,437 | 7,894 | 8,420 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 160 | 2,151 | |||
Collectively evaluated for impairment | 1,213,309 | 1,185,237 | |||
Total loans receivable | 1,218,719 | 1,193,715 | |||
Allowance for loan losses, individually evaluated for impairment | 0 | 14 | |||
Allowance for loan losses, collectively evaluated for impairment | 4,630 | 4,626 | |||
Total allowance for loan losses | 7,894 | 8,420 | 8,420 | 7,437 | 7,894 |
Commercial real estate - non-owner occupied | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 5,250 | 6,327 | |||
Allowance for loan losses, loans acquired with credit deterioration | 2,807 | 3,254 | |||
Construction | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 840 | 1,074 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 164 | 1,854 | |||
Provision for loan losses | (25) | (2,088) | |||
Ending Balance | 979 | 840 | 1,074 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 85,393 | 64,789 | |||
Total loans receivable | 85,393 | 64,789 | |||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||
Allowance for loan losses, collectively evaluated for impairment | 979 | 772 | |||
Total allowance for loan losses | 840 | 1,074 | 1,074 | 979 | 840 |
Construction | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 0 | 0 | |||
Allowance for loan losses, loans acquired with credit deterioration | 0 | 68 | |||
Residential real estate | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 3,342 | 3,298 | |||
Charge-offs | (415) | (493) | |||
Recoveries | 72 | 367 | |||
Provision for loan losses | (70) | 170 | |||
Ending Balance | 2,929 | 3,342 | 3,298 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 9,247 | 6,972 | |||
Collectively evaluated for impairment | 219,162 | 178,963 | |||
Total loans receivable | 234,090 | 193,502 | |||
Allowance for loan losses, individually evaluated for impairment | 155 | 35 | |||
Allowance for loan losses, collectively evaluated for impairment | 2,177 | 2,414 | |||
Total allowance for loan losses | 3,342 | 3,298 | 3,298 | 2,929 | 3,342 |
Residential real estate | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 5,681 | 7,567 | |||
Allowance for loan losses, loans acquired with credit deterioration | 597 | 893 | |||
Manufactured housing | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 286 | 494 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision for loan losses | (106) | (208) | |||
Ending Balance | 180 | 286 | 494 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 10,089 | 9,665 | |||
Collectively evaluated for impairment | 77,587 | 88,995 | |||
Total loans receivable | 90,227 | 101,730 | |||
Allowance for loan losses, individually evaluated for impairment | 4 | 0 | |||
Allowance for loan losses, collectively evaluated for impairment | 82 | 88 | |||
Total allowance for loan losses | 286 | 494 | 494 | 180 | 286 |
Manufactured housing | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 2,551 | 3,070 | |||
Allowance for loan losses, loans acquired with credit deterioration | 94 | 198 | |||
Other | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 118 | 133 | |||
Charge-offs | (1,338) | (825) | |||
Recoveries | 138 | 11 | |||
Provision for loan losses | 1,254 | 799 | |||
Ending Balance | 172 | 118 | 133 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 30 | 57 | |||
Collectively evaluated for impairment | 3,301 | 3,190 | |||
Total loans receivable | 3,547 | 3,483 | |||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||
Allowance for loan losses, collectively evaluated for impairment | 117 | 60 | |||
Total allowance for loan losses | $ 118 | $ 133 | $ 133 | 172 | 118 |
Other | Purchased credit impaired loans | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 216 | 236 | |||
Allowance for loan losses, loans acquired with credit deterioration | $ 55 | $ 58 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Summary of Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, total | $ 38,435 | $ 29,411 | |
Unpaid principle balance, total | 39,089 | 30,692 | |
Related allowance | 1,451 | 1,360 | |
Average recorded investment, total | 36,177 | 51,428 | $ 41,091 |
Interest income recognized, total | 1,293 | 2,459 | 2,678 |
Multi-family | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 0 | ||
Recorded investment net of charge offs, with an allowance recorded | 0 | ||
Unpaid principal balance, with no related allowance recorded | 0 | ||
Unpaid principal balance, with an allowance recorded | 0 | ||
Related allowance | 0 | ||
Average recorded investment, with no related allowance recorded | 964 | 267 | |
Average recorded investment, with an allowance recorded | 232 | 0 | |
Interest income recognized, with no related allowance recorded | 53 | 24 | |
Interest income recognized, with an allowance recorded | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 9,138 | 2,396 | |
Recorded investment net of charge offs, with an allowance recorded | 8,323 | 6,120 | |
Unpaid principal balance, with no related allowance recorded | 9,287 | 3,430 | |
Unpaid principal balance, with an allowance recorded | 8,506 | 6,120 | |
Related allowance | 650 | 1,024 | |
Average recorded investment, with no related allowance recorded | 8,865 | 15,424 | 8,543 |
Average recorded investment, with an allowance recorded | 5,984 | 7,028 | 9,331 |
Interest income recognized, with no related allowance recorded | 214 | 804 | 891 |
Interest income recognized, with an allowance recorded | 230 | 436 | 191 |
Commercial real estate - owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 806 | 1,210 | |
Recorded investment net of charge offs, with an allowance recorded | 642 | 840 | |
Unpaid principal balance, with no related allowance recorded | 806 | 1,210 | |
Unpaid principal balance, with an allowance recorded | 642 | 840 | |
Related allowance | 642 | 287 | |
Average recorded investment, with no related allowance recorded | 1,439 | 7,963 | 6,526 |
Average recorded investment, with an allowance recorded | 882 | 173 | 15 |
Interest income recognized, with no related allowance recorded | 70 | 426 | 454 |
Interest income recognized, with an allowance recorded | 0 | 0 | 1 |
Commercial real estate - non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 160 | 2,002 | |
Recorded investment net of charge offs, with an allowance recorded | 149 | ||
Unpaid principal balance, with no related allowance recorded | 272 | 2,114 | |
Unpaid principal balance, with an allowance recorded | 204 | ||
Related allowance | 14 | ||
Average recorded investment, with no related allowance recorded | 898 | 5,265 | 6,605 |
Average recorded investment, with an allowance recorded | 380 | 817 | |
Interest income recognized, with no related allowance recorded | 2 | 155 | 648 |
Interest income recognized, with an allowance recorded | 0 | 12 | |
Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 0 | ||
Unpaid principal balance, with no related allowance recorded | 0 | ||
Average recorded investment, with no related allowance recorded | 0 | 749 | |
Interest income recognized, with no related allowance recorded | 0 | 0 | |
Other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 30 | 57 | |
Recorded investment net of charge offs, with an allowance recorded | 0 | ||
Unpaid principal balance, with no related allowance recorded | 30 | 57 | |
Unpaid principal balance, with an allowance recorded | 0 | ||
Related allowance | 0 | ||
Average recorded investment, with no related allowance recorded | 51 | 47 | 42 |
Average recorded investment, with an allowance recorded | 29 | 83 | |
Interest income recognized, with no related allowance recorded | 0 | 0 | 1 |
Interest income recognized, with an allowance recorded | 0 | 0 | |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 3,628 | 6,682 | |
Recorded investment net of charge offs, with an allowance recorded | 5,619 | 290 | |
Unpaid principal balance, with no related allowance recorded | 3,801 | 6,749 | |
Unpaid principal balance, with an allowance recorded | 5,656 | 303 | |
Related allowance | 155 | 35 | |
Average recorded investment, with no related allowance recorded | 4,617 | 4,567 | 2,254 |
Average recorded investment, with an allowance recorded | 3,307 | 395 | 426 |
Interest income recognized, with no related allowance recorded | 24 | 120 | 86 |
Interest income recognized, with an allowance recorded | 187 | 0 | 2 |
Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 9,865 | 9,665 | |
Recorded investment net of charge offs, with an allowance recorded | 224 | ||
Unpaid principal balance, with no related allowance recorded | 9,865 | 9,665 | |
Unpaid principal balance, with an allowance recorded | 224 | ||
Related allowance | 4 | ||
Average recorded investment, with no related allowance recorded | 10,003 | 8,961 | 5,433 |
Average recorded investment, with an allowance recorded | 131 | ||
Interest income recognized, with no related allowance recorded | 558 | $ 465 | $ 368 |
Interest income recognized, with an allowance recorded | $ 8 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 40 | 64 | 162 |
Recorded Investment | $ | $ 8,071 | $ 6,616 | $ 7,457 |
Extensions of maturity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 5 | 3 | 1 |
Recorded Investment | $ | $ 6,497 | $ 1,995 | $ 183 |
Interest-rate reductions | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 35 | 61 | 161 |
Recorded Investment | $ | $ 1,574 | $ 4,621 | $ 7,274 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 40 | 64 | 162 |
Recorded Investment | $ | $ 8,071 | $ 6,616 | $ 7,457 |
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 4 | 1 | 3 |
Recorded Investment | $ | $ 6,437 | $ 76 | $ 791 |
Commercial real estate - non-owner occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 0 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 1,844 | $ 211 |
Manufactured housing | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 36 | 58 | 156 |
Recorded Investment | $ | $ 1,634 | $ 2,286 | $ 6,251 |
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 0 | 4 | 2 |
Recorded Investment | $ | $ 0 | $ 2,410 | $ 204 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses - Schedule of Accruing and Nonaccrual TDRs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 8,071,000 | $ 6,616,000 | $ 7,457,000 |
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 6,437,000 | 76,000 | 791,000 |
Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 1,634,000 | 2,286,000 | 6,251,000 |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 2,410,000 | 204,000 |
Accruing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 12,021 | 11,526 | 8,270 |
Accruing | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 63 | 73 | 27 |
Accruing | Commercial real estate - owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 12 | 0 |
Accruing | Commercial real estate non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 0 | 0 |
Accruing | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 8,130 | 7,429 | 5,911 |
Accruing | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 3,828 | 4,012 | 2,332 |
Nonaccruing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 8,408 | 4,870 | 3,172 |
Nonaccruing | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,939 | 146 | 518 |
Nonaccruing | Commercial real estate - owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 0 | 0 |
Nonaccruing | Commercial real estate non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 1,945 | 204 |
Nonaccruing | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 1,766 | 2,072 | 2,389 |
Nonaccruing | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 703 | 707 | 61 |
Total | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 20,429 | 16,396 | 11,442 |
Total | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 6,002 | 219 | 545 |
Total | Commercial real estate - owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 12 | 0 |
Total | Commercial real estate non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 1,945 | 204 |
Total | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 9,896 | 9,501 | 8,300 |
Total | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 4,531 | $ 4,719 | $ 2,393 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses - Changes in Accretable Discount Related to Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretable yield balance as of December 31, | $ 10,202 | $ 12,947 | $ 17,606 |
Accretion to interest income | (1,673) | (3,760) | (2,299) |
Reclassification from nonaccretable difference and disposals, net | (704) | 1,015 | (2,360) |
Accretable yield balance as of December 31, | $ 7,825 | $ 10,202 | $ 12,947 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Loan Losses - Schedule of Changes in Allowance for Loans Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 37,315 | $ 35,647 | $ 30,932 |
Provision for loan losses | 6,768 | 3,330 | 16,694 |
Charge-offs | (7,127) | (4,405) | (13,412) |
Recoveries | 1,059 | 2,743 | 1,433 |
Ending Balance | $ 38,015 | $ 37,315 | $ 35,647 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Loan Losses - Schedule of FDIC Loss Sharing Receivable (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FDIC Indemnification Asset [Roll Forward] | |||
Beginning Balance | $ 0 | $ (2,083) | $ 2,320 |
Increased (decreased) estimated cash flows | 0 | 289 | (3,872) |
Increased estimated cash flows from covered OREO | 0 | 0 | 3,138 |
Other activity, net | 0 | (255) | 248 |
Cash receipts from FDIC | 0 | 2,049 | (3,917) |
Ending Balance | 0 | 0 | (2,083) |
Provision for loan losses | 6,768 | 3,330 | 16,694 |
Effect attributable to FDIC loss sharing arrangements | 0 | (289) | 3,872 |
Net amount reported as provision for loan losses | $ 6,768 | $ 3,041 | $ 20,566 |
Loans Receivable and Allowan_14
Loans Receivable and Allowance for Loan Losses - Credit Quality Tables for Loans Receivable Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 6,768,175 | $ 6,154,561 |
Loans receivable, at amortized cost or lower of cost or market | 6,768,175 | 6,154,561 |
Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 6,300,595 | 5,755,196 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 99,279 | 56,939 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 40,437 | 43,711 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 305,939 | 286,252 |
Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 21,925 | 12,463 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,502,381 | 3,214,999 |
Multi-family | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,438,554 | 3,198,290 |
Multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 53,873 | 0 |
Multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 9,954 | 16,709 |
Multi-family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Multi-family | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,149,090 | 988,711 |
Commercial and industrial | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,118,889 | 954,846 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 7,652 | 19,552 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 22,549 | 14,313 |
Commercial and industrial | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and industrial | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate - owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 484,728 | 393,632 |
Commercial real estate - owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 471,826 | 375,919 |
Commercial real estate - owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 5,987 | 12,065 |
Commercial real estate - owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 6,915 | 5,648 |
Commercial real estate - owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate - owner occupied | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate - non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,218,719 | 1,193,715 |
Commercial real estate - non-owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,185,933 | 1,175,850 |
Commercial real estate - non-owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 31,767 | 10,824 |
Commercial real estate - non-owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,019 | 7,041 |
Commercial real estate - non-owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate - non-owner occupied | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 85,393 | 64,789 |
Construction | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 85,393 | 50,291 |
Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 14,498 |
Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 234,090 | 193,502 |
Residential real estate | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 221,042 | 189,919 |
Residential real estate | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 13,048 | 3,583 |
Manufactured housing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 90,227 | 101,730 |
Manufactured housing | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured housing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured housing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured housing | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 81,497 | 92,920 |
Manufactured housing | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 8,730 | 8,810 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,547 | 3,483 |
Other | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Other | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,400 | 3,413 |
Other | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 147 | $ 70 |
Bank Premises and Equipment - C
Bank Premises and Equipment - Components of Bank Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 28,983 | $ 27,440 |
Accumulated depreciation and amortization | (17,028) | (14,671) |
Total | 11,955 | 12,769 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 14,028 | 13,690 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 25 years | |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 6,447 | 6,138 |
Furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 10 years | |
IT equipment | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 8,002 | 7,106 |
IT equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 3 years | |
IT equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 5 years | |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 506 | $ 506 |
Automobiles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 3 years | |
Automobiles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 5 years |
Bank Premises and Equipment - N
Bank Premises and Equipment - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation, occupancy and amortization of leasehold improvement | $ 2.8 | $ 2.5 | $ 2.2 |
Rent expense | $ 5.2 | $ 4.7 | $ 3.8 |
Bank Premises and Equipment - F
Bank Premises and Equipment - Future Minimum Rental Commitments Under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 5,499 |
2,019 | 4,837 |
2,020 | 4,192 |
2,021 | 3,609 |
2,022 | 2,989 |
Thereafter | 6,431 |
Total minimum payments | $ 27,557 |
Deposits - Components of Deposi
Deposits - Components of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits, by Component, Alternative [Abstract] | ||
Demand, non-interest bearing | $ 1,052,115 | $ 966,058 |
Demand, interest bearing | 523,848 | 339,398 |
Savings, including money market deposit accounts | 3,318,486 | 3,166,557 |
Time, $100,000 and over | 1,284,855 | 2,106,905 |
Time, other | 620,838 | 724,857 |
Total deposits | $ 6,800,142 | $ 7,303,775 |
Deposits - Narrative (Detail)
Deposits - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Time Deposits [Line Items] | ||
Demand, non-interest bearing | $ 1,052,115 | $ 966,058 |
Savings, including money market deposit accounts | 3,318,486 | 3,166,557 |
Time deposits greater than $250,000 | 800,000 | 1,200,000 |
Brokered money market deposits | 654,800 | 972,200 |
Brokered certificates of deposit | 504,300 | 721,900 |
Demand deposit overdrafts reclassified as loans | $ 2,000 | 12,300 |
Held and Used | ||
Time Deposits [Line Items] | ||
Demand, non-interest bearing | 453,400 | |
Savings, including money market deposit accounts | $ 3,400 |
Deposits - Schedule of Time Dep
Deposits - Schedule of Time Deposit Maturities (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Time Deposits, Rolling Year Maturity [Abstract] | |
2,018 | $ 1,453,519 |
2,019 | 279,490 |
2,020 | 61,133 |
2,021 | 89,939 |
2,022 | 21,503 |
Thereafter | 109 |
Total time deposits | $ 1,905,693 |
Borrowings - Short Term Borrowi
Borrowings - Short Term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
FHLB advances | $ 1,611,860 | $ 688,800 |
Federal funds purchased | 155,000 | 83,000 |
Total short-term debt | $ 1,766,860 | $ 771,800 |
FHLB advances, rate | 1.47% | 0.85% |
Federal funds purchased, rate | 1.50% | 0.74% |
Borrowings - Summary of Bancorp
Borrowings - Summary of Bancorps Short Term Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FHLB Advances | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 2,283,250 | $ 1,697,800 | $ 1,365,300 |
Average balance during the year | $ 1,415,755 | $ 965,293 | $ 844,835 |
Weighted-average interest rate during the year | 1.44% | 0.95% | 0.60% |
Federal Funds Purchased | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 238,000 | $ 137,000 | $ 85,000 |
Average balance during the year | $ 163,466 | $ 84,514 | $ 41,397 |
Weighted-average interest rate during the year | 1.19% | 0.58% | 0.35% |
Borrowings - Narrative (Detail)
Borrowings - Narrative (Detail) - USD ($) | Jun. 26, 2014 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2013 | Aug. 31, 2013 |
Debt Instrument [Line Items] | ||||||
FHLB advances | $ 1,611,860,000 | $ 868,800,000 | ||||
Year three, amount | $ 180,000,000 | |||||
Year three, rate | 1.32% | |||||
Total borrowing capacity with the Federal Home Loan Bank | 4,300,000,000 | $ 4,100,000,000 | ||||
Total borrowing capacity with the Federal Reserve Bank of Philadelphia | 142,500,000 | 158,600,000 | ||||
Qualifying Loans | ||||||
Debt Instrument [Line Items] | ||||||
Qualifying loans | $ 5,500,000,000 | 4,800,000,000 | ||||
FHLB Fixed Rate Advances | ||||||
Debt Instrument [Line Items] | ||||||
FHLB advances | 170,000,000 | |||||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Issue of subordinated term note | $ 25,000,000 | $ 100,000,000 | ||||
Face amount, percentage | 99.775% | |||||
Interest rate, effective percentage | 4.00% | |||||
Senior unsecured notes, interest rate | 3.95% | |||||
Proceeds from issuance of debt | $ 98,600,000 | |||||
Subordinated debt, average interest rate for the year | 4.625% | |||||
Senior Notes | Senior Notes Due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Issue of subordinated term note | $ 63,300,000 | |||||
Senior unsecured notes, interest rate | 6.375% | |||||
Senior unsecured notes aggregate amount | $ 63,300,000 | |||||
Senior Subordinated Notes | ||||||
Debt Instrument [Line Items] | ||||||
Issue of subordinated term note | $ 110,000,000 | |||||
Subordinated debt, average interest rate for the year | 6.125% | |||||
Subordinated debt, basis spread on variable rate | 3.443% | |||||
Redemption price, percent of principal balance | 100.00% | |||||
Federal Funds Purchased | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate availability under federal funds line | $ 310,000,000 | $ 237,000,000 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Detail) $ / shares in Units, $ in Millions | Dec. 15, 2017$ / shares | Sep. 15, 2017$ / shares | Jun. 15, 2017$ / shares | Mar. 15, 2017$ / shares | Dec. 15, 2016$ / shares | Nov. 09, 2016USD ($)$ / sharesshares | Sep. 16, 2016USD ($)$ / sharesshares | Sep. 15, 2016$ / shares | Aug. 11, 2016USD ($)shares | Jun. 15, 2016$ / shares | Apr. 28, 2016USD ($)$ / sharesshares | Mar. 15, 2016$ / shares | Jan. 29, 2016USD ($)$ / sharesshares | May 18, 2015USD ($)$ / sharesshares | Dec. 31, 2017series$ / sharesshares | Dec. 31, 2016$ / sharesshares | Dec. 31, 2015shares | Nov. 30, 2013 |
Capital Unit [Line Items] | ||||||||||||||||||
Percent of outstanding shares authorized for repurchase | 5.00% | |||||||||||||||||
Premium percent over current book value | 20.00% | |||||||||||||||||
Stock repurchases (shares) | shares | 0 | 0 | 0 | |||||||||||||||
Warrants outstanding to purchase common stock (shares) | shares | 35,187 | 184,706 | ||||||||||||||||
Share price | $ 21.38 | |||||||||||||||||
Number of preferred stock series outstanding | series | 4 | |||||||||||||||||
Preferred stock, par value (usd per share) | $ 1 | $ 1 | ||||||||||||||||
Minimum | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Purchase price of common stock (usd per share) | 9.55 | 9.55 | ||||||||||||||||
Maximum | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Purchase price of common stock (usd per share) | $ 73.01 | $ 73.01 | ||||||||||||||||
Series F Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, dividends paid (usd per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.370833 | |||||||||||||
Series E Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, dividends paid (usd per share) | 0.403125 | 0.403125 | 0.403125 | 0.403125 | 0.403125 | $ 0.403125 | $ 0.210521 | |||||||||||
Series D Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, dividends paid (usd per share) | 0.40625 | 0.40625 | 0.40625 | 0.40625 | 0.40625 | 0.40625 | 0.40625 | $ 0.2076 | ||||||||||
Series C Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, redemption price (usd per share) | $ 25 | |||||||||||||||||
Preferred stock, dividends paid (usd per share) | $ 0.4375 | $ 0.4375 | $ 0.4375 | $ 0.4375 | $ 0.4375 | $ 0.4375 | $ 0.4375 | $ 0.4375 | ||||||||||
Public Stock Offering | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction (shares) | shares | 2,415,000 | |||||||||||||||||
Sale of stock, price per share (USD per share) | $ 25 | |||||||||||||||||
Sale of stock, consideration received | $ | $ 58.3 | |||||||||||||||||
Public Stock Offering | Series F Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction (shares) | shares | 3,400,000 | |||||||||||||||||
Sale of stock, price per share (USD per share) | $ 25 | |||||||||||||||||
Sale of stock, consideration received | $ | $ 82.2 | |||||||||||||||||
Preferred stock, par value (usd per share) | $ 1 | |||||||||||||||||
Preferred stock, fixed dividend rate | 6.00% | |||||||||||||||||
Public Stock Offering | Series F Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, floating dividend rate | 4.762% | |||||||||||||||||
Public Stock Offering | Series E Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction (shares) | shares | 2,300,000 | |||||||||||||||||
Sale of stock, price per share (USD per share) | $ 25 | |||||||||||||||||
Sale of stock, consideration received | $ | $ 55.6 | |||||||||||||||||
Preferred stock, par value (usd per share) | $ 1 | |||||||||||||||||
Preferred stock, fixed dividend rate | 6.45% | |||||||||||||||||
Public Stock Offering | Series E Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, floating dividend rate | 5.14% | |||||||||||||||||
Public Stock Offering | Series D Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction (shares) | shares | 1,000,000 | |||||||||||||||||
Sale of stock, price per share (USD per share) | $ 25 | |||||||||||||||||
Sale of stock, consideration received | $ | $ 24.1 | |||||||||||||||||
Preferred stock, par value (usd per share) | $ 1 | |||||||||||||||||
Preferred stock, fixed dividend rate | 6.50% | |||||||||||||||||
Public Stock Offering | Series D Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, floating dividend rate | 5.09% | |||||||||||||||||
Public Stock Offering | Series C Preferred Stock | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction (shares) | shares | 2,300,000 | |||||||||||||||||
Sale of stock, price per share (USD per share) | $ 25 | |||||||||||||||||
Sale of stock, consideration received | $ | $ 55.6 | |||||||||||||||||
Preferred stock, par value (usd per share) | $ 1 | |||||||||||||||||
Preferred stock, fixed dividend rate | 7.00% | |||||||||||||||||
Public Stock Offering | Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Preferred stock, floating dividend rate | 5.30% | |||||||||||||||||
At Market Issuance Sales Agreement | ||||||||||||||||||
Capital Unit [Line Items] | ||||||||||||||||||
Sale of stock, number of shares issued in transaction (shares) | shares | 219,386 | |||||||||||||||||
Sale of stock, consideration received | $ | $ 5.5 | |||||||||||||||||
Common stock, offering price | $ | $ 50 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Detail) | 12 Months Ended | ||||||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)SERP_retirement_age | Dec. 31, 2017USD ($)year | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Retirement Benefits [Abstract] | |||||||
Employers matching contribution | 50.00% | ||||||
Employees first contribution | 6.00% | ||||||
401(k) profit sharing plan, employers matching contribution amount | $ 1,900,000 | $ 1,600,000 | $ 1,100,000 | ||||
SERP annual retirement benefits period (years) | 15 years | ||||||
SERP retirement age | 65 | 65 | |||||
SERP target annual retirement benefit | $ 300,000 | 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | ||
SERP annual rate of return | 7.00% | ||||||
SERP present value of the amount owed | $ 4,600,000 | $ 4,600,000 | $ 4,600,000 | $ 4,600,000 | $ 4,600,000 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Narrative (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2012requirement$ / shares | Dec. 31, 2017USD ($)year$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum exercisable period for stock options (years) | 10 years | ||||
Participant vested in an annual deferral accounts | 100.00% | ||||
Involuntary termination age (year) | year | 65 | ||||
Employee stock purchase plan expense | $ | $ 6,100 | $ 6,200 | $ 4,900 | ||
Nonvested awards, compensation cost not yet recognized | $ | $ 19,800 | ||||
Options granted subject to certain conditions in order for them to become exercisable (shares) | 650,000 | ||||
Vesting requirement share price during vesting period | $ / shares | $ 40 | ||||
Trading days of voting common stock for vesting requirement | 5 days | 10 days | |||
Cash received from exercise of options | $ | $ 2,000 | ||||
Number of vesting requirements | requirement | 2 | ||||
Second vesting requirement for voting common stock (usd per share) | $ / shares | $ 17.18 | ||||
Director | Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Voting common stock issued (shares) | 31,962 | ||||
Voting common stock issued | $ | $ 900 | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (years) | 5 years | ||||
Options expiration date (years) | 10 years | ||||
Service requirement (years) | 5 years | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of exercisable stock options (shares) | 96,963 | ||||
Number of shares granted (shares) | 776,500 | ||||
Tax benefit from exercise of options | $ | $ 10,200 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (years) | 3 years | ||||
Number of units vested (shares) | 256,078 | ||||
Number of restricted stock units granted (shares) | 218,449 | ||||
Restricted stock units vesting percentage per year | 33.33% | ||||
Minimum | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (years) | 3 years | ||||
Maximum | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (years) | 5 years | ||||
2010 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fully diluted tangible book value | 50.00% | ||||
Maximum number of shares that may be issued under 2010 plan (shares) | 3,666,667 | ||||
2004 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum number of shares that may be issued under 2014 plan (shares) | 2,750,000 | ||||
Aggregate number of shares of common stock available for grant (shares) | 1,621,444 | ||||
2004 Plan | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of units vested (shares) | 375,402 | ||||
Number of restricted stock units granted (shares) | 177,205 | ||||
BRRP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units outstanding (shares) | 263,517 | ||||
BRRP | Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (years) | 5 years | ||||
Number of restricted stock units granted (shares) | 41,244 | ||||
BRRP | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Receipt deferral percentage under BRRP plan | 25.00% | ||||
BRRP | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Receipt deferral percentage under BRRP plan | 50.00% | ||||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock purchase plan expense | $ | $ 132 | $ 103 | $ 80 | ||
Purchase price under employee stock purchase plan (percent) | 85.00% | 85.00% | |||
Purchase price under employee stock purchase plan, discount (percent) | 15.00% | 15.00% |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Statement of Weighted-Average Assumptions Used and Resulting Weighted-Average Fair Value of Option (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average risk-free interest rate | 2.35% | 1.84% | 1.90% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average expected volatility | 25.05% | 23.39% | 21.18% |
Weighted-average expected life (in years) | 7 years | 7 years | 7 years |
Weighted-average fair value of each option granted (usd per share) | $ 8.68 | $ 7.61 | $ 6.42 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Summary of Stock Option Activity (Detail) - Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares, outstanding, beginning balance | shares | 3,960,040 |
Number of shares, granted | shares | 776,500 |
Number of shares, exercised | shares | (2,007,762) |
Number of shares, expired | shares | (7,334) |
Number of shares, forfeited | shares | (2,750) |
Number of shares, outstanding, ending balance | shares | 2,718,694 |
Exercisable at December 31, 2017 | shares | 96,963 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price, outstanding (usd per share), beginning balance | $ / shares | $ 15.25 |
Weighted-average exercise price, issued (usd per share) | $ / shares | 26.92 |
Weighted-average exercise price, exercised (usd per share) | $ / shares | 11.30 |
Weighted-average exercise price, expired (usd per share) | $ / shares | 10.91 |
Weighted-average exercise price, forfeited (usd per share) | $ / shares | 17.65 |
Weighted-average exercise price, outstanding (usd per share), ending balance | $ / shares | 21.52 |
Weighted-average exercise price, exercisable (usd per share) | $ / shares | $ 12.42 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted-average remaining contractual term in years, outstanding (years) | 7 years 6 months 14 days |
Weighted-average remaining contractual term in years, exercisable (years) | 4 years 22 days |
Aggregate intrinsic value, exercised | $ | $ 32,029 |
Aggregate intrinsic value, outstanding | $ | 12,887 |
Aggregate intrinsic value, exercisable | $ | $ 1,317 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Non-Vested Options (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Non-Vested Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, outstanding, beginning balance | shares | 2,865,962 |
Number of shares, granted | shares | 776,500 |
Number of shares, forfeited | shares | (2,750) |
Number of shares, outstanding, ending balance | shares | 2,621,731 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average exercise price, outstanding (usd per share), beginning balance | $ / shares | $ 17.24 |
Weighted-average exercise price, granted (usd per share) | $ / shares | 26.92 |
Weighted-average exercise price, forfeited (usd per share) | $ / shares | 17.65 |
Weighted-average exercise price, outstanding (usd per share), ending balance | $ / shares | $ 21.85 |
Vested Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, vested | shares | (1,017,981) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average exercise price, vested (usd per share) | $ / shares | $ 12.77 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - Status of Restricted Stock (Detail) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted Stock Units, outstanding and unvested, beginning balance | shares | 645,505 |
Restricted Stock Units, granted | shares | 218,449 |
Restricted Stock Units, vested | shares | (256,078) |
Restricted Stock Units, forfeited | shares | (17,840) |
Restricted Stock Units, outstanding and unvested, ending balance | shares | 590,036 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant-date fair value, outstanding and unvested (usd per share), beginning balance | $ / shares | $ 19.43 |
Weighted-average grant-date fair value, granted (usd per share) | $ / shares | 29.93 |
Weighted-average grant-date fair value, vested (usd per share) | $ / shares | 15.70 |
Weighted-average grant-date fair value, forfeited (usd per share) | $ / shares | 25.85 |
Weighted-average grant-date fair value, outstanding and unvested (usd per share), ending balance | $ / shares | $ 24.74 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Current | $ 29,924 | $ 48,472 | $ 40,004 | ||||||||
Deferred | 15,118 | (2,579) | (10,092) | ||||||||
Income tax expense | $ 10,806 | $ 14,899 | $ 12,327 | $ 7,009 | $ 9,320 | $ 14,558 | $ 12,963 | $ 9,052 | $ 45,042 | $ 45,893 | $ 29,912 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Line Items] | |||||
Federal income tax at statutory rate | 21.00% | 35.00% | 35.00% | 35.00% | 35.00% |
Percentage of tax position will realized or sustained upon examination | 50.00% | ||||
Valuation allowance on deferred tax assets | $ 0 | $ 0 | |||
Unrecognized tax benefits | $ 0 | $ 0 | |||
Deferred tax asset, provisional income tax expense | $ 5,500,000 | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Percentage of tax position will realized or sustained upon examination | 50.00% | ||||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryovers | $ 6,000,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||
Federal income tax at statutory rate, amount | $ 43,357 | $ 43,608 | $ 30,973 | ||||||||||
State income tax, amount | 3,835 | 4,548 | 1,434 | ||||||||||
Tax-exempt interest, net of disallowance amount | (381) | (237) | (277) | ||||||||||
Bank-owned life insurance, amount | (2,675) | (1,716) | (2,422) | ||||||||||
Share-based compensation, amount | (10,741) | (3,659) | 0 | ||||||||||
Unrecorded basis difference in foreign subsidiary, amount | 4,527 | 2,830 | 0 | ||||||||||
Enactment of federal tax reform, amount | 5,505 | ||||||||||||
Other, amount | 961 | 519 | 204 | ||||||||||
Income tax expense | $ 10,806 | $ 14,899 | $ 12,327 | $ 7,009 | $ 9,320 | $ 14,558 | $ 12,963 | $ 9,052 | $ 45,042 | $ 45,893 | $ 29,912 | ||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||||
Federal income tax at statutory rate, percentage of pretax income | 21.00% | 35.00% | 35.00% | 35.00% | 35.00% | ||||||||
State income tax, percentage of pretax income | 3.10% | 3.65% | 1.62% | ||||||||||
Tax-exempt interest, net of disallowance percentage of pretax income | (0.31%) | (0.19%) | (0.31%) | ||||||||||
Bank-owned life insurance, percentage of pretax income | (2.16%) | (1.38%) | (2.73%) | ||||||||||
Share-based compensation, percentage of pretax income | (8.67%) | (2.94%) | 0.00% | ||||||||||
Unrecorded basis difference in foreign subsidiary, percentage of pretax income | 3.65% | 2.27% | 0.00% | ||||||||||
Enactment of federal tax reform, percentage of pretax income | 4.44% | ||||||||||||
Other, percentage of pretax income | 0.78% | 0.42% | 0.22% | ||||||||||
Effective income tax rate, percentage of pretax income | 36.36% | 36.83% | 33.80% | ||||||||||
Executive Officer | |||||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||||
Share-based compensation, amount | $ 654 | ||||||||||||
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||||
Share-based compensation, percentage of pretax income | 0.53% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Allowance for loan losses | $ 9,738 | $ 14,540 |
Net unrealized losses on securities | 512 | 1,714 |
OREO expenses | 748 | 1,233 |
Non-accrual interest | 515 | 589 |
Net operating losses | 1,199 | 2,137 |
Deferred compensation | 1,181 | 1,523 |
Equity-based compensation | 2,748 | 5,548 |
Cash flow hedge | 84 | 1,413 |
Incentive compensation | 634 | 3,041 |
Net deferred loan fees | 47 | 0 |
Other | 2,215 | 1,972 |
Total deferred tax assets | 19,621 | 33,710 |
Deferred tax liabilities | ||
Fair value adjustments on acquisitions | (618) | (1,039) |
Net deferred loan fees | 0 | (1,090) |
Bank premises and equipment | (986) | (713) |
Lease adjustments | (4,899) | (206) |
Other | (980) | (1,173) |
Total deferred tax liabilities | (7,483) | (4,221) |
Net deferred tax asset | $ 12,138 | $ 29,489 |
Transactions with Executive O_3
Transactions with Executive Officers, Directors, and Principal Shareholders - Schedule of Activity Relating to Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance as of December 31, | $ 238 | $ 220 | $ 9 |
Additions | 99 | 1,160 | 2,218 |
Repayments | (337) | (1,142) | (2,007) |
Balance as of December 31, | $ 0 | $ 238 | $ 220 |
Transactions with Executive O_4
Transactions with Executive Officers, Directors, and Principal Shareholders - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Percentage of gross revenue | 5.00% | |
Percentage of aggregate amount of consolidated assets | 5.00% | |
Director | ||
Related Party Transaction [Line Items] | ||
Related party deposits | $ 10,600,000 | $ 6,400,000 |
Minimum | ||
Related Party Transaction [Line Items] | ||
Percentage of participation in equity | 10.00% | |
Line of Credit | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Available credit line | $ 1,800,000 | 1,800,000 |
Letter of Credit | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Outstanding commitment | 500,000 | |
Unfunded Loan Commitment | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Commitment to provide short-term commercial real estate financing | $ 8,000,000 | $ 8,000,000 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance-Sheet Risk - Schedule of Financial Instruments Outstanding Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to fund loans | $ 333,874 | $ 244,784 |
Unfunded commitments to fund mortgage warehouse loans | 1,567,139 | 1,230,596 |
Unfunded commitments under lines of credit | 485,345 | 480,446 |
Letters of credit | 39,890 | 40,223 |
Other unused commitments | $ 6,679 | $ 5,310 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Customers Bancorp, Inc. | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 (to risk-weighted-assets), actual amount | $ 689,494 | $ 628,139 | ||
Tier 1 capital (to risk-weighted assets), actual amount | 906,963 | 844,755 | ||
Total capital (to risk-weighted assets), actual amount | 1,021,601 | 966,097 | ||
Tier 1 capital (to average assets), actual amount | $ 906,963 | $ 844,755 | ||
Common equity Tier 1 (to risk-weighted assets), actual ratio | 8.805% | 8.487% | ||
Tier 1 capital (to risk-weighted assets), actual ratio | 11.583% | 11.414% | ||
Total capital (to risk-weighted assets), actual ratio | 13.047% | 13.053% | ||
Tier 1 capital (to average assets), actual ratio | 8.937% | 9.067% | ||
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes amount | $ 352,368 | $ 333,049 | ||
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes amount | 469,824 | 444,065 | ||
Total capital (to risk-weighted assets), for capital adequacy purposes amount | 626,432 | 592,087 | ||
Tier 1 capital (to average assets), for capital adequacy purposes amount | $ 405,949 | $ 372,652 | ||
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 4.50% | 5.75% | 4.50% | |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 7.25% | 6.00% | |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 9.25% | 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 | $ 450,248 | $ 379,306 | ||
Tier 1 (to risk-weighted assets), for Basel III amount | 567,704 | 490,322 | ||
Total capital (to risk-weighted assets), for Basel III amount | 724,313 | 638,343 | ||
Tier 1 capital (to average assets) for Basel III amount | $ 405,949 | $ 372,652 | ||
Common equity Tier 1 (to risk-weighted assets), for Basel III ratio | 5.75% | 5.125% | ||
Tier 1 capital (to risk-weighted assets), for Basel III ratio | 7.25% | 6.625% | ||
Total capital (to risk-weighted assets), for Basel III ratio | 9.25% | 8.625% | ||
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 (to risk-weighted-assets), actual amount | $ 1,023,564 | $ 857,421 | ||
Tier 1 capital (to risk-weighted assets), actual amount | 1,023,564 | 857,421 | ||
Total capital (to risk-weighted assets), actual amount | 1,170,666 | 1,003,609 | ||
Tier 1 capital (to average assets), actual amount | $ 1,023,564 | $ 857,421 | ||
Common equity Tier 1 (to risk-weighted assets), actual ratio | 13.081% | 11.626% | ||
Tier 1 capital (to risk-weighted assets), actual ratio | 13.081% | 11.626% | ||
Total capital (to risk-weighted assets), actual ratio | 14.961% | 13.608% | ||
Tier 1 capital (to average assets), actual ratio | 10.092% | 9.233% | ||
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes amount | $ 352,122 | $ 331,879 | ||
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes amount | 469,496 | 442,505 | ||
Total capital (to risk-weighted assets), for capital adequacy purposes amount | 625,994 | 590,006 | ||
Tier 1 capital (to average assets), for capital adequacy purposes amount | $ 405,701 | $ 371,466 | ||
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 4.50% | 4.50% | 5.125% | |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 6.00% | 6.625% | |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 8.00% | 8.625% | |
Tier 1 capital (to average assets), for capital adequacy purposes ratio | 4.00% | 4.00% | ||
Common equity Tier 1 (to risk-weighted assets), to be well capitalized under prompt correction action provisions amount | $ 508,621 | $ 479,380 | ||
Tier 1 capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount | 625,994 | 590,006 | ||
Total capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount | 782,493 | 737,508 | ||
Tier 1 capital (to average assets), to be well capitalized under prompt corrective action provisions amount | $ 507,126 | $ 464,333 | ||
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 | $ 449,934 | $ 377,973 | ||
Tier 1 (to risk-weighted assets), for Basel III amount | 567,307 | 488,599 | ||
Total capital (to risk-weighted assets), for Basel III amount | 723,806 | 636,101 | ||
Tier 1 capital (to average assets) for Basel III amount | $ 405,701 | $ 371,466 | ||
Common equity Tier 1 (to risk-weighted assets), for Basel III ratio | 5.75% | 5.125% | ||
Tier 1 capital (to risk-weighted assets), for Basel III ratio | 7.25% | 6.625% | ||
Total capital (to risk-weighted assets), for Basel III ratio | 9.25% | 8.625% | ||
Tier 1 capital (to average assets), for Basel III ratio | 4.00% | 4.00% |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) | Dec. 31, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Jan. 01, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Capital conservation buffer, excess of minimum capital ratio | 2.50% | |||
Maximum buffer, percent of risk weighted assets for 2016 | 0.625% | |||
Maximum buffer, percent of risk weighted assets for 2017 | 1.25% | |||
Maximum buffer, percent of risk weighted assets for 2018 | 1.875% | |||
Maximum buffer, percent of risk weighted assets for 2019 | 2.50% | |||
Customers Bancorp, Inc. | ||||
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% | 5.75% | 4.50% | |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 7.25% | 6.00% | |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 9.25% | 8.00% |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments - Narrative (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Jun. 30, 2017 | Jun. 26, 2014 | Sep. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale, average life from purchase to sale (days) | 22 days | |||
Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior unsecured notes aggregate amount | $ 100,000,000 | $ 25,000,000 | ||
Senior Notes Due 2018 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Senior unsecured notes term (years) | 5 years | |||
Senior unsecured notes aggregate amount | $ 63,300,000 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, carrying value | $ 146,323 | $ 264,709 | $ 264,593 | $ 371,023 |
Cash and cash equivalents, fair value | 146,323 | 264,709 | ||
Investment securities available for sale, fair value | 471,371 | 493,474 | ||
Investment securities, available for sale, fair value | 471,371 | 493,474 | ||
Loans held for sale, carrying value | 146,077 | 695 | ||
Loans held for sale, fair value | 146,251 | 695 | ||
Loans receivable, net of allowance for loan losses, carrying value | 8,523,651 | 8,234,137 | ||
Loans receivable, net of allowance for loan losses, fair value | 8,470,171 | 8,278,835 | ||
FHLB, Federal Reserve Bank and other restricted stock, carrying value | 105,918 | 68,408 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 105,918 | 68,408 | ||
Derivative assets, carrying value | 9,752 | 10,864 | ||
Derivative assets, fair value | 9,752 | 10,864 | ||
Deposits, carrying value | 6,800,142 | 7,303,775 | ||
Deposits, fair value | 6,796,095 | 7,303,663 | ||
Federal funds purchased, carrying value | 155,000 | 83,000 | ||
Federal funds purchased, fair value | 155,000 | 83,000 | ||
FHLB advances, carrying value | 1,611,860 | 868,800 | ||
FHLB advances, fair value | 1,611,603 | 869,049 | ||
Other borrowings, carrying value | 186,497 | 87,123 | ||
Other borrowings, fair value | 193,557 | 91,761 | ||
Subordinated debt, carrying value | 108,880 | 108,783 | ||
Subordinated debt, fair value | 115,775 | 111,375 | ||
Derivative liabilities, carrying value | 10,074 | 14,172 | ||
Derivative liabilities, fair value | 10,074 | 14,172 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 146,323 | 264,709 | ||
Investment securities, available for sale, fair value | 3,352 | 15,246 | ||
Loans held for sale, fair value | 0 | 0 | ||
Loans receivable, net of allowance for loan losses, fair value | 0 | 0 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 0 | 0 | ||
Derivative assets, carrying value | 0 | 0 | ||
Derivative assets, fair value | 0 | 0 | ||
Deposits, fair value | 4,894,449 | 4,472,013 | ||
Federal funds purchased, fair value | 155,000 | 83,000 | ||
FHLB advances, fair value | 881,860 | 688,800 | ||
Other borrowings, fair value | 65,072 | 66,261 | ||
Subordinated debt, fair value | 0 | 0 | ||
Derivative liabilities, carrying value | 0 | 0 | ||
Derivative liabilities, fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 0 | 0 | ||
Investment securities, available for sale, fair value | 468,019 | 478,228 | ||
Loans held for sale, fair value | 1,886 | 695 | ||
Loans receivable, net of allowance for loan losses, fair value | 1,793,408 | 2,116,815 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 105,918 | 68,408 | ||
Derivative assets, carrying value | 9,692 | 10,819 | ||
Derivative assets, fair value | 9,692 | 10,819 | ||
Deposits, fair value | 1,901,646 | 2,831,650 | ||
Federal funds purchased, fair value | 0 | 0 | ||
FHLB advances, fair value | 729,743 | 180,249 | ||
Other borrowings, fair value | 128,485 | 25,500 | ||
Subordinated debt, fair value | 115,775 | 111,375 | ||
Derivative liabilities, carrying value | 10,074 | 14,172 | ||
Derivative liabilities, fair value | 10,074 | 14,172 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 0 | 0 | ||
Investment securities, available for sale, fair value | 0 | 0 | ||
Loans held for sale, fair value | 144,365 | 0 | ||
Loans receivable, net of allowance for loan losses, fair value | 6,676,763 | 6,162,020 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 0 | 0 | ||
Derivative assets, carrying value | 60 | 45 | ||
Derivative assets, fair value | 60 | 45 | ||
Deposits, fair value | 0 | 0 | ||
Federal funds purchased, fair value | 0 | 0 | ||
FHLB advances, fair value | 0 | 0 | ||
Other borrowings, fair value | 0 | 0 | ||
Subordinated debt, fair value | 0 | 0 | ||
Derivative liabilities, carrying value | 0 | 0 | ||
Derivative liabilities, fair value | $ 0 | $ 0 |
Disclosures about Fair Value _5
Disclosures about Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | $ 2,276,417 | $ 2,621,848 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 15,351 | 9,258 |
Impaired loans reserve | 1,451 | 1,360 |
Derivatives | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 9,752 | 10,864 |
Liabilities, recurring fair value measurements | 10,074 | 14,172 |
Loans held for sale – fair value option (as restated) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 1,886 | 695 |
Mortgage Warehouse | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 1,793,408 | 2,116,815 |
Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 13,902 | 6,527 |
Impaired loans reserve | 1,451 | 2,273 |
Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 1,449 | 2,731 |
Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 183,458 | 231,263 |
Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 238,472 | 201,817 |
Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 46,089 | 45,148 |
Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 3,352 | 15,246 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 3,352 | 15,246 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Liabilities, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale – fair value option (as restated) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage Warehouse | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 3,352 | 15,246 |
Significant Other Observable Inputs (Level 2) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 2,273,005 | 2,606,557 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Derivatives | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 9,692 | 10,819 |
Liabilities, recurring fair value measurements | 10,074 | 14,172 |
Significant Other Observable Inputs (Level 2) | Loans held for sale – fair value option (as restated) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 1,886 | 695 |
Significant Other Observable Inputs (Level 2) | Mortgage Warehouse | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 1,793,408 | 2,116,815 |
Significant Other Observable Inputs (Level 2) | Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 183,458 | 231,263 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 238,472 | 201,817 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 46,089 | 45,148 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 60 | 45 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 15,351 | 9,258 |
Significant Unobservable Inputs (Level 3) | Derivatives | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 60 | 45 |
Liabilities, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Loans held for sale – fair value option (as restated) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mortgage Warehouse | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 13,902 | 6,527 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 1,449 | 2,731 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | $ 0 | $ 0 |
Disclosures about Fair Value _6
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 | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at December 31, | $ 45 | $ 45 |
Issuances | 360 | 400 |
Settlements | (345) | (400) |
Balance at December 31, | $ 60 | $ 45 |
Disclosures about Fair Value _7
Disclosures about Fair Value of Financial Instruments - Summary of Financial Assets and Financial Liabilities Measured at Fair Value (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 3,108 | $ 1,726 |
Fair Value Estimate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,431 | |
Other real estate owned | 2,731 | |
Residential mortgage loan commitments | 45 | 60 |
Fair Value Estimate | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 13,902 | |
Other real estate owned | $ 1,449 | |
Fair Value Estimate | Discounted Cash Flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 5,096 | |
Fair value inputs, earnings before interest, taxes, depreciation, and amortization multiple | 4 | |
Impaired loans, net of reserves | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average | 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 | 8.00% | 8.00% |
Mortgages | Adjusted market bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value Inputs, Pull-Through Rate | 90.00% | 90.00% |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)derivativeSwap | Dec. 31, 2016USD ($)derivativeSwap | Dec. 31, 2015USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification from AOCI to interest expense | $ 300,000 | ||
Period for hedging exposure to the variability in future cash flows for forecasted transactions | 24 months | ||
Assets needed for immediate settlement of derivatives in a net liability position | $ 4,400,000 | ||
Minimum collateral with counterparties | $ 4,900,000 | ||
Not Designated as Hedging Instrument | Minimum | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative expiration period | 30 days | ||
Not Designated as Hedging Instrument | Maximum | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative expiration period | 60 days | ||
Not Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of interest rate swaps | Swap | 76 | 76 | |
Derivative notional amount | $ 800,500,000 | $ 716,600,000 | |
Not Designated as Hedging Instrument | Residential mortgage loan commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 2,700,000 | 3,600,000 | |
Not Designated as Hedging Instrument | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | $ 80,500,000 | $ 44,900,000 | |
Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of interest rate swaps | derivative | 4 | ||
Derivative notional amount | $ 325,000,000 | ||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of interest rate swaps | derivative | 9 | 4 | |
Derivative notional amount | $ 550,000,000 | $ 325,000,000 | |
Interest expense | Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | $ (2,634,000) | $ (1,946,000) | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | $ 5,930 | $ 4,723 |
Fair value, derivative liabilities | 5,058 | 9,825 |
Designated as Hedging Instrument | Other assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 816 | 0 |
Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 816 | 0 |
Designated as Hedging Instrument | Other liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 1,140 | 3,624 |
Designated as Hedging Instrument | Other liabilities | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 1,140 | 3,624 |
Not Designated as Hedging Instrument | Other assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 8,936 | 10,864 |
Not Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 8,776 | 10,683 |
Not Designated as Hedging Instrument | Other assets | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 100 | 136 |
Not Designated as Hedging Instrument | Other assets | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 60 | 45 |
Not Designated as Hedging Instrument | Other liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 8,934 | 10,548 |
Not Designated as Hedging Instrument | Other liabilities | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 8,897 | 10,537 |
Not Designated as Hedging Instrument | Other liabilities | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 37 | 11 |
Not Designated as Hedging Instrument | Other liabilities | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in earnings | $ 790 | $ 3,118 | $ 1,876 |
Not Designated as Hedging Instrument | Other non-interest income | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in earnings | 604 | 2,955 | 1,889 |
Not Designated as Hedging Instrument | Other non-interest income | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in earnings | 171 | 163 | (15) |
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 | 15 | 0 | 2 |
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | 406 | (629) | (1,534) |
Designated as Hedging Instrument | Interest expense | Interest Rate Swap | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | $ (2,634) | $ (1,946) | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 9,752 | $ 10,864 |
Interest rate swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Assets | 5,930 | 4,723 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 5,930 | 4,723 |
Financial Instruments | 0 | 0 |
Cash Collateral Received | 5,070 | 0 |
Net Amount | $ 860 | $ 4,723 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 10,074 | $ 14,172 |
Interest rate swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Liabilities | 5,058 | 9,825 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 5,058 | 9,825 |
Financial Instruments | 0 | 0 |
Cash Collateral Pledged | 4,872 | 4,472 |
Net Amount | $ 186 | $ 5,353 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Summary of Condensed Balance Sheets of Parent Company (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash in subsidiary bank | $ 146,323 | $ 264,709 | $ 264,593 | $ 371,023 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other borrowings | 186,497 | 87,123 | ||
Total liabilities | 8,918,591 | 8,526,864 | ||
Shareholders’ equity | 920,964 | 855,872 | 553,902 | 443,145 |
Total liabilities and shareholders’ equity | 9,839,555 | 9,382,736 | ||
Customers Bancorp | ||||
ASSETS | ||||
Cash in subsidiary bank | 67,231 | 54,441 | $ 54,567 | $ 16,465 |
Investments in and receivables due from subsidiaries | 1,039,883 | 883,793 | ||
Other assets | 3,160 | 10,784 | ||
Total assets | 1,110,274 | 949,018 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other borrowings | 186,497 | 87,123 | ||
Other liabilities | 2,813 | 6,023 | ||
Total liabilities | 189,310 | 93,146 | ||
Shareholders’ equity | 920,964 | 855,872 | ||
Total liabilities and shareholders’ equity | $ 1,110,274 | $ 949,018 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Summary of Condensed Income Statements of Parent Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating expense: | |||||||||||
Interest | $ 29,319 | $ 30,266 | $ 25,246 | $ 20,676 | $ 19,481 | $ 19,627 | $ 18,163 | $ 15,771 | $ 105,507 | $ 73,042 | $ 53,560 |
Income tax benefit | (10,806) | (14,899) | (12,327) | (7,009) | (9,320) | (14,558) | (12,963) | (9,052) | (45,042) | (45,893) | (29,912) |
Net income | 78,837 | 78,702 | 58,583 | ||||||||
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 2,552 | 2,062 | 1,286 | 14,459 | 9,515 | 2,493 |
Net income available to common shareholders | $ 18,000 | $ 4,139 | $ 20,107 | $ 22,132 | $ 16,213 | $ 18,655 | $ 17,421 | $ 16,898 | 64,378 | 69,187 | 56,090 |
Comprehensive income | 83,370 | 81,794 | 50,721 | ||||||||
Customers Bancorp | |||||||||||
Operating income: | |||||||||||
Other | 38,200 | 25,400 | 18,545 | ||||||||
Total operating income | 38,200 | 25,400 | 18,545 | ||||||||
Operating expense: | |||||||||||
Interest | 7,984 | 5,854 | 5,854 | ||||||||
Other | 1,742 | 4,570 | 4,604 | ||||||||
Total operating expense | 9,726 | 10,424 | 10,458 | ||||||||
Income before taxes and undistributed income of subsidiaries | 28,474 | 14,976 | 8,087 | ||||||||
Income tax benefit | 3,620 | 3,961 | 3,516 | ||||||||
Income before undistributed income of subsidiaries | 32,094 | 18,937 | 11,603 | ||||||||
Equity in undistributed income of subsidiaries | 46,743 | 59,765 | 46,980 | ||||||||
Net income | 78,837 | 78,702 | 58,583 | ||||||||
Preferred stock dividends | 14,459 | 9,515 | 2,493 | ||||||||
Net income available to common shareholders | $ 64,378 | $ 69,187 | $ 56,090 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Summary of Condensed Statements of Cash Flows of Parent Company (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | |||
Net income | $ 78,837 | $ 78,702 | $ 58,583 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (gain) on sale of investment securities | (8,800) | (25) | 85 |
(Increase) decrease in other assets | (32,256) | (11,538) | (12,024) |
Increase (decrease) in other liabilities | (16,687) | 5,819 | 8,706 |
Cash Flows from Investing Activities: | |||
Proceeds from sales of investment securities available for sale | 769,203 | 2,852 | 806 |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of common stock | 2,716 | 70,985 | 806 |
Net proceeds from issuance of preferred stock | 0 | 161,902 | 55,569 |
Proceeds from issuance of long-term debt | 98,564 | 0 | 0 |
Exercise and redemption of warrants | 1,059 | 1,532 | 98 |
Preferred stock dividends paid | (14,459) | (9,051) | (2,314) |
Net Increase (Decrease) in Cash and Cash Equivalents | (118,386) | 116 | (106,430) |
Cash and Cash Equivalents – Beginning | 264,709 | 264,593 | 371,023 |
Cash and Cash Equivalents – Ending | 146,323 | 264,709 | 264,593 |
Customers Bancorp | |||
Cash Flows from Operating Activities: | |||
Net income | 78,837 | 78,702 | 58,583 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiaries, net of dividends received from Bank | (46,743) | (59,765) | (46,980) |
Loss (gain) on sale of investment securities | 0 | 1 | 0 |
(Increase) decrease in other assets | 7,624 | (7,721) | 2,488 |
Increase (decrease) in other liabilities | (1,322) | 54 | (112) |
Net Cash Provided by Operating Activities | 38,396 | 11,271 | 13,979 |
Cash Flows from Investing Activities: | |||
Proceeds from sales of investment securities available for sale | 0 | 4 | 0 |
Payments for investments in and advances to subsidiaries | (98,725) | (230,872) | (30,036) |
Net Cash Used in Investing Activities | (98,725) | (230,868) | (30,036) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of common stock | 2,716 | 70,985 | 904 |
Net proceeds from issuance of preferred stock | 0 | 161,902 | 55,569 |
Proceeds from issuance of long-term debt | 98,564 | 0 | 0 |
Exercise and redemption of warrants | 1,059 | 1,532 | 0 |
Payments of employee taxes withheld from share-based awards | (14,761) | (5,897) | 0 |
Preferred stock dividends paid | (14,459) | (9,051) | (2,314) |
Net Cash Provided by Financing Activities | 73,119 | 219,471 | 54,159 |
Net Increase (Decrease) in Cash and Cash Equivalents | 12,790 | (126) | 38,102 |
Cash and Cash Equivalents – Beginning | 54,441 | 54,567 | 16,465 |
Cash and Cash Equivalents – Ending | $ 67,231 | $ 54,441 | $ 54,567 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 97,619 | $ 98,285 | $ 93,852 | $ 83,094 | $ 83,609 | $ 84,212 | $ 81,321 | $ 73,398 | $ 372,850 | $ 322,539 | $ 249,850 |
Interest expense | 29,319 | 30,266 | 25,246 | 20,676 | 19,481 | 19,627 | 18,163 | 15,771 | 105,507 | 73,042 | 53,560 |
Net interest income | 68,300 | 68,019 | 68,606 | 62,418 | 64,128 | 64,585 | 63,158 | 57,627 | 267,343 | 249,497 | 196,290 |
Provision for loan losses | 831 | 2,352 | 535 | 3,050 | 187 | 88 | 786 | 1,980 | 6,768 | 3,041 | 20,566 |
Non-interest income | 19,740 | 18,026 | 18,391 | 22,754 | 15,131 | 27,486 | 8,257 | 5,494 | 78,910 | 56,370 | 27,717 |
Non-interest expenses | 54,788 | 61,040 | 50,413 | 49,366 | 49,924 | 56,218 | 38,183 | 33,905 | 215,606 | 178,231 | 114,946 |
Income before income taxes | 32,421 | 22,653 | 36,049 | 32,756 | 29,148 | 35,765 | 32,446 | 27,236 | |||
Provision for income taxes | 10,806 | 14,899 | 12,327 | 7,009 | 9,320 | 14,558 | 12,963 | 9,052 | 45,042 | 45,893 | 29,912 |
Net income from continuing operations | 21,615 | 7,754 | 23,722 | 25,747 | 19,828 | 21,207 | 19,483 | 18,184 | 78,837 | 78,702 | 58,583 |
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 2,552 | 2,062 | 1,286 | 14,459 | 9,515 | 2,493 |
Net income available to common shareholders | $ 18,000 | $ 4,139 | $ 20,107 | $ 22,132 | $ 16,213 | $ 18,655 | $ 17,421 | $ 16,898 | $ 64,378 | $ 69,187 | $ 56,090 |
Earnings per common share: | |||||||||||
Basic earnings per share (usd per share) | $ 0.58 | $ 0.13 | $ 0.66 | $ 0.73 | $ 0.56 | $ 0.68 | $ 0.64 | $ 0.63 | $ 2.10 | $ 2.51 | $ 2.09 |
Diluted earnings per share (usd per share) | $ 0.55 | $ 0.13 | $ 0.62 | $ 0.67 | $ 0.51 | $ 0.63 | $ 0.59 | $ 0.58 | $ 1.97 | $ 2.31 | $ 1.96 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)Segment | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)Segment | Jun. 30, 2016Segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||||
Number of reportable segments (segment) | Segment | 2 | 2 | 1 | ||||||||||
Effective income tax rate | 36.36% | 36.83% | 33.80% | ||||||||||
Interest income | $ 97,619 | $ 98,285 | $ 93,852 | $ 83,094 | $ 83,609 | $ 84,212 | $ 81,321 | $ 73,398 | $ 372,850 | $ 322,539 | $ 249,850 | ||
Interest | 29,319 | 30,266 | 25,246 | 20,676 | 19,481 | 19,627 | 18,163 | 15,771 | 105,507 | 73,042 | 53,560 | ||
Net interest income | 68,300 | 68,019 | 68,606 | 62,418 | 64,128 | 64,585 | 63,158 | 57,627 | 267,343 | 249,497 | 196,290 | ||
Provision for loan losses | 831 | 2,352 | 535 | 3,050 | 187 | 88 | 786 | 1,980 | 6,768 | 3,041 | 20,566 | ||
Non-interest income | 19,740 | 18,026 | 18,391 | 22,754 | 15,131 | 27,486 | 8,257 | 5,494 | 78,910 | 56,370 | 27,717 | ||
Non-interest expenses | 54,788 | 61,040 | 50,413 | 49,366 | 49,924 | 56,218 | 38,183 | 33,905 | 215,606 | 178,231 | 114,946 | ||
Income before income taxes | 32,421 | 22,653 | 36,049 | 32,756 | 29,148 | 35,765 | 32,446 | 27,236 | |||||
Income tax expense | 10,806 | 14,899 | 12,327 | 7,009 | 9,320 | 14,558 | 12,963 | 9,052 | 45,042 | 45,893 | 29,912 | ||
Net income | 78,837 | 78,702 | 58,583 | ||||||||||
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 2,552 | 2,062 | 1,286 | 14,459 | 9,515 | 2,493 | ||
Net income available to common shareholders | 18,000 | $ 4,139 | $ 20,107 | $ 22,132 | 16,213 | $ 18,655 | $ 17,421 | $ 16,898 | 64,378 | 69,187 | 56,090 | ||
Goodwill and other intangibles | 16,295 | 17,621 | $ 17,621 | 16,295 | 17,621 | ||||||||
Total assets | 9,839,555 | 9,382,736 | 9,382,736 | 9,839,555 | 9,382,736 | ||||||||
Total deposits | 6,800,142 | 7,303,775 | 7,303,775 | 6,800,142 | 7,303,775 | ||||||||
Consolidated | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Interest income | 372,850 | 322,539 | 249,850 | ||||||||||
Interest | 105,507 | 73,042 | 53,560 | ||||||||||
Net interest income | 267,343 | 249,497 | 196,290 | ||||||||||
Provision for loan losses | 6,768 | 3,041 | 20,566 | ||||||||||
Non-interest income | 78,910 | 56,370 | 27,717 | ||||||||||
Non-interest expenses | 215,606 | 178,231 | 114,946 | ||||||||||
Income before income taxes | 123,879 | 124,595 | 88,495 | ||||||||||
Income tax expense | 45,042 | 45,893 | 29,912 | ||||||||||
Net income | 78,837 | 78,702 | 58,583 | ||||||||||
Preferred stock dividends | 14,459 | 9,515 | 2,493 | ||||||||||
Net income available to common shareholders | 64,378 | 69,187 | 56,090 | ||||||||||
Goodwill and other intangibles | 16,295 | 17,621 | 17,621 | 16,295 | 17,621 | 3,651 | |||||||
Total assets | 9,839,555 | 9,382,736 | 9,382,736 | 9,839,555 | 9,382,736 | 8,398,205 | |||||||
Total deposits | 6,800,142 | 7,303,775 | 7,303,775 | 6,800,142 | 7,303,775 | 5,909,501 | |||||||
Total non-deposit liabilities | 2,118,449 | 1,223,089 | 1,223,089 | $ 2,118,449 | $ 1,223,089 | $ 1,934,802 | |||||||
Operating Segments | Community Business Banking | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Effective income tax rate | 37.67% | 38.00% | 38.00% | ||||||||||
Interest income | $ 359,931 | $ 315,643 | $ 243,404 | ||||||||||
Interest | 105,438 | 73,004 | 53,536 | ||||||||||
Net interest income | 254,493 | 242,639 | 189,868 | ||||||||||
Provision for loan losses | 5,638 | 2,246 | 20,562 | ||||||||||
Non-interest income | 24,788 | 23,165 | 27,573 | ||||||||||
Non-interest expenses | 128,604 | 130,394 | 107,569 | ||||||||||
Income before income taxes | 145,039 | 133,164 | 89,310 | ||||||||||
Income tax expense | 53,013 | 49,149 | 30,221 | ||||||||||
Net income | 92,026 | 84,015 | 59,089 | ||||||||||
Preferred stock dividends | 14,459 | 9,515 | 2,493 | ||||||||||
Net income available to common shareholders | 77,567 | 74,500 | 56,596 | ||||||||||
Goodwill and other intangibles | 3,630 | 3,639 | 3,639 | 3,630 | 3,639 | 3,651 | |||||||
Total assets | 9,769,996 | 9,303,465 | 9,303,465 | 9,769,996 | 9,303,465 | 8,395,525 | |||||||
Total deposits | 6,400,310 | 6,846,980 | 6,846,980 | 6,400,310 | 6,846,980 | 5,662,433 | |||||||
Total non-deposit liabilities | 2,106,919 | 1,195,087 | 1,195,087 | 2,106,919 | 1,195,087 | 1,934,731 | |||||||
Operating Segments | BankMobile | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Interest income | 12,919 | 6,896 | 6,446 | ||||||||||
Interest | 69 | 38 | 24 | ||||||||||
Net interest income | 12,850 | 6,858 | 6,422 | ||||||||||
Provision for loan losses | 1,130 | 795 | 4 | ||||||||||
Non-interest income | 54,122 | 33,205 | 144 | ||||||||||
Non-interest expenses | 87,002 | 47,837 | 7,377 | ||||||||||
Income before income taxes | (21,160) | (8,569) | (815) | ||||||||||
Income tax expense | (7,971) | (3,256) | (309) | ||||||||||
Net income | (13,189) | (5,313) | (506) | ||||||||||
Preferred stock dividends | 0 | 0 | 0 | ||||||||||
Net income available to common shareholders | (13,189) | (5,313) | (506) | ||||||||||
Goodwill and other intangibles | 12,665 | 13,982 | 13,982 | 12,665 | 13,982 | 0 | |||||||
Total assets | 69,559 | 79,271 | 79,271 | 69,559 | 79,271 | 2,680 | |||||||
Total deposits | 399,832 | 456,795 | 456,795 | 399,832 | 456,795 | 247,068 | |||||||
Total non-deposit liabilities | $ 11,530 | $ 28,002 | $ 28,002 | 11,530 | 28,002 | 71 | |||||||
Segment Reconciling Items | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Interest income | $ 12,900 | 6,900 | $ 6,400 | ||||||||||
Non-interest expenses | $ 800 |