Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CUBI | |
Entity Registrant Name | Customers Bancorp, Inc. | |
Entity Central Index Key | 0001488813 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 31,145,896 |
Consolidated Balance Sheet - Un
Consolidated Balance Sheet - Unaudited - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 41,723 | $ 17,696 |
Interest-earning deposits | 75,939 | 44,439 |
Cash and cash equivalents | 117,662 | 62,135 |
Investment securities, at fair value | 678,142 | 665,012 |
Loans held for sale (includes $1,602 and $1,507, respectively, at fair value) | 1,602 | 1,507 |
Loans receivable, mortgage warehouse, at fair value | 1,480,195 | 1,405,420 |
Loans and leases receivable | 7,264,049 | 7,138,074 |
Allowance for loan and lease losses | (43,679) | (39,972) |
Total loans and leases receivable, net of allowance for loan and lease losses | 8,700,565 | 8,503,522 |
FHLB, Federal Reserve Bank, and other restricted stock | 80,416 | 89,685 |
Accrued interest receivable | 35,716 | 32,955 |
Bank premises and equipment, net | 10,542 | 11,063 |
Bank-owned life insurance | 266,740 | 264,559 |
Other real estate owned | 976 | 816 |
Goodwill and other intangibles | 16,173 | 16,499 |
Other assets | 235,360 | 185,672 |
Total assets | 10,143,894 | 9,833,425 |
Deposits: | ||
Demand, non-interest bearing | 1,372,358 | 1,122,171 |
Interest-bearing | 6,052,960 | 6,020,065 |
Total deposits | 7,425,318 | 7,142,236 |
Federal funds purchased | 388,000 | 187,000 |
FHLB advances | 1,025,832 | 1,248,070 |
Other borrowings | 123,963 | 123,871 |
Subordinated debt | 109,002 | 108,977 |
Accrued interest payable and other liabilities | 93,406 | 66,455 |
Total liabilities | 9,165,521 | 8,876,609 |
Commitments and contingencies (NOTE 13) | ||
Shareholders’ equity: | ||
Preferred stock, par value $1.00 per share; liquidation preference $25.00 per share; 100,000,000 shares authorized, 9,000,000 shares issued and outstanding as of March 31, 2019 and December 31, 2018 | 217,471 | 217,471 |
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 32,411,866 and 32,252,488 shares issued as of March 31, 2019 and December 31, 2018; 31,131,247 and 31,003,028 shares outstanding as of March 31, 2019 and December 31, 2018 | 32,412 | 32,252 |
Additional paid in capital | 436,713 | 434,314 |
Retained earnings | 328,476 | 316,651 |
Accumulated other comprehensive loss, net | (14,919) | (22,663) |
Treasury stock, at cost (1,280,619 and 1,249,460 shares as of March 31, 2019 and December 31, 2018) | (21,780) | (21,209) |
Total shareholders’ equity | 978,373 | 956,816 |
Total liabilities and shareholders’ equity | $ 10,143,894 | $ 9,833,425 |
Consolidated Balance Sheet - _2
Consolidated Balance Sheet - Unaudited (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans held for sale at fair value | $ 1,602 | $ 1,507 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference (usd per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 9,000,000 | 9,000,000 |
Preferred stock, shares outstanding (shares) | 9,000,000 | 9,000,000 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 31,411,866 | 32,252,488 |
Common stock, shares outstanding (shares) | 31,131,247 | 31,003,028 |
Treasury stock, shares (shares) | 1,280,619 | 1,249,460 |
Significant Other Observable Inputs (Level 2) | ||
Loans held for sale at fair value | $ 1,602 | $ 1,507 |
Consolidated Statements of Inco
Consolidated Statements of Income - Unaudited - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Loans and leases | $ 93,116,000 | $ 85,931,000 |
Investment securities | 6,241,000 | 8,672,000 |
Other | 1,718,000 | 2,361,000 |
Total interest income | 101,075,000 | 96,964,000 |
Interest expense: | ||
Deposits | 31,225,000 | 19,793,000 |
FHLB advances | 5,293,000 | 7,080,000 |
Subordinated debt | 1,684,000 | 1,684,000 |
Other borrowings | 3,569,000 | 3,376,000 |
Total interest expense | 41,771,000 | 31,933,000 |
Net interest income | 59,304,000 | 65,031,000 |
Provision for loan and lease losses | 4,767,000 | 2,117,000 |
Net interest income after provision for loan and lease losses | 54,537,000 | 62,914,000 |
Non-interest income: | ||
Commercial lease income | 2,401,000 | 862,000 |
Bank-owned life insurance | 1,816,000 | 2,031,000 |
Mortgage warehouse transactional fees | 1,314,000 | 1,887,000 |
Gain (loss) on sale of SBA and other loans | 0 | 1,361,000 |
Mortgage banking income | 167,000 | 121,000 |
Other | 3,005,000 | 2,895,000 |
Total non-interest income | 19,718,000 | 20,910,000 |
Non-interest expense: | ||
Salaries and employee benefits | 25,823,000 | 24,925,000 |
Technology, communication, and bank operations | 11,953,000 | 9,943,000 |
Professional services | 4,573,000 | 6,008,000 |
Occupancy | 2,903,000 | 2,834,000 |
Commercial lease depreciation | 1,923,000 | 815,000 |
FDIC assessments, non-income taxes, and regulatory fees | 1,988,000 | 2,200,000 |
Provision for operating losses | 1,779,000 | 1,526,000 |
Advertising and promotion | 809,000 | 390,000 |
Loan workout | 320,000 | 659,000 |
Merger and acquisition related expenses | 0 | 106,000 |
Other real estate owned expenses | 57,000 | 40,000 |
Other | 1,856,000 | 2,834,000 |
Total non-interest expense | 53,984,000 | 52,280,000 |
Income before income tax expense | 20,271,000 | 31,544,000 |
Income tax expense | 4,831,000 | 7,402,000 |
Net income | 15,440,000 | 24,142,000 |
Preferred stock dividends | 3,615,000 | 3,615,000 |
Net income (loss) available to common shareholders | $ 11,825,000 | $ 20,527,000 |
Basic earnings per common share (usd per share) | $ 0.38 | $ 0.65 |
Diluted earnings per common share (usd per share) | $ 0.38 | $ 0.64 |
Interchange and card revenue | ||
Non-interest income: | ||
Non-interest income | $ 8,806,000 | $ 9,661,000 |
Deposit fees | ||
Non-interest income: | ||
Non-interest income | $ 2,209,000 | $ 2,092,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 15,440 | $ 24,142 |
Unrealized gains (losses) on available-for-sale debt securities: | ||
Unrealized gains (losses) arising during the period | 17,817 | (34,098) |
Income tax effect | (4,632) | 8,865 |
Net unrealized gains (losses) on available-for-sale debt securities | 13,185 | (25,233) |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized gains (losses) arising during the period | (6,939) | 873 |
Income tax effect | 1,804 | (227) |
Reclassification adjustment for (gains) losses included in net income | (413) | 131 |
Income tax effect | 107 | (34) |
Net unrealized gains (losses) on cash flow hedges | (5,441) | 743 |
Other comprehensive income (loss), net of income tax effect | 7,744 | (24,490) |
Comprehensive income (loss) | $ 23,184 | $ (348) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance, preferred stock (shares) at Dec. 31, 2017 | 9,000,000 | ||||||
Beginning balance, common stock (shares) at Dec. 31, 2017 | 31,382,503 | ||||||
Beginning balance at Dec. 31, 2017 | $ 920,964 | $ 217,471 | $ 31,913 | $ 422,096 | $ 258,076 | $ (359) | $ (8,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 24,142 | 24,142 | |||||
Other comprehensive income (loss) | (24,490) | (24,490) | |||||
Preferred stock dividends | (3,615) | (3,615) | |||||
Share-based compensation expense | 1,786 | 1,786 | |||||
Exercise of warrants (shares) | 5,242 | ||||||
Exercise of warrants | 112 | $ 5 | 107 | ||||
Issuance of common stock under share-based compensation arrangements (shares) | 78,526 | ||||||
Issuance of common stock under share-based compensation arrangements | 189 | $ 79 | 110 | ||||
Ending balance, preferred stock (shares) at Mar. 31, 2018 | 9,000,000 | ||||||
Ending balance, common stock (shares) at Mar. 31, 2018 | 31,466,271 | ||||||
Ending balance at Mar. 31, 2018 | 919,088 | $ 217,471 | $ 31,997 | 424,099 | 279,942 | (26,188) | (8,233) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act and net unrealized gains on equity securities from accumulated other comprehensive loss | Accounting Standards Update 2018-02 | 0 | 298 | (298) | ||||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act and net unrealized gains on equity securities from accumulated other comprehensive loss | Accounting Standards Update 2016-01 | $ 0 | 1,041 | (1,041) | ||||
Beginning balance, preferred stock (shares) at Dec. 31, 2018 | 9,000,000 | 9,000,000 | |||||
Beginning balance, common stock (shares) at Dec. 31, 2018 | 31,003,028 | 31,003,028 | |||||
Beginning balance at Dec. 31, 2018 | $ 956,816 | $ 217,471 | $ 32,252 | 434,314 | 316,651 | (22,663) | (21,209) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 15,440 | 15,440 | |||||
Other comprehensive income (loss) | 7,744 | 7,744 | |||||
Preferred stock dividends | (3,615) | (3,615) | |||||
Share-based compensation expense | 2,109 | 2,109 | |||||
Issuance of common stock under share-based compensation arrangements (shares) | 159,378 | ||||||
Issuance of common stock under share-based compensation arrangements | 450 | $ 160 | 290 | ||||
Repurchase of common shares (shares) | (31,159) | ||||||
Repurchase of common shares | $ (571) | (571) | |||||
Ending balance, preferred stock (shares) at Mar. 31, 2019 | 9,000,000 | 9,000,000 | |||||
Ending balance, common stock (shares) at Mar. 31, 2019 | 31,131,247 | 31,131,247 | |||||
Ending balance at Mar. 31, 2019 | $ 978,373 | $ 217,471 | $ 32,412 | $ 436,713 | $ 328,476 | $ (14,919) | $ (21,780) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 15,440 | $ 24,142 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan and lease losses | 4,767 | 2,117 |
Depreciation and amortization | 4,287 | 3,344 |
Share-based compensation expense | 2,381 | 2,218 |
Deferred taxes | 1,878 | 2,684 |
Net amortization of investment securities premiums and discounts | 191 | 375 |
Unrealized (gain) loss on equity securities | (2) | (10) |
(Gain) loss on sale of SBA and other loans | (138) | (1,477) |
Origination of loans held for sale | (8,182) | (4,280) |
Proceeds from the sale of loans held for sale | 8,225 | 5,599 |
Amortization of fair value discounts and premiums | 162 | 76 |
Valuation and other adjustments to other real estate owned | 0 | 41 |
Earnings on investment in bank-owned life insurance | (1,816) | (2,031) |
(Increase) decrease in accrued interest receivable and other assets | (28,109) | (6,806) |
Increase (decrease) in accrued interest payable and other liabilities | (5,096) | 7,347 |
Net Cash Provided By (Used In) Operating Activities | (6,012) | 33,339 |
Cash Flows from Investing Activities | ||
Proceeds from maturities, calls and principal repayments of securities available for sale | 4,498 | 11,489 |
Purchases of investment securities available for sale | 0 | (756,242) |
Origination of mortgage warehouse loans | (5,039,797) | (6,804,177) |
Proceeds from repayments of mortgage warehouse loans | 4,965,022 | 6,722,732 |
Net increase (decrease) in loans and leases, excluding mortgage warehouse loans | 1,932 | (46,969) |
Proceeds from sales of loans | 0 | 16,468 |
Purchase of loans | (129,289) | 0 |
Proceeds from bank-owned life insurance | 0 | 529 |
Net proceeds from (purchases of) FHLB, Federal Reserve Bank, and other restricted stock | 9,269 | (24,384) |
Purchases of bank premises and equipment | (141) | (268) |
Purchases of leased assets under lessor operating leases | (7,791) | (2,755) |
Net Cash Provided By (Used In) Investing Activities | (196,297) | (883,577) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 283,082 | 242,317 |
Net increase (decrease) in short-term borrowed funds from the FHLB | (222,238) | 640,755 |
Net increase (decrease) in federal funds purchased | 201,000 | 40,000 |
Preferred stock dividends paid | (3,615) | (3,615) |
Exercise of warrants | 0 | 112 |
Purchase of treasury stock | (571) | 0 |
Payments of employee taxes withheld from share-based awards | (894) | (587) |
Proceeds from issuance of common stock | 1,072 | 344 |
Net Cash Provided By (Used In) Financing Activities | 257,836 | 919,326 |
Net Increase (Decrease) in Cash and Cash Equivalents | 55,527 | 69,088 |
Cash and Cash Equivalents – Beginning | 62,135 | 146,323 |
Cash and Cash Equivalents – Ending | 117,662 | 215,411 |
Supplementary Cash Flows Information: | ||
Interest paid | 38,916 | 29,746 |
Income taxes paid | 1,204 | 4,174 |
Non-cash items: | ||
Transfer of loans to other real estate owned | 160 | 57 |
Transfer of loans held for sale to held for investment | 0 | 129,691 |
University relationship intangible purchased not settled | $ 0 | $ 1,502 |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2019 | |
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 U.S. GAAP and pursuant to the rules and regulations of the SEC. Customers Bancorp, Inc. and its wholly owned subsidiaries, Customers Bank, and non-bank subsidiaries, serve residents and businesses in Southeastern Pennsylvania (Bucks, Berks, Chester, Philadelphia and Delaware Counties); Rye Brook, New York (Westchester County); Hamilton, New Jersey (Mercer County); Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire (Rockingham County); Manhattan and Melville, New York; Washington, D.C.; Chicago, Illinois; and nationally for certain loan and deposit products. The Bank has 13 full-service branches and provides commercial banking products, primarily loans and deposits. In addition, Customers Bank also administratively supports loan, equipment leases and other financial products to customers through its limited-purpose offices in Boston, Massachusetts, Providence, Rhode Island, Portsmouth, New Hampshire, Manhattan and Melville, New York, Philadelphia, Pennsylvania, Washington, D.C., and Chicago, Illinois. The Bank also provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Through BankMobile, a division of Customers Bank, Customers offers state of the art high tech digital banking services to consumers, students, and the "under banked" nationwide, along with "Banking as a Service" offerings with white label partners. |
Significant Accounting Policies
Significant Accounting Policies and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The interim unaudited consolidated financial statements of Customers Bancorp and subsidiaries have been prepared in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2018 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2018 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2018 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 (the "2018 Form 10-K"). The 2018 Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Restrictions on Cash and Amounts due from Banks; Business Combinations; Investment Securities; Loan Accounting Framework; Loans Held for Sale and Loans at Fair Value; Loans Receivable - Mortgage Warehouse, at Fair Value; Loans Receivable; Purchased Loans; ALLL; Goodwill and Other Intangible Assets; FHLB, Federal Reserve Bank, and Other Restricted Stock; OREO; BOLI; Bank Premises and Equipment; Lessor Operating Leases; Treasury Stock; Income Taxes; Share-Based Compensation; Transfer of Financial Assets; Segment Information; Derivative Instruments and Hedging; Comprehensive Income (Loss); EPS; Loss Contingencies; and Collaborative Arrangements. There have been no material changes to Customers Bancorp's significant accounting policies noted above for the three months ended March 31, 2019, with the exception of the adoption of ASU 2016-02, Leases as described below in accounting standards adopted in 2019. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are recently issued accounting standards that Customers has adopted as well as those that the FASB has issued but are not yet effective. Recently Issued Accounting Standards Accounting Standards Adopted in 2019 Standard Summary of guidance Effects on Financial Statements ASU 2016-02, Leases Issued February 2016 Supersedes the lease accounting guidance for both lessees and lessors under ASC 840, Leases. From the lessee's perspective, the new standard establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for lessees. This ASU requires lessors to account for leases using an approach that is substantially similar to the existing guidance for sales-type, direct financing leases and operating leases. Effective January 1, 2019. In July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842): Targeted Improvements,” which provides lessees the option to apply the new leasing standard to all open leases as of the adoption date. Prior to this ASU issuance, a modified retrospective transition approach was required. In December 2018, the FASB issued ASU 2018-20 "Leases (Topic 842): Narrow-Scope Improvements for Lessors," which provides lessors a policy election to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Additionally, the update requires certain lessors to exclude from variable payments lessor costs paid by lessees directly to third parties. In March 2019, the FASB issued ASU 2019-01 "Codification Improvements," which clarifies that lessors who are not manufacturers or dealers should use the original cost of the underlying asset in a lease as its fair value. Additionally, the update states that lessors who are depository or lending institutions within the scope of ASC 942 should present all principal payments received under leases under investing activities in their Statement of Cash Flows and that interim disclosures under ASC 250-10-50-3 are not required in the interim reports of issuers adopting ASC 842. Customers adopted on January 1, 2019. The adoption did not materially change Customers' recognition of operating lease expense in its consolidated statements of income. Customers adopted certain practical expedients available under the new guidance, which did not require it to (1) reassess whether any expired or existing contracts contain leases, (2) reassess the lease classification for any expired or existing leases, (3) reassess initial direct costs for any existing leases, (4) separate non-lease components from the associated lease components, (5) evaluate whether certain sales taxes and other similar taxes are lessor costs, and (6) capitalize short-term leases. Additionally, Customers elected to apply the new lease guidance at the adoption date, rather than at the beginning of the earliest period presented and will continue to present comparative periods prior to January 1, 2019 under Topic 840. Customers did not adopt the hindsight practical expedient. The adoption of the ASU for Customers' lessor equipment finance business did not have a significant impact on Customers' financial condition, results of operations, and consolidated financial statements. See NOTE 7 - LEASES. ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities Requires that premiums for certain callable debt securities held be amortized to their earliest call date. Effective on January 1, 2019. Adoption of this new guidance must be applied on a modified retrospective approach. Customers adopted on January 1, 2019. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Accounting Standards Adopted in 2019 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features Changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity's own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) would no longer be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of net income available to common shareholders in basic EPS. Effective January 1, 2019. Customers adopted on January 1, 2019. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting Expands the scope of Topic 718, Compensation - Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Applies to all share-based payment transactions in which a grantor acquires goods or services from non-employees to be used or consumed in a grantor's own operations by issuing share-based payment awards. With the amended guidance from ASU 2018-07, non-employees share-based payments are measured with an estimate of the fair value of the equity the business is obligated to issue at the grant date (the date that the business and the stock award recipient agree to the terms of the award). Compensation would be recognized in the same period and in the same manner as if the entity had paid cash for goods or services instead of stock. Effective January 1, 2019. Customers adopted on January 1, 2019. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Accounting Standards Issued But Not Yet Adopted Standard Summary of guidance Effects on Financial Statements ASU 2019-04, Issued April 2019 Clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates, and prepayments. Addresses partial-term fair value hedges, fair value hedge basis adjustments and certain transition requirements. Addresses recognizing and measuring financial instruments, specifically the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. Topic 326 Amendments - Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption permitted. Topic 815 Amendments - Effective for first annual period beginning after the issuance date of this ASU (i.e., fiscal year 2020). Entities that have already adopted the amendments in ASU 2017-12 may elect either to retrospectively apply all the amendments or to prospectively apply all amendments as of the date of adoption. Topic 825 Amendments - Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Customers is currently evaluating the expected impact of this ASU on its financial condition, results of operations and consolidated financial statements. ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 Issued November 2018 Clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements. Adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within scope of Topic 606. Requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. Effective for fiscal year beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption permitted. Customers is currently evaluating the expected impact of this ASU on its financial condition, results of operations and consolidated financial statements. Accounting Standards Issued But Not Yet Adopted (continued) Standard Summary of guidance Effects on Financial Statements ASU 2018-15, Internal-Use Software (Subtopic 350-40): Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Issued August 2018 Clarifies that service contracts with hosting arrangements must follow internal-use software guidance Subtopic 350-40 when determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Also clarifies that capitalized implementation costs of a hosting arrangement that is a service contract are to be amortized over the term of the hosting arrangement, which includes the noncancelable period of the arrangement plus options to extend the arrangement if reasonably certain to exercise. Clarifies that existing impairment guidance in Subtopic 350-40 must be applied to the capitalized implementation costs as if they were long-lived assets. Applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Effective for fiscal year beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption permitted. Customers is currently evaluating the expected impact of this ASU on its financial condition, results of operations and consolidated financial statements. ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Issued June 2016 Requires an entity to utilize a new impairment model known as the CECL model to estimate lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset (including held to maturity securities), presents the net amount expected to be collected on the financial asset. Replaces today's "incurred loss" approach and is expected to result in earlier recognition of credit losses. For available-for-sale debt securities, entities will be required to record allowances for credit losses rather than reduce the carrying amount, as they do today under the OTTI model, and will be allowed to reverse previously established allowances in the event the credit of the issuer improves. Simplifies the accounting model for PCI debt securities and loans. Effective beginning after December 15, 2019 with early adoption permitted. Adoption can be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. ASC 842. Customers has established a company-wide, cross-discipline governance structure, which provides implementation oversight and continues evaluating the impact of this ASU and reviewing the loss modeling requirements consistent with lifetime expected loss estimates. Customers has selected a third-party vendor to assist in the implementation process of its new model, which will include different assumptions used in calculating credit losses, such as estimating losses over the contractual term adjusted for prepayments and will consider expected future changes in macroeconomic conditions. Customers continues to evaluate data requirements, methodologies, and forecasting options to utilize within the new model. Additionally, Customers is evaluating how to properly segment its loan and lease portfolio. Customers has completed preliminary runs of the new model and continues to evaluate the results and assumptions as it prepares to run two methodologies parallel in the second half of 2019. The adoption of this ASU may result in an increase to Customers' ALLL which will depend upon the nature and characteristics of Customers' loan and lease portfolio at the adoption date, as well as the macroeconomic conditions and forecasts at that date. Customers does not intend to early adopt this new guidance. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following are the components and results of Customers' earnings per common share calculations for the periods presented. Three Months Ended March 31, (amounts in thousands, except share and per share data) 2019 2018 Net income available to common shareholders $ 11,825 $ 20,527 Weighted-average number of common shares outstanding - basic 31,047,191 31,424,496 Share-based compensation plans 435,676 840,561 Warrants — 8,916 Weighted-average number of common shares - diluted 31,482,867 32,273,973 Basic earnings per common share $ 0.38 $ 0.65 Diluted earnings per common share $ 0.38 $ 0.64 The following is a summary of securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because either the performance conditions for certain of the share-based compensation awards have not been met or to do so would have been anti-dilutive for the periods presented. Three Months Ended March 31, 2019 2018 Share-based compensation awards 2,159,232 1,059,225 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) By Component | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT The following tables present the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2019 and 2018 . All amounts are presented net of tax. Amounts in parentheses indicate reductions to AOCI. Three Months Ended March 31, 2019 Available-for-Sale Debt Securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Gains (Losses) on Cash Flow Hedges Total Balance - December 31, 2018 $ (21,741 ) $ — $ (21,741 ) $ (922 ) $ (22,663 ) Other comprehensive income (loss) before reclassifications 13,185 — 13,185 (5,135 ) 8,050 Amounts reclassified from accumulated other comprehensive income (loss) to net income (1) — — — (306 ) (306 ) Net current-period other comprehensive income 13,185 — 13,185 (5,441 ) 7,744 Balance - March 31, 2019 $ (8,556 ) $ — $ (8,556 ) $ (6,363 ) $ (14,919 ) Three Months Ended March 31, 2018 (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Unrealized Gains (Losses) on Available-For-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Balance - December 31, 2017 $ (249 ) $ 88 $ (161 ) $ (198 ) $ (359 ) Reclassification of the income tax effects of the Tax Cuts and Jobs Act (2) (256 ) — (256 ) (42 ) (298 ) Reclassification of net unrealized gains on equity securities (2) (953 ) (88 ) (1,041 ) — (1,041 ) Balance after reclassification adjustments on January 1, 2018 (1,458 ) — (1,458 ) (240 ) (1,698 ) Other comprehensive income (loss) before reclassifications (25,233 ) — (25,233 ) 646 (24,587 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (1) — — — 97 97 Net current-period other comprehensive income (loss) (25,233 ) — (25,233 ) 743 (24,490 ) Balance - March 31, 2018 $ (26,691 ) $ — $ (26,691 ) $ 503 $ (26,188 ) (1) Reclassification amounts for available-for-sale debt securities are reported as gain or loss on sale of investment securities on the consolidated statements of income. During the three months ended March 31, 2019 and 2018, there were no sales of investment securities. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. During the three months ended March 31, 2019 , a reclassification amount of $413 thousand ( $306 thousand net of taxes) was reported as a reduction to interest expense on FHLB advances on the consolidated statements of income. During the three months ended March 31, 2018, a reclassification amount of $131 thousand ( $97 thousand net of taxes) was reported as interest expense on FHLB advances on the consolidated statements of income. (2) Amounts reclassified from accumulated other comprehensive income (loss) on January 1, 2018 as a result of the adoption of ASU 2018-02 and ASU 2016-01 resulted in a decrease in AOCI of $1.3 million |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of March 31, 2019 and December 31, 2018 are summarized in the tables below: March 31, 2019 (amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ 306,651 $ 62 $ (2,569 ) $ 304,144 Corporate notes (1) 381,334 639 (9,695 ) 372,278 Available-for-sale debt securities $ 687,985 $ 701 $ (12,264 ) 676,422 Equity securities (2) 1,720 Total investment securities, at fair value $ 678,142 December 31, 2018 (amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ 311,267 $ — $ (5,893 ) $ 305,374 Corporate notes (1) 381,407 920 (24,407 ) 357,920 Available-for-sale debt securities $ 692,674 $ 920 $ (30,300 ) 663,294 Equity securities (2) 1,718 Total investment securities, at fair value $ 665,012 (1) Includes corporate securities issued by other bank holding companies. (2) Includes equity securities issued by a foreign entity. There were no sales of available-for-sale debt securities or equity securities for the three months ended March 31, 2019 and 2018 . The following table shows available-for-sale debt securities by stated maturity. Debt securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date: March 31, 2019 (amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 354,268 345,717 Due after ten years 27,066 26,561 Agency-guaranteed residential mortgage-backed securities 306,651 304,144 Total debt securities $ 687,985 $ 676,422 Gross unrealized losses and fair value of Customers' available-for-sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 Less Than 12 Months 12 Months or More Total (amounts in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ — $ — $ 211,098 $ (2,569 ) $ 211,098 $ (2,569 ) Corporate notes 21,873 (93 ) 314,767 (9,602 ) 336,640 (9,695 ) Total $ 21,873 $ (93 ) $ 525,865 $ (12,171 ) $ 547,738 $ (12,264 ) December 31, 2018 Less Than 12 Months 12 Months or More Total (amounts in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ 305,374 $ (5,893 ) $ — $ — $ 305,374 $ (5,893 ) Corporate notes 310,036 (24,407 ) — — 310,036 (24,407 ) Total $ 615,410 $ (30,300 ) $ — $ — $ 615,410 $ (30,300 ) At March 31, 2019 , there were four available-for-sale debt securities with unrealized losses in the less-than-twelve-month category and twenty-two available-for-sale debt securities with unrealized losses in the twelve-month-or-more category. The unrealized losses on the mortgage-backed securities are guaranteed by government-sponsored entities and primarily relate to changes in market interest rates. The unrealized losses on the corporate notes relate to securities with no company specific concentration. The unrealized losses were principally due to an upward shift in interest rates that resulted in a negative impact on the respective note's fair value. All amounts related to the mortgage-backed securities and the corporate notes are expected to be recovered when market prices recover or at maturity. Customers does not intend to sell these securities and it is not more likely than not that Customers will be required to sell the securities before recovery of the amortized cost basis. At March 31, 2019 and December 31, 2018 , Customers Bank had pledged investment securities aggregating $22.9 million and $23.0 million in fair value, respectively, as collateral against its borrowings primarily with the FHLB and an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities. |
Loans and Leases Receivable and
Loans and Leases Receivable and Allowance for Loan and Lease Losses | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans and Leases Receivable and Allowance for Loan and Lease Losses | LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR LOAN AND LEASE LOSSES The following table presents loans and leases receivable as of March 31, 2019 and December 31, 2018 . (amounts in thousands) March 31, 2019 December 31, 2018 Loans receivable, mortgage warehouse, at fair value $ 1,480,195 $ 1,405,420 Loans receivable: Commercial: Multi-family 3,212,312 3,285,297 Commercial and industrial (including owner occupied commercial real estate) (1) 2,038,229 1,951,277 Commercial real estate non-owner occupied 1,107,336 1,125,106 Construction 53,372 56,491 Total commercial loans and leases receivable 6,411,249 6,418,171 Consumer: Residential real estate 625,066 566,561 Manufactured housing 77,778 79,731 Other 153,153 74,035 Total consumer loans receivable 855,997 720,327 Loans and leases receivable 7,267,246 7,138,498 Deferred (fees) costs and unamortized (discounts) premiums, net (3,197 ) (424 ) Allowance for loan and lease losses (43,679 ) (39,972 ) Total loans and leases receivable, net of allowance for loan and lease losses $ 8,700,565 $ 8,503,522 (1) Includes direct finance equipment leases of $56.4 million and $54.5 million at March 31, 2019 and December 31, 2018, respectively. Customers' total loans and leases 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 and leases 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 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 20 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. At March 31, 2019 and December 31, 2018 , all of Customers' commercial mortgage warehouse loans were current in terms of payment. As these loans are reported at their fair value, they do not have an allowance for loan and lease loss and are therefore excluded from ALLL related disclosures. Loans and leases receivable: The following tables summarize loans receivable by loan type and performance status as of March 31, 2019 and December 31, 2018 : March 31, 2019 (amounts in thousands) 30-89 Days Past Due (1) 90 Days or More Past Due (1) Total Past Due (1) Non-Accrual Current (2) Purchased-Credit-Impaired Loans (3) Total Loans and Leases (4) Multi-family $ 3,794 $ — $ 3,794 $ 1,997 $ 3,204,879 $ 1,642 $ 3,212,312 Commercial and industrial 1,271 — 1,271 12,225 1,441,679 417 1,455,592 Commercial real estate owner occupied 3,566 — 3,566 839 570,380 7,852 582,637 Commercial real estate non-owner occupied 1,976 — 1,976 102 1,101,129 4,129 1,107,336 Construction — — — — 53,372 — 53,372 Residential real estate 5,612 — 5,612 5,574 609,874 4,006 625,066 Manufactured housing (5) 3,686 1,936 5,622 1,924 68,362 1,870 77,778 Other consumer 491 — 491 108 152,348 206 153,153 Total $ 20,396 $ 1,936 $ 22,332 $ 22,769 $ 7,202,023 $ 20,122 $ 7,267,246 December 31, 2018 (amounts in thousands) 30-89 Days Past Due (1) 90 Days or More Past Due (1) Total Past Due (1) Non-Accrual Current (2) Purchased-Credit-Impaired Loans (3) Total Loans and Leases (4) Multi-family $ — $ — $ — $ 1,155 $ 3,282,452 $ 1,690 $ 3,285,297 Commercial and industrial 1,914 — 1,914 17,764 1,353,586 536 1,373,800 Commercial real estate owner occupied 193 — 193 1,037 567,809 8,438 577,477 Commercial real estate non-owner occupied 1,190 — 1,190 129 1,119,443 4,344 1,125,106 Construction — — — — 56,491 — 56,491 Residential real estate 5,940 — 5,940 5,605 550,679 4,337 566,561 Manufactured housing (5) 3,926 2,188 6,114 1,693 69,916 2,008 79,731 Other consumer 200 — 200 111 73,503 221 74,035 Total $ 13,363 $ 2,188 $ 15,551 $ 27,494 $ 7,073,879 $ 21,574 $ 7,138,498 (1) Includes past due loans and leases that are accruing interest because collection is considered probable. (2) Loans and leases 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. Due to the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the ALLL. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. As of March 31, 2019 and December 31, 2018 , the Bank had $0.4 million and $0.2 million , respectively, of residential real estate held in OREO. As of March 31, 2019 and December 31, 2018 , the Bank had initiated foreclosure proceedings on $1.4 million and $2.1 million , respectively, in loans secured by residential real estate. Allowance for loan and lease losses The changes in the ALLL for the three months ended March 31, 2019 and 2018 , and the loans and ALLL by loan type based on impairment-evaluation method as of March 31, 2019 and December 31, 2018 are presented in the tables below. Three Months Ended March 31, 2019 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Ending Balance, $ 11,462 $ 12,145 $ 3,320 $ 6,093 $ 624 $ 3,654 $ 145 $ 2,529 $ 39,972 Charge-offs (541 ) — (8 ) — — (40 ) — (755 ) (1,344 ) Recoveries — 119 128 — 6 7 — 24 284 Provision for loan and lease losses (291 ) 383 (15 ) (78 ) (46 ) 2,951 (28 ) 1,891 4,767 Ending Balance, $ 10,630 $ 12,647 $ 3,425 $ 6,015 $ 584 $ 6,572 $ 117 $ 3,689 $ 43,679 As of March 31, 2019 Loans and leases receivable: Individually evaluated for impairment $ 1,997 $ 17,411 $ 867 $ 102 $ — $ 8,567 $ 10,307 $ 108 $ 39,359 Collectively evaluated for impairment 3,208,673 1,437,764 573,918 1,103,105 53,372 612,493 65,601 152,839 7,207,765 Loans acquired with credit deterioration 1,642 417 7,852 4,129 — 4,006 1,870 206 20,122 Total loans and leases receivable $ 3,212,312 $ 1,455,592 $ 582,637 $ 1,107,336 $ 53,372 $ 625,066 $ 77,778 $ 153,153 $ 7,267,246 Allowance for loan and lease losses: Individually evaluated for impairment $ — $ 263 $ 36 $ — $ — $ 78 $ 3 $ — $ 380 Collectively evaluated for impairment 10,630 12,116 3,389 4,019 584 6,105 89 3,537 40,469 Loans acquired with credit deterioration — 268 — 1,996 — 389 25 152 2,830 Total allowance for loan and lease losses $ 10,630 $ 12,647 $ 3,425 $ 6,015 $ 584 $ 6,572 $ 117 $ 3,689 $ 43,679 Three Months Ended March 31, 2018 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Ending Balance, $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 Charge-offs — (50 ) (18 ) — — (365 ) — (256 ) (689 ) Recoveries — 35 — — 11 7 — 3 56 Provision for loan and lease losses 377 834 311 (204 ) (69 ) 608 (4 ) 264 2,117 Ending Balance, $ 12,545 $ 11,737 $ 3,525 $ 7,233 $ 921 $ 3,179 $ 176 $ 183 $ 39,499 As of December 31, 2018 Loans and leases receivable: Individually evaluated for impairment $ 1,155 $ 17,828 $ 1,069 $ 129 $ — $ 8,631 $ 10,195 $ 111 $ 39,118 Collectively evaluated for impairment 3,282,452 1,355,436 567,970 1,120,633 56,491 553,593 67,528 73,703 7,077,806 Loans acquired with credit deterioration 1,690 536 8,438 4,344 — 4,337 2,008 221 21,574 Total loans and leases receivable $ 3,285,297 $ 1,373,800 $ 577,477 $ 1,125,106 $ 56,491 $ 566,561 $ 79,731 $ 74,035 $ 7,138,498 Allowance for loan and lease losses: Individually evaluated for impairment $ 539 $ 261 $ 1 $ — $ — $ 41 $ 3 $ — $ 845 Collectively evaluated for impairment 10,923 11,516 3,319 4,161 624 3,227 89 2,390 36,249 Loans acquired with credit deterioration — 368 — 1,932 — 386 53 139 2,878 Total allowance for loan and lease losses $ 11,462 $ 12,145 $ 3,320 $ 6,093 $ 624 $ 3,654 $ 145 $ 2,529 $ 39,972 Certain manufactured housing loans were purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the purchase agreement for defaults of the underlying borrower and other specified items. At both March 31, 2019 and December 31, 2018 , funds available for reimbursement, if necessary, were $0.5 million . Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio. Impaired Loans - Individually Evaluated for Impairment The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for impaired loans that were individually evaluated for impairment as of March 31, 2019 and December 31, 2018 and the average recorded investment and interest income recognized for the three months ended March 31, 2019 and 2018 . Customers did not have any impaired lease receivables as of March 31, 2019 and December 31, 2018, respectively. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. March 31, 2019 Three Months Ended (amounts in thousands) Recorded Investment Net of Charge-Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Multi-family $ 1,997 $ 2,538 $ — $ 998 $ — Commercial and industrial 11,185 12,749 — 12,422 2 Commercial real estate owner occupied 556 1,103 — 796 21 Commercial real estate non-owner occupied 102 214 — 115 — Residential real estate 4,722 5,044 — 4,782 — Manufactured housing 10,140 10,140 — 10,084 115 Other consumer 108 108 — 110 — With an allowance recorded: Multi-family — — — 578 — Commercial and industrial 6,226 6,409 263 5,197 39 Commercial real estate owner occupied 311 498 36 172 1 Residential real estate 3,845 3,845 78 3,817 26 Manufactured housing 167 167 3 168 2 Total $ 39,359 $ 42,815 $ 380 $ 39,239 $ 206 December 31, 2018 Three Months Ended (amounts in thousands) Recorded Investment Net of Charge-Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 13,660 $ 15,263 $ — $ 7,484 $ — Commercial real estate owner occupied 1,037 1,766 — 710 — Commercial real estate non-owner occupied 129 241 — 201 — Residential real estate 4,842 5,128 — 3,623 — Manufactured housing 10,027 10,027 — 9,876 131 Other consumer 111 111 — 63 — With an allowance recorded: Multi-family 1,155 1,155 539 — — Commercial and industrial 4,168 4,351 261 8,390 1 Commercial real estate owner occupied 32 32 1 756 1 Residential real estate 3,789 3,789 41 5,122 25 Manufactured housing 168 168 3 223 — Total $ 39,118 $ 42,031 $ 845 $ 36,448 $ 158 Troubled Debt Restructurings At March 31, 2019 and December 31, 2018 , there were $19.6 million and $19.2 million , respectively, in loans reported as TDRs. TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if it satisfies a minimum performance requirement of six months , however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Modifications of PCI loans that are accounted for within loan pools in accordance with the accounting standards for PCI 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. Customers did not have any TDR lease receivables as of March 31, 2019 and December 31, 2018, respectively. The following table presents total TDRs based on loan type and accrual status at March 31, 2019 and December 31, 2018 . Nonaccrual TDRs are included in the reported amount of total non-accrual loans. March 31, 2019 December 31, 2018 (amounts in thousands) Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total Commercial and industrial $ 5,186 $ 471 $ 5,657 $ 64 $ 5,273 $ 5,337 Commercial real estate owner occupied 28 — 28 32 — 32 Residential real estate 2,993 723 3,716 3,026 667 3,693 Manufactured housing 8,383 1,850 10,233 8,502 1,620 10,122 Other consumer — 11 11 — 12 12 Total TDRs $ 16,590 $ 3,055 $ 19,645 $ 11,624 $ 7,572 $ 19,196 The following table presents loans modified in a TDR by type of concession for the three months ended March 31, 2019 and 2018 . There were no modifications that involved forgiveness of debt for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Extensions of maturity 2 $ 514 — $ — Interest-rate reductions 10 385 9 322 Total 12 $ 899 9 $ 322 The following table provides, by loan type, the number of loans modified in TDRs and the related recorded investment for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial 1 $ 431 — $ — Manufactured housing 10 385 9 322 Residential real estate 1 83 — — Total loans 12 $ 899 9 $ 322 As of both March 31, 2019 and December 31, 2018 , except for one commercial and industrial loan with an outstanding commitment of $1.5 million , there were no other commitments to lend additional funds to debtors whose loans have been modified in TDRs. The following table presents, by loan type, the number of loans modified in TDRs and the related recorded investment, for which there was a payment default within twelve months following the modification: March 31, 2019 March 31, 2018 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Manufactured housing 5 $ 137 1 $ 29 Commercial and industrial 1 431 — — Total loans $ 6 $ 568 1 $ 29 Loans modified in TDRs are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of ALLL. There were no allowances recorded as a result of TDR modifications during the three months ended March 31, 2019 and 2018 . Purchased-Credit-Impaired Loans The changes in accretable yield related to PCI loans for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, (amounts in thousands) 2019 2018 Accretable yield balance, beginning of period $ 6,178 $ 7,825 Accretion to interest income (277 ) (338 ) Reclassification from nonaccretable difference and disposals, net 293 176 Accretable yield balance, end of period $ 6,194 $ 7,663 Credit Quality Indicators The ALLL represents management's estimate of probable losses in Customers' loans and leases receivable portfolio, excluding commercial mortgage warehouse loans reported at fair value pursuant to 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, and construction loan portfolios, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the respective loan portfolios, the Bank utilizes the following categories of risk ratings: pass/satisfactory (includes risk rating 1 through 6), special mention, substandard, doubtful, and loss. The risk rating categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass/satisfactory ratings, which are assigned to those borrowers who do not have identified potential or well-defined weaknesses and for whom there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. While assigning risk ratings involves judgment, the risk-rating process allows management to identify riskier credits in a timely manner and allocate the appropriate resources to manage those loans and leases. The risk rating grades are defined as follows: “1” – Pass / Excellent Loans and leases 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 and leases 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 and leases 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 and leases rated 3 are those loans and leases for which the borrowers have above average financial condition and flexibility; more than satisfactory debt service coverage; balance sheet and operating ratios are consistent with or better than industry peers; operate in industries with little risk; move in diversified markets; and are experienced and competent in their industry. These borrowers’ access to capital markets is limited mostly to private sources, often secured, but the borrower typically has access to a wide range of refinancing alternatives. “4” – Pass / Good Loans and leases 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 and leases 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 and leases. “5” – Satisfactory Loans and leases rated 5 are extended to borrowers who are considered 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 and leases 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 and leases 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 and leases 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 and leases where significant actual, not potential, weaknesses or problems are clearly evident are graded in the category below. “8” – Substandard Loans and leases are rated 8 when the loans and leases are inadequately protected by the current sound worth and payment capacity of the obligor or of the collateral pledged, if any. Loans and leases so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the company will sustain some loss if the weaknesses are not corrected. “9” – Doubtful The Bank assigns a doubtful rating to loans and leases 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 or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. “10” – Loss The Bank assigns a loss rating to loans and leases considered uncollectible and of such little value that their continuance as an active asset is not warranted. Amounts classified as loss are immediately charged off. Risk ratings are not established for certain consumer loans, including residential real estate, home equity, manufactured housing, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based upon aggregate payment history through the monitoring of delinquency levels and trends and are classified as performing and non-performing. The following tables present the credit ratings of loans and leases receivable as of March 31, 2019 and December 31, 2018 . March 31, 2019 (amounts in thousands) Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (3) Pass/Satisfactory $ 3,164,722 $ 1,395,034 $ 565,631 $ 1,036,957 $ 53,372 $ — $ — $ — $ 6,215,716 Special Mention 40,441 30,575 12,300 30,258 — — — — 113,574 Substandard 7,149 29,983 4,706 40,121 — — — — 81,959 Performing (1) — — — — — 613,880 70,232 152,554 836,666 Non-performing (2) — — — — — 11,186 7,546 599 19,331 Total $ 3,212,312 $ 1,455,592 $ 582,637 $ 1,107,336 $ 53,372 $ 625,066 $ 77,778 $ 153,153 $ 7,267,246 December 31, 2018 (amounts in thousands) Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (3) Pass/Satisfactory $ 3,201,822 $ 1,306,466 $ 562,639 $ 1,054,493 $ 56,491 $ — $ — $ — $ 6,181,911 Special Mention 55,696 30,551 9,730 30,203 — — — — 126,180 Substandard 27,779 36,783 5,108 40,410 — — — — 110,080 Performing (1) — — — — — 555,016 71,924 73,724 700,664 Non-performing (2) — — — — — 11,545 7,807 311 19,663 Total $ 3,285,297 $ 1,373,800 $ 577,477 $ 1,125,106 $ 56,491 $ 566,561 $ 79,731 $ 74,035 $ 7,138,498 (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 interest or on nonaccrual status. (3) Excludes commercial mortgage warehouse loans reported at fair value. Loan Purchases and Sales Purchases and sales of loans were as follows for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, (amounts in thousands) 2019 2018 Purchases (1) Residential real estate $ 66,384 $ — Other consumer 66,136 — Total $ 132,520 $ — Sales (2) Commercial and industrial (3) — (6,842 ) Commercial real estate owner occupied (3) — (8,151 ) Total $ — $ (14,993 ) (1) The purchase price was 97.6% of loans outstanding for the three months ended March 31, 2019 . There were no loan purchases during the three months ended March 31, 2018 . (2) There were no loan sales for the three months ended March 31, 2019 . For the three months ended March 31, 2018 , loan sales resulted in a net gain of $1.4 million . (3) Primarily sales of SBA loans. Loans Pledged as Collateral Customers has pledged eligible real estate loans as collateral for potential borrowings from the FHLB and FRB in the amount of $5.4 billion at both March 31, 2019 and December 31, 2018 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES Lessee Customers has operating leases for its branches, LPOs, and administrative offices, with remaining lease terms ranging between 2 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers acts as the lessee. Most lease agreements consist of initial lease terms ranging between 1 and 5 years, with options to renew the leases or extend the term up to 15 years at Customers' sole discretion. Some operating leases include variable lease payments that are based on an index or rate, such as the CPI. Variable lease payments are not included in the liability or right of use asset and are recognized in the period in which the obligation for those payments are incurred. Customers' operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. Pursuant to these agreements, Customers does not have any commitments that would meet the definition of a finance lease. As most of Customers' operating leases do not provide an implicit rate, Customers utilized its incremental borrowing rate based on the information available at either the adoption of ASC 842 or the commencement date of the lease, whichever was later, when determining the present value of lease payments. Accordingly, Customers does not present ROU assets and corresponding liabilities for operating leases for fiscal years prior to the adoption of this standard. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Operating lease ROU assets Other assets $ 22,469 LIABILITIES Operating lease liabilities Other liabilities $ 23,649 The following table summarizes operating lease cost and its corresponding income statement location: Three Months Ended March 31, (amounts in thousands) Classification 2019 Operating lease cost (1) Occupancy expenses $ 1,469 (1) There were no variable lease costs for the three months ended March 31, 2019, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows: (amounts in thousands) March 31, 2019 2019 $ 4,303 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments 25,391 Less: interest 1,742 Present value of lease liabilities $ 23,649 Customers is not currently involved with the construction or design of an underlying asset nor are there legally binding minimum lease payments for leases signed but not yet commenced as of March 31, 2019. Cash paid under the operating lease liability was $1.4 million for the three months ended March 31, 2019 and is reported as cash flows from operating activities in the statement of cash flows. A ROU asset of $23.8 million , net of $1.1 million in accrued rent, was recognized in exchange for lease liabilities of $24.9 million with the adoption of ASU 2016-02 on January 1, 2019. The following table summarizes the term and discount rate information for Customers' operating leases. (amounts in thousands) March 31, 2019 Weighted average remaining lease term (years) Operating leases 5.6 years Weighted average discount rate Operating leases 2.74 % Future minimum rental commitments pursuant to non-cancelable operating leases as of December 31, 2018, were as follows: (amounts in thousands) December 31, 2018 2019 $ 5,577 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments $ 26,665 Rent expense was approximately $1.4 million for the three months ended March 31, 2018. Equipment Lessor CCF is a wholly-owned subsidiary of Customers Bank and is referred to as the Equipment Finance group. CCF is primarily focused on originating equipment operating and direct finance equipment leases for a broad range of asset classes. It services vendors, dealers, independent finance companies, bank-owned leasing companies and strategic direct customers in the plastics, packaging, machine tool, construction, transportation and franchise markets. Lease terms typically range from 24 months to 120 months. CCF offers the following lease products: Capital Lease, Purchase Upon Termination, TRAC, Split-TRAC, and FMV. Direct finance equipment leases are included in commercial and industrial loans. The estimated residual values for direct finance and operating leases are established by utilizing internally developed analysis, external studies, and/or third-party appraisals to establish a residual position. The residual values are reviewed on an annual basis, and in the event of any impairment, the resulting reduction in the net investment shall be recognized as a loss in the period in which the impairment is charged. For the direct finance leases, only for a Split-TRAC is there a residual risk and the unguaranteed portions are typically nominal. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges in other assets. 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 commercial lease 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. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 56,553 Guaranteed residual assets Loans and leases receivable 5,540 Unguaranteed residual assets Loans and leases receivable 622 Deferred initial direct costs Loans and leases receivable 745 Unearned income Loans and leases receivable (6,342 ) Net investment in direct financing leases $ 57,118 Operating leases Investment in operating leases Other assets $ 67,093 Accumulated depreciation Other assets (6,705 ) Deferred initial direct costs Other assets 864 Net investment in operating leases 61,252 Total lease assets $ 118,370 |
Leases | LEASES Lessee Customers has operating leases for its branches, LPOs, and administrative offices, with remaining lease terms ranging between 2 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers acts as the lessee. Most lease agreements consist of initial lease terms ranging between 1 and 5 years, with options to renew the leases or extend the term up to 15 years at Customers' sole discretion. Some operating leases include variable lease payments that are based on an index or rate, such as the CPI. Variable lease payments are not included in the liability or right of use asset and are recognized in the period in which the obligation for those payments are incurred. Customers' operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. Pursuant to these agreements, Customers does not have any commitments that would meet the definition of a finance lease. As most of Customers' operating leases do not provide an implicit rate, Customers utilized its incremental borrowing rate based on the information available at either the adoption of ASC 842 or the commencement date of the lease, whichever was later, when determining the present value of lease payments. Accordingly, Customers does not present ROU assets and corresponding liabilities for operating leases for fiscal years prior to the adoption of this standard. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Operating lease ROU assets Other assets $ 22,469 LIABILITIES Operating lease liabilities Other liabilities $ 23,649 The following table summarizes operating lease cost and its corresponding income statement location: Three Months Ended March 31, (amounts in thousands) Classification 2019 Operating lease cost (1) Occupancy expenses $ 1,469 (1) There were no variable lease costs for the three months ended March 31, 2019, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows: (amounts in thousands) March 31, 2019 2019 $ 4,303 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments 25,391 Less: interest 1,742 Present value of lease liabilities $ 23,649 Customers is not currently involved with the construction or design of an underlying asset nor are there legally binding minimum lease payments for leases signed but not yet commenced as of March 31, 2019. Cash paid under the operating lease liability was $1.4 million for the three months ended March 31, 2019 and is reported as cash flows from operating activities in the statement of cash flows. A ROU asset of $23.8 million , net of $1.1 million in accrued rent, was recognized in exchange for lease liabilities of $24.9 million with the adoption of ASU 2016-02 on January 1, 2019. The following table summarizes the term and discount rate information for Customers' operating leases. (amounts in thousands) March 31, 2019 Weighted average remaining lease term (years) Operating leases 5.6 years Weighted average discount rate Operating leases 2.74 % Future minimum rental commitments pursuant to non-cancelable operating leases as of December 31, 2018, were as follows: (amounts in thousands) December 31, 2018 2019 $ 5,577 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments $ 26,665 Rent expense was approximately $1.4 million for the three months ended March 31, 2018. Equipment Lessor CCF is a wholly-owned subsidiary of Customers Bank and is referred to as the Equipment Finance group. CCF is primarily focused on originating equipment operating and direct finance equipment leases for a broad range of asset classes. It services vendors, dealers, independent finance companies, bank-owned leasing companies and strategic direct customers in the plastics, packaging, machine tool, construction, transportation and franchise markets. Lease terms typically range from 24 months to 120 months. CCF offers the following lease products: Capital Lease, Purchase Upon Termination, TRAC, Split-TRAC, and FMV. Direct finance equipment leases are included in commercial and industrial loans. The estimated residual values for direct finance and operating leases are established by utilizing internally developed analysis, external studies, and/or third-party appraisals to establish a residual position. The residual values are reviewed on an annual basis, and in the event of any impairment, the resulting reduction in the net investment shall be recognized as a loss in the period in which the impairment is charged. For the direct finance leases, only for a Split-TRAC is there a residual risk and the unguaranteed portions are typically nominal. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges in other assets. 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 commercial lease 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. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 56,553 Guaranteed residual assets Loans and leases receivable 5,540 Unguaranteed residual assets Loans and leases receivable 622 Deferred initial direct costs Loans and leases receivable 745 Unearned income Loans and leases receivable (6,342 ) Net investment in direct financing leases $ 57,118 Operating leases Investment in operating leases Other assets $ 67,093 Accumulated depreciation Other assets (6,705 ) Deferred initial direct costs Other assets 864 Net investment in operating leases 61,252 Total lease assets $ 118,370 |
Leases | LEASES Lessee Customers has operating leases for its branches, LPOs, and administrative offices, with remaining lease terms ranging between 2 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers acts as the lessee. Most lease agreements consist of initial lease terms ranging between 1 and 5 years, with options to renew the leases or extend the term up to 15 years at Customers' sole discretion. Some operating leases include variable lease payments that are based on an index or rate, such as the CPI. Variable lease payments are not included in the liability or right of use asset and are recognized in the period in which the obligation for those payments are incurred. Customers' operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. Pursuant to these agreements, Customers does not have any commitments that would meet the definition of a finance lease. As most of Customers' operating leases do not provide an implicit rate, Customers utilized its incremental borrowing rate based on the information available at either the adoption of ASC 842 or the commencement date of the lease, whichever was later, when determining the present value of lease payments. Accordingly, Customers does not present ROU assets and corresponding liabilities for operating leases for fiscal years prior to the adoption of this standard. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Operating lease ROU assets Other assets $ 22,469 LIABILITIES Operating lease liabilities Other liabilities $ 23,649 The following table summarizes operating lease cost and its corresponding income statement location: Three Months Ended March 31, (amounts in thousands) Classification 2019 Operating lease cost (1) Occupancy expenses $ 1,469 (1) There were no variable lease costs for the three months ended March 31, 2019, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows: (amounts in thousands) March 31, 2019 2019 $ 4,303 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments 25,391 Less: interest 1,742 Present value of lease liabilities $ 23,649 Customers is not currently involved with the construction or design of an underlying asset nor are there legally binding minimum lease payments for leases signed but not yet commenced as of March 31, 2019. Cash paid under the operating lease liability was $1.4 million for the three months ended March 31, 2019 and is reported as cash flows from operating activities in the statement of cash flows. A ROU asset of $23.8 million , net of $1.1 million in accrued rent, was recognized in exchange for lease liabilities of $24.9 million with the adoption of ASU 2016-02 on January 1, 2019. The following table summarizes the term and discount rate information for Customers' operating leases. (amounts in thousands) March 31, 2019 Weighted average remaining lease term (years) Operating leases 5.6 years Weighted average discount rate Operating leases 2.74 % Future minimum rental commitments pursuant to non-cancelable operating leases as of December 31, 2018, were as follows: (amounts in thousands) December 31, 2018 2019 $ 5,577 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments $ 26,665 Rent expense was approximately $1.4 million for the three months ended March 31, 2018. Equipment Lessor CCF is a wholly-owned subsidiary of Customers Bank and is referred to as the Equipment Finance group. CCF is primarily focused on originating equipment operating and direct finance equipment leases for a broad range of asset classes. It services vendors, dealers, independent finance companies, bank-owned leasing companies and strategic direct customers in the plastics, packaging, machine tool, construction, transportation and franchise markets. Lease terms typically range from 24 months to 120 months. CCF offers the following lease products: Capital Lease, Purchase Upon Termination, TRAC, Split-TRAC, and FMV. Direct finance equipment leases are included in commercial and industrial loans. The estimated residual values for direct finance and operating leases are established by utilizing internally developed analysis, external studies, and/or third-party appraisals to establish a residual position. The residual values are reviewed on an annual basis, and in the event of any impairment, the resulting reduction in the net investment shall be recognized as a loss in the period in which the impairment is charged. For the direct finance leases, only for a Split-TRAC is there a residual risk and the unguaranteed portions are typically nominal. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges in other assets. 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 commercial lease 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. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 56,553 Guaranteed residual assets Loans and leases receivable 5,540 Unguaranteed residual assets Loans and leases receivable 622 Deferred initial direct costs Loans and leases receivable 745 Unearned income Loans and leases receivable (6,342 ) Net investment in direct financing leases $ 57,118 Operating leases Investment in operating leases Other assets $ 67,093 Accumulated depreciation Other assets (6,705 ) Deferred initial direct costs Other assets 864 Net investment in operating leases 61,252 Total lease assets $ 118,370 |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | REGULATORY CAPITAL The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on Customers' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, and total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At March 31, 2019 and December 31, 2018 , the Bank and the Bancorp satisfied all capital requirements to which they were subject. Generally, to comply with the regulatory definition of adequately capitalized, or well capitalized, respectively, or to comply with the Basel III capital requirements, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table: Minimum Capital Levels to be Classified as: Actual Adequately Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of March 31, 2019: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 759,887 8.914 % $ 383,603 4.500 % N/A N/A $ 596,715 7.000 % Customers Bank $ 1,070,664 12.574 % $ 383,186 4.500 % $ 553,491 6.500 % $ 596,068 7.000 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 977,339 11.465 % $ 511,470 6.000 % N/A N/A $ 724,583 8.500 % Customers Bank $ 1,070,664 12.574 % $ 510,915 6.000 % $ 681,220 8.000 % $ 723,796 8.500 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,101,041 12.916 % $ 691,960 8.000 % N/A N/A $ 895,073 10.500 % Customers Bank $ 1,223,727 14.371 % $ 681,220 8.000 % $ 851,525 10.000 % $ 894,101 10.500 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 977,339 10.006 % $ 390,685 4.000 % N/A N/A $ 390,685 4.000 % Customers Bank $ 1,070,664 10.969 % $ 390,430 4.000 % $ 488,038 5.000 % $ 390,430 4.000 % As of December 31, 2018: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 745,795 8.964 % $ 374,388 4.500 % N/A N/A $ 530,384 6.375 % Customers Bank $ 1,066,121 12.822 % $ 374,160 4.500 % $ 540,453 6.500 % $ 530,059 6.375 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 963,266 11.578 % $ 499,185 6.000 % N/A N/A $ 655,180 7.875 % Customers Bank $ 1,066,121 12.822 % $ 498,879 6.000 % $ 665,173 8.000 % $ 654,779 7.875 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,081,962 13.005 % $ 665,580 8.000 % N/A N/A $ 821,575 9.875 % Customers Bank $ 1,215,522 14.619 % $ 665,173 8.000 % $ 831,466 10.000 % $ 821,072 9.875 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 963,266 9.665 % $ 398,668 4.000 % N/A N/A $ 398,668 4.000 % Customers Bank $ 1,066,121 10.699 % $ 398,570 4.000 % $ 498,212 5.000 % $ 398,570 4.000 % The Basel III risk-based capital rules adopted effective January 1, 2015 require that banks and holding companies maintain a "capital conservation buffer" of 250 basis points in excess of the "minimum capital ratio" or certain elective distributions would be limited. The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. The capital conservation buffer was phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk weighted assets for 2016, 1.250% for 2017, 1.875% for 2018, and 2.500% for 2019 and thereafter. Effective January 1, 2019, 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 7.000% ; (ii) a Tier 1 risk-based capital ratio of 8.500% ; and (iii) a Total risk-based capital ratio of 10.500% . |
Disclosures About Fair Value of
Disclosures About Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Disclosures About Fair Value of Financial Instruments | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS Customers uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. ASC Topic 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. Many of these financial instruments lack an available trading market as characterized by a willing buyer and a willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC Topic 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require adjustments to inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used to estimate the fair values of Customers' financial instruments as of March 31, 2019 and December 31, 2018 : Financial Instruments Recorded at Fair Value on a Recurring Basis Investment securities: The fair values of equity securities and available-for-sale debt securities are determined by obtaining quoted market prices on nationally recognized and foreign securities exchanges (Level 1), matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices, or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). These assets are classified as Level 1, 2 or 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. 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 because at inception of the transaction the underlying loans have already been sold to an approved investor. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of 20 days from purchase to sale. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Derivatives (assets and liabilities): The fair values of interest rate swaps and credit derivatives are determined using models that incorporate readily observable market data into a market standard methodology. This methodology nets the discounted future cash receipts and the discounted expected cash payments. The discounted variable cash receipts and payments are based on expectations of future interest rates derived from observable market interest rate curves. In addition, fair value is adjusted for the effect of nonperformance risk by incorporating credit valuation adjustments for Customers and its counterparties. These assets and liabilities are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair values of the residential mortgage loan commitments are derived from the estimated fair values that can be generated when the underlying mortgage loan is sold in the secondary market. 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 the Bank’s internal experience (i.e., pull-through rate). These assets and liabilities are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Derivative assets and liabilities are presented in "Other assets" and "Accrued interest payable and other liabilities" on the consolidated balance sheet. 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. Financial Instruments Recorded at Fair Value on a Nonrecurring Basis Impaired loans: Impaired loans are those loans that are accounted for under ASC 310, Receivables, in which the Bank has measured impairment generally based on the fair value of the loan’s collateral or discounted cash flow analysis. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans or discounted cash flows based upon the expected proceeds. These assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The estimated fair values of Customers' financial instruments at March 31, 2019 and December 31, 2018 were as follows. Fair Value Measurements at March 31, 2019 (amounts in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 117,662 $ 117,662 $ 117,662 $ — $ — Debt securities, available for sale 676,422 676,422 — 676,422 — Equity securities 1,720 1,720 1,720 — — Loans held for sale 1,602 1,602 — 1,602 — Total loans and leases receivable, net of allowance for loan and lease losses 8,700,565 8,774,518 — 1,480,195 7,294,323 FHLB, Federal Reserve Bank and other restricted stock 80,416 80,416 — 80,416 — Derivatives 14,665 14,665 — 14,588 77 Liabilities: Deposits $ 7,425,318 $ 7,422,232 $ 5,867,017 $ 1,555,215 $ — Federal funds purchased 388,000 388,000 388,000 — — FHLB advances 1,025,832 1,025,830 500,832 524,998 — Other borrowings 123,963 123,591 — 123,591 — Subordinated debt 109,002 113,988 — 113,988 — Derivatives 23,837 23,837 — 23,837 — Fair Value Measurements at December 31, 2018 (amounts in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 62,135 $ 62,135 $ 62,135 $ — $ — Debt securities, available for sale 663,294 663,294 — 663,294 — Equity securities 1,718 1,718 1,718 — — Loans held for sale 1,507 1,507 — 1,507 — Total loans and leases receivable, net of allowance for loan and lease losses 8,503,522 8,481,128 — 1,405,420 7,075,708 FHLB, Federal Reserve Bank and other restricted stock 89,685 89,685 — 89,685 — Derivatives 14,693 14,693 — 14,624 69 Liabilities: Deposits $ 7,142,236 $ 7,136,009 $ 5,408,055 $ 1,727,954 $ — Federal funds purchased 187,000 187,000 187,000 — — FHLB advances 1,248,070 1,248,046 998,070 249,976 — Other borrowings 123,871 121,718 — 121,718 — Subordinated debt 108,977 110,550 — 110,550 — Derivatives 16,286 16,286 — 16,286 — For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 Fair Value Measurements at the End of the Reporting Period Using (amounts in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Measured at Fair Value on a Recurring Basis: Assets Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ — $ 304,144 $ — $ 304,144 Corporate notes — 372,278 — 372,278 Equity securities 1,720 — — 1,720 Derivatives — 14,588 77 14,665 Loans held for sale – fair value option — 1,602 — 1,602 Loans receivable, mortgage warehouse – fair value option — 1,480,195 — 1,480,195 Total assets – recurring fair value measurements $ 1,720 $ 2,172,807 $ 77 $ 2,174,604 Liabilities Derivatives $ — $ 23,837 $ — $ 23,837 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $380 $ — $ — $ 12,668 $ 12,668 Other real estate owned — — 781 781 Total assets – nonrecurring fair value measurements $ — $ — $ 13,449 $ 13,449 December 31, 2018 Fair Value Measurements at the End of the Reporting Period Using (amounts in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Measured at Fair Value on a Recurring Basis: Assets Available-for-sale securities: Agency-guaranteed residential mortgage–backed securities $ — $ 305,374 $ — $ 305,374 Corporate notes — 357,920 — 357,920 Equity securities 1,718 — — 1,718 Derivatives — 14,624 69 14,693 Loans held for sale – fair value option — 1,507 — 1,507 Loans receivable, mortgage warehouse – fair value option — 1,405,420 — 1,405,420 Total assets – recurring fair value measurements $ 1,718 $ 2,084,845 $ 69 $ 2,086,632 Liabilities Derivatives $ — $ 16,286 $ — $ 16,286 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $845 $ — $ — $ 10,876 $ 10,876 Other real estate owned — — 621 621 Total assets – nonrecurring fair value measurements $ — $ — $ 11,497 $ 11,497 The changes in Level 3 assets measured at fair value on a recurring basis for the three months ended March 31, 2019 and 2018 are summarized in the tables below. Additional information about residential mortgage loan commitments can be found in NOTE 10 - DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES. Residential Mortgage Loan Commitments Three Months Ended March 31, (amounts in thousands) 2019 2018 Balance at December 31 $ 69 $ 60 Issuances 77 83 Settlements (69 ) (60 ) Balance at March 31 $ 77 $ 83 There were no transfers between levels during the three months ended March 31, 2019 and 2018 . The following table summarizes financial assets and financial liabilities measured at fair value as of March 31, 2019 and December 31, 2018 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. The unobservable Level 3 inputs noted below contain a level of uncertainty that may differ from what is realized in an immediate settlement of the assets. Therefore, Customers may realize a value higher or lower than the current estimated fair value of the assets. Quantitative Information about Level 3 Fair Value Measurements March 31, 2019 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts in thousands) Impaired loans - real estate $ 5,270 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% Impaired loans - commercial & industrial 7,398 Business asset valuation (3) Business asset valuation adjustments (4) 8% - 50% Other real estate owned 781 Collateral appraisal (1) Liquidation expenses (2) 8% - 13% Residential mortgage loan commitments 77 Adjusted market bid Pull-through rate 83% - 83% Quantitative Information about Level 3 Fair Value Measurements December 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts in thousands) Impaired loans - real estate $ 10,260 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% Impaired loans - commercial & industrial 616 Business asset valuation (3) Business asset valuation adjustments (4) 8% - 50% Other real estate owned 621 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% Residential mortgage loan commitments 69 Adjusted market bid Pull-through rate 90% - 90% (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. Customers does not generally discount appraisals. (2) Appraisals are adjusted by management for liquidation expenses. The range and weighted average of liquidation expense adjustments are presented as a percentage of the appraisal. (3) Business asset valuation obtained from independent party. (4) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers' derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers' known or expected cash receipts and its known or expected cash payments principally related to certain borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers' interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Customers' objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest-rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in AOCI and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuances of debt. Customers discontinues cash flow hedge accounting if it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in AOCI are reclassified immediately into earnings and any subsequent changes in the fair value of such derivatives are recognized directly in earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on Customers' variable-rate debt. Customers expects to reclassify $1.0 million from AOCI to interest expense during the next 12 months. Customers is hedging its exposure to the variability in future cash flows for forecasted transactions (3-month FHLB advances) over a maximum period of 63 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). At March 31, 2019 , Customers had five outstanding interest rate derivatives with notional amounts totaling $675.0 million that were designated as cash flow hedges of interest rate risk. At December 31, 2018 , Customers had six outstanding interest rate derivatives with notional amounts totaling $750.0 million that were designated as cash flow hedges of interest rate risk. The outstanding cash flow hedges at March 31, 2019 expire between April 2019 and July 2024. Derivatives Not Designated as Hedging Instruments Customers executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies (typically the loan customers will swap a floating-rate loan for a fixed-rate loan). The customer interest rate swaps are simultaneously offset by interest rate swaps that Customers executes with a third party in order to minimize interest rate risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting third-party market swaps are recognized directly in earnings. At March 31, 2019 and December 31, 2018 , Customers had 98 interest rate swaps with an aggregate notional amount of $1.0 billion related to this program. Customers enters into residential mortgage loan commitments in connection with its consumer mortgage banking activities to fund mortgage loans at specified rates and times in the future. These commitments are short-term in nature and generally expire in 30 to 60 days. The residential mortgage loan commitments that relate to the origination of mortgage loans that will be held for sale are considered derivative instruments under the applicable accounting guidance and are reported at fair value, with changes in fair value recorded directly in earnings. At March 31, 2019 and December 31, 2018 , Customers had an outstanding notional balance of residential mortgage loan commitments of $5.8 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 recorded directly in earnings. At March 31, 2019 and December 31, 2018 , Customers had outstanding notional balances of credit derivatives of $115.8 million and $94.9 million , respectively. Fair Value of Derivative Instruments on the Balance Sheet The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of March 31, 2019 and December 31, 2018 . March 31, 2019 Derivative Assets Derivative Liabilities (amounts in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 38 Other liabilities $ 8,636 Total $ 38 $ 8,636 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 14,369 Other liabilities $ 15,136 Credit contracts Other assets 181 Other liabilities 65 Residential mortgage loan commitments Other assets 77 Other liabilities — Total $ 14,627 $ 15,201 December 31, 2018 Derivative Assets Derivative Liabilities (amounts in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 256 Other liabilities $ 1,502 Total $ 256 $ 1,502 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 14,300 Other liabilities $ 14,730 Credit contracts Other assets 68 Other liabilities 54 Residential mortgage loan commitments Other assets 69 Other liabilities — Total $ 14,437 $ 14,784 Effect of Derivative Instruments on Comprehensive Income The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 (amounts in thousands) Income Statement Location Amount of Income (Loss) Recognized in Earnings Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ (287 ) Credit contracts Other non-interest income 102 Residential mortgage loan commitments Mortgage banking income 8 Total $ (177 ) Three Months Ended March 31, 2018 (amounts in thousands) Income Statement Location Amount of Income (Loss) Recognized in Earnings Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 385 Credit contracts Other non-interest income (23 ) Residential mortgage loan commitments Mortgage banking income 23 Total $ 385 Three Months Ended March 31, 2019 (amounts in thousands) Amount of Gain (Loss) Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Derivatives in cash flow hedging relationships: Interest rate swaps $ (5,135 ) Interest expense $ 413 Three Months Ended March 31, 2018 (amounts in thousands) Amount of Gain (Loss) Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Derivatives in cash flow hedging relationships: Interest rate swaps $ 646 Interest expense $ (131 ) (1) Amounts presented are net of taxes. See NOTE 4 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges for the periods presented. Credit-risk-related Contingent Features By entering into derivative contracts, Customers is exposed to credit risk. The credit risk associated with derivatives executed with customers is the same as that involved in extending the related loans and is subject to the same standard credit policies. To mitigate the credit-risk exposure to major derivative dealer counterparties, Customers only enters into agreements with those counterparties that maintain credit ratings of high quality. Agreements with major derivative dealer counterparties contain provisions whereby default on any of Customers' indebtedness would be considered a default on its derivative obligations. Customers also has entered into agreements that contain provisions under which the counterparty could require Customers to settle its obligations if Customers fails to maintain its status as a well/adequately capitalized institution. As of March 31, 2019 , 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 $16.0 million . In addition, Customers has collateral posting thresholds with certain of these counterparties and at March 31, 2019 , had posted $19.5 million of cash as collateral. Customers records cash posted as collateral as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of other assets. Disclosures about Offsetting Assets and Liabilities The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the table below. Customers has not made a policy election to offset its derivative positions. Offsetting of Financial Assets and Derivative Assets At March 31, 2019 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Financial Instruments Cash Collateral Received Net Amount Description Interest rate swap derivatives with institutional counterparties $ 3,816 $ — $ 3,816 $ — $ — $ 3,816 Offsetting of Financial Assets and Derivative Assets At December 31, 2018 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Financial Instruments Cash Collateral Received Net Amount Description Interest rate swap derivatives with institutional counterparties $ 7,529 $ — $ 7,529 $ — $ 1,860 $ 5,669 Offsetting of Financial Liabilities and Derivative Liabilities At March 31, 2019 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Financial Instruments Cash Collateral Pledged Net Amount Description Interest rate swap derivatives with institutional counterparties $ 20,036 $ — $ 20,036 $ — $ 19,462 $ 574 Offsetting of Financial Liabilities and Derivative Liabilities At December 31, 2018 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount (amounts in thousands) Financial Instruments Cash Collateral Pledged Description Interest rate swap derivatives with institutional counterparties $ 9,077 $ — $ 9,077 $ — $ 702 $ 8,375 |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
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 - Customers Bank 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 Customers Bank Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island, New Hampshire, Washington D.C., and Illinois through a single-point-of-contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Lending and deposit gathering activities are focused primarily on privately held businesses, high-net-worth families, selected commercial real estate lending, commercial mortgage companies, and equipment finance. Revenues are generated primarily through net interest income (the difference between interest earned on loans and leases, 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 BOLI. The BankMobile segment provides state-of-the-art high-tech digital banking and disbursement services to consumers, students, and the "under banked" nationwide, along with "Banking as a Service" offerings with white label partners. BankMobile is a full-service banking platform that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Revenues are currently being generated primarily through interchange and card revenue, deposit and wire transfer fees and university fees. The majority of revenue and expenses for BankMobile are related to the segment's operation of the ongoing business acquired through the Disbursement business acquisition and costs associated with the development of white label products for its partners. The following tables present the operating results for Customers' reportable business segments for the three months ended March 31, 2019 and 2018 . The segment financial results include directly attributable revenues and expenses. Consistent with the presentation of segment results to Customers' chief operating decision makers, overhead costs and preferred stock dividends are assigned to the Customers Bank Business Banking segment. The tax benefit assigned to BankMobile was based on an estimated effective tax rate of 23.15% for 2019 and 24.56% for 2018 , respectively. Three Months Ended March 31, 2019 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 92,871 $ 8,204 $ 101,075 Interest expense 41,605 166 41,771 Net interest income 51,266 8,038 59,304 Provision for loan losses 2,976 1,791 4,767 Non-interest income 7,577 12,141 19,718 Non-interest expense 35,384 18,600 53,984 Income (loss) before income tax expense (benefit) 20,483 (212 ) 20,271 Income tax expense (benefit) 4,880 (49 ) 4,831 Net income (loss) 15,603 (163 ) 15,440 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 11,988 $ (163 ) $ 11,825 As of March 31, 2019 Goodwill and other intangibles $ 3,629 $ 12,544 $ 16,173 Total assets $ 9,916,308 $ 227,586 $ 10,143,894 Total deposits $ 6,798,562 $ 626,756 $ 7,425,318 Total non-deposit liabilities $ 1,719,469 $ 20,734 $ 1,740,203 (1) Amounts reported include funds transfer pricing of $5.6 million for the three months ended March 31, 2019 , credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of low/no cost deposits. Three Months Ended March 31, 2018 (amounts in thousands) Customers Bank Banking BankMobile Consolidated Interest income (2) $ 92,554 $ 4,410 $ 96,964 Interest expense 31,917 16 31,933 Net interest income 60,637 4,394 65,031 Provision for loan losses 1,874 243 2,117 Non-interest income 8,439 12,471 20,910 Non-interest expense 34,331 17,949 52,280 Income (loss) before income tax expense (benefit) 32,871 (1,327 ) 31,544 Income tax expense (benefit) 7,728 (326 ) 7,402 Net income (loss) 25,143 (1,001 ) 24,142 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 21,528 $ (1,001 ) $ 20,527 As of March 31, 2018 Goodwill and other intangibles $ 3,630 $ 13,847 $ 17,477 Total assets $ 10,690,479 $ 78,787 $ 10,769,266 Total deposits $ 6,418,810 $ 623,649 $ 7,042,459 Total non-deposit liabilities $ 2,759,156 $ 48,563 $ 2,807,719 (2) Amounts reported include funds transfer pricing of $4.4 million for the three months ended March 31, 2018 |
Non-Interest Revenues
Non-Interest Revenues | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Non-Interest Revenues | NON-INTEREST REVENUES Customers' revenue from contracts with customers in scope of ASC 606 is recognized within non-interest income. The following tables present Customers' non-interest revenues affected by ASC 606 by business segment for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 (amounts in thousands) Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 180 $ 8,626 $ 8,806 Deposit fees 300 1,909 2,209 University fees - card and disbursement fees — 355 355 Total revenue recognized at point in time 480 10,890 11,370 Revenue recognized over time: University fees - subscription revenue — 979 979 Total revenue recognized over time — 979 979 Total revenue from contracts with customers $ 480 $ 11,869 $ 12,349 Three Months Ended March 31, 2018 (amounts in thousands) Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 223 $ 9,438 $ 9,661 Deposit fees 287 1,805 2,092 University fees - card and disbursement fees — 326 326 Total revenue recognized at point in time 510 11,569 12,079 Revenue recognized over time: University fees - subscription revenue — 870 870 Total revenue recognized over time — 870 870 Total revenue from contracts with customers $ 510 $ 12,439 $ 12,949 |
Legal Contingencies
Legal Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | LEGAL CONTINGENCIES Halbreiner Matter On December 16, 2016, Elizabeth Halbreiner and Robert Halbreiner (“Plaintiffs”) filed a Second Amended Complaint captioned Elizabeth Halbreiner and Robert Halbreiner, v. Customers Bank, Robert B.White, Richard A. Ehst, Thomas Jastrem, Timothy D. Romig, Andrew Bowman, Michael Fuoco, Saldutti Law Group f/k/a Saldutti, LLC a/k/a Saldutti Law, LLC, Robert L. Saldutti, LLC, Robert L. Saldutti, Esquire, Brian J. Schaffer, Esquire, Robert Lieber, Jr., Esquire, Jay Sidhu, James Zardecki, Zardecki Associates LLC, No. 01419 in the First Judicial District of Pennsylvania, Court of Common Pleas of Philadelphia, Trial Division . In this Second Amended Complaint, the Plaintiffs generally allege that Customers Bank, and the other named defendants, conspired to misuse the legal system for improper purposes and it also alleges defamation, false light, tortious interference with contractual relations, infliction of emotional distress, negligent infliction of emotional distress and loss of consortium . On January 6, 2017, Customers Bank filed Preliminary Objections to the Complaint seeking dismissal of the Plaintiff’s claims against Customers Bank and the employees of Customers Bank named as co-defendants. On April 6, 2017, the Court dismissed certain counts and determined to allow certain other counts to proceed. Customers Bank intends to vigorously defend itself against these allegations but is currently unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. Lifestyle Healthcare Group, Inc. Matter On January 9, 2017, Lifestyle Healthcare Group, Inc., et al (“Plaintiffs”) filed a Complaint captioned Lifestyle Healthcare Group, Inc.; Fred Rappaport; Victoria Rappaport; Lifestyle Management Group, LLC Trading as Lifestyle Real Estate I, LP; Lifestyle Real Estate I GP, LLC; Daniel Muck; Lifestyle Management Group, LLC; Lifestyle Management Group, LLC Trading as Lifestyle I, LP D/B/A Lifestyle Medspa, Plaintiffs v. Customers Bank, Robert White; Saldutti Law, LLC a/k/a Saldutti Law Group; Robert L. Saldutti, Esquire; and Michael Fuoco, Civil Action No. 01206, in the First Judicial District of Pennsylvania, Court of Common Pleas of Philadelphia . In this Complaint, which is related to the Halbreiner Matter described above, the Plaintiffs generally allege wrongful use of civil proceedings and abuse of process in connection with a case filed and later dismissed in federal court, titled, Customers Bank v. Fred Rappaport, et al., U.S.D.C.E.D. Pa., No. 15-6145. On January 30, 2017, Customers Bank filed Preliminary Objections to the Complaint seeking dismissal of Plaintiff’s claims against Customers Bank and Robert White, named as co-defendants. In response to the Preliminary Objections, Lifestyle filed an Amended Complaint against Customers Bank and Robert White. Customers Bank has filed Preliminary Objections to the Second Amended Complaint seeking dismissal of Plaintiff's claim against Customers Bank and Robert White, named as co-defendants. The Court has dismissed certain counts and determined to allow certain other counts to proceed. Customers Bank intends to vigorously defend itself against these allegations but is currently unable to predict the outcome of this lawsuit and therefore cannot determine the likelihood of loss nor estimate a range of possible loss. United States Department of Education Matter In third quarter 2018, Customers received a FPRD letter dated September 5, 2018 from the DOE regarding a focused program review of Higher One's/Customers Bank's administration, as a third party servicer, of the programs authorized pursuant to Title IV of the Higher Education Act of 1965. The DOE program review covered the award years beginning in 2013 through the FPRD issuance date, including the time period when Higher One was acting as the third party servicer prior to Customers' acquisition of the Disbursement business on June 15, 2016. The FPRD determined that, with respect to students enrolled at specified partner institutions, Higher One/Customers did not provide convenient fee-free access to ATMs or bank branch offices in such locations as required by the DOE’s cash management regulations. Those regulations, which were in effect during the period covered by the program review and were revised during that period, seek, among other purposes, to ensure that students can make fee-free cash withdrawals. The FPRD determined that students incurred prohibited costs in accessing Title IV credit balance funds, and the FPRD classifies those costs as financial liabilities of Customers. The FPRD also requires Customers to take prospective action to increase ATM access for students at certain of its partner institutions. Customers disagrees with the FPRD and has elected to appeal the FPRD, including the asserted financial liabilities of $6.5 million |
Significant Accounting Polici_2
Significant Accounting Policies and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim unaudited consolidated financial statements of Customers Bancorp and subsidiaries have been prepared in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2018 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2018 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2018 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 (the "2018 Form 10-K"). The 2018 Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Restrictions on Cash and Amounts due from Banks; Business Combinations; Investment Securities; Loan Accounting Framework; Loans Held for Sale and Loans at Fair Value; Loans Receivable - Mortgage Warehouse, at Fair Value; Loans Receivable; Purchased Loans; ALLL; Goodwill and Other Intangible Assets; FHLB, Federal Reserve Bank, and Other Restricted Stock; OREO; BOLI; Bank Premises and Equipment; Lessor Operating Leases; Treasury Stock; Income Taxes; Share-Based Compensation; Transfer of Financial Assets; Segment Information; Derivative Instruments and Hedging; Comprehensive Income (Loss); EPS; Loss Contingencies; and Collaborative Arrangements. There have been no material changes to Customers Bancorp's significant accounting policies noted above for the three months ended March 31, 2019, with the exception of the adoption of ASU 2016-02, Leases |
Recently Issued Accounting Standards | Presented below are recently issued accounting standards that Customers has adopted as well as those that the FASB has issued but are not yet effective. Recently Issued Accounting Standards Accounting Standards Adopted in 2019 Standard Summary of guidance Effects on Financial Statements ASU 2016-02, Leases Issued February 2016 Supersedes the lease accounting guidance for both lessees and lessors under ASC 840, Leases. From the lessee's perspective, the new standard establishes a ROU model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for lessees. This ASU requires lessors to account for leases using an approach that is substantially similar to the existing guidance for sales-type, direct financing leases and operating leases. Effective January 1, 2019. In July 2018, the FASB issued ASU 2018-11 “Leases (Topic 842): Targeted Improvements,” which provides lessees the option to apply the new leasing standard to all open leases as of the adoption date. Prior to this ASU issuance, a modified retrospective transition approach was required. In December 2018, the FASB issued ASU 2018-20 "Leases (Topic 842): Narrow-Scope Improvements for Lessors," which provides lessors a policy election to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Additionally, the update requires certain lessors to exclude from variable payments lessor costs paid by lessees directly to third parties. In March 2019, the FASB issued ASU 2019-01 "Codification Improvements," which clarifies that lessors who are not manufacturers or dealers should use the original cost of the underlying asset in a lease as its fair value. Additionally, the update states that lessors who are depository or lending institutions within the scope of ASC 942 should present all principal payments received under leases under investing activities in their Statement of Cash Flows and that interim disclosures under ASC 250-10-50-3 are not required in the interim reports of issuers adopting ASC 842. Customers adopted on January 1, 2019. The adoption did not materially change Customers' recognition of operating lease expense in its consolidated statements of income. Customers adopted certain practical expedients available under the new guidance, which did not require it to (1) reassess whether any expired or existing contracts contain leases, (2) reassess the lease classification for any expired or existing leases, (3) reassess initial direct costs for any existing leases, (4) separate non-lease components from the associated lease components, (5) evaluate whether certain sales taxes and other similar taxes are lessor costs, and (6) capitalize short-term leases. Additionally, Customers elected to apply the new lease guidance at the adoption date, rather than at the beginning of the earliest period presented and will continue to present comparative periods prior to January 1, 2019 under Topic 840. Customers did not adopt the hindsight practical expedient. The adoption of the ASU for Customers' lessor equipment finance business did not have a significant impact on Customers' financial condition, results of operations, and consolidated financial statements. See NOTE 7 - LEASES. ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities Requires that premiums for certain callable debt securities held be amortized to their earliest call date. Effective on January 1, 2019. Adoption of this new guidance must be applied on a modified retrospective approach. Customers adopted on January 1, 2019. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Accounting Standards Adopted in 2019 (continued) Standard Summary of guidance Effects on Financial Statements ASU 2017-11, Accounting for Certain Financial Instruments with Down Round Features Changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity's own stock. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) would no longer be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity-classified financial instruments, the amendments require entities to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of net income available to common shareholders in basic EPS. Effective January 1, 2019. Customers adopted on January 1, 2019. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting Expands the scope of Topic 718, Compensation - Stock Compensation, which currently only includes share-based payments issued to employees, to also include share-based payments issued to non-employees for goods and services. Applies to all share-based payment transactions in which a grantor acquires goods or services from non-employees to be used or consumed in a grantor's own operations by issuing share-based payment awards. With the amended guidance from ASU 2018-07, non-employees share-based payments are measured with an estimate of the fair value of the equity the business is obligated to issue at the grant date (the date that the business and the stock award recipient agree to the terms of the award). Compensation would be recognized in the same period and in the same manner as if the entity had paid cash for goods or services instead of stock. Effective January 1, 2019. Customers adopted on January 1, 2019. The adoption did not have a significant impact on Customers' financial condition, results of operations and consolidated financial statements. Accounting Standards Issued But Not Yet Adopted Standard Summary of guidance Effects on Financial Statements ASU 2019-04, Issued April 2019 Clarifies the scope of the credit losses standard and addresses issues related to accrued interest receivable balances, recoveries, variable interest rates, and prepayments. Addresses partial-term fair value hedges, fair value hedge basis adjustments and certain transition requirements. Addresses recognizing and measuring financial instruments, specifically the requirement for remeasurement under ASC 820 when using the measurement alternative, certain disclosure requirements and which equity securities have to be remeasured at historical exchange rates. Topic 326 Amendments - Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption permitted. Topic 815 Amendments - Effective for first annual period beginning after the issuance date of this ASU (i.e., fiscal year 2020). Entities that have already adopted the amendments in ASU 2017-12 may elect either to retrospectively apply all the amendments or to prospectively apply all amendments as of the date of adoption. Topic 825 Amendments - Effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Customers is currently evaluating the expected impact of this ASU on its financial condition, results of operations and consolidated financial statements. ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606 Issued November 2018 Clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 when the collaborative arrangement participant is a customer in the context of a unit of account. In those situations, all the guidance in Topic 606 should be applied, including recognition, measurement, presentation, and disclosure requirements. Adds unit-of-account guidance in Topic 808 to align with the guidance in Topic 606 when an entity is assessing whether the collaborative arrangement or a part of the arrangement is within scope of Topic 606. Requires that in a transaction with a collaborative arrangement participant that is not directly related to sales to third parties, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. Effective for fiscal year beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption permitted. Customers is currently evaluating the expected impact of this ASU on its financial condition, results of operations and consolidated financial statements. Accounting Standards Issued But Not Yet Adopted (continued) Standard Summary of guidance Effects on Financial Statements ASU 2018-15, Internal-Use Software (Subtopic 350-40): Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Issued August 2018 Clarifies that service contracts with hosting arrangements must follow internal-use software guidance Subtopic 350-40 when determining which implementation costs to capitalize as an asset related to the service contract and which costs to expense. Also clarifies that capitalized implementation costs of a hosting arrangement that is a service contract are to be amortized over the term of the hosting arrangement, which includes the noncancelable period of the arrangement plus options to extend the arrangement if reasonably certain to exercise. Clarifies that existing impairment guidance in Subtopic 350-40 must be applied to the capitalized implementation costs as if they were long-lived assets. Applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Effective for fiscal year beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption permitted. Customers is currently evaluating the expected impact of this ASU on its financial condition, results of operations and consolidated financial statements. ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments Issued June 2016 Requires an entity to utilize a new impairment model known as the CECL model to estimate lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset (including held to maturity securities), presents the net amount expected to be collected on the financial asset. Replaces today's "incurred loss" approach and is expected to result in earlier recognition of credit losses. For available-for-sale debt securities, entities will be required to record allowances for credit losses rather than reduce the carrying amount, as they do today under the OTTI model, and will be allowed to reverse previously established allowances in the event the credit of the issuer improves. Simplifies the accounting model for PCI debt securities and loans. Effective beginning after December 15, 2019 with early adoption permitted. Adoption can be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. ASC 842. Customers has established a company-wide, cross-discipline governance structure, which provides implementation oversight and continues evaluating the impact of this ASU and reviewing the loss modeling requirements consistent with lifetime expected loss estimates. Customers has selected a third-party vendor to assist in the implementation process of its new model, which will include different assumptions used in calculating credit losses, such as estimating losses over the contractual term adjusted for prepayments and will consider expected future changes in macroeconomic conditions. Customers continues to evaluate data requirements, methodologies, and forecasting options to utilize within the new model. Additionally, Customers is evaluating how to properly segment its loan and lease portfolio. Customers has completed preliminary runs of the new model and continues to evaluate the results and assumptions as it prepares to run two methodologies parallel in the second half of 2019. The adoption of this ASU may result in an increase to Customers' ALLL which will depend upon the nature and characteristics of Customers' loan and lease portfolio at the adoption date, as well as the macroeconomic conditions and forecasts at that date. Customers does not intend to early adopt this new guidance. |
Fair Value Measurement | Customers uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. ASC Topic 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. Many of these financial instruments lack an available trading market as characterized by a willing buyer and a willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC Topic 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require adjustments to inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). |
Derivatives | Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers' derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers' known or expected cash receipts and its known or expected cash payments principally related to certain borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers' interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Customers' objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest-rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The following are the components and results of Customers' earnings per common share calculations for the periods presented. Three Months Ended March 31, (amounts in thousands, except share and per share data) 2019 2018 Net income available to common shareholders $ 11,825 $ 20,527 Weighted-average number of common shares outstanding - basic 31,047,191 31,424,496 Share-based compensation plans 435,676 840,561 Warrants — 8,916 Weighted-average number of common shares - diluted 31,482,867 32,273,973 Basic earnings per common share $ 0.38 $ 0.65 Diluted earnings per common share $ 0.38 $ 0.64 |
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following is a summary of securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because either the performance conditions for certain of the share-based compensation awards have not been met or to do so would have been anti-dilutive for the periods presented. Three Months Ended March 31, 2019 2018 Share-based compensation awards 2,159,232 1,059,225 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) By Component (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (loss) | The following tables present the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2019 and 2018 . All amounts are presented net of tax. Amounts in parentheses indicate reductions to AOCI. Three Months Ended March 31, 2019 Available-for-Sale Debt Securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Gains (Losses) on Cash Flow Hedges Total Balance - December 31, 2018 $ (21,741 ) $ — $ (21,741 ) $ (922 ) $ (22,663 ) Other comprehensive income (loss) before reclassifications 13,185 — 13,185 (5,135 ) 8,050 Amounts reclassified from accumulated other comprehensive income (loss) to net income (1) — — — (306 ) (306 ) Net current-period other comprehensive income 13,185 — 13,185 (5,441 ) 7,744 Balance - March 31, 2019 $ (8,556 ) $ — $ (8,556 ) $ (6,363 ) $ (14,919 ) Three Months Ended March 31, 2018 (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Unrealized Gains (Losses) on Available-For-Sale Securities Unrealized Gains (Losses) on Cash Flow Hedges Total Balance - December 31, 2017 $ (249 ) $ 88 $ (161 ) $ (198 ) $ (359 ) Reclassification of the income tax effects of the Tax Cuts and Jobs Act (2) (256 ) — (256 ) (42 ) (298 ) Reclassification of net unrealized gains on equity securities (2) (953 ) (88 ) (1,041 ) — (1,041 ) Balance after reclassification adjustments on January 1, 2018 (1,458 ) — (1,458 ) (240 ) (1,698 ) Other comprehensive income (loss) before reclassifications (25,233 ) — (25,233 ) 646 (24,587 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (1) — — — 97 97 Net current-period other comprehensive income (loss) (25,233 ) — (25,233 ) 743 (24,490 ) Balance - March 31, 2018 $ (26,691 ) $ — $ (26,691 ) $ 503 $ (26,188 ) (1) Reclassification amounts for available-for-sale debt securities are reported as gain or loss on sale of investment securities on the consolidated statements of income. During the three months ended March 31, 2019 and 2018, there were no sales of investment securities. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. During the three months ended March 31, 2019 , a reclassification amount of $413 thousand ( $306 thousand net of taxes) was reported as a reduction to interest expense on FHLB advances on the consolidated statements of income. During the three months ended March 31, 2018, a reclassification amount of $131 thousand ( $97 thousand net of taxes) was reported as interest expense on FHLB advances on the consolidated statements of income. (2) Amounts reclassified from accumulated other comprehensive income (loss) on January 1, 2018 as a result of the adoption of ASU 2018-02 and ASU 2016-01 resulted in a decrease in AOCI of $1.3 million |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Approximate Fair Value of Investment Securities | The amortized cost and approximate fair value of investment securities as of March 31, 2019 and December 31, 2018 are summarized in the tables below: March 31, 2019 (amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ 306,651 $ 62 $ (2,569 ) $ 304,144 Corporate notes (1) 381,334 639 (9,695 ) 372,278 Available-for-sale debt securities $ 687,985 $ 701 $ (12,264 ) 676,422 Equity securities (2) 1,720 Total investment securities, at fair value $ 678,142 December 31, 2018 (amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ 311,267 $ — $ (5,893 ) $ 305,374 Corporate notes (1) 381,407 920 (24,407 ) 357,920 Available-for-sale debt securities $ 692,674 $ 920 $ (30,300 ) 663,294 Equity securities (2) 1,718 Total investment securities, at fair value $ 665,012 (1) Includes corporate securities issued by other bank holding companies. (2) |
Summary of Available-for-Sale Debt Securities by Stated Maturity | The following table shows available-for-sale debt securities by stated maturity. Debt securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date: March 31, 2019 (amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 354,268 345,717 Due after ten years 27,066 26,561 Agency-guaranteed residential mortgage-backed securities 306,651 304,144 Total debt securities $ 687,985 $ 676,422 |
Gross Unrealized Losses and Fair Value, Aggregated by Investment Category | Gross unrealized losses and fair value of Customers' available-for-sale debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 Less Than 12 Months 12 Months or More Total (amounts in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ — $ — $ 211,098 $ (2,569 ) $ 211,098 $ (2,569 ) Corporate notes 21,873 (93 ) 314,767 (9,602 ) 336,640 (9,695 ) Total $ 21,873 $ (93 ) $ 525,865 $ (12,171 ) $ 547,738 $ (12,264 ) December 31, 2018 Less Than 12 Months 12 Months or More Total (amounts in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ 305,374 $ (5,893 ) $ — $ — $ 305,374 $ (5,893 ) Corporate notes 310,036 (24,407 ) — — 310,036 (24,407 ) Total $ 615,410 $ (30,300 ) $ — $ — $ 615,410 $ (30,300 ) |
Loans and Leases Receivable a_2
Loans and Leases Receivable and Allowance for Loan and Lease Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans and Leases Receivable | The following table presents loans and leases receivable as of March 31, 2019 and December 31, 2018 . (amounts in thousands) March 31, 2019 December 31, 2018 Loans receivable, mortgage warehouse, at fair value $ 1,480,195 $ 1,405,420 Loans receivable: Commercial: Multi-family 3,212,312 3,285,297 Commercial and industrial (including owner occupied commercial real estate) (1) 2,038,229 1,951,277 Commercial real estate non-owner occupied 1,107,336 1,125,106 Construction 53,372 56,491 Total commercial loans and leases receivable 6,411,249 6,418,171 Consumer: Residential real estate 625,066 566,561 Manufactured housing 77,778 79,731 Other 153,153 74,035 Total consumer loans receivable 855,997 720,327 Loans and leases receivable 7,267,246 7,138,498 Deferred (fees) costs and unamortized (discounts) premiums, net (3,197 ) (424 ) Allowance for loan and lease losses (43,679 ) (39,972 ) Total loans and leases receivable, net of allowance for loan and lease losses $ 8,700,565 $ 8,503,522 (1) Includes direct finance equipment leases of $56.4 million and $54.5 million |
Loans and Leases Receivable by Loan Type and Performance Status | The following tables summarize loans receivable by loan type and performance status as of March 31, 2019 and December 31, 2018 : March 31, 2019 (amounts in thousands) 30-89 Days Past Due (1) 90 Days or More Past Due (1) Total Past Due (1) Non-Accrual Current (2) Purchased-Credit-Impaired Loans (3) Total Loans and Leases (4) Multi-family $ 3,794 $ — $ 3,794 $ 1,997 $ 3,204,879 $ 1,642 $ 3,212,312 Commercial and industrial 1,271 — 1,271 12,225 1,441,679 417 1,455,592 Commercial real estate owner occupied 3,566 — 3,566 839 570,380 7,852 582,637 Commercial real estate non-owner occupied 1,976 — 1,976 102 1,101,129 4,129 1,107,336 Construction — — — — 53,372 — 53,372 Residential real estate 5,612 — 5,612 5,574 609,874 4,006 625,066 Manufactured housing (5) 3,686 1,936 5,622 1,924 68,362 1,870 77,778 Other consumer 491 — 491 108 152,348 206 153,153 Total $ 20,396 $ 1,936 $ 22,332 $ 22,769 $ 7,202,023 $ 20,122 $ 7,267,246 December 31, 2018 (amounts in thousands) 30-89 Days Past Due (1) 90 Days or More Past Due (1) Total Past Due (1) Non-Accrual Current (2) Purchased-Credit-Impaired Loans (3) Total Loans and Leases (4) Multi-family $ — $ — $ — $ 1,155 $ 3,282,452 $ 1,690 $ 3,285,297 Commercial and industrial 1,914 — 1,914 17,764 1,353,586 536 1,373,800 Commercial real estate owner occupied 193 — 193 1,037 567,809 8,438 577,477 Commercial real estate non-owner occupied 1,190 — 1,190 129 1,119,443 4,344 1,125,106 Construction — — — — 56,491 — 56,491 Residential real estate 5,940 — 5,940 5,605 550,679 4,337 566,561 Manufactured housing (5) 3,926 2,188 6,114 1,693 69,916 2,008 79,731 Other consumer 200 — 200 111 73,503 221 74,035 Total $ 13,363 $ 2,188 $ 15,551 $ 27,494 $ 7,073,879 $ 21,574 $ 7,138,498 (1) Includes past due loans and leases that are accruing interest because collection is considered probable. (2) Loans and leases 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. Due to the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the ALLL. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 |
Schedule of Allowance for Loan Losses | The changes in the ALLL for the three months ended March 31, 2019 and 2018 , and the loans and ALLL by loan type based on impairment-evaluation method as of March 31, 2019 and December 31, 2018 are presented in the tables below. Three Months Ended March 31, 2019 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Ending Balance, $ 11,462 $ 12,145 $ 3,320 $ 6,093 $ 624 $ 3,654 $ 145 $ 2,529 $ 39,972 Charge-offs (541 ) — (8 ) — — (40 ) — (755 ) (1,344 ) Recoveries — 119 128 — 6 7 — 24 284 Provision for loan and lease losses (291 ) 383 (15 ) (78 ) (46 ) 2,951 (28 ) 1,891 4,767 Ending Balance, $ 10,630 $ 12,647 $ 3,425 $ 6,015 $ 584 $ 6,572 $ 117 $ 3,689 $ 43,679 As of March 31, 2019 Loans and leases receivable: Individually evaluated for impairment $ 1,997 $ 17,411 $ 867 $ 102 $ — $ 8,567 $ 10,307 $ 108 $ 39,359 Collectively evaluated for impairment 3,208,673 1,437,764 573,918 1,103,105 53,372 612,493 65,601 152,839 7,207,765 Loans acquired with credit deterioration 1,642 417 7,852 4,129 — 4,006 1,870 206 20,122 Total loans and leases receivable $ 3,212,312 $ 1,455,592 $ 582,637 $ 1,107,336 $ 53,372 $ 625,066 $ 77,778 $ 153,153 $ 7,267,246 Allowance for loan and lease losses: Individually evaluated for impairment $ — $ 263 $ 36 $ — $ — $ 78 $ 3 $ — $ 380 Collectively evaluated for impairment 10,630 12,116 3,389 4,019 584 6,105 89 3,537 40,469 Loans acquired with credit deterioration — 268 — 1,996 — 389 25 152 2,830 Total allowance for loan and lease losses $ 10,630 $ 12,647 $ 3,425 $ 6,015 $ 584 $ 6,572 $ 117 $ 3,689 $ 43,679 Three Months Ended March 31, 2018 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Ending Balance, $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 Charge-offs — (50 ) (18 ) — — (365 ) — (256 ) (689 ) Recoveries — 35 — — 11 7 — 3 56 Provision for loan and lease losses 377 834 311 (204 ) (69 ) 608 (4 ) 264 2,117 Ending Balance, $ 12,545 $ 11,737 $ 3,525 $ 7,233 $ 921 $ 3,179 $ 176 $ 183 $ 39,499 As of December 31, 2018 Loans and leases receivable: Individually evaluated for impairment $ 1,155 $ 17,828 $ 1,069 $ 129 $ — $ 8,631 $ 10,195 $ 111 $ 39,118 Collectively evaluated for impairment 3,282,452 1,355,436 567,970 1,120,633 56,491 553,593 67,528 73,703 7,077,806 Loans acquired with credit deterioration 1,690 536 8,438 4,344 — 4,337 2,008 221 21,574 Total loans and leases receivable $ 3,285,297 $ 1,373,800 $ 577,477 $ 1,125,106 $ 56,491 $ 566,561 $ 79,731 $ 74,035 $ 7,138,498 Allowance for loan and lease losses: Individually evaluated for impairment $ 539 $ 261 $ 1 $ — $ — $ 41 $ 3 $ — $ 845 Collectively evaluated for impairment 10,923 11,516 3,319 4,161 624 3,227 89 2,390 36,249 Loans acquired with credit deterioration — 368 — 1,932 — 386 53 139 2,878 Total allowance for loan and lease losses $ 11,462 $ 12,145 $ 3,320 $ 6,093 $ 624 $ 3,654 $ 145 $ 2,529 $ 39,972 |
Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans | The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for impaired loans that were individually evaluated for impairment as of March 31, 2019 and December 31, 2018 and the average recorded investment and interest income recognized for the three months ended March 31, 2019 and 2018 . Customers did not have any impaired lease receivables as of March 31, 2019 and December 31, 2018, respectively. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. March 31, 2019 Three Months Ended (amounts in thousands) Recorded Investment Net of Charge-Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Multi-family $ 1,997 $ 2,538 $ — $ 998 $ — Commercial and industrial 11,185 12,749 — 12,422 2 Commercial real estate owner occupied 556 1,103 — 796 21 Commercial real estate non-owner occupied 102 214 — 115 — Residential real estate 4,722 5,044 — 4,782 — Manufactured housing 10,140 10,140 — 10,084 115 Other consumer 108 108 — 110 — With an allowance recorded: Multi-family — — — 578 — Commercial and industrial 6,226 6,409 263 5,197 39 Commercial real estate owner occupied 311 498 36 172 1 Residential real estate 3,845 3,845 78 3,817 26 Manufactured housing 167 167 3 168 2 Total $ 39,359 $ 42,815 $ 380 $ 39,239 $ 206 December 31, 2018 Three Months Ended (amounts in thousands) Recorded Investment Net of Charge-Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 13,660 $ 15,263 $ — $ 7,484 $ — Commercial real estate owner occupied 1,037 1,766 — 710 — Commercial real estate non-owner occupied 129 241 — 201 — Residential real estate 4,842 5,128 — 3,623 — Manufactured housing 10,027 10,027 — 9,876 131 Other consumer 111 111 — 63 — With an allowance recorded: Multi-family 1,155 1,155 539 — — Commercial and industrial 4,168 4,351 261 8,390 1 Commercial real estate owner occupied 32 32 1 756 1 Residential real estate 3,789 3,789 41 5,122 25 Manufactured housing 168 168 3 223 — Total $ 39,118 $ 42,031 $ 845 $ 36,448 $ 158 |
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment | The following table presents total TDRs based on loan type and accrual status at March 31, 2019 and December 31, 2018 . Nonaccrual TDRs are included in the reported amount of total non-accrual loans. March 31, 2019 December 31, 2018 (amounts in thousands) Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total Commercial and industrial $ 5,186 $ 471 $ 5,657 $ 64 $ 5,273 $ 5,337 Commercial real estate owner occupied 28 — 28 32 — 32 Residential real estate 2,993 723 3,716 3,026 667 3,693 Manufactured housing 8,383 1,850 10,233 8,502 1,620 10,122 Other consumer — 11 11 — 12 12 Total TDRs $ 16,590 $ 3,055 $ 19,645 $ 11,624 $ 7,572 $ 19,196 twelve months following the modification: March 31, 2019 March 31, 2018 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Manufactured housing 5 $ 137 1 $ 29 Commercial and industrial 1 431 — — Total loans $ 6 $ 568 1 $ 29 three months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Commercial and industrial 1 $ 431 — $ — Manufactured housing 10 385 9 322 Residential real estate 1 83 — — Total loans 12 $ 899 9 $ 322 |
Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession | The following table presents loans modified in a TDR by type of concession for the three months ended March 31, 2019 and 2018 . There were no modifications that involved forgiveness of debt for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 (dollars in thousands) Number of Loans Recorded Investment Number of Loans Recorded Investment Extensions of maturity 2 $ 514 — $ — Interest-rate reductions 10 385 9 322 Total 12 $ 899 9 $ 322 |
Changes in Accretable Yield Related to Purchased-credit-impaired Loans | The changes in accretable yield related to PCI loans for the three months ended March 31, 2019 and 2018 were as follows: Three Months Ended March 31, (amounts in thousands) 2019 2018 Accretable yield balance, beginning of period $ 6,178 $ 7,825 Accretion to interest income (277 ) (338 ) Reclassification from nonaccretable difference and disposals, net 293 176 Accretable yield balance, end of period $ 6,194 $ 7,663 |
Credit Ratings of Covered and Non-Covered Loan Portfolio | The following tables present the credit ratings of loans and leases receivable as of March 31, 2019 and December 31, 2018 . March 31, 2019 (amounts in thousands) Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (3) Pass/Satisfactory $ 3,164,722 $ 1,395,034 $ 565,631 $ 1,036,957 $ 53,372 $ — $ — $ — $ 6,215,716 Special Mention 40,441 30,575 12,300 30,258 — — — — 113,574 Substandard 7,149 29,983 4,706 40,121 — — — — 81,959 Performing (1) — — — — — 613,880 70,232 152,554 836,666 Non-performing (2) — — — — — 11,186 7,546 599 19,331 Total $ 3,212,312 $ 1,455,592 $ 582,637 $ 1,107,336 $ 53,372 $ 625,066 $ 77,778 $ 153,153 $ 7,267,246 December 31, 2018 (amounts in thousands) Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (3) Pass/Satisfactory $ 3,201,822 $ 1,306,466 $ 562,639 $ 1,054,493 $ 56,491 $ — $ — $ — $ 6,181,911 Special Mention 55,696 30,551 9,730 30,203 — — — — 126,180 Substandard 27,779 36,783 5,108 40,410 — — — — 110,080 Performing (1) — — — — — 555,016 71,924 73,724 700,664 Non-performing (2) — — — — — 11,545 7,807 311 19,663 Total $ 3,285,297 $ 1,373,800 $ 577,477 $ 1,125,106 $ 56,491 $ 566,561 $ 79,731 $ 74,035 $ 7,138,498 (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 interest or on nonaccrual status. (3) |
Schedule of Loan Purchases and Sales | Purchases and sales of loans were as follows for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, (amounts in thousands) 2019 2018 Purchases (1) Residential real estate $ 66,384 $ — Other consumer 66,136 — Total $ 132,520 $ — Sales (2) Commercial and industrial (3) — (6,842 ) Commercial real estate owner occupied (3) — (8,151 ) Total $ — $ (14,993 ) (1) The purchase price was 97.6% of loans outstanding for the three months ended March 31, 2019 . There were no loan purchases during the three months ended March 31, 2018 . (2) There were no loan sales for the three months ended March 31, 2019 . For the three months ended March 31, 2018 , loan sales resulted in a net gain of $1.4 million . (3) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Summary of Right-of-Use Assets and Lease Liabilities | The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Operating lease ROU assets Other assets $ 22,469 LIABILITIES Operating lease liabilities Other liabilities $ 23,649 |
Lease, Cost | The following table summarizes operating lease cost and its corresponding income statement location: Three Months Ended March 31, (amounts in thousands) Classification 2019 Operating lease cost (1) Occupancy expenses $ 1,469 (1) There were no |
Maturities of Non-cancelable Lease Liabilities | Maturities of non-cancelable operating lease liabilities were as follows: (amounts in thousands) March 31, 2019 2019 $ 4,303 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments 25,391 Less: interest 1,742 Present value of lease liabilities $ 23,649 |
Summary of Lease Term and Discount Rate for Operating Leases | The following table summarizes the term and discount rate information for Customers' operating leases. (amounts in thousands) March 31, 2019 Weighted average remaining lease term (years) Operating leases 5.6 years Weighted average discount rate Operating leases 2.74 % |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental commitments pursuant to non-cancelable operating leases as of December 31, 2018, were as follows: (amounts in thousands) December 31, 2018 2019 $ 5,577 2020 5,135 2021 4,513 2022 3,885 2023 2,856 Thereafter 4,699 Total minimum payments $ 26,665 |
Lessor, Lease Receivables and Investment in Operating Leases and their Corresponding Balance Sheet Location | The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location: (amounts in thousands) Classification March 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 56,553 Guaranteed residual assets Loans and leases receivable 5,540 Unguaranteed residual assets Loans and leases receivable 622 Deferred initial direct costs Loans and leases receivable 745 Unearned income Loans and leases receivable (6,342 ) Net investment in direct financing leases $ 57,118 Operating leases Investment in operating leases Other assets $ 67,093 Accumulated depreciation Other assets (6,705 ) Deferred initial direct costs Other assets 864 Net investment in operating leases 61,252 Total lease assets $ 118,370 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, or to comply with the Basel III capital requirements, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table: Minimum Capital Levels to be Classified as: Actual Adequately Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of March 31, 2019: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 759,887 8.914 % $ 383,603 4.500 % N/A N/A $ 596,715 7.000 % Customers Bank $ 1,070,664 12.574 % $ 383,186 4.500 % $ 553,491 6.500 % $ 596,068 7.000 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 977,339 11.465 % $ 511,470 6.000 % N/A N/A $ 724,583 8.500 % Customers Bank $ 1,070,664 12.574 % $ 510,915 6.000 % $ 681,220 8.000 % $ 723,796 8.500 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,101,041 12.916 % $ 691,960 8.000 % N/A N/A $ 895,073 10.500 % Customers Bank $ 1,223,727 14.371 % $ 681,220 8.000 % $ 851,525 10.000 % $ 894,101 10.500 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 977,339 10.006 % $ 390,685 4.000 % N/A N/A $ 390,685 4.000 % Customers Bank $ 1,070,664 10.969 % $ 390,430 4.000 % $ 488,038 5.000 % $ 390,430 4.000 % As of December 31, 2018: Common equity Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 745,795 8.964 % $ 374,388 4.500 % N/A N/A $ 530,384 6.375 % Customers Bank $ 1,066,121 12.822 % $ 374,160 4.500 % $ 540,453 6.500 % $ 530,059 6.375 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 963,266 11.578 % $ 499,185 6.000 % N/A N/A $ 655,180 7.875 % Customers Bank $ 1,066,121 12.822 % $ 498,879 6.000 % $ 665,173 8.000 % $ 654,779 7.875 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,081,962 13.005 % $ 665,580 8.000 % N/A N/A $ 821,575 9.875 % Customers Bank $ 1,215,522 14.619 % $ 665,173 8.000 % $ 831,466 10.000 % $ 821,072 9.875 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 963,266 9.665 % $ 398,668 4.000 % N/A N/A $ 398,668 4.000 % Customers Bank $ 1,066,121 10.699 % $ 398,570 4.000 % $ 498,212 5.000 % $ 398,570 4.000 % |
Disclosures About Fair Value _2
Disclosures About Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers' financial instruments at March 31, 2019 and December 31, 2018 were as follows. Fair Value Measurements at March 31, 2019 (amounts in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 117,662 $ 117,662 $ 117,662 $ — $ — Debt securities, available for sale 676,422 676,422 — 676,422 — Equity securities 1,720 1,720 1,720 — — Loans held for sale 1,602 1,602 — 1,602 — Total loans and leases receivable, net of allowance for loan and lease losses 8,700,565 8,774,518 — 1,480,195 7,294,323 FHLB, Federal Reserve Bank and other restricted stock 80,416 80,416 — 80,416 — Derivatives 14,665 14,665 — 14,588 77 Liabilities: Deposits $ 7,425,318 $ 7,422,232 $ 5,867,017 $ 1,555,215 $ — Federal funds purchased 388,000 388,000 388,000 — — FHLB advances 1,025,832 1,025,830 500,832 524,998 — Other borrowings 123,963 123,591 — 123,591 — Subordinated debt 109,002 113,988 — 113,988 — Derivatives 23,837 23,837 — 23,837 — Fair Value Measurements at December 31, 2018 (amounts in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash and cash equivalents $ 62,135 $ 62,135 $ 62,135 $ — $ — Debt securities, available for sale 663,294 663,294 — 663,294 — Equity securities 1,718 1,718 1,718 — — Loans held for sale 1,507 1,507 — 1,507 — Total loans and leases receivable, net of allowance for loan and lease losses 8,503,522 8,481,128 — 1,405,420 7,075,708 FHLB, Federal Reserve Bank and other restricted stock 89,685 89,685 — 89,685 — Derivatives 14,693 14,693 — 14,624 69 Liabilities: Deposits $ 7,142,236 $ 7,136,009 $ 5,408,055 $ 1,727,954 $ — Federal funds purchased 187,000 187,000 187,000 — — FHLB advances 1,248,070 1,248,046 998,070 249,976 — Other borrowings 123,871 121,718 — 121,718 — Subordinated debt 108,977 110,550 — 110,550 — Derivatives 16,286 16,286 — 16,286 — |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2019 and December 31, 2018 were as follows: March 31, 2019 Fair Value Measurements at the End of the Reporting Period Using (amounts in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Measured at Fair Value on a Recurring Basis: Assets Available-for-sale debt securities: Agency-guaranteed residential mortgage-backed securities $ — $ 304,144 $ — $ 304,144 Corporate notes — 372,278 — 372,278 Equity securities 1,720 — — 1,720 Derivatives — 14,588 77 14,665 Loans held for sale – fair value option — 1,602 — 1,602 Loans receivable, mortgage warehouse – fair value option — 1,480,195 — 1,480,195 Total assets – recurring fair value measurements $ 1,720 $ 2,172,807 $ 77 $ 2,174,604 Liabilities Derivatives $ — $ 23,837 $ — $ 23,837 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $380 $ — $ — $ 12,668 $ 12,668 Other real estate owned — — 781 781 Total assets – nonrecurring fair value measurements $ — $ — $ 13,449 $ 13,449 December 31, 2018 Fair Value Measurements at the End of the Reporting Period Using (amounts in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Measured at Fair Value on a Recurring Basis: Assets Available-for-sale securities: Agency-guaranteed residential mortgage–backed securities $ — $ 305,374 $ — $ 305,374 Corporate notes — 357,920 — 357,920 Equity securities 1,718 — — 1,718 Derivatives — 14,624 69 14,693 Loans held for sale – fair value option — 1,507 — 1,507 Loans receivable, mortgage warehouse – fair value option — 1,405,420 — 1,405,420 Total assets – recurring fair value measurements $ 1,718 $ 2,084,845 $ 69 $ 2,086,632 Liabilities Derivatives $ — $ 16,286 $ — $ 16,286 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of reserves of $845 $ — $ — $ 10,876 $ 10,876 Other real estate owned — — 621 621 Total assets – nonrecurring fair value measurements $ — $ — $ 11,497 $ 11,497 |
Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis for the three months ended March 31, 2019 and 2018 are summarized in the tables below. Additional information about residential mortgage loan commitments can be found in NOTE 10 - DERIVATIVES INSTRUMENTS AND HEDGING ACTIVITIES. Residential Mortgage Loan Commitments Three Months Ended March 31, (amounts in thousands) 2019 2018 Balance at December 31 $ 69 $ 60 Issuances 77 83 Settlements (69 ) (60 ) Balance at March 31 $ 77 $ 83 |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value as of March 31, 2019 and December 31, 2018 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. The unobservable Level 3 inputs noted below contain a level of uncertainty that may differ from what is realized in an immediate settlement of the assets. Therefore, Customers may realize a value higher or lower than the current estimated fair value of the assets. Quantitative Information about Level 3 Fair Value Measurements March 31, 2019 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts in thousands) Impaired loans - real estate $ 5,270 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% Impaired loans - commercial & industrial 7,398 Business asset valuation (3) Business asset valuation adjustments (4) 8% - 50% Other real estate owned 781 Collateral appraisal (1) Liquidation expenses (2) 8% - 13% Residential mortgage loan commitments 77 Adjusted market bid Pull-through rate 83% - 83% Quantitative Information about Level 3 Fair Value Measurements December 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts in thousands) Impaired loans - real estate $ 10,260 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% Impaired loans - commercial & industrial 616 Business asset valuation (3) Business asset valuation adjustments (4) 8% - 50% Other real estate owned 621 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% Residential mortgage loan commitments 69 Adjusted market bid Pull-through rate 90% - 90% (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. Customers does not generally discount appraisals. (2) Appraisals are adjusted by management for liquidation expenses. The range and weighted average of liquidation expense adjustments are presented as a percentage of the appraisal. (3) Business asset valuation obtained from independent party. (4) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments | The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of March 31, 2019 and December 31, 2018 . March 31, 2019 Derivative Assets Derivative Liabilities (amounts in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 38 Other liabilities $ 8,636 Total $ 38 $ 8,636 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 14,369 Other liabilities $ 15,136 Credit contracts Other assets 181 Other liabilities 65 Residential mortgage loan commitments Other assets 77 Other liabilities — Total $ 14,627 $ 15,201 December 31, 2018 Derivative Assets Derivative Liabilities (amounts in thousands) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ 256 Other liabilities $ 1,502 Total $ 256 $ 1,502 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 14,300 Other liabilities $ 14,730 Credit contracts Other assets 68 Other liabilities 54 Residential mortgage loan commitments Other assets 69 Other liabilities — Total $ 14,437 $ 14,784 |
Effect of Derivative Financial Instruments on Comprehensive Income | The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 (amounts in thousands) Income Statement Location Amount of Income (Loss) Recognized in Earnings Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ (287 ) Credit contracts Other non-interest income 102 Residential mortgage loan commitments Mortgage banking income 8 Total $ (177 ) Three Months Ended March 31, 2018 (amounts in thousands) Income Statement Location Amount of Income (Loss) Recognized in Earnings Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 385 Credit contracts Other non-interest income (23 ) Residential mortgage loan commitments Mortgage banking income 23 Total $ 385 Three Months Ended March 31, 2019 (amounts in thousands) Amount of Gain (Loss) Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Derivatives in cash flow hedging relationships: Interest rate swaps $ (5,135 ) Interest expense $ 413 Three Months Ended March 31, 2018 (amounts in thousands) Amount of Gain (Loss) Recognized in OCI on Derivatives (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Derivatives in cash flow hedging relationships: Interest rate swaps $ 646 Interest expense $ (131 ) (1) Amounts presented are net of taxes. See NOTE 4 - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges for the periods presented. |
Summary of Offsetting of Financial Assets and Derivative Assets | Offsetting of Financial Assets and Derivative Assets At March 31, 2019 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Financial Instruments Cash Collateral Received Net Amount Description Interest rate swap derivatives with institutional counterparties $ 3,816 $ — $ 3,816 $ — $ — $ 3,816 At December 31, 2018 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Financial Instruments Cash Collateral Received Net Amount Description Interest rate swap derivatives with institutional counterparties $ 7,529 $ — $ 7,529 $ — $ 1,860 $ 5,669 |
Summary of Offsetting of Financial Liabilities and Derivative Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities At March 31, 2019 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Financial Instruments Cash Collateral Pledged Net Amount Description Interest rate swap derivatives with institutional counterparties $ 20,036 $ — $ 20,036 $ — $ 19,462 $ 574 At December 31, 2018 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount (amounts in thousands) Financial Instruments Cash Collateral Pledged Description Interest rate swap derivatives with institutional counterparties $ 9,077 $ — $ 9,077 $ — $ 702 $ 8,375 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables present the operating results for Customers' reportable business segments for the three months ended March 31, 2019 and 2018 . The segment financial results include directly attributable revenues and expenses. Consistent with the presentation of segment results to Customers' chief operating decision makers, overhead costs and preferred stock dividends are assigned to the Customers Bank Business Banking segment. The tax benefit assigned to BankMobile was based on an estimated effective tax rate of 23.15% for 2019 and 24.56% for 2018 , respectively. Three Months Ended March 31, 2019 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 92,871 $ 8,204 $ 101,075 Interest expense 41,605 166 41,771 Net interest income 51,266 8,038 59,304 Provision for loan losses 2,976 1,791 4,767 Non-interest income 7,577 12,141 19,718 Non-interest expense 35,384 18,600 53,984 Income (loss) before income tax expense (benefit) 20,483 (212 ) 20,271 Income tax expense (benefit) 4,880 (49 ) 4,831 Net income (loss) 15,603 (163 ) 15,440 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 11,988 $ (163 ) $ 11,825 As of March 31, 2019 Goodwill and other intangibles $ 3,629 $ 12,544 $ 16,173 Total assets $ 9,916,308 $ 227,586 $ 10,143,894 Total deposits $ 6,798,562 $ 626,756 $ 7,425,318 Total non-deposit liabilities $ 1,719,469 $ 20,734 $ 1,740,203 (1) Amounts reported include funds transfer pricing of $5.6 million for the three months ended March 31, 2019 , credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of low/no cost deposits. Three Months Ended March 31, 2018 (amounts in thousands) Customers Bank Banking BankMobile Consolidated Interest income (2) $ 92,554 $ 4,410 $ 96,964 Interest expense 31,917 16 31,933 Net interest income 60,637 4,394 65,031 Provision for loan losses 1,874 243 2,117 Non-interest income 8,439 12,471 20,910 Non-interest expense 34,331 17,949 52,280 Income (loss) before income tax expense (benefit) 32,871 (1,327 ) 31,544 Income tax expense (benefit) 7,728 (326 ) 7,402 Net income (loss) 25,143 (1,001 ) 24,142 Preferred stock dividends 3,615 — 3,615 Net income (loss) available to common shareholders $ 21,528 $ (1,001 ) $ 20,527 As of March 31, 2018 Goodwill and other intangibles $ 3,630 $ 13,847 $ 17,477 Total assets $ 10,690,479 $ 78,787 $ 10,769,266 Total deposits $ 6,418,810 $ 623,649 $ 7,042,459 Total non-deposit liabilities $ 2,759,156 $ 48,563 $ 2,807,719 (2) Amounts reported include funds transfer pricing of $4.4 million for the three months ended March 31, 2018 |
Non-Interest Revenues (Tables)
Non-Interest Revenues (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present Customers' non-interest revenues affected by ASC 606 by business segment for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 (amounts in thousands) Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 180 $ 8,626 $ 8,806 Deposit fees 300 1,909 2,209 University fees - card and disbursement fees — 355 355 Total revenue recognized at point in time 480 10,890 11,370 Revenue recognized over time: University fees - subscription revenue — 979 979 Total revenue recognized over time — 979 979 Total revenue from contracts with customers $ 480 $ 11,869 $ 12,349 Three Months Ended March 31, 2018 (amounts in thousands) Community Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 223 $ 9,438 $ 9,661 Deposit fees 287 1,805 2,092 University fees - card and disbursement fees — 326 326 Total revenue recognized at point in time 510 11,569 12,079 Revenue recognized over time: University fees - subscription revenue — 870 870 Total revenue recognized over time — 870 870 Total revenue from contracts with customers $ 510 $ 12,439 $ 12,949 |
Description of the Business - A
Description of the Business - Additional Information (Detail) | Mar. 31, 2019Branch |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches (branch) | 13 |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income (loss) available to common shareholders | $ 11,825 | $ 20,527 |
Weighted-average number of common shares outstanding - basic (shares) | 31,047,191 | 31,424,496 |
Share-based compensation plans (shares) | 435,676 | 840,561 |
Warrants (shares) | 0 | 8,916 |
Weighted-average number of common shares - diluted (shares) | 31,482,867 | 32,273,973 |
Basic earnings per common share (usd per share) | $ 0.38 | $ 0.65 |
Diluted earnings per common share (usd per share) | $ 0.38 | $ 0.64 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based compensation awards | ||
Anti-dilutive securities: | ||
Total anti-dilutive securities (shares) | 2,159,232 | 1,059,225 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) By Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 956,816 | $ 920,964 | ||
Other comprehensive income (loss) before reclassifications | 8,050 | (24,587) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | (306) | 97 | ||
Net current-period other comprehensive income (loss) | 7,744 | (24,490) | ||
Ending balance | 978,373 | 919,088 | ||
Reclassification adjustment for (gains) losses included in net income | 413 | (131) | ||
Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (21,741) | (249) | ||
Balance after reclassification adjustments | $ (1,458) | |||
Other comprehensive income (loss) before reclassifications | 13,185 | (25,233) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 13,185 | (25,233) | ||
Ending balance | (8,556) | (26,691) | ||
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 88 | ||
Balance after reclassification adjustments | 0 | |||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Total Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (21,741) | (161) | ||
Balance after reclassification adjustments | (1,458) | |||
Other comprehensive income (loss) before reclassifications | 13,185 | (25,233) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 13,185 | (25,233) | ||
Ending balance | (8,556) | (26,691) | ||
Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (922) | (198) | ||
Balance after reclassification adjustments | (240) | |||
Other comprehensive income (loss) before reclassifications | (5,135) | 646 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | (306) | 97 | ||
Net current-period other comprehensive income (loss) | (5,441) | 743 | ||
Ending balance | (6,363) | 503 | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (22,663) | (359) | ||
Balance after reclassification adjustments | (1,698) | |||
Ending balance | (14,919) | (26,188) | ||
Retained Earnings | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 316,651 | 258,076 | ||
Ending balance | 328,476 | 279,942 | ||
Accounting Standards Update 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 0 | |||
Accounting Standards Update 2018-02 | Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (256) | |||
Accounting Standards Update 2018-02 | Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
Accounting Standards Update 2018-02 | Total Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (256) | |||
Accounting Standards Update 2018-02 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (42) | |||
Accounting Standards Update 2018-02 | Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (298) | (298) | ||
Accounting Standards Update 2018-02 | Retained Earnings | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | 298 | |||
Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (953) | |||
Accounting Standards Update 2016-01 | Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (88) | |||
Accounting Standards Update 2016-01 | Total Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (1,041) | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||
Accounting Standards Update 2016-01 | Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (1,041) | (1,041) | ||
Accounting Standards Update 2016-01 | Retained Earnings | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 1,041 | |||
Combined effect of multiple accounting pronouncements on components of shareholders' equity | Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | (1,300) | |||
Combined effect of multiple accounting pronouncements on components of shareholders' equity | Retained Earnings | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 1,300 | |||
Interest Expense | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Reclassification adjustment for (gains) losses included in net income | (413) | 131 | ||
Reclassification adjustment for (gains) losses in net income, after tax | $ (306) | $ 97 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 687,985 | $ 692,674 | |
Gross Unrealized Gains | 701 | 920 | |
Gross Unrealized Losses | (12,264) | (30,300) | |
Fair Value | 676,422 | 663,294 | |
Equity securities | 1,720 | $ 1,718 | |
Investment securities, at fair value | 678,142 | 665,012 | $ 665,012 |
Agency-guaranteed residential mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 306,651 | 311,267 | |
Gross Unrealized Gains | 62 | 0 | |
Gross Unrealized Losses | (2,569) | (5,893) | |
Fair Value | 304,144 | 305,374 | |
Corporate notes | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 381,334 | 381,407 | |
Gross Unrealized Gains | 639 | 920 | |
Gross Unrealized Losses | (9,695) | (24,407) | |
Fair Value | $ 372,278 | $ 357,920 |
Investment Securities - Summa_2
Investment Securities - Summary of Available-for-Sale Debt Securities by Stated Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, amortized cost | $ 0 | |
Due after one years through five years, amortized cost | 0 | |
Due after five through ten years, amortized cost | 354,268 | |
Due after ten years, amortized cost | 27,066 | |
Amortized Cost | 687,985 | $ 692,674 |
Due in one year or less, fair value | 0 | |
Due after one years through five years, fair value | 0 | |
Due after five through ten years, fair value | 345,717 | |
Due after ten years, fair value | 26,561 | |
Total debt securities, fair value | 676,422 | 663,294 |
Agency-guaranteed residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Agency-guaranteed residential mortgage-backed securities, amortized cost | 306,651 | |
Amortized Cost | 306,651 | 311,267 |
Agency-guaranteed residential mortgage-backed securities, fair value | 304,144 | |
Total debt securities, fair value | $ 304,144 | $ 305,374 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value, Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | $ 21,873 | $ 615,410 |
Less Than 12 Months, Unrealized Losses | (93) | (30,300) |
12 Months or More, Fair Value | 525,865 | 0 |
12 Months or More, Unrealized Losses | (12,171) | 0 |
Fair Value, Total | 547,738 | 615,410 |
Unrealized Losses | (12,264) | (30,300) |
Agency-guaranteed residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 305,374 |
Less Than 12 Months, Unrealized Losses | 0 | (5,893) |
12 Months or More, Fair Value | 211,098 | 0 |
12 Months or More, Unrealized Losses | (2,569) | 0 |
Fair Value, Total | 211,098 | 305,374 |
Unrealized Losses | (2,569) | (5,893) |
Corporate notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 21,873 | 310,036 |
Less Than 12 Months, Unrealized Losses | (93) | (24,407) |
12 Months or More, Fair Value | 314,767 | 0 |
12 Months or More, Unrealized Losses | (9,602) | 0 |
Fair Value, Total | 336,640 | 310,036 |
Unrealized Losses | $ (9,695) | $ (24,407) |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($)Security | Dec. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Number of available-for-sale investment securities in the less than twelve month category | 4 | |
Number of available-for-sale investment securities in the twelve month category | 22 | |
Pledged investment securities fair value | $ | $ 22.9 | $ 23 |
Loans and Leases Receivable a_3
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Schedule of Loans and Leases Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases receivable | $ 7,264,049 | $ 7,138,074 | ||
Loans and lease receivable, gross | 7,267,246 | 7,138,498 | ||
Deferred (fees) costs and unamortized (discounts) premiums, net | (3,197) | (424) | ||
Allowance for loan and lease losses | (43,679) | (39,972) | $ (39,499) | $ (38,015) |
Total loans and leases receivable, net of allowance for loan and lease losses | 8,700,565 | 8,503,522 | ||
Mortgage Warehouse | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases receivable | 1,480,195 | 1,405,420 | ||
Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 3,212,312 | 3,285,297 | ||
Allowance for loan and lease losses | (10,630) | (11,462) | (12,545) | (12,168) |
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 53,372 | 56,491 | ||
Allowance for loan and lease losses | (584) | (624) | (921) | (979) |
Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 625,066 | 566,561 | ||
Allowance for loan and lease losses | (6,572) | (3,654) | (3,179) | (2,929) |
Manufactured housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 77,778 | 79,731 | ||
Allowance for loan and lease losses | (117) | (145) | (176) | (180) |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 153,153 | 74,035 | ||
Allowance for loan and lease losses | (3,689) | (2,529) | $ (183) | $ (172) |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 6,411,249 | 6,418,171 | ||
Commercial | Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 3,212,312 | 3,285,297 | ||
Commercial | Commercial and industrial (including owner occupied commercial real estate) (1) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 2,038,229 | 1,951,277 | ||
Commercial | Commercial real estate non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 1,107,336 | 1,125,106 | ||
Commercial | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 53,372 | 56,491 | ||
Commercial | Direct Finance Equipment Leases | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 56,400 | 54,500 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 855,997 | 720,327 | ||
Consumer | Residential real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 625,066 | 566,561 | ||
Consumer | Manufactured housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | 77,778 | 79,731 | ||
Consumer | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and lease receivable, gross | $ 153,153 | $ 74,035 |
Loans and Leases Receivable a_4
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Additional Information (Detail) | Dec. 31, 2018USD ($)CommitmentLoan | Mar. 31, 2019USD ($)AllowanceLoan | Mar. 31, 2018USD ($)Loan |
Financing Receivable, Modifications [Line Items] | |||
Loans held for sale, average life from purchase to sale | 20 days | ||
Number of Loans | Loan | 12 | 9 | |
Recorded Investment | $ 899,000 | $ 322,000 | |
Funds for reimbursement | $ 500,000 | 500,000 | |
Loans reported as TDR | $ 19,200,000 | $ 19,600,000 | |
Minimum performance requirement | 9 months | ||
Number of loans modified as TDR (loan) | Loan | 6 | 1 | |
Number of commitments to lend additional funds (commitment) | Commitment | 0 | ||
Loans modified as TDR | $ 568,000 | $ 29,000 | |
Loans modified as TDR allowance (allowance) | Allowance | 0 | ||
Loans and leases receivable, net of allowance for loan and lease losses | $ 8,503,522,000 | $ 8,700,565,000 | |
Proceeds from sales of loans | 0 | 16,468,000 | |
Purchase of loans | 129,289,000 | 0 | |
Gain (loss) on sale of SBA and other loans | $ 0 | $ 1,361,000 | |
Purchase price as a percentage of loans outstanding | 97.60% | ||
Loans pledged as collateral | $ 5,400,000,000 | ||
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Residential real estate held in other real estate owned | 200,000 | 400,000 | |
Loans in process of foreclosure | $ 2,100,000 | $ 1,400,000 | |
Commercial and industrial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans modified as TDR (loan) | Loan | 1 | ||
Loans modified as TDR | $ 1,500,000 | ||
Forgiveness of debt | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 0 | 0 | |
Recorded Investment | $ 0 | $ 0 |
Loans and Leases Receivable a_5
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Non-Covered Loans and Covered Loans by Class and Performance Status (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 22,332 | $ 15,551 |
Non-Accrual | 22,769 | 27,494 |
Current | 7,202,023 | 7,073,879 |
Loans and lease receivable, gross | 7,267,246 | 7,138,498 |
Loans and leases receivable, at amortized cost or lower of cost or market | $ 7,267,246 | 7,138,498 |
Delinquent period | 30 days | |
Due days for loan payments | 90 days | |
Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | $ 20,122 | 21,574 |
30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 20,396 | 13,363 |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,936 | 2,188 |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,794 | 0 |
Non-Accrual | 1,997 | 1,155 |
Current | 3,204,879 | 3,282,452 |
Loans and lease receivable, gross | 3,212,312 | 3,285,297 |
Multi-family | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 1,642 | 1,690 |
Multi-family | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,794 | 0 |
Multi-family | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,271 | 1,914 |
Non-Accrual | 12,225 | 17,764 |
Current | 1,441,679 | 1,353,586 |
Loans and lease receivable, gross | 1,455,592 | 1,373,800 |
Commercial and industrial | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 417 | 536 |
Commercial and industrial | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,271 | 1,914 |
Commercial and industrial | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,566 | 193 |
Non-Accrual | 839 | 1,037 |
Current | 570,380 | 567,809 |
Loans and lease receivable, gross | 582,637 | 577,477 |
Commercial real estate owner occupied | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 7,852 | 8,438 |
Commercial real estate owner occupied | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,566 | 193 |
Commercial real estate owner occupied | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,976 | 1,190 |
Non-Accrual | 102 | 129 |
Current | 1,101,129 | 1,119,443 |
Loans and lease receivable, gross | 1,107,336 | 1,125,106 |
Commercial real estate non-owner occupied | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 4,129 | 4,344 |
Commercial real estate non-owner occupied | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,976 | 1,190 |
Commercial real estate non-owner occupied | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Current | 53,372 | 56,491 |
Loans and lease receivable, gross | 53,372 | 56,491 |
Construction | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Construction | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Construction | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,612 | 5,940 |
Non-Accrual | 5,574 | 5,605 |
Current | 609,874 | 550,679 |
Loans and lease receivable, gross | 625,066 | 566,561 |
Residential real estate | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 4,006 | 4,337 |
Residential real estate | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,612 | 5,940 |
Residential real estate | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Manufactured housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,622 | 6,114 |
Non-Accrual | 1,924 | 1,693 |
Current | 68,362 | 69,916 |
Loans and lease receivable, gross | 77,778 | 79,731 |
Manufactured housing | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 1,870 | 2,008 |
Manufactured housing | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 3,686 | 3,926 |
Manufactured housing | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,936 | 2,188 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 491 | 200 |
Non-Accrual | 108 | 111 |
Current | 152,348 | 73,503 |
Loans and lease receivable, gross | 153,153 | 74,035 |
Other | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and lease receivable, gross | 206 | 221 |
Other | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 491 | 200 |
Other | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans and Leases Receivable a_6
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Schedule of Allowance for Loan and Lease Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 39,972 | $ 38,015 | ||
Charge-offs | (1,344) | (689) | ||
Recoveries | 284 | 56 | ||
Provision for loan and lease losses | 4,767 | 2,117 | ||
Ending balance | 43,679 | 39,499 | ||
Loans: | ||||
Individually evaluated for impairment | $ 39,359 | $ 39,118 | ||
Collectively evaluated for impairment | 7,207,765 | 7,077,806 | ||
Loans and leases receivable, gross | 7,267,246 | 7,138,498 | ||
Loans receivable, at amortized cost or lower of cost or market | 7,267,246 | 7,138,498 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 380 | 845 | ||
Collectively evaluated for impairment | 40,469 | 36,249 | ||
Total Allowance for loan losses | 39,972 | 38,015 | 43,679 | 39,972 |
Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 20,122 | 21,574 | ||
Loans and leases receivable, gross | 20,122 | 21,574 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 2,830 | 2,878 | ||
Multi-family | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 11,462 | 12,168 | ||
Charge-offs | (541) | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan and lease losses | (291) | 377 | ||
Ending balance | 10,630 | 12,545 | ||
Loans: | ||||
Individually evaluated for impairment | 1,997 | 1,155 | ||
Collectively evaluated for impairment | 3,208,673 | 3,282,452 | ||
Loans and leases receivable, gross | 3,212,312 | 3,285,297 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 539 | ||
Collectively evaluated for impairment | 10,630 | 10,923 | ||
Total Allowance for loan losses | 11,462 | 12,168 | 10,630 | 11,462 |
Multi-family | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 1,642 | 1,690 | ||
Loans and leases receivable, gross | 1,642 | 1,690 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 12,145 | 10,918 | ||
Charge-offs | 0 | (50) | ||
Recoveries | 119 | 35 | ||
Provision for loan and lease losses | 383 | 834 | ||
Ending balance | 12,647 | 11,737 | ||
Loans: | ||||
Individually evaluated for impairment | 17,411 | 17,828 | ||
Collectively evaluated for impairment | 1,437,764 | 1,355,436 | ||
Loans and leases receivable, gross | 1,455,592 | 1,373,800 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 263 | 261 | ||
Collectively evaluated for impairment | 12,116 | 11,516 | ||
Total Allowance for loan losses | 12,145 | 10,918 | 12,647 | 12,145 |
Commercial and industrial | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 417 | 536 | ||
Loans and leases receivable, gross | 417 | 536 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 268 | 368 | ||
Commercial real estate owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 3,320 | 3,232 | ||
Charge-offs | (8) | (18) | ||
Recoveries | 128 | 0 | ||
Provision for loan and lease losses | (15) | 311 | ||
Ending balance | 3,425 | 3,525 | ||
Loans: | ||||
Individually evaluated for impairment | 867 | 1,069 | ||
Collectively evaluated for impairment | 573,918 | 567,970 | ||
Loans and leases receivable, gross | 582,637 | 577,477 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 36 | 1 | ||
Collectively evaluated for impairment | 3,389 | 3,319 | ||
Total Allowance for loan losses | 3,425 | 3,232 | 3,425 | 3,320 |
Commercial real estate owner occupied | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 7,852 | 8,438 | ||
Loans and leases receivable, gross | 7,852 | 8,438 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Commercial real estate non-owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 6,093 | 7,437 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan and lease losses | (78) | (204) | ||
Ending balance | 6,015 | 7,233 | ||
Loans: | ||||
Individually evaluated for impairment | 102 | 129 | ||
Collectively evaluated for impairment | 1,103,105 | 1,120,633 | ||
Loans and leases receivable, gross | 1,107,336 | 1,125,106 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4,019 | 4,161 | ||
Total Allowance for loan losses | 6,015 | 7,437 | 6,015 | 6,093 |
Commercial real estate non-owner occupied | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 4,129 | 4,344 | ||
Loans and leases receivable, gross | 4,129 | 4,344 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 1,996 | 1,932 | ||
Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 624 | 979 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 6 | 11 | ||
Provision for loan and lease losses | (46) | (69) | ||
Ending balance | 584 | 921 | ||
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 53,372 | 56,491 | ||
Loans and leases receivable, gross | 53,372 | 56,491 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 584 | 624 | ||
Total Allowance for loan losses | 584 | 979 | 584 | 624 |
Construction | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Loans and leases receivable, gross | 0 | 0 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Residential real estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 3,654 | 2,929 | ||
Charge-offs | (40) | (365) | ||
Recoveries | 7 | 7 | ||
Provision for loan and lease losses | 2,951 | 608 | ||
Ending balance | 6,572 | 3,179 | ||
Loans: | ||||
Individually evaluated for impairment | 8,567 | 8,631 | ||
Collectively evaluated for impairment | 612,493 | 553,593 | ||
Loans and leases receivable, gross | 625,066 | 566,561 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 78 | 41 | ||
Collectively evaluated for impairment | 6,105 | 3,227 | ||
Total Allowance for loan losses | 3,654 | 2,929 | 6,572 | 3,654 |
Residential real estate | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 4,006 | 4,337 | ||
Loans and leases receivable, gross | 4,006 | 4,337 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 389 | 386 | ||
Manufactured housing | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 145 | 180 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan and lease losses | (28) | (4) | ||
Ending balance | 117 | 176 | ||
Loans: | ||||
Individually evaluated for impairment | 10,307 | 10,195 | ||
Collectively evaluated for impairment | 65,601 | 67,528 | ||
Loans and leases receivable, gross | 77,778 | 79,731 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 3 | 3 | ||
Collectively evaluated for impairment | 89 | 89 | ||
Total Allowance for loan losses | 145 | 180 | 117 | 145 |
Manufactured housing | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 1,870 | 2,008 | ||
Loans and leases receivable, gross | 1,870 | 2,008 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | 25 | 53 | ||
Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 2,529 | 172 | ||
Charge-offs | (755) | (256) | ||
Recoveries | 24 | 3 | ||
Provision for loan and lease losses | 1,891 | 264 | ||
Ending balance | 3,689 | 183 | ||
Loans: | ||||
Individually evaluated for impairment | 108 | 111 | ||
Collectively evaluated for impairment | 152,839 | 73,703 | ||
Loans and leases receivable, gross | 153,153 | 74,035 | ||
Allowance for loan losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 3,537 | 2,390 | ||
Total Allowance for loan losses | $ 2,529 | $ 172 | 3,689 | 2,529 |
Other | Purchased Credit Impaired Loans | ||||
Loans: | ||||
Loans acquired with credit deterioration | 206 | 221 | ||
Loans and leases receivable, gross | 206 | 221 | ||
Allowance for loan losses: | ||||
Loans acquired with credit deterioration | $ 152 | $ 139 |
Loans and Leases Receivable a_7
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, Total | $ 39,359 | $ 39,118 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, Total | 42,815 | 42,031 | |
Related Allowance | 380 | 845 | |
Average Recorded Investment | |||
Average Recorded Investment, Total | 39,239 | $ 36,448 | |
Interest Income Recognized | |||
Interest Income Recognized, Total | 206 | 158 | |
Multi-family | |||
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 1,997 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 0 | 1,155 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 2,538 | ||
Unpaid Principal Balance, With an allowance recorded | 0 | 1,155 | |
Related Allowance | 0 | 539 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 998 | ||
Average Recorded Investment, With an allowance recorded | 578 | 0 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | ||
Interest Income Recognized, With an allowance recorded | 0 | 0 | |
Commercial and industrial | |||
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 11,185 | 13,660 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 6,226 | 4,168 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 12,749 | 15,263 | |
Unpaid Principal Balance, With an allowance recorded | 6,409 | 4,351 | |
Related Allowance | 263 | 261 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 12,422 | 7,484 | |
Average Recorded Investment, With an allowance recorded | 5,197 | 8,390 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 2 | 0 | |
Interest Income Recognized, With an allowance recorded | 39 | 1 | |
Commercial real estate owner occupied | |||
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 556 | 1,037 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 311 | 32 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 1,103 | 1,766 | |
Unpaid Principal Balance, With an allowance recorded | 498 | 32 | |
Related Allowance | 36 | 1 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 796 | 710 | |
Average Recorded Investment, With an allowance recorded | 172 | 756 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 21 | 0 | |
Interest Income Recognized, With an allowance recorded | 1 | 1 | |
Commercial real estate non-owner occupied | |||
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 102 | 129 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 214 | 241 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 115 | 201 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Residential real estate | |||
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 4,722 | 4,842 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 3,845 | 3,789 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 5,044 | 5,128 | |
Unpaid Principal Balance, With an allowance recorded | 3,845 | 3,789 | |
Related Allowance | 78 | 41 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 4,782 | 3,623 | |
Average Recorded Investment, With an allowance recorded | 3,817 | 5,122 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |
Interest Income Recognized, With an allowance recorded | 26 | 25 | |
Manufactured housing | |||
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 10,140 | 10,027 | |
Recorded Investment Net of Charge Offs, With an allowance recorded | 167 | 168 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 10,140 | 10,027 | |
Unpaid Principal Balance, With an allowance recorded | 167 | 168 | |
Related Allowance | 3 | 3 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 10,084 | 9,876 | |
Average Recorded Investment, With an allowance recorded | 168 | 223 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | 115 | 131 | |
Interest Income Recognized, With an allowance recorded | 2 | 0 | |
Other | |||
Recorded Investment Net of Charge-Offs | |||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 108 | 111 | |
Unpaid Principal Balance | |||
Unpaid Principal Balance, With no related allowance recorded | 108 | $ 111 | |
Average Recorded Investment | |||
Average Recorded Investment, With no related allowance recorded | 110 | 63 | |
Interest Income Recognized | |||
Interest Income Recognized, With no related allowance recorded | $ 0 | $ 0 |
Loans and Leases Receivable a_8
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Schedule of Accruing and Nonaccrual TDRs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 899 | $ 322 | |
Commercial and industrial (including owner occupied commercial real estate) (1) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 431 | 0 | |
Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 385 | 322 | |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 83 | $ 0 | |
Accruing TDRs | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 16,590 | $ 11,624 | |
Accruing TDRs | Commercial and industrial (including owner occupied commercial real estate) (1) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,186 | 64 | |
Accruing TDRs | Commercial real estate owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 28 | 32 | |
Accruing TDRs | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 2,993 | 3,026 | |
Accruing TDRs | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 8,383 | 8,502 | |
Accruing TDRs | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 0 | |
Nonaccrual TDRs | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 3,055 | 7,572 | |
Nonaccrual TDRs | Commercial and industrial (including owner occupied commercial real estate) (1) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 471 | 5,273 | |
Nonaccrual TDRs | Commercial real estate owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 0 | 0 | |
Nonaccrual TDRs | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 723 | 667 | |
Nonaccrual TDRs | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 1,850 | 1,620 | |
Nonaccrual TDRs | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 11 | 12 | |
Total | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 19,645 | 19,196 | |
Total | Commercial and industrial (including owner occupied commercial real estate) (1) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 5,657 | 5,337 | |
Total | Commercial real estate owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 28 | 32 | |
Total | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 3,716 | 3,693 | |
Total | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 10,233 | 10,122 | |
Total | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | $ 11 | $ 12 |
Loans and Leases Receivable a_9
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)Loan | Mar. 31, 2018USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 12 | 9 |
Recorded Investment | $ | $ 899 | $ 322 |
Extensions of maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 2 | 0 |
Recorded Investment | $ | $ 514 | $ 0 |
Interest-rate reductions | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 10 | 9 |
Recorded Investment | $ | $ 385 | $ 322 |
Loans and Leases Receivable _10
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)Loan | Mar. 31, 2018USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 12 | 9 |
Recorded Investment | $ | $ 899 | $ 322 |
Number of Loans | Loan | 6 | 1 |
Recorded Investment | $ | $ 568 | $ 29 |
Commercial and industrial (including owner occupied commercial real estate) (1) | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 1 | 0 |
Recorded Investment | $ | $ 431 | $ 0 |
Number of Loans | Loan | 1 | 0 |
Recorded Investment | $ | $ 431 | $ 0 |
Manufactured housing | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 10 | 9 |
Recorded Investment | $ | $ 385 | $ 322 |
Number of Loans | Loan | 5 | 1 |
Recorded Investment | $ | $ 137 | $ 29 |
Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | Loan | 1 | 0 |
Recorded Investment | $ | $ 83 | $ 0 |
Loans and Leases Receivable _11
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Changes in Accretable Yield Related to Purchased-credit-impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in Accretable Yield | ||
Accretable yield balance, beginning of period | $ 6,178 | $ 7,825 |
Accretion to interest income | (277) | (338) |
Reclassification from nonaccretable difference and disposals, net | 293 | 176 |
Accretable yield balance, end of period | $ 6,194 | $ 7,663 |
Loans and Leases Receivable _12
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Credit Ratings of Covered and Non-Covered Loan Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | $ 7,267,246 | $ 7,138,498 |
Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 6,215,716 | 6,181,911 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 113,574 | 126,180 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 81,959 | 110,080 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 836,666 | 700,664 |
Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 19,331 | 19,663 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 3,212,312 | 3,285,297 |
Multi-family | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 3,164,722 | 3,201,822 |
Multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 40,441 | 55,696 |
Multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 7,149 | 27,779 |
Multi-family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Multi-family | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 1,455,592 | 1,373,800 |
Commercial and industrial | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 1,395,034 | 1,306,466 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 30,575 | 30,551 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 29,983 | 36,783 |
Commercial and industrial | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Commercial and industrial | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Commercial real estate owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 582,637 | 577,477 |
Commercial real estate owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 565,631 | 562,639 |
Commercial real estate owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 12,300 | 9,730 |
Commercial real estate owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 4,706 | 5,108 |
Commercial real estate owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Commercial real estate owner occupied | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Commercial real estate non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 1,107,336 | 1,125,106 |
Commercial real estate non-owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 1,036,957 | 1,054,493 |
Commercial real estate non-owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 30,258 | 30,203 |
Commercial real estate non-owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 40,121 | 40,410 |
Commercial real estate non-owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Commercial real estate non-owner occupied | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 53,372 | 56,491 |
Construction | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 53,372 | 56,491 |
Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Construction | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Construction | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 625,066 | 566,561 |
Residential real estate | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Residential real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Residential real estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 613,880 | 555,016 |
Residential real estate | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 11,186 | 11,545 |
Manufactured housing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 77,778 | 79,731 |
Manufactured housing | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Manufactured housing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Manufactured housing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Manufactured housing | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 70,232 | 71,924 |
Manufactured housing | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 7,546 | 7,807 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 153,153 | 74,035 |
Other | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 0 | 0 |
Other | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | 152,554 | 73,724 |
Other | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and lease receivable, gross | $ 599 | $ 311 |
Loans and Leases Receivable _13
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Schedule of Loan Purchases and Sales (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payments to acquire loans receivable | $ 132,520,000 | $ 0 |
Value at the time of sale of loans | $ 0 | (14,993,000) |
Purchase price as a percentage of loans outstanding | 97.60% | |
Gain/Loss on Sale of Loans | $ 0 | 1,361,000 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payments to acquire loans receivable | 66,384,000 | 0 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payments to acquire loans receivable | 66,136,000 | 0 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Value at the time of sale of loans | 0 | (6,842,000) |
Commercial real estate owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Value at the time of sale of loans | $ 0 | $ (8,151,000) |
Leases - Lessee Narrative (Deta
Leases - Lessee Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, renewal term | 15 years | ||
Operating cash flows from operating leases | $ 1,400 | ||
Operating lease right-of-use-assets, net | $ 22,469 | ||
Operating leases, rent expense | $ 1,400 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, remaining lease term | 2 months | ||
Lessee, operating lease, term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, remaining lease term | 8 years | ||
Lessee, operating lease, term | 5 years | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use-assets, net | $ 23,800 | ||
Accrued rent | 1,100 | ||
Right-of-use assets acquired through lease obligations | $ 24,900 |
Leases - Right-of-Use Assets an
Leases - Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
ASSETS | |
Operating lease ROU assets | $ 22,469 |
LIABILITIES | |
Operating lease liabilities | $ 23,649 |
Leases - Lease, Cost (Details)
Leases - Lease, Cost (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,469,000 |
Variable lease cost | $ 0 |
Leases - Maturities of Non-canc
Leases - Maturities of Non-cancelable Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 4,303 |
2020 | 5,135 |
2021 | 4,513 |
2022 | 3,885 |
2023 | 2,856 |
Thereafter | 4,699 |
Total minimum payments | 25,391 |
Less: interest | 1,742 |
Present value of lease liabilities | $ 23,649 |
Leases - Summary of Lease Term
Leases - Summary of Lease Term and Discount Rate (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (years) | 5 years 7 months 6 days |
Operating lease, weighted average discount rate, percent | 2.74% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 5,577 |
2020 | 5,135 |
2021 | 4,513 |
2022 | 3,885 |
2023 | 2,856 |
Thereafter | 4,699 |
Total minimum payments | $ 26,665 |
Leases - Lessor Narrative (Deta
Leases - Lessor Narrative (Details) - Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lessor, lease, term of contract (years) | 24 months |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lessor, lease, term of contract (years) | 120 months |
Leases - Lessor, Lease Receivab
Leases - Lessor, Lease Receivables and Investment in Operating Leases and their Corresponding Balance Sheet Location (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Lease receivables | $ 56,553 |
Guaranteed residual assets | 5,540 |
Unguaranteed residual assets | 622 |
Deferred initial direct costs | 745 |
Unearned income | (6,342) |
Net investment in direct financing leases | 57,118 |
Investment in operating leases | 67,093 |
Accumulated depreciation | (6,705) |
Deferred initial direct costs | 864 |
Net investment in operating leases | 61,252 |
Total lease assets | $ 118,370 |
Regulatory Capital - Summary of
Regulatory Capital - Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 capital (to risk weighted assets), Actual Amount | $ 759,887 | $ 745,795 | ||
Tier 1 capital (to risk weighted assets), Actual Amount | 977,339 | 963,266 | ||
Total capital (to risk weighted assets), Actual Amount | 1,101,041 | 1,081,962 | ||
Tier 1 capital (to average assets), Actual Amount | $ 977,339 | $ 963,266 | ||
Common equity Tier 1 (to risk weighted assets), Actual Ratio | 8.914% | 8.964% | ||
Tier 1 capital (to risk weighted assets), Actual Ratio | 11.465% | 11.578% | ||
Total capital (to risk weighted assets), Actual Ratio | 12.916% | 13.005% | ||
Tier 1 capital (to average assets), Actual Ratio | 10.006% | 9.665% | ||
Common equity Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | $ 383,603 | $ 374,388 | ||
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 511,470 | 499,185 | ||
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 691,960 | 665,580 | ||
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount | $ 390,685 | $ 398,668 | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Ratio | 4.50% | 7.00% | 4.50% | |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 6.00% | 8.50% | 6.00% | |
Total capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 8.00% | 10.50% | 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 | $ 596,715 | $ 530,384 | ||
Tier 1 (to risk weighted assets) Required for Basel III amount | 724,583 | 655,180 | ||
Total capital (to risk weighted assets), for Basel III amount | 895,073 | 821,575 | ||
Tier 1 (to risk average assets), for Basel III amount | $ 390,685 | $ 398,668 | ||
Common equity Tier 1 (to risk weighted assets), for Basel III ratio | 7.00% | 6.375% | ||
Tier 1 capital (to risk weighted assets), for Basel III ratio | 8.50% | 7.875% | ||
Total capital (to risk weighted assets), for Basel III ratio | 10.50% | 9.875% | ||
Tier 1 capital (to average assets), for Basel III ratio | 4.00% | 4.00% | ||
Customers Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 capital (to risk weighted assets), Actual Amount | $ 1,070,664 | $ 1,066,121 | ||
Tier 1 capital (to risk weighted assets), Actual Amount | 1,070,664 | 1,066,121 | ||
Total capital (to risk weighted assets), Actual Amount | 1,223,727 | 1,215,522 | ||
Tier 1 capital (to average assets), Actual Amount | $ 1,070,664 | $ 1,066,121 | ||
Common equity Tier 1 (to risk weighted assets), Actual Ratio | 12.574% | 12.822% | ||
Tier 1 capital (to risk weighted assets), Actual Ratio | 12.574% | 12.822% | ||
Total capital (to risk weighted assets), Actual Ratio | 14.371% | 14.619% | ||
Tier 1 capital (to average assets), Actual Ratio | 10.969% | 10.699% | ||
Common equity Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | $ 383,186 | $ 374,160 | ||
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 510,915 | 498,879 | ||
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 681,220 | 665,173 | ||
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount | $ 390,430 | $ 398,570 | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Ratio | 4.50% | 4.50% | 6.375% | |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 6.00% | 6.00% | 7.875% | |
Total capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 8.00% | 8.00% | 9.875% | |
Tier 1 capital (to average assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1 Capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 553,491 | $ 540,453 | ||
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 681,220 | 665,173 | ||
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 851,525 | 831,466 | ||
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 488,038 | $ 498,212 | ||
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 | $ 596,068 | $ 530,059 | ||
Tier 1 (to risk weighted assets) Required for Basel III amount | 723,796 | 654,779 | ||
Total capital (to risk weighted assets), for Basel III amount | 894,101 | 821,072 | ||
Tier 1 (to risk average assets), for Basel III amount | $ 390,430 | $ 398,570 | ||
Common equity Tier 1 (to risk weighted assets), for Basel III ratio | 7.00% | 6.375% | ||
Tier 1 capital (to risk weighted assets), for Basel III ratio | 8.50% | 7.875% | ||
Total capital (to risk weighted assets), for Basel III ratio | 10.50% | 9.875% | ||
Tier 1 capital (to average assets), for Basel III ratio | 4.00% | 4.00% |
Regulatory Capital - Narrative
Regulatory Capital - Narrative (Details) | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2017 | Jan. 01, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Capital conservation buffer to risk weighted assets, year one | 0.625% | ||||
Capital conservation buffer to risk weighted assets, year two | 1.25% | ||||
Capital conservation buffer to risk weighted assets, year three | 1.875% | ||||
Capital conservation buffer to risk weighted assets, year four and thereafter | 2.50% | ||||
Capital conservation buffer, excess of minimum capital ratio | 2.50% | ||||
Common equity Tier 1 (to risk weighted assets), for capital adequacy purposes ratio | 4.50% | 7.00% | 4.50% | ||
Tier 1 capital (to risk weighted assets), for capital adequacy purposes ratio | 6.00% | 8.50% | 6.00% | ||
Total capital (to risk weighted assets), for capital adequacy purposes ratio | 8.00% | 10.50% | 8.00% | ||
Customers Bank | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Common equity Tier 1 (to risk weighted assets), for capital adequacy purposes ratio | 4.50% | 4.50% | 6.375% | ||
Tier 1 capital (to risk weighted assets), for capital adequacy purposes ratio | 6.00% | 6.00% | 7.875% | ||
Total capital (to risk weighted assets), for capital adequacy purposes ratio | 8.00% | 8.00% | 9.875% |
Disclosures About Fair Value _3
Disclosures About Fair Value of Financial Instruments - Narrative (Detail) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Loans held for sale, average life from purchase to sale | 20 days |
Disclosures About Fair Value _4
Disclosures About Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Carrying Amount | $ 117,662 | $ 62,135 |
Cash and cash equivalents, Estimated Fair Value | 117,662 | 62,135 |
Debt securities, available for sale | 676,422 | 663,294 |
Debt securities, available for sale, Estimated Fair Value | 676,422 | 663,294 |
Equity securities, carrying amount | 1,720 | 1,718 |
Equity securities, Estimated Fair Value | 1,720 | 1,718 |
Loans held for sale, Carrying Amount | 1,602 | 1,507 |
Loans held for sale, Estimated Fair Value | 1,602 | 1,507 |
Loans and leases receivable, net of allowance for loan and lease losses, Carrying Amount | 8,700,565 | 8,503,522 |
Loans and leases receivable, net of allowance for loan losses, Estimated Fair Value | 8,774,518 | 8,481,128 |
FHLB, Federal Reserve Bank and other restricted stock, Carrying Amount | 80,416 | 89,685 |
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 80,416 | 89,685 |
Derivative assets | 14,665 | 14,693 |
Deposits, Carrying Amount | 7,425,318 | 7,142,236 |
Deposits, Estimated Fair Value | 7,422,232 | 7,136,009 |
Federal funds purchased, Carrying Amount | 388,000 | 187,000 |
Federal funds purchased, Estimated Fair Value | 388,000 | 187,000 |
FHLB advances, Carrying Amount | 1,025,832 | 1,248,070 |
FHLB advances, Estimated Fair Value | 1,025,830 | 1,248,046 |
Other borrowings, Carrying Amount | 123,963 | 123,871 |
Other borrowings, Estimated Fair Value | 123,591 | 121,718 |
Subordinated debt, Carrying Amount | 109,002 | 108,977 |
Subordinated debt, Estimated Fair Value | 113,988 | 110,550 |
Derivative liabilities | 23,837 | 16,286 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Estimated Fair Value | 117,662 | 62,135 |
Debt securities, available for sale, Estimated Fair Value | 0 | 0 |
Equity securities, Estimated Fair Value | 1,720 | 1,718 |
Loans held for sale, Estimated Fair Value | 0 | 0 |
Loans and leases receivable, net of allowance for loan losses, Estimated Fair Value | 0 | 0 |
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 0 | 0 |
Derivative assets | 0 | 0 |
Deposits, Estimated Fair Value | 5,867,017 | 5,408,055 |
Federal funds purchased, Estimated Fair Value | 388,000 | 187,000 |
FHLB advances, Estimated Fair Value | 500,832 | 998,070 |
Other borrowings, Estimated Fair Value | 0 | 0 |
Subordinated debt, Estimated Fair Value | 0 | 0 |
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Estimated Fair Value | 0 | 0 |
Debt securities, available for sale, Estimated Fair Value | 676,422 | 663,294 |
Equity securities, Estimated Fair Value | 0 | 0 |
Loans held for sale, Estimated Fair Value | 1,602 | 1,507 |
Loans and leases receivable, net of allowance for loan losses, Estimated Fair Value | 1,480,195 | 1,405,420 |
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 80,416 | 89,685 |
Derivative assets | 14,588 | 14,624 |
Deposits, Estimated Fair Value | 1,555,215 | 1,727,954 |
Federal funds purchased, Estimated Fair Value | 0 | 0 |
FHLB advances, Estimated Fair Value | 524,998 | 249,976 |
Other borrowings, Estimated Fair Value | 123,591 | 121,718 |
Subordinated debt, Estimated Fair Value | 113,988 | 110,550 |
Derivative liabilities | 23,837 | 16,286 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, Estimated Fair Value | 0 | 0 |
Debt securities, available for sale, Estimated Fair Value | 0 | 0 |
Equity securities, Estimated Fair Value | 0 | 0 |
Loans held for sale, Estimated Fair Value | 0 | 0 |
Loans and leases receivable, net of allowance for loan losses, Estimated Fair Value | 7,294,323 | 7,075,708 |
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 0 | 0 |
Derivative assets | 77 | 69 |
Deposits, Estimated Fair Value | 0 | 0 |
Federal funds purchased, Estimated Fair Value | 0 | 0 |
FHLB advances, Estimated Fair Value | 0 | 0 |
Other borrowings, Estimated Fair Value | 0 | 0 |
Subordinated debt, Estimated Fair Value | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Related Allowance | $ 380 | $ 845 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 2,174,604 | 2,086,632 |
Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 13,449 | 11,497 |
Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,720 | |
Derivative assets | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 14,665 | 14,693 |
Loans held for sale - fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,602 | 1,507 |
Loans receivable, mortgage warehouse – fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,480,195 | 1,405,420 |
Derivative liabilities | Fair Value, Measurements, Recurring | ||
Liabilities | ||
Financial Liabilities Fair Value Disclosure | 23,837 | 16,286 |
Impaired loans, net of specific reserves | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 12,668 | 10,876 |
Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 781 | 621 |
Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 304,144 | 305,374 |
Available-for-sale Securities | Corporate notes | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 372,278 | 357,920 |
Available-for-sale Securities | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,718 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,720 | 1,718 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,720 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative assets | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale - fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans receivable, mortgage warehouse – fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative liabilities | Fair Value, Measurements, Recurring | ||
Liabilities | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans, net of specific reserves | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Corporate notes | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,718 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 2,172,807 | 2,084,845 |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | |
Significant Other Observable Inputs (Level 2) | Derivative assets | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 14,588 | 14,624 |
Significant Other Observable Inputs (Level 2) | Loans held for sale - fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,602 | 1,507 |
Significant Other Observable Inputs (Level 2) | Loans receivable, mortgage warehouse – fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 1,480,195 | 1,405,420 |
Significant Other Observable Inputs (Level 2) | Derivative liabilities | Fair Value, Measurements, Recurring | ||
Liabilities | ||
Financial Liabilities Fair Value Disclosure | 23,837 | 16,286 |
Significant Other Observable Inputs (Level 2) | Impaired loans, net of specific reserves | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 304,144 | 305,374 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Corporate notes | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 372,278 | 357,920 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 77 | 69 |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 13,449 | 11,497 |
Significant Unobservable Inputs (Level 3) | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | |
Significant Unobservable Inputs (Level 3) | Derivative assets | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 77 | 69 |
Significant Unobservable Inputs (Level 3) | Loans held for sale - fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Loans receivable, mortgage warehouse – fair value option | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Derivative liabilities | Fair Value, Measurements, Recurring | ||
Liabilities | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans, net of specific reserves | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 12,668 | 10,876 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets, Fair Value Disclosure | 781 | 621 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Corporate notes | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | $ 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Equity securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Assets, Fair Value Disclosure | $ 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 | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at December 31 | $ 69 | $ 60 |
Issuances | 77 | 83 |
Settlements | (69) | (60) |
Balance at March 31 | $ 77 | $ 83 |
Disclosures About Fair Value _7
Disclosures About Fair Value of Financial Instruments - Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 976 | $ 816 |
Impaired loans, net of specific reserves | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 8.00% | 8.00% |
Impaired loans, net of specific reserves | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 17.00% | 26.00% |
Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 9.00% | 8.00% |
Residential mortgage loan commitments | Adjusted Market Bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments pull through rate | 83.00% | 90.00% |
Fair Value Estimate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments | $ 77 | $ 69 |
Fair Value Estimate | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 5,270 | 10,260 |
Other real estate owned | 781 | 621 |
Fair Value Estimate | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 7,398 | $ 616 |
Minimum | Impaired loans, net of specific reserves | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 8.00% | 8.00% |
Minimum | Impaired loans, net of specific reserves | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 8.00% | 8.00% |
Minimum | Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 8.00% | 8.00% |
Minimum | Residential mortgage loan commitments | Adjusted Market Bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments pull through rate | 83.00% | 90.00% |
Maximum | Impaired loans, net of specific reserves | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 8.00% | 8.00% |
Maximum | Impaired loans, net of specific reserves | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 50.00% | 50.00% |
Maximum | Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average range | 13.00% | 8.00% |
Maximum | Residential mortgage loan commitments | Adjusted Market Bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments pull through rate | 83.00% | 90.00% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)derivativeswap | Dec. 31, 2018USD ($)derivativeswap | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassification adjustment from accumulated other comprehensive income | $ 1,000 | |
Length of hedging exposure to variability in future cash flows (months) | 63 months | |
Derivative, net liability position, aggregate fair value | $ 16,000 | |
Minimum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 30 days | |
Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 60 days | |
Not Designated as Hedging Instrument | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 5,800 | $ 3,600 |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged | $ 19,462 | $ 702 |
Interest Rate Swaps | Derivative Designated as Cash Flow Hedges | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of outstanding interest rate derivatives (derivative) | derivative | 5 | 6 |
Aggregate notional amount | $ 675,000 | $ 750,000 |
Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 1,000,000 | $ 1,030,100 |
Number of interest rate swaps (swap) | swap | 98 | 98 |
Credit Contract | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 115,800 | $ 94,900 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | $ 3,816 | $ 7,529 |
Derivative Liabilities, Fair Value | 20,036 | 9,077 |
Other Assets | Derivative Designated as Cash Flow Hedges | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 38 | 256 |
Other Assets | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 14,627 | 14,437 |
Other Assets | Not Designated as Hedging Instrument | Residential Mortgage Loan Commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 77 | 69 |
Other Assets | Not Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 14,369 | 14,300 |
Other Assets | Not Designated as Hedging Instrument | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 181 | 68 |
Other Liabilities | Derivative Designated as Cash Flow Hedges | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 8,636 | 1,502 |
Other Liabilities | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 15,201 | 14,784 |
Other Liabilities | Not Designated as Hedging Instrument | Residential Mortgage Loan Commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 0 | 0 |
Other Liabilities | Not Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 15,136 | 14,730 |
Other Liabilities | Not Designated as Hedging Instrument | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | $ 65 | $ 54 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effect of Derivative Financial Instruments on Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | $ 413 | $ (131) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | (413) | 131 |
Interest Expense | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in OCI on Derivatives | (5,135) | 646 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 413 | 131 |
Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Income (Loss) Recognized in Earnings | (177) | 385 |
Not Designated as Hedging Instrument | Other Non-interest Income | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Income (Loss) Recognized in Earnings | (287) | 385 |
Not Designated as Hedging Instrument | Other Non-interest Income | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Income (Loss) Recognized in Earnings | 102 | (23) |
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 | $ 8 | $ 23 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 14,665 | $ 14,693 |
Interest Rate Swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Assets | 3,816 | 7,529 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 3,816 | 7,529 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral received | 0 | 1,860 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 3,816 | $ 5,669 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 23,837 | $ 16,286 |
Interest Rate Swaps | ||
Offsetting Liabilities [Line Items] | ||
Gross Amount of Recognized Liabilities | 20,036 | 9,077 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 20,036 | 9,077 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged | 19,462 | 702 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 574 | $ 8,375 |
Business Segments - Narrative (
Business Segments - Narrative (Details) - Segment | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments (segment) | 2 | |
Operating Segments | Community Business Banking | ||
Segment Reporting Information [Line Items] | ||
Effective tax rate | 23.15% | 24.56% |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 101,075 | $ 96,964 | |
Interest expense | 41,771 | 31,933 | |
Net interest income | 59,304 | 65,031 | |
Provision for loan and lease losses | 4,767 | 2,117 | |
Total non-interest income | 19,718 | 20,910 | |
Non-interest expense | 53,984 | 52,280 | |
Income before income tax expense | 20,271 | 31,544 | |
Income tax expense (benefit) | 4,831 | 7,402 | |
Net income (loss) | 15,440 | 24,142 | |
Preferred stock dividends | 3,615 | 3,615 | |
Net income (loss) available to common shareholders | 11,825 | 20,527 | |
Goodwill and other intangibles | 16,173 | $ 16,499 | |
Total assets | 10,143,894 | 9,833,425 | |
Total deposits | 7,425,318 | $ 7,142,236 | |
Combined Business Segments | |||
Segment Reporting Information [Line Items] | |||
Interest income | 101,075 | 96,964 | |
Interest expense | 41,771 | 31,933 | |
Net interest income | 59,304 | 65,031 | |
Provision for loan and lease losses | 4,767 | 2,117 | |
Total non-interest income | 19,718 | 20,910 | |
Non-interest expense | 53,984 | 52,280 | |
Income before income tax expense | 20,271 | 31,544 | |
Income tax expense (benefit) | 4,831 | 7,402 | |
Net income (loss) | 15,440 | 24,142 | |
Preferred stock dividends | 3,615 | 3,615 | |
Net income (loss) available to common shareholders | 11,825 | 20,527 | |
Goodwill and other intangibles | 16,173 | 17,477 | |
Total assets | 10,143,894 | 10,769,266 | |
Total deposits | 7,425,318 | 7,042,459 | |
Total non-deposit liabilities | 1,740,203 | 2,807,719 | |
Operating Segments | Community Business Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 92,871 | 92,554 | |
Interest expense | 41,605 | 31,917 | |
Net interest income | 51,266 | 60,637 | |
Provision for loan and lease losses | 2,976 | 1,874 | |
Total non-interest income | 7,577 | 8,439 | |
Non-interest expense | 35,384 | 34,331 | |
Income before income tax expense | 20,483 | 32,871 | |
Income tax expense (benefit) | 4,880 | 7,728 | |
Net income (loss) | 15,603 | 25,143 | |
Preferred stock dividends | 3,615 | 3,615 | |
Net income (loss) available to common shareholders | 11,988 | 21,528 | |
Goodwill and other intangibles | 3,629 | 3,630 | |
Total assets | 9,916,308 | 10,690,479 | |
Total deposits | 6,798,562 | 6,418,810 | |
Total non-deposit liabilities | 1,719,469 | 2,759,156 | |
Operating Segments | BankMobile | |||
Segment Reporting Information [Line Items] | |||
Interest income | 8,204 | 4,410 | |
Interest expense | 166 | 16 | |
Net interest income | 8,038 | 4,394 | |
Provision for loan and lease losses | 1,791 | 243 | |
Total non-interest income | 12,141 | 12,471 | |
Non-interest expense | 18,600 | 17,949 | |
Income before income tax expense | (212) | (1,327) | |
Income tax expense (benefit) | (49) | (326) | |
Net income (loss) | (163) | (1,001) | |
Preferred stock dividends | 0 | 0 | |
Net income (loss) available to common shareholders | (163) | (1,001) | |
Goodwill and other intangibles | 12,544 | 13,847 | |
Total assets | 227,586 | 78,787 | |
Total deposits | 626,756 | 623,649 | |
Total non-deposit liabilities | 20,734 | 48,563 | |
Segment Reconciling Items | BankMobile | |||
Segment Reporting Information [Line Items] | |||
Interest income | $ 5,600 | $ 4,400 |
Non-Interest Revenues - Non-int
Non-Interest Revenues - Non-interest Revenues by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 12,349 | $ 12,949 |
Community Business Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 480 | 510 |
BankMobile | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 11,869 | 12,439 |
Transferred at Point in Time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 11,370 | 12,079 |
Transferred at Point in Time | Interchange and card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 8,806 | 9,661 |
Transferred at Point in Time | Deposit fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,209 | 2,092 |
Transferred at Point in Time | University fees - card and disbursement fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 355 | 326 |
Transferred at Point in Time | Community Business Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 480 | 510 |
Transferred at Point in Time | Community Business Banking | Interchange and card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 180 | 223 |
Transferred at Point in Time | Community Business Banking | Deposit fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 300 | 287 |
Transferred at Point in Time | Community Business Banking | University fees - card and disbursement fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Transferred at Point in Time | BankMobile | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 10,890 | 11,569 |
Transferred at Point in Time | BankMobile | Interchange and card revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 8,626 | 9,438 |
Transferred at Point in Time | BankMobile | Deposit fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1,909 | 1,805 |
Transferred at Point in Time | BankMobile | University fees - card and disbursement fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 355 | 326 |
Transferred over Time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 979 | 870 |
Transferred over Time | University fees - subscription revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 979 | 870 |
Transferred over Time | Community Business Banking | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Transferred over Time | Community Business Banking | University fees - subscription revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 0 | 0 |
Transferred over Time | BankMobile | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 979 | 870 |
Transferred over Time | BankMobile | University fees - subscription revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 979 | $ 870 |
Legal Contingencies - Narrative
Legal Contingencies - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Loss contingency, estimate of possible loss | $ 6.5 |