Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 25, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-35542 | ||
Entity Registrant Name | Customers Bancorp, Inc. | ||
Entity Incorporation, State or Country Code | PA | ||
Entity Tax Identification Number | 27-2290659 | ||
Entity Address, Address Line One | 1015 Penn Avenue | ||
Entity Address, Address Line Two | Suite 103 | ||
Entity Address, City or Town | Wyomissing | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19610 | ||
City Area Code | 610 | ||
Local Phone Number | 933-2000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 605,709,575 | ||
Entity Common Stock, Shares Outstanding | 31,381,499 | ||
Entity Central Index Key | 0001488813 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be delivered to shareholders in connection with the 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report. | ||
Voting Common Stock, par value $1.00 per share | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Voting Common Stock, par value $1.00 per share | ||
Trading Symbol | CUBI | ||
Security Exchange Name | NYSE | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, par value $1.00 per share | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series C, par value $1.00 per share | ||
Trading Symbol | CUBI/PC | ||
Security Exchange Name | NYSE | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, par value $1.00 per share | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series D, par value $1.00 per share | ||
Trading Symbol | CUBI/PD | ||
Security Exchange Name | NYSE | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series E, par value $1.00 per share | ||
Trading Symbol | CUBI/PE | ||
Security Exchange Name | NYSE | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, par value $1.00 per share | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Fixed-to-Floating Rate Non-Cumulative PerpetualPreferred Stock, Series F, par value $1.00 per share | ||
Trading Symbol | CUBI/PF | ||
Security Exchange Name | NYSE | ||
5.375% Subordinated Notes due 2034 | New York Stock Exchange | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.375% Subordinated Notes due 2034 | ||
Trading Symbol | CUBB | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 33,095 | $ 17,696 |
Interest earning deposits | 179,410 | 44,439 |
Cash and cash equivalents | 212,505 | 62,135 |
Investment securities available for sale, at fair value | 595,876 | 665,012 |
Loans held for sale (includes $2,130 and $1,507, respectively, at fair value) | 486,328 | 1,507 |
Loans receivable, mortgage warehouse, at fair value | 2,245,758 | 1,405,420 |
Loans and leases receivable | 7,318,988 | 7,138,074 |
Allowance for loan and lease losses | (56,379) | (39,972) |
Total loans and leases receivable, net of allowance for loan and lease losses | 9,508,367 | 8,503,522 |
FHLB, Federal Reserve Bank, and other restricted stock | 84,214 | 89,685 |
Accrued interest receivable | 38,072 | 32,955 |
Bank premises and equipment, net | 9,389 | 11,063 |
Bank-owned life insurance | 272,546 | 264,559 |
Other real estate owned | 173 | 816 |
Goodwill and other intangibles | 15,195 | 16,499 |
Other assets | 298,052 | 185,672 |
Total assets | 11,520,717 | 9,833,425 |
Deposits: | ||
Demand, non-interest bearing | 1,343,391 | 1,122,171 |
Interest bearing | 7,305,545 | 6,020,065 |
Total deposits | 8,648,936 | 7,142,236 |
Federal funds purchased | 538,000 | 187,000 |
FHLB advances | 850,000 | 1,248,070 |
Other borrowings | 123,630 | 123,871 |
Subordinated debt | 181,115 | 108,977 |
Accrued interest payable and other liabilities | 126,241 | 66,455 |
Total liabilities | 10,467,922 | 8,876,609 |
Commitments and contingencies (NOTE 21) | ||
Shareholders’ equity: | ||
Preferred stock, par value $1.00 per share; liquidation preference $25.00 per share; 100,000,000 shares authorized, 9,000,000 shares issued and outstanding as of December 31, 2019 and 2018 | 217,471 | 217,471 |
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 32,617,410 and 32,252,488 shares issued as of December 31, 2019 and 2018; 31,336,791 and 31,003,028 shares outstanding as of December 31, 2019 and 2018 | 32,617 | 32,252 |
Additional paid in capital | 444,218 | 434,314 |
Retained earnings | 381,519 | 316,651 |
Accumulated other comprehensive loss, net | (1,250) | (22,663) |
Treasury stock, at cost (1,280,619 and 1,249,460 shares as of December 31, 2019 and 2018) | (21,780) | (21,209) |
Total shareholders’ equity | 1,052,795 | 956,816 |
Total liabilities and shareholders’ equity | 11,520,717 | 9,833,425 |
Loans held for sale at fair value | $ 2,130 | $ 1,507 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Loans held for sale at fair value | $ 2,130 | $ 1,507 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference (usd per share) | $ 25 | $ 25 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 9,000,000 | 9,000,000 |
Preferred stock, shares outstanding | 9,000,000 | 9,000,000 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 32,617,410 | 32,252,488 |
Common stock, shares outstanding | 31,336,791 | 31,003,028 |
Treasury stock, shares | 1,280,619 | 1,249,460 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans and leases | $ 431,491 | $ 373,234 | $ 339,936 |
Investment securities | 23,713 | 33,209 | 25,153 |
Other | 8,535 | 11,508 | 7,761 |
Total interest income | 463,739 | 417,951 | 372,850 |
Interest expense: | |||
Deposits | 141,464 | 110,808 | 67,582 |
FHLB advances | 26,519 | 31,043 | 21,130 |
Subordinated debt | 6,983 | 6,737 | 6,739 |
Federal funds purchased and other borrowings | 11,463 | 11,486 | 10,056 |
Total interest expense | 186,429 | 160,074 | 105,507 |
Net interest income | 277,310 | 257,877 | 267,343 |
Provision for loan and lease losses | 24,227 | 5,642 | 6,768 |
Net interest income after provision for loan and lease losses | 253,083 | 252,235 | 260,575 |
Non-interest income: | |||
Revenue from contracts with customers | 46,720 | 43,239 | 55,961 |
Commercial lease income | 12,051 | 5,354 | 647 |
Bank-owned life insurance | 7,272 | 7,620 | 7,219 |
Mortgage warehouse transactional fees | 7,128 | 7,158 | 9,345 |
Gain (loss) on sale of SBA and other loans | 2,770 | 3,294 | 4,223 |
Mortgage banking income | 66 | 606 | 875 |
Loss upon acquisition of interest-only GNMA securities | (7,476) | 0 | 0 |
Impairment loss on investment securities | 0 | 0 | (12,934) |
Gain (loss) on sale of investment securities | 1,001 | (18,659) | 8,800 |
Unrealized gain (loss) on investment securities | 1,299 | (1,634) | 0 |
Other | 15,071 | 16,740 | 9,187 |
Total non-interest income | 80,938 | 58,998 | 78,910 |
Non-interest expense: | |||
Salaries and employee benefits | 107,632 | 104,841 | 95,518 |
Technology, communication and bank operations | 43,481 | 44,454 | 45,885 |
Professional services | 25,109 | 20,237 | 28,051 |
Occupancy | 13,098 | 11,809 | 11,161 |
Commercial lease depreciation | 9,473 | 4,388 | 522 |
FDIC assessments, non-income taxes, and regulatory fees | 5,861 | 8,642 | 7,906 |
Provision for operating losses | 9,638 | 5,616 | 6,435 |
Advertising and promotion | 4,044 | 2,446 | 1,470 |
Merger and acquisition related expenses | 100 | 4,391 | 410 |
Loan workout | 1,687 | 2,183 | 2,366 |
Other real estate owned | 398 | 449 | 570 |
Other | 11,380 | 10,723 | 15,312 |
Total non-interest expense | 231,901 | 220,179 | 215,606 |
Income before income tax expense | 102,120 | 91,054 | 123,879 |
Income tax expense | 22,793 | 19,359 | 45,042 |
Net income | 79,327 | 71,695 | 78,837 |
Preferred stock dividends | 14,459 | 14,459 | 14,459 |
Net income available to common shareholders | $ 64,868 | $ 57,236 | $ 64,378 |
Basic earnings per common share (usd per share) | $ 2.08 | $ 1.81 | $ 2.10 |
Diluted earnings per common share (usd per share) | $ 2.05 | $ 1.78 | $ 1.97 |
Interchange and card revenue | |||
Non-interest income: | |||
Revenue from contracts with customers | $ 28,941 | $ 30,695 | $ 41,509 |
Deposit fees | |||
Non-interest income: | |||
Revenue from contracts with customers | $ 12,815 | $ 7,824 | $ 10,039 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 79,327 | $ 71,695 | $ 78,837 |
Unrealized gains (losses) on available for sale debt securities: | |||
Unrealized gains (losses) arising during the period | 49,688 | (46,069) | 12,266 |
Income tax effect | (12,919) | 11,978 | (4,378) |
Reclassification adjustments for (gains) losses included in net income | (1,001) | 18,659 | (8,800) |
Income tax effect | 260 | (4,851) | 3,432 |
Net unrealized gains (losses) on available for sale debt securities | 36,028 | (20,283) | 2,520 |
Unrealized gains (losses) on cash flow hedges: | |||
Unrealized gains (losses) arising during the period | (21,157) | 1,995 | 666 |
Income tax effect | 5,501 | (518) | (260) |
Reclassification adjustment for (gains) losses included in net income | 1,407 | (2,917) | 2,634 |
Income tax effect | (366) | 758 | (1,027) |
Net unrealized gains (losses) on cash flow hedges | (14,615) | (682) | 2,013 |
Other comprehensive income (loss), net of income tax effect | 21,413 | $ (20,965) | $ 4,533 |
Comprehensive income (loss) | $ 100,740 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Voting Common Stock, par value $1.00 per share | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |
Beginning balance at Dec. 31, 2016 | $ 855,872 | $ 217,471 | $ 30,820 | $ 427,008 | $ 193,698 | $ (4,892) | $ (8,233) | |
Beginning balance, preferred stock (shares) at Dec. 31, 2016 | 9,000,000 | |||||||
Beginning balance, common stock (shares) at Dec. 31, 2016 | 30,289,917 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 78,837 | 78,837 | ||||||
Other comprehensive income (loss) | 4,533 | 4,533 | ||||||
Preferred stock dividends | [1] | (14,459) | (14,459) | |||||
Share-based compensation expense | 6,088 | 6,088 | ||||||
Exercise of warrants (shares) | 74,161 | |||||||
Exercise of warrants | 1,059 | $ 74 | 985 | |||||
Issuance of common stock under share-based-compensation arrangements (shares) | 1,018,425 | |||||||
Issuance of common stock under share-based-compensation arrangements | $ (10,966) | $ 1,019 | (11,985) | |||||
Repurchase of common shares (shares) | 0 | |||||||
Ending balance at Dec. 31, 2017 | $ 920,964 | $ 217,471 | $ 31,913 | 422,096 | 258,076 | (359) | (8,233) | |
Ending balance, preferred stock (shares) at Dec. 31, 2017 | 9,000,000 | |||||||
Ending balance, common stock (shares) at Dec. 31, 2017 | 31,382,503 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 71,695 | 71,695 | ||||||
Other comprehensive income (loss) | (20,965) | (20,965) | ||||||
Preferred stock dividends | [1] | (14,459) | (14,459) | |||||
Share-based compensation expense | 8,605 | 8,605 | ||||||
Exercise of warrants (shares) | 5,242 | |||||||
Exercise of warrants | 112 | $ 5 | 107 | |||||
Issuance of common stock under share-based-compensation arrangements (shares) | 334,483 | |||||||
Issuance of common stock under share-based-compensation arrangements | $ 3,840 | $ 334 | 3,506 | |||||
Repurchase of common shares (shares) | (719,200) | (719,200) | ||||||
Repurchase of common shares, value | $ (12,976) | (12,976) | ||||||
Ending balance at Dec. 31, 2018 | $ 956,816 | $ 217,471 | $ 32,252 | 434,314 | 316,651 | (22,663) | (21,209) | |
Ending balance, preferred stock (shares) at Dec. 31, 2018 | 9,000,000 | 9,000,000 | ||||||
Ending balance, common stock (shares) at Dec. 31, 2018 | 31,003,028 | 31,003,028 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 79,327 | 79,327 | ||||||
Other comprehensive income (loss) | 21,413 | 21,413 | ||||||
Preferred stock dividends | [1] | (14,459) | (14,459) | |||||
Share-based compensation expense | 8,898 | 8,898 | ||||||
Issuance of common stock under share-based-compensation arrangements (shares) | 364,922 | |||||||
Issuance of common stock under share-based-compensation arrangements | 1,371 | $ 365 | 1,006 | |||||
Repurchase of common shares (shares) | (31,159) | |||||||
Repurchase of common shares, value | (571) | (571) | ||||||
Ending balance at Dec. 31, 2019 | $ 1,052,795 | $ 217,471 | $ 32,617 | $ 444,218 | $ 381,519 | $ (1,250) | $ (21,780) | |
Ending balance, preferred stock (shares) at Dec. 31, 2019 | 9,000,000 | 9,000,000 | ||||||
Ending balance, common stock (shares) at Dec. 31, 2019 | 31,336,791 | 31,336,791 | ||||||
[1] | Dividends per share of $1.75, $1.63, $1.61, and $1.50 per share were declared on Series C, D, E, and F preferred stock for the years ended December 31, 2019, 2018, and 2017, respectively. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Series C Preferred Stock | |||
Preferred stock, dividends paid (usd per share) | $ 1.75 | $ 1.75 | $ 1.75 |
Series D Preferred Stock | |||
Preferred stock, dividends paid (usd per share) | 1.63 | 1.63 | 1.63 |
Series E Preferred Stock | |||
Preferred stock, dividends paid (usd per share) | 1.61 | 1.61 | 1.61 |
Series F Preferred Stock | |||
Preferred stock, dividends paid (usd per share) | $ 1.50 | $ 1.50 | $ 1.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 79,327 | $ 71,695 | $ 78,837 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan and lease losses | 24,227 | 5,642 | 6,768 |
Depreciation and amortization | 22,879 | 14,157 | 10,801 |
Share-based compensation expense | 9,851 | 9,740 | 7,167 |
Deferred taxes | 14,516 | 9,303 | 14,820 |
Net amortization of investment securities premiums and discounts | 1,016 | 1,403 | 702 |
Unrealized (gain) loss on investment securities | 1,299 | (1,634) | 0 |
(Gain) loss on sale of investment securities | (1,001) | 18,659 | (8,800) |
Loss upon acquisition of interest-only GNMA securities | 7,476 | 0 | 0 |
Impairment loss on investment securities | 0 | 0 | 12,934 |
(Gain) loss on sale of loans | (2,804) | (3,913) | (4,898) |
Origination of loans held for sale | (48,044) | (31,699) | (41,172) |
Proceeds from the sale of loans held for sale | 47,455 | 32,676 | 40,656 |
Amortization of fair value discounts and premiums | 893 | 194 | 88 |
Net (gain) loss on sales of other real estate owned | 137 | 183 | 154 |
Valuation and other adjustments to other real estate owned | 62 | 153 | 298 |
Earnings on investment in bank-owned life insurance | (7,272) | (7,620) | (7,219) |
(Increase) decrease in accrued interest receivable and other assets | (84,141) | (34,614) | (32,256) |
Increase (decrease) in accrued interest payable and other liabilities | 15,002 | 9,881 | (16,687) |
Net Cash Provided by (Used in) Operating Activities | 78,280 | 97,474 | 62,193 |
Cash Flows from Investing Activities | |||
Proceeds from maturities, calls and principal repayments on investment securities | 38,709 | 44,313 | 48,124 |
Proceeds from sales of investment securities available for sale | 97,555 | 476,182 | 769,203 |
Purchases of investment securities available for sale | 0 | (763,242) | (796,594) |
Origination of mortgage warehouse loans | (31,782,542) | (27,209,330) | (30,084,255) |
Proceeds from repayments of mortgage warehouse loans | 30,900,905 | 27,597,318 | 30,407,662 |
Net (increase) decrease in loans and leases, excluding mortgage warehouse loans | 239,018 | 59,534 | (960,372) |
Proceeds from sale of loans | 273,388 | 110,526 | 462,518 |
Purchase of loans | (1,167,417) | (397,888) | (262,641) |
Proceeds from bank-owned life insurance | 0 | 529 | 1,418 |
Purchases of bank-owned life insurance | 0 | 0 | (90,000) |
Net proceeds from (purchases of) FHLB, Federal Reserve Bank, and other restricted stock | 5,471 | 16,233 | |
Net proceeds from (purchases of) FHLB, Federal Reserve Bank, and other restricted stock | (37,510) | ||
Purchases of bank premises and equipment | (1,705) | (1,777) | (2,135) |
Proceeds from sales of other real estate owned | 735 | 2,213 | 1,680 |
Purchases of university relationship intangible asset | 0 | (1,502) | 0 |
Purchases of leased assets under lessor operating leases | (48,552) | (37,207) | (22,223) |
Net Cash Used in Investing Activities | (1,444,435) | (104,098) | (565,125) |
Cash Flows from Financing Activities | |||
Net increase (decrease) in deposits | 1,506,700 | 342,094 | (503,633) |
Net increase (decrease) in short-term borrowed funds from the FHLB | (748,070) | (363,790) | 743,060 |
Net increase (decrease) in federal funds purchased | 351,000 | 32,000 | 72,000 |
Proceeds from long-term borrowed funds from the FHLB | 350,000 | 0 | 0 |
Proceeds from issuance of subordinated long-term debt | 72,030 | 0 | 0 |
Proceeds from issuance of other long-term borrowings | 24,477 | 0 | 98,564 |
Repayments of other borrowings | (25,000) | (63,250) | 0 |
Preferred stock dividends paid | (14,459) | (14,459) | (14,459) |
Exercise and redemption of warrants | 0 | 112 | 1,059 |
Purchase of treasury stock | (571) | (12,976) | 0 |
Payments of employee taxes withheld from share-based awards | (1,732) | (880) | (14,761) |
Proceeds from issuance of common stock | 2,150 | 3,585 | 2,716 |
Net Cash Provided by (Used in) Financing Activities | 1,516,525 | (77,564) | 384,546 |
Net Increase (Decrease) in Cash and Cash Equivalents | 150,370 | (84,188) | (118,386) |
Cash and Cash Equivalents – Beginning | 62,135 | 146,323 | 264,709 |
Cash and Cash Equivalents – Ending | 212,505 | 62,135 | 146,323 |
Supplementary Cash Flow Information: | |||
Interest paid | 182,596 | 160,384 | 101,575 |
Income taxes paid | 7,410 | 4,794 | 40,282 |
Noncash Operating and Investing Activities: | |||
Transfer of loans to other real estate owned | 291 | 1,639 | 750 |
Transfer of loans held for investment to held for sale | 499,774 | 0 | 150,638 |
Transfer of loans held for sale to held for investment | 0 | 129,691 | 0 |
Acquisition of interest-only GNMA securities securing a mortgage warehouse loan | 17,157 | 0 | 0 |
Acquisition of residential reverse mortgage loans securing a mortgage warehouse loan | $ 1,325 | $ 0 | $ 0 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Customers Bancorp, Inc. ("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. Customers Bancorp and its wholly owned subsidiaries, the Bank, and non-bank subsidiaries, serve residents and businesses in Southeastern Pennsylvania (Bucks, Berks, Chester, Philadelphia and Delaware Counties); Rye Brook, New York (Westchester County); Hamilton, New Jersey (Mercer County); Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire (Rockingham County); Manhattan and Melville, New York; Washington, D.C.; Chicago, Illinois; and nationally for certain loan and deposit products. The Bank has 13 full-service branches and provides commercial banking products, primarily loans and deposits. In addition, Customers Bank also administratively supports loan and other financial products, including equipment finance leases, 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. The Bank is subject to regulation of the Pennsylvania Department of Banking and Securities and the Federal Reserve Bank and is periodically examined by those regulatory authorities. Customers Bancorp has made certain equity investments through its wholly owned subsidiaries CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd. |
Significant Accounting Policies
Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC. The accounting and reporting policies of Customers Bancorp and subsidiaries are in conformity with U.S. GAAP and predominant practices of the banking industry. The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The ALLL and the valuation of the interest-only GNMA securities are material estimates that are particularly susceptible to significant change in the near-term. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Customers Bancorp and its wholly owned subsidiaries, including Customers Bank, CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd., as well as Customers Bank's wholly owned subsidiaries, BankMobile Technologies, Inc., Customers Commercial Finance, LLC and Devon Service PA LLC. All intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents and Statements of Cash Flows Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits with banks with a maturity date of three months or less and are recorded at cost. The carrying value of cash and cash equivalents is a reasonable estimate of its approximate fair value. Changes in the balances of cash and cash equivalents are reported on the consolidated statements of cash flows. Cash receipts from the repayment or sale of loans are classified within the statement of cash flows based on management's original intent upon origination of the loan, as prescribed by accounting guidance related to the statement of cash flows. Commercial mortgage warehouse loans are classified as held for investment and presented at "Loans receivable, mortgage warehouse, at fair value" on the consolidated balance sheets and the cash flow activities associated with these commercial mortgage warehouse lending activities are reported as investing activities on the consolidated statements of cash flows. Restrictions on Cash and Amounts due from Banks The Bank is required to maintain average balances at a certain level of cash and amounts on deposit with the Federal Reserve Bank. Customers Bank generally maintains balances in excess of the required levels at the Federal Reserve Bank. At December 31, 2019 and 2018, these required reserve balances were $69.1 million and $58.4 million, respectively. Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with ASC 805, Business Combinations . Under the acquisition method, identifiable assets acquired and liabilities assumed are measured at their fair values as of the date of acquisition and are recognized separately from goodwill. The results of operations of the acquired entity are included in the consolidated statement of income from the date of acquisition. Customers recognizes goodwill when the acquisition price exceeds the estimated fair value of the net assets acquired. Investment Securities Customers acquires securities, largely agency-guaranteed mortgage-backed securities and corporate notes, to effectively utilize cash and capital and to generate earnings. Security transactions are recorded as of the trade date. Debt securities are classified at the time of acquisition as available for sale, HTM or trading, and their classification determines the accounting as follows: Available for sale : Investment securities classified as available for sale are those debt securities that Customers intends to hold for an indefinite period of time but not necessarily to maturity. Investment securities available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in AOCI, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings and recorded on the trade date. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Interest-only GNMA securities : On June 28, 2019, Customers obtained ownership of certain interest-only GNMA securities that served as the primary collateral for loans made to one commercial mortgage warehouse customer through a Uniform Commercial Code private sale transaction, as further described in NOTE 5 – INVESTMENT SECURITIES. Upon acquisition, Customers elected the fair value option for these interest-only GNMA securities, with changes in fair value reported as unrealized gain (loss) on investment securities within non-interest income. The fair value of these securities at December 31, 2019 was $16.3 million. Held to maturity : Investment securities classified as HTM are those debt securities that Customers has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premiums and accretion of discounts, computed by a method which approximates the interest method over the terms of the securities. There were no securities classified as HTM as of December 31, 2019 and 2018. Equity securities: Equity securities are carried at their fair value, with changes in fair value reported in other non-interest income beginning in 2018. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. For years ended December 31, 2017 and prior, equity securities were classified as available for sale and carried at fair value, with unrealized gains or losses reported as increases or decreases in AOCI, net of the related deferred tax effect. For available for sale and HTM debt securities, management periodically assesses whether the securities are OTTI. OTTI means that management believes a security’s decline in fair value below its amortized cost basis is due to factors that could include the issuer’s inability to pay interest or dividends, its potential for default and/or other factors. When a HTM or available for sale debt security is assessed for OTTI, management has to first consider (a) whether Customers intends to sell the security, and (b) whether it is more likely than not that Customers will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an OTTI loss is recognized in the consolidated statements of income equal to the full amount of the decline in fair value below the amortized cost basis. If neither of these circumstances applies to a security, but Customers does not expect to recover the entire amortized cost basis, an OTTI has occurred that must be separated into two categories for debt securities: (a) the amount related to a credit loss and (b) the amount related to other factors. In determining the amount of OTTI attributable to credit loss, management compares the present value of cash flows expected to be collected to the amortized cost basis of the security. The portion of the total OTTI attributed to a credit loss is recognized in earnings (as the difference between the fair value and the present value of the estimated cash flows expected to be collected), while the amount related to all other factors is recognized in AOCI. The total OTTI loss is presented in the statement of income, less the portion recognized in AOCI. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. On January 1, 2018, Customers adopted the new accounting standard for financial instruments, which requires equity securities to be measured at fair value, except those accounted for under the equity method of accounting, with changes in fair value recognized in earnings in the period in which they occur and will no longer be deferred in AOCI. The adoption of this guidance resulted in a $1.0 million increase to beginning retained earnings and a $1.0 million decrease to beginning AOCI. Loan Accounting Framewor k The accounting for a loan depends on management’s strategy for the loan and on whether the loan was credit impaired at the date of acquisition. The Bank accounts for loans based on the following categories: • Loans held for sale, • Loans at fair value, • Loans receivable and • Purchased loans. The discussion that follows describes the accounting for loans in these categories. Loans Held for Sale and Loans at Fair Value Loans originated or purchased by Customers with the intent to sell them in the secondary market are carried either at the lower of cost or fair value, determined in the aggregate, or at fair value, depending upon an election made at the time the loan is originated or purchased. These loans are generally sold on a non-recourse basis with servicing released. Gains and losses on the sale of loans accounted for at the lower of cost or fair value are recognized in earnings based on the difference between the proceeds received and the carrying amount of the loans, inclusive of deferred origination fees and costs, if any. As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or purchased with the intent to sell may subsequently be designated as held for sale. These loans are transferred to the held-for-sale portfolio at the lower of amortized cost or fair value. When the amortized cost of the loan exceeds its fair value at the date of transfer to the held-for-sale portfolio, the excess will be recognized as a charge against the ALLL to the extent the loan's reduction in fair value has already been provided for in the ALLL. Any subsequent lower of cost or fair value adjustments are recognized as a valuation allowance with charges recognized in non-interest income. Loans originated or purchased by Customers with the intent to sell them for which fair value accounting is elected are reported at fair value, with changes in fair value recognized in earnings in the period in which they occur. Upon sale, any difference between the proceeds received and the carrying amount of the loan is recognized in earnings. No fees or costs related to such loans are deferred, so they do not affect the gain or loss calculation at the time of sale. An ALLL is not maintained on loans designated as held for sale or reported at fair value. Loans Receivable - Mortgage Warehouse, at Fair Value Certain mortgage warehouse lending transactions subject to master repurchase agreements are reported at fair value based on an election made to account for the loans at fair value. Pursuant to these agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded loans and receives proceeds directly from third party investors when the loans are sold into the secondary market. Commercial mortgage warehouse loans are classified as held for investment and presented as "Loans receivable, mortgage warehouse, at fair value" on the consolidated balance sheets. An ALLL is not maintained on loans reported at fair value. Loans and Leases Receivable Loans and leases receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances, net of an ALLL and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan and lease origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment to the yield (interest income) of the related loans and leases using the level-yield method without anticipating prepayments. Customers is amortizing these amounts over the contractual life of the loans and leases. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or when management has doubts about further collectibility of principal or interest, even though the loan is currently performing. A loan or lease may remain on accrual status if it is in the process of collection and is well secured. When a loan or lease is placed on non-accrual status, unpaid accrued interest previously credited to income is reversed. Interest received on non-accrual loans and leases is generally applied against principal until all principal has been recovered. Thereafter, payments are recognized as interest income until all unpaid amounts have been received. Generally, loans and leases are restored to accrual status when the loan is brought current and has performed in accordance with the contractual terms for a minimum of six months, and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. Purchased Loans Customers believes that the varying circumstances under which it purchaes loans and the diverse credit quality of loans purchased should drive the decision as to whether loans in a portfolio should be deemed to be PCI loans. Therefore, loan purchases are evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans purchased that do not have evidence of credit deterioration at the purchase date are accounted for in accordance with ASC 310-10, and loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans that are purchased that do not have evidence of credit deterioration Purchased performing loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized or accreted as an adjustment to yield over the estimated contractual lives of the loans. There is no ALLL established at the purchase date for purchased performing loans. An ALLL is recorded for any credit deterioration in these loans subsequent to the purchase. Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected For these types of loan purchases, evidence of deteriorated credit quality may include past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. The fair value of loans with evidence of credit deterioration is recorded net of a nonaccretable difference and accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference that is not included in the carrying amount of acquired loans. Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities and other factors that are reflective of current market conditions. Subsequent decreases in expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows. PCI loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have similar risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. On a quarterly basis, Customers re-estimates the total cash flows (both principal and interest) expected to be collected over the remaining life of each pool. These estimates incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that reflect the then-current market conditions. If the timing and/or amounts of expected cash flows on PCI loans are determined not to be reasonably estimable, no interest is accreted, and the loans are reported as non-accrual loans; however, when the timing and amounts of expected cash flows for PCI loans are reasonably estimable, interest is accreted, and the loans are reported as performing loans. Allowance for Loan and Lease Losses The ALLL is Management's estimate of the probable losses inherent in the loan portfolio as of the balance sheet date and are recognized through provisions for loan and lease losses. Loans and leases deemed to be uncollectible are charged against the ALLL, and subsequent recoveries, if any, are credited to the ALLL. The ALLL is maintained at a level considered appropriate to absorb probable incurred loan and lease losses inherent in the loan and lease portfolio as of the reporting date. Customers segments its loan and lease portfolio into groups of loans with similar risk characteristics for purposes of estimating the ALLL. Customers' loan and lease groups include multi-family, commercial and industrial, owner and non-owner occupied commercial real estate, construction, residential real estate, manufactured housing, other consumer and PCI loans. SBA loans are further segmented. Customers also further segments its residential real estate portfolio into two classes based upon certain risk characteristics: first-mortgage loans and home equity loans and lines of credit. The remaining loan groups are also considered classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Additionally, within each loan group the acquired loans that are accounted for under ASC 310-10 are further segmented. The total ALLL consists of an allowance for impaired loans, a general allowance for losses and may also include residual non-specific reserve amounts. Management performs a quarterly assessment of the adequacy of the ALLL, which is based on Customers' past loan and lease loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan and lease portfolio, current economic conditions, peer and industry data and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Customers' current methodology for determining the ALLL is based on historical loss rates, peer and industry data, current economic conditions, risk ratings, allowances on loans and leases identified as impaired and other qualitative adjustments as considered appropriate. The impaired-loan and lease component of the ALLL generally relates to loans and leases for which it is probable that Customers will be unable to collect all amounts due according to the contractual terms of the loan and lease agreements. Customers analyzes certain loans and leases in its portfolio for impairment in accordance with ASC 310-10-35. Customers' impaired loans and leases generally include loans and leases that have been (i) placed on non-accrual, (ii) restructured in a TDR, regardless of their payment status and (iii) charged-off to their net realizable value. For such loans and leases, an allowance is established when the (i) discounted cash flows, (ii) collateral value or (iii) the impaired loan or lease estimated fair value is lower than the carrying value of the loan or lease. The general component of the ALLL covers groups of loans and leases by loan and lease class, including commercial loans and leases not considered impaired, as well as smaller balance homogeneous loans, such as other consumer loans, residential real estate, home equity loans, and home equity lines of credit. These pools of loans and leases are evaluated for loss exposure based upon industry, peer or Customers' historical loss rates for each of these groups of loans and leases. After determining the appropriate historical loss rate for each group of loans and leases, management considers current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience. The overall effect of these factors is recorded as an adjustment that, as appropriate, increases or decreases the historical loss rate applied to the loan group. The qualitative factors that management generally considers include the following: • National, regional and local economic and business conditions, including review of changes in the unemployment rate; • Volume and severity of past-due loans, non-accrual loans and classified loans; • Lending policies and procedures, including underwriting standards and historically based loss/collection, charge-off and recovery practices; • Nature and volume of the portfolio; • Existence and effect of any credit concentrations and changes in the level of such concentrations; • Risk ratings; • Changes in the values of collateral for collateral dependent loans; • Changes in the quality of the loan review system; • Experience, ability and depth of lending management and staff; and • Other external factors, such as changes in the legal, regulatory or competitive environment. A residual reserve may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The residual reserve amount reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating credit losses in the loan and lease portfolio. The discussion that follows describes Customers' underwriting policies for its primary lending activities and its credit monitoring and charge-off practices. Commercial and industrial loans and leases are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay its obligation as agreed. Commercial and industrial loans and leases are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan or lease facility. Accordingly, the repayment of a commercial and industrial loan or lease depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans rely on the value associated with the project upon completion. The cost and valuation amounts used are estimates and may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of the developed property. These loans are closely monitored by on-site inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest-rate sensitivity and governmental regulation of real property. Commercial real estate and multi-family loans are subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan, or the principal business conducted on the property securing the loan, to generate sufficient cash flows to service the debt. In addition, the underwriting considers the amount of the principal advanced relative to the property value. Commercial real estate and multi-family loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates commercial real estate and multi-family loans based on cash flow estimates, collateral valuation and risk-rating criteria. Customers also utilizes third-party experts to provide environmental and market valuations. Substantial effort is required to underwrite, monitor and evaluate commercial real estate and multi-family loans. Residential real estate loans are secured by one-to-four dwelling units. This group is further divided into first mortgage and home equity loans. First mortgages are originated at a loan to value ratio of 80% or less. Home equity loans have additional risks as a result of typically being in a second position or lower in the event collateral is liquidated. Manufactured housing loans are loans that are secured by the manufactured housing unit where the borrower may or may not own the underlying real estate and therefore have a higher risk than a residential real estate loan. Other consumer loans consist primarily of unsecured loans to individuals which are originated through Customers' retail network or acquired through purchases from third parties, primarily market place lenders. None of the loans are sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660. Consumer loans have a greater credit risk than residential loans because of the difference in the underlying collateral, if any. The application of various federal and state bankruptcy and insolvency laws may limit the amount that can be recovered on such loans. Delinquency status and other borrower characteristics are used to monitor loans and leases and identify credit risks, and the general reserves are established based on the expected incurred net charge-offs, adjusted for qualitative factors. Charge-offs on commercial and industrial, construction, multi-family and commercial real estate loans and leases are recorded when management estimates that there are insufficient cash flows to repay the contractual loan obligation based upon financial information available and valuation of the underlying collateral. Shortfalls in the underlying collateral value for loans or leases determined to be collateral dependent are charged-off immediately. Customers also takes into account the strength of any guarantees and the ability of the borrower to provide value related to those guarantees in determining the ultimate charge-off or allowance associated with an impaired loan or lease. Accordingly, Customers may charge-off a loan or lease to a value below the net appraised value if it believes that an expeditious liquidation is desirable under the circumstance, and it has legitimate offers or other indications of interest to support a value that is less than the net appraised value. Alternatively, Customers may carry a loan or lease at a value that is in excess of the appraised value in certain circumstances, such as when Customers has a guarantee from a borrower that Customers believes has realizable value. In evaluating the strength of any guarantee, Customers evaluates the financial wherewithal of the guarantor, the guarantor’s reputation and the guarantor’s willingness and desire to work with Customers. Customers then conducts a review of the strength of the guarantee on a frequency established as the circumstances and conditions of the borrower warrant. Customers records charge-offs for residential real estate, other consumer and manufactured housing loans after 120 days of delinquency or sooner when cash flows are determined to be insufficient for repayment. Customers may also charge-off these loans below the net appraised valuation if Customers holds a junior-mortgage position in a piece of collateral whereby the risk to acquiring control of the property through the purchase of the senior-mortgage position is deemed to potentially increase the risk of loss upon liquidation due to the amount of time to ultimately sell the property and the volatile market conditions. In such cases, Customers may abandon its junior mortgage and charge-off the loan balance in full. Credit Quality Factors Commercial and industrial, multi-family, commercial real estate and construction loans and leases are each assigned a numerical rating of risk based on an internal risk-rating system. The risk rating is assigned at loan origination and indicates management's estimate of credit quality. Risk ratings are reviewed on a periodic or “as needed” basis. Residential real estate, manufactured housing and other consumer loans are evaluated primarily based on payment activity of the loan. Risk ratings are not established for residential real estate, home equity loans, manufactured housing loans, and other consumer loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based on aggregate payment history (through the monitoring of delinquency levels and trends). For additional information about credit quality risk ratings refer to NOTE 7 – LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR LOAN AND LEASE LOSSES. Impaired Loans and Leases A loan or lease is generally considered impaired when, based on current information and events, it is probable that Customers will be unable to collect all amounts due according to the contractual terms of the loan or lease agreement. Customers' impaired loans and leases generally include loans and leases that have been (i) placed on non-accrual, (ii) restructured in a TDR, regardless of their payment status and (iii) charged-off to their net realizable value. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans and leases that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan or lease and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is generally measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s original effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. The fair value of the collateral is measured based on the value of the collateral securing the loans, less estimated costs to liquidate the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of Customers' collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, third-party licensed appraiser using comparable market data. The value of business equipment is based upon an outside appraisal if deemed significant or the net book value on the applicable business’ financial statements if not considered significant, using comparable market data. Similarly, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports. Goodwill a |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 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. For the Years Ended December 31, 2019 2018 2017 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 64,868 $ 57,236 $ 64,378 Weighted-average number of common shares outstanding – basic 31,183,841 31,570,118 30,659,320 Share-based compensation plans 462,375 658,739 1,917,451 Warrants — 4,241 19,906 Weighted-average number of common shares – diluted 31,646,216 32,233,098 32,596,677 Basic earnings per common share $ 2.08 $ 1.81 $ 2.10 Diluted earnings per common share $ 2.05 $ 1.78 $ 1.97 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. For the Years Ended December 31, 2019 2018 2017 Anti-dilutive securities: Share-based compensation awards 2,172,157 1,138,251 1,059,225 |
Changes In Accumulated Other Co
Changes In Accumulated Other Comprehensive Income (Loss) By Component | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2019 and 2018. Amounts in parentheses indicate reductions to accumulated other comprehensive income (loss). Available for Sale Securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) (2) Unrealized Gains (Losses) on Cash Flow Hedges (3) Total Balance, December 31, 2017 $ (249) $ 88 $ (161) $ (198) $ (359) Reclassification of the income tax effects of the Tax Cuts and Jobs Act (1) (256) — (256) (42) (298) Reclassification of the net unrealized gains on equity securities (1) (953) (88) (1,041) — (1,041) Balance after reclassification adjustments on January 1, 2018 (1,458) — (1,458) (240) (1,698) Current period: Unrealized gains (losses) arising during period, before tax (46,069) — (46,069) 1,995 (44,074) Income tax effect 11,978 — 11,978 (518) 11,460 Other comprehensive income (loss) before reclassifications (34,091) — (34,091) 1,477 (32,614) Reclassification adjustments for losses (gains) included in net income, before tax 18,659 — 18,659 (2,917) 15,742 Income tax effect (4,851) — (4,851) 758 (4,093) Amounts reclassified from accumulated other comprehensive income (loss) to net income 13,808 — 13,808 (2,159) 11,649 Net current-period other comprehensive income (loss) (20,283) — (20,283) (682) (20,965) Balance, December 31, 2018 (21,741) — (21,741) (922) (22,663) Current period: Unrealized gains (losses) arising during period, before tax 49,688 — 49,688 (21,157) 28,531 Income tax effect (12,919) — (12,919) 5,501 (7,418) Other comprehensive income (loss) before reclassifications 36,769 — 36,769 (15,656) 21,113 Reclassification adjustments for losses (gains) included in net income, before tax (1,001) — (1,001) 1,407 406 Income, tax effect 260 — 260 (366) (106) Amounts reclassified from accumulated other comprehensive income (loss) to net income (741) — (741) 1,041 300 Net current-period other comprehensive income (loss) 36,028 — 36,028 (14,615) 21,413 Balance, December 31, 2019 $ 14,287 $ — $ 14,287 $ (15,537) $ (1,250) (1) Amounts reclassified from accumulated other comprehensive income (loss) on January 1, 2018 as a result of the adoption of ASU 2018-02 and ASU 2016-01 resulted in a decrease in accumulated other comprehensive income of $1.3 million and a corresponding increase in retained earnings for the same amount. (2) 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. (3) Reclassification amounts for cash flow hedges are reported as interest expense for the applicable hedged items on the consolidated statements of income or other non-interest income on the consolidated statements of income for gains recognized from the discontinuance of cash flow hedge accounting for certain interest rate swaps. No cash flow hedges were discontinued during the year ended December 31, 2019. During the year ended December 31, 2018, a reclassification amount of $95 thousand ($70 thousand net of taxes) was reported as a reduction to interest expense on FHLB advances on the consolidated statements of income and a reclassification amount of $2.8 million ($2.1 million net of taxes) was reported as other non-interest income on the consolidated statements of income from the discontinuance of cash flow hedge accounting for certain interest rate swaps. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of December 31, 2019 and 2018 are summarized as follows: December 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 $ 273,252 $ 5,069 $ — $ 278,321 Corporate notes (1) 284,639 14,238 — 298,877 Available for sale debt securities $ 557,891 $ 19,307 $ — 577,198 Interest-only GNMA securities (2) 16,272 Equity securities (3) 2,406 Total investment securities, at fair value $ 595,876 December 31, 2018 (amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale 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 (3) 1,718 Total investment securities, at fair value $ 665,012 (1) At December 31, 2019, includes corporate securities issued by domestic bank holding companies. At December 31, 2018, includes corporate securities issued by other domestic and foreign bank holding companies. (2) Reported at fair value with fair value changes recorded in non-interest income based on fair value option election. (3) Includes equity securities issued by a foreign entity. On June 28, 2019, Customers obtained ownership of certain interest-only GNMA securities that served as the primary collateral for loans made to one commercial mortgage warehouse customer through a Uniform Commercial Code private sale transaction. In connection with the acquisition of the interest-only GNMA securities, Customers recognized a pre-tax loss of $7.5 million for the year ended December 31, 2019 for the shortfall in the fair value of the interest-only GNMA securities compared to its credit exposure to this commercial mortgage warehouse customer. Upon acquisition, Customers elected the fair value option for these interest-only GNMA securities. The fair value of these securities at December 31, 2019 was $16.3 million. During the year ended December 31, 2019, Customers recognized unrealized gains of $1.3 million on its interest-only GNMA securities and equity securities. During the year ended December 31, 2018, Customers recognized unrealized losses of $1.6 million on its equity securities. These unrealized gains and losses are reported as unrealized gain (loss) on investment securities within non-interest income on the consolidated statements of income. The following table presents proceeds from the sale of available for sale debt securities and gross gains and gross losses realized on those sales: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Proceeds from sale of available for sale debt securities $ 97,555 $ 476,182 $ 769,203 Gross gains $ 1,931 $ — $ 8,808 Gross losses (930) (18,659) (8) Net gains (losses) $ 1,001 $ (18,659) $ 8,800 These gains (losses) were determined using the specific identification method and were reported as gain (loss) on sale of investment securities within non-interest income on the consolidated statements of income. The following table presents debt securities by stated maturity. Debt securities backed by mortgages and interest-only GNMA securities 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: December 31, 2019 (amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 15,000 15,206 Due after five years through ten years 267,639 281,607 Due after ten years 2,000 2,064 Agency-guaranteed residential mortgage-backed securities 273,252 278,321 Interest-only classes of agency-guaranteed home equity conversion mortgage-backed securities — 16,272 Total debt securities $ 557,891 $ 593,470 At December 31, 2019, there were no available for sale debt securities in an unrealized loss position. 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 December 31, 2018 were as follows: 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 December 31, 2019 and 2018, Customers Bank had pledged investment securities aggregating $20.4 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. At December 31, 2019 and 2018, no securities holdings of any one issuer, other than the U.S. Government and its agencies, amounted to greater than 10% of shareholders' equity. |
Loans Held for Sale
Loans Held for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Receivables Held-for-sale [Abstract] | |
Loans Held for Sale | LOANS HELD FOR SALE The composition of loans held for sale as of December 31, 2019 and 2018 was as follows: December 31, (amounts in thousands) 2019 2018 Commercial loans: Multi-family loans, at lower of cost or fair value $ 482,873 $ — Total commercial loans held for sale 482,873 — Consumer loans: Home equity conversion mortgages, at lower of cost or fair value 1,325 — Residential mortgage loans, at fair value 2,130 1,507 Total consumer loans held for sale 3,455 1,507 Loans held for sale $ 486,328 $ 1,507 Effective September 30, 2019, Customers Bank transferred $499.8 million of multi-family loans from loans and leases receivable (held for investment) to loans held for sale. Customers Bank transferred these loans at their carrying value, which was lower than the estimated fair value at the time of transfer. At December 31, 2019, the carrying value of these loans approximates their fair value. |
Loans and Leases Receivable and
Loans and Leases Receivable and Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 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 December 31, 2019 and 2018: December 31, (amounts in thousands) 2019 2018 Loans receivable, mortgage warehouse, at fair value $ 2,245,758 $ 1,405,420 Loans receivable: Commercial: Multi-family 1,909,274 3,285,297 Commercial and industrial (including owner occupied commercial real estate) (1) 2,441,987 1,951,277 Commercial real estate non-owner occupied 1,223,529 1,125,106 Construction 118,418 56,491 Total commercial loans and leases receivable 5,693,208 6,418,171 Consumer: Residential real estate 375,014 566,561 Manufactured housing 70,398 79,731 Other consumer 1,178,283 74,035 Total consumer loans receivable 1,623,695 720,327 Loans and leases receivable 7,316,903 7,138,498 Deferred (fees) costs and unamortized (discounts) premiums, net 2,085 (424) Allowance for loan and lease losses (56,379) (39,972) Total loans and leases receivable, net of allowance for loan and lease losses $ 9,508,367 $ 8,503,522 (1) Includes direct finance equipment leases of $89.2 million and $54.5 million at December 31, 2019 and 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 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 under 30 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. At December 31, 2019 and 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 ALLL and are therefore excluded from ALLL-related disclosures. Loans and leases receivable: The following tables summarize loans and leases receivable by loan and lease type and performance status as of December 31, 2019 and 2018: December 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 $ 2,133 $ — $ 2,133 $ 4,117 $ 1,901,336 $ 1,688 $ 1,909,274 Commercial and industrial 2,395 — 2,395 4,531 1,882,700 354 1,889,980 Commercial real estate owner occupied 5,388 — 5,388 1,963 537,992 6,664 552,007 Commercial real estate non-owner occupied 8,034 — 8,034 76 1,211,892 3,527 1,223,529 Construction — — — — 118,418 — 118,418 Residential real estate 5,924 — 5,924 6,128 359,491 3,471 375,014 Manufactured housing (5) 3,699 1,794 5,493 1,655 61,649 1,601 70,398 Other consumer 5,756 — 5,756 1,551 1,170,793 183 1,178,283 Total $ 33,329 $ 1,794 $ 35,123 $ 20,021 $ 7,244,271 $ 17,488 $ 7,316,903 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) Certain manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank of $0.1 million and $0.5 million at December 31, 2019 and 2018, respectively, which are used to fund past-due payments when the loan becomes 90 days or more delinquent. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio. As of both December 31, 2019 and 2018, the Bank had $0.2 million, respectively, of residential real estate held in OREO. As of December 31, 2019 and 2018, the Bank had initiated foreclosure proceedings on $0.9 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 years ended December 31, 2019 and 2018, and the loans and leases and ALLL by loan and lease type based on impairment-evaluation method as of December 31, 2019 and 2018 are presented in the tables below. Twelve months ended December 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) (532) (119) — — (297) — (8,101) (9,590) Recoveries 7 1,050 236 — 136 27 — 314 1,770 Provision for loan and lease losses (4,771) 2,893 (1,202) 150 502 (166) 915 25,906 24,227 Ending Balance, $ 6,157 $ 15,556 $ 2,235 $ 6,243 $ 1,262 $ 3,218 $ 1,060 $ 20,648 $ 56,379 As of December 31, 2019 (amounts in thousands) Loans and leases receivable: Individually evaluated for impairment $ 4,117 $ 4,591 $ 1,976 $ 76 $ — $ 9,063 $ 9,898 $ 1,551 $ 31,272 Collectively evaluated for impairment 1,903,469 1,885,035 543,367 1,219,926 118,418 362,480 58,899 1,176,549 7,268,143 Loans acquired with credit deterioration 1,688 354 6,664 3,527 — 3,471 1,601 183 17,488 Total loans and leases receivable $ 1,909,274 $ 1,889,980 $ 552,007 $ 1,223,529 $ 118,418 $ 375,014 $ 70,398 $ 1,178,283 $ 7,316,903 Allowance for loan and lease losses: Individually evaluated for impairment $ — $ 523 $ 83 $ — $ — $ 44 $ 129 $ 73 $ 852 Collectively evaluated for impairment 6,157 14,768 2,113 4,361 1,262 2,923 897 20,420 52,901 Loans acquired with credit deterioration — 265 39 1,882 — 251 34 155 2,626 Total allowance for loan and lease losses $ 6,157 $ 15,556 $ 2,235 $ 6,243 $ 1,262 $ 3,218 $ 1,060 $ 20,648 $ 56,379 Twelve months ended December 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 — (1,722) (747) — — (466) — (1,822) (4,757) Recoveries — 403 326 5 241 76 — 21 1,072 Provision for loan and lease losses (706) 2,546 509 (1,349) (596) 1,115 (35) 4,158 5,642 Ending Balance, $ 11,462 $ 12,145 $ 3,320 $ 6,093 $ 624 $ 3,654 $ 145 $ 2,529 $ 39,972 As of December 31, 2018 (amounts in thousands) 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 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 December 31, 2019 and 2018 and the average recorded investment and interest income recognized for the years ended December 31, 2019, 2018 and 2017, respectively. Customers had no impaired lease receivables as of December 31, 2019 and 2018. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. December 31, 2019 For the Year 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 $ 4,117 $ 4,117 $ — $ 1,223 $ 239 Commercial and industrial 3,084 4,726 — 7,439 1,077 Commercial real estate owner occupied 1,109 1,880 — 1,111 55 Commercial real estate non-owner occupied 76 187 — 97 7 Residential real estate 4,559 4,861 — 2,766 129 Manufactured housing 4,169 4,169 — 5,638 325 Other consumer 140 140 — 4,127 266 With an allowance recorded: Multi-family — — — 231 — Commercial and industrial 1,507 1,507 523 3,723 64 Commercial real estate owner occupied 867 878 83 278 54 Residential real estate 4,504 4,522 44 2,523 119 Manufactured housing 5,729 5,729 129 3,792 253 Other consumer 1,411 1,411 73 584 — Total $ 31,272 $ 34,127 $ 852 $ 33,532 $ 2,588 December 31, 2018 For the Year Ended, For the Year Ended, (amounts in thousands) Recorded investment net of charge-offs Unpaid principal balance Related allowance Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Multi-family $ — $ — $ — $ 537 $ 8 $ — $ — Commercial and industrial 13,660 15,263 — 8,831 673 8,865 214 Commercial real estate owner occupied 1,037 1,766 — 776 19 1,439 70 Commercial real estate non-owner occupied 129 241 — 645 48 898 2 Residential real estate 4,842 5,128 — 4,129 151 4,617 24 Manufactured housing 10,027 10,027 — 10,015 561 10,003 558 Other consumer 111 111 — 89 1 51 — With an allowance recorded: Multi-family 1,155 1,155 539 231 37 — — Commercial and industrial 4,168 4,351 261 6,504 25 5,984 230 Commercial real estate owner occupied 32 32 1 443 3 882 — Residential real estate 3,789 3,789 41 4,566 131 3,307 187 Manufactured housing 168 168 3 214 14 131 8 Total $ 39,118 $ 42,031 $ 845 $ 36,980 $ 1,671 $ 36,177 $ 1,293 Troubled Debt Restructurings At December 31, 2019, 2018 and 2017, there were $13.3 million, $19.2 million and $20.4 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 had no lease receivables that had been restructured as a TDR as of December 31, 2019, 2018 and 2017, respectively. The following table presents total TDRs based on loan type and accrual status at December 31, 2019, 2018 and 2017. Nonaccrual TDRs are included in the reported amount of total non-accrual loans. December 31, 2019 2018 2017 Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total (amounts in thousands) Commercial and industrial $ 60 $ 23 $ 83 $ 64 $ 5,273 $ 5,337 $ 63 $ 5,939 $ 6,002 Commercial real estate owner occupied 13 — 13 32 — 32 — — — Residential real estate 2,935 631 3,566 3,026 667 3,693 3,828 703 4,531 Manufactured housing 8,243 1,382 9,625 8,502 1,620 10,122 8,130 1,766 9,896 Other consumer — 10 10 — 12 12 — — — Total TDRs $ 11,251 $ 2,046 $ 13,297 $ 11,624 $ 7,572 $ 19,196 $ 12,021 $ 8,408 $ 20,429 The following table presents loans modified in a TDR by type of concession for the years ended December 31, 2019, 2018 and 2017. There were no modifications that involved forgiveness of debt for the years ended December 31, 2019, 2018 and 2017. For the Years Ended December 31, 2019 2018 2017 (dollars in thousands) Number of loans Recorded investment Number of loans Recorded investment Number of loans Recorded investment Extensions of maturity 2 $ 514 2 $ 60 5 $ 6,497 Interest-rate reductions 26 923 39 1,615 35 1,574 Total 28 $ 1,437 41 $ 1,675 40 $ 8,071 The following table provides, by loan type, the number of loans modified in TDRs and the related recorded investment for the years ended December 31, 2019, 2018 and 2017. For the Years Ended December 31, 2019 2018 2017 (dollars in thousands) Number of loans Recorded investment Number of loans Recorded investment Number of loans Recorded investment Commercial and industrial 1 $ 431 — $ — 4 $ 6,437 Residential real estate 1 83 2 352 — — Manufactured housing 26 923 38 1,310 36 1,634 Other consumer — — 1 13 — — Total loans 28 $ 1,437 41 $ 1,675 40 $ 8,071 As of December 31, 2019, there were no commitments to lend additional funds to borrowers whose loans have been modified in TDRs. As of December 31, 2018 and 2017, except for one commercial and industrial loan with an outstanding commitment of $1.5 million and $2.1 million, respectively, 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: December 31, 2019 December 31, 2018 December 31, 2017 (dollars in thousands) Number of loans Recorded investment Number of loans Recorded investment Number of loans Recorded investment Residential real estate $ 1 $ 81 $ — $ — $ — $ — Manufactured housing 3 73 4 92 5 211 Total loans 4 $ 154 4 $ 92 5 $ 211 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. During the year ended December 31, 2019, allowances totaling $17 thousand were recorded on fifteen loans that had been modified in TDRs. There were no allowances recorded as a result of TDR modifications during 2018. For the year ended December 31, 2017, there was one allowance resulting from TDR modifications totaling $1 thousand for one manufactured housing loan. Purchased-Credit-Impaired Loans The changes in accretable yield related to PCI loans for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Accretable yield balance, beginning of period $ 6,178 $ 7,825 $ 10,202 Accretion to interest income (1,144) (1,455) (1,673) Reclassification from nonaccretable difference and disposals, net 44 (192) (704) Accretable yield balance, end of period $ 5,078 $ 6,178 $ 7,825 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 December 31, 2019 and 2018. December 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 $ 1,816,200 $ 1,841,074 $ 536,777 $ 1,129,838 $ 118,418 $ — $ — $ — $ 5,442,307 Special Mention 69,637 26,285 8,286 6,949 — — — — 111,157 Substandard 23,437 22,621 6,944 86,742 — — — — 139,744 Performing (1) — — — — — 362,962 63,250 1,170,976 1,597,188 Non-performing (2) — — — — — 12,052 7,148 7,307 26,507 Total $ 1,909,274 $ 1,889,980 $ 552,007 $ 1,223,529 $ 118,418 $ 375,014 $ 70,398 $ 1,178,283 $ 7,316,903 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 assigned internal 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 years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Purchases (1) Residential real estate $ 105,858 $ 368,402 $ 264,090 Other consumer (2) 1,058,261 30,066 — Total $ 1,164,119 $ 398,468 $ 264,090 Sales (3) Multi-family $ — $ (54,638) $ (226,831) Commercial and industrial (4) (22,267) (32,263) (19,974) Commercial real estate owner occupied (4) (16,320) (20,218) (19,813) Residential real estate (230,285) — (191,574) Total $ (268,872) $ (107,119) $ (458,192) (1) Amounts reported represent the unpaid principal balance at time of purchase. The purchase price was 100.3%, 99.9% and 99.4% of loans outstanding for the years ended December 31, 2019, 2018 and 2017, respectively. (2) Other consumer loan purchases for the year ended December 31, 2019 and 2018, consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660. (3) Amounts reported represent the unpaid principal balance at time of sale. For the years ended December 31, 2019, 2018 and 2017, loan sales resulted in net gains of $2.8 million, $3.3 million and $4.2 million, respectively. (4) 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 $4.6 billion and $5.4 billion at December 31, 2019 and 2018, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES Lessee Customers has operating leases for its branches, LPOs, and administrative offices, with remaining lease terms ranging between 4 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers is 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 ROU asset and are recognized in the period in which the obligations 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. Customers does not present ROU assets and corresponding liabilities for operating leases for fiscal years prior to the adoption of this standard. A ROU asset of $23.8 million, net of $1.1 million in accrued rent, and lease liabilities of $24.9 million were recognized with the adoption of ASU 2016-02 on January 1, 2019. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location: (amounts in thousands) Classification December 31, 2019 ASSETS Operating lease ROU assets Other assets $ 20,232 LIABILITIES Operating lease liabilities Other liabilities $ 21,358 The following table summarizes operating lease cost and its corresponding income statement location for the periods presented: (amounts in thousands) Classification Year Ended December 31, 2019 Operating lease cost (1) Occupancy expenses $ 5,823 (1) There were no variable lease costs for the year ended December 31, 2019, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows at December 31, 2019: (amounts in thousands) December 31, 2019 2020 $ 5,539 2021 4,792 2022 4,167 2023 3,174 2024 2,100 Thereafter 2,817 Total minimum payments 22,589 Less: interest 1,231 Present value of lease liabilities $ 21,358 Customers does not have leases where it is involved with the construction or design of an underlying asset. Customers has signed leases that have not yet commenced as of December 31, 2019 with future minimum lease payments of $2.6 million. Cash paid pursuant to operating lease liabilities was $5.9 million for the year ended December 31, 2019, and is reported as cash flows used in operating activities in the statement of cash flows. The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at December 31, 2019: (amounts in thousands) December 31, 2019 Weighted average remaining lease term (years) Operating leases 5.0 years Weighted average discount rate Operating leases 2.90 % Rent expense was approximately $5.8 million and $5.2 million for the years ended December 31, 2018 and 2017, respectively. 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 and leases receivable. The estimated residual values for direct finance and operating leases are established by utilizing internally developed analyses, external studies, and/or third-party appraisals to establish a residual position. 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 and are presented 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 the 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 at December 31, 2019: (amounts in thousands) Classification December 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 91,762 Guaranteed residual assets Loans and leases receivable 7,435 Unguaranteed residual assets Loans and leases receivable 1,260 Deferred initial direct costs Loans and leases receivable 721 Unearned income Loans and leases receivable (11,300) Net investment in direct financing leases $ 89,878 Operating leases Investment in operating leases Other assets $ 107,850 Accumulated depreciation Other assets (14,251) Deferred initial direct costs Other assets 1,052 Net investment in operating leases 94,651 Total lease assets $ 184,529 |
Leases | LEASES Lessee Customers has operating leases for its branches, LPOs, and administrative offices, with remaining lease terms ranging between 4 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers is 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 ROU asset and are recognized in the period in which the obligations 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. Customers does not present ROU assets and corresponding liabilities for operating leases for fiscal years prior to the adoption of this standard. A ROU asset of $23.8 million, net of $1.1 million in accrued rent, and lease liabilities of $24.9 million were recognized with the adoption of ASU 2016-02 on January 1, 2019. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location: (amounts in thousands) Classification December 31, 2019 ASSETS Operating lease ROU assets Other assets $ 20,232 LIABILITIES Operating lease liabilities Other liabilities $ 21,358 The following table summarizes operating lease cost and its corresponding income statement location for the periods presented: (amounts in thousands) Classification Year Ended December 31, 2019 Operating lease cost (1) Occupancy expenses $ 5,823 (1) There were no variable lease costs for the year ended December 31, 2019, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows at December 31, 2019: (amounts in thousands) December 31, 2019 2020 $ 5,539 2021 4,792 2022 4,167 2023 3,174 2024 2,100 Thereafter 2,817 Total minimum payments 22,589 Less: interest 1,231 Present value of lease liabilities $ 21,358 Customers does not have leases where it is involved with the construction or design of an underlying asset. Customers has signed leases that have not yet commenced as of December 31, 2019 with future minimum lease payments of $2.6 million. Cash paid pursuant to operating lease liabilities was $5.9 million for the year ended December 31, 2019, and is reported as cash flows used in operating activities in the statement of cash flows. The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at December 31, 2019: (amounts in thousands) December 31, 2019 Weighted average remaining lease term (years) Operating leases 5.0 years Weighted average discount rate Operating leases 2.90 % Rent expense was approximately $5.8 million and $5.2 million for the years ended December 31, 2018 and 2017, respectively. 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 and leases receivable. The estimated residual values for direct finance and operating leases are established by utilizing internally developed analyses, external studies, and/or third-party appraisals to establish a residual position. 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 and are presented 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 the 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 at December 31, 2019: (amounts in thousands) Classification December 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 91,762 Guaranteed residual assets Loans and leases receivable 7,435 Unguaranteed residual assets Loans and leases receivable 1,260 Deferred initial direct costs Loans and leases receivable 721 Unearned income Loans and leases receivable (11,300) Net investment in direct financing leases $ 89,878 Operating leases Investment in operating leases Other assets $ 107,850 Accumulated depreciation Other assets (14,251) Deferred initial direct costs Other assets 1,052 Net investment in operating leases 94,651 Total lease assets $ 184,529 |
Leases | LEASES Lessee Customers has operating leases for its branches, LPOs, and administrative offices, with remaining lease terms ranging between 4 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers is 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 ROU asset and are recognized in the period in which the obligations 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. Customers does not present ROU assets and corresponding liabilities for operating leases for fiscal years prior to the adoption of this standard. A ROU asset of $23.8 million, net of $1.1 million in accrued rent, and lease liabilities of $24.9 million were recognized with the adoption of ASU 2016-02 on January 1, 2019. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location: (amounts in thousands) Classification December 31, 2019 ASSETS Operating lease ROU assets Other assets $ 20,232 LIABILITIES Operating lease liabilities Other liabilities $ 21,358 The following table summarizes operating lease cost and its corresponding income statement location for the periods presented: (amounts in thousands) Classification Year Ended December 31, 2019 Operating lease cost (1) Occupancy expenses $ 5,823 (1) There were no variable lease costs for the year ended December 31, 2019, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows at December 31, 2019: (amounts in thousands) December 31, 2019 2020 $ 5,539 2021 4,792 2022 4,167 2023 3,174 2024 2,100 Thereafter 2,817 Total minimum payments 22,589 Less: interest 1,231 Present value of lease liabilities $ 21,358 Customers does not have leases where it is involved with the construction or design of an underlying asset. Customers has signed leases that have not yet commenced as of December 31, 2019 with future minimum lease payments of $2.6 million. Cash paid pursuant to operating lease liabilities was $5.9 million for the year ended December 31, 2019, and is reported as cash flows used in operating activities in the statement of cash flows. The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at December 31, 2019: (amounts in thousands) December 31, 2019 Weighted average remaining lease term (years) Operating leases 5.0 years Weighted average discount rate Operating leases 2.90 % Rent expense was approximately $5.8 million and $5.2 million for the years ended December 31, 2018 and 2017, respectively. 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 and leases receivable. The estimated residual values for direct finance and operating leases are established by utilizing internally developed analyses, external studies, and/or third-party appraisals to establish a residual position. 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 and are presented 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 the 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 at December 31, 2019: (amounts in thousands) Classification December 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 91,762 Guaranteed residual assets Loans and leases receivable 7,435 Unguaranteed residual assets Loans and leases receivable 1,260 Deferred initial direct costs Loans and leases receivable 721 Unearned income Loans and leases receivable (11,300) Net investment in direct financing leases $ 89,878 Operating leases Investment in operating leases Other assets $ 107,850 Accumulated depreciation Other assets (14,251) Deferred initial direct costs Other assets 1,052 Net investment in operating leases 94,651 Total lease assets $ 184,529 |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Bank Premises and Equipment | BANK PREMISES AND EQUIPMENT The components of bank premises and equipment as of December 31, 2019 and 2018 were as follows: December 31, (amounts in thousands) Expected Useful Life 2019 2018 Leasehold improvements 3 to 25 years $ 14,218 $ 14,080 Furniture, fixtures and equipment 5 to 10 years 6,333 7,110 IT equipment 3 to 5 years 10,016 8,645 Automobiles 3 to 5 years 492 455 31,059 30,290 Accumulated depreciation and amortization (21,670) (19,227) Total $ 9,389 $ 11,063 Depreciation expense and amortization of leasehold improvements, which are included on the consolidated statements of income in occupancy expenses, were $3.4 million, $2.7 million and $2.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS The components of deposits at December 31, 2019 and 2018 were as follows: December 31, (amounts in thousands) 2019 2018 Demand, non-interest bearing $ 1,343,391 $ 1,122,171 Demand, interest bearing 1,235,292 803,948 Savings, including money market deposit accounts 4,401,719 3,481,936 Time, $100,000 and over 402,161 792,370 Time, other 1,266,373 941,811 Total deposits $ 8,648,936 $ 7,142,236 The scheduled maturities for time deposits at December 31, 2019 were as follows: (amounts in thousands) December 31, 2019 2020 $ 1,467,088 2021 175,994 2022 19,489 2023 2,490 2024 3,473 Total time deposits $ 1,668,534 Time deposits greater than $250,000 totaled $0.2 billion and $0.5 billion at December 31, 2019 and 2018, respectively. Included in the demand, interest bearing balances above were $82.1 million and $5.2 million of brokered demand deposits at December 31, 2019 and 2018, respectively. Included in the savings and MMDA balances above were $0.3 billion and $0.6 billion of brokered money market deposits at December 31, 2019 and 2018, respectively. Also included in time, other balances above were $1.1 billion and $0.8 billion of brokered time deposits, respectively, at December 31, 2019 and 2018. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Short-term debt Short-term debt at December 31, 2019 and 2018 was as follows: December 31, 2019 2018 (dollars in thousands) Amount Rate Amount Rate FHLB advances $ 500,000 2.15 % $ 1,248,070 2.62 % Federal funds purchased 538,000 1.60 % 187,000 2.60 % Total short-term debt $ 1,038,000 $ 1,435,070 The following is a summary of additional information relating to Customers' short-term debt: December 31, (dollars in thousands) 2019 2018 2017 FHLB advances Maximum outstanding at any month end $ 1,190,150 $ 2,622,165 $ 2,283,250 Average balance during the year 793,304 1,526,180 1,415,755 Weighted-average interest rate during the year 2.66 % 2.05 % 1.44 % Federal funds purchased Maximum outstanding at any month end 600,000 195,000 238,000 Average balance during the year 271,400 156,652 163,466 Weighted-average interest rate during the year 2.28 % 1.92 % 1.19 % At December 31, 2019 and 2018, Customers Bank had aggregate availability under federal funds lines totaling $551.0 million and $522.0 million, respectively. Long-term debt FHLB and FRB advances Long-term FHLB and FRB advances at December 31, 2019 and 2018 were as follows: December 31, 2019 2018 (dollars in thousands) Amount Rate Amount Rate FHLB advances $ 350,000 2.36 % $ — — % Total long-term FHLB advances $ 350,000 $ — There were no advances outstanding with the FRB at December 31, 2019 and 2018, respectively. The maximum borrowing capacity with the FHLB and FRB at December 31, 2019 and 2018, was as follows: December 31, (amounts in thousands) 2019 2018 Total maximum borrowing capacity with the FHLB $ 3,445,416 $ 4,146,899 Total maximum borrowing capacity with the FRB 136,842 102,461 Qualifying loans serving as collateral against FHLB and FRB advances 4,496,983 5,221,957 Senior and Subordinated Debt Long-term senior notes and subordinated debt at December 31, 2019 and 2018 were as follows: December 31, (dollars in thousands) 2019 2018 Issued by Ranking Amount Amount Rate Issued Amount Date Issued Maturity Price Customers Bancorp Senior $ 24,432 $ — 4.500 % $ 25,000 September 2019 September 2024 100.000 % Customers Bancorp Senior 99,198 98,911 3.950 % 100,000 June 2017 June 2022 99.775 % Customers Bancorp Senior — 24,960 4.625 % 25,000 June 2014 June 2019 100.000 % Total other borrowings 123,630 123,871 Customers Bancorp Subordinated (1)(2) 72,040 — 5.375 % 74,750 December 2019 December 2034 100.000 % Customers Bank Subordinated (1)(3) 109,075 108,977 6.125 % 110,000 June 2014 June 2029 100.000 % Total subordinated debt $ 181,115 $ 108,977 (1) The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. (2) Customers Bancorp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2029. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Common Stock During 2019, 2018 and 2017, Customers Bancorp did not issue any shares of its common stock other than in connection with share-based compensation programs. In November 2013, Customers Bancorp announced that its Board of Directors had authorized a stock repurchase plan in which it could acquire up to 5% of its current outstanding shares at prices not to exceed a 20% premium over the then current book value. In December 2018, Customers Bancorp announced that its Board of Directors amended the terms of the November 2013 stock repurchase plan to allow purchases to be made at prices not to exceed the book value per share of Customers' common stock measured as of September 30, 2018. In January 2019, Customers repurchased 31,159 shares of its common stock at a weighted average price of $18.35. In December 2018, Customers Bancorp repurchased 719,200 shares of its common stock at a weighted average price of $18.04. There was no stock repurchased during 2017. Customers repurchased all remaining authorized shares pursuant to this program in January 2019. Preferred Stock Customers Bancorp currently has four series of preferred stock outstanding. During 2019, 2018 and 2017, Customers Bancorp did not issue any preferred stock. The table below summarizes Customers' issuances of preferred stock and the dividends paid per share. (amounts in thousands except share and per share data) Shares at December 31, Carrying value at December 31, Contractual Rate in Effect at December 31, 2019 Date at which dividend rate becomes floating and earliest redemption date Floating rate of Three-Month LIBOR Plus: Dividend Paid Per Share in 2019 Fixed-to-floating rate: Issue Date 2019 2018 2019 2018 Series C May 18, 2015 2,300,000 2,300,000 $ 55,569 $ 55,569 7.00 % June 15, 2020 5.300 % $ 1.75 Series D January 29, 2016 1,000,000 1,000,000 24,108 24,108 6.50 % March 15, 2021 5.090 % $ 1.63 Series E April 28, 2016 2,300,000 2,300,000 55,593 55,593 6.45 % June 15, 2021 5.140 % $ 1.61 Series F September 16, 2016 3,400,000 3,400,000 82,201 82,201 6.00 % December 15, 2021 4.762 % $ 1.50 Totals 9,000,000 9,000,000 $ 217,471 $ 217,471 The net proceeds from the preferred stock offerings were used for general corporate purposes, which included working capital and the funding of organic growth at Customers Bank. Dividends on the Series C, Series D, Series E and Series F Preferred Stock are not cumulative. If Customers Bancorp's board of directors or a duly authorized committee of the board does not declare a dividend on the Series C, Series D, Series E and Series F Preferred Stock in respect of a dividend period, then no dividend shall be deemed to have accrued for such dividend period, be payable on the applicable dividend payment date, or be cumulative, and Customers Bancorp will have no obligation to pay any dividend for that dividend period, whether or not the board of directors or a duly authorized committee of the board declares a dividend on the Series C, Series D, Series E, and Series F Preferred Stock for any future dividend period. The Series C, Series D, Series E and Series F Preferred Stock have no stated maturity, are not subject to any mandatory redemption, sinking fund or other similar provisions and will remain outstanding unless redeemed at Customers Bancorp's option. Customers Bancorp may redeem the Series C, Series D, Series E and Series F Preferred Stock at its option, at a redemption price equal to $25.00 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), (i) in whole or in part, from time to time, on any dividend payment date on or after June 15, 2020, for the Series C Preferred Stock, March 15, 2021, for the Series D Preferred Stock, June 15, 2021, for the Series E Preferred Stock and December 15, 2021, for the Series F Preferred Stock and or (ii) in whole but not in part, within 90 days following the occurrence of a regulatory capital treatment event. Any redemption of the Series C, Series D, Series E and Series F Preferred Stock is subject to prior approval of the Federal Reserve Board. The Series C, Series D, Series E and Series F Preferred Stock qualify as Tier 1 capital under regulatory capital guidelines. Except in limited circumstances, the Series C, Series D, Series E and Series F Preferred Stock do not have any voting rights. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS 401(k) Plan Customers has a 401(k) profit sharing plan whereby eligible team members may contribute amounts up to the annual IRS statutory contribution limit. Customers provides a matching contribution equal to 50% of the first 6% of the contribution made by the team member. Employer contributions for the years ended December 31, 2019, 2018 and 2017 were $2.2 million, $2.1 million, and $1.9 million, respectively. Supplemental Executive Retirement Plan Customers entered into a SERP with its Chairman and CEO that provides annual retirement benefits for a 15-year period upon the later of his reaching the age of 65 or when he terminates employment. The SERP is a defined-contribution type of deferred-compensation arrangement that is designed to provide a target annual retirement benefit of $300,000 per year for 15 years starting at age 65, based on an assumed constant rate of return of 7% per year. The level of retirement benefit is not guaranteed by Customers, and the ultimate retirement benefit can be less than or greater than the target. Customers funds its obligations under the SERP with the increase in cash surrender value of a life insurance policy on the life of the Chairman and CEO which it owns. The present value of the amount owed as of December 31, 2019 and 2018 was $5.5 million and $4.3 million, respectively, and was included in other liabilities. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Plans | SHARE-BASED COMPENSATION PLANS Summary During 2019, the shareholders of Customers Bancorp approved the 2019 Plan, during 2010, the shareholders of Customers Bancorp approved the 2010 Plan, and during 2012, the shareholders of Customers Bancorp approved the 2004 Plan. The 2019 Plan was approved by the shareholders of Customers at its 2019 Annual Meeting of Shareholders on May 30, 2019 and allows for the issuance of 1,500,000 shares. The purpose of these plans is to promote the success and enhance the value of Customers Bancorp by linking the personal interests of the members of the Board of Directors, team members, officers and executives of Customers to those of the shareholders of Customers and by providing such individuals with an incentive for outstanding performance in order to generate superior returns to shareholders of Customers. The 2019 Plan, 2010 Plan and 2004 Plan are intended to provide flexibility to Customers in its ability to motivate, attract and retain the services of members of the Board of Directors, team members, officers and executives of Customers. Stock options and restricted stock units normally vest on the third or fifth anniversary of the grant date provided the grantee remains employed by Customers or continues to serve on the Board. With respect to certain stock options granted under the 2010 Plan, vested options shall be exercisable only when Customers' fully diluted tangible book value will have increased by 50% from the date of grant. Share-based awards generally provide for accelerated vesting if there is a change in control (as defined in the Plans). No stock options may be exercisable for more than 10 years from the date of grant. The 2019, 2010 and 2004 Plans are administered by the Compensation Committee of the Board of Directors. The 2019 Plan provides for the grant of options, some or all of which may be structured to qualify as Incentive Stock Options if granted to team members, stock appreciation rights, restricted stock, restricted stock units and unrestricted stock to team members, officers, executives, members of the Board of Directors, consultants, and advisors. The maximum number of shares of common stock which may be issued under the 2019 Plan is 1,500,000 shares. The 2010 Plan provides exclusively for the grant of stock options, some or all of which may be structured to qualify as Incentive Stock Options, to team members, officers and executives. The maximum number of shares of common stock which may be issued under the 2010 Plan is 3,666,667 shares. The 2004 Plan provides for the grant of options, some or all of which may be structured to qualify as Incentive Stock Options if granted to team members, stock appreciation rights, restricted stock, restricted stock units and unrestricted stock to team members, officers, executives and members of the Board of Directors. The maximum number of shares of common stock which may be issued under the 2004 Plan is 2,750,000 shares. On January 1, 2011, Customers initiated a BRRP. This is a restricted stock unit plan. Team members eligible to participate in the BRRP included the CEO and other senior management and highly compensated team members as determined by the Compensation Committee at its sole discretion. Under the BRRP, a participant elected to defer not less than 25%, nor more than 50%, of his or her bonus payable with respect to each year of participation. Shares of common stock having a value equal to the portion of the bonus deferred by a participant were allocated to an annual deferral account, and a matching amount equal to an identical number of shares of common stock was also allocated to the annual deferral account. A participant becomes 100% vested in the annual deferral account on the fifth anniversary date of the initial funding of the account, provided he or she remains continuously employed by Customers from the date of funding to the anniversary date. Customers discontinued the BRRP in 2019, upon receipt of shareholder approval of the 2019 Plan. Vesting is accelerated in the event of involuntary termination other than for cause, retirement at or after age 65, death, termination on account of disability or a change in control of Customers. Participants were first eligible to make elections under the BRRP with respect to their bonuses for 2011, which were payable in first quarter 2012. The BRRP did not provide for a specific number of shares to be reserved; by its terms, the award of restricted stock units under this plan is limited by the amount of cash bonuses paid to the participants in the plan. At December 31, 2019, non-vested restricted stock units outstanding under this plan totaled 190,340. At December 31, 2019, the aggregate number of shares of common stock available for grant under all share-based compensation plans was 2,052,597 shares. Share-based-compensation expense relating to stock options and restricted stock units is recognized on a straight-line basis over the vesting periods of the awards and is a component of salaries and employee benefits expense. Total share-based- compensation expense for 2019, 2018 and 2017 was $8.9 million, $8.6 million and $6.1 million, respectively. At December 31, 2019, there was $16.4 million of unrecognized compensation cost related to all non-vested share-based compensation awards. This cost is expected to be recognized through December 2024. In 2014, the shareholders of Customers Bancorp approved an ESPP. The ESPP is intended to encourage team member participation in the ownership and economic progress of Customers. This plan is intended to qualify as an ESPP within the meaning of the Internal Revenue Code and is administered by the Compensation Committee of the Board of Directors. Under the ESPP, team members may elect to purchase shares of Customers' common stock through payroll deductions. Because the purchase price under the plan is 85% of the fair market value of a share of common stock on the first day of each quarterly subscription period (a 15% discount to the market price), Customers' ESPP is considered to be a compensatory plan under current accounting guidance. Therefore, the entire amount of the discount is recognizable compensation expense. ESPP expense for 2019, 2018 and 2017 was $170 thousand, $141 thousand, and $132 thousand, respectively. Stock Options Customers estimated the fair value of each option on the date of grant generally using the Black-Scholes option pricing model. The risk-free interest rate was based upon the zero-coupon Treasury rates in effect on the grant date of the options based on the expected life of the option. Expected volatility was based upon limited historical information because Customers' common stock has only been traded since February 2012. Expected life was management’s estimate which took into consideration the vesting requirement, generally three five During 2019, options to purchase an aggregate of 577,230 shares of Customers Bancorp voting common stock were granted to certain officers and team members. The exercise price for the options granted was equal to the closing price of Customers Bancorp's voting common stock on the date of grant. The options issued are subject to a three The following table presents the weighted-average assumptions used and the resulting weighted-average fair value of each option granted for the periods presented. 2019 2018 2017 Weighted-average risk-free interest rate 1.69 % 2.87 % 2.35 % Expected dividend yield — % — % — % Weighted-average expected volatility 29.92 % 25.47 % 25.05 % Weighted-average expected life (in years) 7.00 7.00 7.00 Weighted-average fair value of each option granted $ 5.56 $ 10.05 $ 8.68 The following table summarizes stock option activity for the year ended December 31, 2019: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (dollars in thousands, except weighted-average exercise price) Outstanding, December 31, 2018 2,520,526 $ 22.13 Granted 577,230 19.05 Exercised (82,500) 16.79 $ 341 Expired (90,000) 25.19 Forfeited (95,008) 21.19 Outstanding, December 31, 2019 2,830,248 $ 21.59 6.45 $ 9,212 Exercisable at December 31, 2019 766,739 $ 15.52 3.46 $ 6,390 Cash received from the exercise of the stock options during the year ended December 31, 2019 was $1.4 million. The tax liability resulting from option exercises totaled $0.2 million in 2019. A summary of the status of Customers' non-vested options at December 31, 2019, and changes during the year ended December 31, 2019 was as follows: Options Weighted- Average exercise price Non-vested at December 31, 2018 1,671,223 $ 25.10 Granted 577,230 19.05 Vested (89,936) 19.33 Forfeited (95,008) 21.19 Non-vested at December 31, 2019 2,063,509 23.85 Restricted Stock Units The fair value of restricted stock units granted under the 2019 and 2004 Plans is generally determined based on the closing market price of Customers' common stock on the date of grant. The fair value of restricted stock units granted under the BRRP was measured as of the date on which such portion of the bonus would have been paid had the deferral not been elected. Beginning in 2018, the Compensation Committee recommended and the Board of Directors approved a new long-term incentive compensation plan which incorporates performance metrics into the restricted stock awards for certain of Customers' key officers. Specifically, 40% of the restricted stock units granted as long term incentive compensation will vest ratably over three years. The remaining 60% will vest upon Customers meeting certain performance metrics, including total shareholder return, return on average common equity, and average NPAs to total assets over a three-year period relative to the performance of its peer group. The performance conditions are considered probable. There were 177,627 restricted stock units granted during the year ended December 31, 2019. Of the aggregate restricted stock units granted, 5,447 were granted under the BRRP and are subject to five three three The table below presents the status of the restricted stock units at December 31, 2019, and changes during the year ended December 31, 2019: Restricted Stock Units Weighted- Average Grant- Date Fair Value Outstanding and unvested at December 31, 2018 884,659 $ 23.99 Granted 177,627 20.27 Vested (281,905) 23.22 Forfeited (62,700) 23.25 Outstanding and unvested at December 31, 2019 717,681 23.43 Customers has a policy that permits its directors to elect to receive shares of common stock in lieu of their cash retainers. During the year ended December 31, 2019, Customers issued 37,467 shares of common stock with a fair value of $0.8 million to the directors as compensation for their services. The fair values were generally determined based on the closing price of the common stock the day before the shares were issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense were as follows: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Current Federal $ 2,973 $ 4,509 $ 24,258 State 5,304 5,547 5,666 Total current expense 8,277 10,056 29,924 Deferred Federal 13,175 9,702 14,885 State 1,341 (399) 233 Total deferred expense 14,516 9,303 15,118 Income tax expense $ 22,793 $ 19,359 $ 45,042 Effective tax rates differ from the federal statutory rate of 21% at December 31, 2019 and December 31, 2018, and 35% at December 31, 2017, which was applied to income before income tax expense, due to the following: For the Years Ended December 31, 2019 2018 2017 (amounts in thousands) Amount % of pretax income Amount % of pretax income Amount % of pretax income Federal income tax at statutory rate $ 21,445 21.00 % $ 19,121 21.00 % $ 43,357 35.00 % State income tax, net of federal benefit 5,249 5.14 4,067 4.47 3,835 3.10 Tax-exempt interest, net of disallowance (385) (0.38) (360) (0.40) (381) (0.31) Bank-owned life insurance (1,677) (1.64) (1,547) (1.70) (2,675) (2.16) Tax credits (1,266) (1.24) (444) (0.49) — — Equity-based compensation 132 0.13 (547) (0.60) (10,741) (8.67) Non-deductible executive compensation 440 0.43 230 0.25 654 0.53 Unrecorded basis difference in foreign subsidiaries (144) (0.14) 343 0.38 4,527 3.65 Enactment of federal tax reform — — (21) (0.02) 5,505 4.44 Other (1,001) (0.98) (1,483) (1.63) 961 0.78 Effective income tax rate $ 22,793 22.32 % $ 19,359 21.26 % $ 45,042 36.36 % At December 31, 2019 and 2018, Customers had no ASC 740-10 unrecognized tax benefits. Customers does not expect the total amount of unrecognized tax benefits to significantly increase within the next twelve months. Customers recognizes interest and penalties on unrecognized tax benefits in other expense. Deferred income taxes reflect temporary differences in the recognition of revenue and expenses for tax reporting and financial statement purposes, principally because certain items are recognized in different periods for financial reporting and tax return purposes. The following represents Customers' deferred tax asset and liabilities as December 31, 2019 and 2018: December 31, (amounts in thousands) 2019 2018 Deferred tax assets Allowance for loan and lease losses $ 14,616 $ 10,449 Net unrealized losses on securities — 7,639 Net operating losses 1,494 1,212 Compensation and benefits 5,839 6,234 Cash flow hedge 5,557 324 Section 197 intangibles 1,196 923 Deferred income 1,182 640 Lease liability 5,523 — Other 1,307 2,766 Total gross deferred tax assets 36,714 30,187 Less: valuation allowance (486) — Net deferred tax assets 36,228 30,187 Deferred tax liabilities Fair value adjustments on acquisitions (506) (569) Bank premises and equipment (6,074) (884) Tax qualified lease adjustments (30,496) (17,786) Right of use asset (5,232) — Net unrealized gains on securities (5,020) — Other (640) (746) Total deferred tax liabilities (47,968) (19,985) Net deferred tax asset/(liability) $ (11,740) $ 10,202 The net deferred tax liability at December 31, 2019 is recorded in other liabilities and the net deferred tax asset at December 31, 2018 is recorded in other assets. Customers had approximately $4.8 million of federal and state net operating loss carryovers subject to the annual limitation under Internal Revenue code Section 382 at December 31, 2019, that begin to expire in 2027. Customers also has state net operating loss carryovers for some states that begin to expire in 2037. Customers believes it is more likely than not the benefit of these state net operating loss carryovers generated by BankMobile Technologies, Inc. will not be realized. As such, there is a valuation allowance on the deferred tax assets of the jurisdictions in which the net operating losses relate. Customers is subject to U.S. federal income tax as well as income tax in various state and local taxing jurisdictions. Generally, Customers is no longer subject to examination by federal, state, and local taxing authorities for years prior to the year ended December 31, 2016 |
Transactions with Executive Off
Transactions with Executive Officers, Directors, and Principal Shareholders | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Executive Officers, Directors, and Principal Shareholders | TRANSACTIONS WITH EXECUTIVE OFFICERS, DIRECTORS AND PRINCIPAL SHAREHOLDERSCustomers has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal shareholders, their immediate families and affiliated companies (commonly referred to as related parties). The activity relating to loans to such persons was as follows: For the Years Ended December 31, 2019 2018 2017 (amounts in thousands) Balance as of December 31, $ 5 $ — $ 238 Additions 47 27 99 Repayments (52) (22) (337) Balance as of December 31, $ — $ 5 $ — As of December 31, 2019 and 2018, Customers Bank had an outstanding commitment to a related party to provide a letter of credit in the amount of $0.5 million. Some current directors, nominees for director and executive officers of Customers and entities or organizations in which they were executive officers or the equivalent or owners of more than 10% of the equity, were customers of and had transactions with or involving Customers in the ordinary course of business during the fiscal year ended December 31, 2019. None of these transactions involved amounts in excess of 5% of Customers' gross revenues during 2019, nor was Customers indebted to any of the foregoing persons or entities in an aggregate amount in excess of 5% of Customers' total assets at December 31, 2019. Additional transactions with such persons and entities may be expected to take place in the ordinary course of business in the future. At December 31, 2019 and 2018, Customers had approximately $9.8 million and $15.3 million, respectively, in deposits from related parties, including directors and certain executive officers. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK Customers is involved with financial instruments and other commitments with off-balance sheet risks. Financial instruments with off-balance sheet risks are incurred in the normal course of business to meet the financing needs of the Bank's customers. These financial instruments include commitments to extend credit, including unused portions of lines of credit, and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the balance sheet. With commitments to extend credit, exposures to credit loss in the event of non-performance by the other party to the financial instrument is represented by the contractual amount of those instruments. The same credit policies are used in making commitments and conditional obligations as for on-balance sheet instruments. Because they involve credit risk similar to extending a loan and lease, commitments to extend credit are subject to the Bank’s credit policy and other underwriting standards. As of December 31, 2019 and 2018, the following off-balance sheet commitments, financial instruments and other arrangements were outstanding: December 31, (amounts in thousands) 2019 2018 Commitments to fund loans and leases $ 261,902 $ 345,608 Unfunded commitments to fund mortgage warehouse loans 1,378,364 1,537,900 Unfunded commitments under lines of credit and credit cards 1,065,474 867,131 Letters of credit 48,856 55,659 Other unused commitments 2,736 4,822 Commitments to fund loans and leases, unfunded commitments to fund mortgage warehouse loans, unfunded commitments under lines of credit, letters of credit, and credit cards are agreements to extend credit to or for the benefit of a customer in the ordinary course of the Bank's business. Commitments to fund loans and leases and unfunded commitments under lines of credit may be obligations of the Bank as long as there is no violation of any condition established in the contract. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if the Bank deems it necessary upon extension of credit, is based upon management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Mortgage warehouse loan commitments are agreements to fund the pipelines of mortgage banking businesses from closing of individual mortgage loans until their sale into the secondary market. Most of the individual mortgage loans are insured or guaranteed by the U.S. government through one of its programs such as FHA, VA, or are conventional loans eligible for sale to Fannie Mae and Freddie Mac. These commitments generally fluctuate monthly based on changes in interest rates, refinance activity, new home sales and laws and regulation. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 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 Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, and total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At December 31, 2019 and 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 set forth in the following table: Minimum Capital Levels to be Classified as: Actual Adequately Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Common equity Tier 1 (to risk-weighted assets) Customers Bancorp, Inc. $ 821,810 7.984 % $ 463,211 4.500 % N/A N/A $ 720,551 7.000 % Customers Bank $ 1,164,652 11.323 % $ 462,842 4.500 % $ 668,549 6.500 % $ 719,976 7.000 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,039,281 10.096 % $ 617,615 6.000 % N/A N/A $ 874,955 8.500 % Customers Bank $ 1,164,652 11.323 % $ 617,122 6.000 % $ 822,829 8.000 % $ 874,256 8.500 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,256,309 12.205 % $ 823,487 8.000 % N/A N/A $ 1,080,827 10.500 % Customers Bank $ 1,330,155 12.933 % $ 822,829 8.000 % $ 1,028,537 10.000 % $ 1,079,964 10.500 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 1,039,281 9.258 % $ 449,026 4.000 % N/A N/A $ 449,026 4.000 % Customers Bank $ 1,164,652 10.379 % $ 448,851 4.000 % $ 561,064 5.000 % $ 448,851 4.000 % December 31, 2018 Common equity Tier 1 (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 % $ 655,580 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 | 12 Months Ended |
Dec. 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 instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers’ various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (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 inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used to estimate the fair values of Customers’ financial instruments as of December 31, 2019 and 2018: Financial Instruments Recorded at Fair Value on a Recurring Basis Investment securities: The fair values of equity securities, available for sale debt securities and debt securities reported at fair value based on a fair value option election are determined by obtaining quoted market prices on nationally recognized and foreign securities exchanges (Level 1), quoted prices in markets that are not active (Level 2), and 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 internally and 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 - 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 commercial 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 generally expected to be recognized because at inception of the transaction the underlying mortgage 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 under 30 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, interest rate caps 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 Customers' 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. Other real estate owned: The fair value of OREO is determined by using appraisals, which may be discounted based on management’s review and changes in market conditions or sales agreements with third parties. All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice. Appraisals are certified to the Bank and performed by appraisers on the Bank’s approved list of appraisers. Evaluations are completed by a person independent of management. The content of the appraisal depends on the complexity of the property. Appraisals are completed on a “retail value” and an “as is value”. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The estimated fair values of Customers’ financial instruments at December 31, 2019 and 2018 were as follows: Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2019 (amounts in thousands) 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 $ 212,505 $ 212,505 $ 212,505 $ — $ — Debt securities, available for sale 577,198 577,198 — 577,198 — Interest-only GNMA securities 16,272 16,272 — — 16,272 Equity securities 2,406 2,406 2,406 — — Loans held for sale 486,328 486,328 — 2,130 484,198 Total loans and leases receivable, net of allowance for loan and lease losses 9,508,367 9,853,037 — 2,245,758 7,607,279 FHLB, Federal Reserve Bank and other restricted stock 84,214 84,214 — 84,214 — Derivatives 23,608 23,608 — 23,529 79 Liabilities: Deposits $ 8,648,936 $ 8,652,340 $ 6,980,402 $ 1,671,938 $ — Federal funds purchased 538,000 538,000 538,000 — — FHLB advances 850,000 852,162 — 852,162 — Other borrowings 123,630 127,603 — 127,603 — Subordinated debt 181,115 192,217 — 192,217 — Derivatives 45,939 45,939 — 45,939 — Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 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 non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2019 and 2018 were as follows: December 31, 2019 Fair Value Measurements at the End of the Reporting Period Using (amounts in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Measured at Fair Value on a Recurring Basis: Assets Available for sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 278,321 $ — $ 278,321 Corporate notes — 298,877 — 298,877 Interest-only GNMA securities — — 16,272 16,272 Equity securities 2,406 — — 2,406 Derivatives — 23,529 79 23,608 Loans held for sale – fair value option — 2,130 — 2,130 Loans receivable, mortgage warehouse – fair value option — 2,245,758 — 2,245,758 Total assets – recurring fair value measurements $ 2,406 $ 2,848,615 $ 16,351 $ 2,867,372 Liabilities Derivatives $ — $ 45,939 $ — $ 45,939 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $852 $ — $ — $ 14,272 $ 14,272 Other real estate owned — — 78 78 Total assets – nonrecurring fair value measurements $ — $ — $ 14,350 $ 14,350 December 31, 2018 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available for sale 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 specific 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 residential mortgage loan commitments (Level 3 assets) measured at fair value on a recurring basis for the years ended December 31, 2019 and 2018 are summarized as follows in the tables below. Additional information about residential mortgage loan commitments can be found in NOTE 20 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. Residential Mortgage Loan Commitments For the Years Ended December 31, (amounts in thousands) 2019 2018 Balance at December 31, $ 69 $ 60 Issuances 451 407 Settlements (441) (398) Balance at December 31, $ 79 $ 69 There were no transfers between levels during the years ended December 31, 2019 and 2018. The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2019 and 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. The interest-only GNMA securities are Level 3 assets measured at fair value on a recurring basis under a fair value option election. For the year ended December 31, 2019, Customers recorded an increase in fair value of $0.6 million on the interest-only GNMA securities in unrealized gains on investment securities in the consolidated statements of operations. For the year ended December 31, 2019, cash settlements of $1.5 million were applied to the carrying value of the interest-only GNMA securities, net of premium amortization expense. At December 31, 2019, Customers used an internally developed discounted cash flow model to value the interest-only GNMA securities. The significant unobservable input used in the discounted cash flow model included prepayment speed. Significant increases (decreases) in this input would result in a significantly lower (higher) fair value measurement. Quantitative Information about Level 3 Fair Value Measurements December 31, 2019 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (4) (dollars in thousands) Impaired loans – real estate $ 12,767 Collateral appraisal (1) Business asset valuation (3) Liquidation expenses (2) Business asset valuation adjustments (4) 8% - 10% (8%) 34% - 45% (37%) Impaired loans – commercial & industrial 1,505 Collateral appraisal (1) Business asset valuation (3) Liquidation expenses (2) Business asset valuation adjustments (4) 8% - 8% (8%) 8% - 50% (22%) Interest-only GNMA securities 16,272 Discounted cash flow Constant prepayment rate 9% - 14% (12%) Other real estate owned 78 Collateral appraisal (1) Liquidation expenses (2) 8% - 9% (9%) Residential mortgage loan commitments 79 Adjusted market bid Pull-through rate 85% - 85% (85%) (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) Business asset valuations may be adjusted by management for qualitative factors including economic conditions and the condition of the business assets. The range and weighted average of the business asset adjustments are presented as a percent of the business asset valuation. Quantitative Information about Level 3 Fair Value Measurements December 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (4) (dollars in thousands) Impaired loans – real estate $ 10,260 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% (8%) Impaired loans – commercial & industrial 616 Business asset valuation (3) Business asset valuation adjustments (4) 8% - 50% (26%) Other real estate owned 621 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% (8%) Residential mortgage loan commitments 69 Adjusted market bid Pull-through rate 90% - 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) Business asset valuations may be adjusted by management for qualitative factors including economic conditions and the condition of the business assets. The range and weighted average of the business asset adjustments are presented as a percent of the business asset valuation. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 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 values of which are determined by interest rates. Customers’ derivative financial instruments are used to manage differences in the amount, timing and duration of Customers’ known or expected cash receipts and its known or expected cash payments principally related to certain borrowings and deposits. 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 are recorded in accumulated other comprehensive income (loss) and subsequently reclassified into earnings in the period that the hedged item affects earnings. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuances of debt and a certain variable-rate deposit relationship. 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 accumulated other comprehensive income (loss) are reclassified immediately into earnings and any subsequent changes in the fair value of such derivatives are recognized directly in earnings. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on Customers’ variable-rate debt and a variable-rate deposit relationship. Customers expects to reclassify $6.2 million of losses from accumulated other comprehensive income (loss) 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) and a variable rate deposit relationship over a maximum period of 54 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). At December 31, 2019, Customers had four outstanding interest rate derivatives with notional amounts totaling $725.0 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 expire between June 2021 and July 2024. Derivatives Not Designated as Hedging Instruments Customers executes interest rate swaps (typically the loan customers will swap a floating-rate loan for a fixed-rate loan) and interest rate caps with commercial banking customers to facilitate their respective risk management strategies. The customer interest rate swaps and interest rate caps are simultaneously offset by interest rate swaps and interest rate caps that Customers executes with a third party in order to minimize interest-rate risk exposure resulting from such transactions. As the interest rate swaps and interest rate caps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and caps and the offsetting third-party market swaps and caps are recognized directly in earnings. At December 31, 2019, Customers had 140 interest rate swaps with an aggregate notional amount of $1.4 billion and four interest rate caps with an aggregate notional amount of $78.6 million related to this program. At December 31, 2018, Customers had 98 interest rate swaps with an aggregate notional amount of $1.0 billion related to this program. At December 31, 2018, there were no interest rate caps related to this program. Customers enters into residential mortgage loan commitments in connection with its consumer mortgage banking activities to fund mortgage loans at specified rates and times in the future. These commitments are short-term in nature and generally expire in 30 to 60 days. The residential mortgage loan commitments that relate to the origination of mortgage loans that will be held for sale are considered derivative instruments under applicable accounting guidance and are reported at fair value, with changes in fair value recorded directly in earnings. At December 31, 2019 and 2018, Customers had an outstanding notional balance of residential mortgage loan commitments of $4.5 million and $3.6 million, respectively. Customers has also purchased and sold credit derivatives to either hedge or participate in the performance risk associated with some of its counterparties. These derivatives are not designated as hedging instruments and are reported at fair value, with changes in fair value reported directly in earnings. At December 31, 2019 and 2018, Customers had outstanding notional balances of credit derivatives of $167.1 million and $94.9 million, respectively. Fair Value of Derivative Instruments on the Balance Sheet The following table presents the fair value of Customers’ derivative financial instruments as well as their presentation on the consolidated balance sheets at December 31, 2019 and 2018. December 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 $ — Other liabilities $ 21,374 Total $ — $ 21,374 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 23,301 Other liabilities $ 24,797 Interest rate caps Other assets 9 Other liabilities 9 Credit contracts Other assets 219 Other liabilities (241) Residential mortgage loan commitments Other assets 79 Other liabilities — Total $ 23,608 $ 24,565 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 Net Income The following table presents amounts included in the consolidated statements of income related to derivatives not designated as hedges for the years ended December 31, 2019, 2018 and 2017. Amount of Income Recognized in Earnings For the Years Ended December 31, (amounts in thousands) Income Statement Location 2019 2018 2017 Derivatives not designated as hedging instruments: Interest rate swaps (1) Other non-interest income $ 2,549 $ 3,409 $ 604 Interest rate caps Other non-interest income 24 — — Credit contracts Other non-interest income 589 127 171 Residential mortgage loan commitments Mortgage banking income 10 9 15 Total $ 3,172 $ 3,545 $ 790 (1) Includes income recognized from discontinued cash flow hedges for the year ended December 31, 2018. Effect of Derivative Instruments on Comprehensive Income The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the years ended December 31, 2019, 2018 and 2017. For the Year Ended December 31, 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 (amounts in thousands) 2019 2018 2017 2019 2018 2017 Derivatives in cash flow hedging relationships: Interest rate swaps $ (15,656) $ 1,477 $ 406 Interest expense $ (1,407) $ 95 $ (2,634) Other non-interest income (2) — 2,822 — $ (1,407) $ 2,917 $ (2,634) (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. (2) Includes income recognized from discontinued cash flow hedges. Credit-risk-related Contingent Features By entering into derivative contracts, Customers is exposed to credit risk. The credit risk associated with derivatives executed with customers is the same as that involved in extending the related loans and is subject to the same standard credit policies. To mitigate the credit-risk exposure to major derivative dealer counterparties, Customers only enters into agreements with those counterparties that maintain credit ratings of high quality. Agreements with major derivative dealer counterparties contain provisions whereby default on any of Customers' indebtedness would be considered a default on its derivative obligations. Customers also has entered into agreements that contain provisions under which the counterparty could require Customers to settle its obligations if Customers fails to maintain its status as a well/adequately capitalized institution. As of December 31, 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 $46.4 million. In addition, Customers, which has collateral posting thresholds with certain of these counterparties and at December 31, 2019 had posted $45.7 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 and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps and interest rate caps 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. Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Gross Amounts Recognized on the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/(Posted) Net Amount December 31, 2019 Interest rate derivative assets with institutional counterparties $ 432 $ — $ — $ 432 Interest rate derivative liabilities with institutional counterparties $ 45,727 $ — $ (45,727) $ — Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Gross Amounts Recognized on the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/(Posted) Net Amount December 31, 2018 Interest rate derivative assets with institutional counterparties $ 7,529 $ — $ 1,860 $ 5,669 Interest rate derivative liabilities with institutional counterparties $ 9,077 $ — $ (702) $ 8,375 |
Loss Contingencies
Loss Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingencies | LOSS CONTINGENCIES Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the consolidated financial statements that are not currently accrued for. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution may have a material adverse effect on Customers’ results of operations for a particular period, and future changes in circumstances or additional information could result in accruals or resolution in excess of established accruals, which could adversely affect Customers’ results of operations, potentially materially. 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 alleged that Customers Bank, and the other named defendants, conspired to misuse the legal system for improper purposes and it also alleged 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 Plaintiffs' 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. On December 12, 2019, Customers and the Plaintiffs entered into an agreement to settle the matter for $1.0 million and Customers paid the settlement amount, which had been accrued for in third quarter 2019. On December 17, 2019 the Plaintiffs filed an Order to Mark the Action Settled, Discontinued and Ended. 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 Plaintiffs' 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 Plaintiffs' 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 reasonably 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 part ner institutions. Customers disagrees with the FPRD and has elected to appeal the FPRD, including the asserted financial liabilities of $6.5 million, and a request for review has been submitted to trigger an administrative process before the DOE’s Office of Hearing and Appeals. Customers intends to vigorously defend itself against the financial liabilities established in the FPRD through that administrative appeals process and it further intends to pursue resolution of the FPRD’s prospective action requirements during the appeals resolution process. Based on preliminary discussions with the DOE and further analysis performed by Customers and certain partner institutions, Customers has estimated the range of possible loss to be $1.0 million to $3.0 million as of December 31, 2019. Customers recorded a liability in the amount of $1.0 million during third quarter 2019, as no amount within the range is more likely than any other amount in the range. Bureau of the Fiscal Service Notice of Direct Debit (U.S. Treasury Check Reclamation) |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The following tables present the condensed financial statements for Customers Bancorp, Inc. (parent company only) as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017. Balance Sheets December 31, (amounts in thousands) 2019 2018 Assets Cash in subsidiary bank $ 62,643 $ 16,684 Investments in and receivables due from bank subsidiary 1,178,166 1,059,671 Investments in and receivables due from non-bank subsidiaries 2,406 1,718 Other assets 6,583 3,417 Total assets $ 1,249,798 $ 1,081,490 Liabilities and Shareholders' equity Borrowings $ 195,670 $ 123,871 Other liabilities 1,333 803 Total liabilities 197,003 124,674 Shareholders' equity 1,052,795 956,816 Total Liabilities and Shareholders' Equity $ 1,249,798 $ 1,081,490 Income and Comprehensive Income Statements For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Operating income: Other, including dividends from bank subsidiary $ 70,000 $ 45,422 $ 38,200 Total operating income 70,000 45,422 38,200 Operating expense: Interest 5,425 8,178 7,984 Other 744 1,722 1,742 Total operating expense 6,169 9,900 9,726 Income before taxes and undistributed income of subsidiaries 63,831 35,522 28,474 Income tax benefit 1,391 2,335 3,620 Income before undistributed income of subsidiaries 65,222 37,857 32,094 Equity in undistributed income of subsidiaries 14,105 33,838 46,743 Net income 79,327 71,695 78,837 Preferred stock dividends 14,459 14,459 14,459 Net income available to common shareholders 64,868 57,236 64,378 Comprehensive income $ 100,740 $ 50,730 $ 83,370 One of the principal sources of the Bancorp's liquidity is the dividends it receives from the Bank, which may be impacted by the following: bank-level capital needs, laws and regulations, corporate policies, contractual restrictions and other factors. There are statutory and regulatory limitations on the ability of the Bank to pay dividends or make other capital distributions or to extend credit to the Bancorp or its non-bank subsidiaries. Statements of Cash Flows For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Cash Flows from Operating Activities Net income $ 79,327 $ 71,695 $ 78,837 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiaries, net of dividends received from Bank (14,105) (33,838) (46,743) (Increase) decrease in other assets (3,166) (256) 7,624 Increase (decrease) in other liabilities 1,775 (251) (1,322) Net Cash Provided By (Used in) Operating Activities 63,831 37,350 38,396 Cash Flows from Investing Activities Payments for investments in and advances to subsidiaries (74,767) (29) (98,725) Net Cash Used in Investing Activities (74,767) (29) (98,725) Cash Flows from Financing Activities Proceeds from issuance of common stock 2,150 3,585 2,716 Proceeds from issuance of subordinated long-term debt 72,030 — — Proceed from issuance of other long-term borrowings 24,477 — 98,564 Repayments of other borrowings (25,000) (63,250) — Exercise and redemption of warrants — 112 1,059 Purchase of treasury stock (571) (12,976) — Payments of employee taxes withheld from share-based awards (1,732) (880) (14,761) Preferred stock dividends paid (14,459) (14,459) (14,459) Net Cash Provided by (Used in) Financing Activities 56,895 (87,868) 73,119 Net Increase (Decrease) in Cash and Cash Equivalents 45,959 (50,547) 12,790 Cash and Cash Equivalents - Beginning 16,684 67,231 54,441 Cash and Cash Equivalents - Ending $ 62,643 $ 16,684 $ 67,231 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following table presents selected quarterly data for the years ended December 31, 2019 and 2018. 2019 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 123,995 $ 126,718 $ 111,950 $ 101,075 Interest expense 46,402 50,983 47,271 41,771 Net interest income 77,593 75,735 64,679 59,304 Provision for loan and lease losses 9,689 4,426 5,346 4,767 Non-interest income (1) 25,813 23,369 12,036 19,718 Non-interest expenses 58,740 59,592 59,582 53,984 Income before income taxes 34,977 35,086 11,787 20,271 Provision for income taxes 7,451 8,020 2,491 4,831 Net income 27,526 27,066 9,296 15,440 Preferred stock dividends 3,615 3,615 3,615 3,615 Net income available to common shareholders $ 23,911 $ 23,451 $ 5,681 $ 11,825 Earnings per common share: Basic earnings per common share $ 0.76 $ 0.75 $ 0.18 $ 0.38 Diluted earnings per common share $ 0.75 $ 0.74 $ 0.18 $ 0.38 (1) The quarter ended June 30, 2019 included a $7.5 million loss due to a shortfall in the fair value of interest-only GNMA securities acquired from a commercial mortgage warehouse customer. 2018 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 103,303 $ 110,045 $ 107,639 $ 96,964 Interest expense 41,779 46,044 40,317 31,933 Net interest income 61,524 64,001 67,322 65,031 Provision for loan and lease losses 1,385 2,924 (784) 2,117 Non-interest income (2) 19,877 2,084 16,127 20,910 Non-interest expenses 57,045 57,104 53,750 52,280 Income before income taxes 22,971 6,057 30,483 31,544 Provision for income taxes 5,109 28 6,820 7,402 Net income 17,862 6,029 23,663 24,142 Preferred stock dividends 3,615 3,615 3,615 3,615 Net income available to common shareholders $ 14,247 $ 2,414 $ 20,048 $ 20,527 Earnings per common share: Basic earnings per common share $ 0.45 $ 0.08 $ 0.64 $ 0.65 Diluted earnings per common share $ 0.44 $ 0.07 $ 0.62 $ 0.64 (2) The quarter ended September 30, 2018 included an $18.7 million loss on sale of investment securities. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 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 fintech 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 interest income on other consumer loans, interchange and card revenue, deposit and wire transfer fees and university fees. The majority of 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 partner. The following tables present the operating results for Customers' reportable business segments for the years ended December 31, 2019, 2018 and 2017. 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 22.55%, 24.56% and 37.67% for the years ended December 31, 2019, 2018 and 2017, respectively. For the Year Ended December 31, 2019 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 422,094 $ 41,645 $ 463,739 Interest expense 185,513 916 186,429 Net interest income 236,581 40,729 277,310 Provision for loan and lease losses 10,091 14,136 24,227 Non-interest income 35,268 45,670 80,938 Non-interest expense 153,333 78,568 231,901 Income (loss) before income tax expense (benefit) 108,425 (6,305) 102,120 Income tax expense (benefit) 24,215 (1,422) 22,793 Net income (loss) 84,210 (4,883) 79,327 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 69,751 $ (4,883) $ 64,868 As of December 31, 2019 Goodwill and other intangibles $ 3,629 $ 11,566 $ 15,195 Total assets (2) $ 10,990,550 $ 530,167 $ 11,520,717 Total deposits $ 8,247,836 $ 401,100 $ 8,648,936 Total non-deposit liabilities (2) $ 1,789,329 $ 29,657 $ 1,818,986 For the Year Ended December 31, 2018 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 400,948 $ 17,003 $ 417,951 Interest expense 159,674 400 160,074 Net interest income 241,274 16,603 257,877 Provision for loan and lease losses 2,928 2,714 5,642 Non-interest income 17,499 41,499 58,998 Non-interest expense 146,946 73,233 220,179 Income (loss) before income tax expense (benefit) 108,899 (17,845) 91,054 Income tax expense (benefit) 23,742 (4,383) 19,359 Net income (loss) 85,157 (13,462) 71,695 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 70,698 $ (13,462) $ 57,236 As of December 31, 2018 Goodwill and other intangibles $ 3,629 $ 12,870 $ 16,499 Total assets (2) $ 9,688,146 $ 145,279 $ 9,833,425 Total deposits $ 6,766,378 $ 375,858 $ 7,142,236 Total non-deposit liabilities (2) $ 1,719,225 $ 15,148 $ 1,734,373 (1) Amounts reported include funds transfer pricing of $8.8 million and $15.7 million for the years ended December 31, 2019 and 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no-cost deposits. (2) Amounts reported exclude inter-segment receivables/payables. For the Year Ended December 31, 2017 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 359,931 $ 12,919 $ 372,850 Interest expense 105,438 69 105,507 Net interest income 254,493 12,850 267,343 Provision for loan and lease losses 5,638 1,130 6,768 Non-interest income 24,788 54,122 78,910 Non-interest expense 128,604 87,002 215,606 Income (loss) before income tax expense (benefit) 145,039 (21,160) 123,879 Income tax expense (benefit) 53,013 (7,971) 45,042 Net income (loss) 92,026 (13,189) 78,837 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 77,567 $ (13,189) $ 64,378 As of December 31, 2017 Goodwill and other intangibles $ 3,630 $ 12,665 $ 16,295 Total assets (2) $ 9,769,996 $ 69,559 $ 9,839,555 Total deposits $ 6,400,310 $ 399,832 $ 6,800,142 Total non-deposit liabilities (2) $ 2,106,919 $ 11,530 $ 2,118,449 (1) Amounts reported include funds transfer pricing of $12.9 million for the year ended December 31, 2017, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no-cost deposits. (2) Amounts reported exclude inter-segment receivables/payables. |
Non-Interest Revenues
Non-Interest Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Non-Interest Revenues | NON-INTEREST REVENUES Customers' revenue from contracts with customers within the 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 years ended December 31, 2019, 2018, and 2017: For the Year Ended December 31, 2019 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 781 $ 28,160 $ 28,941 Deposit fees 1,742 11,073 12,815 University fees - card and disbursement fees — 1,008 1,008 Total revenue recognized at point in time 2,523 40,241 42,764 Revenue recognized over time: University fees - subscription revenue — 3,956 3,956 Total revenue recognized over time — 3,956 3,956 Total revenue from contracts with customers $ 2,523 $ 44,197 $ 46,720 |
Significant Accounting Polici_2
Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC. The accounting and reporting policies of Customers Bancorp and subsidiaries are in conformity with U.S. GAAP and predominant practices of the banking industry. The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The ALLL and the valuation of the interest-only GNMA securities are material estimates that are particularly susceptible to significant change in the near-term. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Customers Bancorp and its wholly owned subsidiaries, including Customers Bank, CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd., as well as Customers Bank's wholly owned subsidiaries, BankMobile Technologies, Inc., Customers Commercial Finance, LLC and Devon Service PA LLC. All intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents and Statements of Cash Flows | Cash and Cash Equivalents and Statements of Cash Flows Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits with banks with a maturity date of three months or less and are recorded at cost. The carrying value of cash and cash equivalents is a reasonable estimate of its approximate fair value. Changes in the balances of cash and cash equivalents are reported on the consolidated statements of cash flows. Cash receipts from the repayment or sale of loans are classified within the statement of cash flows based on management's original intent upon origination of the loan, as prescribed by accounting guidance related to the statement of cash flows. Commercial mortgage warehouse loans are classified as held for investment and presented at "Loans receivable, mortgage warehouse, at fair value" on the consolidated balance sheets and the cash flow activities associated with these commercial mortgage warehouse lending activities are reported as investing activities on the consolidated statements of cash flows. |
Restrictions on Cash and Amounts due from Banks | Restrictions on Cash and Amounts due from BanksThe Bank is required to maintain average balances at a certain level of cash and amounts on deposit with the Federal Reserve Bank. |
Business Combinations | Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with ASC 805, Business Combinations . Under the acquisition method, identifiable assets acquired and liabilities assumed are measured at their fair values as of the date of acquisition and are recognized separately from goodwill. The results of operations of the acquired entity are included in the consolidated statement of income from the date of acquisition. Customers recognizes goodwill when the acquisition price exceeds the estimated fair value of the net assets acquired. |
Investment Securities | Investment Securities Customers acquires securities, largely agency-guaranteed mortgage-backed securities and corporate notes, to effectively utilize cash and capital and to generate earnings. Security transactions are recorded as of the trade date. Debt securities are classified at the time of acquisition as available for sale, HTM or trading, and their classification determines the accounting as follows: Available for sale : Investment securities classified as available for sale are those debt securities that Customers intends to hold for an indefinite period of time but not necessarily to maturity. Investment securities available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in AOCI, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings and recorded on the trade date. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Interest-only GNMA securities : On June 28, 2019, Customers obtained ownership of certain interest-only GNMA securities that served as the primary collateral for loans made to one commercial mortgage warehouse customer through a Uniform Commercial Code private sale transaction, as further described in NOTE 5 – INVESTMENT SECURITIES. Upon acquisition, Customers elected the fair value option for these interest-only GNMA securities, with changes in fair value reported as unrealized gain (loss) on investment securities within non-interest income. The fair value of these securities at December 31, 2019 was $16.3 million. Held to maturity : Investment securities classified as HTM are those debt securities that Customers has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premiums and accretion of discounts, computed by a method which approximates the interest method over the terms of the securities. There were no securities classified as HTM as of December 31, 2019 and 2018. Equity securities: Equity securities are carried at their fair value, with changes in fair value reported in other non-interest income beginning in 2018. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments. For years ended December 31, 2017 and prior, equity securities were classified as available for sale and carried at fair value, with unrealized gains or losses reported as increases or decreases in AOCI, net of the related deferred tax effect. For available for sale and HTM debt securities, management periodically assesses whether the securities are OTTI. OTTI means that management believes a security’s decline in fair value below its amortized cost basis is due to factors that could include the issuer’s inability to pay interest or dividends, its potential for default and/or other factors. When a HTM or available for sale debt security is assessed for OTTI, management has to first consider (a) whether Customers intends to sell the security, and (b) whether it is more likely than not that Customers will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an OTTI loss is recognized in the consolidated statements of income equal to the full amount of the decline in fair value below the amortized cost basis. If neither of these circumstances applies to a security, but Customers does not expect to recover the entire amortized cost basis, an OTTI has occurred that must be separated into two categories for debt securities: (a) the amount related to a credit loss and (b) the amount related to other factors. In determining the amount of OTTI attributable to credit loss, management compares the present value of cash flows expected to be collected to the amortized cost basis of the security. The portion of the total OTTI attributed to a credit loss is recognized in earnings (as the difference between the fair value and the present value of the estimated cash flows expected to be collected), while the amount related to all other factors is recognized in AOCI. The total OTTI loss is presented in the statement of income, less the portion recognized in AOCI. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. On January 1, 2018, Customers adopted the new accounting standard for financial instruments, which requires equity securities to be measured at fair value, except those accounted for under the equity method of accounting, with changes in fair value recognized in earnings in the period in which they occur and will no longer be deferred in AOCI. The adoption of this guidance resulted in a $1.0 million increase to beginning retained earnings and a $1.0 million decrease to beginning AOCI. |
Loan Accounting Framework | Loan Accounting Framewor k The accounting for a loan depends on management’s strategy for the loan and on whether the loan was credit impaired at the date of acquisition. The Bank accounts for loans based on the following categories: • Loans held for sale, • Loans at fair value, • Loans receivable and • Purchased loans. The discussion that follows describes the accounting for loans in these categories. |
Loans Held for Sale and Loans at Fair Value | Loans Held for Sale and Loans at Fair Value Loans originated or purchased by Customers with the intent to sell them in the secondary market are carried either at the lower of cost or fair value, determined in the aggregate, or at fair value, depending upon an election made at the time the loan is originated or purchased. These loans are generally sold on a non-recourse basis with servicing released. Gains and losses on the sale of loans accounted for at the lower of cost or fair value are recognized in earnings based on the difference between the proceeds received and the carrying amount of the loans, inclusive of deferred origination fees and costs, if any. As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or purchased with the intent to sell may subsequently be designated as held for sale. These loans are transferred to the held-for-sale portfolio at the lower of amortized cost or fair value. When the amortized cost of the loan exceeds its fair value at the date of transfer to the held-for-sale portfolio, the excess will be recognized as a charge against the ALLL to the extent the loan's reduction in fair value has already been provided for in the ALLL. Any subsequent lower of cost or fair value adjustments are recognized as a valuation allowance with charges recognized in non-interest income. Loans originated or purchased by Customers with the intent to sell them for which fair value accounting is elected are reported at fair value, with changes in fair value recognized in earnings in the period in which they occur. Upon sale, any difference between the proceeds received and the carrying amount of the loan is recognized in earnings. No fees or costs related to such loans are deferred, so they do not affect the gain or loss calculation at the time of sale. An ALLL is not maintained on loans designated as held for sale or reported at fair value. |
Loans Receivable - Mortgage Warehouse, at Fair Value | Loans Receivable - Mortgage Warehouse, at Fair Value Certain mortgage warehouse lending transactions subject to master repurchase agreements are reported at fair value based on an election made to account for the loans at fair value. Pursuant to these agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded loans and receives proceeds directly from third party investors when the loans are sold into the secondary market. Commercial mortgage warehouse loans are classified as held for investment and presented as "Loans receivable, mortgage warehouse, at fair value" on the consolidated balance sheets. An ALLL is not maintained on loans reported at fair value. |
Loans and Leases Receivable | Loans and Leases Receivable Loans and leases receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances, net of an ALLL and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan and lease origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment to the yield (interest income) of the related loans and leases using the level-yield method without anticipating prepayments. Customers is amortizing these amounts over the contractual life of the loans and leases. |
Purchased Loans | Loans Customers believes that the varying circumstances under which it purchaes loans and the diverse credit quality of loans purchased should drive the decision as to whether loans in a portfolio should be deemed to be PCI loans. Therefore, loan purchases are evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans purchased that do not have evidence of credit deterioration at the purchase date are accounted for in accordance with ASC 310-10, and loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans that are purchased that do not have evidence of credit deterioration Purchased performing loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized or accreted as an adjustment to yield over the estimated contractual lives of the loans. There is no ALLL established at the purchase date for purchased performing loans. An ALLL is recorded for any credit deterioration in these loans subsequent to the purchase. Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected For these types of loan purchases, evidence of deteriorated credit quality may include past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages. The fair value of loans with evidence of credit deterioration is recorded net of a nonaccretable difference and accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference that is not included in the carrying amount of acquired loans. Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities and other factors that are reflective of current market conditions. Subsequent decreases in expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows will result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows. PCI loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have similar risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. On a quarterly basis, Customers re-estimates the total cash flows (both principal and interest) expected to be collected over the remaining life of each pool. These estimates incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that reflect the then-current market conditions. If the timing and/or amounts of expected cash flows on PCI loans are determined not to be reasonably estimable, no interest is accreted, and the loans are reported as non-accrual loans; however, when the timing and amounts of expected cash flows for PCI loans are reasonably estimable, interest is accreted, and the loans are reported as performing loans. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The ALLL is Management's estimate of the probable losses inherent in the loan portfolio as of the balance sheet date and are recognized through provisions for loan and lease losses. Loans and leases deemed to be uncollectible are charged against the ALLL, and subsequent recoveries, if any, are credited to the ALLL. The ALLL is maintained at a level considered appropriate to absorb probable incurred loan and lease losses inherent in the loan and lease portfolio as of the reporting date. Customers segments its loan and lease portfolio into groups of loans with similar risk characteristics for purposes of estimating the ALLL. Customers' loan and lease groups include multi-family, commercial and industrial, owner and non-owner occupied commercial real estate, construction, residential real estate, manufactured housing, other consumer and PCI loans. SBA loans are further segmented. Customers also further segments its residential real estate portfolio into two classes based upon certain risk characteristics: first-mortgage loans and home equity loans and lines of credit. The remaining loan groups are also considered classes for purposes of monitoring and assessing credit quality based on certain risk characteristics. Additionally, within each loan group the acquired loans that are accounted for under ASC 310-10 are further segmented. The total ALLL consists of an allowance for impaired loans, a general allowance for losses and may also include residual non-specific reserve amounts. Management performs a quarterly assessment of the adequacy of the ALLL, which is based on Customers' past loan and lease loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan and lease portfolio, current economic conditions, peer and industry data and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Customers' current methodology for determining the ALLL is based on historical loss rates, peer and industry data, current economic conditions, risk ratings, allowances on loans and leases identified as impaired and other qualitative adjustments as considered appropriate. The impaired-loan and lease component of the ALLL generally relates to loans and leases for which it is probable that Customers will be unable to collect all amounts due according to the contractual terms of the loan and lease agreements. Customers analyzes certain loans and leases in its portfolio for impairment in accordance with ASC 310-10-35. Customers' impaired loans and leases generally include loans and leases that have been (i) placed on non-accrual, (ii) restructured in a TDR, regardless of their payment status and (iii) charged-off to their net realizable value. For such loans and leases, an allowance is established when the (i) discounted cash flows, (ii) collateral value or (iii) the impaired loan or lease estimated fair value is lower than the carrying value of the loan or lease. The general component of the ALLL covers groups of loans and leases by loan and lease class, including commercial loans and leases not considered impaired, as well as smaller balance homogeneous loans, such as other consumer loans, residential real estate, home equity loans, and home equity lines of credit. These pools of loans and leases are evaluated for loss exposure based upon industry, peer or Customers' historical loss rates for each of these groups of loans and leases. After determining the appropriate historical loss rate for each group of loans and leases, management considers current qualitative or environmental factors that are likely to cause estimated credit losses as of the evaluation date to differ from the historical loss experience. The overall effect of these factors is recorded as an adjustment that, as appropriate, increases or decreases the historical loss rate applied to the loan group. The qualitative factors that management generally considers include the following: • National, regional and local economic and business conditions, including review of changes in the unemployment rate; • Volume and severity of past-due loans, non-accrual loans and classified loans; • Lending policies and procedures, including underwriting standards and historically based loss/collection, charge-off and recovery practices; • Nature and volume of the portfolio; • Existence and effect of any credit concentrations and changes in the level of such concentrations; • Risk ratings; • Changes in the values of collateral for collateral dependent loans; • Changes in the quality of the loan review system; • Experience, ability and depth of lending management and staff; and • Other external factors, such as changes in the legal, regulatory or competitive environment. A residual reserve may be maintained to cover uncertainties that could affect management’s estimate of probable losses. The residual reserve amount reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating credit losses in the loan and lease portfolio. The discussion that follows describes Customers' underwriting policies for its primary lending activities and its credit monitoring and charge-off practices. Commercial and industrial loans and leases are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay its obligation as agreed. Commercial and industrial loans and leases are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan or lease facility. Accordingly, the repayment of a commercial and industrial loan or lease depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans rely on the value associated with the project upon completion. The cost and valuation amounts used are estimates and may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of the developed property. These loans are closely monitored by on-site inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest-rate sensitivity and governmental regulation of real property. Commercial real estate and multi-family loans are subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan, or the principal business conducted on the property securing the loan, to generate sufficient cash flows to service the debt. In addition, the underwriting considers the amount of the principal advanced relative to the property value. Commercial real estate and multi-family loans may be adversely affected by conditions in the real estate markets or the economy in general. Management monitors and evaluates commercial real estate and multi-family loans based on cash flow estimates, collateral valuation and risk-rating criteria. Customers also utilizes third-party experts to provide environmental and market valuations. Substantial effort is required to underwrite, monitor and evaluate commercial real estate and multi-family loans. Residential real estate loans are secured by one-to-four dwelling units. This group is further divided into first mortgage and home equity loans. First mortgages are originated at a loan to value ratio of 80% or less. Home equity loans have additional risks as a result of typically being in a second position or lower in the event collateral is liquidated. Manufactured housing loans are loans that are secured by the manufactured housing unit where the borrower may or may not own the underlying real estate and therefore have a higher risk than a residential real estate loan. Other consumer loans consist primarily of unsecured loans to individuals which are originated through Customers' retail network or acquired through purchases from third parties, primarily market place lenders. None of the loans are sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660. Consumer loans have a greater credit risk than residential loans because of the difference in the underlying collateral, if any. The application of various federal and state bankruptcy and insolvency laws may limit the amount that can be recovered on such loans. Delinquency status and other borrower characteristics are used to monitor loans and leases and identify credit risks, and the general reserves are established based on the expected incurred net charge-offs, adjusted for qualitative factors. Charge-offs on commercial and industrial, construction, multi-family and commercial real estate loans and leases are recorded when management estimates that there are insufficient cash flows to repay the contractual loan obligation based upon financial information available and valuation of the underlying collateral. Shortfalls in the underlying collateral value for loans or leases determined to be collateral dependent are charged-off immediately. Customers also takes into account the strength of any guarantees and the ability of the borrower to provide value related to those guarantees in determining the ultimate charge-off or allowance associated with an impaired loan or lease. Accordingly, Customers may charge-off a loan or lease to a value below the net appraised value if it believes that an expeditious liquidation is desirable under the circumstance, and it has legitimate offers or other indications of interest to support a value that is less than the net appraised value. Alternatively, Customers may carry a loan or lease at a value that is in excess of the appraised value in certain circumstances, such as when Customers has a guarantee from a borrower that Customers believes has realizable value. In evaluating the strength of any guarantee, Customers evaluates the financial wherewithal of the guarantor, the guarantor’s reputation and the guarantor’s willingness and desire to work with Customers. Customers then conducts a review of the strength of the guarantee on a frequency established as the circumstances and conditions of the borrower warrant. Customers records charge-offs for residential real estate, other consumer and manufactured housing loans after 120 days of delinquency or sooner when cash flows are determined to be insufficient for repayment. Customers may also charge-off these loans below the net appraised valuation if Customers holds a junior-mortgage position in a piece of collateral whereby the risk to acquiring control of the property through the purchase of the senior-mortgage position is deemed to potentially increase the risk of loss upon liquidation due to the amount of time to ultimately sell the property and the volatile market conditions. In such cases, Customers may abandon its junior mortgage and charge-off the loan balance in full. Credit Quality Factors Commercial and industrial, multi-family, commercial real estate and construction loans and leases are each assigned a numerical rating of risk based on an internal risk-rating system. The risk rating is assigned at loan origination and indicates management's estimate of credit quality. Risk ratings are reviewed on a periodic or “as needed” basis. Residential real estate, manufactured housing and other consumer loans are evaluated primarily based on payment activity of the loan. Risk ratings are not established for residential real estate, home equity loans, manufactured housing loans, and other consumer loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based on aggregate payment history (through the monitoring of delinquency levels and trends). For additional information about credit quality risk ratings refer to NOTE 7 – LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR LOAN AND LEASE LOSSES. Impaired Loans and Leases A loan or lease is generally considered impaired when, based on current information and events, it is probable that Customers will be unable to collect all amounts due according to the contractual terms of the loan or lease agreement. Customers' impaired loans and leases generally include loans and leases that have been (i) placed on non-accrual, (ii) restructured in a TDR, regardless of their payment status and (iii) charged-off to their net realizable value. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans and leases that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan or lease and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is generally measured on a loan-by-loan basis for commercial and construction loans by the present value of expected future cash flows discounted at the loan’s original effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. The fair value of the collateral is measured based on the value of the collateral securing the loans, less estimated costs to liquidate the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of Customers' collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, third-party licensed appraiser using comparable market data. The value of business equipment is based upon an outside appraisal if deemed significant or the net book value on the applicable business’ financial statements if not considered significant, using comparable market data. Similarly, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the identifiable net assets of businesses acquired through business combinations accounted for under the acquisition method. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as customer and university relationships and non-compete agreements, are amortized over their estimated useful lives and are subject to impairment testing. Goodwill and indefinite-lived intangible assets are reviewed for impairment annually as of October 31 and between annual tests when events and circumstances indicate that impairment may have occurred. If there is a goodwill impairment charge, it will be the amount by which the reporting unit's carrying amount exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The same annual impairment test is applied to goodwill at all reporting units. Customers applies a qualitative assessment for its reporting units to determine if the one-step quantitative impairment test is necessary. Intangible assets subject to amortization are reviewed for impairment under ASC 360 which requires that a long-lived asset or asset group be tested for recoverability whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. |
FHLB, Federal Reserve Bank, and other restricted stock | FHLB, Federal Reserve Bank and other restricted stockFHLB, Federal Reserve Bank and other restricted stock represents required investment in the capital stock of the FHLB, the Federal Reserve Bank and Atlantic Community Bankers Bank and is carried at cost. |
Other Real Estate Owned | Other Real Estate Owned Real estate properties acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less estimated costs to sell at the date of foreclosure, establishing a new cost basis. After foreclosure, valuations are periodically performed by third-party appraisers, and the real estate is carried at the lower of its carrying amount or fair value less estimated costs to sell. Any declines in the fair value of the real estate properties below the initial cost basis are recorded through a valuation allowance. Increases in the fair value of the real estate properties net of estimated selling costs will reverse the valuation allowance but only up to the costs basis which was established at the initial measurement date. Revenue and expenses from operations and changes in the valuation allowance are included in earnings. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance BOLI policies insure the lives of officers of Customers and name Customers as beneficiary. Non-interest income is generated tax free (subject to certain limitations) from the increase in value of the policies’ underlying investments made by the insurance company. Cash proceeds received from the settlement of the BOLI policies are tax-free and can be used to partially offset costs associated with employee compensation and benefit programs. |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization is computed on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the term of the lease or estimated useful life, unless extension of the lease term is reasonably assured. |
Lessor Operating Leases | Lessor Operating Leases Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges. The depreciation expense of the leased assets is recognized on a straight-line basis over the contractual term of the leases up to their expected residual value. The expected residual value and, accordingly, the monthly depreciation expense, may change throughout the term of the lease. Operating lease rental income for leased assets is recognized in other non-interest income on a straight-line basis over the lease term. Customers periodically reviews its leased assets for impairment. An impairment loss is recognized if the carrying amount of the leased asset exceeds its fair value and is not recoverable. The carrying amount of leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the leased asset. |
Treasury Stock | Treasury Stock Common stock purchased for treasury is recorded at cost. |
Income Taxes | Income Taxes Customers accounts for income taxes under the liability method of accounting for income taxes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Customers determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. A tax position is recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the term upon examination includes resolution of the related appeals or litigation process. A tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. In assessing the realizability of federal or state deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. See NOTE 15 - INCOME TAXES for additional information. |
Share-Based Compensation | Share-Based Compensation Customers has four share-based compensation plans. Share-based-compensation accounting guidance requires that the compensation cost relating to share-based-payment transactions be recognized in earnings. The cost is measured based on the grant-date fair value of the equity instruments issued. The Black-Scholes model is used to estimate the fair value of stock options, while the closing market price of Customers’ common stock on the date of grant is used for restricted stock awards. Compensation cost for all share-based awards is calculated and recognized over the team member's service period, defined as the vesting period. For performance-based awards, compensation cost is recognized over the vesting period as long as it remains probable that the performance conditions will be met. If the service or performance conditions are not met, Customers reverses previously recorded compensation expense upon forfeiture. Customers' accounting policy election is to recognize forfeitures as they occur. In 2014, the shareholders of Customers Bancorp approved an ESPP. Because the purchase price under the plan is 85% (a 15% discount to the market price) of the fair market value of a share of common stock on the first day of each quarterly subscription period, the plan is considered to be a compensatory plan under current accounting guidance. Therefore, the entire amount of the discount is recognizable compensation expense. See NOTE 14 - SHARE-BASED COMPENSATION for additional information. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including loan participations sold, are accounted for as sales when control over the assets has been surrendered (settlement date). Control over transferred assets is generally considered to have been surrendered when (i) the assets have been isolated from Customers, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) Customers does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. If the sale criteria are met, the transferred financial assets are removed from Customers' balance sheet, and a gain or loss on sale is recognized. If the sale criteria are not met, the transfer is recorded as a secured borrowing with the assets remaining on Customers' balance sheet, and the proceeds received from the transaction recognized as a liability. |
Segment Information | Segment Information Customers' chief operating decision makers allocate resources and assess performance for two distinct business segments, "Customers Bank Business Banking" and "BankMobile." 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. 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 existing and potential white label partners. BankMobile, as a division of Customers Bank, is a full service bank that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Additional information regarding reportable segments can be found in NOTE 24 - BUSINESS SEGMENTS. |
Derivative Instruments and Hedging | Derivative Instruments and Hedging ASC 815, Derivatives and Hedging , provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (i) how and why an entity uses derivative instruments, (ii) how the entity accounts for derivative instruments and the related hedged items and (c) how derivative instruments and the related hedged items affect an entity’s financial position, financial performance and cash flows. Further, qualitative disclosures are required that explain the objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative instruments. As required by ASC 815, Customers records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether Customers has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as hedges of the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest-rate risk, are considered fair value hedges. Derivatives designated and qualifying as hedges of the exposure to variability in expected future cash flows or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. Customers may enter into derivative contracts that are intended to economically hedge certain of its risks; even though hedge accounting does not apply, or Customers elects not to apply hedge accounting. Beginning in March 2014, Customers entered into pay-fixed interest-rate swaps to hedge the variable cash flows associated with the forecasted issuance of debt and a certain variable rate deposit relationship. Customers documented and designated these interest-rate swaps as cash flow hedges. The effective portion of changes in the fair value of financial derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the financial derivatives is also recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income (loss) related to financial derivatives will be reclassified to interest expense as interest payments are made on Customers' variable-rate debt. As of December 31, 2019, Customers had four financial derivatives designated in qualifying cash flow hedge relationships with a notional aggregate balance of $725.0 million. As of December 31, 2018, Customers had six financial derivatives designated in qualifying cash flow hedge relationships with a notional aggregate balance of $750.0 million. Customers has also purchased and sold credit derivatives to either hedge or participate in the performance risk associated with some of its counterparties. These derivatives were not designated in hedge relationships for accounting purposes and are being recorded at their fair value, with fair value changes recorded directly in earnings. At December 31, 2019 and 2018, Customers had an outstanding notional balance of credit derivatives of $167.1 million and $94.9 million, respectively. In accordance with the FASB’s fair value measurement guidance, Customers made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. See NOTE 20 - DERIVATIVE INSTRUMENTS for additional information. Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the values of which are determined by interest rates. Customers’ derivative financial instruments are used to manage differences in the amount, timing and duration of Customers’ known or expected cash receipts and its known or expected cash payments principally related to certain borrowings and deposits. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers’ interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes changes in unrealized gains and losses on debt securities available for sale arising during the period and reclassification adjustments for realized gains and losses on debt securities available for sale included in net income. Other comprehensive income (loss) also includes the effective and ineffective portion of changes in fair value of financial derivatives designated and qualifying as cash flow hedges. Cash flow hedge amounts classified as comprehensive income are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. |
Earnings per Share | Earnings per Share Basic EPS represents net income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted EPS includes all potentially dilutive common shares outstanding during the period. Potential common shares that may be issued related to outstanding stock options, restricted stock units and warrants are determined using the treasury stock method. The treasury stock method assumes that the proceeds received for common shares |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal, regulatory and governmental actions and proceedings arise in the ordinary course of business. In accordance with applicable accounting guidance, Customers establishes an accrued liability when those matters present loss contingencies that are both probable and estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. As facts and circumstances evolve, Customers, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. Once the loss contingency is deemed to be both probable and estimable, Customers will establish an accrued liability and record a corresponding amount of litigation-related expense. Customers continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. |
Collaborative Arrangements | Collaborative Arrangements In the normal course of business, Customers may enter into collaborative arrangements primarily to develop and commercialize banking products to its partners' customers. Collaborative arrangements are contractual agreements with third parties that involve a joint operating activity where both Customers and the collaborating partner are active participants in the activity and are exposed to the significant risks and rewards of the activity. Collaborative activities typically include research and development, technology, product development, marketing, and day-to-day operations of the banking product. These arrangements often require the sharing of revenue and expense. Net interest income, non-interest income, and non-interest expenses incurred pursuant to these arrangements are reported net of any payments due to or amounts due from Customers' collaboration partners. Reimbursement of non-interest expenses are reported in other non-interest expense and are recognized at the time the collaborative party becomes obligated to pay. |
Recently Issued Accounting Standards and Updates | Recently Issued Accounting Standards Accounting Standards Adopted in 2019 During 2019, Customers has adopted the following FASB ASUs, none of which had a material impact to Customers’ consolidated financial statements: 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 material impact on Customers' financial condition, results of operations and consolidated financial statements. • See NOTE 8 - LEASES. ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities Issued March 2017 • 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 material 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 Issued July 2017 • 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 material 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 Issued June 2018 • 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 material impact on Customers' financial condition, results of operations and consolidated financial statements. Accounting Standards Adopted on January 1, 2020 Standard Summary of guidance Effects on Financial Statements ASU 2019-04, • 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 adopted on January 1, 2020. • The adoption of this guidance relating to Topics 815 and 825 did not have a material impact on Customers' financial condition, results of operations and consolidated financial statements. Please refer to ASU 2016-13 for further discussion on Customers' adoption of ASU 2016-13 (Topic 326). 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 adopted on January 1, 2020. • The adoption of this guidance did not have a material impact on Customers' financial condition, results of operations and consolidated financial statements. Accounting Standards Adopted on January 1, 2020 (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 adopted on January 1, 2020. • The adoption of this guidance did not have a material impact on Customers' 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 current expected credit loss model to estimate lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset (including HTM securities), presents the net amount expected to be collected on the financial asset. Replaces today's "incurred loss" approach and is expected to result in earlier recognition of credit losses. For available for sale debt securities, entities will be required to record allowances for credit losses rather than reduce the carrying amount, as they do today under the OTTI model, and will be allowed to reverse previously established allowances in the event the credit of the issuer improves. Simplifies the accounting model for PCI debt securities and loans. In May 2019, the FASB issued ASU 2019-05 "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief," which provides entities that have certain instruments within the scope of Topic 326 with an option to irrevocably elect the fair value option in Subtopic 825, Financial Instruments. This relief is to be applied on an instrument-by-instrument basis for eligible instruments upon adoption of Topic 326. Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. Adoption to be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Customers will adopt on January 1, 2020. 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 expected credit loss estimates. Customers utilizes a third-party vendor to assist in the implementation process of its new model. Customers utilizes lifetime loss rate models for its commercial real estate, commercial and industrial, and consumer portfolios. As Customers' loan portfolios have not been subject to a full economic credit cycle, expected lifetime loss rates for its commercial loan portfolios are calibrated based on its peer groups' historical loss rates. Expected lifetime loss rates for Customers' consumer loan portfolio is based on industry data, as the majority of the portfolio has been purchased from third-parties and originated nationwide. Additionally, the expected loss rates include reasonable and supportable forecasts of macroeconomic conditions. Implementation efforts are continuing to focus on model validation, model calibration, qualitative factors, developing new disclosures, finalizing formal policies and procedures and other governance and control enhancements and documentation. Customers continues to analyze and modify the calculations. Based on the work to date, Customers does expect a significant increase in the ALLL upon adoption. For regulatory capital purposes, Customers will phase in the CECL adjustment over a 3-year period. |
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 instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers’ various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (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 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 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. For the Years Ended December 31, 2019 2018 2017 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 64,868 $ 57,236 $ 64,378 Weighted-average number of common shares outstanding – basic 31,183,841 31,570,118 30,659,320 Share-based compensation plans 462,375 658,739 1,917,451 Warrants — 4,241 19,906 Weighted-average number of common shares – diluted 31,646,216 32,233,098 32,596,677 Basic earnings per common share $ 2.08 $ 1.81 $ 2.10 Diluted earnings per common share $ 2.05 $ 1.78 $ 1.97 |
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. For the Years Ended December 31, 2019 2018 2017 Anti-dilutive securities: Share-based compensation awards 2,172,157 1,138,251 1,059,225 |
Changes In Accumulated Other _2
Changes In Accumulated Other Comprehensive Income (Loss) By Component (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2019 and 2018. Amounts in parentheses indicate reductions to accumulated other comprehensive income (loss). Available for Sale Securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) (2) Unrealized Gains (Losses) on Cash Flow Hedges (3) Total Balance, December 31, 2017 $ (249) $ 88 $ (161) $ (198) $ (359) Reclassification of the income tax effects of the Tax Cuts and Jobs Act (1) (256) — (256) (42) (298) Reclassification of the net unrealized gains on equity securities (1) (953) (88) (1,041) — (1,041) Balance after reclassification adjustments on January 1, 2018 (1,458) — (1,458) (240) (1,698) Current period: Unrealized gains (losses) arising during period, before tax (46,069) — (46,069) 1,995 (44,074) Income tax effect 11,978 — 11,978 (518) 11,460 Other comprehensive income (loss) before reclassifications (34,091) — (34,091) 1,477 (32,614) Reclassification adjustments for losses (gains) included in net income, before tax 18,659 — 18,659 (2,917) 15,742 Income tax effect (4,851) — (4,851) 758 (4,093) Amounts reclassified from accumulated other comprehensive income (loss) to net income 13,808 — 13,808 (2,159) 11,649 Net current-period other comprehensive income (loss) (20,283) — (20,283) (682) (20,965) Balance, December 31, 2018 (21,741) — (21,741) (922) (22,663) Current period: Unrealized gains (losses) arising during period, before tax 49,688 — 49,688 (21,157) 28,531 Income tax effect (12,919) — (12,919) 5,501 (7,418) Other comprehensive income (loss) before reclassifications 36,769 — 36,769 (15,656) 21,113 Reclassification adjustments for losses (gains) included in net income, before tax (1,001) — (1,001) 1,407 406 Income, tax effect 260 — 260 (366) (106) Amounts reclassified from accumulated other comprehensive income (loss) to net income (741) — (741) 1,041 300 Net current-period other comprehensive income (loss) 36,028 — 36,028 (14,615) 21,413 Balance, December 31, 2019 $ 14,287 $ — $ 14,287 $ (15,537) $ (1,250) (1) Amounts reclassified from accumulated other comprehensive income (loss) on January 1, 2018 as a result of the adoption of ASU 2018-02 and ASU 2016-01 resulted in a decrease in accumulated other comprehensive income of $1.3 million and a corresponding increase in retained earnings for the same amount. (2) 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. (3) Reclassification amounts for cash flow hedges are reported as interest expense for the applicable hedged items on the consolidated statements of income or other non-interest income on the consolidated statements of income for gains recognized from the discontinuance of cash flow hedge accounting for certain interest rate swaps. No cash flow hedges were discontinued during the year ended December 31, 2019. During the year ended December 31, 2018, a reclassification amount of $95 thousand ($70 thousand net of taxes) was reported as a reduction to interest expense on FHLB advances on the consolidated statements of income and a reclassification amount of $2.8 million ($2.1 million net of taxes) was reported as other non-interest income on the consolidated statements of income from the discontinuance of cash flow hedge accounting for certain interest rate swaps. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 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 December 31, 2019 and 2018 are summarized as follows: December 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 $ 273,252 $ 5,069 $ — $ 278,321 Corporate notes (1) 284,639 14,238 — 298,877 Available for sale debt securities $ 557,891 $ 19,307 $ — 577,198 Interest-only GNMA securities (2) 16,272 Equity securities (3) 2,406 Total investment securities, at fair value $ 595,876 December 31, 2018 (amounts in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for sale 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 (3) 1,718 Total investment securities, at fair value $ 665,012 (1) At December 31, 2019, includes corporate securities issued by domestic bank holding companies. At December 31, 2018, includes corporate securities issued by other domestic and foreign bank holding companies. (2) Reported at fair value with fair value changes recorded in non-interest income based on fair value option election. (3) Includes equity securities issued by a foreign entity. |
Statement of Proceeds from Sale of Available for Sale Investment Securities | The following table presents proceeds from the sale of available for sale debt securities and gross gains and gross losses realized on those sales: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Proceeds from sale of available for sale debt securities $ 97,555 $ 476,182 $ 769,203 Gross gains $ 1,931 $ — $ 8,808 Gross losses (930) (18,659) (8) Net gains (losses) $ 1,001 $ (18,659) $ 8,800 |
Summary of Investment Securities by Stated Maturity | The following table presents debt securities by stated maturity. Debt securities backed by mortgages and interest-only GNMA securities 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: December 31, 2019 (amounts in thousands) Amortized Cost Fair Value Due in one year or less $ — $ — Due after one year through five years 15,000 15,206 Due after five years through ten years 267,639 281,607 Due after ten years 2,000 2,064 Agency-guaranteed residential mortgage-backed securities 273,252 278,321 Interest-only classes of agency-guaranteed home equity conversion mortgage-backed securities — 16,272 Total debt securities $ 557,891 $ 593,470 |
Gross Unrealized Losses and Fair Value, Aggregated by Investment Category | At December 31, 2019, there were no available for sale debt securities in an unrealized loss position. 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 December 31, 2018 were as follows: 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 Held for Sale (Tables)
Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables Held-for-sale [Abstract] | |
Composition of Loans Held for Sale | The composition of loans held for sale as of December 31, 2019 and 2018 was as follows: December 31, (amounts in thousands) 2019 2018 Commercial loans: Multi-family loans, at lower of cost or fair value $ 482,873 $ — Total commercial loans held for sale 482,873 — Consumer loans: Home equity conversion mortgages, at lower of cost or fair value 1,325 — Residential mortgage loans, at fair value 2,130 1,507 Total consumer loans held for sale 3,455 1,507 Loans held for sale $ 486,328 $ 1,507 |
Loans and Leases Receivable a_2
Loans and Leases Receivable and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | The following table presents loans and leases receivable as of December 31, 2019 and 2018: December 31, (amounts in thousands) 2019 2018 Loans receivable, mortgage warehouse, at fair value $ 2,245,758 $ 1,405,420 Loans receivable: Commercial: Multi-family 1,909,274 3,285,297 Commercial and industrial (including owner occupied commercial real estate) (1) 2,441,987 1,951,277 Commercial real estate non-owner occupied 1,223,529 1,125,106 Construction 118,418 56,491 Total commercial loans and leases receivable 5,693,208 6,418,171 Consumer: Residential real estate 375,014 566,561 Manufactured housing 70,398 79,731 Other consumer 1,178,283 74,035 Total consumer loans receivable 1,623,695 720,327 Loans and leases receivable 7,316,903 7,138,498 Deferred (fees) costs and unamortized (discounts) premiums, net 2,085 (424) Allowance for loan and lease losses (56,379) (39,972) Total loans and leases receivable, net of allowance for loan and lease losses $ 9,508,367 $ 8,503,522 (1) Includes direct finance equipment leases of $89.2 million and $54.5 million at December 31, 2019 and 2018, respectively. |
Loans Receivable by Class and Performance Status | The following tables summarize loans and leases receivable by loan and lease type and performance status as of December 31, 2019 and 2018: December 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 $ 2,133 $ — $ 2,133 $ 4,117 $ 1,901,336 $ 1,688 $ 1,909,274 Commercial and industrial 2,395 — 2,395 4,531 1,882,700 354 1,889,980 Commercial real estate owner occupied 5,388 — 5,388 1,963 537,992 6,664 552,007 Commercial real estate non-owner occupied 8,034 — 8,034 76 1,211,892 3,527 1,223,529 Construction — — — — 118,418 — 118,418 Residential real estate 5,924 — 5,924 6,128 359,491 3,471 375,014 Manufactured housing (5) 3,699 1,794 5,493 1,655 61,649 1,601 70,398 Other consumer 5,756 — 5,756 1,551 1,170,793 183 1,178,283 Total $ 33,329 $ 1,794 $ 35,123 $ 20,021 $ 7,244,271 $ 17,488 $ 7,316,903 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) Certain manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank of $0.1 million and $0.5 million at December 31, 2019 and 2018, respectively, which are used to fund past-due payments when the loan becomes 90 days or more delinquent. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio. |
Schedule of Allowance for Loan Losses | The changes in the ALLL for the years ended December 31, 2019 and 2018, and the loans and leases and ALLL by loan and lease type based on impairment-evaluation method as of December 31, 2019 and 2018 are presented in the tables below. Twelve months ended December 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) (532) (119) — — (297) — (8,101) (9,590) Recoveries 7 1,050 236 — 136 27 — 314 1,770 Provision for loan and lease losses (4,771) 2,893 (1,202) 150 502 (166) 915 25,906 24,227 Ending Balance, $ 6,157 $ 15,556 $ 2,235 $ 6,243 $ 1,262 $ 3,218 $ 1,060 $ 20,648 $ 56,379 As of December 31, 2019 (amounts in thousands) Loans and leases receivable: Individually evaluated for impairment $ 4,117 $ 4,591 $ 1,976 $ 76 $ — $ 9,063 $ 9,898 $ 1,551 $ 31,272 Collectively evaluated for impairment 1,903,469 1,885,035 543,367 1,219,926 118,418 362,480 58,899 1,176,549 7,268,143 Loans acquired with credit deterioration 1,688 354 6,664 3,527 — 3,471 1,601 183 17,488 Total loans and leases receivable $ 1,909,274 $ 1,889,980 $ 552,007 $ 1,223,529 $ 118,418 $ 375,014 $ 70,398 $ 1,178,283 $ 7,316,903 Allowance for loan and lease losses: Individually evaluated for impairment $ — $ 523 $ 83 $ — $ — $ 44 $ 129 $ 73 $ 852 Collectively evaluated for impairment 6,157 14,768 2,113 4,361 1,262 2,923 897 20,420 52,901 Loans acquired with credit deterioration — 265 39 1,882 — 251 34 155 2,626 Total allowance for loan and lease losses $ 6,157 $ 15,556 $ 2,235 $ 6,243 $ 1,262 $ 3,218 $ 1,060 $ 20,648 $ 56,379 Twelve months ended December 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 — (1,722) (747) — — (466) — (1,822) (4,757) Recoveries — 403 326 5 241 76 — 21 1,072 Provision for loan and lease losses (706) 2,546 509 (1,349) (596) 1,115 (35) 4,158 5,642 Ending Balance, $ 11,462 $ 12,145 $ 3,320 $ 6,093 $ 624 $ 3,654 $ 145 $ 2,529 $ 39,972 As of December 31, 2018 (amounts in thousands) 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 Impaired Loans | Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. December 31, 2019 For the Year 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 $ 4,117 $ 4,117 $ — $ 1,223 $ 239 Commercial and industrial 3,084 4,726 — 7,439 1,077 Commercial real estate owner occupied 1,109 1,880 — 1,111 55 Commercial real estate non-owner occupied 76 187 — 97 7 Residential real estate 4,559 4,861 — 2,766 129 Manufactured housing 4,169 4,169 — 5,638 325 Other consumer 140 140 — 4,127 266 With an allowance recorded: Multi-family — — — 231 — Commercial and industrial 1,507 1,507 523 3,723 64 Commercial real estate owner occupied 867 878 83 278 54 Residential real estate 4,504 4,522 44 2,523 119 Manufactured housing 5,729 5,729 129 3,792 253 Other consumer 1,411 1,411 73 584 — Total $ 31,272 $ 34,127 $ 852 $ 33,532 $ 2,588 December 31, 2018 For the Year Ended, For the Year Ended, (amounts in thousands) Recorded investment net of charge-offs Unpaid principal balance Related allowance Average recorded investment Interest income recognized Average recorded investment Interest income recognized With no related allowance recorded: Multi-family $ — $ — $ — $ 537 $ 8 $ — $ — Commercial and industrial 13,660 15,263 — 8,831 673 8,865 214 Commercial real estate owner occupied 1,037 1,766 — 776 19 1,439 70 Commercial real estate non-owner occupied 129 241 — 645 48 898 2 Residential real estate 4,842 5,128 — 4,129 151 4,617 24 Manufactured housing 10,027 10,027 — 10,015 561 10,003 558 Other consumer 111 111 — 89 1 51 — With an allowance recorded: Multi-family 1,155 1,155 539 231 37 — — Commercial and industrial 4,168 4,351 261 6,504 25 5,984 230 Commercial real estate owner occupied 32 32 1 443 3 882 — Residential real estate 3,789 3,789 41 4,566 131 3,307 187 Manufactured housing 168 168 3 214 14 131 8 Total $ 39,118 $ 42,031 $ 845 $ 36,980 $ 1,671 $ 36,177 $ 1,293 |
Schedule of Total TDRs Based on Loan Type and Accrual Status | The following table presents total TDRs based on loan type and accrual status at December 31, 2019, 2018 and 2017. Nonaccrual TDRs are included in the reported amount of total non-accrual loans. December 31, 2019 2018 2017 Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total (amounts in thousands) Commercial and industrial $ 60 $ 23 $ 83 $ 64 $ 5,273 $ 5,337 $ 63 $ 5,939 $ 6,002 Commercial real estate owner occupied 13 — 13 32 — 32 — — — Residential real estate 2,935 631 3,566 3,026 667 3,693 3,828 703 4,531 Manufactured housing 8,243 1,382 9,625 8,502 1,620 10,122 8,130 1,766 9,896 Other consumer — 10 10 — 12 12 — — — Total TDRs $ 11,251 $ 2,046 $ 13,297 $ 11,624 $ 7,572 $ 19,196 $ 12,021 $ 8,408 $ 20,429 |
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 years ended December 31, 2019, 2018 and 2017. There were no modifications that involved forgiveness of debt for the years ended December 31, 2019, 2018 and 2017. For the Years Ended December 31, 2019 2018 2017 (dollars in thousands) Number of loans Recorded investment Number of loans Recorded investment Number of loans Recorded investment Extensions of maturity 2 $ 514 2 $ 60 5 $ 6,497 Interest-rate reductions 26 923 39 1,615 35 1,574 Total 28 $ 1,437 41 $ 1,675 40 $ 8,071 |
Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments | The following table provides, by loan type, the number of loans modified in TDRs and the related recorded investment for the years ended December 31, 2019, 2018 and 2017. For the Years Ended December 31, 2019 2018 2017 (dollars in thousands) Number of loans Recorded investment Number of loans Recorded investment Number of loans Recorded investment Commercial and industrial 1 $ 431 — $ — 4 $ 6,437 Residential real estate 1 83 2 352 — — Manufactured housing 26 923 38 1,310 36 1,634 Other consumer — — 1 13 — — Total loans 28 $ 1,437 41 $ 1,675 40 $ 8,071 |
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment Within Twelve Months | 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: December 31, 2019 December 31, 2018 December 31, 2017 (dollars in thousands) Number of loans Recorded investment Number of loans Recorded investment Number of loans Recorded investment Residential real estate $ 1 $ 81 $ — $ — $ — $ — Manufactured housing 3 73 4 92 5 211 Total loans 4 $ 154 4 $ 92 5 $ 211 |
Changes in Accretable Discount Related to Purchased Credit Impaired Loans | The changes in accretable yield related to PCI loans for the years ended December 31, 2019, 2018 and 2017 were as follows: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Accretable yield balance, beginning of period $ 6,178 $ 7,825 $ 10,202 Accretion to interest income (1,144) (1,455) (1,673) Reclassification from nonaccretable difference and disposals, net 44 (192) (704) Accretable yield balance, end of period $ 5,078 $ 6,178 $ 7,825 |
Credit Quality Tables | The following tables present the credit ratings of loans and leases receivable as of December 31, 2019 and 2018. December 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 $ 1,816,200 $ 1,841,074 $ 536,777 $ 1,129,838 $ 118,418 $ — $ — $ — $ 5,442,307 Special Mention 69,637 26,285 8,286 6,949 — — — — 111,157 Substandard 23,437 22,621 6,944 86,742 — — — — 139,744 Performing (1) — — — — — 362,962 63,250 1,170,976 1,597,188 Non-performing (2) — — — — — 12,052 7,148 7,307 26,507 Total $ 1,909,274 $ 1,889,980 $ 552,007 $ 1,223,529 $ 118,418 $ 375,014 $ 70,398 $ 1,178,283 $ 7,316,903 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 assigned internal ratings. (2) Includes residential real estate, manufactured housing, and other consumer loans that are past due and still accruing interest or on nonaccrual status. |
Schedule of Loan Purchases and Sales | Purchases and sales of loans were as follows for the years ended December 31, 2019, 2018 and 2017: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Purchases (1) Residential real estate $ 105,858 $ 368,402 $ 264,090 Other consumer (2) 1,058,261 30,066 — Total $ 1,164,119 $ 398,468 $ 264,090 Sales (3) Multi-family $ — $ (54,638) $ (226,831) Commercial and industrial (4) (22,267) (32,263) (19,974) Commercial real estate owner occupied (4) (16,320) (20,218) (19,813) Residential real estate (230,285) — (191,574) Total $ (268,872) $ (107,119) $ (458,192) (1) Amounts reported represent the unpaid principal balance at time of purchase. The purchase price was 100.3%, 99.9% and 99.4% of loans outstanding for the years ended December 31, 2019, 2018 and 2017, respectively. (2) Other consumer loan purchases for the year ended December 31, 2019 and 2018, consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660. (3) Amounts reported represent the unpaid principal balance at time of sale. For the years ended December 31, 2019, 2018 and 2017, loan sales resulted in net gains of $2.8 million, $3.3 million and $4.2 million, respectively. (4) Primarily sales of SBA loans. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 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 December 31, 2019 ASSETS Operating lease ROU assets Other assets $ 20,232 LIABILITIES Operating lease liabilities Other liabilities $ 21,358 |
Lease, Cost | The following table summarizes operating lease cost and its corresponding income statement location for the periods presented: (amounts in thousands) Classification Year Ended December 31, 2019 Operating lease cost (1) Occupancy expenses $ 5,823 (1) There were no variable lease costs for the year ended December 31, 2019, and sublease income for operating leases is immaterial. |
Future Minimum Rental Commitments under Non-Cancelable Leases | Maturities of non-cancelable operating lease liabilities were as follows at December 31, 2019: (amounts in thousands) December 31, 2019 2020 $ 5,539 2021 4,792 2022 4,167 2023 3,174 2024 2,100 Thereafter 2,817 Total minimum payments 22,589 Less: interest 1,231 Present value of lease liabilities $ 21,358 |
Summary of Lease Term and Discount Rate for Operating Leases | The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at December 31, 2019: (amounts in thousands) December 31, 2019 Weighted average remaining lease term (years) Operating leases 5.0 years Weighted average discount rate Operating leases 2.90 % |
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 at December 31, 2019: (amounts in thousands) Classification December 31, 2019 ASSETS Direct financing leases Lease receivables Loans and leases receivable $ 91,762 Guaranteed residual assets Loans and leases receivable 7,435 Unguaranteed residual assets Loans and leases receivable 1,260 Deferred initial direct costs Loans and leases receivable 721 Unearned income Loans and leases receivable (11,300) Net investment in direct financing leases $ 89,878 Operating leases Investment in operating leases Other assets $ 107,850 Accumulated depreciation Other assets (14,251) Deferred initial direct costs Other assets 1,052 Net investment in operating leases 94,651 Total lease assets $ 184,529 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Bank Premises and Equipment | The components of bank premises and equipment as of December 31, 2019 and 2018 were as follows: December 31, (amounts in thousands) Expected Useful Life 2019 2018 Leasehold improvements 3 to 25 years $ 14,218 $ 14,080 Furniture, fixtures and equipment 5 to 10 years 6,333 7,110 IT equipment 3 to 5 years 10,016 8,645 Automobiles 3 to 5 years 492 455 31,059 30,290 Accumulated depreciation and amortization (21,670) (19,227) Total $ 9,389 $ 11,063 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Components of Deposits | The components of deposits at December 31, 2019 and 2018 were as follows: December 31, (amounts in thousands) 2019 2018 Demand, non-interest bearing $ 1,343,391 $ 1,122,171 Demand, interest bearing 1,235,292 803,948 Savings, including money market deposit accounts 4,401,719 3,481,936 Time, $100,000 and over 402,161 792,370 Time, other 1,266,373 941,811 Total deposits $ 8,648,936 $ 7,142,236 |
Schedule of Time Deposit Maturities | The scheduled maturities for time deposits at December 31, 2019 were as follows: (amounts in thousands) December 31, 2019 2020 $ 1,467,088 2021 175,994 2022 19,489 2023 2,490 2024 3,473 Total time deposits $ 1,668,534 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short Term Borrowings | Short-term debt at December 31, 2019 and 2018 was as follows: December 31, 2019 2018 (dollars in thousands) Amount Rate Amount Rate FHLB advances $ 500,000 2.15 % $ 1,248,070 2.62 % Federal funds purchased 538,000 1.60 % 187,000 2.60 % Total short-term debt $ 1,038,000 $ 1,435,070 |
Summary of Bancorps Short Term Borrowings | The following is a summary of additional information relating to Customers' short-term debt: December 31, (dollars in thousands) 2019 2018 2017 FHLB advances Maximum outstanding at any month end $ 1,190,150 $ 2,622,165 $ 2,283,250 Average balance during the year 793,304 1,526,180 1,415,755 Weighted-average interest rate during the year 2.66 % 2.05 % 1.44 % Federal funds purchased Maximum outstanding at any month end 600,000 195,000 238,000 Average balance during the year 271,400 156,652 163,466 Weighted-average interest rate during the year 2.28 % 1.92 % 1.19 % |
Schedule of Long-term Debt | FHLB and FRB advances Long-term FHLB and FRB advances at December 31, 2019 and 2018 were as follows: December 31, 2019 2018 (dollars in thousands) Amount Rate Amount Rate FHLB advances $ 350,000 2.36 % $ — — % Total long-term FHLB advances $ 350,000 $ — There were no advances outstanding with the FRB at December 31, 2019 and 2018, respectively. The maximum borrowing capacity with the FHLB and FRB at December 31, 2019 and 2018, was as follows: December 31, (amounts in thousands) 2019 2018 Total maximum borrowing capacity with the FHLB $ 3,445,416 $ 4,146,899 Total maximum borrowing capacity with the FRB 136,842 102,461 Qualifying loans serving as collateral against FHLB and FRB advances 4,496,983 5,221,957 Senior and Subordinated Debt Long-term senior notes and subordinated debt at December 31, 2019 and 2018 were as follows: December 31, (dollars in thousands) 2019 2018 Issued by Ranking Amount Amount Rate Issued Amount Date Issued Maturity Price Customers Bancorp Senior $ 24,432 $ — 4.500 % $ 25,000 September 2019 September 2024 100.000 % Customers Bancorp Senior 99,198 98,911 3.950 % 100,000 June 2017 June 2022 99.775 % Customers Bancorp Senior — 24,960 4.625 % 25,000 June 2014 June 2019 100.000 % Total other borrowings 123,630 123,871 Customers Bancorp Subordinated (1)(2) 72,040 — 5.375 % 74,750 December 2019 December 2034 100.000 % Customers Bank Subordinated (1)(3) 109,075 108,977 6.125 % 110,000 June 2014 June 2029 100.000 % Total subordinated debt $ 181,115 $ 108,977 (1) The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. (2) Customers Bancorp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2029. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Preferred Stock and Dividends Paid Per Share | The table below summarizes Customers' issuances of preferred stock and the dividends paid per share. (amounts in thousands except share and per share data) Shares at December 31, Carrying value at December 31, Contractual Rate in Effect at December 31, 2019 Date at which dividend rate becomes floating and earliest redemption date Floating rate of Three-Month LIBOR Plus: Dividend Paid Per Share in 2019 Fixed-to-floating rate: Issue Date 2019 2018 2019 2018 Series C May 18, 2015 2,300,000 2,300,000 $ 55,569 $ 55,569 7.00 % June 15, 2020 5.300 % $ 1.75 Series D January 29, 2016 1,000,000 1,000,000 24,108 24,108 6.50 % March 15, 2021 5.090 % $ 1.63 Series E April 28, 2016 2,300,000 2,300,000 55,593 55,593 6.45 % June 15, 2021 5.140 % $ 1.61 Series F September 16, 2016 3,400,000 3,400,000 82,201 82,201 6.00 % December 15, 2021 4.762 % $ 1.50 Totals 9,000,000 9,000,000 $ 217,471 $ 217,471 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Statement of Weighted-Average Assumptions Used and Resulting Weighted-Average Fair Value of Option | The following table presents the weighted-average assumptions used and the resulting weighted-average fair value of each option granted for the periods presented. 2019 2018 2017 Weighted-average risk-free interest rate 1.69 % 2.87 % 2.35 % Expected dividend yield — % — % — % Weighted-average expected volatility 29.92 % 25.47 % 25.05 % Weighted-average expected life (in years) 7.00 7.00 7.00 Weighted-average fair value of each option granted $ 5.56 $ 10.05 $ 8.68 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the year ended December 31, 2019: Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term in Years Aggregate Intrinsic Value (dollars in thousands, except weighted-average exercise price) Outstanding, December 31, 2018 2,520,526 $ 22.13 Granted 577,230 19.05 Exercised (82,500) 16.79 $ 341 Expired (90,000) 25.19 Forfeited (95,008) 21.19 Outstanding, December 31, 2019 2,830,248 $ 21.59 6.45 $ 9,212 Exercisable at December 31, 2019 766,739 $ 15.52 3.46 $ 6,390 |
Summary of Non-Vested Options | A summary of the status of Customers' non-vested options at December 31, 2019, and changes during the year ended December 31, 2019 was as follows: Options Weighted- Average exercise price Non-vested at December 31, 2018 1,671,223 $ 25.10 Granted 577,230 19.05 Vested (89,936) 19.33 Forfeited (95,008) 21.19 Non-vested at December 31, 2019 2,063,509 23.85 |
Status of Restricted Stock | The table below presents the status of the restricted stock units at December 31, 2019, and changes during the year ended December 31, 2019: Restricted Stock Units Weighted- Average Grant- Date Fair Value Outstanding and unvested at December 31, 2018 884,659 $ 23.99 Granted 177,627 20.27 Vested (281,905) 23.22 Forfeited (62,700) 23.25 Outstanding and unvested at December 31, 2019 717,681 23.43 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Current Federal $ 2,973 $ 4,509 $ 24,258 State 5,304 5,547 5,666 Total current expense 8,277 10,056 29,924 Deferred Federal 13,175 9,702 14,885 State 1,341 (399) 233 Total deferred expense 14,516 9,303 15,118 Income tax expense $ 22,793 $ 19,359 $ 45,042 |
Schedule of Income (Loss) Before Income Tax Expense (Benefit) | Effective tax rates differ from the federal statutory rate of 21% at December 31, 2019 and December 31, 2018, and 35% at December 31, 2017, which was applied to income before income tax expense, due to the following: For the Years Ended December 31, 2019 2018 2017 (amounts in thousands) Amount % of pretax income Amount % of pretax income Amount % of pretax income Federal income tax at statutory rate $ 21,445 21.00 % $ 19,121 21.00 % $ 43,357 35.00 % State income tax, net of federal benefit 5,249 5.14 4,067 4.47 3,835 3.10 Tax-exempt interest, net of disallowance (385) (0.38) (360) (0.40) (381) (0.31) Bank-owned life insurance (1,677) (1.64) (1,547) (1.70) (2,675) (2.16) Tax credits (1,266) (1.24) (444) (0.49) — — Equity-based compensation 132 0.13 (547) (0.60) (10,741) (8.67) Non-deductible executive compensation 440 0.43 230 0.25 654 0.53 Unrecorded basis difference in foreign subsidiaries (144) (0.14) 343 0.38 4,527 3.65 Enactment of federal tax reform — — (21) (0.02) 5,505 4.44 Other (1,001) (0.98) (1,483) (1.63) 961 0.78 Effective income tax rate $ 22,793 22.32 % $ 19,359 21.26 % $ 45,042 36.36 % |
Components of Net Deferred Tax Assets (Liabilities) | The following represents Customers' deferred tax asset and liabilities as December 31, 2019 and 2018: December 31, (amounts in thousands) 2019 2018 Deferred tax assets Allowance for loan and lease losses $ 14,616 $ 10,449 Net unrealized losses on securities — 7,639 Net operating losses 1,494 1,212 Compensation and benefits 5,839 6,234 Cash flow hedge 5,557 324 Section 197 intangibles 1,196 923 Deferred income 1,182 640 Lease liability 5,523 — Other 1,307 2,766 Total gross deferred tax assets 36,714 30,187 Less: valuation allowance (486) — Net deferred tax assets 36,228 30,187 Deferred tax liabilities Fair value adjustments on acquisitions (506) (569) Bank premises and equipment (6,074) (884) Tax qualified lease adjustments (30,496) (17,786) Right of use asset (5,232) — Net unrealized gains on securities (5,020) — Other (640) (746) Total deferred tax liabilities (47,968) (19,985) Net deferred tax asset/(liability) $ (11,740) $ 10,202 |
Transactions with Executive O_2
Transactions with Executive Officers, Directors, and Principal Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Activity Relating to Loans | The activity relating to loans to such persons was as follows: For the Years Ended December 31, 2019 2018 2017 (amounts in thousands) Balance as of December 31, $ 5 $ — $ 238 Additions 47 27 99 Repayments (52) (22) (337) Balance as of December 31, $ — $ 5 $ — |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Outstanding Contract Amounts Represent Credit Risk | As of December 31, 2019 and 2018, the following off-balance sheet commitments, financial instruments and other arrangements were outstanding: December 31, (amounts in thousands) 2019 2018 Commitments to fund loans and leases $ 261,902 $ 345,608 Unfunded commitments to fund mortgage warehouse loans 1,378,364 1,537,900 Unfunded commitments under lines of credit and credit cards 1,065,474 867,131 Letters of credit 48,856 55,659 Other unused commitments 2,736 4,822 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 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 set forth in the following table: Minimum Capital Levels to be Classified as: Actual Adequately Capitalized Well Capitalized Basel III Compliant (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Common equity Tier 1 (to risk-weighted assets) Customers Bancorp, Inc. $ 821,810 7.984 % $ 463,211 4.500 % N/A N/A $ 720,551 7.000 % Customers Bank $ 1,164,652 11.323 % $ 462,842 4.500 % $ 668,549 6.500 % $ 719,976 7.000 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,039,281 10.096 % $ 617,615 6.000 % N/A N/A $ 874,955 8.500 % Customers Bank $ 1,164,652 11.323 % $ 617,122 6.000 % $ 822,829 8.000 % $ 874,256 8.500 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 1,256,309 12.205 % $ 823,487 8.000 % N/A N/A $ 1,080,827 10.500 % Customers Bank $ 1,330,155 12.933 % $ 822,829 8.000 % $ 1,028,537 10.000 % $ 1,079,964 10.500 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 1,039,281 9.258 % $ 449,026 4.000 % N/A N/A $ 449,026 4.000 % Customers Bank $ 1,164,652 10.379 % $ 448,851 4.000 % $ 561,064 5.000 % $ 448,851 4.000 % December 31, 2018 Common equity Tier 1 (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 % $ 655,580 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) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers’ financial instruments at December 31, 2019 and 2018 were as follows: Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2019 (amounts in thousands) 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 $ 212,505 $ 212,505 $ 212,505 $ — $ — Debt securities, available for sale 577,198 577,198 — 577,198 — Interest-only GNMA securities 16,272 16,272 — — 16,272 Equity securities 2,406 2,406 2,406 — — Loans held for sale 486,328 486,328 — 2,130 484,198 Total loans and leases receivable, net of allowance for loan and lease losses 9,508,367 9,853,037 — 2,245,758 7,607,279 FHLB, Federal Reserve Bank and other restricted stock 84,214 84,214 — 84,214 — Derivatives 23,608 23,608 — 23,529 79 Liabilities: Deposits $ 8,648,936 $ 8,652,340 $ 6,980,402 $ 1,671,938 $ — Federal funds purchased 538,000 538,000 538,000 — — FHLB advances 850,000 852,162 — 852,162 — Other borrowings 123,630 127,603 — 127,603 — Subordinated debt 181,115 192,217 — 192,217 — Derivatives 45,939 45,939 — 45,939 — Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 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 Non-recurring Basis | For financial assets and liabilities measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2019 and 2018 were as follows: December 31, 2019 Fair Value Measurements at the End of the Reporting Period Using (amounts in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total Measured at Fair Value on a Recurring Basis: Assets Available for sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 278,321 $ — $ 278,321 Corporate notes — 298,877 — 298,877 Interest-only GNMA securities — — 16,272 16,272 Equity securities 2,406 — — 2,406 Derivatives — 23,529 79 23,608 Loans held for sale – fair value option — 2,130 — 2,130 Loans receivable, mortgage warehouse – fair value option — 2,245,758 — 2,245,758 Total assets – recurring fair value measurements $ 2,406 $ 2,848,615 $ 16,351 $ 2,867,372 Liabilities Derivatives $ — $ 45,939 $ — $ 45,939 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $852 $ — $ — $ 14,272 $ 14,272 Other real estate owned — — 78 78 Total assets – nonrecurring fair value measurements $ — $ — $ 14,350 $ 14,350 December 31, 2018 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available for sale 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 specific 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 and Liabilities Measured at Fair Value on a Recurring Basis | The changes in residential mortgage loan commitments (Level 3 assets) measured at fair value on a recurring basis for the years ended December 31, 2019 and 2018 are summarized as follows in the tables below. Additional information about residential mortgage loan commitments can be found in NOTE 20 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. Residential Mortgage Loan Commitments For the Years Ended December 31, (amounts in thousands) 2019 2018 Balance at December 31, $ 69 $ 60 Issuances 451 407 Settlements (441) (398) Balance at December 31, $ 79 $ 69 |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2019 and 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. The interest-only GNMA securities are Level 3 assets measured at fair value on a recurring basis under a fair value option election. For the year ended December 31, 2019, Customers recorded an increase in fair value of $0.6 million on the interest-only GNMA securities in unrealized gains on investment securities in the consolidated statements of operations. For the year ended December 31, 2019, cash settlements of $1.5 million were applied to the carrying value of the interest-only GNMA securities, net of premium amortization expense. At December 31, 2019, Customers used an internally developed discounted cash flow model to value the interest-only GNMA securities. The significant unobservable input used in the discounted cash flow model included prepayment speed. Significant increases (decreases) in this input would result in a significantly lower (higher) fair value measurement. Quantitative Information about Level 3 Fair Value Measurements December 31, 2019 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (4) (dollars in thousands) Impaired loans – real estate $ 12,767 Collateral appraisal (1) Business asset valuation (3) Liquidation expenses (2) Business asset valuation adjustments (4) 8% - 10% (8%) 34% - 45% (37%) Impaired loans – commercial & industrial 1,505 Collateral appraisal (1) Business asset valuation (3) Liquidation expenses (2) Business asset valuation adjustments (4) 8% - 8% (8%) 8% - 50% (22%) Interest-only GNMA securities 16,272 Discounted cash flow Constant prepayment rate 9% - 14% (12%) Other real estate owned 78 Collateral appraisal (1) Liquidation expenses (2) 8% - 9% (9%) Residential mortgage loan commitments 79 Adjusted market bid Pull-through rate 85% - 85% (85%) (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) Business asset valuations may be adjusted by management for qualitative factors including economic conditions and the condition of the business assets. The range and weighted average of the business asset adjustments are presented as a percent of the business asset valuation. Quantitative Information about Level 3 Fair Value Measurements December 31, 2018 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (4) (dollars in thousands) Impaired loans – real estate $ 10,260 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% (8%) Impaired loans – commercial & industrial 616 Business asset valuation (3) Business asset valuation adjustments (4) 8% - 50% (26%) Other real estate owned 621 Collateral appraisal (1) Liquidation expenses (2) 8% - 8% (8%) Residential mortgage loan commitments 69 Adjusted market bid Pull-through rate 90% - 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) Business asset valuations may be adjusted by management for qualitative factors including economic conditions and the condition of the business assets. The range and weighted average of the business asset adjustments are presented as a percent of the business asset valuation. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments | The following table presents the fair value of Customers’ derivative financial instruments as well as their presentation on the consolidated balance sheets at December 31, 2019 and 2018. December 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 $ — Other liabilities $ 21,374 Total $ — $ 21,374 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 23,301 Other liabilities $ 24,797 Interest rate caps Other assets 9 Other liabilities 9 Credit contracts Other assets 219 Other liabilities (241) Residential mortgage loan commitments Other assets 79 Other liabilities — Total $ 23,608 $ 24,565 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 table presents amounts included in the consolidated statements of income related to derivatives not designated as hedges for the years ended December 31, 2019, 2018 and 2017. Amount of Income Recognized in Earnings For the Years Ended December 31, (amounts in thousands) Income Statement Location 2019 2018 2017 Derivatives not designated as hedging instruments: Interest rate swaps (1) Other non-interest income $ 2,549 $ 3,409 $ 604 Interest rate caps Other non-interest income 24 — — Credit contracts Other non-interest income 589 127 171 Residential mortgage loan commitments Mortgage banking income 10 9 15 Total $ 3,172 $ 3,545 $ 790 (1) Includes income recognized from discontinued cash flow hedges for the year ended December 31, 2018. Effect of Derivative Instruments on Comprehensive Income The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the years ended December 31, 2019, 2018 and 2017. For the Year Ended December 31, 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 (amounts in thousands) 2019 2018 2017 2019 2018 2017 Derivatives in cash flow hedging relationships: Interest rate swaps $ (15,656) $ 1,477 $ 406 Interest expense $ (1,407) $ 95 $ (2,634) Other non-interest income (2) — 2,822 — $ (1,407) $ 2,917 $ (2,634) (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. (2) Includes income recognized from discontinued cash flow hedges. |
Summary of Offsetting of Financial Assets and Derivative Assets | The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps and interest rate caps 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. Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Gross Amounts Recognized on the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/(Posted) Net Amount December 31, 2019 Interest rate derivative assets with institutional counterparties $ 432 $ — $ — $ 432 Interest rate derivative liabilities with institutional counterparties $ 45,727 $ — $ (45,727) $ — Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Gross Amounts Recognized on the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/(Posted) Net Amount December 31, 2018 Interest rate derivative assets with institutional counterparties $ 7,529 $ — $ 1,860 $ 5,669 Interest rate derivative liabilities with institutional counterparties $ 9,077 $ — $ (702) $ 8,375 |
Summary of Offsetting of Financial Liabilities and Derivative Liabilities | The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps and interest rate caps 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. Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Gross Amounts Recognized on the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/(Posted) Net Amount December 31, 2019 Interest rate derivative assets with institutional counterparties $ 432 $ — $ — $ 432 Interest rate derivative liabilities with institutional counterparties $ 45,727 $ — $ (45,727) $ — Gross Amounts Not Offset in the Consolidated Balance Sheet (amounts in thousands) Gross Amounts Recognized on the Consolidated Balance Sheets Financial Instruments Cash Collateral Received/(Posted) Net Amount December 31, 2018 Interest rate derivative assets with institutional counterparties $ 7,529 $ — $ 1,860 $ 5,669 Interest rate derivative liabilities with institutional counterparties $ 9,077 $ — $ (702) $ 8,375 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Summary of Condensed Balance Sheets of Parent Company | Balance Sheets December 31, (amounts in thousands) 2019 2018 Assets Cash in subsidiary bank $ 62,643 $ 16,684 Investments in and receivables due from bank subsidiary 1,178,166 1,059,671 Investments in and receivables due from non-bank subsidiaries 2,406 1,718 Other assets 6,583 3,417 Total assets $ 1,249,798 $ 1,081,490 Liabilities and Shareholders' equity Borrowings $ 195,670 $ 123,871 Other liabilities 1,333 803 Total liabilities 197,003 124,674 Shareholders' equity 1,052,795 956,816 Total Liabilities and Shareholders' Equity $ 1,249,798 $ 1,081,490 |
Summary of Condensed Income Statements of Parent Company | Income and Comprehensive Income Statements For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Operating income: Other, including dividends from bank subsidiary $ 70,000 $ 45,422 $ 38,200 Total operating income 70,000 45,422 38,200 Operating expense: Interest 5,425 8,178 7,984 Other 744 1,722 1,742 Total operating expense 6,169 9,900 9,726 Income before taxes and undistributed income of subsidiaries 63,831 35,522 28,474 Income tax benefit 1,391 2,335 3,620 Income before undistributed income of subsidiaries 65,222 37,857 32,094 Equity in undistributed income of subsidiaries 14,105 33,838 46,743 Net income 79,327 71,695 78,837 Preferred stock dividends 14,459 14,459 14,459 Net income available to common shareholders 64,868 57,236 64,378 Comprehensive income $ 100,740 $ 50,730 $ 83,370 |
Summary of Condensed Statements of Cash Flows of Parent Company | Statements of Cash Flows For the Years Ended December 31, (amounts in thousands) 2019 2018 2017 Cash Flows from Operating Activities Net income $ 79,327 $ 71,695 $ 78,837 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiaries, net of dividends received from Bank (14,105) (33,838) (46,743) (Increase) decrease in other assets (3,166) (256) 7,624 Increase (decrease) in other liabilities 1,775 (251) (1,322) Net Cash Provided By (Used in) Operating Activities 63,831 37,350 38,396 Cash Flows from Investing Activities Payments for investments in and advances to subsidiaries (74,767) (29) (98,725) Net Cash Used in Investing Activities (74,767) (29) (98,725) Cash Flows from Financing Activities Proceeds from issuance of common stock 2,150 3,585 2,716 Proceeds from issuance of subordinated long-term debt 72,030 — — Proceed from issuance of other long-term borrowings 24,477 — 98,564 Repayments of other borrowings (25,000) (63,250) — Exercise and redemption of warrants — 112 1,059 Purchase of treasury stock (571) (12,976) — Payments of employee taxes withheld from share-based awards (1,732) (880) (14,761) Preferred stock dividends paid (14,459) (14,459) (14,459) Net Cash Provided by (Used in) Financing Activities 56,895 (87,868) 73,119 Net Increase (Decrease) in Cash and Cash Equivalents 45,959 (50,547) 12,790 Cash and Cash Equivalents - Beginning 16,684 67,231 54,441 Cash and Cash Equivalents - Ending $ 62,643 $ 16,684 $ 67,231 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents selected quarterly data for the years ended December 31, 2019 and 2018. 2019 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 123,995 $ 126,718 $ 111,950 $ 101,075 Interest expense 46,402 50,983 47,271 41,771 Net interest income 77,593 75,735 64,679 59,304 Provision for loan and lease losses 9,689 4,426 5,346 4,767 Non-interest income (1) 25,813 23,369 12,036 19,718 Non-interest expenses 58,740 59,592 59,582 53,984 Income before income taxes 34,977 35,086 11,787 20,271 Provision for income taxes 7,451 8,020 2,491 4,831 Net income 27,526 27,066 9,296 15,440 Preferred stock dividends 3,615 3,615 3,615 3,615 Net income available to common shareholders $ 23,911 $ 23,451 $ 5,681 $ 11,825 Earnings per common share: Basic earnings per common share $ 0.76 $ 0.75 $ 0.18 $ 0.38 Diluted earnings per common share $ 0.75 $ 0.74 $ 0.18 $ 0.38 (1) The quarter ended June 30, 2019 included a $7.5 million loss due to a shortfall in the fair value of interest-only GNMA securities acquired from a commercial mortgage warehouse customer. 2018 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 103,303 $ 110,045 $ 107,639 $ 96,964 Interest expense 41,779 46,044 40,317 31,933 Net interest income 61,524 64,001 67,322 65,031 Provision for loan and lease losses 1,385 2,924 (784) 2,117 Non-interest income (2) 19,877 2,084 16,127 20,910 Non-interest expenses 57,045 57,104 53,750 52,280 Income before income taxes 22,971 6,057 30,483 31,544 Provision for income taxes 5,109 28 6,820 7,402 Net income 17,862 6,029 23,663 24,142 Preferred stock dividends 3,615 3,615 3,615 3,615 Net income available to common shareholders $ 14,247 $ 2,414 $ 20,048 $ 20,527 Earnings per common share: Basic earnings per common share $ 0.45 $ 0.08 $ 0.64 $ 0.65 Diluted earnings per common share $ 0.44 $ 0.07 $ 0.62 $ 0.64 (2) The quarter ended September 30, 2018 included an $18.7 million loss on sale of investment securities. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 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 years ended December 31, 2019, 2018 and 2017. 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 22.55%, 24.56% and 37.67% for the years ended December 31, 2019, 2018 and 2017, respectively. For the Year Ended December 31, 2019 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 422,094 $ 41,645 $ 463,739 Interest expense 185,513 916 186,429 Net interest income 236,581 40,729 277,310 Provision for loan and lease losses 10,091 14,136 24,227 Non-interest income 35,268 45,670 80,938 Non-interest expense 153,333 78,568 231,901 Income (loss) before income tax expense (benefit) 108,425 (6,305) 102,120 Income tax expense (benefit) 24,215 (1,422) 22,793 Net income (loss) 84,210 (4,883) 79,327 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 69,751 $ (4,883) $ 64,868 As of December 31, 2019 Goodwill and other intangibles $ 3,629 $ 11,566 $ 15,195 Total assets (2) $ 10,990,550 $ 530,167 $ 11,520,717 Total deposits $ 8,247,836 $ 401,100 $ 8,648,936 Total non-deposit liabilities (2) $ 1,789,329 $ 29,657 $ 1,818,986 For the Year Ended December 31, 2018 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 400,948 $ 17,003 $ 417,951 Interest expense 159,674 400 160,074 Net interest income 241,274 16,603 257,877 Provision for loan and lease losses 2,928 2,714 5,642 Non-interest income 17,499 41,499 58,998 Non-interest expense 146,946 73,233 220,179 Income (loss) before income tax expense (benefit) 108,899 (17,845) 91,054 Income tax expense (benefit) 23,742 (4,383) 19,359 Net income (loss) 85,157 (13,462) 71,695 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 70,698 $ (13,462) $ 57,236 As of December 31, 2018 Goodwill and other intangibles $ 3,629 $ 12,870 $ 16,499 Total assets (2) $ 9,688,146 $ 145,279 $ 9,833,425 Total deposits $ 6,766,378 $ 375,858 $ 7,142,236 Total non-deposit liabilities (2) $ 1,719,225 $ 15,148 $ 1,734,373 (1) Amounts reported include funds transfer pricing of $8.8 million and $15.7 million for the years ended December 31, 2019 and 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no-cost deposits. (2) Amounts reported exclude inter-segment receivables/payables. For the Year Ended December 31, 2017 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Interest income (1) $ 359,931 $ 12,919 $ 372,850 Interest expense 105,438 69 105,507 Net interest income 254,493 12,850 267,343 Provision for loan and lease losses 5,638 1,130 6,768 Non-interest income 24,788 54,122 78,910 Non-interest expense 128,604 87,002 215,606 Income (loss) before income tax expense (benefit) 145,039 (21,160) 123,879 Income tax expense (benefit) 53,013 (7,971) 45,042 Net income (loss) 92,026 (13,189) 78,837 Preferred stock dividends 14,459 — 14,459 Net income (loss) available to common shareholders $ 77,567 $ (13,189) $ 64,378 As of December 31, 2017 Goodwill and other intangibles $ 3,630 $ 12,665 $ 16,295 Total assets (2) $ 9,769,996 $ 69,559 $ 9,839,555 Total deposits $ 6,400,310 $ 399,832 $ 6,800,142 Total non-deposit liabilities (2) $ 2,106,919 $ 11,530 $ 2,118,449 (1) Amounts reported include funds transfer pricing of $12.9 million for the year ended December 31, 2017, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no-cost deposits. (2) Amounts reported exclude inter-segment receivables/payables. |
Non-Interest Revenue (Tables)
Non-Interest Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Customers' revenue from contracts with customers within the 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 years ended December 31, 2019, 2018, and 2017: For the Year Ended December 31, 2019 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 781 $ 28,160 $ 28,941 Deposit fees 1,742 11,073 12,815 University fees - card and disbursement fees — 1,008 1,008 Total revenue recognized at point in time 2,523 40,241 42,764 Revenue recognized over time: University fees - subscription revenue — 3,956 3,956 Total revenue recognized over time — 3,956 3,956 Total revenue from contracts with customers $ 2,523 $ 44,197 $ 46,720 For the Year Ended December 31, 2018 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 794 $ 29,901 $ 30,695 Deposit fees 1,277 6,547 7,824 University fees - card and disbursement fees — 1,039 1,039 Total revenue recognized at point in time 2,071 37,487 39,558 Revenue recognized over time: University fees - subscription revenue — 3,681 3,681 Total revenue recognized over time — 3,681 3,681 Total revenue from contracts with customers $ 2,071 $ 41,168 $ 43,239 For the Year Ended December 31, 2017 (amounts in thousands) Customers Bank Business Banking BankMobile Consolidated Revenue from contracts with customers: Revenue recognized at point in time: Interchange and card revenue $ 782 $ 40,727 $ 41,509 Deposit fees 1,190 8,849 10,039 University fees - card and disbursement fees — 1,141 1,141 Total revenue recognized at point in time 1,972 50,717 52,689 Revenue recognized over time: University fees - subscription revenue — 3,272 3,272 Total revenue recognized over time — 3,272 3,272 Total revenue from contracts with customers $ 1,972 $ 53,989 $ 55,961 |
Description of the Business - N
Description of the Business - Narrative (Detail) | Dec. 31, 2019Branch |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches | 13 |
Significant Accounting Polici_3
Significant Accounting Policies and Basis of Presentation - Narrative (Detail) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2016Segment | Dec. 31, 2019USD ($)CompensationPlanderivativeSegmentSwap | Dec. 31, 2018USD ($)derivativeSwap | Dec. 31, 2017USD ($) | Dec. 31, 2014 | Jan. 01, 2018USD ($) |
Derivative [Line Items] | |||||||
Average reserve balances required to be maintained with federal reserve bank | $ 69,100 | $ 58,400 | |||||
Contractual payment of principal duration (days) | 90 days | ||||||
Contractual terms for loans (months) | 6 months | ||||||
Maximum loan to value ratio | 80.00% | ||||||
Delinquency period for loan charge-offs (days) | 120 days | ||||||
Goodwill and other intangibles | $ 15,195 | 16,499 | $ 16,295 | ||||
FHLB, Federal Reserve Bank, and other restricted stock | 84,214 | 89,685 | |||||
Federal Home Loan Bank stock | $ 60,800 | 67,300 | |||||
Percentage of tax position that will be realized or sustained upon examination | 50.00% | ||||||
Number of share-based compensation plans | CompensationPlan | 4 | ||||||
Number of reportable segments (segment) | Segment | 2 | 2 | |||||
Collaborative arrangement, expense reimbursement | $ 7,700 | 8,400 | 2,400 | ||||
Increase to loans and leases receivable allowance | $ 56,379 | $ 39,972 | $ 38,015 | ||||
Accounting Standards Update 2016-01 | |||||||
Derivative [Line Items] | |||||||
Cumulative effect adjustment | $ 0 | ||||||
Interest rate swaps | Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Number of interest rate swaps | Swap | 140 | 98 | |||||
Derivative notional amount | $ 1,400,000 | $ 1,000,000 | |||||
Interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Number of interest rate swaps | derivative | 4 | 6 | |||||
Derivative notional amount | $ 725,000 | $ 750,000 | |||||
Credit contracts | Not Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount | $ 167,100 | $ 94,900 | |||||
ESPP | |||||||
Derivative [Line Items] | |||||||
Purchase price under employee stock purchase plan (percent) | 85.00% | 85.00% | |||||
Purchase price under employee stock purchase plan, discount (percent) | 15.00% | 15.00% | |||||
Retained Earnings | Accounting Standards Update 2016-01 | |||||||
Derivative [Line Items] | |||||||
Cumulative effect adjustment | 1,041 | ||||||
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | |||||||
Derivative [Line Items] | |||||||
Cumulative effect adjustment | $ (1,041) | ||||||
Discounted cash flow | Fair Value Estimate | |||||||
Derivative [Line Items] | |||||||
Interest-only GNMA securities | $ 16,272 | ||||||
Subsequent Event | Accounting Standards Update 2016-13 | |||||||
Derivative [Line Items] | |||||||
Phase-in period (years) | 3 years |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common shareholders | $ 23,911 | $ 23,451 | $ 5,681 | $ 11,825 | $ 14,247 | $ 2,414 | $ 20,048 | $ 20,527 | $ 64,868 | $ 57,236 | $ 64,378 |
Weighted-average number of common shares outstanding – basic (shares) | 31,183,841 | 31,570,118 | 30,659,320 | ||||||||
Share-based compensation plans (shares) | 462,375 | 658,739 | 1,917,451 | ||||||||
Warrants (shares) | 0 | 4,241 | 19,906 | ||||||||
Weighted-average number of common shares – diluted (shares) | 31,646,216 | 32,233,098 | 32,596,677 | ||||||||
Basic earnings per common share (usd per share) | $ 0.76 | $ 0.75 | $ 0.18 | $ 0.38 | $ 0.45 | $ 0.08 | $ 0.64 | $ 0.65 | $ 2.08 | $ 1.81 | $ 2.10 |
Diluted earnings per share (usd per share) | $ 0.75 | $ 0.74 | $ 0.18 | $ 0.38 | $ 0.44 | $ 0.07 | $ 0.62 | $ 0.64 | $ 2.05 | $ 1.78 | $ 1.97 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based compensation awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (shares) | 2,172,157 | 1,138,251 | 1,059,225 |
Changes In Accumulated Other _3
Changes In Accumulated Other Comprehensive Income (Loss) By Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 956,816 | $ 920,964 | $ 855,872 | |
Unrealized gains (losses) arising during period, before tax | 28,531 | (44,074) | ||
Income tax effect | (7,418) | 11,460 | ||
Other comprehensive income (loss) before reclassifications | 21,113 | (32,614) | ||
Reclassification adjustments for losses (gains) included in net income, before tax | 406 | 15,742 | ||
Income tax effect | (106) | (4,093) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 300 | 11,649 | ||
Net current-period other comprehensive income (loss) | 21,413 | (20,965) | ||
Ending balance | 1,052,795 | 956,816 | 920,964 | |
Reclassification, cash flow hedge, before tax | (1,407) | 2,917 | (2,634) | |
Unrealized Gains (Losses), available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (21,741) | (249) | ||
Balance after reclassification adjustments | $ (1,458) | |||
Unrealized gains (losses) arising during period, before tax | 49,688 | (46,069) | ||
Income tax effect | (12,919) | 11,978 | ||
Other comprehensive income (loss) before reclassifications | 36,769 | (34,091) | ||
Reclassification adjustments for losses (gains) included in net income, before tax | (1,001) | 18,659 | ||
Income tax effect | 260 | (4,851) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | (741) | 13,808 | ||
Net current-period other comprehensive income (loss) | 36,028 | (20,283) | ||
Ending balance | 14,287 | (21,741) | (249) | |
Foreign Currency Items, available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 88 | ||
Balance after reclassification adjustments | 0 | |||
Unrealized gains (losses) arising during period, before tax | 0 | 0 | ||
Income tax effect | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassification adjustments for losses (gains) included in net income, before tax | 0 | 0 | ||
Income tax effect | 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 | 88 | |
Total unrealized gains (losses), available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (21,741) | (161) | ||
Balance after reclassification adjustments | (1,458) | |||
Unrealized gains (losses) arising during period, before tax | 49,688 | (46,069) | ||
Income tax effect | (12,919) | 11,978 | ||
Other comprehensive income (loss) before reclassifications | 36,769 | (34,091) | ||
Reclassification adjustments for losses (gains) included in net income, before tax | (1,001) | 18,659 | ||
Income tax effect | 260 | (4,851) | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | (741) | 13,808 | ||
Net current-period other comprehensive income (loss) | 36,028 | (20,283) | ||
Ending balance | 14,287 | (21,741) | (161) | |
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) | |||
Unrealized gains (losses) arising during period, before tax | (21,157) | 1,995 | ||
Income tax effect | 5,501 | (518) | ||
Other comprehensive income (loss) before reclassifications | (15,656) | 1,477 | ||
Reclassification adjustments for losses (gains) included in net income, before tax | 1,407 | (2,917) | ||
Income tax effect | (366) | 758 | ||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 1,041 | (2,159) | ||
Net current-period other comprehensive income (loss) | (14,615) | (682) | ||
Ending balance | (15,537) | (922) | (198) | |
Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (22,663) | (359) | (4,892) | |
Balance after reclassification adjustments | (1,698) | |||
Ending balance | $ (1,250) | (22,663) | $ (359) | |
Non-interest income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Reclassification, cash flow hedge, after tax | 70 | |||
Reclassification, cash flow hedge, before tax | 95 | |||
Other non-interest income | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Reclassification, cash flow hedge, after tax | 2,100 | |||
Reclassification, cash flow hedge, before tax | $ 2,800 | |||
Accounting Standards Update 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | 0 | |||
Accounting Standards Update 2018-02 | Unrealized Gains (Losses), available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | (256) | |||
Accounting Standards Update 2018-02 | Foreign Currency Items, available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | 0 | |||
Accounting Standards Update 2018-02 | Total unrealized gains (losses), available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | (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 adjustment | (42) | |||
Accounting Standards Update 2018-02 | Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | (298) | |||
Accounting Standards Update 2016-01 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | 0 | |||
Accounting Standards Update 2016-01 | Unrealized Gains (Losses), available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | (953) | |||
Accounting Standards Update 2016-01 | Foreign Currency Items, available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | (88) | |||
Accounting Standards Update 2016-01 | Total unrealized gains (losses), available-for-sale securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | (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 adjustment | 0 | |||
Accounting Standards Update 2016-01 | Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | (1,041) | |||
Combined effect of multiple accounting pronouncements on components of shareholders' equity | Accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Cumulative effect adjustment | $ (1,300) |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 557,891 | $ 692,674 |
Gross Unrealized Gains | 19,307 | 920 |
Gross Unrealized Losses | 0 | (30,300) |
Fair Value | 577,198 | 663,294 |
Equity securities | 2,406 | 1,718 |
Total investment securities, at fair value | 595,876 | 665,012 |
Agency-guaranteed residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 273,252 | 311,267 |
Gross Unrealized Gains | 5,069 | 0 |
Gross Unrealized Losses | 0 | (5,893) |
Fair Value | 278,321 | 305,374 |
Corporate notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 284,639 | 381,407 |
Gross Unrealized Gains | 14,238 | 920 |
Gross Unrealized Losses | 0 | (24,407) |
Fair Value | 298,877 | $ 357,920 |
Interest-only GNMA securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Interest-only GNMA securities | $ 16,272 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Loss upon acquisition of interest-only GNMA securities | $ 7,500 | $ 7,476 | $ 0 | $ 0 |
Unrealized (gain) loss on investment securities | $ 1,299 | (1,634) | $ 0 | |
Number of available for sale debt securities in an unrealized loss position (position) | position | 0 | |||
Pledged investment securities fair value | $ 20,400 | $ 23,000 | ||
Interest-only GNMA securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Loss upon acquisition of interest-only GNMA securities | 7,500 | |||
Interest-only GNMA securities | $ 16,272 |
Investment Securities - Stateme
Investment Securities - Statement of Proceeds from Sale of Available for Sale Investment Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sale of available for sale debt securities | $ 97,555 | $ 476,182 | $ 769,203 | |
Gross gains | 1,931 | 0 | 8,808 | |
Gross losses | (930) | (18,659) | (8) | |
Net gains (losses) | $ (18,700) | $ 1,001 | $ (18,659) | $ 8,800 |
Investment Securities - Summa_2
Investment Securities - Summary of Investment Securities by Stated Maturity (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Amortized cost, due in one year or less | $ 0 |
Amortized cost, due after one year through five years | 15,000 |
Amortized cost, due after five years through ten years | 267,639 |
Amortized cost, due after ten years | 2,000 |
Total Debt Securities Amortized Cost | 557,891 |
Fair value, due in one year or less | 0 |
Fair value, due after one year through five years | 15,206 |
Fair value, due after five years through ten years | 281,607 |
Fair value, due after ten years | 2,064 |
Total Debt Securities Fair Value | 593,470 |
Agency-guaranteed residential mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Mortgage-backed securities, amortized cost | 273,252 |
Mortgage-backed securities, fair value | 278,321 |
Interest-only GNMA securities | |
Debt Securities, Available-for-sale [Line Items] | |
Mortgage-backed securities, amortized cost | 0 |
Mortgage-backed securities, fair value | $ 16,272 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value, Aggregated by Investment Category (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 Months, Fair Value | $ 615,410 |
Less Than 12 Months, Unrealized Losses | (30,300) |
12 Months or More, Fair Value | 0 |
12 Months or More, Unrealized Losses | 0 |
Fair Value | 615,410 |
Unrealized Losses | (30,300) |
Corporate notes | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 Months, Fair Value | 310,036 |
Less Than 12 Months, Unrealized Losses | (24,407) |
12 Months or More, Fair Value | 0 |
12 Months or More, Unrealized Losses | 0 |
Fair Value | 310,036 |
Unrealized Losses | (24,407) |
Agency-guaranteed residential mortgage-backed securities | |
Debt Securities, Available-for-sale [Line Items] | |
Less than 12 Months, Fair Value | 305,374 |
Less Than 12 Months, Unrealized Losses | (5,893) |
12 Months or More, Fair Value | 0 |
12 Months or More, Unrealized Losses | 0 |
Fair Value | 305,374 |
Unrealized Losses | $ (5,893) |
Loans Held for Sale - Compositi
Loans Held for Sale - Composition of Loans Held for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables Held-for-sale [Abstract] | ||||
Multi-family loans, at lower of cost or fair value | $ 482,873 | $ 0 | ||
Total commercial loans held for sale | 482,873 | 0 | ||
Home equity conversion mortgages, at lower of cost or fair value | 1,325 | 0 | ||
Residential mortgage loans, at fair value | 2,130 | 1,507 | ||
Total consumer loans held for sale | 3,455 | 1,507 | ||
Loans held for sale | 486,328 | 1,507 | ||
Transfer of loans held for investment to held for sale | $ 499,800 | $ 499,774 | $ 0 | $ 150,638 |
Loans and Leases Receivable a_3
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Schedule of Loans Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable, mortgage warehouse, at fair value | $ 2,245,758 | $ 1,405,420 | |
Loans receivable | 7,316,903 | 7,138,498 | |
Deferred (fees) costs and unamortized (discounts) premiums, net | 2,085 | (424) | |
Allowance for loan and lease losses | (56,379) | (39,972) | $ (38,015) |
Total loans and leases receivable, net of allowance for loan and lease losses | 9,508,367 | 8,503,522 | |
Mortgage Warehouse | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable, mortgage warehouse, at fair value | 2,245,758 | 1,405,420 | |
Multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 1,909,274 | 3,285,297 | |
Allowance for loan and lease losses | (6,157) | (11,462) | (12,168) |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 118,418 | 56,491 | |
Allowance for loan and lease losses | (1,262) | (624) | (979) |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 375,014 | 566,561 | |
Allowance for loan and lease losses | (3,218) | (3,654) | (2,929) |
Manufactured housing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 70,398 | 79,731 | |
Allowance for loan and lease losses | (1,060) | (145) | (180) |
Other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 1,178,283 | 74,035 | |
Allowance for loan and lease losses | (20,648) | (2,529) | $ (172) |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 5,693,208 | 6,418,171 | |
Commercial | Multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 1,909,274 | 3,285,297 | |
Commercial | Commercial and industrial (including owner occupied commercial real estate) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 2,441,987 | 1,951,277 | |
Commercial | Commercial real estate non-owner occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 1,223,529 | 1,125,106 | |
Commercial | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 118,418 | 56,491 | |
Commercial | Direct finance equipment leases | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 89,200 | 54,500 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 1,623,695 | 720,327 | |
Consumer | Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 375,014 | 566,561 | |
Consumer | Manufactured housing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | 70,398 | 79,731 | |
Consumer | Other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable | $ 1,178,283 | $ 74,035 |
Loans and Leases Receivable a_4
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)LoanCommitmentAllowance | Dec. 31, 2018USD ($)LoanCommitment | Dec. 31, 2017USD ($)CommitmentLoanAllowance | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans held for sale, average life from purchase to sale (days) | 30 days | ||
Troubled debt restructurings loans | $ 13,300,000 | $ 19,200,000 | $ 20,400,000 |
Minimum performance requirement (months) | 6 months | ||
Sustained performance period (months) | 6 months | ||
Lease receivables restructured as a TDR | $ 0 | $ 0 | $ 0 |
Number of loans | Loan | 28 | 41 | 40 |
Commitments to lend additional funds to debtors | Commitment | 0 | 0 | 0 |
Number of TDR loans that defaulted on payments | Loan | 4 | 4 | 5 |
Amount of TDR loans that defaulted on payments | $ 154,000 | $ 92,000 | $ 211,000 |
Allowance for TDR modification | $ 17,000 | $ 1,000 | |
TDR modification (allowance) | Allowance | 15 | 1 | |
Troubled Debt Restructurings | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Sustained performance period (months) | 9 months | ||
Residential Real Estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Other real estate owned | $ 200,000 | 200,000 | |
Foreclosure loans | 900,000 | $ 2,100,000 | |
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of TDR loans that defaulted on payments | Loan | 1 | 1 | |
Amount of TDR loans that defaulted on payments | $ 1,500,000 | $ 2,100,000 | |
Federal Home Loan Bank of Pittsburgh | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Loans pledged as collateral | $ 4,600,000,000 | $ 5,400,000,000 | |
Principal Forgiveness | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 0 | 0 | 0 |
Loans and Leases Receivable a_5
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Loans by Type and Performance Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | $ 35,123 | $ 15,551 |
Non-Accrual | 20,021 | 27,494 |
Current | 7,244,271 | 7,073,879 |
Total loans | $ 7,316,903 | 7,138,498 |
Due days for loan payments (days) | 30 days | |
Delinquent period (days) | 90 days | |
30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | $ 33,329 | 13,363 |
90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 1,794 | 2,188 |
Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 17,488 | 21,574 |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,133 | 0 |
Non-Accrual | 4,117 | 1,155 |
Current | 1,901,336 | 3,282,452 |
Total loans | 1,909,274 | 3,285,297 |
Multi-family | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,133 | 0 |
Multi-family | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Multi-family | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,688 | 1,690 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,395 | 1,914 |
Non-Accrual | 4,531 | 17,764 |
Current | 1,882,700 | 1,353,586 |
Total loans | 1,889,980 | 1,373,800 |
Commercial and industrial | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,395 | 1,914 |
Commercial and industrial | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Commercial and industrial | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 354 | 536 |
Commercial real estate owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 5,388 | 193 |
Non-Accrual | 1,963 | 1,037 |
Current | 537,992 | 567,809 |
Total loans | 552,007 | 577,477 |
Commercial real estate owner occupied | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 5,388 | 193 |
Commercial real estate owner occupied | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Commercial real estate owner occupied | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 6,664 | 8,438 |
Commercial real estate non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 8,034 | 1,190 |
Non-Accrual | 76 | 129 |
Current | 1,211,892 | 1,119,443 |
Total loans | 1,223,529 | 1,125,106 |
Commercial real estate non-owner occupied | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 8,034 | 1,190 |
Commercial real estate non-owner occupied | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Commercial real estate non-owner occupied | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,527 | 4,344 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Non-Accrual | 0 | 0 |
Current | 118,418 | 56,491 |
Total loans | 118,418 | 56,491 |
Construction | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Construction | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Construction | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 0 | 0 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 5,924 | 5,940 |
Non-Accrual | 6,128 | 5,605 |
Current | 359,491 | 550,679 |
Total loans | 375,014 | 566,561 |
Residential real estate | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 5,924 | 5,940 |
Residential real estate | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Residential real estate | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,471 | 4,337 |
Manufactured housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 5,493 | 6,114 |
Non-Accrual | 1,655 | 1,693 |
Current | 61,649 | 69,916 |
Total loans | 70,398 | 79,731 |
Cash | 100 | 500 |
Manufactured housing | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 3,699 | 3,926 |
Manufactured housing | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 1,794 | 2,188 |
Manufactured housing | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 1,601 | 2,008 |
Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 5,756 | 200 |
Non-Accrual | 1,551 | 111 |
Current | 1,170,793 | 73,503 |
Total loans | 1,178,283 | 74,035 |
Other consumer | 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 5,756 | 200 |
Other consumer | 90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Other consumer | Purchased credit impaired loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $ 183 | $ 221 |
Loans and Leases Receivable a_6
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Schedule of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 39,972 | $ 38,015 | ||
Charge-offs | (9,590) | (4,757) | ||
Recoveries | 1,770 | 1,072 | ||
Provision for loan and lease losses | 24,227 | 5,642 | ||
Ending Balance | 56,379 | 39,972 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | $ 31,272 | $ 39,118 | ||
Collectively evaluated for impairment | 7,268,143 | 7,077,806 | ||
Loans receivable, at amortized cost or lower of cost or market | 7,316,903 | 7,138,498 | ||
Individually evaluated for impairment | 852 | 845 | ||
Collectively evaluated for impairment | 52,901 | 36,249 | ||
Total allowance for loan losses | 39,972 | 39,972 | 56,379 | 39,972 |
Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 17,488 | 21,574 | ||
Loans receivable, at amortized cost or lower of cost or market | 17,488 | 21,574 | ||
Loans acquired with credit deterioration | 2,626 | 2,878 | ||
Multi-family | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 11,462 | 12,168 | ||
Charge-offs | (541) | 0 | ||
Recoveries | 7 | 0 | ||
Provision for loan and lease losses | (4,771) | (706) | ||
Ending Balance | 6,157 | 11,462 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 4,117 | 1,155 | ||
Collectively evaluated for impairment | 1,903,469 | 3,282,452 | ||
Loans receivable, at amortized cost or lower of cost or market | 1,909,274 | 3,285,297 | ||
Individually evaluated for impairment | 0 | 539 | ||
Collectively evaluated for impairment | 6,157 | 10,923 | ||
Total allowance for loan losses | 11,462 | 11,462 | 6,157 | 11,462 |
Multi-family | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 1,688 | 1,690 | ||
Loans receivable, at amortized cost or lower of cost or market | 1,688 | 1,690 | ||
Loans acquired with credit deterioration | 0 | 0 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 12,145 | 10,918 | ||
Charge-offs | (532) | (1,722) | ||
Recoveries | 1,050 | 403 | ||
Provision for loan and lease losses | 2,893 | 2,546 | ||
Ending Balance | 15,556 | 12,145 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 4,591 | 17,828 | ||
Collectively evaluated for impairment | 1,885,035 | 1,355,436 | ||
Loans receivable, at amortized cost or lower of cost or market | 1,889,980 | 1,373,800 | ||
Individually evaluated for impairment | 523 | 261 | ||
Collectively evaluated for impairment | 14,768 | 11,516 | ||
Total allowance for loan losses | 12,145 | 12,145 | 15,556 | 12,145 |
Commercial and industrial | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 354 | 536 | ||
Loans receivable, at amortized cost or lower of cost or market | 354 | 536 | ||
Loans acquired with credit deterioration | 265 | 368 | ||
Commercial real estate owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 3,320 | 3,232 | ||
Charge-offs | (119) | (747) | ||
Recoveries | 236 | 326 | ||
Provision for loan and lease losses | (1,202) | 509 | ||
Ending Balance | 2,235 | 3,320 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 1,976 | 1,069 | ||
Collectively evaluated for impairment | 543,367 | 567,970 | ||
Loans receivable, at amortized cost or lower of cost or market | 552,007 | 577,477 | ||
Individually evaluated for impairment | 83 | 1 | ||
Collectively evaluated for impairment | 2,113 | 3,319 | ||
Total allowance for loan losses | 3,320 | 3,320 | 2,235 | 3,320 |
Commercial real estate owner occupied | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 6,664 | 8,438 | ||
Loans receivable, at amortized cost or lower of cost or market | 6,664 | 8,438 | ||
Loans acquired with credit deterioration | 39 | 0 | ||
Commercial real estate non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 6,093 | 7,437 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 5 | ||
Provision for loan and lease losses | 150 | (1,349) | ||
Ending Balance | 6,243 | 6,093 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 76 | 129 | ||
Collectively evaluated for impairment | 1,219,926 | 1,120,633 | ||
Loans receivable, at amortized cost or lower of cost or market | 1,223,529 | 1,125,106 | ||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 4,361 | 4,161 | ||
Total allowance for loan losses | 6,093 | 6,093 | 6,243 | 6,093 |
Commercial real estate non-owner occupied | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 3,527 | 4,344 | ||
Loans receivable, at amortized cost or lower of cost or market | 3,527 | 4,344 | ||
Loans acquired with credit deterioration | 1,882 | 1,932 | ||
Construction | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 624 | 979 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 136 | 241 | ||
Provision for loan and lease losses | 502 | (596) | ||
Ending Balance | 1,262 | 624 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 118,418 | 56,491 | ||
Loans receivable, at amortized cost or lower of cost or market | 118,418 | 56,491 | ||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,262 | 624 | ||
Total allowance for loan losses | 1,262 | 979 | 1,262 | 624 |
Construction | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 0 | 0 | ||
Loans receivable, at amortized cost or lower of cost or market | 0 | 0 | ||
Loans acquired with credit deterioration | 0 | 0 | ||
Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 3,654 | 2,929 | ||
Charge-offs | (297) | (466) | ||
Recoveries | 27 | 76 | ||
Provision for loan and lease losses | (166) | 1,115 | ||
Ending Balance | 3,218 | 3,654 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 9,063 | 8,631 | ||
Collectively evaluated for impairment | 362,480 | 553,593 | ||
Loans receivable, at amortized cost or lower of cost or market | 375,014 | 566,561 | ||
Individually evaluated for impairment | 44 | 41 | ||
Collectively evaluated for impairment | 2,923 | 3,227 | ||
Total allowance for loan losses | 3,654 | 3,654 | 3,218 | 3,654 |
Residential real estate | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 3,471 | 4,337 | ||
Loans receivable, at amortized cost or lower of cost or market | 3,471 | 4,337 | ||
Loans acquired with credit deterioration | 251 | 386 | ||
Manufactured housing | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 145 | 180 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision for loan and lease losses | 915 | (35) | ||
Ending Balance | 1,060 | 145 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 9,898 | 10,195 | ||
Collectively evaluated for impairment | 58,899 | 67,528 | ||
Loans receivable, at amortized cost or lower of cost or market | 70,398 | 79,731 | ||
Individually evaluated for impairment | 129 | 3 | ||
Collectively evaluated for impairment | 897 | 89 | ||
Total allowance for loan losses | 145 | 145 | 1,060 | 145 |
Manufactured housing | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 1,601 | 2,008 | ||
Loans receivable, at amortized cost or lower of cost or market | 1,601 | 2,008 | ||
Loans acquired with credit deterioration | 34 | 53 | ||
Other consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 2,529 | 172 | ||
Charge-offs | (8,101) | (1,822) | ||
Recoveries | 314 | 21 | ||
Provision for loan and lease losses | 25,906 | 4,158 | ||
Ending Balance | 20,648 | 2,529 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Individually evaluated for impairment | 1,551 | 111 | ||
Collectively evaluated for impairment | 1,176,549 | 73,703 | ||
Loans receivable, at amortized cost or lower of cost or market | 1,178,283 | 74,035 | ||
Individually evaluated for impairment | 73 | 0 | ||
Collectively evaluated for impairment | 20,420 | 2,390 | ||
Total allowance for loan losses | $ 20,648 | $ 172 | 20,648 | 2,529 |
Other consumer | Purchased credit impaired loans | ||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | ||||
Loans acquired with credit deterioration | 183 | 221 | ||
Loans receivable, at amortized cost or lower of cost or market | 183 | 221 | ||
Loans acquired with credit deterioration | $ 155 | $ 139 |
Loans and Leases Receivable a_7
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Summary of Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, total | $ 31,272 | $ 39,118 | |
Unpaid principle balance, total | 34,127 | 42,031 | |
Related allowance | 852 | 845 | |
Average recorded investment, total | 33,532 | 36,980 | $ 36,177 |
Interest income recognized, total | 2,588 | 1,671 | 1,293 |
Multi-family | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 4,117 | 0 | |
Recorded investment net of charge offs, with an allowance recorded | 0 | 1,155 | |
Unpaid principal balance, with no related allowance recorded | 4,117 | 0 | |
Unpaid principal balance, with an allowance recorded | 0 | 1,155 | |
Related allowance | 0 | 539 | |
Average recorded investment, with no related allowance recorded | 1,223 | 537 | 0 |
Average recorded investment, with an allowance recorded | 231 | 231 | 0 |
Interest income recognized, with no related allowance recorded | 239 | 8 | 0 |
Interest income recognized, with an allowance recorded | 0 | 37 | 0 |
Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 3,084 | 13,660 | |
Recorded investment net of charge offs, with an allowance recorded | 1,507 | 4,168 | |
Unpaid principal balance, with no related allowance recorded | 4,726 | 15,263 | |
Unpaid principal balance, with an allowance recorded | 1,507 | 4,351 | |
Related allowance | 523 | 261 | |
Average recorded investment, with no related allowance recorded | 7,439 | 8,831 | 8,865 |
Average recorded investment, with an allowance recorded | 3,723 | 6,504 | 5,984 |
Interest income recognized, with no related allowance recorded | 1,077 | 673 | 214 |
Interest income recognized, with an allowance recorded | 64 | 25 | 230 |
Commercial real estate owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 1,109 | 1,037 | |
Recorded investment net of charge offs, with an allowance recorded | 867 | 32 | |
Unpaid principal balance, with no related allowance recorded | 1,880 | 1,766 | |
Unpaid principal balance, with an allowance recorded | 878 | 32 | |
Related allowance | 83 | 1 | |
Average recorded investment, with no related allowance recorded | 1,111 | 776 | 1,439 |
Average recorded investment, with an allowance recorded | 278 | 443 | 882 |
Interest income recognized, with no related allowance recorded | 55 | 19 | 70 |
Interest income recognized, with an allowance recorded | 54 | 3 | 0 |
Commercial real estate non-owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 76 | 129 | |
Unpaid principal balance, with no related allowance recorded | 187 | 241 | |
Average recorded investment, with no related allowance recorded | 97 | 645 | 898 |
Interest income recognized, with no related allowance recorded | 7 | 48 | 2 |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 4,559 | 4,842 | |
Recorded investment net of charge offs, with an allowance recorded | 4,504 | 3,789 | |
Unpaid principal balance, with no related allowance recorded | 4,861 | 5,128 | |
Unpaid principal balance, with an allowance recorded | 4,522 | 3,789 | |
Related allowance | 44 | 41 | |
Average recorded investment, with no related allowance recorded | 2,766 | 4,129 | 4,617 |
Average recorded investment, with an allowance recorded | 2,523 | 4,566 | 3,307 |
Interest income recognized, with no related allowance recorded | 129 | 151 | 24 |
Interest income recognized, with an allowance recorded | 119 | 131 | 187 |
Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 4,169 | 10,027 | |
Recorded investment net of charge offs, with an allowance recorded | 5,729 | 168 | |
Unpaid principal balance, with no related allowance recorded | 4,169 | 10,027 | |
Unpaid principal balance, with an allowance recorded | 5,729 | 168 | |
Related allowance | 129 | 3 | |
Average recorded investment, with no related allowance recorded | 5,638 | 10,015 | 10,003 |
Average recorded investment, with an allowance recorded | 3,792 | 214 | 131 |
Interest income recognized, with no related allowance recorded | 325 | 561 | 558 |
Interest income recognized, with an allowance recorded | 253 | 14 | 8 |
Other consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment net of charge offs, with no related allowance recorded | 140 | 111 | |
Recorded investment net of charge offs, with an allowance recorded | 1,411 | ||
Unpaid principal balance, with no related allowance recorded | 140 | 111 | |
Unpaid principal balance, with an allowance recorded | 1,411 | ||
Related allowance | 73 | ||
Average recorded investment, with no related allowance recorded | 4,127 | 89 | 51 |
Average recorded investment, with an allowance recorded | 584 | ||
Interest income recognized, with no related allowance recorded | 266 | $ 1 | $ 0 |
Interest income recognized, with an allowance recorded | $ 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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 1,437 | $ 1,675 | $ 8,071 |
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 431 | 0 | 6,437 |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 83 | 352 | 0 |
Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 923 | 1,310 | 1,634 |
Other consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 13 | 0 |
Accruing TDRs | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 11,251 | 11,624 | 12,021 |
Accruing TDRs | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 60 | 64 | 63 |
Accruing TDRs | Commercial real estate owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 13 | 32 | 0 |
Accruing TDRs | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 2,935 | 3,026 | 3,828 |
Accruing TDRs | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 8,243 | 8,502 | 8,130 |
Accruing TDRs | Other consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | 0 |
Nonaccrual TDRs | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 2,046 | 7,572 | 8,408 |
Nonaccrual TDRs | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 23 | 5,273 | 5,939 |
Nonaccrual TDRs | Commercial real estate owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | 0 |
Nonaccrual TDRs | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 631 | 667 | 703 |
Nonaccrual TDRs | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 1,382 | 1,620 | 1,766 |
Nonaccrual TDRs | Other consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 10 | 12 | 0 |
Total | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 13,297 | 19,196 | 20,429 |
Total | Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 83 | 5,337 | 6,002 |
Total | Commercial real estate owner occupied | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 13 | 32 | 0 |
Total | Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 3,566 | 3,693 | 4,531 |
Total | Manufactured housing | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 9,625 | 10,122 | 9,896 |
Total | Other consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 10 | $ 12 | $ 0 |
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 | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 28 | 41 | 40 |
Recorded investment | $ | $ 1,437 | $ 1,675 | $ 8,071 |
Extensions of maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 2 | 2 | 5 |
Recorded investment | $ | $ 514 | $ 60 | $ 6,497 |
Interest-rate reductions | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 26 | 39 | 35 |
Recorded investment | $ | $ 923 | $ 1,615 | $ 1,574 |
Loans and Leases Receivable _10
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 28 | 41 | 40 |
Recorded investment | $ | $ 1,437 | $ 1,675 | $ 8,071 |
Number of loans | Loan | 4 | 4 | 5 |
Recorded investment | $ | $ 154 | $ 92 | $ 211 |
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 1 | 0 | 4 |
Recorded investment | $ | $ 431 | $ 0 | $ 6,437 |
Residential real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 1 | 2 | 0 |
Recorded investment | $ | $ 83 | $ 352 | $ 0 |
Number of loans | Loan | 3 | 4 | 5 |
Recorded investment | $ | $ 73 | $ 92 | $ 211 |
Manufactured housing | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 26 | 38 | 36 |
Recorded investment | $ | $ 923 | $ 1,310 | $ 1,634 |
Number of loans | Loan | 1 | 0 | 0 |
Recorded investment | $ | $ 81 | $ 0 | $ 0 |
Other consumer | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | Loan | 0 | 1 | 0 |
Recorded investment | $ | $ 0 | $ 13 | $ 0 |
Loans and Leases Receivable _11
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Changes in Accretable Discount Related to Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretable yield balance, beginning of period | $ 6,178 | $ 7,825 | $ 10,202 |
Accretion to interest income | (1,144) | (1,455) | (1,673) |
Reclassification from nonaccretable difference and disposals, net | 44 | (192) | (704) |
Accretable yield balance, end of period | $ 5,078 | $ 6,178 | $ 7,825 |
Loans and Leases Receivable _12
Loans and Leases Receivable and Allowance for Loan and Lease Losses - Credit Quality Tables for Loans Receivable Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 7,316,903 | $ 7,138,498 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 5,442,307 | 6,181,911 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 111,157 | 126,180 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 139,744 | 110,080 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,597,188 | 700,664 |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 26,507 | 19,663 |
Multi-family | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,909,274 | 3,285,297 |
Multi-family | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,816,200 | 3,201,822 |
Multi-family | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 69,637 | 55,696 |
Multi-family | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 23,437 | 27,779 |
Multi-family | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Multi-family | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,889,980 | 1,373,800 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,841,074 | 1,306,466 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 26,285 | 30,551 |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 22,621 | 36,783 |
Commercial and industrial | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and industrial | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 552,007 | 577,477 |
Commercial real estate owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 536,777 | 562,639 |
Commercial real estate owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 8,286 | 9,730 |
Commercial real estate owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 6,944 | 5,108 |
Commercial real estate owner occupied | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate owner occupied | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate non-owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,223,529 | 1,125,106 |
Commercial real estate non-owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,129,838 | 1,054,493 |
Commercial real estate non-owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 6,949 | 30,203 |
Commercial real estate non-owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 86,742 | 40,410 |
Commercial real estate non-owner occupied | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate non-owner occupied | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 118,418 | 56,491 |
Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 118,418 | 56,491 |
Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 375,014 | 566,561 |
Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Residential real estate | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 362,962 | 555,016 |
Residential real estate | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 12,052 | 11,545 |
Manufactured housing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 70,398 | 79,731 |
Manufactured housing | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured housing | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured housing | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured housing | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 63,250 | 71,924 |
Manufactured housing | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 7,148 | 7,807 |
Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,178,283 | 74,035 |
Other consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Other consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Other consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 0 | 0 |
Other consumer | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | 1,170,976 | 73,724 |
Other consumer | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans receivable | $ 7,307 | $ 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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Payments to acquire loans receivable | $ 1,164,119 | $ 398,468 | $ 264,090 |
Value at the time of sale of loans | $ 268,872 | $ 107,119 | $ 458,192 |
Loans held-for-investment, purchase price as a percentage of loans outstanding | 100.30% | 99.90% | 99.40% |
Gain (loss) on sale of SBA and other loans | $ 2,770 | $ 3,294 | $ 4,223 |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Payments to acquire loans receivable | 105,858 | 368,402 | 264,090 |
Value at the time of sale of loans | 230,285 | 0 | 191,574 |
Other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Payments to acquire loans receivable | 1,058,261 | 30,066 | 0 |
Multi-family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Value at the time of sale of loans | 0 | 54,638 | 226,831 |
Commercial and industrial (including owner occupied commercial real estate) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Value at the time of sale of loans | 22,267 | 32,263 | 19,974 |
Commercial real estate owner occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Value at the time of sale of loans | $ 16,320 | $ 20,218 | $ 19,813 |
Leases - Lessee Narrative (Deta
Leases - Lessee Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Lessee, operating lease, renewal term | 15 years | |||
Operating lease, right-of-use asset | $ 20,232 | |||
Present value of lease liabilities | 21,358 | |||
Lessee, operating lease, lease not yet commenced, commitment amount | 2,600 | |||
Operating lease, payments | $ 5,900 | |||
Operating leases, rent expense | $ 5,800 | $ 5,200 | ||
Accounting Standards Update 2016-02 | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, right-of-use asset | $ 23,800 | |||
Accrued rent | 1,100 | |||
Present value of lease liabilities | $ 24,900 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, operating lease, remaining lease term | 4 months | |||
Lessee, operating lease, term of contract | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, operating lease, remaining lease term | 8 years | |||
Lessee, operating lease, term of contract | 5 years |
Leases - Right-of-Use Assets an
Leases - Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
ASSETS | |
Operating lease ROU assets | $ 20,232 |
LIABILITIES | |
Operating lease liabilities | $ 21,358 |
Leases - Lease, Cost (Details)
Leases - Lease, Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease, cost | $ 5,823 |
Leases - Maturities of Non-canc
Leases - Maturities of Non-cancelable Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 5,539 |
2021 | 4,792 |
2022 | 4,167 |
2023 | 3,174 |
2024 | 2,100 |
Thereafter | 2,817 |
Total minimum payments | 22,589 |
Less: interest | 1,231 |
Present value of lease liabilities | $ 21,358 |
Leases - Summary of Lease Term
Leases - Summary of Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (years) | 5 years |
Operating lease, weighted average discount rate, percent | 2.90% |
Leases - Lessor Narrative (Deta
Leases - Lessor Narrative (Details) - Equipment | Dec. 31, 2019 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lessor, direct financing lease, term of contract (years) | 24 months |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lessor, direct financing 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 | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Lease receivables | $ 91,762 |
Guaranteed residual assets | 7,435 |
Unguaranteed residual assets | 1,260 |
Deferred initial direct costs | 721 |
Unearned income | (11,300) |
Net investment in direct financing leases | 89,878 |
Investment in operating leases | 107,850 |
Accumulated depreciation | (14,251) |
Deferred initial direct costs | 1,052 |
Net investment in operating leases | 94,651 |
Total lease assets | $ 184,529 |
Bank Premises and Equipment - C
Bank Premises and Equipment - Components of Bank Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 31,059 | $ 30,290 |
Accumulated depreciation and amortization | (21,670) | (19,227) |
Total | 9,389 | 11,063 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 14,218 | 14,080 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 25 years | |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 6,333 | 7,110 |
Furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 10 years | |
IT equipment | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 10,016 | 8,645 |
IT equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 3 years | |
IT equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 5 years | |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 492 | $ 455 |
Automobiles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 3 years | |
Automobiles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 5 years |
Bank Premises and Equipment - N
Bank Premises and Equipment - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation, occupancy and amortization of leasehold improvement | $ 3.4 | $ 2.7 | $ 2.8 |
Deposits - Components of Deposi
Deposits - Components of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits, by Component, Alternative [Abstract] | |||
Demand, non-interest bearing | $ 1,343,391 | $ 1,122,171 | |
Demand, interest bearing | 1,235,292 | 803,948 | |
Savings, including money market deposit accounts | 4,401,719 | 3,481,936 | |
Time, $100,000 and over | 402,161 | 792,370 | |
Time, other | 1,266,373 | 941,811 | |
Total deposits | $ 8,648,936 | $ 7,142,236 | $ 6,800,142 |
Deposits - Schedule of Time Dep
Deposits - Schedule of Time Deposit Maturities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Banking and Thrift [Abstract] | |
2020 | $ 1,467,088 |
2021 | 175,994 |
2022 | 19,489 |
2023 | 2,490 |
2024 | 3,473 |
Total time deposits | $ 1,668,534 |
Deposits - Narrative (Detail)
Deposits - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Time deposits greater than $250,000 | $ 200 | $ 500 |
Brokered demand deposits | 82.1 | 5.2 |
Brokered money market deposits | 300 | 600 |
Brokered certificates of deposit | 1,100 | 800 |
Demand deposit overdrafts reclassified as loans | $ 2.1 | $ 3.4 |
Borrowings - Short Term Borrowi
Borrowings - Short Term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
FHLB advances | $ 500,000 | $ 1,248,070 |
Federal funds purchased | 538,000 | 187,000 |
Total short-term debt | $ 1,038,000 | $ 1,435,070 |
FHLB advances, rate | 2.15% | 2.62% |
Federal funds purchased, rate | 1.60% | 2.60% |
Borrowings - Summary of Bancorp
Borrowings - Summary of Bancorps Short Term Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FHLB Advances | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 1,190,150 | $ 2,622,165 | $ 2,283,250 |
Average balance during the year | $ 793,304 | $ 1,526,180 | $ 1,415,755 |
Weighted-average interest rate during the year | 2.66% | 2.05% | 1.44% |
Federal Funds Purchased | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 600,000 | $ 195,000 | $ 238,000 |
Average balance during the year | $ 271,400 | $ 156,652 | $ 163,466 |
Weighted-average interest rate during the year | 2.28% | 1.92% | 1.19% |
Borrowings - Narrative (Detail)
Borrowings - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Aggregate availability under federal funds line | $ 551 | $ 522 |
Borrowings - FHLB and FRB Advan
Borrowings - FHLB and FRB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
FHLB advances | $ 350,000 | $ 0 |
FHLB advances, interest rate | 2.36% | 0.00% |
Total long-term debt | $ 350,000 | $ 0 |
Total maximum borrowing capacity with the FHLB | 3,445,416 | 4,146,899 |
Total maximum borrowing capacity with the FRB | 136,842 | 102,461 |
Qualifying loans serving as collateral against FHLB and FRB advances | $ 4,496,983 | $ 5,221,957 |
Borrowings - Long-term Debt (De
Borrowings - Long-term Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | $ 350,000,000 | $ 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | 123,630,000 | 123,871,000 |
Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | 181,115,000 | 108,977,000 |
Maturing September 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | $ 24,432,000 | 0 |
Face amount, percentage | 4.50% | |
Issue of subordinated term note | $ 25,000,000 | |
Senior unsecured notes aggregate amount | $ 25,000,000 | |
Redemption price, percent of principal balance | 100.00% | |
Maturing June 2022 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | $ 99,198,000 | 98,911,000 |
Face amount, percentage | 3.95% | |
Issue of subordinated term note | $ 100,000,000 | |
Senior unsecured notes aggregate amount | $ 100,000,000 | |
Redemption price, percent of principal balance | 99.775% | |
Maturing June 2019 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | $ 0 | 24,960,000 |
Face amount, percentage | 4.625% | |
Issue of subordinated term note | $ 25,000,000 | |
Senior unsecured notes aggregate amount | $ 25,000,000 | |
Redemption price, percent of principal balance | 100.00% | |
Maturing December 2034 | Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | $ 72,040,000 | 0 |
Face amount, percentage | 5.375% | |
Issue of subordinated term note | $ 74,750,000 | |
Senior unsecured notes aggregate amount | $ 74,750,000 | |
Redemption price, percent of principal balance | 100.00% | |
Maturing June 2029 | Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Borrowings, carrying amount | $ 109,075,000 | $ 108,977,000 |
Face amount, percentage | 6.125% | |
Issue of subordinated term note | $ 110,000,000 | |
Senior unsecured notes aggregate amount | $ 110,000,000 | |
Redemption price, percent of principal balance | 100.00% | |
London Interbank Offered Rate (LIBOR) | Maturing June 2029 | Senior Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Spread on variable interest rate | 3.443% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Detail) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017shares | Dec. 31, 2019series$ / shares | Nov. 30, 2013 | |
Capital Unit [Line Items] | |||||
Percent of outstanding shares authorized for repurchase | 5.00% | ||||
Premium percent over current book value | 20.00% | ||||
Repurchase of common shares (shares) | shares | 31,159 | 719,200 | 0 | ||
Weighted-average exercise price, outstanding (usd per share) | $ 18.35 | $ 18.04 | |||
Number of preferred stock series outstanding | series | 4 | ||||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, par value $1.00 per share | |||||
Capital Unit [Line Items] | |||||
Preferred stock, redemption price (usd per share) | $ 25 |
Shareholders' Equity - Preferre
Shareholders' Equity - Preferred Stock and Dividends Paid Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Unit [Line Items] | |||
Preferred stock, shares issued | 9,000,000 | 9,000,000 | |
Preferred stock, carrying value | $ 217,471 | $ 217,471 | |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, par value $1.00 per share | |||
Capital Unit [Line Items] | |||
Preferred stock, shares issued | 2,300,000 | 2,300,000 | |
Preferred stock, carrying value | $ 55,569 | $ 55,569 | |
Preferred stock, fixed dividend rate | 7.00% | ||
Preferred stock, dividends paid (usd per share) | $ 1.75 | $ 1.75 | $ 1.75 |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, par value $1.00 per share | London Interbank Offered Rate (LIBOR) | |||
Capital Unit [Line Items] | |||
Preferred stock, floating dividend rate | 5.30% | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, par value $1.00 per share | |||
Capital Unit [Line Items] | |||
Preferred stock, shares issued | 1,000,000 | 1,000,000 | |
Preferred stock, carrying value | $ 24,108 | $ 24,108 | |
Preferred stock, fixed dividend rate | 6.50% | ||
Preferred stock, dividends paid (usd per share) | $ 1.63 | $ 1.63 | 1.63 |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, par value $1.00 per share | London Interbank Offered Rate (LIBOR) | |||
Capital Unit [Line Items] | |||
Preferred stock, floating dividend rate | 5.09% | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share | |||
Capital Unit [Line Items] | |||
Preferred stock, shares issued | 2,300,000 | 2,300,000 | |
Preferred stock, carrying value | $ 55,593 | $ 55,593 | |
Preferred stock, fixed dividend rate | 6.45% | ||
Preferred stock, dividends paid (usd per share) | $ 1.61 | $ 1.61 | 1.61 |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, par value $1.00 per share | London Interbank Offered Rate (LIBOR) | |||
Capital Unit [Line Items] | |||
Preferred stock, floating dividend rate | 5.14% | ||
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, par value $1.00 per share | |||
Capital Unit [Line Items] | |||
Preferred stock, shares issued | 3,400,000 | 3,400,000 | |
Preferred stock, carrying value | $ 82,201 | $ 82,201 | |
Preferred stock, fixed dividend rate | 6.00% | ||
Preferred stock, dividends paid (usd per share) | $ 1.50 | $ 1.50 | $ 1.50 |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, par value $1.00 per share | London Interbank Offered Rate (LIBOR) | |||
Capital Unit [Line Items] | |||
Preferred stock, floating dividend rate | 4.762% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Detail) | 12 Months Ended | ||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)year | Dec. 31, 2019USD ($)SERP_retirement_age | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Retirement Benefits [Abstract] | |||||||
Employers matching contribution | 50.00% | ||||||
Employees first contribution | 6.00% | ||||||
401(k) profit sharing plan, employers matching contribution amount | $ 2,200,000 | $ 2,100,000 | $ 1,900,000 | ||||
SERP annual retirement benefits period (years) | 15 years | ||||||
SERP retirement age | 65 | 65 | |||||
SERP target annual retirement benefit | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | 300,000 | ||
SERP annual rate of return | 7.00% | ||||||
SERP present value of the amount owed | $ 5,500,000 | $ 5,500,000 | $ 5,500,000 | $ 5,500,000 | $ 5,500,000 | $ 4,300,000 |
Share-Based Compensation Plan_2
Share-Based Compensation Plans - Narrative (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)yearshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum exercisable period for stock options (years) | 10 years | |||
Participant vested in an annual deferral accounts | 100.00% | |||
Involuntary termination age (year) | year | 65 | |||
Aggregate number of shares of common stock available for grant (shares) | 2,052,597 | |||
Employee stock purchase plan expense | $ | $ 8,900 | $ 8,600 | $ 6,100 | |
Nonvested awards, compensation cost not yet recognized | $ | 16,400 | |||
Cash received from exercise of options | $ | $ 1,400 | |||
Restricted stock units, granted as long term incentive compensation (percent) | 40.00% | |||
Restricted stock units, vesting upon meeting certain thresholds (percent) | 60.00% | |||
Director | Voting Common Stock, par value $1.00 per share | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Voting common stock issued (shares) | 37,467 | |||
Voting common stock issued | $ | $ 800 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 3 years | |||
Number of shares granted (shares) | 577,230 | |||
Options expiration date (years) | 10 years | |||
Tax benefit from exercise of options | $ | $ 200 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units vesting percentage per year | 33.33% | |||
Award vesting period (years) | 3 years | |||
Number of restricted stock units granted (shares) | 177,627 | |||
Minimum | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 3 years | |||
Maximum | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 5 years | |||
2019 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares that may be issued under plan (shares) | 1,500,000 | |||
2010 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fully diluted tangible book value | 50.00% | |||
Maximum number of shares that may be issued under 2010 plan (shares) | 3,666,667 | |||
2004 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares that may be issued under plan (shares) | 2,750,000 | |||
BRRP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units outstanding (shares) | 190,340 | |||
BRRP | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock units granted (shares) | 5,447 | |||
BRRP | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Receipt deferral percentage under BRRP plan | 25.00% | |||
BRRP | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Receipt deferral percentage under BRRP plan | 50.00% | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock purchase plan expense | $ | $ 170 | $ 141 | $ 132 | |
Purchase price under employee stock purchase plan (percent) | 85.00% | 85.00% | ||
Purchase price under employee stock purchase plan, discount (percent) | 15.00% | 15.00% | ||
2004 and 2019 Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock units granted (shares) | 172,180 | |||
Cliff | BRRP | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 5 years | |||
Cliff | 2004 and 2019 Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 3 years | |||
Number of restricted stock units granted (shares) | 48,142 | |||
Waterfall | 2004 and 2019 Plan | Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period (years) | 3 years |
Share-Based Compensation Plan_3
Share-Based Compensation Plans - Statement of Weighted-Average Assumptions Used and Resulting Weighted-Average Fair Value of Option (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted-average risk-free interest rate | 1.69% | 2.87% | 2.35% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average expected volatility | 29.92% | 25.47% | 25.05% |
Weighted-average expected life (in years) | 7 years | 7 years | 7 years |
Weighted-average fair value of each option granted (usd per share) | $ 5.56 | $ 10.05 | $ 8.68 |
Share-Based Compensation Plan_4
Share-Based Compensation Plans - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price, outstanding (usd per share), beginning balance | $ 18.04 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares, outstanding, beginning balance (shares) | shares | 2,520,526 |
Number of shares, granted (shares) | shares | 577,230 |
Number of shares, exercised (shares) | shares | (82,500) |
Number of shares, expired (shares) | shares | (90,000) |
Number of shares, forfeited (shares) | shares | (95,008) |
Number of shares, outstanding, ending balance (shares) | shares | 2,830,248 |
Exercisable at December 31, 2019 (shares) | shares | 766,739 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price, outstanding (usd per share), beginning balance | $ 22.13 |
Weighted-average exercise price, issued (usd per share) | 19.05 |
Weighted-average exercise price, exercised (usd per share) | 16.79 |
Weighted-average exercise price, expired (usd per share) | 25.19 |
Weighted-average exercise price, forfeited (usd per share) | 21.19 |
Weighted-average exercise price, outstanding (usd per share), ending balance | 21.59 |
Weighted-average exercise price, exercisable (usd per share) | $ 15.52 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted-average remaining contractual term in years, outstanding (years) | 6 years 5 months 12 days |
Weighted-average remaining contractual term in years, exercisable (years) | 3 years 5 months 15 days |
Aggregate intrinsic value, exercised | $ | $ 341 |
Aggregate intrinsic value, outstanding | $ | 9,212 |
Aggregate intrinsic value, exercisable | $ | $ 6,390 |
Share-Based Compensation Plan_5
Share-Based Compensation Plans - Summary of Non-Vested Options (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Non-Vested Options | |
Options | |
Number of shares, outstanding, beginning balance (shares) | shares | 1,671,223 |
Number of shares, granted (shares) | shares | 577,230 |
Number of shares, forfeited (shares) | shares | (95,008) |
Number of shares, outstanding, ending balance (shares) | shares | 2,063,509 |
Weighted- Average exercise price | |
Weighted-average exercise price, outstanding (usd per share), beginning balance | $ / shares | $ 25.10 |
Weighted-average exercise price, granted (usd per share) | $ / shares | 19.05 |
Weighted-average exercise price, forfeited (usd per share) | $ / shares | 21.19 |
Weighted-average exercise price, outstanding (usd per share), ending balance | $ / shares | $ 23.85 |
Vested Options | |
Options | |
Number of shares, vested (shares) | shares | (89,936) |
Weighted- Average exercise price | |
Weighted-average exercise price, vested (usd per share) | $ / shares | $ 19.33 |
Share-Based Compensation Plan_6
Share-Based Compensation Plans - Status of Restricted Stock (Detail) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Restricted Stock Units | |
Restricted Stock Units, outstanding and unvested, beginning balance (shares) | shares | 884,659 |
Restricted Stock Units, granted (shares) | shares | 177,627 |
Restricted Stock Units, vested (shares) | shares | (281,905) |
Restricted Stock Units, forfeited (shares) | shares | (62,700) |
Restricted Stock Units, outstanding and unvested, ending balance (shares) | shares | 717,681 |
Weighted- Average Grant- Date Fair Value | |
Weighted-average grant-date fair value, outstanding and unvested (usd per share), beginning balance | $ / shares | $ 23.99 |
Weighted-average grant-date fair value, granted (usd per share) | $ / shares | 20.27 |
Weighted-average grant-date fair value, vested (usd per share) | $ / shares | 23.22 |
Weighted-average grant-date fair value, forfeited (usd per share) | $ / shares | 23.25 |
Weighted-average grant-date fair value, outstanding and unvested (usd per share), ending balance | $ / shares | $ 23.43 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
Federal | $ 2,973 | $ 4,509 | $ 24,258 | ||||||||
State | 5,304 | 5,547 | 5,666 | ||||||||
Total deferred expense | 8,277 | 10,056 | 29,924 | ||||||||
Deferred | |||||||||||
Federal | 13,175 | 9,702 | 14,885 | ||||||||
State | 1,341 | (399) | 233 | ||||||||
Total deferred expense | 14,516 | 9,303 | 15,118 | ||||||||
Effective income tax rate | $ 7,451 | $ 8,020 | $ 2,491 | $ 4,831 | $ 5,109 | $ 28 | $ 6,820 | $ 7,402 | $ 22,793 | $ 19,359 | $ 45,042 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||||||||||
Federal income tax at statutory rate | $ 21,445 | $ 19,121 | $ 43,357 | ||||||||
State income tax, net of federal benefit | 5,249 | 4,067 | 3,835 | ||||||||
Tax-exempt interest, net of disallowance | (385) | (360) | (381) | ||||||||
Bank-owned life insurance | (1,677) | (1,547) | (2,675) | ||||||||
Tax credits | (1,266) | (444) | 0 | ||||||||
Equity-based compensation | 132 | (547) | (10,741) | ||||||||
Non-deductible executive compensation | 440 | 230 | 654 | ||||||||
Unrecorded basis difference in foreign subsidiaries | (144) | 343 | 4,527 | ||||||||
Enactment of federal tax reform | (21) | 5,505 | |||||||||
Other | (1,001) | (1,483) | 961 | ||||||||
Effective income tax rate | $ 7,451 | $ 8,020 | $ 2,491 | $ 4,831 | $ 5,109 | $ 28 | $ 6,820 | $ 7,402 | $ 22,793 | $ 19,359 | $ 45,042 |
% of pretax income | |||||||||||
Federal income tax at statutory rate | 21.00% | 21.00% | 35.00% | ||||||||
State income tax, net of federal benefit | 5.14% | 4.47% | 3.10% | ||||||||
Tax-exempt interest, net of disallowance | (0.38%) | (0.40%) | (0.31%) | ||||||||
Bank-owned life insurance | (1.64%) | (1.70%) | (2.16%) | ||||||||
Tax credits | (1.24%) | (0.49%) | 0.00% | ||||||||
Equity-based compensation | 0.13% | (0.60%) | (8.67%) | ||||||||
Non-deductible executive compensation | 0.43% | 0.25% | 0.53% | ||||||||
Unrecorded basis difference in foreign subsidiaries | (0.14%) | 0.38% | 3.65% | ||||||||
Enactment of federal tax reform | (0.0002) | 0.0444 | |||||||||
Other | (0.98%) | (1.63%) | 0.78% | ||||||||
Effective income tax rate | 22.32% | 21.26% | 36.36% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Line Items] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryovers | 4,800,000 | |
State and Local Jurisdiction | ||
Income Taxes [Line Items] | ||
Net operating loss carryovers | $ 4,800,000 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Allowance for loan and lease losses | $ 14,616 | $ 10,449 |
Net unrealized losses on securities | 0 | 7,639 |
Net operating losses | 1,494 | 1,212 |
Compensation and benefits | 5,839 | 6,234 |
Cash flow hedge | 5,557 | 324 |
Section 197 intangibles | 1,196 | 923 |
Deferred income | 1,182 | 640 |
Lease liability | 5,523 | |
Other | 1,307 | 2,766 |
Total gross deferred tax assets | 36,714 | 30,187 |
Less: valuation allowance | (486) | 0 |
Net deferred tax assets | 36,228 | 30,187 |
Deferred tax liabilities | ||
Fair value adjustments on acquisitions | (506) | (569) |
Bank premises and equipment | (6,074) | (884) |
Tax qualified lease adjustments | (30,496) | (17,786) |
Right of use asset | (5,232) | |
Net unrealized gains on securities | (5,020) | 0 |
Other | (640) | (746) |
Total deferred tax liabilities | (47,968) | (19,985) |
Net deferred tax asset/(liability) | $ (11,740) | |
Net deferred tax asset/(liability) | $ 10,202 |
Transactions with Executive O_3
Transactions with Executive Officers, Directors, and Principal Shareholders - Schedule of Activity Relating to Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance as of December 31, | $ 5 | $ 0 | $ 238 |
Additions | 47 | 27 | 99 |
Repayments | (52) | (22) | (337) |
Balance as of December 31, | $ 0 | $ 5 | $ 0 |
Transactions with Executive O_4
Transactions with Executive Officers, Directors, and Principal Shareholders - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||
Percentage of gross revenue | 5.00% | |
Percentage of aggregate amount of consolidated assets | 5.00% | |
Director | ||
Related Party Transaction [Line Items] | ||
Related party deposits | $ 9.8 | $ 15.3 |
Minimum | ||
Related Party Transaction [Line Items] | ||
Percentage of participation in equity | 10.00% | |
Letter of Credit | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Outstanding commitment | $ 0.5 | $ 0.5 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance-Sheet Risk - Schedule of Financial Instruments Outstanding Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to fund loans and leases | $ 261,902 | $ 345,608 |
Unfunded commitments to fund mortgage warehouse loans | 1,378,364 | 1,537,900 |
Unfunded commitments under lines of credit and credit cards | 1,065,474 | 867,131 |
Letters of credit | 48,856 | 55,659 |
Other unused commitments | $ 2,736 | $ 4,822 |
Regulatory Capital - Summary of
Regulatory Capital - Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 (to risk-weighted-assets), actual amount | $ 821,810 | $ 745,795 |
Tier 1 capital (to risk-weighted assets), actual amount | 1,039,281 | 963,266 |
Total capital (to risk-weighted assets), actual amount | 1,256,309 | 1,081,962 |
Tier 1 capital (to average assets), actual amount | $ 1,039,281 | $ 963,266 |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 7.984% | 8.964% |
Tier 1 capital (to risk-weighted assets), actual ratio | 10.096% | 11.578% |
Total capital (to risk-weighted assets), actual ratio | 12.205% | 13.005% |
Tier 1 capital (to average assets), actual ratio | 9.258% | 9.665% |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes amount | $ 463,211 | $ 374,388 |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes amount | 617,615 | 499,185 |
Total capital (to risk-weighted assets), for capital adequacy purposes amount | 823,487 | 655,580 |
Tier 1 capital (to average assets), for capital adequacy purposes amount | $ 449,026 | $ 398,668 |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 4.50% | 4.50% |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 6.00% |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 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 | $ 720,551 | $ 530,384 |
Tier 1 (to risk-weighted assets), for Basel III amount | 874,955 | 655,180 |
Total capital (to risk-weighted assets), for Basel III amount | 1,080,827 | 821,575 |
Tier 1 capital (to average assets) for Basel III amount | $ 449,026 | $ 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 (to risk-weighted-assets), actual amount | $ 1,164,652 | $ 1,066,121 |
Tier 1 capital (to risk-weighted assets), actual amount | 1,164,652 | 1,066,121 |
Total capital (to risk-weighted assets), actual amount | 1,330,155 | 1,215,522 |
Tier 1 capital (to average assets), actual amount | $ 1,164,652 | $ 1,066,121 |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 11.323% | 12.822% |
Tier 1 capital (to risk-weighted assets), actual ratio | 11.323% | 12.822% |
Total capital (to risk-weighted assets), actual ratio | 12.933% | 14.619% |
Tier 1 capital (to average assets), actual ratio | 10.379% | 10.699% |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes amount | $ 462,842 | $ 374,160 |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes amount | 617,122 | 498,879 |
Total capital (to risk-weighted assets), for capital adequacy purposes amount | 822,829 | 665,173 |
Tier 1 capital (to average assets), for capital adequacy purposes amount | $ 448,851 | $ 398,570 |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 4.50% | 4.50% |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 6.00% |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 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), to be well capitalized under prompt correction action provisions amount | $ 668,549 | $ 540,453 |
Tier 1 capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount | 822,829 | 665,173 |
Total capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount | 1,028,537 | 831,466 |
Tier 1 capital (to average assets), to be well capitalized under prompt corrective action provisions amount | $ 561,064 | $ 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 | $ 719,976 | $ 530,059 |
Tier 1 (to risk-weighted assets), for Basel III amount | 874,256 | 654,779 |
Total capital (to risk-weighted assets), for Basel III amount | 1,079,964 | 821,072 |
Tier 1 capital (to average assets) for Basel III amount | $ 448,851 | $ 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) | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Maximum buffer, percent of risk weighted assets for 2016 | 0.625% | |||
Maximum buffer, percent of risk weighted assets for 2017 | 1.25% | |||
Maximum buffer, percent of risk weighted assets for 2018 | 1.875% | |||
Maximum buffer, percent of risk weighted assets for 2019 and thereafter | 2.50% | |||
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 4.50% | 4.50% | ||
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 6.00% | ||
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 8.00% | ||
Capital conservation buffer, excess of minimum capital ratio | 2.50% | |||
Customers Bancorp, Inc. | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 7.00% | |||
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.50% | |||
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 10.50% |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale, average life from purchase to sale (days) | 30 days | ||
Unrealized gain (loss) on investment securities | $ 1,299 | $ (1,634) | $ 0 |
Interest-only GNMA securities | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unrealized gain (loss) on investment securities | 600 | ||
Cash settlements | $ 1,500 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | |||
Cash and cash equivalents, carrying value | $ 212,505 | $ 62,135 | |
Cash and cash equivalents, fair value | 212,505 | 62,135 | |
Debt securities, available for sale | 577,198 | 663,294 | |
Interest-only GNMA securities | 16,272 | ||
Equity securities | 2,406 | 1,718 | |
Loans held for sale, carrying value | 486,328 | 1,507 | |
Loans held for sale, fair value | 486,328 | 1,507 | |
Loans receivable, net of allowance for loan losses, carrying value | 9,508,367 | 8,503,522 | |
Loans receivable, net of allowance for loan losses, fair value | 9,853,037 | 8,481,128 | |
FHLB, Federal Reserve Bank and other restricted stock, carrying value | 84,214 | 89,685 | |
FHLB, Federal Reserve Bank and other restricted stock, fair value | 84,214 | 89,685 | |
Derivatives | 23,608 | 14,693 | |
Liabilities: | |||
Deposits, carrying value | 8,648,936 | 7,142,236 | $ 6,800,142 |
Deposits, fair value | 8,652,340 | 7,136,009 | |
Federal funds purchased, carrying value | 538,000 | 187,000 | |
Federal funds purchased, fair value | 538,000 | 187,000 | |
FHLB advances, carrying value | 850,000 | 1,248,070 | |
FHLB advances, fair value | 852,162 | 1,248,046 | |
Other borrowings, carrying value | 123,630 | 123,871 | |
Other borrowings, fair value | 127,603 | 121,718 | |
Subordinated debt, carrying value | 181,115 | 108,977 | |
Subordinated debt, fair value | 192,217 | 110,550 | |
Derivatives | 45,939 | 16,286 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Cash and cash equivalents, fair value | 212,505 | 62,135 | |
Debt securities, available for sale | 0 | 0 | |
Interest-only GNMA securities | 0 | ||
Equity securities | 2,406 | 1,718 | |
Loans held for sale, fair value | 0 | 0 | |
Loans receivable, net of allowance for loan losses, fair value | 0 | 0 | |
FHLB, Federal Reserve Bank and other restricted stock, fair value | 0 | 0 | |
Derivatives | 0 | 0 | |
Liabilities: | |||
Deposits, fair value | 6,980,402 | 5,408,055 | |
Federal funds purchased, fair value | 538,000 | 187,000 | |
FHLB advances, fair value | 0 | 998,070 | |
Other borrowings, fair value | 0 | 0 | |
Subordinated debt, fair value | 0 | 0 | |
Derivatives | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Cash and cash equivalents, fair value | 0 | 0 | |
Debt securities, available for sale | 577,198 | 663,294 | |
Interest-only GNMA securities | 0 | ||
Equity securities | 0 | 0 | |
Loans held for sale, fair value | 2,130 | 1,507 | |
Loans receivable, net of allowance for loan losses, fair value | 2,245,758 | 1,405,420 | |
FHLB, Federal Reserve Bank and other restricted stock, fair value | 84,214 | 89,685 | |
Derivatives | 23,529 | 14,624 | |
Liabilities: | |||
Deposits, fair value | 1,671,938 | 1,727,954 | |
Federal funds purchased, fair value | 0 | 0 | |
FHLB advances, fair value | 852,162 | 249,976 | |
Other borrowings, fair value | 127,603 | 121,718 | |
Subordinated debt, fair value | 192,217 | 110,550 | |
Derivatives | 45,939 | 16,286 | |
Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Cash and cash equivalents, fair value | 0 | 0 | |
Debt securities, available for sale | 0 | 0 | |
Interest-only GNMA securities | 16,272 | ||
Equity securities | 0 | 0 | |
Loans held for sale, fair value | 484,198 | 0 | |
Loans receivable, net of allowance for loan losses, fair value | 7,607,279 | 7,075,708 | |
FHLB, Federal Reserve Bank and other restricted stock, fair value | 0 | 0 | |
Derivatives | 79 | 69 | |
Liabilities: | |||
Deposits, fair value | 0 | 0 | |
Federal funds purchased, fair value | 0 | 0 | |
FHLB advances, fair value | 0 | 0 | |
Other borrowings, fair value | 0 | 0 | |
Subordinated debt, fair value | 0 | 0 | |
Derivatives | $ 0 | $ 0 |
Disclosures about Fair Value _5
Disclosures about Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Impaired loans reserve | $ 852 | $ 845 |
Impaired loans, net of reserves | ||
Assets | ||
Impaired loans reserve | 852 | 845 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Assets | 2,867,372 | 2,086,632 |
Fair Value, Measurements, Recurring | Interest-only GNMA securities | ||
Assets | ||
Assets | 16,272 | |
Fair Value, Measurements, Recurring | Equity securities | ||
Assets | ||
Assets | 2,406 | 1,718 |
Fair Value, Measurements, Recurring | Derivatives | ||
Assets | ||
Assets | 23,608 | 14,693 |
Liabilities | ||
Liabilities | 45,939 | 16,286 |
Fair Value, Measurements, Recurring | Loans held for sale – fair value option | ||
Assets | ||
Assets | 2,130 | 1,507 |
Fair Value, Measurements, Recurring | Loans receivable, mortgage warehouse – fair value option | ||
Assets | ||
Assets | 2,245,758 | 1,405,420 |
Fair Value, Measurements, Recurring | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Assets | ||
Assets | 278,321 | 305,374 |
Fair Value, Measurements, Recurring | Available-for-sale Securities | Corporate notes | ||
Assets | ||
Assets | 298,877 | 357,920 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Assets | 2,406 | 1,718 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest-only GNMA securities | ||
Assets | ||
Assets | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets | ||
Assets | 2,406 | 1,718 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivatives | ||
Assets | ||
Assets | 0 | 0 |
Liabilities | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale – fair value option | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans receivable, mortgage warehouse – fair value option | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Corporate notes | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Assets | 2,848,615 | 2,084,845 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Interest-only GNMA securities | ||
Assets | ||
Assets | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Derivatives | ||
Assets | ||
Assets | 23,529 | 14,624 |
Liabilities | ||
Liabilities | 45,939 | 16,286 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Loans held for sale – fair value option | ||
Assets | ||
Assets | 2,130 | 1,507 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Loans receivable, mortgage warehouse – fair value option | ||
Assets | ||
Assets | 2,245,758 | 1,405,420 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Assets | ||
Assets | 278,321 | 305,374 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Corporate notes | ||
Assets | ||
Assets | 298,877 | 357,920 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Assets | 16,351 | 69 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Interest-only GNMA securities | ||
Assets | ||
Assets | 16,272 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Derivatives | ||
Assets | ||
Assets | 79 | 69 |
Liabilities | ||
Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Loans held for sale – fair value option | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Loans receivable, mortgage warehouse – fair value option | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Corporate notes | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Assets | ||
Assets | 14,350 | 11,497 |
Fair Value, Measurements, Nonrecurring | Impaired loans, net of reserves | ||
Assets | ||
Assets | 14,272 | 10,876 |
Fair Value, Measurements, Nonrecurring | Other real estate owned | ||
Assets | ||
Assets | 78 | 621 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans, net of reserves | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | Impaired loans, net of reserves | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Assets | ||
Assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Assets | 14,350 | 11,497 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired loans, net of reserves | ||
Assets | ||
Assets | 14,272 | 10,876 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Assets | ||
Assets | $ 78 | $ 621 |
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) - Fair Value, Measurements, Recurring - Significant Unobservable Inputs (Level 3) - Residential Mortgage [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at December 31, | $ 69 | $ 60 |
Issuances | 451 | 407 |
Settlements | (441) | (398) |
Balance at December 31, | $ 79 | $ 69 |
Disclosures about Fair Value _7
Disclosures about Fair Value of Financial Instruments - Summary of Financial Assets and Financial Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Estimate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments | $ 79 | |
Fair Value Estimate | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 78 | $ 621 |
Fair Value Estimate | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest-only GNMA securities | 16,272 | |
Fair Value Estimate | Adjusted market bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments | $ 69 | |
Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 26.00% | |
Interest-only GNMA securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest-only GNMA securities | $ 16,272 | |
Interest-only GNMA securities | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 12.00% | |
Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 9.00% | 8.00% |
Mortgages | Adjusted market bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments pull through rate | 85.00% | 90.00% |
Minimum | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Minimum | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Minimum | Interest-only GNMA securities | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 9.00% | |
Minimum | Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | 8.00% |
Minimum | Mortgages | Adjusted market bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments pull through rate | 85.00% | 90.00% |
Maximum | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Maximum | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 50.00% | |
Maximum | Interest-only GNMA securities | Discounted cash flow | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 14.00% | |
Maximum | Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 9.00% | 8.00% |
Maximum | Mortgages | Adjusted market bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loan commitments pull through rate | 85.00% | 90.00% |
Real estate | Fair Value Estimate | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 12,767 | $ 10,260 |
Real estate | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Real estate | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 37.00% | |
Real estate | Minimum | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Real estate | Minimum | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 34.00% | |
Real estate | Maximum | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 10.00% | |
Real estate | Maximum | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 45.00% | |
Commercial and industrial | Fair Value Estimate | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 1,505 | $ 616 |
Commercial and industrial | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 22.00% | |
Commercial and industrial | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Commercial and industrial | Minimum | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Commercial and industrial | Minimum | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% | |
Commercial and industrial | Maximum | Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 50.00% | |
Commercial and industrial | Maximum | Impaired loans | Business Asset Valuation | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Measurement range | 8.00% |
Derivative Instruments And He_3
Derivative Instruments And Hedging Activities - Narrative (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Swapderivative | Dec. 31, 2018USD ($)derivativeSwap | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassification from AOCI to interest expense | $ 6,200 | |
Period for hedging exposure to the variability in future cash flows for forecasted transactions | 54 months | |
Derivative, net liability position, fair value | $ 46,400 | |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash collateral pledged | $ 45,727 | $ 702 |
Not Designated as Hedging Instrument | Minimum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 30 days | |
Not Designated as Hedging Instrument | Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 60 days | |
Not Designated as Hedging Instrument | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of interest rate swaps | Swap | 140 | 98 |
Derivative notional amount | $ 1,400,000 | $ 1,000,000 |
Not Designated as Hedging Instrument | Interest rate caps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of interest rate swaps | Swap | 4 | 0 |
Derivative notional amount | $ 78,600 | |
Not Designated as Hedging Instrument | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | 4,500 | $ 3,600 |
Not Designated as Hedging Instrument | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative notional amount | $ 167,100 | $ 94,900 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of interest rate swaps | derivative | 4 | 6 |
Derivative notional amount | $ 725,000 | $ 750,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | $ 432 | $ 7,529 |
Fair value, derivative liabilities | 45,727 | 9,077 |
Designated as Hedging Instrument | Other assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 0 | 256 |
Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 0 | 256 |
Designated as Hedging Instrument | Other liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 21,374 | 1,502 |
Designated as Hedging Instrument | Other liabilities | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 21,374 | 1,502 |
Not Designated as Hedging Instrument | Other assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 23,608 | 14,437 |
Not Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 23,301 | 14,300 |
Not Designated as Hedging Instrument | Other assets | Interest rate caps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 9 | |
Not Designated as Hedging Instrument | Other assets | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 219 | 68 |
Not Designated as Hedging Instrument | Other assets | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 79 | 69 |
Not Designated as Hedging Instrument | Other liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 24,565 | 14,784 |
Not Designated as Hedging Instrument | Other liabilities | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 24,797 | 14,730 |
Not Designated as Hedging Instrument | Other liabilities | Interest rate caps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 9 | |
Not Designated as Hedging Instrument | Other liabilities | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | (241) | 54 |
Not Designated as Hedging Instrument | Other liabilities | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | $ (1,407) | $ 2,917 | $ (2,634) |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivatives | (15,656) | 1,477 | 406 |
Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | (1,407) | 2,917 | (2,634) |
Interest expense | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | (1,407) | 95 | (2,634) |
Other non-interest income | Interest Rate Contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 0 | 2,822 | 0 |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain on derivative, net | 3,172 | 3,545 | 790 |
Not Designated as Hedging Instrument | Other non-interest income | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain on derivative, net | 2,549 | 3,409 | 604 |
Not Designated as Hedging Instrument | Other non-interest income | Interest rate caps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain on derivative, net | 24 | 0 | 0 |
Not Designated as Hedging Instrument | Other non-interest income | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain on derivative, net | 589 | 127 | 171 |
Not Designated as Hedging Instrument | Mortgage banking income | Residential mortgage loan commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, gain on derivative, net | $ 10 | $ 9 | $ 15 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - Interest rate swaps - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized on the Consolidated Balance Sheets | $ 432 | $ 7,529 |
Financial Instruments | 0 | 0 |
Cash Collateral Received/(Posted) | 0 | 1,860 |
Net Amount | $ 432 | $ 5,669 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - Interest rate swaps - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | ||
Gross Amount of Recognized Liabilities | $ 45,727 | $ 9,077 |
Financial Instruments | 0 | 0 |
Cash Collateral Received/(Posted) | (45,727) | (702) |
Net Amount | $ 0 | $ 8,375 |
Loss Contingencies - Narrative
Loss Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 12, 2019 | Jun. 21, 2019 | Dec. 31, 2019 |
Bureau of the Fiscal Service | |||
Loss Contingencies [Line Items] | |||
Loss contingency, damages sought, value | $ 5.4 | ||
Halbreiner Matter | |||
Loss Contingencies [Line Items] | |||
Payments for legal settlements | $ 1 | ||
United States Department of Education Matter | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 6.5 | ||
Legal reserve | 1 | ||
Minimum | United States Department of Education Matter | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | 1 | ||
Maximum | United States Department of Education Matter | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ 3 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Summary of Condensed Balance Sheets of Parent Company (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash in subsidiary bank | $ 212,505 | $ 62,135 | ||
Other assets | 298,052 | 185,672 | ||
Total assets | 11,520,717 | 9,833,425 | $ 9,839,555 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other borrowings | 123,630 | 123,871 | ||
Total liabilities | 10,467,922 | 8,876,609 | ||
Shareholders' equity | 1,052,795 | 956,816 | $ 920,964 | $ 855,872 |
Total liabilities and shareholders’ equity | 11,520,717 | 9,833,425 | ||
Customers Bancorp | ||||
ASSETS | ||||
Cash in subsidiary bank | 62,643 | 16,684 | ||
Other assets | 6,583 | 3,417 | ||
Total assets | 1,249,798 | 1,081,490 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other borrowings | 195,670 | 123,871 | ||
Other liabilities | 1,333 | 803 | ||
Total liabilities | 197,003 | 124,674 | ||
Shareholders' equity | 1,052,795 | 956,816 | ||
Total liabilities and shareholders’ equity | 1,249,798 | 1,081,490 | ||
Bank Subsidiaries | ||||
ASSETS | ||||
Investments in and receivables due from bank subsidiary | 1,178,166 | 1,059,671 | ||
Non-Bank Subsidiaries | ||||
ASSETS | ||||
Investments in and receivables due from bank subsidiary | $ 2,406 | $ 1,718 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Summary of Condensed Income Statements of Parent Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expense: | |||||||||||
Interest | $ 46,402 | $ 50,983 | $ 47,271 | $ 41,771 | $ 41,779 | $ 46,044 | $ 40,317 | $ 31,933 | $ 186,429 | $ 160,074 | $ 105,507 |
Income tax benefit | (7,451) | (8,020) | (2,491) | (4,831) | (5,109) | (28) | (6,820) | (7,402) | (22,793) | (19,359) | (45,042) |
Net income | 27,526 | 27,066 | 9,296 | 15,440 | 17,862 | 6,029 | 23,663 | 24,142 | 79,327 | 71,695 | 78,837 |
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 14,459 | 14,459 | 14,459 |
Net income available to common shareholders | $ 23,911 | $ 23,451 | $ 5,681 | $ 11,825 | $ 14,247 | $ 2,414 | $ 20,048 | $ 20,527 | 64,868 | 57,236 | 64,378 |
Comprehensive income | 100,740 | ||||||||||
Customers Bancorp | |||||||||||
Operating income: | |||||||||||
Other, including dividends from bank subsidiary | 70,000 | 45,422 | 38,200 | ||||||||
Total operating income | 70,000 | 45,422 | 38,200 | ||||||||
Operating expense: | |||||||||||
Interest | 5,425 | 8,178 | 7,984 | ||||||||
Other | 744 | 1,722 | 1,742 | ||||||||
Total operating expense | 6,169 | 9,900 | 9,726 | ||||||||
Income before taxes and undistributed income of subsidiaries | 63,831 | 35,522 | 28,474 | ||||||||
Income tax benefit | 1,391 | 2,335 | 3,620 | ||||||||
Income before undistributed income of subsidiaries | 65,222 | 37,857 | 32,094 | ||||||||
Equity in undistributed income of subsidiaries | 14,105 | 33,838 | 46,743 | ||||||||
Net income | 79,327 | 71,695 | 78,837 | ||||||||
Preferred stock dividends | 14,459 | 14,459 | 14,459 | ||||||||
Net income available to common shareholders | 64,868 | 57,236 | 64,378 | ||||||||
Comprehensive income | $ 100,740 | $ 50,730 | $ 83,370 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Summary of Condensed Statements of Cash Flows of Parent Company (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||||||||||
Net income | $ 27,526 | $ 27,066 | $ 9,296 | $ 15,440 | $ 17,862 | $ 6,029 | $ 23,663 | $ 24,142 | $ 79,327 | $ 71,695 | $ 78,837 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
(Increase) decrease in other assets | (84,141) | (34,614) | (32,256) | ||||||||
Increase (decrease) in other liabilities | 15,002 | 9,881 | (16,687) | ||||||||
Net Cash Provided by (Used in) Operating Activities | 78,280 | 97,474 | 62,193 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Net Cash Used in Investing Activities | (1,444,435) | (104,098) | (565,125) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from issuance of common stock | 2,150 | 3,585 | 2,716 | ||||||||
Proceeds from issuance of subordinated long-term debt | 72,030 | 0 | 0 | ||||||||
Proceed from issuance of other long-term borrowings | 24,477 | 0 | 98,564 | ||||||||
Repayments of other borrowings | (25,000) | (63,250) | 0 | ||||||||
Exercise and redemption of warrants | 0 | 112 | 1,059 | ||||||||
Purchase of treasury stock | (571) | (12,976) | 0 | ||||||||
Payments of employee taxes withheld from share-based awards | (1,732) | (880) | (14,761) | ||||||||
Preferred stock dividends paid | (14,459) | (14,459) | (14,459) | ||||||||
Net Cash Provided by (Used in) Financing Activities | 1,516,525 | (77,564) | 384,546 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 150,370 | (84,188) | (118,386) | ||||||||
Cash and Cash Equivalents – Beginning | 62,135 | 146,323 | 62,135 | 146,323 | 264,709 | ||||||
Cash and Cash Equivalents – Ending | 212,505 | 62,135 | 212,505 | 62,135 | 146,323 | ||||||
Customers Bancorp | |||||||||||
Cash Flows from Operating Activities: | |||||||||||
Net income | 79,327 | 71,695 | 78,837 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries, net of dividends received from Bank | (14,105) | (33,838) | (46,743) | ||||||||
(Increase) decrease in other assets | (3,166) | (256) | 7,624 | ||||||||
Increase (decrease) in other liabilities | 1,775 | (251) | (1,322) | ||||||||
Net Cash Provided by (Used in) Operating Activities | 63,831 | 37,350 | 38,396 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Payments for investments in and advances to subsidiaries | (74,767) | (29) | (98,725) | ||||||||
Net Cash Used in Investing Activities | (74,767) | (29) | (98,725) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from issuance of common stock | 2,150 | 3,585 | 2,716 | ||||||||
Proceeds from issuance of subordinated long-term debt | 72,030 | 0 | 0 | ||||||||
Proceed from issuance of other long-term borrowings | 24,477 | 0 | 98,564 | ||||||||
Repayments of other borrowings | (25,000) | (63,250) | 0 | ||||||||
Exercise and redemption of warrants | 0 | 112 | 1,059 | ||||||||
Purchase of treasury stock | (571) | (12,976) | 0 | ||||||||
Payments of employee taxes withheld from share-based awards | (1,732) | (880) | (14,761) | ||||||||
Preferred stock dividends paid | (14,459) | (14,459) | (14,459) | ||||||||
Net Cash Provided by (Used in) Financing Activities | 56,895 | (87,868) | 73,119 | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | 45,959 | (50,547) | 12,790 | ||||||||
Cash and Cash Equivalents – Beginning | $ 16,684 | $ 67,231 | 16,684 | 67,231 | 54,441 | ||||||
Cash and Cash Equivalents – Ending | $ 62,643 | $ 16,684 | $ 62,643 | $ 16,684 | $ 67,231 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 123,995 | $ 126,718 | $ 111,950 | $ 101,075 | $ 103,303 | $ 110,045 | $ 107,639 | $ 96,964 | $ 463,739 | $ 417,951 | $ 372,850 |
Interest expense | 46,402 | 50,983 | 47,271 | 41,771 | 41,779 | 46,044 | 40,317 | 31,933 | 186,429 | 160,074 | 105,507 |
Net interest income | 77,593 | 75,735 | 64,679 | 59,304 | 61,524 | 64,001 | 67,322 | 65,031 | 277,310 | 257,877 | 267,343 |
Provision for loan and lease losses | 9,689 | 4,426 | 5,346 | 4,767 | 1,385 | 2,924 | (784) | 2,117 | 24,227 | 5,642 | 6,768 |
Non-interest income | 25,813 | 23,369 | 12,036 | 19,718 | 19,877 | 2,084 | 16,127 | 20,910 | 80,938 | 58,998 | 78,910 |
Non-interest expenses | 58,740 | 59,592 | 59,582 | 53,984 | 57,045 | 57,104 | 53,750 | 52,280 | 231,901 | 220,179 | 215,606 |
Income before income tax expense | 34,977 | 35,086 | 11,787 | 20,271 | 22,971 | 6,057 | 30,483 | 31,544 | 102,120 | 91,054 | 123,879 |
Provision for income taxes | 7,451 | 8,020 | 2,491 | 4,831 | 5,109 | 28 | 6,820 | 7,402 | 22,793 | 19,359 | 45,042 |
Net income | 27,526 | 27,066 | 9,296 | 15,440 | 17,862 | 6,029 | 23,663 | 24,142 | 79,327 | 71,695 | 78,837 |
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 14,459 | 14,459 | 14,459 |
Net income available to common shareholders | $ 23,911 | $ 23,451 | $ 5,681 | $ 11,825 | $ 14,247 | $ 2,414 | $ 20,048 | $ 20,527 | $ 64,868 | $ 57,236 | $ 64,378 |
Earnings per common share: | |||||||||||
Basic earnings per share (usd per share) | $ 0.76 | $ 0.75 | $ 0.18 | $ 0.38 | $ 0.45 | $ 0.08 | $ 0.64 | $ 0.65 | $ 2.08 | $ 1.81 | $ 2.10 |
Diluted earnings per share (usd per share) | $ 0.75 | $ 0.74 | $ 0.18 | $ 0.38 | $ 0.44 | $ 0.07 | $ 0.62 | $ 0.64 | $ 2.05 | $ 1.78 | $ 1.97 |
Loss upon acquisition of interest-only GNMA securities | $ 7,500 | $ 7,476 | $ 0 | $ 0 | |||||||
Loss on sale of investment securities | $ (18,700) | $ 1,001 | $ (18,659) | $ 8,800 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2016Segment | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||
Number of reportable segments (segment) | Segment | 2 | 2 | ||||||||||
Effective income tax rate | 22.32% | 21.26% | 36.36% | |||||||||
Interest income | $ 123,995 | $ 126,718 | $ 111,950 | $ 101,075 | $ 103,303 | $ 110,045 | $ 107,639 | $ 96,964 | $ 463,739 | $ 417,951 | $ 372,850 | |
Interest | 46,402 | 50,983 | 47,271 | 41,771 | 41,779 | 46,044 | 40,317 | 31,933 | 186,429 | 160,074 | 105,507 | |
Net interest income | 77,593 | 75,735 | 64,679 | 59,304 | 61,524 | 64,001 | 67,322 | 65,031 | 277,310 | 257,877 | 267,343 | |
Provision for loan and lease losses | 9,689 | 4,426 | 5,346 | 4,767 | 1,385 | 2,924 | (784) | 2,117 | 24,227 | 5,642 | 6,768 | |
Non-interest income | 25,813 | 23,369 | 12,036 | 19,718 | 19,877 | 2,084 | 16,127 | 20,910 | 80,938 | 58,998 | 78,910 | |
Non-interest expenses | 58,740 | 59,592 | 59,582 | 53,984 | 57,045 | 57,104 | 53,750 | 52,280 | 231,901 | 220,179 | 215,606 | |
Income before income tax expense | 34,977 | 35,086 | 11,787 | 20,271 | 22,971 | 6,057 | 30,483 | 31,544 | 102,120 | 91,054 | 123,879 | |
Income tax expense | 7,451 | 8,020 | 2,491 | 4,831 | 5,109 | 28 | 6,820 | 7,402 | 22,793 | 19,359 | 45,042 | |
Net income | 27,526 | 27,066 | 9,296 | 15,440 | 17,862 | 6,029 | 23,663 | 24,142 | 79,327 | 71,695 | 78,837 | |
Preferred stock dividends | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 3,615 | 14,459 | 14,459 | 14,459 | |
Net income available to common shareholders | 23,911 | $ 23,451 | $ 5,681 | $ 11,825 | 14,247 | $ 2,414 | $ 20,048 | $ 20,527 | 64,868 | 57,236 | 64,378 | |
Goodwill and other intangibles | 15,195 | 16,499 | 15,195 | 16,499 | 16,295 | |||||||
Total assets | 11,520,717 | 9,833,425 | 11,520,717 | 9,833,425 | 9,839,555 | |||||||
Total deposits | 8,648,936 | 7,142,236 | 8,648,936 | 7,142,236 | 6,800,142 | |||||||
Total non-deposit Liabilities | 1,818,986 | 1,734,373 | $ 1,818,986 | $ 1,734,373 | $ 2,118,449 | |||||||
Operating Segments | Customers Bank Business Banking | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Effective income tax rate | 22.55% | 24.56% | 37.67% | |||||||||
Interest income | $ 422,094 | $ 400,948 | $ 359,931 | |||||||||
Interest | 185,513 | 159,674 | 105,438 | |||||||||
Net interest income | 236,581 | 241,274 | 254,493 | |||||||||
Provision for loan and lease losses | 10,091 | 2,928 | 5,638 | |||||||||
Non-interest income | 35,268 | 17,499 | 24,788 | |||||||||
Non-interest expenses | 153,333 | 146,946 | 128,604 | |||||||||
Income before income tax expense | 108,425 | 108,899 | 145,039 | |||||||||
Income tax expense | 24,215 | 23,742 | 53,013 | |||||||||
Net income | 84,210 | 85,157 | 92,026 | |||||||||
Preferred stock dividends | 14,459 | 14,459 | 14,459 | |||||||||
Net income available to common shareholders | 69,751 | 70,698 | 77,567 | |||||||||
Goodwill and other intangibles | 3,629 | 3,629 | 3,629 | 3,629 | 3,630 | |||||||
Total assets | 10,990,550 | 9,688,146 | 10,990,550 | 9,688,146 | 9,769,996 | |||||||
Total deposits | 8,247,836 | 6,766,378 | 8,247,836 | 6,766,378 | 6,400,310 | |||||||
Total non-deposit Liabilities | 1,789,329 | 1,719,225 | 1,789,329 | 1,719,225 | 2,106,919 | |||||||
Operating Segments | BankMobile | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | 41,645 | 17,003 | 12,919 | |||||||||
Interest | 916 | 400 | 69 | |||||||||
Net interest income | 40,729 | 16,603 | 12,850 | |||||||||
Provision for loan and lease losses | 14,136 | 2,714 | 1,130 | |||||||||
Non-interest income | 45,670 | 41,499 | 54,122 | |||||||||
Non-interest expenses | 78,568 | 73,233 | 87,002 | |||||||||
Income before income tax expense | (6,305) | (17,845) | (21,160) | |||||||||
Income tax expense | (1,422) | (4,383) | (7,971) | |||||||||
Net income | (4,883) | (13,462) | (13,189) | |||||||||
Preferred stock dividends | 0 | 0 | 0 | |||||||||
Net income available to common shareholders | (4,883) | (13,462) | (13,189) | |||||||||
Goodwill and other intangibles | 11,566 | 12,870 | 11,566 | 12,870 | 12,665 | |||||||
Total assets | 530,167 | 145,279 | 530,167 | 145,279 | 69,559 | |||||||
Total deposits | 401,100 | 375,858 | 401,100 | 375,858 | 399,832 | |||||||
Total non-deposit Liabilities | $ 29,657 | $ 15,148 | 29,657 | 15,148 | 11,530 | |||||||
Segment Reconciling Items | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Interest income | $ 8,800 | $ 15,700 | $ 12,900 |
Non-Interest Revenues - Narrati
Non-Interest Revenues - Narrative (Details) - BankMobile | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract with customer, timing of satisfaction of performance obligation and payment | three |
Maximum | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract with customer, timing of satisfaction of performance obligation and payment | five |
Non-Interest Revenues - Non-Int
Non-Interest Revenues - Non-Interest Revenue by Business (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 46,720 | $ 43,239 | $ 55,961 |
Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 42,764 | 39,558 | 52,689 |
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,956 | 3,681 | 3,272 |
Interchange and card revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 28,941 | 30,695 | 41,509 |
Interchange and card revenue | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 28,941 | 30,695 | 41,509 |
Deposit fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 12,815 | 7,824 | 10,039 |
Deposit fees | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 12,815 | 7,824 | 10,039 |
University fees - card and disbursement fees | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,008 | 1,039 | 1,141 |
University fees - subscription revenue | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,956 | 3,681 | 3,272 |
Customers Bank Business Banking | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,523 | 2,071 | 1,972 |
Customers Bank Business Banking | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 2,523 | 2,071 | 1,972 |
Customers Bank Business Banking | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Customers Bank Business Banking | Interchange and card revenue | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 781 | 794 | 782 |
Customers Bank Business Banking | Deposit fees | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,742 | 1,277 | 1,190 |
Customers Bank Business Banking | University fees - card and disbursement fees | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
Customers Bank Business Banking | University fees - subscription revenue | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 0 | 0 | 0 |
BankMobile | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 44,197 | 41,168 | 53,989 |
BankMobile | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 40,241 | 37,487 | 50,717 |
BankMobile | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 3,956 | 3,681 | 3,272 |
BankMobile | Interchange and card revenue | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 28,160 | 29,901 | 40,727 |
BankMobile | Deposit fees | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 11,073 | 6,547 | 8,849 |
BankMobile | University fees - card and disbursement fees | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 1,008 | 1,039 | 1,141 |
BankMobile | University fees - subscription revenue | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 3,956 | $ 3,681 | $ 3,272 |
Uncategorized Items - cubi-2019
Label | Element | Value |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 298,000 |