Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Customers Bancorp, Inc. | ||
Entity Central Index Key | 1,488,813 | ||
Trading Symbol | CUBI | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 26,935,953 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 677,880,282 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 53,550 | $ 62,746 |
Interest earning deposits | 211,043 | 308,277 |
Cash and cash equivalents | 264,593 | 371,023 |
Investment securities available for sale, at fair value | 560,253 | 416,685 |
Loans held for sale (includes $1,757,807 and $1,335,668, respectively at fair value) | 1,797,064 | 1,435,459 |
Loans receivable | 5,453,479 | 4,312,173 |
Allowance for loan losses | (35,647) | (30,932) |
Total loans receivable, net of allowance for loan losses | 5,417,832 | 4,281,241 |
FHLB, Federal Reserve Bank, and other restricted stock | 90,841 | 82,002 |
Accrued interest receivable | 19,939 | 15,205 |
FDIC loss sharing receivable | 0 | 2,320 |
Bank premises and equipment, net | 11,531 | 10,810 |
Bank-owned life insurance | 157,211 | 138,676 |
Other real estate owned | 5,057 | 15,371 |
Goodwill and other intangibles | 3,651 | 3,664 |
Other assets | 73,341 | 52,914 |
Total assets | 8,401,313 | 6,825,370 |
Deposits: | ||
Demand, non-interest bearing | 653,679 | 546,436 |
Interest bearing | 5,255,822 | 3,986,102 |
Total deposits | 5,909,501 | 4,532,538 |
Federal funds purchased | 70,000 | 0 |
FHLB advances | 1,625,300 | 1,618,000 |
Other borrowings | 88,250 | 88,250 |
Subordinated debt | 110,000 | 110,000 |
Accrued interest payable and other liabilities | 44,360 | 33,437 |
Total liabilities | $ 7,847,411 | $ 6,382,225 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, par value $1.00 per share; liquidation preference $25.00 per share; 100,000,000 shares authorized, 2,300,000 and 0 shares issued and outstanding as of December 31, 2015 and 2014 | $ 55,569 | $ 0 |
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 27,432,061 and 27,277,789 shares issued as of December 31, 2015 and 2014; 26,901,801 and 26,745,529 shares outstanding as of December 31, 2015 and 2014 | 27,432 | 27,278 |
Additional paid in capital | 362,607 | 355,822 |
Retained earnings | 124,511 | 68,421 |
Accumulated other comprehensive loss, net | (7,984) | (122) |
Treasury stock, at cost (530,260 shares as of December 31, 2015 and 532,260 shares as of December 31, 2014) | (8,233) | (8,254) |
Total shareholders’ equity | 553,902 | 443,145 |
Total liabilities and shareholders’ equity | $ 8,401,313 | $ 6,825,370 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Loans held for sale at fair value | $ 1,757,807 | $ 1,335,668 |
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 | 2,300,000 | 0 |
Preferred stock, shares outstanding | 2,300,000 | 0 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 27,432,061 | 27,277,789 |
Common stock, shares outstanding | 26,901,801 | 26,745,529 |
Treasury stock, shares | 530,260 | 532,260 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Loans receivable, including fees | $ 182,280 | $ 146,388 | $ 82,580 |
Loans held for sale | 51,553 | 30,801 | 38,140 |
Investment securities | 10,405 | 10,386 | 6,314 |
Other | 5,612 | 2,852 | 1,122 |
Total interest income | 249,850 | 190,427 | 128,156 |
Interest expense: | |||
Deposits | 33,982 | 24,454 | 21,020 |
Other borrowings | 6,096 | 5,342 | 2,024 |
FHLB advances | 6,743 | 5,194 | 1,192 |
Subordinated debt | 6,739 | 3,514 | 65 |
Total interest expense | 53,560 | 38,504 | 24,301 |
Net interest income | 196,290 | 151,923 | 103,855 |
Provision for loan losses | 20,566 | 14,747 | 2,236 |
Net interest income after provision for loan losses | 175,724 | 137,176 | 101,619 |
Non-interest income: | |||
Mortgage warehouse transactional fees | 10,394 | 8,233 | 12,962 |
Bank-owned life insurance | 7,006 | 3,702 | 2,482 |
Gains on sales of loans | 4,047 | 3,125 | 852 |
Deposit fees | 944 | 801 | 675 |
Mortgage loan and banking income | 741 | 2,048 | 1,142 |
Gain (loss) on sale of investment securities | (85) | 3,191 | 1,274 |
Other | 4,670 | 4,026 | 3,316 |
Total non-interest income | 27,717 | 25,126 | 22,703 |
Non-interest expense: | |||
Salaries and employee benefits | 58,777 | 46,427 | 35,493 |
Professional services | 11,042 | 7,748 | 5,548 |
FDIC assessments, taxes, and regulatory fees | 10,728 | 11,812 | 5,568 |
Technology, communication and bank operations | 10,596 | 8,798 | 6,607 |
Occupancy | 8,668 | 8,068 | 6,552 |
Other real estate owned | 2,516 | 3,601 | 1,365 |
Advertising and promotion | 1,475 | 1,325 | 1,274 |
Loan workout | 1,127 | 1,706 | 2,245 |
Loss contingency | 0 | 0 | 2,000 |
Other | 10,017 | 9,429 | 7,372 |
Total non-interest expense | 114,946 | 98,914 | 74,024 |
Income before income tax expense | 88,495 | 63,388 | 50,298 |
Income tax expense | 29,912 | 20,174 | 17,604 |
Net income | 58,583 | 43,214 | 32,694 |
Preferred stock dividend | 2,493 | 0 | 0 |
Net income available to common shareholders | $ 56,090 | $ 43,214 | $ 32,694 |
Basic earnings per common share (usd per share) | $ 2.09 | $ 1.62 | $ 1.34 |
Diluted earnings per common share (usd per share) | $ 1.96 | $ 1.55 | $ 1.30 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 58,583 | $ 43,214 | $ 32,694 |
Unrealized gains (losses) on securities: | |||
Unrealized gains (losses) on available-for-sale securities arising during the period | (10,140) | 17,437 | (12,853) |
Income tax effect | 3,759 | (6,103) | 4,499 |
Reclassification adjustment for available-for-sale-security gains included in net income | 85 | (3,191) | (1,274) |
Income tax effect | (32) | 1,117 | 446 |
Net unrealized gains (losses) on securities | (6,328) | 9,260 | (9,182) |
Unrealized losses on cash flow hedges arising during the period | (2,532) | (1,945) | 0 |
Income tax effect | 998 | 681 | 0 |
Net unrealized losses on cash flow hedges | (1,534) | (1,264) | 0 |
Other comprehensive income (loss), net of income tax effect | (7,862) | 7,996 | (9,182) |
Comprehensive income | $ 50,721 | $ 51,210 | $ 23,512 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2012 | $ 269,475 | $ 0 | $ 18,507 | $ 212,090 | $ 38,314 | $ 1,064 | $ (500) |
Beginning balance, preferred stock (shares) at Dec. 31, 2012 | 0 | ||||||
Beginning balance, common stock (shares) at Dec. 31, 2012 | 18,459,502 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 32,694 | 32,694 | |||||
Other comprehensive income (loss) | (9,182) | (9,182) | |||||
Share-based compensation expense | 3,368 | 3,368 | |||||
Issuance of stock, net of offering costs | 97,507 | $ 6,179 | 91,328 | ||||
Issuance of stock, net of offering costs (shares) | 6,179,104 | ||||||
Exercise of warrants | 264 | $ 47 | 217 | ||||
Exercise of warrants (shares) | 46,773 | ||||||
Issuance of common stock under share-based-compensation arrangements | 251 | $ 23 | 228 | ||||
Issuance of common stock under share-based-compensation arrangements (shares) | 23,413 | ||||||
Repurchase of shares | (7,754) | (7,754) | |||||
Repurchase of shares (shares) | (484,641) | ||||||
Ending balance at Dec. 31, 2013 | 386,623 | $ 0 | $ 24,756 | 307,231 | 71,008 | (8,118) | (8,254) |
Ending balance, common stock (shares) at Dec. 31, 2013 | 24,224,151 | ||||||
Ending balance, preferred stock (shares) at Dec. 31, 2013 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 43,214 | 43,214 | |||||
Other comprehensive income (loss) | 7,996 | 7,996 | |||||
Stock dividend | (8) | $ 2,429 | 43,364 | (45,801) | |||
Stock dividend (shares) | 2,429,375 | ||||||
Share-based compensation expense | 4,209 | 4,209 | |||||
Exercise of warrants | 6 | $ 1 | 5 | ||||
Exercise of warrants (shares) | 546 | ||||||
Issuance of common stock under share-based-compensation arrangements | 1,105 | $ 92 | 1,013 | ||||
Issuance of common stock under share-based-compensation arrangements (shares) | 91,457 | ||||||
Ending balance at Dec. 31, 2014 | $ 443,145 | $ 0 | $ 27,278 | 355,822 | 68,421 | (122) | (8,254) |
Ending balance, common stock (shares) at Dec. 31, 2014 | 26,745,529 | 26,745,529 | |||||
Ending balance, preferred stock (shares) at Dec. 31, 2014 | 0 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 58,583 | 58,583 | |||||
Other comprehensive income (loss) | (7,862) | (7,862) | |||||
Share-based compensation expense | 4,862 | 4,862 | |||||
Issuance of stock, net of offering costs | 55,569 | $ 55,569 | |||||
Issuance of stock, net of offering costs (shares) | 2,300,000 | ||||||
Preferred stock dividends | (2,493) | (2,493) | |||||
Exercise of warrants | 98 | $ 8 | 90 | ||||
Exercise of warrants (shares) | 7,611 | ||||||
Issuance of common stock under share-based-compensation arrangements | 2,000 | $ 146 | 1,833 | 21 | |||
Issuance of common stock under share-based-compensation arrangements (shares) | 148,661 | ||||||
Ending balance at Dec. 31, 2015 | $ 553,902 | $ 55,569 | $ 27,432 | $ 362,607 | $ 124,511 | $ (7,984) | $ (8,233) |
Ending balance, common stock (shares) at Dec. 31, 2015 | 26,901,801 | 26,901,801 | |||||
Ending balance, preferred stock (shares) at Dec. 31, 2015 | 2,300,000 | 2,300,000 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ||
Public offering of common stock, costs | $ 1,931 | $ 5,994 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net income | $ 58,583 | $ 43,214 | $ 32,694 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Provision for loan losses, net of change to FDIC receivable and clawback liability | 20,566 | 14,747 | 2,236 |
Loss contingency | 0 | 0 | 2,000 |
Provision for depreciation and amortization | 3,998 | 3,604 | 3,129 |
Share-based compensation expense | 5,661 | 5,237 | 3,368 |
Deferred taxes | (10,092) | (6,187) | 2,210 |
Net amortization of investment securities premiums and discounts | 858 | 821 | 475 |
Loss (gain) on sale of investment securities | 85 | (3,191) | (1,274) |
Gain on sale of mortgages and other loans | (4,479) | (5,344) | (852) |
Origination of loans held for sale | (29,925,763) | (18,138,339) | (20,670,866) |
Proceeds from the sale of loans held for sale | 29,504,104 | 17,553,196 | 21,360,465 |
Increase in FDIC loss sharing receivable net of clawback liability | (2,430) | (2,409) | (1,610) |
Amortization (accretion) of fair value discounts | 832 | (273) | (912) |
Net loss on sales of other real estate owned | 761 | 966 | 732 |
Valuation and other adjustments to other real estate owned, net of FDIC receivable | 992 | 1,979 | 839 |
Earnings on investment in bank-owned life insurance | (7,006) | (3,702) | (2,482) |
Increase in accrued interest receivable and other assets | (12,024) | (16,423) | (15,091) |
Increase in accrued interest payable and other liabilities | 8,706 | 9,606 | 6,974 |
Net Cash (Used in) Provided by Operating Activities | (356,648) | (542,498) | 722,035 |
Cash Flows from Investing Activities | |||
Purchases of investment securities available for sale | (231,703) | (164,940) | (542,110) |
Proceeds from maturities, calls and principal repayments on investment securities available for sale | 76,331 | 49,195 | 25,109 |
Proceeds from sales of investment securities available for sale | 806 | 213,249 | 135,193 |
Net increase in loans | (1,341,133) | (1,814,196) | (1,008,410) |
Purchase of loan portfolios | 0 | (309,927) | (164,033) |
Proceeds from sale of loans held for investment | 248,060 | 162,724 | 11,624 |
Net purchases of bank-owned life insurance | (15,000) | (30,465) | (45,465) |
Proceeds from bank-owned life insurance | 3,384 | 0 | 0 |
Net purchases of FHLB, Federal Reserve Bank, and other restricted stock | (8,839) | (39,578) | (12,261) |
Reimbursements from the FDIC on loss sharing agreements | 3,917 | 5,446 | 6,726 |
Purchases of bank premises and equipment | (2,939) | (1,419) | (3,894) |
Proceeds from sales of other real estate owned | 8,890 | 7,991 | 9,506 |
Net Cash Used in Investing Activities | (1,258,226) | (1,921,920) | (1,588,015) |
Cash Flows from Financing Activities | |||
Net increase in deposits | 1,376,985 | 1,572,648 | 519,179 |
Net increase in short-term borrowed funds from the FHLB | (17,700) | 633,500 | 208,500 |
Net increase in federal funds purchased | 70,000 | 0 | 0 |
Proceeds from long-term FHLB borrowings | 25,000 | 265,000 | 35,000 |
Proceeds from issuance of long-term debt, net | 0 | 133,142 | 60,336 |
Repayment of subordinated debt | 0 | (2,000) | 0 |
Net proceeds from issuance of preferred stock | 55,569 | 0 | 0 |
Preferred stock dividends paid | (2,314) | 0 | 0 |
Exercise and redemption of warrants | 98 | 6 | 264 |
Purchase of treasury stock | 0 | 0 | (7,754) |
Net proceeds from issuance of common stock | 806 | 77 | 97,507 |
Net Cash Provided by Financing Activities | 1,508,444 | 2,602,373 | 913,032 |
Net (Decrease) Increase in Cash and Cash Equivalents | (106,430) | 137,955 | 47,052 |
Cash and Cash Equivalents – Beginning | 371,023 | 233,068 | 186,016 |
Cash and Cash Equivalents – Ending | 264,593 | 371,023 | 233,068 |
Supplementary Cash Flow Information | |||
Interest paid | 51,313 | 37,580 | 24,157 |
Income taxes paid | 38,734 | 29,843 | 9,815 |
Non-cash Items: | |||
Transfer of loans to other real estate owned | 3,467 | 14,042 | 15,003 |
Transfer of loans from held for investment to held for sale | 0 | 164,681 | 0 |
Transfer of loans from held for sale to held for investment | $ 30,365 | $ 18,826 | $ 0 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Customers Bancorp, Inc. (the “Bancorp” or “Customers Bancorp”) is a bank holding company engaged in banking activities through its wholly owned subsidiary, Customers Bank (the “Bank”), collectively referred to as "Customers" herein. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Customers Bancorp, Inc. and its wholly owned subsidiaries, Customers Bank and non-bank subsidiaries, serve residents and businesses in Southeastern Pennsylvania (Bucks, Berks, Chester, Philadelphia and Delaware Counties), Rye, New York (Westchester County), Hamilton, New Jersey (Mercer County), Boston, Massachusetts, Providence, Rhode Island, Portsmouth, New Hampshire (Rockingham County), and Manhattan, New York. The Bank has 14 full-service branches and provides commercial banking products, primarily loans and deposits. Customers Bank provides loan and other financial products to customers through its limited purpose offices in Boston, Massachusetts, Providence, Rhode Island, Portsmouth, New Hampshire, Manhattan and Melville, New York and Philadelphia, Pennsylvania. The Bank also provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Customers Bank is subject to regulation of the Pennsylvania Department of Banking and Securities and the Federal Reserve Bank and is periodically examined by those regulatory authorities. Customers Bancorp has made certain equity investments through its wholly owned subsidiaries CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd. |
Acquisition Activity
Acquisition Activity | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition Activity | ACQUISITION ACTIVITY Acquisition of Higher One, Inc.'s One Account Student Checking and Refund Management Disbursement Services Business On December 15, 2015, Customers announced that it had entered into an Asset Purchase Agreement (the "Agreement") to acquire assets related to the One Account Student Checking and Refund Management Disbursement Services business ("Disbursements") of Higher One, Inc. ("Higher One"). Pursuant to the Agreement, Customers will acquire all assets of the Disbursements business, including all property and equipment, existing contractual relationships with vendors and educational institutions, and all intellectual property, will assume certain normal business related liabilities, and will commit to hire approximately 225 current Higher One employees primarily located in New Haven, Connecticut that manage the Disbursement business and serve the customers. Customers intends to retain these team members in New Haven. Customers will pay Higher One an aggregate of $42 million in cash in connection with the acquisition of the Disbursements business. Under the Agreement, Customers will pay Higher One $17 million in cash at closing and make cash payments of $10 million each on the first and second anniversaries of the closing. Customers also will pay Higher One $5 million in cash for Higher One's services under a transition services agreement. The transaction is subject to approval by Higher One stockholders which is expected to occur in the first quarter of 2016 with the transaction closing expected no later than July 1, 2016. Acquisition of Loan Portfolio In the first quarter 2014, Customers Bank purchased $277.9 million of residential adjustable-rate jumbo mortgage loans (indexed to one-year LIBOR) from Michigan-based Flagstar Bank. The purchase price was 100.75% of loans outstanding. In first quarter 2013, Customers Bank completed the purchase of certain commercial loans from Michigan-based Flagstar Bank. Under the terms of the agreement, Customers Bank acquired $182.3 million in commercial loan and related commitments, of which $155.1 million was drawn at the date of acquisition. Also, as part of the agreement, Customers Bank assumed the leases for two of Flagstar’s commercial lending offices in New England. The purchase price was 98.7% of loans outstanding. |
Significant Accounting Policies
Significant Accounting Policies and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The accounting and reporting policies of Customers Bancorp, Inc. and subsidiaries are in conformity with accounting principles generally accepted in the United States of America and predominant practices of the banking industry. The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, credit deterioration and expected cash flows of purchased-credit-impaired loans, FDIC indemnification asset and related clawback liability, valuation of deferred tax assets, other-than-temporary impairment losses on securities, fair values of financial instruments, and annual goodwill impairment analysis. Certain amounts reported in the 2014 and 2013 financial statements have been reclassified to conform to the 2015 presentation. These reclassifications did not significantly impact Customers financial position or results of operations. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the parent company and its wholly owned subsidiaries: Customers Bank, CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd. Customers Bank includes the accounts of its wholly owned subsidiary CIC, Inc. and other subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents and Statements of Cash Flows Cash and cash equivalents include cash on hand, amounts due from banks, and interest-bearing deposits with banks with a maturity date of three months or less and are recorded at cost. The carrying value of cash and cash equivalents is a reasonable estimate of its approximate fair value. Changes in the balances of cash and cash equivalents are reported in 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. Cash used upon initial funding of Customers' mortgage warehousing lending transactions and proceeds received when the mortgage loans are sold into the secondary market are classified as operating activities within the statement of cash flows. Restrictions on Cash and Amounts due from Banks Customers Bank is required to maintain average balances on hand or with the Federal Reserve Bank. At December 31, 2015 and 2014 , these reserve balances were $73.2 million and $61.2 million , respectively. Investment Securities Customers acquires securities, largely mortgage-backed securities, to effectively utilize cash and capital and to generate earnings. Security transactions are recorded as of the trade date. Securities are classified at the time of acquisition as available for sale, held to maturity, or trading, and their designation determines their accounting as follows: Available for sale : Investments securities classified as available for sale are those debt and equity securities that Customers intends to hold for an indefinite period of time but not necessarily to maturity. Investment securities available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in accumulated other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings and recorded at the trade date. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Held to maturity : Investment securities classified as held to maturity are those debt securities that Customers has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premiums and accretion of discounts, computed by a method which approximates the interest method over the terms of the securities. There are no securities classified as held to maturity as of December 31, 2015 or 2014 . Trading: Investment securities classified as trading are those debt and equity securities that management intends to actively trade. These securities are carried at their current fair value, with changes in fair value reported in income. Customers does not actively trade securities. For available-for-sale and held-to-maturity securities, management periodically assesses whether the securities are other than temporarily impaired. Other-than-temporary impairment means that management believes a security’s decline in fair value below its amortized cost basis is due to factors that could include the issuer’s inability to pay interest or dividends, its potential for default, and/or other factors. When a held-to-maturity or available-for-sale debt security is assessed for other-than-temporary impairment, management has to first consider (a) whether Customers intends to sell the security, and (b) whether it is more likely than not that Customers will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an other-than-temporary impairment loss is recognized in the consolidated statements of income equal to the full amount of the decline in fair value below amortized cost. If neither of these circumstances applies to a security, but Customers does not expect to recover the entire amortized cost, an other-than-temporary impairment has occurred that must be separated into two categories: (a) the amount related to credit loss, and (b) the amount related to other factors. In assessing the level of other-than-temporary impairment attributable to credit loss, management compares the present value of cash flows expected to be collected with the amortized cost basis of the security. The portion of the total other-than-temporary impairment related to credit loss is recognized in earnings (as the difference between the fair value and the present value of the estimated cash flows), while the amount related to other factors is recognized in other comprehensive income. The total other-than-temporary impairment loss is presented in the statement of income, less the portion recognized in other comprehensive income. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. For marketable equity securities, the Bancorp considers the issuer’s financial condition, capital strength and near term prospects to determine whether an impairment is temporary or other-than-temporary. The Bancorp also considers the volatility of a security’s price in comparison to the market as a whole and any recoveries or declines in fair value subsequent to the balance sheet date. If management determines that the impairment is other-than-temporary, the entire amount of the impairment as of the balance sheet date is recognized in earnings even if the decision to sell the security has not been made. The fair value of the security becomes the new amortized cost basis of the investment and is not adjusted for subsequent recoveries in fair value. Loan Accounting Framework 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 • Purchased loans • Loans receivable covered under Loss Sharing Agreements with the FDIC. The following provides a detailed discussion of the accounting for loans in these categories: Loans Held for Sale and Loans at Fair Value Loans originated or acquired by the Bank with the intent to sell 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 made. These loans are generally sold on a non-recourse basis with servicing released. Gains and losses on the sale of loans accounted for at lower of cost or fair value are recognized in earnings based on the difference between the proceeds received and the carrying amount of the loans, inclusive of deferred origination fees and costs, if any. As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or acquired with the intent to sell may subsequently be designated as held for sale. These loans are transferred to the held-for-sale portfolio at the lower of amortized cost or fair value. Loans originated or acquired by the Bank with the intent to sell for which fair value accounting is elected are marked to fair value with any difference between the proceeds received and the carrying amount of the loan 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. Certain mortgage warehouse lending transactions subject to master repurchase agreements are designated as held for sale and reported at fair value based on an election to account for the loans at fair value. Pursuant to these agreements, the Bank funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded loans (i.e., the purchase event) and receives proceeds directly from third party investors when the loans are sold into the secondary market (i.e, the repurchase event). An allowance for loan losses is not maintained on loans designated as held for sale or reported at fair value. Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the level-yield method without anticipating prepayments. The Bank is generally amortizing these amounts over the contractual life of the loans. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or when management has doubts about further collectibility of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is well secured. When a loan is placed on non-accrual status, unpaid accrued interest credited to income is reversed. Interest received on non-accrual loans is applied against principal until all principal has been recovered. Thereafter, payments are recognized as interest income until all unpaid amounts have been received. Generally, loans are restored to accrual status when the obligation is brought current and has performed in accordance with the contractual terms for a minimum of six months and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. 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 deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) 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 (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Purchased Loans Customers believes that the varying circumstances under which it purchases loans and the diverse credit quality of loans purchased should drive the decision as to whether loans in a portfolio should be deemed to be purchased-credit-impaired loans. Therefore, loan purchases are evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans acquired that do not have evidence of credit deterioration at the purchase date are accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs, and loans acquired with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans that are purchased that do not have evidence of credit deterioration Purchased performing loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected For purchases of this type of loan, 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, which 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 result in a reversal of the provision for loan losses to the extent of prior charges, or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows. Purchased-credit-impaired loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have common 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, the Bank 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 then-current market conditions. If the timing and/or amounts of expected cash flows on purchased-credit-impaired loans were determined not to be reasonably estimable, no interest would be accreted and the loans would be reported as non-accrual loans; however, when the timing and amounts of expected cash flows for purchased-credit-impaired loans are reasonably estimable, interest is being accreted and the loans are being reported as performing loans. Loans Receivable Covered Under Loss Sharing Agreements Loans acquired in the FDIC assisted transactions in 2010 from USA Bank and ISN Bank are subject to loss sharing agreements with the FDIC and are referred to as “covered loans.” The period to submit losses under the FDIC loss sharing arrangements for non-single family loans expired in third quarter 2015. The period to submit losses under the FDIC loss sharing arrangements for single family loans expires in third quarter 2017. The final maturity of the FDIC loss sharing arrangements occurs in third quarter 2020. Outstanding balances for covered loans were $13.8 million and $42.2 million as of December 31, 2015 and 2014 , respectively. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through provisions for loan losses. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses is maintained at a level considered appropriate to absorb probable incurred loan losses inherent in the loan portfolio as of the reporting date. The Bank disaggregates its loan portfolio into groups of loans with similar risk characteristics for purposes of estimating the allowance for loan losses. The Bank’s loan groups include multi-family, commercial and industrial, commercial real estate, construction, residential real estate, manufactured housing, consumer, and PCI loans. The Bank further disaggregates 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 segregated. The total allowance for loan losses consists of an allowance for impaired loans, a general allowance for losses, and may also include residual non-specific reserve amounts. The allowance for loan losses is maintained at a level considered adequate to provide for losses that are estimated to have been incurred. Management performs a quarterly assessment of the adequacy of the allowance for loan losses, which is based on the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions 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. The Bank’s current methodology for determining the allowance for loan losses is based on historical loss rates, peer and industry data, current economic conditions, risk ratings, specific allocations on loans identified as impaired, and other qualitative adjustments. The impaired loan component of the allowance for loan losses relates to loans for which it is probable that the Bank will be unable to collect all contractual principal and interest due. For such loans, an allowance is established when the (i) discounted cash flows, (ii) collateral value, or (iii) the impaired loan value is lower than the carrying value of the loan. The general component of the allowance for loan losses covers groups of loans by loan class, including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity loans, home equity lines of credit and other consumer loans. These pools of loans are evaluated for loss exposure based upon loan risk ratings and industry or Customers' historical loss rates for each of these groups of loans. After determining the appropriate historical loss rate for each group of loans, management considers those 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 considers includes 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 and classified loans. • Lending policies and procedures, including underwriting standards and historical-based loss/collection, charge-off, and recovery practices. • Nature and volume of the portfolio including lending concentrations. • Experience, ability, and depth of lending management and staff. 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 specific and general losses in the portfolio. Commercial and industrial loans are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay their obligation as agreed. Commercial and industrial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan facility. Accordingly, the repayment of a commercial and industrial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans will rely on the value associated with the project upon completion. These cost and valuation amounts used are estimates and may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of developed property. These loans are closely monitored by onsite 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. 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 and risk-rating criteria. The Bank 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 represent loans that are secured by the manufactured housing unit where the borrower may or may not own the underlying real estate and therefore have a higher risk than a residential real estate loan. Other consumer loans consist of loans to individuals originated through the Bank’s retail network and are typically unsecured or secured by personal property. Consumer loans have a greater credit risk than residential loans because of the difference in the underlying collateral, if any. The application of various federal and state bankruptcy and insolvency laws may limit the amount that can be recovered on such loans. Delinquency status and other borrower characteristics are used to monitor loans and identify credit risks, and the general reserves are established based on the expected net charge-offs, adjusted for qualitative factors. Loss rates are based on the average net charge-off history, either industry or Customers, by loan group. Historical loss rates may be adjusted for significant factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. Factors that management considers in the analysis include the effects of the national and local economies; trends in the nature and volume of delinquencies, charge-offs and non-accrual loans; changes in loan mix; changes in risk management and loan administration; and changes in internal lending policies, credit standards and collection practices. Charge-offs on commercial and industrial, construction, multi-family and commercial real estate loans are recorded when management estimates that there are insufficient cash flows to repay the loan contractual obligation based upon financial information available and valuation of the underlying collateral. Additionally, the Bank 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 reserve associated with any impaired loans. Accordingly, the Bank may charge-off a loan to a value below the net appraised value if it believes that an expeditious liquidation is desirable in 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, the Bank may carry a loan at a value that is in excess of the appraised value certain circumstances, such as the Bank has a guarantee from a borrower that the Bank believes has realizable value. In evaluating the strength of any guarantee, the Bank evaluates the financial wherewithal of the guarantor, the guarantor’s reputation, and the guarantor’s willingness and desire to work with the Bank. The Bank then conducts a review of the strength of a guarantee on a frequency established as the circumstances and conditions of the borrower warrant. The Bank records charge-offs for residential real estate, consumer, and manufactured housing loans after 120 days of delinquency or sooner when cash flows are determined to be insufficient for repayment. The Bank may also charge-off these loans below the net appraised valuation if the Bank holds a junior mortgage position in a piece of collateral whereby the risk to acquiring control of the property through the purchase of the senior mortgage position is deemed to potentially increase the risk of loss upon liquidation due to the amount of time to ultimately market the property and the volatile market conditions. In such cases, the Bank may abandon its junior mortgage and charge-off the loan balance in full. Estimates of cash flows expected to be collected for purchased credit impaired loans are updated each reporting period. If the Bank estimates decreases in expected cash flows to be collected after acquisition, the Bank charges the provision for loan losses and establishes an allowance for loan losses. Credit Quality Factors Commercial and industrial, multi-family, commercial real estate, residential real estate and construction loans are each assigned a numerical rating of risk based on an internal risk rating system. The risk rating indicates management's estimate of the credit quality and the rating is assigned at loan origination and reviewed on a periodic or “as needed” basis. Consumer and manufactured housing loans are evaluated based on the payment activity of the loan. Risk ratings are not established for home equity loans, consumer loans, manufactured housing loans, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based on aggregate payment history (through the monitoring of delinquency levels and trends). For additional information about credit quality factor ratings refer to “NOTE 8 – “ LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES.” Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is 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 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 sell. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Bank's 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, licensed appraiser outside of the Bank using observable market data. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports. Goodwill Goodwill represents the excess of cost over the identifiable net assets of businesses acquired. Goodwill is recognized as an asset and is reviewed for impairment annually as of October 31 and between annual tests when events and circumstances indicate that impairment may have occurred. Impairment is a condition that exists when the carrying amount of goodwill exceeds its implied fair value. A qualitative factor test can be performed to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the results of the qualitative review indicate that it is unlikely (less than 50% probability) that the carrying value of the reporting unit exceeds its fair value, no further evaluation needs to be performed. As part of its qualitative assessment, Customers reviewed regional and national trends in current and expected economic conditions, examining indicators such as GDP growth, interest rates and unemployment rates. Customers also considered its own historical performance, expectations of future perfo |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following are the components and results of the Bancorp’s earnings per share ("EPS") calculation for the periods presented. For the Years Ended December 31, 2015 2014 2013 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 56,090 $ 43,214 $ 32,694 Weighted-average number of common shares outstanding – basic 26,844,545 26,719,626 24,485,078 Share-based compensation plans 1,516,297 968,671 464,054 Warrants 324,097 250,707 198,520 Weighted-average number of common shares – diluted 28,684,939 27,939,004 25,147,652 Basic earnings per share $ 2.09 $ 1.62 $ 1.34 Diluted earnings per share 1.96 1.55 1.30 The following is a summary of securities that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS because to do so would have been anti-dilutive for the periods presented. For the Years Ended December 31, 2015 2014 2013 Anti-dilutive securities: Share-based compensation awards 606,095 135,861 819,539 Warrants 52,242 118,745 118,745 Total anti-dilutive securities 658,337 254,606 938,284 |
Changes In Accumulated Other Co
Changes In Accumulated Other Comprehensive Income (Loss) By Component | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) The following tables present the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2015 and 2014 . Available-for-sale Securities Total Unrealized Foreign Unrealized Unrealized Gains Currency Gains Loss on Cash (amounts in thousands) (Losses) (2) Items (Losses) Flow Hedge Total Balance, January 1, 2014 $ (8,118 ) $ — $ (8,118 ) $ — $ (8,118 ) Current period: Other comprehensive income (loss) before reclassifications 11,334 — 11,334 (1,264 ) 10,070 Amounts reclassified from accumulated other comprehensive income to net income (3) (2,074 ) — (2,074 ) — (2,074 ) Net current-period other comprehensive income (loss) 9,260 — 9,260 (1,264 ) 7,996 Balance, December 31, 2014 1,142 — 1,142 (1,264 ) (122 ) Current period: Other comprehensive income (loss) before reclassifications (5,797 ) (584 ) (6,381 ) (1,534 ) (7,915 ) Amounts reclassified from accumulated other comprehensive income to net income (3) 53 — 53 — 53 Net current-period other comprehensive income (loss) (5,744 ) (584 ) (6,328 ) (1,534 ) (7,862 ) Balance, December 31, 2015 $ (4,602 ) $ (584 ) $ (5,186 ) $ (2,798 ) $ (7,984 ) (1) All amounts are net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. (2) Includes immaterial gains or losses on foreign currency items for the year ended December 31, 2014. (3) Reclassification amounts are reported as gain or loss on sale of investment securities on the Consolidated Statements of Income. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities are summarized as follows: December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 506,111 $ 1,453 $ (6,590 ) $ 500,974 Corporate notes (2) 39,925 320 (178 ) 40,067 Equity securities (3) 22,514 — (3,302 ) 19,212 Total $ 568,550 $ 1,773 $ (10,070 ) $ 560,253 (1) Consists of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Includes subordinated debt issued by other bank holding companies. (3) Consists primarily of equity securities issued by a foreign entity. December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 376,854 $ 2,805 $ (2,348 ) $ 377,311 Corporate notes (2) 15,000 104 — 15,104 Equity securities (3) 23,074 1,197 (1 ) 24,270 Total $ 414,928 $ 4,106 $ (2,349 ) $ 416,685 (1) Consists primarily of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Includes subordinated debt issued by other bank holding companies. (3) Consists primarily of equity securities issued by a foreign entity. The following table shows proceeds from the sale of available-for-sale investment securities, gross gains, and gross losses on those sales of securities: For the Year Ended December 31, 2015 2014 2013 (amounts in thousands) Proceeds from sale of available-for-sale investment securities $ 806 $ 213,249 $ 135,193 Gross gains $ — $ 3,191 $ 1,274 Gross losses (85 ) — — Net gains $ (85 ) $ 3,191 $ 1,274 These gains and losses were determined using the specific identification method and were included in non-interest income. The following table shows debt investment securities by stated maturity. Investment securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date: December 31, 2015 Available for Sale Amortized Cost Fair Value (amounts in thousands) Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 32,925 33,112 Due after ten years 7,000 6,955 Mortgage-backed securities 506,111 500,974 Total debt securities $ 546,036 $ 541,041 Gross unrealized losses and fair value of Customers' investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: December 31, 2015 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 305,702 $ (4,384 ) $ 57,357 $ (2,206 ) $ 363,059 $ (6,590 ) Corporate notes (2) 9,748 (178 ) — — 9,748 (178 ) Equity securities (3) 19,206 (3,301 ) 6 (1 ) 19,212 (3,302 ) Total $ 334,656 $ (7,863 ) $ 57,363 $ (2,207 ) $ 392,019 $ (10,070 ) (1) Consists of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Includes subordinated debt issued by other bank holding companies. (3) Consists primarily of equity securities issued by a foreign entity. December 31, 2014 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 60,388 $ (81 ) $ 80,426 $ (2,267 ) $ 140,814 $ (2,348 ) Equity securities (2) — — 5 (1 ) 5 (1 ) Total $ 60,388 $ (81 ) $ 80,431 $ (2,268 ) $ 140,819 $ (2,349 ) (1) Consists primarily of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Consists primarily of equity securities issued by a foreign entity. At December 31, 2015 , there were twenty-six available-for-sale investment securities in the less-than-twelve-month category and sixteen available-for-sale investment securities in the twelve-month-or-more category. The unrealized losses on the mortgage backed securities are guaranteed by government-sponsored entities and primarily relate to changes in market interest rates. All amounts are expected to be recovered when market prices recover or at maturity. The unrealized losses on the equity securities reflect decreases in market price and adverse changes in foreign currency exchange rates. Customers evaluated the financial condition and capital strength of the issuer of these securities and concluded that the decline in fair value was temporary and estimated the value could reasonably recover by way of increases in market price or positive changes in foreign currency exchange rates. Customers intends to hold these securities for the foreseeable future, and does not intend to sell the securities before the price recovers. Customers considers it more likely than not that it will not be required to sell the securities. Accordingly, Customers concluded that the securities are not other-than-temporarily impaired as of December 31, 2015 . At December 31, 2015 and 2014 , Customers Bank had pledged investment securities aggregating $299.8 million and $376.9 million fair value, respectively, as collateral against its borrowings primarily with the FHLB and an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities. |
Loans Held for Sale
Loans Held for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Receivables Held-for-sale [Abstract] | |
Loans Held for Sale | LOANS HELD FOR SALE The composition of loans held for sale as of December 31, 2015 and 2014 was as follows: December 31, 2015 2014 (amounts in thousands) Commercial loans: Mortgage warehouse loans at fair value $ 1,754,950 $ 1,332,019 Multi-family loans at lower of cost or fair value 39,257 99,791 Total commercial loans held for sale 1,794,207 1,431,810 Consumer loans: Residential mortgage loans at fair value 2,857 3,649 Total loans held for sale $ 1,797,064 $ 1,435,459 Effective September 30, 2015, Customers transferred $30.4 million of multi-family loans from held for sale to loans receivable (held for investment) because the Bank no longer has the intent to sell these loans. Customers transferred these loans at their carrying value, which was lower than the estimated fair value at the time of transfer. Effective September 30, 2014, Customers transferred $164.7 million of multi-family loans from loans receivable to held for sale because Customers was actively marketing these loans and no longer had the intent to retain these loans in its portfolio. Effective December 31, 2014, Customers transferred $18.8 million of these loans back to loans receivable because Customers no longer had the intent to sell these loans. Customers transferred these loans at their amortized cost, which was lower than the estimated fair value at the time of transfer. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES Because the period to submit losses for non-single family loans covered under the FDIC loss sharing agreements expired in third quarter 2015, and the balance of covered loans at December 31, 2015 and 2014 was insignificant to Customers' total loan portfolio, the disaggregation between covered and non-covered loans is no longer presented in the disclosures that follow. Additional disaggregation of the commercial real estate loan portfolio between owner occupied and non-owner occupied is presented. Prior period amounts have been reclassified to conform with the current period presentation. The following table presents loans receivable as of December 31, 2015 and 2014 . December 31, 2015 2014 (amounts in thousands) Commercial: Multi-family $ 2,909,439 $ 2,208,405 Commercial and industrial (including owner occupied commercial real estate) 1,111,400 785,669 Commercial real estate non-owner occupied 956,255 839,310 Construction 87,240 49,718 Total commercial loans 5,064,334 3,883,102 Consumer: Residential real estate 271,613 297,395 Manufactured housing 113,490 126,731 Other 3,708 4,433 Total consumer loans 388,811 428,559 Total loans receivable 5,453,145 4,311,661 Deferred costs and unamortized premiums, net 334 512 Allowance for loan losses (35,647 ) (30,932 ) Loans receivable, net of allowance for loan losses $ 5,417,832 $ 4,281,241 The following tables summarize loans receivable by loan type and performance status as of December 31, 2015 and 2014 : December 31, 2015 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 2,905,789 $ 3,650 $ 2,909,439 Commercial and industrial 39 — 39 1,973 799,595 1,552 803,159 Commercial real estate - owner occupied 268 — 268 2,700 292,312 12,961 308,241 Commercial real estate - non-owner occupied 1,997 — 1,997 1,307 940,895 12,056 956,255 Construction — — — — 87,006 234 87,240 Residential real estate 2,986 — 2,986 2,202 257,984 8,441 271,613 Manufactured housing (5) 3,752 2,805 6,557 2,449 101,132 3,352 113,490 Other consumer 107 — 107 140 3,227 234 3,708 Total $ 9,149 $ 2,805 $ 11,954 $ 10,771 $ 5,387,940 $ 42,480 $ 5,453,145 December 31, 2014 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 2,204,059 $ 4,346 $ 2,208,405 Commercial and industrial 884 — 884 2,513 543,245 3,293 549,935 Commercial real estate - owner occupied — — — 2,514 217,187 16,033 235,734 Commercial real estate - non-owner occupied — — — 1,460 822,046 15,804 839,310 Construction — — — 2,325 44,483 2,910 49,718 Residential real estate 1,226 — 1,226 1,855 284,347 9,967 297,395 Manufactured housing (5) 6,324 4,388 10,712 931 111,072 4,016 126,731 Other consumer 147 — 147 135 3,903 248 4,433 Total $ 8,581 $ 4,388 $ 12,969 $ 11,733 $ 4,230,342 $ 56,617 $ 4,311,661 (1) Includes past due loans that are accruing interest because collection is considered probable. (2) Loans where next payment due is less than 30 days from the report date. (3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. Allowance for Loan Losses and the FDIC Loss Sharing Receivable and Clawback Liability Losses incurred on covered loans are eligible for partial reimbursement by the FDIC. Subsequent to the purchase date, the expected cash flows on the covered loans are subject to evaluation. Decreases in the present value of expected cash flows on the covered loans are recognized by increasing the allowance for loan losses with a related charge to the provision for loan losses. At the same time, the FDIC indemnification asset is increased reflecting an estimated future collection from the FDIC, which is recorded as a reduction to the provision for loan losses. If the expected cash flows on the covered loans increase such that a previously recorded impairment can be reversed, the Bank records a reduction in the allowance for loan losses (with a related credit to the provision for loan losses) accompanied by a reduction in the FDIC receivable balance (with a related charge to the provision for loan losses). Increases in expected cash flows on covered loans and decreases in expected cash flows of the FDIC loss sharing receivable, when there are no previously recorded impairments, are considered together and recognized over the remaining life of the loans as interest income. Decreases in the valuations of other real estate owned covered by the loss sharing agreements are recorded net of the estimated FDIC receivable as an increase to other real estate owned expense (a component of non-interest expense). The FDIC loss sharing receivable balance will be reduced through a charge to the provision for loan losses, with no offsetting reduction to the allowance for loan losses, as the period to submit losses under the FDIC loss sharing arrangements approaches expiration and the estimated losses in the covered loans have not yet emerged or been realized in a final disposition event. The period to submit losses under the FDIC loss sharing arrangements for non-single family loans expired in third quarter 2015. The period to submit losses under the FDIC loss sharing arrangements for single family loans expires in third quarter 2017. The final maturity of the FDIC loss sharing arrangements occurs in third quarter 2020. As of December 2015 and 2014, loans covered under loss sharing agreements with the FDIC were $13.8 million and $42.2 million , respectively. As part of the FDIC loss sharing arrangements, Customers also assumed a liability to be paid within 45 days subsequent to the maturity or termination of the loss sharing arrangements that is contingent upon actual losses incurred over the life of the arrangements relative to expected losses and the consideration paid upon acquisition of the failed institutions. Due to cash received on the covered assets in excess of the original expectations of the FDIC, the Bank anticipates that it will be required to pay the FDIC at the end of its loss sharing arrangements. As of December 31, 2015, a clawback liability of $2.3 million has been recorded. To the extent actual losses on the covered assets are less than estimated losses, the clawback liability will increase. To the extent actual losses on the covered assets are more than the estimated losses, the clawback liability will decrease. As of December 31, 2015, Customers expects to collect $0.2 million from the FDIC for estimated losses and reimbursement of external costs, such as legal fees, real estate taxes and appraisal expenses, and estimated the clawback liability due to the FDIC in 2020 at $2.3 million . The net amount of $2.1 million is included in "Accrued interest payable and other liabilities" in the accompanying consolidated balance sheet. The following table presents changes in the allowance for loans losses and the FDIC loss sharing receivable, including the effect of the estimated clawback liability for the years ended December 31, 2015 , 2014 and 2013 . Allowance for Loan Losses For The Year Ended December 31, 2015 2014 2013 (amounts in thousands) Beginning Balance $ 30,932 $ 23,998 $ 25,837 Provision for loan losses (1) 16,694 10,058 5,055 Charge-offs (13,412 ) (4,947 ) (7,338 ) Recoveries 1,433 1,823 444 Ending Balance $ 35,647 $ 30,932 $ 23,998 FDIC Loss Sharing Receivable For The Year Ended December 31, 2015 2014 2013 (amounts in thousands) Beginning Balance $ 2,320 $ 10,046 $ 12,343 Increased (decreased) estimated cash flows (2) (3,872 ) (4,689 ) 2,819 Increased estimated cash flows from covered OREO (a) 3,138 — — Other activity, net (b) 248 2,409 1,610 Cash receipts from FDIC (3,917 ) (5,446 ) (6,726 ) Ending Balance $ (2,083 ) $ 2,320 $ 10,046 (1) Provision for loan losses $ 16,694 $ 10,058 $ 5,055 (2) Effect attributable to FDIC loss share arrangements 3,872 4,689 (2,819 ) Net amount reported as provision for loan losses $ 20,566 $ 14,747 $ 2,236 (a) Recorded as a reduction to Other Real Estate Owned expense (a component of non-interest expense). (b) Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualify for reimbursement under loss share arrangements. 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 loans that are individually evaluated for impairment as of December 31, 2015 and 2014 and the average recorded investment and interest income recognized for the years ended December 31, 2015 and 2014. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. December 31, 2015 Year Ended December 31, 2015 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Multi-family $ 661 $ 661 $ — $ 267 $ 24 Commercial and industrial 12,056 13,028 — 8,543 891 Commercial real estate - owner occupied 8,317 8,317 — 6,526 454 Commercial real estate - non-owner occupied 4,276 4,276 — 6,605 648 Construction — — — 749 — Other consumer 48 48 — 42 1 Residential real estate 4,331 4,331 — 2,254 86 Manufactured housing 8,300 8,300 — 5,433 368 With an allowance recorded: Commercial and industrial 5,565 5,914 1,990 9,331 191 Commercial real estate - owner occupied 12 12 1 15 1 Commercial real estate - non-owner occupied 555 555 148 817 12 Construction — — — — — Other consumer 92 92 50 83 — Residential real estate 395 395 84 426 2 Total $ 44,608 $ 45,929 $ 2,273 $ 41,091 $ 2,678 December 31, 2014 Year Ended December 31, 2014 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Commercial and industrial $ 14,600 $ 16,122 $ — $ 13,329 $ 674 Commercial real estate - owner occupied 12,599 12,744 — 10,204 504 Commercial real estate - non-owner occupied 5,602 5,602 7,770 383 Construction 2,325 2,325 — 2,415 41 Other consumer 21 21 — 26 — Residential real estate 3,675 5,917 — 4,145 87 Manufactured housing 2,588 2,588 — 2,588 128 With an allowance recorded: Commercial and industrial 1,923 1,923 857 1,725 28 Commercial real estate - owner occupied 750 750 95 1,184 22 Commercial real estate - non-owner occupied 571 571 170 902 17 Construction — — — 851 — Other consumer 114 114 32 82 1 Residential real estate 365 365 188 296 1 Total $ 45,133 $ 49,042 $ 1,342 $ 45,517 $ 1,886 Troubled Debt Restructurings At December 31, 2015 , 2014 and 2013 there were $11.4 million , $5.0 million , $4.6 million respectively, in loans categorized as troubled debt restructurings (“TDRs”). TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if the borrower satisfies a minimum six -month performance requirement; however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Modification of purchased-credit-impaired loans that are accounted for within loan pools in accordance with the accounting standards for purchased-credit-impaired loans do not result in the removal of these loans from the pool even if modifications would otherwise be considered a TDR. Accordingly, as each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, modifications of loans within such pools are not considered TDRs. The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the years ended December 31, 2015 , 2014 and 2013. There were no modifications that involved forgiveness of debt. December 31, 2015 Number Recorded (dollars in thousands) Extended under forbearance 1 $ 183 Interest-rate reductions 161 7,274 Total 162 $ 7,457 December 31, 2014 Number Recorded (dollars in thousands) Extended under forbearance 11 $ 460 Interest rate reductions 10 620 Total 21 $ 1,080 December 31, 2013 Number Recorded (dollars in thousands) Extended under forbearance — $ — Interest rate reductions 14 1,238 Total 14 $ 1,238 The following table provides, by loan type, the number of loans modified in troubled debt restructurings and the related recorded investment during the years ended December 31, 2015, 2014 and 2013. December 31, 2015 Number of Loans Recorded Investment (dollars in thousands) Commercial and industrial 3 $ 791 Commercial real estate non-owner occupied 1 211 Manufactured housing 156 6,251 Residential real estate 2 204 Total loans 162 $ 7,457 December 31, 2014 Number of Loans Recorded Investment (dollars in thousands) Manufactured housing 10 $ 620 Home equity / other 11 460 Total loans 21 $ 1,080 December 31, 2013 Number Recorded (dollars in thousands) Manufactured housing 13 $ 1,206 Home equity / other 1 32 Total loans 14 $ 1,238 As of December 31, 2015 , 2014 , 2013, there were no commitments to lend additional funds to debtors whose terms have been modified in TDRs. For the years ended December 31, 2015 , 2014 and 2013 , the recorded investment of loans determined to be TDRs was $7.5 million , $1.1 million and $1.2 million respectively, both before and after restructuring. During the year ending December 31, 2015 , thirty-six TDR loans defaulted with a recorded investment of $2.5 million . During the year ending December 31, 2014 , six TDR loans defaulted with a recorded investment of $0.4 million . During the year ended December 31, 2013, five TDR loans defaulted with a recorded investment of $0.4 million . For the year ended 2015, $1.8 million of the $2.5 million defaulted loans are subject to a cash reserve. Loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. There were three specific allowances resulting from TDR modifications during 2015, totaling $0.2 million for 2 commercial and industrial loans, and $0.1 million for one commercial real estate non-owner occupied loan. There were no specific allowances resulting from TDR modifications during 2014 or 2013. Credit Quality Indicators Commercial and industrial, commercial real estate, multi-family, residential real estate and construction loans are based on an internally assigned risk rating system which are assigned at loan origination and reviewed on a periodic or “as needed” basis. Other consumer and manufactured housing loans are evaluated based on the payment activity of the loan. To facilitate the monitoring of credit quality within commercial and industrial, commercial real estate, construction, multi-family and residential real estate loans, and for purposes of analyzing historical loss rates used in the determination of the allowance for loan losses for the respective portfolio class, the Bank utilizes the following categories of risk ratings: pass/satisfactory (includes risk rating 1 through 6), special mention, substandard, doubtful, and loss. The risk rating categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass/satisfactory ratings, which are assigned to those borrowers who do not have identified potential or well-defined weaknesses and for whom there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. Certain consumer loans are not assigned a risk rating. 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 managing the loans. The risk rating grades are defined as follows: “1” – Pass / Excellent Loans rated 1 represent a credit extension of the highest quality. The borrower’s historic (at least five years) cash flows manifest extremely large and stable margins of coverage. Balance sheets are conservative, well capitalized, and liquid. After considering debt service for proposed and existing debt, projected cash flows continue to be strong and provide ample coverage. The borrower typically reflects broad geographic and product diversification and has access to alternative financial markets. “2” – Pass / Superior Loans rated 2 are those for which the borrower has a strong financial condition, balance sheet, operations, cash flow, debt capacity and coverage with ratios better than industry norms. The borrowers of these loans exhibit a limited leverage position, are virtually immune to local economies, and are in stable growing industries. The management team is well respected and the company has ready access to public markets. “3” – Pass / Strong Loans rated 3 are those loans for which the borrower has 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; have little industry risk; and move in diversified markets and are experienced and competent in their industry. These borrowers access to capital markets is limited mostly to private sources, often secured, but the borrower typically has access to a wide range of refinancing alternatives. “4” – Pass / Good Loans rated 4 have a sound primary and secondary source of repayment. The borrower may have access to alternative sources of financing, bust sources are not as widely available as they are to a higher grade borrower. These loans carry a normal level of risk, with very low loss exposure. The borrower has the ability to perform according to the terms of the credit facility. The margins of cash flow coverage are satisfactory but vulnerable to more rapid deterioration than the higher quality loans. “5” – Satisfactory Loans rated 5 are extended to borrowers who are determined to be a reasonable credit risk and demonstrate the ability to repay the debt from normal business operations. Risk factors may include reliability of margins and cash flows, liquidity, dependence on a single product or industry, cyclical trends, depth of management, or limited access to alternative financing sources. The borrower’s historical financial information may indicate erratic performance, but current trends are positive and the quality of financial information is adequate, but is not as detailed and sophisticated as information found on higher grade loans. If adverse circumstances arise, the impact on the borrower may be significant. “6” – Satisfactory / Bankable with Care Loans rated 6 are those for which the borrower has higher than normal credit risk; however, cash flow and asset values are generally intact. These borrowers may exhibit declining financial characteristics, with increasing leverage and decreasing liquidity, and may have limited resources and access to financial alternatives. Signs of weakness in these borrowers may include delinquent taxes, trade slowness and eroding profit margins. “7” – Special Mention Loans rated Special Mention are credit facilities that may have potential developing weaknesses and deserve extra attention from the account manager and other management personnel. In the event potential weaknesses are not corrected or mitigated, deterioration in the ability of the borrower to repay the debt in the future may occur. This grade is not assigned to loans that bear certain peculiar risks normally associated with the type of financing involved, unless circumstances have caused the risk to increase to a level higher than would have been acceptable when the credit was originally approved. Loans where significant actual, not potential, weaknesses or problems are clearly evident are graded in the category below. “8” – Substandard Loans are classified Substandard when the loans are inadequately protected by the current sound worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the company will sustain some loss if the weaknesses are not corrected. “9” – Doubtful Doubtful ratings are assigned to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. “10” – Loss The Bank assigns a loss rating to loans considered uncollectible and of such little value that their continuance as an active asset is not warranted. Amounts classified as loss are immediately charged off. Risk ratings are not established for certain consumer loans, including home equity loans, 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 nonperforming. The following table presents the credit ratings as of December 31, 2015 and 2014 for the loans receivable portfolio. December 31, 2015 Multi-family Commercial Commercial Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 2,907,362 $ 784,892 $ 295,762 $ 950,886 $ 87,240 $ 268,210 $ — $ — $ 5,294,352 Special Mention 661 14,052 7,840 1,671 — 282 — — 24,506 Substandard 1,416 4,215 4,639 3,698 — 3,121 — — 17,089 Performing (1) — — — — — — 104,484 3,461 107,945 Non-performing (2) — — — — — — 9,006 247 9,253 Total $ 2,909,439 $ 803,159 $ 308,241 $ 956,255 $ 87,240 $ 271,613 $ 113,490 $ 3,708 $ 5,453,145 December 31, 2014 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 2,206,776 $ 531,790 $ 217,356 $ 829,238 $ 44,642 $ 294,225 $ — $ — $ 4,124,027 Special Mention — 14,565 13,056 6,694 — 243 — — 34,558 Substandard 1,629 3,580 5,322 3,378 5,076 2,927 — — 21,912 Performing (1) — — — — — — 115,088 4,151 119,239 Non-performing (2) — — — — — — 11,643 282 11,925 Total $ 2,208,405 $ 549,935 $ 235,734 $ 839,310 $ 49,718 $ 297,395 $ 126,731 $ 4,433 $ 4,311,661 (1) Includes consumer and other installment loans not subject to risk ratings. (2) Includes loans that are past due and still accruing interest and loans on non-accrual status. As of December 31, 2015, the Bank had $1.2 million of residential real estate held in other real estate owned. As of December 31, 2015, the Bank initiated foreclosure proceedings on $0.6 million in loans secured by residential real estate. During second quarter 2015, the Bank refined its methodology for estimating the general allowance for loan losses. Previously, the general allowance for the portion of the loan portfolio originated after December 31, 2009 ("Post 2009 loan portfolio") was based generally on qualitative factors due to insufficient historical loss data on the portfolio. During second quarter 2015, the Bank began using objectively verifiable industry and peer loss data to estimate probable incurred losses as of the balance sheet date for the Post 2009 loan portfolio until sufficient internal loss history is available. The same methodology was also adopted for the portion of the loan portfolio originated on or before December 31, 2009 ("Legacy loan portfolio") that had no loss history over the past two years. The changes in the allowance for loan losses for the years ended December 31, 2015 and 2014 and the loans and allowance for loan losses by loan class based on impairment evaluation method are as follows. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans. Twelve months ended December 31, 2015 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Beginning Balance, January 1, 2015 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Charge-offs — (11,331 ) (378 ) (327 ) (1,064 ) (276 ) — (36 ) (13,412 ) Recoveries — 548 14 0 204 575 — 92 1,433 Provision for loan losses 3,523 14,863 (2,624 ) (451 ) 887 301 232 (37 ) 16,694 Ending Balance, December 31, 2015 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Loans: Individually evaluated for impairment $ 661 $ 17,621 $ 8,329 $ 4,831 $ — $ 4,726 $ 8,300 $ 140 $ 44,608 Collectively evaluated for impairment 2,905,128 783,986 286,951 939,368 87,006 258,446 101,838 3,334 5,366,057 Loans acquired with credit deterioration 3,650 1,552 12,961 12,056 234 8,441 3,352 234 42,480 $ 2,909,439 $ 803,159 $ 308,241 $ 956,255 $ 87,240 $ 271,613 $ 113,490 $ 3,708 $ 5,453,145 Allowance for loan losses: Individually evaluated for impairment $ — $ 1,990 $ 1 $ 148 $ — $ 84 $ — $ 50 $ 2,273 Collectively evaluated for impairment 12,016 6,650 1,347 3,858 1,074 2,141 98 28 27,212 Loans acquired with credit deterioration — 224 — 4,414 — 1,073 396 55 6,162 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Twelve months ended December 31, 2014 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Beginning Balance, January 1, 2014 $ 4,227 $ 2,674 $ 2,517 $ 8,961 $ 2,385 $ 2,490 $ 614 $ 130 $ 23,998 Charge-offs — (1,155 ) (482 ) (1,715 ) (895 ) (667 ) — (33 ) (4,947 ) Recoveries — 511 225 801 13 265 — 8 1,823 Provision for loan losses 4,266 2,754 2,076 1,151 (456 ) 610 (352 ) 9 10,058 Ending Balance, December 31, 2014 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Loans: Individually evaluated for impairment $ — $ 16,523 $ 13,349 $ 6,173 $ 2,325 $ 4,040 $ 2,588 $ 135 $ 45,133 Collectively evaluated for impairment 2,204,059 530,119 206,352 817,333 44,483 283,388 120,127 4,050 4,209,911 Loans acquired with credit deterioration 4,346 3,293 16,033 15,804 2,910 9,967 4,016 248 56,617 $ 2,208,405 $ 549,935 $ 235,734 $ 839,310 $ 49,718 $ 297,395 $ 126,731 $ 4,433 $ 4,311,661 Allowance for loan losses: Individually evaluated for impairment $ — $ 857 $ 95 $ 170 $ — $ 188 $ — $ 32 $ 1,342 Collectively evaluated for impairment 8,493 3,765 1,757 6,580 424 1,436 92 28 22,575 Loans acquired with credit deterioration — 162 2,484 2,448 623 1,074 170 54 7,015 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 The manufactured housing portfolio was purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the Purchase Agreement for defaults of the underlying borrower and other specified items. At December 31, 2015 and 2014, funds available for reimbursement, if necessary, were $1.2 million and $3.0 million , respectively. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb probable losses within the manufactured housing portfolio. The changes in accretable yield related to purchased-credit-impaired loans for the three and nine months ended September 30, 2015 and 2014 were as follows: The changes in accretable yield related to purchased-credit-impaired loans for the years ended December 31, 2015, 2014 and 2013 were as follows: December 31, 2015 2014 2013 (amounts in thousands) Accretable yield balance, beginning of period $ 17,606 $ 22,557 $ 32,174 Accretion to interest income (2,299 ) (3,201 ) (6,213 ) Reclassification from nonaccretable difference and disposals, net (2,360 ) (1,750 ) (3,404 ) Accretable yield balance, end of period $ 12,947 $ 17,606 $ 22,557 |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Bank Premises and Equipment | BANK PREMISES AND EQUIPMENT The components of bank premises and equipment as of December 31, 2015 and 2014 were as follows: December 31, Expected Useful Life 2015 2014 (amounts in thousands) Leasehold improvements 3 to 25 years $ 12,531 $ 11,680 Furniture, fixtures and equipment 5 to 10 years 5,312 4,504 IT equipment 3 to 5 years 5,909 4,696 Automobiles 5 to 10 years 206 174 23,958 21,054 Accumulated depreciation (12,427 ) (10,244 ) Total $ 11,531 $ 10,810 Future minimum rental commitments under non-cancelable leases were as follows: December 31, 2015 (amounts in thousands) 2016 $ 3,861 2017 3,662 2018 3,450 2019 2,826 2020 1,994 Subsequent to 2020 3,258 Total minimum payments $ 19,051 Rent expense was approximately $3.8 million , $3.3 million and $2.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Customers' leases are for land and branch or office space. A majority of the leases provide for the payment of taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Many of the leases contain extension provisions and escalation clauses. These leases are generally renewable and may, in certain cases, contain renewal provisions and options to expand and contract space and terminate the leases at predetermined contractual dates. In addition, escalation clauses may exist, which are tied to a predetermined rate or may change based on a specified percentage increase or the Consumer Price Index. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS The components of deposits at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (amounts in thousands) Demand, non-interest bearing $ 653,679 $ 546,436 Demand, interest bearing 127,215 71,202 Savings, including money market deposit accounts 2,781,010 2,203,237 Time, $100,000 and over 1,624,562 1,043,265 Time, other 723,035 668,398 Total deposits $ 5,909,501 $ 4,532,538 Time deposits scheduled maturities at December 31, 2015 were as follows: December 31, 2015 (amounts in thousands) 2016 $ 1,799,310 2017 312,813 2018 135,952 2019 53,591 2020 45,931 Total time deposits $ 2,347,597 The aggregate amount of demand deposit overdrafts that were reclassified as loans were $0.6 million at December 31, 2015 , compared to $0.8 million as of December 31, 2014 . Time deposits greater than $250,000 totaled $920.5 million and $365.4 million at December 31, 2015 and 2014, respectively. Included in the savings balances above were $815.7 million and $632.7 million of brokered money market deposits as of December 31, 2015 and 2014 , respectively. Also, included in time, other balances above were $612.8 million and $483.2 million of brokered time deposits, respectively, as of December 31, 2015 and 2014 . |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS Short-term debt Short-term debt at December 31, 2015 and 2014 was as follows: December 31, 2015 2014 Amount Rate Amount Rate (amounts in thousands) FHLB advances $ 1,365,300 0.48 % $ 1,298,000 0.29 % Federal funds purchased 70,000 0.56 — — Total short-term debt $ 1,435,300 $ 1,298,000 The following is a summary of additional information relating to Customers' short-term debt: December 31, 2015 2014 2013 (amounts in thousands) FHLB advances: Maximum outstanding at any month end $ 1,365,300 $ 1,383,000 $ 769,750 Average balance during the year 844,835 898,396 120,309 Weighted-average interest rate during the year 0.60 % 0.46 % 0.55 % Federal funds purchased: Maximum outstanding at any month end 85,000 35,000 125,000 Average balance during the year 41,397 13,312 32,351 Weighted-average interest rate during the year 0.35 % 0.31 % 0.31 % At December 31, 2015 and 2014 , the Bank had aggregate availability under federal funds lines totaling $175 million and $95.0 million , respectively. Long-term debt FHLB advances The contractual maturities of long-term advances from the FHLB were as follows: December 31, 2015 2014 Amount Rate Amount Rate (amounts in thousands) 2016 $ — — % $ 85,000 0.59 % 2017 205,000 1.18 180,000 1.21 2018 55,000 1.61 55,000 1.61 $ 260,000 $ 320,000 Of the $260 million of long-term advances enumerated above, $250.0 million are fixed rate. The Bank had a total maximum borrowing capacity with the Federal Home Loan Bank of $3.7 billion and with the Federal Reserve Bank of Philadelphia of $59.2 million at December 31, 2015 . The Bank had a total borrowing capacity with the Federal Home Loan Bank of $3.2 billion and with the Federal Reserve Bank of Philadelphia of $62.7 million at December 31, 2014 . Amounts can be borrowed as short-term or long-term. As of December 31, 2015 , advances under these arrangements were secured by certain assets, which included a blanket lien on securities of $257.1 million and qualifying loans of Customers Bank of $3.5 billion . Senior notes On June 26, 2014, the Bancorp closed a private placement transaction in which it issued $25.0 million of 4.625% senior notes due 2019. Interest is paid semi-annually in arrears in June and December. In July and August 2013, the Bancorp issued $63.3 million in aggregate principal amount of senior notes due 2018. The notes bear interest at 6.375% per year which is payable on March 15, June 15, September 15, and December 15. The notes are unsecured obligations of the Bancorp and rank equally with all of its secured and unsecured senior indebtedness. Subordinated debt On June 26, 2014, the Bank closed a private placement transaction in which it issued $110.0 million of fixed-to-floating rate subordinated notes due 2029. The subordinated notes bear interest at an annual fixed rate of 6.125% until June 26, 2024, and interest is paid semiannually. From June 26, 2024, the subordinated notes will bear an annual interest rate equal to three-month LIBOR plus 344.3 basis points until maturity on June 26, 2029. The Bank has the ability to call the subordinated notes, in whole or in part, at a redemption price equal to 100% of the principal balance at certain times on or after June 26, 2024. The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY On May 18, 2015, Customers Bancorp issued 2,300,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, par value $1.00 per share, with a liquidation preference of $25.00 per share. Customers Bancorp will pay dividends on the Series C Preferred Stock only when, as, and if declared by the board of directors or a duly authorized committee of the board and to the extent that it has lawfully available funds to pay dividends. Dividends on the Series C Preferred Stock will accrue and be payable quarterly in arrears, on the 15th day of March, June, September, and December of each year, commencing on September 15, 2015, at a fixed rate per annum equal to 7.00% from the original issue date to, but excluding, June 15, 2020, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.30% per annum. Dividends on the Series C Preferred Stock will not be 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 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 Preferred Stock for any future dividend period. The Series C Preferred Stock has no stated maturity, is 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 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 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 Preferred Stock is subject to prior approval of the Board of Governors of the Federal Reserve System. The Series C Preferred Stock qualifies as Tier 1 capital under regulatory capital guidelines. Except in limited circumstances, the Series C Preferred Stock does not have any voting rights. On August 24, 2015, Customers Bancorp's board of directors declared a cash dividend on its Series C Preferred Stock of $0.56875 per share. The dividend was paid on September 15, 2015 to shareholders of record on August 31, 2015. On November 17, 2015, Customers Bancorp's board of directors declared a cash dividend on its Series C Preferred Stock of $0.4375 per share. The dividend was paid on December 15, 2015 to shareholders of record on November 30, 2015. In May 2014, the Bancorp announced that its Board of Directors had declared a 10% stock dividend to all shareholders of record as of May 27, 2014. This special dividend was paid on June 30, 2014 in the form of an aggregate of 2,429,375 additional shares. In November 2013, the Bancorp announced that its Board of Directors had authorized a stock repurchase plan in which it could acquire up to 5% of its current outstanding shares at prices not to exceed a 20% premium over the current book value. The repurchase program may be suspended, modified or discontinued at any time, and the Bancorp has no obligation to repurchase any amount of its common stock under the program. There was no stock repurchased during 2015 or 2014. At December 31, 2015 , there were warrants outstanding to purchase 627,673 shares of the Bancorp’s common stock. At December 31, 2014 , there were warrants outstanding to purchase 635,274 shares of the Bancorp’s common stock. The purchase prices at December 31, 2015 and 2014 ranged from $9.55 per share to $73.01 per share. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS 401(k) Plan Customers Bank has a 401(k) profit sharing plan whereby eligible team members may contribute amounts up to the annual IRS statutory contribution limit. Customers Bank 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, 2015 , 2014 , and 2013 were $1.1 million , $1.0 million , and $0.6 million , respectively. Supplemental Executive Retirement Plans Customers Bank entered into a supplemental executive retirement plan (SERP) with its Chairman and Chief Executive Officer that provides annual retirement benefits for a 15 -year period upon the later of his reaching the age of 65 or when he terminates employment. The SERP is a defined-contribution type of deferred compensation arrangement that is designed to provide a target annual retirement benefit of $300,000 per year for 15 years starting at age 65 , based on an assumed constant rate of return of 7% per year. The level of retirement benefit is not guaranteed by the Bank, and the ultimate retirement benefit can be less than or greater than the target. The Bank intends to fund its obligations under the SERP with the increase in cash surrender value of a life insurance policy on the life of the Chairman and Chief Executive Officer which is owned by the Bank. The present value of the amount owed as of December 31, 2015 was $3.6 million and was included in other liabilities. |
Share-Based Compensation Plans
Share-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Plans | SHARE-BASED COMPENSATION PLANS Summary During 2010, the shareholders of Customers Bancorp approved the 2010 Stock Option Plan (“2010 Plan”), and during 2012, the shareholders of Customers Bancorp approved the 2012 Amendment and Restatement of the Customers Bancorp, Inc. Amended and Restated 2004 Incentive Equity and Deferred Compensation Plan (“2004 Plan”). The purpose of these plans is to promote the success and enhance the value of the Bancorp by linking the personal interests of the members of the Board of Directors and employees, officers, and executives of Customers to those of the shareholders of Customers and by providing such individuals with an incentive for outstanding performance in order to generate superior returns to shareholders of Customers. The 2010 Plan and 2004 Plan are intended to provide flexibility to Customers in its ability to motivate, attract, and retain the services of members of the Board of Directors, and employees, 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. Certain share-based awards provide for accelerated vesting if there is a change in control (as defined in the Plans). No stock options may be exercisable for more than 10 years from the date of grant. The 2010 and 2004 Plans are administered by the Compensation Committee of the Board of Directors. The 2010 Plan provides exclusively for the grant of stock options, some or all of which may be structured to qualify as Incentive Stock Options, to employees, 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 employees, stock appreciation rights, restricted stock, restricted stock units, and unrestricted stock to employees, officers, executives, and members of the Board of Directors. The maximum number of shares of common stock which may be issued under the 2004 Plan is 2,750,000 shares. At December 31, 2015 , the aggregate number of shares of common stock available for grant under these plans was 1,812,837 shares. On January 1, 2011, Customers initiated a Bonus Recognition and Retention Program (“BRRP”). This is a restricted stock unit plan. Employees eligible to participate in the BRRP include the Chief Executive Officer and other management and highly compensated employees as determined by the Compensation Committee at its sole discretion. Under the BRRP, a participant may elect to defer not less than 25% , nor more than 50% , of his or her bonus payable with respect to each year of participation. Shares of Voting Common Stock having a value equal to the portion of the bonus deferred by a participant are allocated to an annual deferral account, and a matching amount equal to an identical number of shares of common stock is also allocated to the annual deferral account. A participant becomes 100% vested in the annual deferral account on the fifth anniversary date of the initial funding of the account, provided he or she remains continuously employed by Customers from the date of funding to the anniversary date. Vesting is accelerated in the event of involuntary termination other than for cause, retirement at or after age 65 , death, termination on account of disability, or a change in control of Customers. Participants were first eligible to make elections under the BRRP with respect to their bonuses for 2011 which were payable in the first quarter of 2012. The BRRP does not provide for a specific number of shares to be reserved; by its terms, the award of restricted stock units under this plan is limited by the amount of cash bonuses paid to the participants in the plan. At December 31, 2015 , restricted stock units outstanding under this plan totaled 254,821 . 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 2015 , 2014 , and 2013 was $ 5.7 million , $ 5.2 million , and $ 3.4 million , respectively. At December 31, 2015 , there was $11.2 million of unrecognized compensation cost related to all non-vested share-based compensation awards. This cost is expected to be recognized through December 2020 . In 2014, the shareholders of Customers Bancorp approved the 2014 Employee Stock Purchase Plan (the "ESPP"). The ESPP is intended to encourage team member participation in the ownership and economic progress of Customers. This plan is intended to qualify as an employee stock purchase plan within the meaning of the Internal Revenue Code and is administered by the Compensation Committee of the Board of Directors. Under the ESPP, team members may elect to purchase shares of Customers' common stock through payroll deduction. Since 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 2015 and 2014 was $80.0 thousand and $12.0 thousand , respectively. Stock Options Customers estimated the fair value of each option on the date of grant 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. 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 five -year vesting requirement. During 2015, options to purchase an aggregate of 596,995 shares of Customers Bancorp voting common stock were granted to certain officers and team members. The exercise price for the options granted is equal to the closing price of Customers Bancorp's voting common stock on the date of grant. The options are subject to a five -year cliff vesting and expire after ten years. In addition to the five -year service requirement, one of the following conditions must be met in order for the options to become exercisable: • Total shareholder returns over the five-year vesting period must be a minimum of 50% , or • Customers Bancorp must have achieved a compound annual growth rate in diluted EPS of at least 10% over the five-year vesting period. Customers evaluated the likelihood that at least one of these conditions would be met over the requisite service period and determined that it was more likely than not that one of the conditions would be satisfied (based upon historical performance). Accordingly, the grant-date fair value of these awards is being recognized as expense over the five-year vesting period. The following table presents the weighted-average assumptions used and the resulting weighted-average fair value of each option granted. 2015 2014 2013 Weighted-average risk-free interest rate 1.90 % 2.16 % 1.42 % Expected dividend yield — % — % — % Weighted-average expected volatility 21.18 % 18.00 % 13.77 % Weighted-average expected life (in years) 7.00 7.00 7.00 Weighted-average fair value of each option granted $ 6.42 $ 4.52 $ 3.17 The following summarizes stock option activity for the year ended December 31, 2015 : 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, January 1, 2015 3,168,067 $ 12.61 Granted 599,745 23.36 Exercised (31,168 ) 10.53 455 Forfeited (2,200 ) 17.65 Expired (2,683 ) 29.33 Outstanding, December 31, 2015 3,731,761 $ 14.33 6.78 $ 48,086 Exercisable at December 31, 2015 707,745 $ 9.19 4.38 $ 12,760 Cash received from the exercise of options during the year ended December 31, 2015 was $0.3 million with a related tax benefit of $0.2 million . A summary of the status of Customers' non-vested options at December 31, 2015 and changes during the year ended December 31, 2015 is as follows: Options Weighted- average exercise price Non-vested at January 1, 2015 3,154,384 $ 12.59 Granted 599,745 23.36 Vested (725,163 ) 12.50 Forfeited (2,200 ) 17.65 Non-vested at December 31, 2015 3,026,766 15.53 Restricted Stock Units The fair value of restricted stock units granted under the 2004 Plan is determined based on the market price of Customers' common stock on the date of grant. The fair value of restricted stock units granted under the BRRP is measured as of the date on which such portion of the bonus would have been paid had the deferral not been elected. In February 2012, the Compensation Committee recommended and the Board of Directors approved a restricted stock award that had two vesting requirements. The first requirement is that the recipient remains an employee or director through December 31, 2016. The second requirement is that Customers' Voting Common Stock will have traded at a price greater than $ 17.18 per share (adjusted for any stock splits or stock dividends) for at least five consecutive trading days during the five-year period ending December 31, 2016. This second requirement was satisfied during the fourth quarter of 2013. These criteria apply only to the 2012 restricted stock award. There were 158,581 restricted stock units granted during the year ended December 31, 2015. Of the aggregate restricted stock units granted, 84,392 were granted under the Bonus Recognition and Retention Program and are subject to five -year cliff vesting. The remaining units were granted under the Bancorp's Restated and Amended 2004 Incentive Equity and Deferred Compensation Plan and are subject to either a three -year waterfall vesting (with one third of the amount vesting annually) or a three-year cliff vesting. The table below presents the status of the restricted stock units at December 31, 2015 and changes during the year ended December 31, 2015 : Restricted Stock Units Weighted- average grant- date fair value Outstanding and unvested at January 1, 2015 788,971 $ 13.00 Granted 158,581 19.67 Vested (65,218 ) 12.02 Forfeited (9,070 ) 17.15 Outstanding and unvested at December 31, 2015 873,264 $ 14.24 Customers has a policy that permits its directors to elect to receive shares of Voting Common Stock in lieu of their cash retainers. During the year ended December 31, 2015 , Customers issued 27,674 shares of Voting Common Stock with a fair value of $0.7 million to the directors as compensation for their services. The fair values were determined based on the opening price of the common stock on the day the shares were issued. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of income tax expense were as follows: For the Years Ended December 31, 2015 2014 2013 (amounts in thousands) Current $ 40,004 $ 26,361 $ 15,394 Deferred (10,092 ) (6,187 ) 2,210 Total $ 29,912 $ 20,174 $ 17,604 Effective tax rates differ from the federal statutory rate of 35% , which is applied to income before income tax expense, due to the following: For the Years Ended December 31, 2015 2014 2013 Amount % of Amount % of Amount % of (amounts in thousands) Federal income tax at statutory rate $ 30,973 35.00 % $ 22,185 35.00 % $ 17,604 35.00 % State income tax 1,434 1.62 1,355 2.14 353 0.70 Tax-exempt interest, net of disallowance (277 ) (0.31 ) (249 ) (0.39 ) (148 ) (0.30 ) Bank-owned life insurance (2,422 ) (2.73 ) (1,296 ) (2.04 ) (868 ) (1.73 ) Other 204 0.22 (1,821 ) (2.88 ) 663 1.33 Effective income tax rate $ 29,912 33.80 % $ 20,174 31.83 % $ 17,604 35.00 % Customers accounts for income taxes under the liability method of accounting for income taxes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Customers determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. A tax position is recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent ; the terms examined and upon examination also include resolution of the related appeals or litigation process, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. At December 31, 2015 and 2014, 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. Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the carry-back period. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income, and the projected future taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Based on its assessment, management determined that no valuation allowance is necessary at December 31, 2015 and 2014 . 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 the Bancorp's deferred tax asset and liabilities as December 31, 2015 and 2014 : December 31, 2015 2014 (amounts in thousands) Deferred tax assets: Allowance for loan losses $ 13,248 $ 11,555 Net unrealized losses on securities 3,112 — OREO expenses 728 588 Non-accrual interest 840 541 Net operating losses 2,290 1,892 Deferred compensation 1,337 1,361 Equity-based compensation 5,196 3,751 Fair value adjustments on acquisitions 428 — Cash flow hedge 1,679 681 Incentive compensation 2,497 1,558 Other 1,374 1,120 Total deferred tax assets 32,729 23,047 Deferred tax liabilities: Fair value adjustments on acquisitions — (2,002 ) Net unrealized gains on securities — (615 ) Net deferred loan fees (2,688 ) (4,524 ) Bank premises and equipment (875 ) (1,009 ) Other (592 ) (1,140 ) Total deferred tax liabilities (4,155 ) (9,290 ) Net deferred tax asset $ 28,574 $ 13,757 Customers had approximately $6.5 million of federal net operating loss carryovers at December 31, 2015 , that expire in 2025 through 2031 . Customers is subject to U.S. federal income tax as well as income tax in various state and local taxing jurisdictions. Generally, Customers is no longer subject to examination by federal, state and local taxing authorities for years prior to December 31, 2012. |
Transactions with Executive Off
Transactions with Executive Officers, Directors, and Principal Shareholders | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Transactions with Executive Officers, Directors, and Principal Shareholders | TRANSACTIONS WITH EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS Customers has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal shareholders, their immediate families and affiliated companies (commonly referred to as related parties). The activity relating to loans to such persons was as follows: For the Years Ended December 31, 2015 2014 2013 (amounts in thousands) Balance – January 1 $ 9 $ 7,273 $ 3,272 Additions 2,218 5 9,280 Repayments (2,007 ) (7,269 ) (5,279 ) Balance – December 31 $ 220 $ 9 $ 7,273 At December 31, 2015, Customers Bank had an outstanding commitment to provide short-term commercial real estate financing, subject to certain terms and conditions, not to exceed $8.0 million , and an available line of credit of $1.8 million with one of its related parties. 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, 2015 . None of these transactions involved amounts in excess of 5% of the Customers' gross revenues during 2015 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, 2015 . 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, 2015 and 2014, the Bank had approximately $14.0 million and $11.7 million , respectively, in deposits from related parties, including directors and certain executive officers. For the years ended December 31, 2015 , 2014 , and 2013 , Customers paid $27,300 , $46,900 and $45,800 to Jaxxon Promotions, Inc., a company in which a Bancorp director owns 25% interest. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK Customers is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. Customers' exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. Customers uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. The following financial instruments were outstanding whose contract amounts represent credit risk: December 31, 2015 2014 (amounts in thousands) Commitments to fund loans $ 537,380 $ 231,294 Unfunded commitments to fund mortgage warehouse loans 1,302,759 713,619 Unfunded commitments under lines of credit 436,550 430,995 Letters of credit 42,002 36,206 Other unused commitments 6,360 7,685 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Mortgage warehouse loan commitments are agreements to purchase mortgage loans from mortgage bankers that agree to purchase the loans back in a short period of time. These commitments generally fluctuate monthly as existing loans are repurchased by the mortgage bankers and new loans are purchased by Customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Customers evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by Customers upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. Outstanding letters of credit written are conditional commitments issued by Customers to guarantee the performance of a customer to a third party. The majority of these standby letters of credit expire within the next year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. Customers requires collateral supporting these letters of credit as deemed necessary. Management believes that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liabilities as of December 31, 2015 and 2014 for guarantees under standby letters of credit issued is not material. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | REGULATORY MATTERS The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on Customers' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Bank and Bancorp to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets (as defined in the regulations). At December 31, 2015 and 2014, the Bank and Bancorp met all capital adequacy requirements to which they were subject. The Dodd-Frank Act required the FRB to establish minimum consolidated capital requirements for bank holding companies that are as stringent as those required for insured depositary subsidiaries. In 2013, the federal banking agencies approved rules that implemented the Dodd-Frank requirements and certain other regulatory capital reforms effective January 1, 2015, that (i) introduced a new capital ratio pursuant to the prompt corrective action provisions, the common equity tier 1 capital to risk rated assets ratio, (ii) increased the adequately capitalized and well capitalized thresholds for the Tier 1 risk based capital ratios to 6% and 8% , respectively, (iii) changed the treatment of certain capital components for determining Tier 1 and Tier 2 capital, and (iv) changed the risk weighting of certain assets and off balance sheet items in determining risk weighted assets. To be categorized as well capitalized, an institution must maintain minimum common equity Tier 1, total risk based, Tier 1 risk based and Tier 1 leveraged ratios as set forth in the following table: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Common equity Tier 1 (to risk-weighted assets) Customers Bancorp, Inc. $ 500,624 7.61 % $ 296,014 4.5 % N/A N/A Customers Bank $ 565,217 8.62 % $ 294,916 4.5 % $ 425,990 6.5 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 698,323 10.62 % $ 526,247 8.0 % N/A N/A Customers Bank $ 710,864 10.85 % $ 524,295 8.0 % $ 655,369 10.0 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 556,193 8.46 % $ 394,685 6.0 % N/A N/A Customers Bank $ 565,217 8.62 % $ 393,221 6.0 % $ 524,295 8.0 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 556,193 7.16 % $ 310,812 4.0 % N/A N/A Customers Bank $ 565,217 7.30 % $ 309,883 4.0 % $ 387,353 5.0 % December 31, 2014 Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 578,644 11.09 % $ 417,473 8.0 % N/A N/A Customers Bank $ 621,894 11.98 % $ 415,141 8.0 % $ 518,926 10.0 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 437,712 8.39 % $ 208,737 4.0 % N/A N/A Customers Bank $ 480,963 9.27 % $ 207,570 4.0 % $ 311,356 6.0 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 437,712 6.69 % $ 261,622 4.0 % N/A N/A Customers Bank $ 480,963 7.39 % $ 260,462 4.0 % $ 325,577 5.0 % The new 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." The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. The capital conservation buffer will be phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
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. FASB ASC 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers’ various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (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, 2015 and 2014 : Cash and cash equivalents: The carrying amounts reported on the balance sheet for cash and cash equivalents approximate those assets’ fair values. These assets are included as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Investment securities: The fair values of investment securities available for sale are determined by obtaining quoted market prices on nationally recognized and foreign securities exchanges (Level 1), matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted prices, or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). These assets are included as Level 1, 2, or 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The carrying amount of FHLB, Federal Reserve Bank, and other restricted stock approximates fair value, and considers the limited marketability of such securities. These assets are included in Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Residential mortgage loans: The Bank generally estimates the fair values of residential mortgage loans held for sale based on commitments on hand from investors within the secondary market for loans with similar characteristics. These assets are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Mortgage warehouse loans: The fair value of mortgage warehouse loans is the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The loan is used by mortgage companies as short-term bridge financing between the funding of mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not expected to be recognized since at inception of the transaction the underlying loans have already been sold to an approved investor. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of 19 days from purchase to sale. These assets are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Multi-family loans: The fair values of multi-family loans held for sale are estimated using pricing indications from letters of intent with third party investors, recent sale transactions within the secondary markets for loans with similar characteristics, or non-binding indicative bids from brokers. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans receivable, net of allowance for loan losses: The fair values of loans held for investment are estimated using discounted cash flows, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Impaired loans: Impaired loans are those that are accounted for under ASC 450, Contingencies , in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. 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 included 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 using appraisals, which may be discounted based on management’s review and changes in market conditions. 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 included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Deposit liabilities: The fair values disclosed for interest and non-interest checking, passbook savings and money market deposit accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). These liabilities are included as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. These liabilities are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Federal funds purchased: For these short-term instruments, the carrying amount is considered a reasonable estimate of fair value. These liabilities are included as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Borrowings: Borrowings consist of long-term and short-term FHLB advances, 5 -year senior unsecured notes, and subordinated debt. For the short-term borrowings, the carrying amount is considered a reasonable estimate of fair value and is included as Level 1. Fair values of long-term FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. The prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Fair values of privately placed subordinated and senior unsecured debt are estimated by a third-party financial adviser using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit-risk characteristics, terms and remaining maturity. These liabilities are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The $63 million senior unsecured notes issued during third quarter 2013 are traded on the New York Stock Exchange, and their price can be obtained daily. This fair value measurement is classified as Level 1. Derivatives (Assets and Liabilities): The fair values of interest rate swaps and credit derivatives are determined using models that incorporate readily observable market data into a market standard methodology. This methodology nets the discounted future fixed cash receipts and the discounted expected variable cash payments. The discounted variable cash payments are based on expectations of future interest rates derived from observable market interest rate curves. In addition, fair value is adjusted for the effect of nonperformance risk by incorporating credit valuation adjustments for the Bank and its counterparties. These assets and liabilities are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair values of the residential mortgage loan commitments are derived from the estimated fair values that can be generated when the underlying mortgage loan is sold in the secondary market. The Bank uses commitments on hand from third party investors to estimate an exit price, and adjusts for the probability of the commitment being exercised based on the Bank’s internal experience (i.e., pull-through rate). These assets and liabilities are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Off-balance-sheet financial instruments: Fair values of unused commitments to lend and standby letters of credit are considered to be the same as their contractual amounts. The following information should not be interpreted as an estimate of Customers' fair value in its entirety because fair value measurements are only provided for a limited portion of Customers’ assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making these estimates, comparisons between Customers’ disclosures and those of other companies may not be meaningful. The estimated fair values of Customers’ financial instruments were as follows at December 31, 2015 and 2014 . Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2015 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 $ 264,593 $ 264,593 $ 264,593 $ — $ — Investment securities, available for sale 560,253 560,253 19,212 541,041 — Loans held for sale 1,797,064 1,797,458 — 1,757,807 39,651 Loans receivable, net of allowance for loan losses 5,417,832 5,353,903 — — 5,353,903 FHLB, Federal Reserve Bank and other restricted stock 90,841 90,841 — 90,841 — Derivatives 9,295 9,295 — 9,250 45 Liabilities: Deposits $ 5,909,501 $ 5,911,754 $ 3,561,905 $ 2,349,849 $ — Federal funds purchased 70,000 70,000 70,000 — — FHLB advances 1,625,300 1,625,468 1,365,300 260,168 — Other borrowings 88,250 93,804 68,867 24,937 — Subordinated debt 110,000 110,825 — 110,825 — Derivatives 13,932 13,932 — 13,932 — Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2014 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 $ 371,023 $ 371,023 $ 371,023 $ — $ — Investment securities, available for sale 416,685 416,685 24,270 392,415 — Loans held for sale 1,435,459 1,436,460 — 1,335,668 100,792 Loans receivable, net of allowance for loan losses 4,281,241 4,285,537 — — 4,285,537 FHLB and Federal Reserve Bank, and other restricted stock 82,002 82,002 — 82,002 — Derivatives 7,552 7,552 — 7,509 43 Liabilities: Deposits $ 4,532,538 $ 4,540,507 $ 2,820,875 $ 1,719,632 $ — FHLB advances 1,618,000 1,619,858 1,298,000 321,858 — Other borrowings 88,250 92,069 66,944 25,125 — Subordinated debt 110,000 111,925 — 111,925 — Derivatives 9,716 9,716 — 9,716 — 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, 2015 and 2014 were as follows: December 31, 2015 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: Mortgage-backed securities $ — $ 500,974 $ — $ 500,974 Corporate notes — 40,067 — 40,067 Equity securities 19,212 — — 19,212 Derivatives (1) — 9,250 45 9,295 Loans held for sale – fair value option — 1,757,807 — 1,757,807 Total assets - recurring fair value measurements $ 19,212 $ 2,308,098 $ 45 $ 2,327,355 Liabilities Derivatives (2) $ — $ 13,932 $ — $ 13,932 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $2,273 $ — $ — $ 4,346 $ 4,346 Other real estate owned — — 358 358 Total assets - nonrecurring fair value measurements $ — $ — $ 4,704 $ 4,704 December 31, 2014 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: Mortgage-backed securities $ — $ 377,311 $ — $ 377,311 Corporate notes — 15,104 — 15,104 Equity securities 24,270 — — 24,270 Derivatives (1) — 7,509 43 7,552 Loans held for sale – fair value option — 1,335,668 — 1,335,668 Total assets - recurring fair value measurements $ 24,270 $ 1,735,592 $ 43 $ 1,759,905 Liabilities Derivatives (2) $ — $ 9,716 $ — $ 9,716 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $1,342 $ — $ — $ 2,380 $ 2,380 Other real estate owned — — 9,149 9,149 Total assets - nonrecurring fair value measurements $ — $ — $ 11,529 $ 11,529 (1) Included in Other Assets (2) Included in Other Liabilities The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2015 and 2014 were as follows: For the Years Ended December 31, 2015 2014 Residential Mortgage Loan Commitments (amounts in thousands) Balance at January 1, $ 43 $ 240 Issuances 273 235 Settlements (271 ) (432 ) Balance at December 31, $ 45 $ 43 Customers' policy is to recognize transfers between fair value levels when events or circumstances warrant transfers. There were no transfers between levels during the years ended December 31, 2015 and 2014 . The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2015 and 2014 for which Customers utilized Level 3 inputs to measure fair value: Quantitative Information about Level 3 Fair Value Measurements December 31, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars in thousands) Impaired loans $ 4,346 Collateral appraisal (1) Liquidation expenses (2) (8 )% Other real estate owned 358 Collateral appraisal (1) Liquidation expenses (2) (8 )% Residential mortgage loan commitments 45 Adjusted market bid Pull-through rate 94 % Quantitative Information about Level 3 Fair Value Measurements December 31, 2014 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars in thousands) Impaired loans $ 2,380 Collateral appraisal (1) Liquidation expenses (2) (8 )% Other real estate owned 9,149 Collateral appraisal (1) Liquidation expenses (2) (8 )% Residential mortgage loan commitments 43 Adjusted market bid Pull-through rate 80 % (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell. (3) Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers’ derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers’ known or expected cash receipts and its known or expected cash payments principally related to certain fixed-rate borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers’ interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Customers’ objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, Customers sometimes uses interest rate swaps as part of its interest-rate-risk management strategy. Interest-rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2015 and 2014, such derivatives were used to hedge the variable cash flows associated with a forecasted issuance of debt. The ineffective portion of the change in fair value of the derivatives is to be recognized directly in earnings. During 2015 and 2014, Customers did not record any hedge ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on Customers’ variable-rate debt. Customers expects to reclassify $1.7 million from accumulated other comprehensive income to interest expense during the next 12 months. Customers is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 24 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). At December 31, 2015 and 2014 , Customers had one outstanding interest rate derivative with a notional amount of $ 150.0 million that was designated as a cash flow hedge of interest rate risk. The hedge expires in April 2019. Derivatives Not Designated as Hedging Instruments Customers executes interest rate swaps with commercial banking customers to facilitate the customer's respective risk management strategies (typically the loan customers will swap a floating rate loan to a fixed rate loan). The customer interest rate swaps are simultaneously offset by interest rate swaps that Customers executes with a third party in order to minimize interest rate risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting third-party market swaps are recognized directly in earnings. At December 31, 2015 , Customers had 62 interest rate swaps with an aggregate notional amount of $ 461.0 million related to this program. At December 31, 2014 , Customers had 44 interest rate swaps with an aggregate notional amount of $ 251.9 million related to this program. Customers enters into residential mortgage loan commitments in connection with its consumer mortgage banking activities to fund mortgage loans at specified rates and times in the future. These commitments are short-term in nature and generally expire in 30 to 60 days . The residential mortgage loan commitments that relate to the origination of mortgage loans that will be held for sale are considered derivative instruments under applicable accounting guidance and are reported at fair value, with changes in fair value recorded directly to earnings. At December 31, 2015 and 2014, Customers had an outstanding notional balance of residential mortgage loan commitments of $ 2.8 million and $ 3.8 million , respectively. Customers also purchased credit derivatives to hedge the performance risk associated with one 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, 2015 and 2014, Customers had an outstanding notional balance of credit derivatives of $ 19.3 million and $13.4 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 the classification on the balance sheet at December 31, 2015 and 2014. December 31, 2015 Derivative Assets Derivative Liabilities Balance Sheet Balance Sheet Location Fair Value Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ — Other liabilities $ 4,477 Total $ — $ 4,477 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 9,088 Other liabilities $ 9,455 Credit contracts Other assets 162 Other liabilities — Residential mortgage loan commitments Other assets 45 Other liabilities — Total $ 9,295 $ 9,455 December 31, 2014 Derivative Assets Derivative Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ — Other liabilities $ 1,945 Total $ — $ 1,945 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 7,332 Other liabilities $ 7,771 Credit contracts Other assets 177 Other liabilities — Residential mortgage loan commitments Other assets 43 Other liabilities — Total $ 7,552 $ 7,771 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, 2015 and 2014 . For the Year Ended December 31, 2015 Income Statement Location Amount of income (loss) recognized in earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 1,889 Credit contracts Other non-interest income (15 ) Residential mortgage loan commitments Mortgage loan and banking income 2 Total $ 1,876 For the Year Ended December 31, 2014 Income Statement Location Amount of income (loss) recognized in earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 550 Credit contracts Other non-interest income (91 ) Residential mortgage loan commitments Mortgage loan and banking income (197 ) Total $ 262 For the Year Ended December 31, 2013 Income Statement Location Amount of income (loss) recognized in earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 711 Residential mortgage loan commitments Mortgage loan and banking income 240 Total $ 951 For the Year Ended December 31, 2015 Location of Gain Amount of Gain (Loss) Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ (1,534 ) Interest expense $ — For the Year Ended December 31, 2014 Location of Gain Amount of Gain (Loss) Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivative in cash flow hedging relationship: Interest rate swaps $ (1,264 ) Interest expense $ — (1) Amounts presented are net of taxes Credit-risk-related Contingent Features By entering into derivative contracts, Customers is exposed to credit risk. The credit risk associated with derivatives executed with customers is the same as that involved in extending the related loans and is subject to the same standard credit policies. To mitigate the credit-risk exposure to major derivative dealer counterparties, Customers only enters into agreements with those counterparties that maintain credit ratings of high quality. Agreements with major derivative dealer counterparties contain provisions whereby default on any of Customers' indebtedness would be considered a default on its derivative obligations. Customers also has entered into agreements that contain provisions under which the counterparty could require Customers to settle its obligations if Customers fails to maintain its status as a well/adequately-capitalized institution. As of December 31, 2015 , 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 $ 14.3 million . In addition, Customers has collateral posting thresholds with certain of these counterparties and at December 31, 2015 , had posted $ 14.3 million of cash as collateral. Customers records cash posted as collateral as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of other assets. Disclosures about Offsetting Assets and Liabilities The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the table below. Customers has not made a policy election to offset its derivative positions. Offsetting of Financial Assets and Derivative Assets at December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ — $ — $ — $ — $ — $ — Offsetting of Financial Assets and Derivative Assets at December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 192 $ — $ 192 $ 192 $ — $ — Offsetting of Financial Liabilities and Derivative Liabilities at December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 13,932 $ — $ 13,932 $ — $ 13,932 $ — Offsetting of Financial Liabilities and Derivative Liabilities at December 31, 2014 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 9,703 $ — $ 9,703 $ 192 $ 9,511 $ — |
Loss Contingency
Loss Contingency | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency | LOSS CONTINGENCY During the first quarter of 2013, a suspected fraud was discovered in the Bank’s held-for-sale loan portfolio. Total loans involved in this fraud initially was estimated to be $5.2 million , and management believed the range of possible loss to have been between $1.5 million and $3.2 million . Accordingly, management provided a loss contingency of $2.0 million at March 31, 2013. During the second quarter of 2013, Customers determined that an aggregate of $1.0 million of the loans were not involved in the fraud, and these loans were subsequently sold. In addition, Customers recovered $1.5 million in cash from the alleged perpetrator. Because it was determined that the remaining asset no longer met the definition of “a loan,” and because Customers is pursuing restitution through the involved parties, Customers determined this to be a receivable. As a result, the remaining aggregate of $2.7 million of loans and the related $2.0 million reserve were transferred to other assets. As of December 31, 2015, the net amount of the receivable and reserve of $0.6 million remains in other assets. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The following tables present the condensed financial statements for Customers Bancorp, Inc. (parent company only) Balance Sheets December 31, 2015 2014 (amounts in thousands) Assets Cash in subsidiary bank $ 54,567 $ 16,465 Investment securities available for sale, at fair value 5 5 Investments in and receivables due from subsidiaries 583,875 509,465 Other assets 4,190 6,678 Total assets $ 642,637 $ 532,613 Liabilities and Shareholders’ equity Borrowings 88,250 88,250 Other liabilities 485 1,218 Total liabilities 88,735 89,468 Shareholders’ equity 553,902 443,145 Total Liabilities and Shareholders’ Equity $ 642,637 $ 532,613 Income and Comprehensive Income Statements For the Years Ended December 31, 2015 2014 2013 (amounts in thousands) Operating income: Other $ 18,545 $ 90 $ 758 Total operating income 18,545 90 758 Operating expense: Interest 5,854 5,251 1,923 Other 4,604 5,611 3,395 Total operating expense 10,458 10,862 5,318 Income (loss) before taxes and undistributed income of subsidiaries 8,087 (10,772 ) (4,560 ) Income tax benefit 3,516 3,797 1,596 Income (loss) before undistributed income of subsidiaries 11,603 (6,975 ) (2,964 ) Equity in undistributed income of subsidiaries 46,980 50,189 35,658 Net income 58,583 43,214 32,694 Preferred stock dividends 2,493 — — Net income available to common shareholders 56,090 43,214 32,694 Comprehensive income $ 50,721 $ 51,210 $ 23,512 Statements of Cash Flows For the Years Ended December 31, 2015 2014 2013 (amounts in thousands) Cash Flows from Operating Activities: Net income $ 58,583 $ 43,214 $ 32,694 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiaries, net of dividends received from Bank (46,980 ) (50,189 ) (35,658 ) (Increase) decrease in other assets 2,488 (1,354 ) (1,465 ) Increase (decrease) in other liabilities (112 ) 1,497 (281 ) Net Cash Provided By (Used in) Operating Activities 13,979 (6,832 ) (4,710 ) Cash Flows from Investing Activities: Purchases of investment securities available for sale — — — Payments for investments in and advances to subsidiaries (30,036 ) (15,032 ) (177,068 ) Net Cash Used in Investing Activities (30,036 ) (15,032 ) (177,068 ) Cash Flows from Financing Activities: Proceeds from issuance of common stock 904 77 97,507 Proceeds from issuance of preferred stock 55,569 — — Proceeds from issuance of long-term debt — 25,000 60,336 Exercise and redemption of warrants — 6 264 Payments on partial shares for stock dividend — (8 ) — Preferred stock dividends paid (2,314 ) — — Purchase of treasury stock — — (7,754 ) Net Cash Provided by Financing Activities 54,159 25,075 150,353 Net Increase (Decrease) in Cash and Cash Equivalents 38,102 3,211 (31,425 ) Cash and Cash Equivalents – Beginning 16,465 13,254 44,679 Cash and Cash Equivalents – Ending $ 54,567 $ 16,465 $ 13,254 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. Quarterly data may not agree to full year results. 2015 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 67,713 $ 63,736 $ 59,683 $ 58,718 Interest expense 14,245 13,802 13,125 12,388 Net interest income 53,468 49,934 46,558 46,330 Provision for loan losses 6,173 2,094 9,335 2,964 Non-interest income 9,420 6,171 6,393 5,733 Non-interest expenses 31,514 30,307 25,660 27,465 Income before income taxes 25,201 23,704 17,956 21,634 Provision for income taxes 7,415 8,415 6,400 7,682 Net income 17,786 15,289 11,556 13,952 Preferred stock dividend 1,006 980 507 — Net income available to common shareholders $ 16,780 $ 14,309 $ 11,049 $ 13,952 Earnings per common share: Basic $ 0.62 $ 0.53 $ 0.41 $ 0.52 Diluted 0.58 0.50 0.39 0.49 2014 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 57,161 $ 51,298 $ 45,092 $ 36,874 Interest expense 12,175 11,084 8,162 7,082 Net interest income 44,986 40,214 36,930 29,792 Provision for loan losses 2,459 5,035 2,886 4,368 Non-interest income 5,804 5,102 6,911 7,310 Non-interest expenses 27,864 24,679 25,205 21,169 Income before income taxes 20,467 15,602 15,750 11,565 Provision for income taxes 7,289 3,940 5,517 3,429 Net income available to common shareholders $ 13,178 $ 11,662 $ 10,233 $ 8,136 Earnings per common share: Basic $ 0.49 $ 0.44 $ 0.38 $ 0.30 Diluted 0.47 0.42 0.37 0.29 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On January 22, 2016, Customers announced the pricing of its public offering of 1,000,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D (the "Series D Preferred Stock") at a price of $25.00 per share. Dividends on the Series D Preferred Stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 6.50% from the original issue date to, but excluding, March 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.09% per annum. The offering closed on January 29, 2016, and was subject to customary closing conditions. Customers received net proceeds before expenses of $24.2 million from the offering, after deducting offering costs. The net proceeds will be used for general corporate purposes, which may include working capital and the funding of organic growth at Customers Bank. |
Significant Accounting Polici33
Significant Accounting Policies and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of Customers Bancorp, Inc. and subsidiaries are in conformity with accounting principles generally accepted in the United States of America and predominant practices of the banking industry. The preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, credit deterioration and expected cash flows of purchased-credit-impaired loans, FDIC indemnification asset and related clawback liability, valuation of deferred tax assets, other-than-temporary impairment losses on securities, fair values of financial instruments, and annual goodwill impairment analysis. |
Financial Statements Reclassified to Confirm to 2013 Presentation | Certain amounts reported in the 2014 and 2013 financial statements have been reclassified to conform to the 2015 presentation. These reclassifications did not significantly impact Customers financial position or results of operations. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the parent company and its wholly owned subsidiaries: Customers Bank, CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd. Customers Bank includes the accounts of its wholly owned subsidiary CIC, Inc. and other subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents and Statements of Cash Flows | Cash and Cash Equivalents and Statements of Cash Flows Cash and cash equivalents include cash on hand, amounts due from banks, and interest-bearing deposits with banks with a maturity date of three months or less and are recorded at cost. The carrying value of cash and cash equivalents is a reasonable estimate of its approximate fair value. Changes in the balances of cash and cash equivalents are reported in 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. Cash used upon initial funding of Customers' mortgage warehousing lending transactions and proceeds received when the mortgage loans are sold into the secondary market are classified as operating activities within the statement of cash flows. |
Restrictions on Cash and Amounts due from Banks | Restrictions on Cash and Amounts due from Banks Customers Bank is required to maintain average balances on hand or with the Federal Reserve Bank. |
Investment Securities | Investment Securities Customers acquires securities, largely mortgage-backed securities, to effectively utilize cash and capital and to generate earnings. Security transactions are recorded as of the trade date. Securities are classified at the time of acquisition as available for sale, held to maturity, or trading, and their designation determines their accounting as follows: Available for sale : Investments securities classified as available for sale are those debt and equity securities that Customers intends to hold for an indefinite period of time but not necessarily to maturity. Investment securities available for sale are carried at fair value. Unrealized gains or losses are reported as increases or decreases in accumulated other comprehensive income, net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings and recorded at the trade date. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Held to maturity : Investment securities classified as held to maturity are those debt securities that Customers has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs, or changes in general economic conditions. These securities are carried at cost, adjusted for the amortization of premiums and accretion of discounts, computed by a method which approximates the interest method over the terms of the securities. There are no securities classified as held to maturity as of December 31, 2015 or 2014 . Trading: Investment securities classified as trading are those debt and equity securities that management intends to actively trade. These securities are carried at their current fair value, with changes in fair value reported in income. Customers does not actively trade securities. For available-for-sale and held-to-maturity securities, management periodically assesses whether the securities are other than temporarily impaired. Other-than-temporary impairment means that management believes a security’s decline in fair value below its amortized cost basis is due to factors that could include the issuer’s inability to pay interest or dividends, its potential for default, and/or other factors. When a held-to-maturity or available-for-sale debt security is assessed for other-than-temporary impairment, management has to first consider (a) whether Customers intends to sell the security, and (b) whether it is more likely than not that Customers will be required to sell the security prior to recovery of its amortized cost basis. If one of these circumstances applies to a security, an other-than-temporary impairment loss is recognized in the consolidated statements of income equal to the full amount of the decline in fair value below amortized cost. If neither of these circumstances applies to a security, but Customers does not expect to recover the entire amortized cost, an other-than-temporary impairment has occurred that must be separated into two categories: (a) the amount related to credit loss, and (b) the amount related to other factors. In assessing the level of other-than-temporary impairment attributable to credit loss, management compares the present value of cash flows expected to be collected with the amortized cost basis of the security. The portion of the total other-than-temporary impairment related to credit loss is recognized in earnings (as the difference between the fair value and the present value of the estimated cash flows), while the amount related to other factors is recognized in other comprehensive income. The total other-than-temporary impairment loss is presented in the statement of income, less the portion recognized in other comprehensive income. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. For marketable equity securities, the Bancorp considers the issuer’s financial condition, capital strength and near term prospects to determine whether an impairment is temporary or other-than-temporary. The Bancorp also considers the volatility of a security’s price in comparison to the market as a whole and any recoveries or declines in fair value subsequent to the balance sheet date. If management determines that the impairment is other-than-temporary, the entire amount of the impairment as of the balance sheet date is recognized in earnings even if the decision to sell the security has not been made. The fair value of the security becomes the new amortized cost basis of the investment and is not adjusted for subsequent recoveries in fair value. |
Loan Accounting Framework | Loan Accounting Framework The accounting for a loan depends on management’s strategy for the loan, and on whether the loan was credit impaired at the date of acquisition. The Bank accounts for loans based on the following categories: • Loans Held for Sale • Loans at Fair Value • Loans Receivable • Purchased loans • Loans receivable covered under Loss Sharing Agreements with the FDIC. The following provides a detailed discussion of the accounting for loans in these categories: |
Loans Held for Sale and Loans at Fair Value | Loans Held for Sale and Loans at Fair Value Loans originated or acquired by the Bank with the intent to sell 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 made. These loans are generally sold on a non-recourse basis with servicing released. Gains and losses on the sale of loans accounted for at lower of cost or fair value are recognized in earnings based on the difference between the proceeds received and the carrying amount of the loans, inclusive of deferred origination fees and costs, if any. As a result of changes in events and circumstances or developments regarding management’s view of the foreseeable future, loans not originated or acquired with the intent to sell may subsequently be designated as held for sale. These loans are transferred to the held-for-sale portfolio at the lower of amortized cost or fair value. Loans originated or acquired by the Bank with the intent to sell for which fair value accounting is elected are marked to fair value with any difference between the proceeds received and the carrying amount of the loan 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. Certain mortgage warehouse lending transactions subject to master repurchase agreements are designated as held for sale and reported at fair value based on an election to account for the loans at fair value. Pursuant to these agreements, the Bank funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded loans (i.e., the purchase event) and receives proceeds directly from third party investors when the loans are sold into the secondary market (i.e, the repurchase event). An allowance for loan losses is not maintained on loans designated as held for sale or reported at fair value. |
Loans Receivable | Loans Receivable Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans using the level-yield method without anticipating prepayments. The Bank is generally amortizing these amounts over the contractual life of the loans. The accrual of interest is generally discontinued when the contractual payment of principal or interest has become 90 days past due or when management has doubts about further collectibility of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is well secured. When a loan is placed on non-accrual status, unpaid accrued interest credited to income is reversed. Interest received on non-accrual loans is applied against principal until all principal has been recovered. Thereafter, payments are recognized as interest income until all unpaid amounts have been received. Generally, loans are restored to accrual status when the obligation is brought current and has performed in accordance with the contractual terms for a minimum of six months and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. 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 deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) 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 (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Purchased Loans | Purchased Loans Customers believes that the varying circumstances under which it purchases loans and the diverse credit quality of loans purchased should drive the decision as to whether loans in a portfolio should be deemed to be purchased-credit-impaired loans. Therefore, loan purchases are evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans acquired that do not have evidence of credit deterioration at the purchase date are accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs, and loans acquired with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Loans that are purchased that do not have evidence of credit deterioration Purchased performing loans are initially recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments. Purchase premiums or discounts are subsequently amortized as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. An allowance for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected For purchases of this type of loan, 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, which 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 result in a reversal of the provision for loan losses to the extent of prior charges, or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows. Purchased-credit-impaired loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have common 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, the Bank 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 then-current market conditions. If the timing and/or amounts of expected cash flows on purchased-credit-impaired loans were determined not to be reasonably estimable, no interest would be accreted and the loans would be reported as non-accrual loans; however, when the timing and amounts of expected cash flows for purchased-credit-impaired loans are reasonably estimable, interest is being accreted and the loans are being reported as performing loans. |
Loans Receivable Covered Under Loss Sharing Agreements | Loans Receivable Covered Under Loss Sharing Agreements Loans acquired in the FDIC assisted transactions in 2010 from USA Bank and ISN Bank are subject to loss sharing agreements with the FDIC and are referred to as “covered loans.” The period to submit losses under the FDIC loss sharing arrangements for non-single family loans expired in third quarter 2015. The period to submit losses under the FDIC loss sharing arrangements for single family loans expires in third quarter 2017. The final maturity of the FDIC loss sharing arrangements occurs in third quarter 2020. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through provisions for loan losses. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance for loan losses. The allowance for loan losses is maintained at a level considered appropriate to absorb probable incurred loan losses inherent in the loan portfolio as of the reporting date. The Bank disaggregates its loan portfolio into groups of loans with similar risk characteristics for purposes of estimating the allowance for loan losses. The Bank’s loan groups include multi-family, commercial and industrial, commercial real estate, construction, residential real estate, manufactured housing, consumer, and PCI loans. The Bank further disaggregates 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 segregated. The total allowance for loan losses consists of an allowance for impaired loans, a general allowance for losses, and may also include residual non-specific reserve amounts. The allowance for loan losses is maintained at a level considered adequate to provide for losses that are estimated to have been incurred. Management performs a quarterly assessment of the adequacy of the allowance for loan losses, which is based on the Bank’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions 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. The Bank’s current methodology for determining the allowance for loan losses is based on historical loss rates, peer and industry data, current economic conditions, risk ratings, specific allocations on loans identified as impaired, and other qualitative adjustments. The impaired loan component of the allowance for loan losses relates to loans for which it is probable that the Bank will be unable to collect all contractual principal and interest due. For such loans, an allowance is established when the (i) discounted cash flows, (ii) collateral value, or (iii) the impaired loan value is lower than the carrying value of the loan. The general component of the allowance for loan losses covers groups of loans by loan class, including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity loans, home equity lines of credit and other consumer loans. These pools of loans are evaluated for loss exposure based upon loan risk ratings and industry or Customers' historical loss rates for each of these groups of loans. After determining the appropriate historical loss rate for each group of loans, management considers those 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 considers includes 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 and classified loans. • Lending policies and procedures, including underwriting standards and historical-based loss/collection, charge-off, and recovery practices. • Nature and volume of the portfolio including lending concentrations. • Experience, ability, and depth of lending management and staff. 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 specific and general losses in the portfolio. Commercial and industrial loans are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay their obligation as agreed. Commercial and industrial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan facility. Accordingly, the repayment of a commercial and industrial loan depends primarily on the creditworthiness of the borrower (and any guarantors), while liquidation of collateral is a secondary and often insufficient source of repayment. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans will rely on the value associated with the project upon completion. These cost and valuation amounts used are estimates and may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of developed property. These loans are closely monitored by onsite 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. 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 and risk-rating criteria. The Bank 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 represent loans that are secured by the manufactured housing unit where the borrower may or may not own the underlying real estate and therefore have a higher risk than a residential real estate loan. Other consumer loans consist of loans to individuals originated through the Bank’s retail network and are typically unsecured or secured by personal property. Consumer loans have a greater credit risk than residential loans because of the difference in the underlying collateral, if any. The application of various federal and state bankruptcy and insolvency laws may limit the amount that can be recovered on such loans. Delinquency status and other borrower characteristics are used to monitor loans and identify credit risks, and the general reserves are established based on the expected net charge-offs, adjusted for qualitative factors. Loss rates are based on the average net charge-off history, either industry or Customers, by loan group. Historical loss rates may be adjusted for significant factors that, in management’s judgment, are necessary to reflect losses inherent in the portfolio. Factors that management considers in the analysis include the effects of the national and local economies; trends in the nature and volume of delinquencies, charge-offs and non-accrual loans; changes in loan mix; changes in risk management and loan administration; and changes in internal lending policies, credit standards and collection practices. Charge-offs on commercial and industrial, construction, multi-family and commercial real estate loans are recorded when management estimates that there are insufficient cash flows to repay the loan contractual obligation based upon financial information available and valuation of the underlying collateral. Additionally, the Bank 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 reserve associated with any impaired loans. Accordingly, the Bank may charge-off a loan to a value below the net appraised value if it believes that an expeditious liquidation is desirable in 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, the Bank may carry a loan at a value that is in excess of the appraised value certain circumstances, such as the Bank has a guarantee from a borrower that the Bank believes has realizable value. In evaluating the strength of any guarantee, the Bank evaluates the financial wherewithal of the guarantor, the guarantor’s reputation, and the guarantor’s willingness and desire to work with the Bank. The Bank then conducts a review of the strength of a guarantee on a frequency established as the circumstances and conditions of the borrower warrant. The Bank records charge-offs for residential real estate, consumer, and manufactured housing loans after 120 days of delinquency or sooner when cash flows are determined to be insufficient for repayment. The Bank may also charge-off these loans below the net appraised valuation if the Bank holds a junior mortgage position in a piece of collateral whereby the risk to acquiring control of the property through the purchase of the senior mortgage position is deemed to potentially increase the risk of loss upon liquidation due to the amount of time to ultimately market the property and the volatile market conditions. In such cases, the Bank may abandon its junior mortgage and charge-off the loan balance in full. Estimates of cash flows expected to be collected for purchased credit impaired loans are updated each reporting period. If the Bank estimates decreases in expected cash flows to be collected after acquisition, the Bank charges the provision for loan losses and establishes an allowance for loan losses. Credit Quality Factors Commercial and industrial, multi-family, commercial real estate, residential real estate and construction loans are each assigned a numerical rating of risk based on an internal risk rating system. The risk rating indicates management's estimate of the credit quality and the rating is assigned at loan origination and reviewed on a periodic or “as needed” basis. Consumer and manufactured housing loans are evaluated based on the payment activity of the loan. Risk ratings are not established for home equity loans, consumer loans, manufactured housing loans, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based on aggregate payment history (through the monitoring of delinquency levels and trends). For additional information about credit quality factor ratings refer to “NOTE 8 – “ LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES.” Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is 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 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 sell. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Bank's 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, licensed appraiser outside of the Bank using observable market data. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports. |
Goodwill | Goodwill Goodwill represents the excess of cost over the identifiable net assets of businesses acquired. Goodwill is recognized as an asset and is reviewed for impairment annually as of October 31 and between annual tests when events and circumstances indicate that impairment may have occurred. Impairment is a condition that exists when the carrying amount of goodwill exceeds its implied fair value. A qualitative factor test can be performed to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the results of the qualitative review indicate that it is unlikely (less than 50% probability) that the carrying value of the reporting unit exceeds its fair value, no further evaluation needs to be performed. As part of its qualitative assessment, Customers reviewed regional and national trends in current and expected economic conditions, examining indicators such as GDP growth, interest rates and unemployment rates. Customers also considered its own historical performance, expectations of future performance and other trends specific to the banking industry. Based on its qualitative assessment, Customers determined that there was no impairment on the goodwill balance. |
FHLB, Federal Reserve Bank, and other restricted stock | FHLB, Federal Reserve Bank, and other restricted stock FHLB, Federal Reserve Bank, and other restricted stock represents required investment in the capital stock of the Federal Home Loan Bank (“FHLB”), the Federal Reserve Bank and Atlantic Central 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 management and the real estate is carried at the lower of its carrying amount or fair value less estimated costs to sell. Revenue and expenses from operations and changes in the valuation allowance are included in earnings. Certain other real estate owned that was acquired from USA Bank and ISN Bank or through the foreclosure of loans of those banks is subject to loss sharing agreements with the FDIC. |
FDIC Loss Sharing Receivable and Clawback Liability | FDIC Loss Sharing Receivable and Clawback Liability The FDIC loss sharing receivable is measured separately from the related covered assets because it is not contractually embedded in the assets and is not transferable if the assets are sold. The FDIC loss sharing receivable was initially recorded at fair value, based on the discounted value of expected future cash flows under the loss share agreements. The difference between the present value and the undiscounted cash flows the Bank expects to collect from the FDIC is accreted into interest income over the life of the FDIC loss sharing receivable. The FDIC loss sharing receivable is reviewed quarterly and adjusted for changes in expected cash flows based on recent performance and expectations for future performance of the covered portfolio. These adjustments are measured on the same basis as the related covered loans and covered other real estate owned. Increases in estimated cash flows on the covered assets will reduce the FDIC loss sharing receivable and decreases in estimated cash flows on the covered assets will increase the FDIC loss sharing receivable. Increases to the FDIC loss sharing receivable resulting from reduced cash flow estimates on the covered loans are recorded as a reduction to the provision for loan losses and decreases to the FDIC loss sharing receivable are recorded either as an increase to the provision for loan losses (to the extent an increase in the FDIC receivable balance was previously recorded as a reduction to the provision for loan losses) or recognized over the life of the loss share agreements. Decreases in the valuations of covered other real estate owned are recorded net of the FDIC receivable balance resulting from the valuation allowance as an increase to other real estate owned expense (a component of non-interest expense). The FDIC loss sharing receivable balance will be reduced through a charge to the provision for loan losses, with no offsetting reduction to the allowance for loan losses, as the period to submit losses under the FDIC loss sharing agreements approaches expiration and the estimated losses in the covered loans have not yet emerged or been realized in a final disposition event. The period to submit losses under the FDIC loss sharing agreements for non-single family loans expired in third quarter 2015. The period to submit losses under the FDIC loss sharing agreements for single family loans expires in third quarter 2017. The final maturity of the FDIC loss sharing agreements occurs in third quarter 2020. As part of the FDIC loss sharing agreements, the Bank also assumed a potential liability to be paid within 45 days subsequent to the maturity or termination of the loss sharing agreements that is contingent upon actual losses incurred over the life of the agreements relative to expected losses and the consideration paid upon acquisition of the failed institutions. Due to cash received on the covered assets in excess of the original expectations of the FDIC, the Bank anticipates that it will be required to pay the FDIC at the end of its loss sharing agreements. As of December 31, 2015, a clawback liability of $2.3 million has been recorded. To the extent actual losses on the covered assets are less than estimated losses, the clawback liability will increase. To the extent actual losses on the covered assets are more than the estimated losses, the clawback liability will decrease. The Bank presents the FDIC loss sharing receivable balance, net of the estimated clawback liability on the consolidated balance sheet. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance Bank-owned life insurance policies insure the lives of officers of the Bank, and name the Bank 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. The Bank is capitalizing on the ability to partially offset costs associated with employee compensation and benefit programs with the bank-owned life insurance. |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment are recorded at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the term of the lease or estimated useful life, unless extension of the lease term is reasonably assured. |
Treasury Stock | Treasury Stock Common stock purchased for treasury is recorded at cost. |
Income Taxes | Income Taxes Customers accounts for income taxes under the liability method of accounting for income taxes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Customers determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. A tax position is recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent ; the term upon examination includes resolution of the related appeals or litigation process. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. In assessing the realizability of federal or state deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible as well as available tax planning strategies, management believes it is more likely than not that Customers will realize the benefits of these deferred tax assets. |
Share-Based Compensation | Share-Based Compensation Customers Bancorp has four active share-based compensation plans. Share-based compensation accounting guidance requires that the compensation cost relating to share-based-payment transactions be recognized in earnings. The cost is measured based on the grant-date fair value of the equity instruments issued. The Black-Scholes model is used to estimate the fair value of stock options, while the market price of Customers Bancorp’s common stock at the date of grant is used for restricted stock awards. Compensation cost for all share-based awards is calculated and recognized over the employees’ service period, generally defined as the vesting period. For performance based awards, compensation cost is recognized over the vesting period as long as it remains probable that the performance conditions will be met. If the service or performance conditions are not met, Customers reverses previously recorded compensation expense upon forfeiture. In 2014, the shareholders of the Bancorp approved an employee stock purchase plan. Because the purchase price under the plan is 85% of (a 15% discount to the market price) 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. |
Derivative Instruments and Hedging | Derivative Instruments and Hedging ASC 815, Derivatives and Hedging (“ASC 815”), provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for derivative instruments and related hedged items, and (c) how derivative instruments and 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 of 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 a hedge 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 a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. Customers may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or Customers elects not to apply hedge accounting. Prior to first quarter 2014, none of Customers financial derivatives were designated in qualifying hedge relationships in accordance with the applicable accounting guidance. As such, all changes in fair value of the financial derivatives were recognized directly in earnings. In March 2014, Customers entered into a $150.0 million notional balance forward starting pay fixed interest rate swap to hedge the variable cash flows associated with the forecasted issuance of debt. Customers documented and designated this swap as a cash flow hedge. The effective portion of changes in the fair value of financial derivatives designated and qualifying as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the financial derivatives is recognized directly in earnings. Amounts reported in accumulated other comprehensive income related to financial derivatives will be reclassified to interest expense as interest payments are made on Customers' variable-rate debt. Customers purchased credit derivatives with a current notional balance of $19.3 million to hedge the performance risk of one of its counterparties during first quarter 2014. 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. In accordance with the FASB’s fair value measurement guidance, Customers made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers’ derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers’ known or expected cash receipts and its known or expected cash payments principally related to certain fixed-rate borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers’ interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. |
Comprehensive Income | Comprehensive Income Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income includes changes in unrealized gains and losses on securities available for sale arising during the period and reclassification adjustments for realized gains and losses on securities available for sale included in net income. Unrealized gains and losses on securities available for sale include a component for unrealized changes in foreign currency exchange rates relating to the Bancorp’s investment in certain foreign equity securities. Other comprehensive income also includes the effective portion of changes in fair value of financial derivatives designated and qualifying as cash flow hedges. Cash flow hedge amounts classified as comprehensive income are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. |
Earnings per Share | Earnings per Share Basic earnings per share represents net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share includes all potentially dilutive common shares outstanding during the period. Potential common shares that may be issued related to outstanding stock options, restricted stock units, and warrants are determined using the treasury stock method. |
Segment Information | Segment Information Customers has one reportable segment, “Community Banking.” All of Customers' activities are interrelated, and each activity is dependent and assessed based on how each of the activities supports the others. For example, lending is dependent upon the ability of Customers to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of Customers as one segment or unit. |
Recently Issued Accounting Standards and Updates | Recently Issued Accounting Standards and Updates In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases. From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessess. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Customers is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, Financial Instruments - Overall. The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2015-17, Income Taxes . The amendments in this ASU, which will align the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards (IFRS), require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The amendments in this ASU apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments . To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the guidance in this ASU eliminates the requirement to retrospectively account for those adjustments and requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance in this ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and should be applied prospectively to adjustment to provisional amounts that occur after the effective date of this ASU. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In April 2015 and August 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively . The guidance in these ASUs is intended to simplify presentation of debt issuance costs, and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with debt discounts and is applicable on a retrospective basis. The guidance in these ASUs is effective for interim and annual periods beginning after December 15, 2015. The adoption of these ASUs did not have a significant impact on Customers' financial condition or results of operations. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. The guidance in this ASU is intended to amend the update, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this ASU affect the following areas: 1. Limited partnerships and similar legal entities. 2. Evaluating fees paid to a decision maker or a service provider as a variable interest. 3. The effect of fee arrangements on the primary beneficiary determination. 4. The effect of related parties on the primary beneficiary determination. 5. Certain investment funds. The guidance in this ASU is effective for annual and interim periods beginning after December 15, 2015. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20)Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The guidance in this ASU was issued as part of the FASB's initiative to reduce complexity in accounting standards and eliminates from GAAP the concept of extraordinary items. The guidance in this update is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2015. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Subtopic 815-10): Determining Whether the Host contract in a Hybrid Financial Instrument in the Form of a Share is More Akin to Debt or to Equity. The guidance in this ASU requires entities that issue or invest in a hybrid financial instrument to separate an embedded derivative feature from a host contract and account for the feature as a derivative. In the case of derivatives embedded in a hybrid financial instrument that is issued in the form of a share, that criterion requires evaluating whether the nature of the host contract is more akin to debt or to equity and whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to the host contract. If the host contract is akin to equity, then equity-like features (for example, a conversion option) are considered clearly and closely related to the host contract and, thus, would not be separated from the host contract. If the host contract is akin to debt, then equity-like features are not considered clearly and closely related to the host contract. In the latter case, an entity may be required to separate the equity-like embedded derivative feature from the debt host contract if certain other criteria in Subtopic 815-15 are met. Similarly, debt-like embedded derivative features may require separate accounting from an equity-like host contract. The guidance in this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In August 2014, the FASB issued ASU 2014-14 , Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The guidance in this ASU affects creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. It requires that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if the following conditions are met: 1. The loan has a government guarantee that is not separable from the loan before foreclosure. 2. At the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim. 3. At the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The guidance in this ASU was effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The guidance may be applied using a prospective transition method in which a reporting entity applies the guidance to foreclosures that occur after the date of adoption, or a modified retrospective transition using a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. A reporting entity must apply the same method of transition as elected under ASU 2014-04. The adoption of this ASU did not have a significant impact on Customers' financial condition or results of operations. In August 2014, the FASB issued ASU 2014-13 , Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. The guidance in this ASU applies to a reporting entity that is required to consolidate a collateralized financing entity under the Variable Interest Entities guidance when: ( 1 ) the reporting entity measures all of the financial assets and the financial liabilities of that consolidated collateralized financing entity at fair value in the consolidated financial statements based on other Codification Topics; and ( 2 ) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. The guidance in this ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation . The guidance in this ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite period, the remaining unrecognized cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The guidance in this ASU is effective for annual and interim periods beginning after December 15, 2015. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This ASU establishes a comprehensive revenue recognition standard for virtually all industries following U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate and construction industries. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) identify the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. Three basic transition methods are available - full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the cumulative effect alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . The guidance in this ASU is now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Customers does not expect this ASU to have a significant impact on its financial condition or results of operations. |
Fair Value Measurement | Customers uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. FASB ASC 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers’ various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (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. |
Impaired Financing Receivable | Impaired loans: Impaired loans are those that are accounted for under ASC 450, Contingencies , in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. 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 included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The following are the components and results of the Bancorp’s earnings per share ("EPS") calculation for the periods presented. For the Years Ended December 31, 2015 2014 2013 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 56,090 $ 43,214 $ 32,694 Weighted-average number of common shares outstanding – basic 26,844,545 26,719,626 24,485,078 Share-based compensation plans 1,516,297 968,671 464,054 Warrants 324,097 250,707 198,520 Weighted-average number of common shares – diluted 28,684,939 27,939,004 25,147,652 Basic earnings per share $ 2.09 $ 1.62 $ 1.34 Diluted earnings per share 1.96 1.55 1.30 |
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following is a summary of securities that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS because to do so would have been anti-dilutive for the periods presented. For the Years Ended December 31, 2015 2014 2013 Anti-dilutive securities: Share-based compensation awards 606,095 135,861 819,539 Warrants 52,242 118,745 118,745 Total anti-dilutive securities 658,337 254,606 938,284 |
Changes In Accumulated Other 35
Changes In Accumulated Other Comprehensive Income (Loss) By Component (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2015 and 2014 . Available-for-sale Securities Total Unrealized Foreign Unrealized Unrealized Gains Currency Gains Loss on Cash (amounts in thousands) (Losses) (2) Items (Losses) Flow Hedge Total Balance, January 1, 2014 $ (8,118 ) $ — $ (8,118 ) $ — $ (8,118 ) Current period: Other comprehensive income (loss) before reclassifications 11,334 — 11,334 (1,264 ) 10,070 Amounts reclassified from accumulated other comprehensive income to net income (3) (2,074 ) — (2,074 ) — (2,074 ) Net current-period other comprehensive income (loss) 9,260 — 9,260 (1,264 ) 7,996 Balance, December 31, 2014 1,142 — 1,142 (1,264 ) (122 ) Current period: Other comprehensive income (loss) before reclassifications (5,797 ) (584 ) (6,381 ) (1,534 ) (7,915 ) Amounts reclassified from accumulated other comprehensive income to net income (3) 53 — 53 — 53 Net current-period other comprehensive income (loss) (5,744 ) (584 ) (6,328 ) (1,534 ) (7,862 ) Balance, December 31, 2015 $ (4,602 ) $ (584 ) $ (5,186 ) $ (2,798 ) $ (7,984 ) (1) All amounts are net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. (2) Includes immaterial gains or losses on foreign currency items for the year ended December 31, 2014. (3) Reclassification amounts are reported as gain or loss on sale of investment securities on the Consolidated Statements of Income. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 are summarized as follows: December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 506,111 $ 1,453 $ (6,590 ) $ 500,974 Corporate notes (2) 39,925 320 (178 ) 40,067 Equity securities (3) 22,514 — (3,302 ) 19,212 Total $ 568,550 $ 1,773 $ (10,070 ) $ 560,253 (1) Consists of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Includes subordinated debt issued by other bank holding companies. (3) Consists primarily of equity securities issued by a foreign entity. December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 376,854 $ 2,805 $ (2,348 ) $ 377,311 Corporate notes (2) 15,000 104 — 15,104 Equity securities (3) 23,074 1,197 (1 ) 24,270 Total $ 414,928 $ 4,106 $ (2,349 ) $ 416,685 (1) Consists primarily of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Includes subordinated debt issued by other bank holding companies. (3) Consists primarily of equity securities issued by a foreign entity. |
Statement of Proceeds from Sale of Available for Sale Investment Securities | The following table shows proceeds from the sale of available-for-sale investment securities, gross gains, and gross losses on those sales of securities: For the Year Ended December 31, 2015 2014 2013 (amounts in thousands) Proceeds from sale of available-for-sale investment securities $ 806 $ 213,249 $ 135,193 Gross gains $ — $ 3,191 $ 1,274 Gross losses (85 ) — — Net gains $ (85 ) $ 3,191 $ 1,274 |
Summary of Investment Securities by Stated Maturity | The following table shows debt investment securities by stated maturity. Investment securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay, and are, therefore, classified separately with no specific maturity date: December 31, 2015 Available for Sale Amortized Cost Fair Value (amounts in thousands) Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 32,925 33,112 Due after ten years 7,000 6,955 Mortgage-backed securities 506,111 500,974 Total debt securities $ 546,036 $ 541,041 |
Gross Unrealized Losses and Fair Value, Aggregated by Investment Category | Gross unrealized losses and fair value of Customers' investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows: December 31, 2015 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 305,702 $ (4,384 ) $ 57,357 $ (2,206 ) $ 363,059 $ (6,590 ) Corporate notes (2) 9,748 (178 ) — — 9,748 (178 ) Equity securities (3) 19,206 (3,301 ) 6 (1 ) 19,212 (3,302 ) Total $ 334,656 $ (7,863 ) $ 57,363 $ (2,207 ) $ 392,019 $ (10,070 ) (1) Consists of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Includes subordinated debt issued by other bank holding companies. (3) Consists primarily of equity securities issued by a foreign entity. December 31, 2014 Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale: Mortgage-backed securities (1) $ 60,388 $ (81 ) $ 80,426 $ (2,267 ) $ 140,814 $ (2,348 ) Equity securities (2) — — 5 (1 ) 5 (1 ) Total $ 60,388 $ (81 ) $ 80,431 $ (2,268 ) $ 140,819 $ (2,349 ) (1) Consists primarily of mortgage-backed securities issued by government-sponsored agencies, including FHLMC, FNMA, and GNMA. (2) Consists primarily of equity securities issued by a foreign entity. |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables Held-for-sale [Abstract] | |
Composition of Loans Held for Sale | The composition of loans held for sale as of December 31, 2015 and 2014 was as follows: December 31, 2015 2014 (amounts in thousands) Commercial loans: Mortgage warehouse loans at fair value $ 1,754,950 $ 1,332,019 Multi-family loans at lower of cost or fair value 39,257 99,791 Total commercial loans held for sale 1,794,207 1,431,810 Consumer loans: Residential mortgage loans at fair value 2,857 3,649 Total loans held for sale $ 1,797,064 $ 1,435,459 |
Loans Receivable and Allowanc38
Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | The following table presents loans receivable as of December 31, 2015 and 2014 . December 31, 2015 2014 (amounts in thousands) Commercial: Multi-family $ 2,909,439 $ 2,208,405 Commercial and industrial (including owner occupied commercial real estate) 1,111,400 785,669 Commercial real estate non-owner occupied 956,255 839,310 Construction 87,240 49,718 Total commercial loans 5,064,334 3,883,102 Consumer: Residential real estate 271,613 297,395 Manufactured housing 113,490 126,731 Other 3,708 4,433 Total consumer loans 388,811 428,559 Total loans receivable 5,453,145 4,311,661 Deferred costs and unamortized premiums, net 334 512 Allowance for loan losses (35,647 ) (30,932 ) Loans receivable, net of allowance for loan losses $ 5,417,832 $ 4,281,241 |
Loans Receivable by Class and Performance Status | The following tables summarize loans receivable by loan type and performance status as of December 31, 2015 and 2014 : December 31, 2015 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 2,905,789 $ 3,650 $ 2,909,439 Commercial and industrial 39 — 39 1,973 799,595 1,552 803,159 Commercial real estate - owner occupied 268 — 268 2,700 292,312 12,961 308,241 Commercial real estate - non-owner occupied 1,997 — 1,997 1,307 940,895 12,056 956,255 Construction — — — — 87,006 234 87,240 Residential real estate 2,986 — 2,986 2,202 257,984 8,441 271,613 Manufactured housing (5) 3,752 2,805 6,557 2,449 101,132 3,352 113,490 Other consumer 107 — 107 140 3,227 234 3,708 Total $ 9,149 $ 2,805 $ 11,954 $ 10,771 $ 5,387,940 $ 42,480 $ 5,453,145 December 31, 2014 30-89 Days Past Due (1) 90 Or More Days Past Due (1) Total Past Due Still Accruing (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 2,204,059 $ 4,346 $ 2,208,405 Commercial and industrial 884 — 884 2,513 543,245 3,293 549,935 Commercial real estate - owner occupied — — — 2,514 217,187 16,033 235,734 Commercial real estate - non-owner occupied — — — 1,460 822,046 15,804 839,310 Construction — — — 2,325 44,483 2,910 49,718 Residential real estate 1,226 — 1,226 1,855 284,347 9,967 297,395 Manufactured housing (5) 6,324 4,388 10,712 931 111,072 4,016 126,731 Other consumer 147 — 147 135 3,903 248 4,433 Total $ 8,581 $ 4,388 $ 12,969 $ 11,733 $ 4,230,342 $ 56,617 $ 4,311,661 (1) Includes past due loans that are accruing interest because collection is considered probable. (2) Loans where next payment due is less than 30 days from the report date. (3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. |
Schedule of Changes in Allowance for Loans Losses | The following table presents changes in the allowance for loans losses and the FDIC loss sharing receivable, including the effect of the estimated clawback liability for the years ended December 31, 2015 , 2014 and 2013 . Allowance for Loan Losses For The Year Ended December 31, 2015 2014 2013 (amounts in thousands) Beginning Balance $ 30,932 $ 23,998 $ 25,837 Provision for loan losses (1) 16,694 10,058 5,055 Charge-offs (13,412 ) (4,947 ) (7,338 ) Recoveries 1,433 1,823 444 Ending Balance $ 35,647 $ 30,932 $ 23,998 |
Schedule of FDIC Loss Sharing Receivable | FDIC Loss Sharing Receivable For The Year Ended December 31, 2015 2014 2013 (amounts in thousands) Beginning Balance $ 2,320 $ 10,046 $ 12,343 Increased (decreased) estimated cash flows (2) (3,872 ) (4,689 ) 2,819 Increased estimated cash flows from covered OREO (a) 3,138 — — Other activity, net (b) 248 2,409 1,610 Cash receipts from FDIC (3,917 ) (5,446 ) (6,726 ) Ending Balance $ (2,083 ) $ 2,320 $ 10,046 (1) Provision for loan losses $ 16,694 $ 10,058 $ 5,055 (2) Effect attributable to FDIC loss share arrangements 3,872 4,689 (2,819 ) Net amount reported as provision for loan losses $ 20,566 $ 14,747 $ 2,236 (a) Recorded as a reduction to Other Real Estate Owned expense (a component of non-interest expense). (b) Includes external costs, such as legal fees, real estate taxes and appraisal expenses, that qualify for reimbursement under loss share arrangements. |
Summary of Impaired Loans | December 31, 2015 Year Ended December 31, 2015 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Multi-family $ 661 $ 661 $ — $ 267 $ 24 Commercial and industrial 12,056 13,028 — 8,543 891 Commercial real estate - owner occupied 8,317 8,317 — 6,526 454 Commercial real estate - non-owner occupied 4,276 4,276 — 6,605 648 Construction — — — 749 — Other consumer 48 48 — 42 1 Residential real estate 4,331 4,331 — 2,254 86 Manufactured housing 8,300 8,300 — 5,433 368 With an allowance recorded: Commercial and industrial 5,565 5,914 1,990 9,331 191 Commercial real estate - owner occupied 12 12 1 15 1 Commercial real estate - non-owner occupied 555 555 148 817 12 Construction — — — — — Other consumer 92 92 50 83 — Residential real estate 395 395 84 426 2 Total $ 44,608 $ 45,929 $ 2,273 $ 41,091 $ 2,678 December 31, 2014 Year Ended December 31, 2014 Recorded Investment Net of Charge Offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Commercial and industrial $ 14,600 $ 16,122 $ — $ 13,329 $ 674 Commercial real estate - owner occupied 12,599 12,744 — 10,204 504 Commercial real estate - non-owner occupied 5,602 5,602 7,770 383 Construction 2,325 2,325 — 2,415 41 Other consumer 21 21 — 26 — Residential real estate 3,675 5,917 — 4,145 87 Manufactured housing 2,588 2,588 — 2,588 128 With an allowance recorded: Commercial and industrial 1,923 1,923 857 1,725 28 Commercial real estate - owner occupied 750 750 95 1,184 22 Commercial real estate - non-owner occupied 571 571 170 902 17 Construction — — — 851 — Other consumer 114 114 32 82 1 Residential real estate 365 365 188 296 1 Total $ 45,133 $ 49,042 $ 1,342 $ 45,517 $ 1,886 |
Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession | The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the years ended December 31, 2015 , 2014 and 2013. There were no modifications that involved forgiveness of debt. December 31, 2015 Number Recorded (dollars in thousands) Extended under forbearance 1 $ 183 Interest-rate reductions 161 7,274 Total 162 $ 7,457 December 31, 2014 Number Recorded (dollars in thousands) Extended under forbearance 11 $ 460 Interest rate reductions 10 620 Total 21 $ 1,080 December 31, 2013 Number Recorded (dollars in thousands) Extended under forbearance — $ — Interest rate reductions 14 1,238 Total 14 $ 1,238 |
Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments | December 31, 2015 Number of Loans Recorded Investment (dollars in thousands) Commercial and industrial 3 $ 791 Commercial real estate non-owner occupied 1 211 Manufactured housing 156 6,251 Residential real estate 2 204 Total loans 162 $ 7,457 December 31, 2014 Number of Loans Recorded Investment (dollars in thousands) Manufactured housing 10 $ 620 Home equity / other 11 460 Total loans 21 $ 1,080 December 31, 2013 Number Recorded (dollars in thousands) Manufactured housing 13 $ 1,206 Home equity / other 1 32 Total loans 14 $ 1,238 |
Credit Quality Tables | The following table presents the credit ratings as of December 31, 2015 and 2014 for the loans receivable portfolio. December 31, 2015 Multi-family Commercial Commercial Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 2,907,362 $ 784,892 $ 295,762 $ 950,886 $ 87,240 $ 268,210 $ — $ — $ 5,294,352 Special Mention 661 14,052 7,840 1,671 — 282 — — 24,506 Substandard 1,416 4,215 4,639 3,698 — 3,121 — — 17,089 Performing (1) — — — — — — 104,484 3,461 107,945 Non-performing (2) — — — — — — 9,006 247 9,253 Total $ 2,909,439 $ 803,159 $ 308,241 $ 956,255 $ 87,240 $ 271,613 $ 113,490 $ 3,708 $ 5,453,145 December 31, 2014 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 2,206,776 $ 531,790 $ 217,356 $ 829,238 $ 44,642 $ 294,225 $ — $ — $ 4,124,027 Special Mention — 14,565 13,056 6,694 — 243 — — 34,558 Substandard 1,629 3,580 5,322 3,378 5,076 2,927 — — 21,912 Performing (1) — — — — — — 115,088 4,151 119,239 Non-performing (2) — — — — — — 11,643 282 11,925 Total $ 2,208,405 $ 549,935 $ 235,734 $ 839,310 $ 49,718 $ 297,395 $ 126,731 $ 4,433 $ 4,311,661 (1) Includes consumer and other installment loans not subject to risk ratings. (2) Includes loans that are past due and still accruing interest and loans on non-accrual status. |
Schedule of Allowance for Loan Losses | The changes in the allowance for loan losses for the years ended December 31, 2015 and 2014 and the loans and allowance for loan losses by loan class based on impairment evaluation method are as follows. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans. Twelve months ended December 31, 2015 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Beginning Balance, January 1, 2015 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Charge-offs — (11,331 ) (378 ) (327 ) (1,064 ) (276 ) — (36 ) (13,412 ) Recoveries — 548 14 0 204 575 — 92 1,433 Provision for loan losses 3,523 14,863 (2,624 ) (451 ) 887 301 232 (37 ) 16,694 Ending Balance, December 31, 2015 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Loans: Individually evaluated for impairment $ 661 $ 17,621 $ 8,329 $ 4,831 $ — $ 4,726 $ 8,300 $ 140 $ 44,608 Collectively evaluated for impairment 2,905,128 783,986 286,951 939,368 87,006 258,446 101,838 3,334 5,366,057 Loans acquired with credit deterioration 3,650 1,552 12,961 12,056 234 8,441 3,352 234 42,480 $ 2,909,439 $ 803,159 $ 308,241 $ 956,255 $ 87,240 $ 271,613 $ 113,490 $ 3,708 $ 5,453,145 Allowance for loan losses: Individually evaluated for impairment $ — $ 1,990 $ 1 $ 148 $ — $ 84 $ — $ 50 $ 2,273 Collectively evaluated for impairment 12,016 6,650 1,347 3,858 1,074 2,141 98 28 27,212 Loans acquired with credit deterioration — 224 — 4,414 — 1,073 396 55 6,162 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Twelve months ended December 31, 2014 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Other Consumer Total (amounts in thousands) Beginning Balance, January 1, 2014 $ 4,227 $ 2,674 $ 2,517 $ 8,961 $ 2,385 $ 2,490 $ 614 $ 130 $ 23,998 Charge-offs — (1,155 ) (482 ) (1,715 ) (895 ) (667 ) — (33 ) (4,947 ) Recoveries — 511 225 801 13 265 — 8 1,823 Provision for loan losses 4,266 2,754 2,076 1,151 (456 ) 610 (352 ) 9 10,058 Ending Balance, December 31, 2014 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Loans: Individually evaluated for impairment $ — $ 16,523 $ 13,349 $ 6,173 $ 2,325 $ 4,040 $ 2,588 $ 135 $ 45,133 Collectively evaluated for impairment 2,204,059 530,119 206,352 817,333 44,483 283,388 120,127 4,050 4,209,911 Loans acquired with credit deterioration 4,346 3,293 16,033 15,804 2,910 9,967 4,016 248 56,617 $ 2,208,405 $ 549,935 $ 235,734 $ 839,310 $ 49,718 $ 297,395 $ 126,731 $ 4,433 $ 4,311,661 Allowance for loan losses: Individually evaluated for impairment $ — $ 857 $ 95 $ 170 $ — $ 188 $ — $ 32 $ 1,342 Collectively evaluated for impairment 8,493 3,765 1,757 6,580 424 1,436 92 28 22,575 Loans acquired with credit deterioration — 162 2,484 2,448 623 1,074 170 54 7,015 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 |
Changes in Accretable Discount Related to Purchased Credit Impaired Loans | The changes in accretable yield related to purchased-credit-impaired loans for the years ended December 31, 2015, 2014 and 2013 were as follows: December 31, 2015 2014 2013 (amounts in thousands) Accretable yield balance, beginning of period $ 17,606 $ 22,557 $ 32,174 Accretion to interest income (2,299 ) (3,201 ) (6,213 ) Reclassification from nonaccretable difference and disposals, net (2,360 ) (1,750 ) (3,404 ) Accretable yield balance, end of period $ 12,947 $ 17,606 $ 22,557 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Components of Bank Premises and Equipment | The components of bank premises and equipment as of December 31, 2015 and 2014 were as follows: December 31, Expected Useful Life 2015 2014 (amounts in thousands) Leasehold improvements 3 to 25 years $ 12,531 $ 11,680 Furniture, fixtures and equipment 5 to 10 years 5,312 4,504 IT equipment 3 to 5 years 5,909 4,696 Automobiles 5 to 10 years 206 174 23,958 21,054 Accumulated depreciation (12,427 ) (10,244 ) Total $ 11,531 $ 10,810 |
Future Minimum Rental Commitments under Non-Cancelable Leases | Future minimum rental commitments under non-cancelable leases were as follows: December 31, 2015 (amounts in thousands) 2016 $ 3,861 2017 3,662 2018 3,450 2019 2,826 2020 1,994 Subsequent to 2020 3,258 Total minimum payments $ 19,051 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Components of Deposits | The components of deposits at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 (amounts in thousands) Demand, non-interest bearing $ 653,679 $ 546,436 Demand, interest bearing 127,215 71,202 Savings, including money market deposit accounts 2,781,010 2,203,237 Time, $100,000 and over 1,624,562 1,043,265 Time, other 723,035 668,398 Total deposits $ 5,909,501 $ 4,532,538 |
Schedule of Time Deposit Maturities | Time deposits scheduled maturities at December 31, 2015 were as follows: December 31, 2015 (amounts in thousands) 2016 $ 1,799,310 2017 312,813 2018 135,952 2019 53,591 2020 45,931 Total time deposits $ 2,347,597 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Short Term Borrowings | Short-term debt at December 31, 2015 and 2014 was as follows: December 31, 2015 2014 Amount Rate Amount Rate (amounts in thousands) FHLB advances $ 1,365,300 0.48 % $ 1,298,000 0.29 % Federal funds purchased 70,000 0.56 — — Total short-term debt $ 1,435,300 $ 1,298,000 |
Summary of Bancorps Short Term Borrowings | The following is a summary of additional information relating to Customers' short-term debt: December 31, 2015 2014 2013 (amounts in thousands) FHLB advances: Maximum outstanding at any month end $ 1,365,300 $ 1,383,000 $ 769,750 Average balance during the year 844,835 898,396 120,309 Weighted-average interest rate during the year 0.60 % 0.46 % 0.55 % Federal funds purchased: Maximum outstanding at any month end 85,000 35,000 125,000 Average balance during the year 41,397 13,312 32,351 Weighted-average interest rate during the year 0.35 % 0.31 % 0.31 % |
Contractual Maturities of Long-Term Advances | The contractual maturities of long-term advances from the FHLB were as follows: December 31, 2015 2014 Amount Rate Amount Rate (amounts in thousands) 2016 $ — — % $ 85,000 0.59 % 2017 205,000 1.18 180,000 1.21 2018 55,000 1.61 55,000 1.61 $ 260,000 $ 320,000 |
Share-Based Compensation Plans
Share-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Statement of Weighted-Average Assumptions Used and Resulting Weighted-Average Fair Value of Option | The following table presents the weighted-average assumptions used and the resulting weighted-average fair value of each option granted. 2015 2014 2013 Weighted-average risk-free interest rate 1.90 % 2.16 % 1.42 % Expected dividend yield — % — % — % Weighted-average expected volatility 21.18 % 18.00 % 13.77 % Weighted-average expected life (in years) 7.00 7.00 7.00 Weighted-average fair value of each option granted $ 6.42 $ 4.52 $ 3.17 |
Summary of Stock Option Activity | The following summarizes stock option activity for the year ended December 31, 2015 : 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, January 1, 2015 3,168,067 $ 12.61 Granted 599,745 23.36 Exercised (31,168 ) 10.53 455 Forfeited (2,200 ) 17.65 Expired (2,683 ) 29.33 Outstanding, December 31, 2015 3,731,761 $ 14.33 6.78 $ 48,086 Exercisable at December 31, 2015 707,745 $ 9.19 4.38 $ 12,760 |
Summary of Non-Vested Options | A summary of the status of Customers' non-vested options at December 31, 2015 and changes during the year ended December 31, 2015 is as follows: Options Weighted- average exercise price Non-vested at January 1, 2015 3,154,384 $ 12.59 Granted 599,745 23.36 Vested (725,163 ) 12.50 Forfeited (2,200 ) 17.65 Non-vested at December 31, 2015 3,026,766 15.53 |
Status of Restricted Stock | The table below presents the status of the restricted stock units at December 31, 2015 and changes during the year ended December 31, 2015 : Restricted Stock Units Weighted- average grant- date fair value Outstanding and unvested at January 1, 2015 788,971 $ 13.00 Granted 158,581 19.67 Vested (65,218 ) 12.02 Forfeited (9,070 ) 17.15 Outstanding and unvested at December 31, 2015 873,264 $ 14.24 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: For the Years Ended December 31, 2015 2014 2013 (amounts in thousands) Current $ 40,004 $ 26,361 $ 15,394 Deferred (10,092 ) (6,187 ) 2,210 Total $ 29,912 $ 20,174 $ 17,604 |
Schedule of Income (Loss) Before Income Tax Expense (Benefit) | Effective tax rates differ from the federal statutory rate of 35% , which is applied to income before income tax expense, due to the following: For the Years Ended December 31, 2015 2014 2013 Amount % of Amount % of Amount % of (amounts in thousands) Federal income tax at statutory rate $ 30,973 35.00 % $ 22,185 35.00 % $ 17,604 35.00 % State income tax 1,434 1.62 1,355 2.14 353 0.70 Tax-exempt interest, net of disallowance (277 ) (0.31 ) (249 ) (0.39 ) (148 ) (0.30 ) Bank-owned life insurance (2,422 ) (2.73 ) (1,296 ) (2.04 ) (868 ) (1.73 ) Other 204 0.22 (1,821 ) (2.88 ) 663 1.33 Effective income tax rate $ 29,912 33.80 % $ 20,174 31.83 % $ 17,604 35.00 % |
Components of Net Deferred Tax Assets (Liabilities) | The following represents the Bancorp's deferred tax asset and liabilities as December 31, 2015 and 2014 : December 31, 2015 2014 (amounts in thousands) Deferred tax assets: Allowance for loan losses $ 13,248 $ 11,555 Net unrealized losses on securities 3,112 — OREO expenses 728 588 Non-accrual interest 840 541 Net operating losses 2,290 1,892 Deferred compensation 1,337 1,361 Equity-based compensation 5,196 3,751 Fair value adjustments on acquisitions 428 — Cash flow hedge 1,679 681 Incentive compensation 2,497 1,558 Other 1,374 1,120 Total deferred tax assets 32,729 23,047 Deferred tax liabilities: Fair value adjustments on acquisitions — (2,002 ) Net unrealized gains on securities — (615 ) Net deferred loan fees (2,688 ) (4,524 ) Bank premises and equipment (875 ) (1,009 ) Other (592 ) (1,140 ) Total deferred tax liabilities (4,155 ) (9,290 ) Net deferred tax asset $ 28,574 $ 13,757 |
Transactions with Executive O44
Transactions with Executive Officers, Directors, and Principal Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 (amounts in thousands) Balance – January 1 $ 9 $ 7,273 $ 3,272 Additions 2,218 5 9,280 Repayments (2,007 ) (7,269 ) (5,279 ) Balance – December 31 $ 220 $ 9 $ 7,273 |
Financial Instruments with Of45
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments Outstanding Contract Amounts Represent Credit Risk | The following financial instruments were outstanding whose contract amounts represent credit risk: December 31, 2015 2014 (amounts in thousands) Commitments to fund loans $ 537,380 $ 231,294 Unfunded commitments to fund mortgage warehouse loans 1,302,759 713,619 Unfunded commitments under lines of credit 436,550 430,995 Letters of credit 42,002 36,206 Other unused commitments 6,360 7,685 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |
Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios | To be categorized as well capitalized, an institution must maintain minimum common equity Tier 1, total risk based, Tier 1 risk based and Tier 1 leveraged ratios as set forth in the following table: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Common equity Tier 1 (to risk-weighted assets) Customers Bancorp, Inc. $ 500,624 7.61 % $ 296,014 4.5 % N/A N/A Customers Bank $ 565,217 8.62 % $ 294,916 4.5 % $ 425,990 6.5 % Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 698,323 10.62 % $ 526,247 8.0 % N/A N/A Customers Bank $ 710,864 10.85 % $ 524,295 8.0 % $ 655,369 10.0 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 556,193 8.46 % $ 394,685 6.0 % N/A N/A Customers Bank $ 565,217 8.62 % $ 393,221 6.0 % $ 524,295 8.0 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 556,193 7.16 % $ 310,812 4.0 % N/A N/A Customers Bank $ 565,217 7.30 % $ 309,883 4.0 % $ 387,353 5.0 % December 31, 2014 Total capital (to risk-weighted assets) Customers Bancorp, Inc. $ 578,644 11.09 % $ 417,473 8.0 % N/A N/A Customers Bank $ 621,894 11.98 % $ 415,141 8.0 % $ 518,926 10.0 % Tier 1 capital (to risk-weighted assets) Customers Bancorp, Inc. $ 437,712 8.39 % $ 208,737 4.0 % N/A N/A Customers Bank $ 480,963 9.27 % $ 207,570 4.0 % $ 311,356 6.0 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 437,712 6.69 % $ 261,622 4.0 % N/A N/A Customers Bank $ 480,963 7.39 % $ 260,462 4.0 % $ 325,577 5.0 % |
Disclosures about Fair Value 47
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers’ financial instruments were as follows at December 31, 2015 and 2014 . Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2015 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 $ 264,593 $ 264,593 $ 264,593 $ — $ — Investment securities, available for sale 560,253 560,253 19,212 541,041 — Loans held for sale 1,797,064 1,797,458 — 1,757,807 39,651 Loans receivable, net of allowance for loan losses 5,417,832 5,353,903 — — 5,353,903 FHLB, Federal Reserve Bank and other restricted stock 90,841 90,841 — 90,841 — Derivatives 9,295 9,295 — 9,250 45 Liabilities: Deposits $ 5,909,501 $ 5,911,754 $ 3,561,905 $ 2,349,849 $ — Federal funds purchased 70,000 70,000 70,000 — — FHLB advances 1,625,300 1,625,468 1,365,300 260,168 — Other borrowings 88,250 93,804 68,867 24,937 — Subordinated debt 110,000 110,825 — 110,825 — Derivatives 13,932 13,932 — 13,932 — Carrying Amount Estimated Fair Value Fair Value Measurements at December 31, 2014 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 $ 371,023 $ 371,023 $ 371,023 $ — $ — Investment securities, available for sale 416,685 416,685 24,270 392,415 — Loans held for sale 1,435,459 1,436,460 — 1,335,668 100,792 Loans receivable, net of allowance for loan losses 4,281,241 4,285,537 — — 4,285,537 FHLB and Federal Reserve Bank, and other restricted stock 82,002 82,002 — 82,002 — Derivatives 7,552 7,552 — 7,509 43 Liabilities: Deposits $ 4,532,538 $ 4,540,507 $ 2,820,875 $ 1,719,632 $ — FHLB advances 1,618,000 1,619,858 1,298,000 321,858 — Other borrowings 88,250 92,069 66,944 25,125 — Subordinated debt 110,000 111,925 — 111,925 — Derivatives 9,716 9,716 — 9,716 — |
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, 2015 and 2014 were as follows: December 31, 2015 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: Mortgage-backed securities $ — $ 500,974 $ — $ 500,974 Corporate notes — 40,067 — 40,067 Equity securities 19,212 — — 19,212 Derivatives (1) — 9,250 45 9,295 Loans held for sale – fair value option — 1,757,807 — 1,757,807 Total assets - recurring fair value measurements $ 19,212 $ 2,308,098 $ 45 $ 2,327,355 Liabilities Derivatives (2) $ — $ 13,932 $ — $ 13,932 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $2,273 $ — $ — $ 4,346 $ 4,346 Other real estate owned — — 358 358 Total assets - nonrecurring fair value measurements $ — $ — $ 4,704 $ 4,704 December 31, 2014 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: Mortgage-backed securities $ — $ 377,311 $ — $ 377,311 Corporate notes — 15,104 — 15,104 Equity securities 24,270 — — 24,270 Derivatives (1) — 7,509 43 7,552 Loans held for sale – fair value option — 1,335,668 — 1,335,668 Total assets - recurring fair value measurements $ 24,270 $ 1,735,592 $ 43 $ 1,759,905 Liabilities Derivatives (2) $ — $ 9,716 $ — $ 9,716 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $1,342 $ — $ — $ 2,380 $ 2,380 Other real estate owned — — 9,149 9,149 Total assets - nonrecurring fair value measurements $ — $ — $ 11,529 $ 11,529 (1) Included in Other Assets (2) Included in Other Liabilities |
Statement of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2015 and 2014 were as follows: For the Years Ended December 31, 2015 2014 Residential Mortgage Loan Commitments (amounts in thousands) Balance at January 1, $ 43 $ 240 Issuances 273 235 Settlements (271 ) (432 ) Balance at December 31, $ 45 $ 43 |
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, 2015 and 2014 for which Customers utilized Level 3 inputs to measure fair value: Quantitative Information about Level 3 Fair Value Measurements December 31, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars in thousands) Impaired loans $ 4,346 Collateral appraisal (1) Liquidation expenses (2) (8 )% Other real estate owned 358 Collateral appraisal (1) Liquidation expenses (2) (8 )% Residential mortgage loan commitments 45 Adjusted market bid Pull-through rate 94 % Quantitative Information about Level 3 Fair Value Measurements December 31, 2014 Fair Value Valuation Technique Unobservable Input Range (Weighted (dollars in thousands) Impaired loans $ 2,380 Collateral appraisal (1) Liquidation expenses (2) (8 )% Other real estate owned 9,149 Collateral appraisal (1) Liquidation expenses (2) (8 )% Residential mortgage loan commitments 43 Adjusted market bid Pull-through rate 80 % (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell. (3) Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned. |
Derivative Instruments and He48
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 the classification on the balance sheet at December 31, 2015 and 2014. December 31, 2015 Derivative Assets Derivative Liabilities Balance Sheet Balance Sheet Location Fair Value Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ — Other liabilities $ 4,477 Total $ — $ 4,477 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 9,088 Other liabilities $ 9,455 Credit contracts Other assets 162 Other liabilities — Residential mortgage loan commitments Other assets 45 Other liabilities — Total $ 9,295 $ 9,455 December 31, 2014 Derivative Assets Derivative Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ — Other liabilities $ 1,945 Total $ — $ 1,945 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 7,332 Other liabilities $ 7,771 Credit contracts Other assets 177 Other liabilities — Residential mortgage loan commitments Other assets 43 Other liabilities — Total $ 7,552 $ 7,771 |
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, 2015 and 2014 . For the Year Ended December 31, 2015 Income Statement Location Amount of income (loss) recognized in earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 1,889 Credit contracts Other non-interest income (15 ) Residential mortgage loan commitments Mortgage loan and banking income 2 Total $ 1,876 For the Year Ended December 31, 2014 Income Statement Location Amount of income (loss) recognized in earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 550 Credit contracts Other non-interest income (91 ) Residential mortgage loan commitments Mortgage loan and banking income (197 ) Total $ 262 For the Year Ended December 31, 2013 Income Statement Location Amount of income (loss) recognized in earnings (amounts in thousands) Derivatives not designated as hedging instruments: Interest rate swaps Other non-interest income $ 711 Residential mortgage loan commitments Mortgage loan and banking income 240 Total $ 951 For the Year Ended December 31, 2015 Location of Gain Amount of Gain (Loss) Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ (1,534 ) Interest expense $ — For the Year Ended December 31, 2014 Location of Gain Amount of Gain (Loss) Amount of Loss (Loss) Reclassified Reclassified from Recognized in OCI on from Accumulated Accumulated OCI into Derivatives (Effective OCI into Income Income (Effective Portion) (1) (Effective Portion) Portion) (amounts in thousands) Derivative in cash flow hedging relationship: Interest rate swaps $ (1,264 ) Interest expense $ — (1) Amounts presented are net of taxes |
Summary of Offsetting of Financial Assets and Derivative Assets | The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the table below. Customers has not made a policy election to offset its derivative positions. Offsetting of Financial Assets and Derivative Assets at December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ — $ — $ — $ — $ — $ — Offsetting of Financial Assets and Derivative Assets at December 31, 2014 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Received Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 192 $ — $ 192 $ 192 $ — $ — |
Summary of Offsetting of Financial Liabilities and Derivative Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities at December 31, 2015 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 13,932 $ — $ 13,932 $ — $ 13,932 $ — Offsetting of Financial Liabilities and Derivative Liabilities at December 31, 2014 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 9,703 $ — $ 9,703 $ 192 $ 9,511 $ — |
Condensed Financial Statement49
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Summary of Condensed Balance Sheets of Parent Company | Balance Sheets December 31, 2015 2014 (amounts in thousands) Assets Cash in subsidiary bank $ 54,567 $ 16,465 Investment securities available for sale, at fair value 5 5 Investments in and receivables due from subsidiaries 583,875 509,465 Other assets 4,190 6,678 Total assets $ 642,637 $ 532,613 Liabilities and Shareholders’ equity Borrowings 88,250 88,250 Other liabilities 485 1,218 Total liabilities 88,735 89,468 Shareholders’ equity 553,902 443,145 Total Liabilities and Shareholders’ Equity $ 642,637 $ 532,613 |
Summary of Condensed Income Statements of Parent Company | Income and Comprehensive Income Statements For the Years Ended December 31, 2015 2014 2013 (amounts in thousands) Operating income: Other $ 18,545 $ 90 $ 758 Total operating income 18,545 90 758 Operating expense: Interest 5,854 5,251 1,923 Other 4,604 5,611 3,395 Total operating expense 10,458 10,862 5,318 Income (loss) before taxes and undistributed income of subsidiaries 8,087 (10,772 ) (4,560 ) Income tax benefit 3,516 3,797 1,596 Income (loss) before undistributed income of subsidiaries 11,603 (6,975 ) (2,964 ) Equity in undistributed income of subsidiaries 46,980 50,189 35,658 Net income 58,583 43,214 32,694 Preferred stock dividends 2,493 — — Net income available to common shareholders 56,090 43,214 32,694 Comprehensive income $ 50,721 $ 51,210 $ 23,512 |
Summary of Condensed Statements of Cash Flows of Parent Company | Statements of Cash Flows For the Years Ended December 31, 2015 2014 2013 (amounts in thousands) Cash Flows from Operating Activities: Net income $ 58,583 $ 43,214 $ 32,694 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiaries, net of dividends received from Bank (46,980 ) (50,189 ) (35,658 ) (Increase) decrease in other assets 2,488 (1,354 ) (1,465 ) Increase (decrease) in other liabilities (112 ) 1,497 (281 ) Net Cash Provided By (Used in) Operating Activities 13,979 (6,832 ) (4,710 ) Cash Flows from Investing Activities: Purchases of investment securities available for sale — — — Payments for investments in and advances to subsidiaries (30,036 ) (15,032 ) (177,068 ) Net Cash Used in Investing Activities (30,036 ) (15,032 ) (177,068 ) Cash Flows from Financing Activities: Proceeds from issuance of common stock 904 77 97,507 Proceeds from issuance of preferred stock 55,569 — — Proceeds from issuance of long-term debt — 25,000 60,336 Exercise and redemption of warrants — 6 264 Payments on partial shares for stock dividend — (8 ) — Preferred stock dividends paid (2,314 ) — — Purchase of treasury stock — — (7,754 ) Net Cash Provided by Financing Activities 54,159 25,075 150,353 Net Increase (Decrease) in Cash and Cash Equivalents 38,102 3,211 (31,425 ) Cash and Cash Equivalents – Beginning 16,465 13,254 44,679 Cash and Cash Equivalents – Ending $ 54,567 $ 16,465 $ 13,254 |
Selected Quarterly Financial 50
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table presents selected quarterly data for the years ended December 31, 2015 and 2014. Quarterly data may not agree to full year results. 2015 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 67,713 $ 63,736 $ 59,683 $ 58,718 Interest expense 14,245 13,802 13,125 12,388 Net interest income 53,468 49,934 46,558 46,330 Provision for loan losses 6,173 2,094 9,335 2,964 Non-interest income 9,420 6,171 6,393 5,733 Non-interest expenses 31,514 30,307 25,660 27,465 Income before income taxes 25,201 23,704 17,956 21,634 Provision for income taxes 7,415 8,415 6,400 7,682 Net income 17,786 15,289 11,556 13,952 Preferred stock dividend 1,006 980 507 — Net income available to common shareholders $ 16,780 $ 14,309 $ 11,049 $ 13,952 Earnings per common share: Basic $ 0.62 $ 0.53 $ 0.41 $ 0.52 Diluted 0.58 0.50 0.39 0.49 2014 Quarter Ended December 31 September 30 June 30 March 31 (amounts in thousands, except per share data) Interest income $ 57,161 $ 51,298 $ 45,092 $ 36,874 Interest expense 12,175 11,084 8,162 7,082 Net interest income 44,986 40,214 36,930 29,792 Provision for loan losses 2,459 5,035 2,886 4,368 Non-interest income 5,804 5,102 6,911 7,310 Non-interest expenses 27,864 24,679 25,205 21,169 Income before income taxes 20,467 15,602 15,750 11,565 Provision for income taxes 7,289 3,940 5,517 3,429 Net income available to common shareholders $ 13,178 $ 11,662 $ 10,233 $ 8,136 Earnings per common share: Basic $ 0.49 $ 0.44 $ 0.38 $ 0.30 Diluted 0.47 0.42 0.37 0.29 |
Description of the Business - N
Description of the Business - Narrative (Detail) | Dec. 31, 2015Branch |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches | 14 |
Acquisition Activity - Narrativ
Acquisition Activity - Narrative (Detail) $ in Millions | Jul. 01, 2018USD ($) | Jul. 01, 2017USD ($) | Jul. 01, 2016USD ($)employee | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($)Office | Jul. 01, 2018USD ($) |
Capital Unit [Line Items] | ||||||
Purchase price as percentage of loans outstanding | 98.70% | |||||
Commercial loans acquired | $ 182.3 | |||||
Portion of commercial loans drawn at date of acquisition | $ 155.1 | |||||
Number of commercial lending offices assumed | Office | 2 | |||||
New England Commercial Lending Acquisition | ||||||
Capital Unit [Line Items] | ||||||
Adjustable-rate jumbo mortgage loans purchased | $ 277.9 | |||||
Purchase price as percentage of loans outstanding | 100.75% | |||||
Scenario, Forecast | Higher One, Inc's Disbursements Business | ||||||
Capital Unit [Line Items] | ||||||
Number of employees hired | employee | 225 | |||||
Payments made to Higher One, Inc. | $ 10 | $ 10 | $ 17 | $ 42 | ||
Payments under transition services agreement | $ 5 |
Significant Accounting Polici53
Significant Accounting Policies and Basis of Presentation - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)SegmentCompensationPlan | Dec. 31, 2014USD ($) | Mar. 31, 2014USD ($) | |
Derivative [Line Items] | |||
Average reserve balances maintained with federal reserve bank | $ 73,200,000 | $ 61,200,000 | |
Deferred cost of bank loans | $ 0 | ||
Contractual payment of principal duration (days) | 90 days | ||
Contractual terms for loans (months) | 6 months | ||
Covered loans outstanding | $ 13,800,000 | 42,200,000 | |
Maximum loan to value ratio | 80.00% | ||
Delinquency period for loan charge-offs (days) | 120 days | ||
Goodwill | $ 3,651,000 | 3,664,000 | |
FHLB, Federal Reserve Bank, and other restricted stock | 90,841,000 | 82,002,000 | |
Federal Home Loan Bank stock | $ 78,900,000 | 71,600,000 | |
Clawback liability payment date | 45 days | ||
Clawback liability | $ 2,300,000 | ||
Expected FDIC receivable | 200,000 | ||
Clawback liability, net | $ 2,100,000 | ||
Percentage of tax position will realized or sustained upon examination | 50.00% | ||
Number of share-based compensation plans | CompensationPlan | 4 | ||
Number of reportable segments (segment) | Segment | 1 | ||
Interest Rate Swap | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 461,000,000 | 251,900,000 | |
Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative notional amount | 150,000,000 | 150,000,000 | $ 150,000,000 |
Credit contracts | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Derivative notional amount | $ 19,300,000 | 13,400,000 | $ 19,300,000 |
ESPP | |||
Derivative [Line Items] | |||
Purchase price under employee stock purchase plan (percent) | 85.00% | ||
Purchase price under employee stock purchase plan, discount (percent) | 15.00% | ||
Federal Deposit Insurance Corporation | |||
Repurchase Agreement Counterparty [Line Items] | |||
Other real estate owned | $ 500,000 | $ 9,400,000 |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||
Net income available to common shareholders | $ 16,780 | $ 14,309 | $ 11,049 | $ 13,952 | $ 13,178 | $ 11,662 | $ 10,233 | $ 8,136 | $ 56,090 | $ 43,214 | $ 32,694 |
Weighted-average number of common shares outstanding – basic (shares) | 26,844,545 | 26,719,626 | 24,485,078 | ||||||||
Share-based compensation plans (shares) | 1,516,297 | 968,671 | 464,054 | ||||||||
Warrants (shares) | 324,097 | 250,707 | 198,520 | ||||||||
Weighted-average number of common shares – diluted (shares) | 28,684,939 | 27,939,004 | 25,147,652 | ||||||||
Basic earnings per share (usd per share) | $ 0.62 | $ 0.53 | $ 0.41 | $ 0.52 | $ 0.49 | $ 0.44 | $ 0.38 | $ 0.30 | $ 2.09 | $ 1.62 | $ 1.34 |
Diluted earnings per share (usd per share) | $ 0.58 | $ 0.50 | $ 0.39 | $ 0.49 | $ 0.47 | $ 0.42 | $ 0.37 | $ 0.29 | $ 1.96 | $ 1.55 | $ 1.30 |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 658,337 | 254,606 | 938,284 |
Share-based compensation awards | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 606,095 | 135,861 | 819,539 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 52,242 | 118,745 | 118,745 |
Changes In Accumulated Other 56
Changes In Accumulated Other Comprehensive Income (Loss) By Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | $ (122) | $ (8,118) |
Other comprehensive income (loss) before reclassifications | (7,915) | 10,070 |
Amounts reclassified from accumulated other comprehensive income to net income | 53 | (2,074) |
Net current-period other comprehensive income (loss) | (7,862) | 7,996 |
Accumulated other comprehensive income (loss), ending balance | (7,984) | (122) |
Unrealized gains (losses), available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | 1,142 | (8,118) |
Other comprehensive income (loss) before reclassifications | (5,797) | 11,334 |
Amounts reclassified from accumulated other comprehensive income to net income | 53 | (2,074) |
Net current-period other comprehensive income (loss) | (5,744) | 9,260 |
Accumulated other comprehensive income (loss), ending balance | (4,602) | 1,142 |
Foreign currency items, available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | 0 | 0 |
Other comprehensive income (loss) before reclassifications | (584) | 0 |
Amounts reclassified from accumulated other comprehensive income to net income | 0 | 0 |
Net current-period other comprehensive income (loss) | (584) | 0 |
Accumulated other comprehensive income (loss), ending balance | (584) | 0 |
Total unrealized gains (losses), available-for-sale securities | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | 1,142 | (8,118) |
Other comprehensive income (loss) before reclassifications | (6,381) | 11,334 |
Amounts reclassified from accumulated other comprehensive income to net income | 53 | (2,074) |
Net current-period other comprehensive income (loss) | (6,328) | 9,260 |
Accumulated other comprehensive income (loss), ending balance | (5,186) | 1,142 |
Unrealized loss on cash flow hedge | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Accumulated other comprehensive income (loss), beginning balance | (1,264) | 0 |
Other comprehensive income (loss) before reclassifications | (1,534) | (1,264) |
Amounts reclassified from accumulated other comprehensive income to net income | 0 | 0 |
Net current-period other comprehensive income (loss) | (1,534) | (1,264) |
Accumulated other comprehensive income (loss), ending balance | $ (2,798) | $ (1,264) |
Investment Securities - Narrati
Investment Securities - Narrative (Detail) $ in Millions | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Number of available-for-sale investment securities in the less than twelve month category (security) | 26 | |
Number of available-for-sale investment securities in the twelve month or more category (security) | 16 | |
Pledged investment securities fair value | $ | $ 299.8 | $ 376.9 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 568,550 | $ 414,928 |
Gross Unrealized Gains | 1,773 | 4,106 |
Gross Unrealized Losses | (10,070) | (2,349) |
Investment securities available for sale, fair value | 560,253 | 416,685 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 506,111 | 376,854 |
Gross Unrealized Gains | 1,453 | 2,805 |
Gross Unrealized Losses | (6,590) | (2,348) |
Investment securities available for sale, fair value | 500,974 | 377,311 |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 39,925 | 15,000 |
Gross Unrealized Gains | 320 | 104 |
Gross Unrealized Losses | (178) | 0 |
Investment securities available for sale, fair value | 40,067 | 15,104 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,514 | 23,074 |
Gross Unrealized Gains | 0 | 1,197 |
Gross Unrealized Losses | (3,302) | (1) |
Investment securities available for sale, fair value | $ 19,212 | $ 24,270 |
Investment Securities - Stateme
Investment Securities - Statement of Proceeds from Sale of Available for Sale Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sale of available-for-sale investment securities | $ 806 | $ 213,249 | $ 135,193 |
Gross gains | 0 | 3,191 | 1,274 |
Gross losses | (85) | 0 | 0 |
Net gains | $ (85) | $ 3,191 | $ 1,274 |
Investment Securities - Summa60
Investment Securities - Summary of Investment Securities by Stated Maturity (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost, due in one year or less | $ 0 |
Amortized cost, due after one year through five years | 0 |
Amortized cost, due after five years through ten years | 32,925 |
Amortized cost, due after ten years | 7,000 |
Mortgage-backed securities, amortized cost | 506,111 |
Amortized cost | 546,036 |
Fair value, due in one year or less | 0 |
Fair value, due after one year through five years | 0 |
Fair value, due after five years through ten years | 33,112 |
Fair value, due after ten years | 6,955 |
Mortgage-backed securities, fair value | 500,974 |
Total debt securities, fair value | $ 541,041 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value, Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | $ 334,656 | $ 60,388 |
Less than 12 months, unrealized losses | (7,863) | (81) |
12 months or more, fair value | 57,363 | 80,431 |
12 months or more, unrealized losses | (2,207) | (2,268) |
Fair value, total | 392,019 | 140,819 |
Unrealized losses, total | (10,070) | (2,349) |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 305,702 | 60,388 |
Less than 12 months, unrealized losses | (4,384) | (81) |
12 months or more, fair value | 57,357 | 80,426 |
12 months or more, unrealized losses | (2,206) | (2,267) |
Fair value, total | 363,059 | 140,814 |
Unrealized losses, total | (6,590) | (2,348) |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 9,748 | |
Less than 12 months, unrealized losses | (178) | |
12 months or more, fair value | 0 | |
12 months or more, unrealized losses | 0 | |
Fair value, total | 9,748 | |
Unrealized losses, total | (178) | |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, fair value | 19,206 | 0 |
Less than 12 months, unrealized losses | (3,301) | 0 |
12 months or more, fair value | 6 | 5 |
12 months or more, unrealized losses | (1) | (1) |
Fair value, total | 19,212 | 5 |
Unrealized losses, total | $ (3,302) | $ (1) |
Loans Held for Sale - Compositi
Loans Held for Sale - Composition of Loans Held for Sale (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total commercial loans held for sale | $ 1,794,207 | $ 1,431,810 | |||
Residential mortgage loans at fair value | 2,857 | 3,649 | |||
Total loans held for sale | 1,797,064 | 1,435,459 | |||
Transfer of loans from held for sale to held for investment | $ 30,400 | 30,365 | 18,826 | $ 0 | |
Transfer of loans from held for investment to held for sale | $ 164,700 | 0 | 164,681 | $ 0 | |
Mortgage warehouse | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Mortgage warehouse loans at fair value | 1,754,950 | 1,332,019 | |||
Multi-family | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Multi-family loans at lower of cost or fair value | $ 39,257 | $ 99,791 |
Loans Receivable and Allowanc63
Loans Receivable and Allowance for Loan Losses - Narrative (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)LoanAllowanceCommitment | Dec. 31, 2014USD ($)LoanAllowanceCommitment | Dec. 31, 2013USD ($)LoanAllowanceCommitment | |
Financing Receivable, Modifications [Line Items] | |||
Covered loans outstanding | $ 13,800 | $ 42,200 | |
Clawback liability payment date | 45 days | ||
Clawback liability | $ 2,300 | ||
Expected FDIC receivable | 200 | ||
Clawback liability, net | 2,100 | ||
Troubled debt restructurings loans | $ 11,400 | $ 5,000 | $ 4,600 |
Minimum performance requirement (months) | 6 months | ||
Sustained performance period (months) | 6 months | ||
Commitments to lend additional funds to debtors | Commitment | 0 | 0 | 0 |
Recorded investment of loans determined to be TDR | $ 7,500 | $ 1,100 | $ 1,200 |
Number of TDR loans | Loan | 36 | 6 | 5 |
Recorded investment | $ 2,500 | $ 400 | $ 400 |
Recorded investment, portion subject to a cash reserve | $ 1,800 | ||
TDR modification (allowance) | Allowance | 3 | 0 | 0 |
Available funds for reimbursement | $ 1,200 | $ 3,000 | |
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Other real estate owned | 1,200 | ||
Foreclosure loans | $ 600 | ||
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Modifications [Line Items] | |||
TDR modification (allowance) | Allowance | 2 | ||
Allowance for TDR modification | $ 200 | ||
Commercial real estate non-owner occupied | |||
Financing Receivable, Modifications [Line Items] | |||
TDR modification (allowance) | Allowance | 1 | ||
Allowance for TDR modification | $ 100 | ||
Troubled Debt Restructurings | |||
Financing Receivable, Modifications [Line Items] | |||
Sustained performance period (months) | 9 months |
Loans Receivable and Allowanc64
Loans Receivable and Allowance for Loan Losses - Schedule of Loans Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 5,453,145 | $ 4,311,661 | ||
Total loans receivable | 5,453,145 | 4,311,661 | ||
Deferred costs and unamortized premiums, net | 334 | 512 | ||
Allowance for loan losses | (35,647) | (30,932) | $ (23,998) | $ (25,837) |
Total loans receivable, net of allowance for loan losses | 5,417,832 | 4,281,241 | ||
Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 2,909,439 | 2,208,405 | ||
Total loans receivable | 2,909,439 | 2,208,405 | ||
Allowance for loan losses | (12,016) | (8,493) | (4,227) | |
Commercial and industrial (including owner occupied commercial real estate) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 803,159 | 549,935 | ||
Total loans receivable | 803,159 | 549,935 | ||
Allowance for loan losses | (8,864) | (4,784) | (2,674) | |
Commercial real estate non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 956,255 | 839,310 | ||
Total loans receivable | 956,255 | 839,310 | ||
Allowance for loan losses | (8,420) | (9,198) | (8,961) | |
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 87,240 | 49,718 | ||
Total loans receivable | 87,240 | 49,718 | ||
Allowance for loan losses | (1,074) | (1,047) | (2,385) | |
Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 271,613 | 297,395 | ||
Total loans receivable | 271,613 | 297,395 | ||
Allowance for loan losses | (3,298) | (2,698) | (2,490) | |
Manufactured Housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 113,490 | 126,731 | ||
Total loans receivable | 113,490 | 126,731 | ||
Allowance for loan losses | (494) | (262) | (614) | |
Other Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 3,708 | 4,433 | ||
Total loans receivable | 3,708 | 4,433 | ||
Allowance for loan losses | (133) | (114) | $ (130) | |
Commercial Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 5,064,334 | 3,883,102 | ||
Commercial Loan | Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 2,909,439 | 2,208,405 | ||
Commercial Loan | Commercial and industrial (including owner occupied commercial real estate) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 1,111,400 | 785,669 | ||
Commercial Loan | Commercial real estate non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 956,255 | 839,310 | ||
Commercial Loan | Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 87,240 | 49,718 | ||
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 388,811 | 428,559 | ||
Consumer | Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 271,613 | 297,395 | ||
Consumer | Manufactured Housing | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | 113,490 | 126,731 | ||
Consumer | Other Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable | $ 3,708 | $ 4,433 |
Loans Receivable and Allowanc65
Loans Receivable and Allowance for Loan Losses - Loans by Type and Performance Status (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | $ 11,954 | $ 12,969 |
Non-Accrual | 10,771 | 11,733 |
Current | 5,387,940 | 4,230,342 |
Purchased Credit Impaired Loans | 42,480 | 56,617 |
Total Loans | $ 5,453,145 | 4,311,661 |
Due days for loan payments (days) | 30 days | |
Delinquent period (days) | 90 days | |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | $ 0 | 0 |
Non-Accrual | 0 | 0 |
Current | 2,905,789 | 2,204,059 |
Purchased Credit Impaired Loans | 3,650 | 4,346 |
Total Loans | 2,909,439 | 2,208,405 |
Commercial and industrial (including owner occupied commercial real estate) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 39 | 884 |
Non-Accrual | 1,973 | 2,513 |
Current | 799,595 | 543,245 |
Purchased Credit Impaired Loans | 1,552 | 3,293 |
Total Loans | 803,159 | 549,935 |
Commercial real estate - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 268 | 0 |
Non-Accrual | 2,700 | 2,514 |
Current | 292,312 | 217,187 |
Purchased Credit Impaired Loans | 12,961 | 16,033 |
Total Loans | 308,241 | 235,734 |
Commercial real estate non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 1,997 | 0 |
Non-Accrual | 1,307 | 1,460 |
Current | 940,895 | 822,046 |
Purchased Credit Impaired Loans | 12,056 | 15,804 |
Total Loans | 956,255 | 839,310 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
Non-Accrual | 0 | 2,325 |
Current | 87,006 | 44,483 |
Purchased Credit Impaired Loans | 234 | 2,910 |
Total Loans | 87,240 | 49,718 |
Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,986 | 1,226 |
Non-Accrual | 2,202 | 1,855 |
Current | 257,984 | 284,347 |
Purchased Credit Impaired Loans | 8,441 | 9,967 |
Total Loans | 271,613 | 297,395 |
Manufactured Housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 6,557 | 10,712 |
Non-Accrual | 2,449 | 931 |
Current | 101,132 | 111,072 |
Purchased Credit Impaired Loans | 3,352 | 4,016 |
Total Loans | 113,490 | 126,731 |
Other Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 107 | 147 |
Non-Accrual | 140 | 135 |
Current | 3,227 | 3,903 |
Purchased Credit Impaired Loans | 234 | 248 |
Total Loans | 3,708 | 4,433 |
30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 9,149 | 8,581 |
30 to 89 Days Past Due | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
30 to 89 Days Past Due | Commercial and industrial (including owner occupied commercial real estate) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 39 | 884 |
30 to 89 Days Past Due | Commercial real estate - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 268 | 0 |
30 to 89 Days Past Due | Commercial real estate non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 1,997 | 0 |
30 to 89 Days Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
30 to 89 Days Past Due | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,986 | 1,226 |
30 to 89 Days Past Due | Manufactured Housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 3,752 | 6,324 |
30 to 89 Days Past Due | Other Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 107 | 147 |
90 Days Or More Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,805 | 4,388 |
90 Days Or More Days Past Due | Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
90 Days Or More Days Past Due | Commercial and industrial (including owner occupied commercial real estate) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
90 Days Or More Days Past Due | Commercial real estate - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
90 Days Or More Days Past Due | Commercial real estate non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
90 Days Or More Days Past Due | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
90 Days Or More Days Past Due | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 0 | 0 |
90 Days Or More Days Past Due | Manufactured Housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | 2,805 | 4,388 |
90 Days Or More Days Past Due | Other Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due Still Accruing | $ 0 | $ 0 |
Loans Receivable and Allowanc66
Loans Receivable and Allowance for Loan Losses - Schedule of Changes in Allowance for Loans Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 30,932 | $ 23,998 | $ 25,837 |
Provision for loan losses | 16,694 | 10,058 | 5,055 |
Charge-offs | (13,412) | (4,947) | (7,338) |
Recoveries | 1,433 | 1,823 | 444 |
Ending Balance | $ 35,647 | $ 30,932 | $ 23,998 |
Loans Receivable and Allowanc67
Loans Receivable and Allowance for Loan Losses - Schedule of FDIC Loss Sharing Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
FDIC Indemnification Asset [Roll Forward] | |||||||||||
Beginning Balance | $ 2,320 | $ 10,046 | $ 2,320 | $ 10,046 | $ 12,343 | ||||||
Increase in FDIC loss sharing receivable net of clawback liability | (3,872) | (4,689) | 2,819 | ||||||||
Increased estimated cash flows from covered OREO | 3,138 | 0 | 0 | ||||||||
Other activity, net | 248 | 2,409 | 1,610 | ||||||||
Cash receipts from FDIC | (3,917) | (5,446) | (6,726) | ||||||||
Ending Balance | $ (2,083) | $ 2,320 | (2,083) | 2,320 | 10,046 | ||||||
Provision for loan losses | 16,694 | 10,058 | 5,055 | ||||||||
Effect attributable to FDIC loss share arrangements | 3,872 | 4,689 | (2,819) | ||||||||
Provision for loan losses | $ 6,173 | $ 2,094 | $ 9,335 | $ 2,964 | $ 2,459 | $ 5,035 | $ 2,886 | $ 4,368 | $ 20,566 | $ 14,747 | $ 2,236 |
Loans Receivable and Allowanc68
Loans Receivable and Allowance for Loan Losses - Summary of Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, total | $ 44,608 | $ 45,133 |
Unpaid principle balance, total | 45,929 | 49,042 |
Related allowance | 2,273 | 1,342 |
Average recorded investment, total | 41,091 | 45,517 |
Interest income recognized, total | 2,678 | 1,886 |
Multi-family | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 661 | |
Unpaid principal balance, with no related allowance recorded | 661 | |
Average recorded investment, with no related allowance recorded | 267 | |
Interest income recognized, with no related allowance recorded | 24 | |
Commercial and industrial (including owner occupied commercial real estate) | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 12,056 | 14,600 |
Unpaid principal balance, with no related allowance recorded | 13,028 | 16,122 |
Average recorded investment, with no related allowance recorded | 8,543 | 13,329 |
Interest income recognized, with no related allowance recorded | 891 | 674 |
Recorded investment net of charge offs, with an allowance recorded | 5,565 | 1,923 |
Unpaid principal balance, with an allowance recorded | 5,914 | 1,923 |
Related allowance | 1,990 | 857 |
Average recorded investment, with an allowance recorded | 9,331 | 1,725 |
Interest income recognized, with an allowance recorded | 191 | 28 |
Commercial real estate - owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 8,317 | 12,599 |
Unpaid principal balance, with no related allowance recorded | 8,317 | 12,744 |
Average recorded investment, with no related allowance recorded | 6,526 | 10,204 |
Interest income recognized, with no related allowance recorded | 454 | 504 |
Recorded investment net of charge offs, with an allowance recorded | 12 | 750 |
Unpaid principal balance, with an allowance recorded | 12 | 750 |
Related allowance | 1 | 95 |
Average recorded investment, with an allowance recorded | 15 | 1,184 |
Interest income recognized, with an allowance recorded | 1 | 22 |
Commercial real estate non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 4,276 | 5,602 |
Unpaid principal balance, with no related allowance recorded | 4,276 | 5,602 |
Average recorded investment, with no related allowance recorded | 6,605 | 7,770 |
Interest income recognized, with no related allowance recorded | 648 | 383 |
Recorded investment net of charge offs, with an allowance recorded | 555 | 571 |
Unpaid principal balance, with an allowance recorded | 555 | 571 |
Related allowance | 148 | 170 |
Average recorded investment, with an allowance recorded | 817 | 902 |
Interest income recognized, with an allowance recorded | 12 | 17 |
Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 0 | 2,325 |
Unpaid principal balance, with no related allowance recorded | 0 | 2,325 |
Average recorded investment, with no related allowance recorded | 749 | 2,415 |
Interest income recognized, with no related allowance recorded | 0 | 41 |
Recorded investment net of charge offs, with an allowance recorded | 0 | 0 |
Unpaid principal balance, with an allowance recorded | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment, with an allowance recorded | 0 | 851 |
Interest income recognized, with an allowance recorded | 0 | 0 |
Other Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 48 | 21 |
Unpaid principal balance, with no related allowance recorded | 48 | 21 |
Average recorded investment, with no related allowance recorded | 42 | 26 |
Interest income recognized, with no related allowance recorded | 1 | 0 |
Recorded investment net of charge offs, with an allowance recorded | 92 | 114 |
Unpaid principal balance, with an allowance recorded | 92 | 114 |
Related allowance | 50 | 32 |
Average recorded investment, with an allowance recorded | 83 | 82 |
Interest income recognized, with an allowance recorded | 0 | 1 |
Residential Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 4,331 | 3,675 |
Unpaid principal balance, with no related allowance recorded | 4,331 | 5,917 |
Average recorded investment, with no related allowance recorded | 2,254 | 4,145 |
Interest income recognized, with no related allowance recorded | 86 | 87 |
Recorded investment net of charge offs, with an allowance recorded | 395 | 365 |
Unpaid principal balance, with an allowance recorded | 395 | 365 |
Related allowance | 84 | 188 |
Average recorded investment, with an allowance recorded | 426 | 296 |
Interest income recognized, with an allowance recorded | 2 | 1 |
Manufactured Housing | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment net of charge offs, with no related allowance recorded | 8,300 | 2,588 |
Unpaid principal balance, with no related allowance recorded | 8,300 | 2,588 |
Average recorded investment, with no related allowance recorded | 5,433 | 2,588 |
Interest income recognized, with no related allowance recorded | $ 368 | $ 128 |
Loans Receivable and Allowanc69
Loans Receivable and Allowance for Loan Losses - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 162 | 21 | 14 |
Recorded Investment | $ | $ 7,457 | $ 1,080 | $ 1,238 |
Extended under forbearance | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 1 | 11 | 0 |
Recorded Investment | $ | $ 183 | $ 460 | $ 0 |
Interest-rate reductions | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 161 | 10 | 14 |
Recorded Investment | $ | $ 7,274 | $ 620 | $ 1,238 |
Loans Receivable and Allowanc70
Loans Receivable and Allowance for Loan Losses - Summary of Loans and Leases Modified in Troubled Debt Restructurings and Recorded Investments (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 162 | 21 | 14 |
Recorded Investment | $ | $ 7,457 | $ 1,080 | $ 1,238 |
Commercial and industrial (including owner occupied commercial real estate) | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 3 | ||
Recorded Investment | $ | $ 791 | ||
Commercial real estate non-owner occupied | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 1 | ||
Recorded Investment | $ | $ 211 | ||
Manufactured Housing | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 156 | 10 | 13 |
Recorded Investment | $ | $ 6,251 | $ 620 | $ 1,206 |
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 2 | ||
Recorded Investment | $ | $ 204 | ||
Other Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 11 | 1 | |
Recorded Investment | $ | $ 460 | $ 32 |
Loans Receivable and Allowanc71
Loans Receivable and Allowance for Loan Losses - Credit Quality Tables for Loans Receivable Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 5,453,145 | $ 4,311,661 |
Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 5,294,352 | 4,124,027 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 24,506 | 34,558 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 17,089 | 21,912 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 107,945 | 119,239 |
Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 9,253 | 11,925 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,909,439 | 2,208,405 |
Multi-family | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,907,362 | 2,206,776 |
Multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 661 | 0 |
Multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,416 | 1,629 |
Multi-family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Multi-family | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and industrial (including owner occupied commercial real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 803,159 | 549,935 |
Commercial and industrial (including owner occupied commercial real estate) | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 784,892 | 531,790 |
Commercial and industrial (including owner occupied commercial real estate) | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 14,052 | 14,565 |
Commercial and industrial (including owner occupied commercial real estate) | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,215 | 3,580 |
Commercial and industrial (including owner occupied commercial real estate) | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and industrial (including owner occupied commercial real estate) | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate - owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 308,241 | 235,734 |
Commercial real estate - owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 295,762 | 217,356 |
Commercial real estate - owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 7,840 | 13,056 |
Commercial real estate - owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,639 | 5,322 |
Commercial real estate - owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate - owner occupied | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 956,255 | 839,310 |
Commercial real estate non-owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 950,886 | 829,238 |
Commercial real estate non-owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,671 | 6,694 |
Commercial real estate non-owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,698 | 3,378 |
Commercial real estate non-owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial real estate non-owner occupied | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 87,240 | 49,718 |
Construction | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 87,240 | 44,642 |
Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 5,076 |
Construction | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Construction | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 271,613 | 297,395 |
Residential Real Estate | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 268,210 | 294,225 |
Residential Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 282 | 243 |
Residential Real Estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,121 | 2,927 |
Residential Real Estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Residential Real Estate | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured Housing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 113,490 | 126,731 |
Manufactured Housing | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured Housing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured Housing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Manufactured Housing | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 104,484 | 115,088 |
Manufactured Housing | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 9,006 | 11,643 |
Other Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,708 | 4,433 |
Other Consumer | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Other Consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Other Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Other Consumer | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,461 | 4,151 |
Other Consumer | Nonperforming | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 247 | $ 282 |
Loans Receivable and Allowanc72
Loans Receivable and Allowance for Loan Losses - Schedule of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | $ 30,932 | $ 23,998 | $ 25,837 | ||
Charge-offs | (13,412) | (4,947) | (7,338) | ||
Recoveries | 1,433 | 1,823 | 444 | ||
Provision for loan losses | 16,694 | 10,058 | 5,055 | ||
Ending Balance | 35,647 | 30,932 | 23,998 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | $ 44,608 | $ 45,133 | |||
Collectively evaluated for impairment | 5,366,057 | 4,209,911 | |||
Total loans receivable | 5,453,145 | 4,311,661 | |||
Allowance for loan losses, individually evaluated for impairment | 2,273 | 1,342 | |||
Allowance for loan losses, collectively evaluated for impairment | 27,212 | 22,575 | |||
Total allowance for loan losses | 30,932 | 23,998 | 25,837 | 35,647 | 30,932 |
Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 42,480 | 56,617 | |||
Allowance for loan losses, loans acquired with credit deterioration | 6,162 | 7,015 | |||
Multi-family | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 8,493 | 4,227 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision for loan losses | 3,523 | 4,266 | |||
Ending Balance | 12,016 | 8,493 | 4,227 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 661 | 0 | |||
Collectively evaluated for impairment | 2,905,128 | 2,204,059 | |||
Total loans receivable | 2,909,439 | 2,208,405 | |||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||
Allowance for loan losses, collectively evaluated for impairment | 12,016 | 8,493 | |||
Total allowance for loan losses | 8,493 | 4,227 | 4,227 | 12,016 | 8,493 |
Multi-family | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 3,650 | 4,346 | |||
Allowance for loan losses, loans acquired with credit deterioration | 0 | 0 | |||
Commercial and industrial (including owner occupied commercial real estate) | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 4,784 | 2,674 | |||
Charge-offs | (11,331) | (1,155) | |||
Recoveries | 548 | 511 | |||
Provision for loan losses | 14,863 | 2,754 | |||
Ending Balance | 8,864 | 4,784 | 2,674 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 17,621 | 16,523 | |||
Collectively evaluated for impairment | 783,986 | 530,119 | |||
Total loans receivable | 803,159 | 549,935 | |||
Allowance for loan losses, individually evaluated for impairment | 1,990 | 857 | |||
Allowance for loan losses, collectively evaluated for impairment | 6,650 | 3,765 | |||
Total allowance for loan losses | 4,784 | 2,674 | 2,674 | 8,864 | 4,784 |
Commercial and industrial (including owner occupied commercial real estate) | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 1,552 | 3,293 | |||
Allowance for loan losses, loans acquired with credit deterioration | 224 | 162 | |||
Commercial real estate - owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 4,336 | 2,517 | |||
Charge-offs | (378) | (482) | |||
Recoveries | 14 | 225 | |||
Provision for loan losses | (2,624) | 2,076 | |||
Ending Balance | 1,348 | 4,336 | 2,517 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 8,329 | 13,349 | |||
Collectively evaluated for impairment | 286,951 | 206,352 | |||
Total loans receivable | 308,241 | 235,734 | |||
Allowance for loan losses, individually evaluated for impairment | 1 | 95 | |||
Allowance for loan losses, collectively evaluated for impairment | 1,347 | 1,757 | |||
Total allowance for loan losses | 4,336 | 2,517 | 2,517 | 1,348 | 4,336 |
Commercial real estate - owner occupied | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 12,961 | 16,033 | |||
Allowance for loan losses, loans acquired with credit deterioration | 0 | 2,484 | |||
Commercial real estate non-owner occupied | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 9,198 | 8,961 | |||
Charge-offs | (327) | (1,715) | |||
Recoveries | 0 | 801 | |||
Provision for loan losses | (451) | 1,151 | |||
Ending Balance | 8,420 | 9,198 | 8,961 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 4,831 | 6,173 | |||
Collectively evaluated for impairment | 939,368 | 817,333 | |||
Total loans receivable | 956,255 | 839,310 | |||
Allowance for loan losses, individually evaluated for impairment | 148 | 170 | |||
Allowance for loan losses, collectively evaluated for impairment | 3,858 | 6,580 | |||
Total allowance for loan losses | 9,198 | 8,961 | 8,961 | 8,420 | 9,198 |
Commercial real estate non-owner occupied | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 12,056 | 15,804 | |||
Allowance for loan losses, loans acquired with credit deterioration | 4,414 | 2,448 | |||
Construction | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 1,047 | 2,385 | |||
Charge-offs | (1,064) | (895) | |||
Recoveries | 204 | 13 | |||
Provision for loan losses | 887 | (456) | |||
Ending Balance | 1,074 | 1,047 | 2,385 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 0 | 2,325 | |||
Collectively evaluated for impairment | 87,006 | 44,483 | |||
Total loans receivable | 87,240 | 49,718 | |||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||
Allowance for loan losses, collectively evaluated for impairment | 1,074 | 424 | |||
Total allowance for loan losses | 1,047 | 2,385 | 2,385 | 1,074 | 1,047 |
Construction | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 234 | 2,910 | |||
Allowance for loan losses, loans acquired with credit deterioration | 0 | 623 | |||
Residential Real Estate | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 2,698 | 2,490 | |||
Charge-offs | (276) | (667) | |||
Recoveries | 575 | 265 | |||
Provision for loan losses | 301 | 610 | |||
Ending Balance | 3,298 | 2,698 | 2,490 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 4,726 | 4,040 | |||
Collectively evaluated for impairment | 258,446 | 283,388 | |||
Total loans receivable | 271,613 | 297,395 | |||
Allowance for loan losses, individually evaluated for impairment | 84 | 188 | |||
Allowance for loan losses, collectively evaluated for impairment | 2,141 | 1,436 | |||
Total allowance for loan losses | 2,698 | 2,490 | 2,490 | 3,298 | 2,698 |
Residential Real Estate | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 8,441 | 9,967 | |||
Allowance for loan losses, loans acquired with credit deterioration | 1,073 | 1,074 | |||
Manufactured Housing | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 262 | 614 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision for loan losses | 232 | (352) | |||
Ending Balance | 494 | 262 | 614 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 8,300 | 2,588 | |||
Collectively evaluated for impairment | 101,838 | 120,127 | |||
Total loans receivable | 113,490 | 126,731 | |||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | |||
Allowance for loan losses, collectively evaluated for impairment | 98 | 92 | |||
Total allowance for loan losses | 262 | 614 | 614 | 494 | 262 |
Manufactured Housing | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 3,352 | 4,016 | |||
Allowance for loan losses, loans acquired with credit deterioration | 396 | 170 | |||
Other Consumer | |||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||
Beginning Balance | 114 | 130 | |||
Charge-offs | (36) | (33) | |||
Recoveries | 92 | 8 | |||
Provision for loan losses | (37) | 9 | |||
Ending Balance | 133 | 114 | 130 | ||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Individually evaluated for impairment | 140 | 135 | |||
Collectively evaluated for impairment | 3,334 | 4,050 | |||
Total loans receivable | 3,708 | 4,433 | |||
Allowance for loan losses, individually evaluated for impairment | 50 | 32 | |||
Allowance for loan losses, collectively evaluated for impairment | 28 | 28 | |||
Total allowance for loan losses | $ 114 | $ 130 | $ 130 | 133 | 114 |
Other Consumer | Loans acquired with credit deterioration | |||||
Financing Receivable, Allowance for Credit Loss, Additional Information [Abstract] | |||||
Loans acquired with credit deterioration | 234 | 248 | |||
Allowance for loan losses, loans acquired with credit deterioration | $ 55 | $ 54 |
Loans Receivable and Allowanc73
Loans Receivable and Allowance for Loan Losses - Changes in Accretable Discount Related to Purchased Credit Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretable yield balance, beginning of period | $ 17,606 | $ 22,557 | $ 32,174 |
Accretion to interest income | (2,299) | (3,201) | (6,213) |
Reclassification from nonaccretable difference and disposals, net | (2,360) | (1,750) | (3,404) |
Accretable yield balance, end of period | $ 12,947 | $ 17,606 | $ 22,557 |
Bank Premises and Equipment - N
Bank Premises and Equipment - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Rent expense | $ 3.8 | $ 3.3 | $ 2.5 |
Bank Premises and Equipment - C
Bank Premises and Equipment - Components of Bank Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 23,958 | $ 21,054 |
Accumulated depreciation | (12,427) | (10,244) |
Total | 11,531 | 10,810 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $ 12,531 | 11,680 |
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 | $ 5,312 | 4,504 |
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 | $ 5,909 | 4,696 |
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 | $ 206 | $ 174 |
Automobiles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 5 years | |
Automobiles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Expected useful life (years) | 10 years |
Bank Premises and Equipment - F
Bank Premises and Equipment - Future Minimum Rental Commitments Under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 3,861 |
2,017 | 3,662 |
2,018 | 3,450 |
2,019 | 2,826 |
2,020 | 1,994 |
Subsequent to 2020 | 3,258 |
Total minimum payments | $ 19,051 |
Deposits - Narrative (Detail)
Deposits - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Demand deposits overdrafts | $ 0.6 | $ 0.8 |
Time deposits greater than $250,000 | 920.5 | 365.4 |
Brokered money market deposits | 815.7 | 632.7 |
Brokered certificates of deposit | $ 612.8 | $ 483.2 |
Deposits - Components of Deposi
Deposits - Components of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits, by Component, Alternative [Abstract] | ||
Demand, non-interest bearing | $ 653,679 | $ 546,436 |
Demand, interest bearing | 127,215 | 71,202 |
Savings, including money market deposit accounts | 2,781,010 | 2,203,237 |
Time, $100,000 and over | 1,624,562 | 1,043,265 |
Time, other | 723,035 | 668,398 |
Total deposits | $ 5,909,501 | $ 4,532,538 |
Deposits - Schedule of Time Dep
Deposits - Schedule of Time Deposit Maturities (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Time Deposits, Rolling Year Maturity [Abstract] | |
2,016 | $ 1,799,310 |
2,017 | 312,813 |
2,018 | 135,952 |
2,019 | 53,591 |
2,020 | 45,931 |
Total time deposits | $ 2,347,597 |
Borrowings - Narrative (Detail)
Borrowings - Narrative (Detail) - USD ($) | Jun. 26, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2013 |
Debt Instrument [Line Items] | ||||
Long-term advances | $ 260,000,000 | $ 320,000,000 | ||
FHLB advances | 1,625,300,000 | 1,618,000,000 | ||
Total borrowing capacity with the Federal Home Loan Bank | 3,700,000,000 | 3,200,000,000 | ||
Total borrowing capacity with the Federal Reserve Bank of Philadelphia | $ 59,200,000 | 62,700,000 | ||
Senior Notes Due 2018 | ||||
Debt Instrument [Line Items] | ||||
Interest payable terms | Interest payable on March 15, June 15, September 15, and December 15 of each year. | |||
Blanket Lien on Securities | ||||
Debt Instrument [Line Items] | ||||
Blanket lien on securities | $ 257,100,000 | |||
Qualifying Loans | ||||
Debt Instrument [Line Items] | ||||
Qualifying loans | 3,500,000,000 | |||
FHLB Fixed Rate Advances | ||||
Debt Instrument [Line Items] | ||||
FHLB advances | $ 250,000,000 | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Issue of subordinated term note | $ 25,000,000 | |||
Subordinated debt, average interest rate for the year | 4.625% | |||
Senior Notes | Senior Notes Due 2018 | ||||
Debt Instrument [Line Items] | ||||
Issue of subordinated term note | $ 63,300,000 | |||
Senior unsecured notes aggregate amount | $ 63,300,000 | |||
Senior unsecured notes, interest rate | 6.375% | |||
Senior Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Issue of subordinated term note | $ 110,000,000 | |||
Subordinated debt, average interest rate for the year | 6.125% | |||
Subordinated debt, basis spread on variable rate | 3.443% | |||
Redemption price, percent of principal balance | 100.00% | |||
Federal Funds Purchased | ||||
Debt Instrument [Line Items] | ||||
Aggregate availability under federal funds line | $ 175,000,000 | $ 95,000,000 |
Borrowings - Short Term Borrowi
Borrowings - Short Term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Abstract] | ||
FHLB advances, amount | $ 1,365,300 | $ 1,298,000 |
Federal funds purchased, carrying value | 70,000 | 0 |
Total short-term borrowings, amount | $ 1,435,300 | $ 1,298,000 |
FHLB advances, rate | 0.48% | 0.29% |
Federal funds purchased, rate | 0.56% | 0.00% |
Borrowings - Summary of Bancorp
Borrowings - Summary of Bancorps Short Term Borrowings (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
FHLB Advances | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 1,365,300 | $ 1,383,000 | $ 769,750 |
Average balance during the year | $ 844,835 | $ 898,396 | $ 120,309 |
Weighted-average interest rate during the year | 0.60% | 0.46% | 0.55% |
Federal Funds Purchased | |||
Short-term Debt [Line Items] | |||
Maximum outstanding at any month end | $ 85,000 | $ 35,000 | $ 125,000 |
Average balance during the year | $ 41,397 | $ 13,312 | $ 32,351 |
Weighted-average interest rate during the year | 0.35% | 0.31% | 0.31% |
Borrowings - Contractual Maturi
Borrowings - Contractual Maturities of Long-Term Advances (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 0 | $ 85,000 |
2,017 | 205,000 | 180,000 |
2,018 | 55,000 | 55,000 |
Total long-term borrowings | $ 260,000 | $ 320,000 |
2016, rate | 0.00% | 0.59% |
2017, rate | 1.18% | 1.21% |
2018, rate | 1.61% | 1.61% |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Detail) - $ / shares | Nov. 17, 2015 | Aug. 24, 2015 | May. 18, 2015 | Jun. 30, 2014 | May. 15, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2013 |
Capital Unit [Line Items] | ||||||||
Preferred stock, par value (usd per share) | $ 1 | $ 1 | ||||||
Preferred stock, liquidation preference (usd per share) | $ 25 | $ 25 | ||||||
Stock dividend (percent) | 10.00% | |||||||
Stock dividend (shares) | 2,429,375 | |||||||
Percent of outstanding shares authorized for repurchase | 5.00% | |||||||
Premium percent over current book value | 20.00% | |||||||
Warrants outstanding to purchase common stock (shares) | 627,673 | 635,274 | ||||||
Minimum | ||||||||
Capital Unit [Line Items] | ||||||||
Purchase price of common stock (usd per share) | $ 9.55 | $ 9.55 | ||||||
Maximum | ||||||||
Capital Unit [Line Items] | ||||||||
Purchase price of common stock (usd per share) | $ 73.01 | $ 73.01 | ||||||
Series C Preferred Stock | ||||||||
Capital Unit [Line Items] | ||||||||
Preferred stock, shares issued | 2,300,000 | |||||||
Preferred stock, par value (usd per share) | $ 1 | |||||||
Preferred stock, liquidation preference (usd per share) | $ 25 | |||||||
Preferred stock, fixed dividend rate | 7.00% | |||||||
Preferred stock, redemption price (usd per share) | $ 25 | |||||||
Preferred stock, dividends declared (usd per share) | $ 0.4375 | $ 0.56875 | ||||||
Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||
Capital Unit [Line Items] | ||||||||
Preferred stock, floating dividend rate | 5.30% |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Detail) | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)SERP_retirement_age | Dec. 31, 2015USD ($)year | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |||||||
Employers matching contribution | 50.00% | ||||||
Employees first contribution | 6.00% | ||||||
401(k) profit sharing plan, employers matching contribution amount | $ 1,100,000 | $ 1,000,000 | $ 600,000 | ||||
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 | $ 3,600,000 | $ 3,600,000 | $ 3,600,000 | $ 3,600,000 | $ 3,600,000 |
Share-Based Compensation Plan86
Share-Based Compensation Plans - Narrative (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)requirementyear$ / sharesshares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, granted | 596,995 | ||
Number of stock options exercisable for more than ten years | 0 | ||
Maximum exercisable period for stock options (years) | 10 years | ||
Participant vested in an annual deferral accounts | 100.00% | ||
Involuntary termination age | year | 65 | ||
Share-based compensation expense | $ | $ 5,661 | $ 5,237 | $ 3,368 |
Compensation expense unrecognized related to non-vested share-based compensation | $ | $ 11,200 | ||
Award vesting period (years) | 5 years | ||
Cash received from exercise of options | $ | $ 300 | ||
Second vesting requirement for voting common stock | $ / shares | $ 17.18 | ||
Consecutive trading days of voting common stock trades | 5 days | ||
Number of voting requirements | requirement | 2 | ||
Director | Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Voting common stock issued (shares) | 27,674 | ||
Voting common stock issued | $ | $ 700 | ||
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fully diluted tangible book value | 50.00% | ||
Share based compensation arrangement by share based payment award upper limit of maximum number of shares of common stock available | 3,666,667 | ||
2004 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock issued stock option plan | 2,750,000 | ||
Aggregate number of shares of common stock available for grant | 1,812,837 | ||
BRRP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units outstanding | 254,821 | ||
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] | |||
Purchase price under employee stock purchase plan (percent) | 85.00% | ||
Purchase price under employee stock purchase plan, discount (percent) | 15.00% | ||
Employee stock purchase plan expense | $ | $ 80 | $ 12 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 5 years | ||
Options expiration date (years) | 10 years | ||
Service requirement (years) | 5 years | ||
Minimum total shareholder returns over vesting period | 50.00% | ||
Minimum compounded annual growth rate in diluted EPS | 10.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, granted | 599,745 | ||
Number of stock options exercisable for more than ten years | 707,745 | ||
Tax benefit from exercise of options | $ | $ 200 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 3 years | ||
Restricted Stock Units, granted | 158,581 | ||
Annual vesting | 33.33% | ||
Restricted Stock Units | BRRP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (years) | 5 years | ||
Restricted Stock Units, granted | 84,392 |
Share-Based Compensation Plan87
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, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted-average risk-free interest rate | 1.90% | 2.16% | 1.42% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average expected volatility | 21.18% | 18.00% | 13.77% |
Weighted-average expected life (in years) | 7 years | 7 years | 7 years |
Weighted-average fair value of each option granted | $ 6.42 | $ 4.52 | $ 3.17 |
Share-Based Compensation Plan88
Share-Based Compensation Plans - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares, issued | 596,995 |
Exercisable at December 31, 2015 | 0 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of shares, outstanding, beginning balance | 3,168,067 |
Number of shares, issued | 599,745 |
Number of shares, exercised | (31,168) |
Number of shares, forfeited | (2,200) |
Number of shares, expired | (2,683) |
Number of shares, outstanding, ending balance | 3,731,761 |
Exercisable at December 31, 2015 | 707,745 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price, outstanding (usd per share), beginning balance | $ / shares | $ 12.61 |
Weighted-average exercise price, issued (usd per share) | $ / shares | 23.36 |
Weighted-average exercise price, exercised (usd per share) | $ / shares | 10.53 |
Weighted-average exercise price, forfeited (usd per share) | $ / shares | 17.65 |
Weighted-average exercise price, expired (usd per share) | $ / shares | 29.33 |
Weighted-average exercise price, outstanding (usd per share), ending balance | $ / shares | 14.33 |
Weighted-average exercise price, exercisable (usd per share) | $ / shares | $ 9.19 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted-average remaining contractual term in years, outstanding (years) | 6 years 9 months 11 days |
Weighted-average remaining contractual term in years, exercisable (years) | 4 years 4 months 17 days |
Aggregate intrinsic value, exercised | $ | $ 455 |
Aggregate intrinsic value, outstanding | $ | 48,086 |
Aggregate intrinsic value, exercisable | $ | $ 12,760 |
Share-Based Compensation Plan89
Share-Based Compensation Plans - Summary of Non-Vested Options (Detail) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, granted | 596,995 |
Non-Vested Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, outstanding, beginning balance | 3,154,384 |
Number of shares, granted | 599,745 |
Number of shares, forfeited | (2,200) |
Number of shares, outstanding, ending balance | 3,026,766 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average exercise price, outstanding (usd per share), beginning balance | $ / shares | $ 12.59 |
Weighted-average exercise price, granted (usd per share) | $ / shares | 23.36 |
Weighted-average exercise price, forfeited (usd per share) | $ / shares | 17.65 |
Weighted-average exercise price, outstanding (usd per share), ending balance | $ / shares | $ 15.53 |
Vested Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Number of shares, vested | (725,163) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average exercise price, vested (usd per share) | $ / shares | $ 12.50 |
Share-Based Compensation Plan90
Share-Based Compensation Plans - Status of Restricted Stock (Detail) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Restricted Stock Units, outstanding and unvested, beginning balance | shares | 788,971 |
Restricted Stock Units, granted | shares | 158,581 |
Restricted Stock Units, vested | shares | (65,218) |
Restricted Stock Units, forfeited | shares | (9,070) |
Restricted Stock Units, outstanding and unvested, ending balance | shares | 873,264 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average grant-date fair value, outstanding and unvested (usd per share), beginning balance | $ / shares | $ 13 |
Weighted-average grant-date fair value, granted (usd per share) | $ / shares | 19.67 |
Weighted-average grant-date fair value, vested (usd per share) | $ / shares | 12.02 |
Weighted-average grant-date fair value, forfeited (usd per share) | $ / shares | 17.15 |
Weighted-average grant-date fair value, outstanding and unvested (usd per share), ending balance | $ / shares | $ 14.24 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Federal income tax at statutory rate | 35.00% | 35.00% | 35.00% |
Percentage of tax position will realized or sustained upon examination | 50.00% | ||
Net operating loss carryovers | $ 6.5 | ||
Net operating loss carryovers expire period | 2025 through 2031 | ||
Minimum | |||
Income Taxes [Line Items] | |||
Percentage of tax position will realized or sustained upon examination | 50.00% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Current | $ 40,004 | $ 26,361 | $ 15,394 | ||||||||
Deferred | (10,092) | (6,187) | 2,210 | ||||||||
Total | $ 7,415 | $ 8,415 | $ 6,400 | $ 7,682 | $ 7,289 | $ 3,940 | $ 5,517 | $ 3,429 | $ 29,912 | $ 20,174 | $ 17,604 |
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, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Federal income tax at statutory rate, amount | $ 30,973 | $ 22,185 | $ 17,604 | ||||||||
Federal income tax at statutory rate, percentage of pretax income | 35.00% | 35.00% | 35.00% | ||||||||
State income tax, amount | $ 1,434 | $ 1,355 | $ 353 | ||||||||
State income tax, percentage of pretax income | 1.62% | 2.14% | 0.70% | ||||||||
Tax-exempt interest, net of disallowance amount | $ (277) | $ (249) | $ (148) | ||||||||
Tax-exempt interest, net of disallowance percentage of pretax income | (0.31%) | (0.39%) | (0.30%) | ||||||||
Bank-owned life insurance, amount | $ (2,422) | $ (1,296) | $ (868) | ||||||||
Bank-owned life insurance, percentage of pretax income | (2.73%) | (2.04%) | (1.73%) | ||||||||
Other, amount | $ 204 | $ (1,821) | $ 663 | ||||||||
Other, percentage of pretax income | 0.22% | (2.88%) | 1.33% | ||||||||
Total | $ 7,415 | $ 8,415 | $ 6,400 | $ 7,682 | $ 7,289 | $ 3,940 | $ 5,517 | $ 3,429 | $ 29,912 | $ 20,174 | $ 17,604 |
Effective income tax rate, percentage of pretax income | 33.80% | 31.83% | 35.00% |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan losses | $ 13,248 | $ 11,555 |
Net unrealized losses on securities | 3,112 | 0 |
OREO expenses | 728 | 588 |
Non-accrual interest | 840 | 541 |
Net operating losses | 2,290 | 1,892 |
Deferred compensation | 1,337 | 1,361 |
Equity-based compensation | 5,196 | 3,751 |
Fair value adjustments on acquisitions | 428 | 0 |
Cash flow hedge | 1,679 | 681 |
Incentive compensation | 2,497 | 1,558 |
Other | 1,374 | 1,120 |
Total deferred tax assets | 32,729 | 23,047 |
Deferred tax liabilities: | ||
Fair value adjustments on acquisitions | 0 | (2,002) |
Net unrealized gains on securities | 0 | (615) |
Net deferred loan fees | (2,688) | (4,524) |
Bank premises and equipment | (875) | (1,009) |
Other | (592) | (1,140) |
Total deferred tax liabilities | (4,155) | (9,290) |
Net deferred tax asset | $ 28,574 | $ 13,757 |
Transactions with Executive O95
Transactions with Executive Officers, Directors, and Principal Shareholders - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Percentage of gross revenue | 5.00% | ||
Percentage of aggregate amount of consolidated assets | 5.00% | ||
Related party deposits | $ 14,000,000 | $ 11,700,000 | |
Director | Jaxxon Promotions, Inc. | |||
Related Party Transaction [Line Items] | |||
Amount paid to related party | $ 27,300 | $ 46,900 | $ 45,800 |
Percentage of shareholding by director | 25.00% | ||
Minimum | |||
Related Party Transaction [Line Items] | |||
Percentage of participation in equity | 10.00% | ||
Line of Credit | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Available credit line | $ 1,800,000 | ||
Unfunded Loan Commitment | Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Commitment to provide short-term commercial real estate financing | $ 8,000,000 |
Transactions with Executive O96
Transactions with Executive Officers, Directors, and Principal Shareholders - Schedule of Activity Relating to Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance – January 1 | $ 9 | $ 7,273 | $ 3,272 |
Additions | 2,218 | 5 | 9,280 |
Repayments | (2,007) | (7,269) | (5,279) |
Balance – December 31 | $ 220 | $ 9 | $ 7,273 |
Financial Instruments with Of97
Financial Instruments with Off-Balance-Sheet Risk - Schedule of Financial Instruments Outstanding Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to fund loans | $ 537,380 | $ 231,294 |
Unfunded commitments to fund mortgage warehouse loans | 1,302,759 | 713,619 |
Unfunded commitments under lines of credit | 436,550 | 430,995 |
Letters of credit | 42,002 | 36,206 |
Other unused commitments | $ 6,360 | $ 7,685 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) | Dec. 31, 2015 | Jan. 01, 2015 |
Banking and Thrift [Abstract] | ||
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | |
Tier 1 capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions ratio | 8.00% | |
Capital conservation buffer | 2.50% | |
Maximum buffer, percent of risk weighted assets for 2016 | 0.625% | |
Maximum buffer, percent of risk weighted assets for 2017 | 1.25% | |
Maximum buffer, percent of risk weighted assets for 2018 | 1.875% | |
Maximum buffer, percent of risk weighted assets for 2019 | 2.50% |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | |
Tier 1 capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions ratio | 8.00% | |
Customers Bancorp, Inc. | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 (to risk-weighted-assets), actual amount | $ 500,624 | |
Total capital (to risk-weighted assets), actual amount | 698,323 | $ 578,644 |
Tier 1 capital (to risk-weighted assets), actual amount | 556,193 | 437,712 |
Tier 1 capital (to average assets), actual amount | $ 556,193 | $ 437,712 |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 7.61% | |
Total capital (to risk-weighted assets), actual ratio | 10.62% | 11.09% |
Tier 1 capital (to risk-weighted assets), actual ratio | 8.46% | 8.39% |
Tier 1 capital (to average assets), actual ratio | 7.16% | 6.69% |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes amount | $ 296,014 | |
Total capital (to risk-weighted assets), for capital adequacy purposes amount | 526,247 | $ 417,473 |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes amount | 394,685 | 208,737 |
Tier 1 capital (to average assets), for capital adequacy purposes amount | $ 310,812 | $ 261,622 |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 4.50% | |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 4.00% |
Tier 1 capital (to average assets), for capital adequacy purposes 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 | $ 565,217 | |
Total capital (to risk-weighted assets), actual amount | 710,864 | $ 621,894 |
Tier 1 capital (to risk-weighted assets), actual amount | 565,217 | 480,963 |
Tier 1 capital (to average assets), actual amount | $ 565,217 | $ 480,963 |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 8.62% | |
Total capital (to risk-weighted assets), actual ratio | 10.85% | 11.98% |
Tier 1 capital (to risk-weighted assets), actual ratio | 8.62% | 9.27% |
Tier 1 capital (to average assets), actual ratio | 7.30% | 7.39% |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes amount | $ 294,916 | |
Total capital (to risk-weighted assets), for capital adequacy purposes amount | 524,295 | $ 415,141 |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes amount | 393,221 | 207,570 |
Tier 1 capital (to average assets), for capital adequacy purposes amount | $ 309,883 | $ 260,462 |
Common equity Tier 1 (to risk-weighted assets), for capital adequacy purposes ratio | 4.50% | |
Total capital (to risk-weighted assets), for capital adequacy purposes ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), for capital adequacy purposes ratio | 6.00% | 4.00% |
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 | $ 425,990 | |
Total capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount | 655,369 | $ 518,926 |
Tier 1 capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions amount | 524,295 | 311,356 |
Tier 1 capital (to average assets), to be well capitalized under prompt corrective action provisions amount | $ 387,353 | $ 325,577 |
Common equity Tier 1 (to risk-weighted assets), to be well capitalized under prompt corrective action provisions ratio | 6.50% | |
Total capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), to be well capitalized under prompt corrective action provisions ratio | 8.00% | 6.00% |
Tier 1 capital (to average assets), to be well capitalized under prompt corrective action provisions ratio | 5.00% | 5.00% |
Disclosures about Fair Value100
Disclosures about Fair Value of Financial Instruments - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Jun. 26, 2014 | Aug. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for sale, average life from purchase to sale (days) | 19 days | ||
Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior unsecured notes aggregate amount | $ 25,000,000 | ||
Senior Notes Due 2018 | Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior unsecured notes term (years) | 5 years | ||
Senior unsecured notes aggregate amount | $ 63,300,000 |
Disclosures about Fair Value101
Disclosures about Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, carrying value | $ 264,593 | $ 371,023 | $ 233,068 | $ 186,016 |
Cash and cash equivalents, fair value | 264,593 | 371,023 | ||
Investment securities available for sale, carrying value | 560,253 | 416,685 | ||
Investment securities available for sale, fair value | 560,253 | 416,685 | ||
Loans held for sale, carrying value | 1,797,064 | 1,435,459 | ||
Loans held for sale, fair value | 1,797,458 | 1,436,460 | ||
Loans receivable, net of allowance for loan losses, carrying value | 5,417,832 | 4,281,241 | ||
Loans receivable, net of allowance for loan losses, fair value | 5,353,903 | 4,285,537 | ||
FHLB, Federal Reserve Bank and other restricted stock, carrying value | 90,841 | 82,002 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 90,841 | 82,002 | ||
Derivative assets, carrying value | 9,295 | 7,552 | ||
Derivative assets, fair value | 9,295 | 7,552 | ||
Deposits, carrying value | 5,909,501 | 4,532,538 | ||
Deposits, fair value | 5,911,754 | 4,540,507 | ||
Federal funds purchased, carrying value | 70,000 | 0 | ||
Federal funds purchased, fair value | 70,000 | |||
FHLB advances, carrying value | 1,625,300 | 1,618,000 | ||
FHLB advances, fair value | 1,625,468 | 1,619,858 | ||
Other borrowings, carrying value | 88,250 | 88,250 | ||
Other borrowings, fair value | 93,804 | 92,069 | ||
Subordinated debt, carrying value | 110,000 | 110,000 | ||
Subordinated debt, fair value | 110,825 | 111,925 | ||
Derivative liabilities, carrying value | 13,932 | 9,716 | ||
Derivative liabilities, fair value | 13,932 | 9,716 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 264,593 | 371,023 | ||
Investment securities available for sale, carrying value | 19,212 | 24,270 | ||
Investment securities available for sale, fair value | 19,212 | 24,270 | ||
Loans held for sale, fair value | 0 | 0 | ||
Loans receivable, net of allowance for loan losses, fair value | 0 | 0 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 0 | 0 | ||
Derivative assets, carrying value | 0 | 0 | ||
Derivative assets, fair value | 0 | 0 | ||
Deposits, fair value | 3,561,905 | 2,820,875 | ||
Federal funds purchased, fair value | 70,000 | |||
FHLB advances, fair value | 1,365,300 | 1,298,000 | ||
Other borrowings, fair value | 68,867 | 66,944 | ||
Subordinated debt, fair value | 0 | 0 | ||
Derivative liabilities, carrying value | 0 | 0 | ||
Derivative liabilities, fair value | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 0 | 0 | ||
Investment securities available for sale, carrying value | 541,041 | 392,415 | ||
Investment securities available for sale, fair value | 541,041 | 392,415 | ||
Loans held for sale, fair value | 1,757,807 | 1,335,668 | ||
Loans receivable, net of allowance for loan losses, fair value | 0 | 0 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 90,841 | 82,002 | ||
Derivative assets, carrying value | 9,250 | 7,509 | ||
Derivative assets, fair value | 9,250 | 7,509 | ||
Deposits, fair value | 2,349,849 | 1,719,632 | ||
Federal funds purchased, fair value | 0 | |||
FHLB advances, fair value | 260,168 | 321,858 | ||
Other borrowings, fair value | 24,937 | 25,125 | ||
Subordinated debt, fair value | 110,825 | 111,925 | ||
Derivative liabilities, carrying value | 13,932 | 9,716 | ||
Derivative liabilities, fair value | 13,932 | 9,716 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value | 0 | 0 | ||
Investment securities available for sale, carrying value | 0 | 0 | ||
Investment securities available for sale, fair value | 0 | 0 | ||
Loans held for sale, fair value | 39,651 | 100,792 | ||
Loans receivable, net of allowance for loan losses, fair value | 5,353,903 | 4,285,537 | ||
FHLB, Federal Reserve Bank and other restricted stock, fair value | 0 | 0 | ||
Derivative assets, carrying value | 45 | 43 | ||
Derivative assets, fair value | 45 | 43 | ||
Deposits, fair value | 0 | 0 | ||
Federal funds purchased, fair value | 0 | |||
FHLB advances, fair value | 0 | 0 | ||
Other borrowings, fair value | 0 | 0 | ||
Subordinated debt, fair value | 0 | 0 | ||
Derivative liabilities, carrying value | 0 | 0 | ||
Derivative liabilities, fair value | $ 0 | $ 0 |
Disclosures about Fair Value102
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, 2015 | Dec. 31, 2014 |
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | $ 2,327,355 | $ 1,759,905 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 4,704 | 11,529 |
Impaired loans reserve | 2,273 | 1,342 |
Not Designated as Hedging Instrument | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 9,295 | 7,552 |
Liabilities, recurring fair value measurements | 13,932 | 9,716 |
Loans held for sale – fair value option | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 1,757,807 | 1,335,668 |
Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 4,346 | 2,380 |
Impaired loans reserve | 2,273 | 1,342 |
Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 358 | 9,149 |
Available-for-sale Securities | Mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 500,974 | 377,311 |
Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 40,067 | 15,104 |
Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 19,212 | 24,270 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 19,212 | 24,270 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Not Designated as Hedging Instrument | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Liabilities, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale – fair value option | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 19,212 | 24,270 |
Significant Other Observable Inputs (Level 2) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 2,308,098 | 1,735,592 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Not Designated as Hedging Instrument | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 9,250 | 7,509 |
Liabilities, recurring fair value measurements | 13,932 | 9,716 |
Significant Other Observable Inputs (Level 2) | Loans held for sale – fair value option | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 1,757,807 | 1,335,668 |
Significant Other Observable Inputs (Level 2) | Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 500,974 | 377,311 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 40,067 | 15,104 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 45 | 43 |
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 4,704 | 11,529 |
Significant Unobservable Inputs (Level 3) | Not Designated as Hedging Instrument | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 45 | 43 |
Liabilities, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Loans held for sale – fair value option | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans, net of reserves | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 4,346 | 2,380 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Measured at Fair Value on a Nonrecurring Basis: | ||
Assets, nonrecurring fair value measurements | 358 | 9,149 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Mortgage-backed securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Corporate notes | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Equity securities | ||
Measured at Fair Value on a Recurring Basis: | ||
Assets, recurring fair value measurements | $ 0 | $ 0 |
Disclosures about Fair Value103
Disclosures about Fair Value of Financial Instruments - Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Detail) - Significant Unobservable Inputs (Level 3) - Residential Mortgage Loan Commitments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at January 1, | $ 43 | $ 240 |
Issuances | 273 | 235 |
Settlements | (271) | (432) |
Balance at December 31, | $ 45 | $ 43 |
Disclosures about Fair Value104
Disclosures about Fair Value of Financial Instruments - Summary of Financial Assets and Financial Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 5,057 | $ 15,371 |
Fair Value Estimate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 4,346 | 2,380 |
Other real estate owned | 358 | 9,149 |
Residential mortgage loan commitments | $ 45 | $ 43 |
Impaired loans | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average | 8.00% | 8.00% |
Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Weighted average | 8.00% | 8.00% |
Residential mortgage loan commitments | Adjusted market bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, pull-through rate | 94.00% | 80.00% |
Derivative Instruments And H105
Derivative Instruments And Hedging Activities - Narrative (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)derivativeSwap | Dec. 31, 2014USD ($)derivativeSwap | Mar. 31, 2014USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Reclassification from AOCI to interest expense | $ 1,700,000 | ||
Termination value of derivatives in a net liability position | 14,300,000 | ||
Minimum collateral with counterparties | $ 14,300,000 | ||
Not Designated as Hedging Instrument | Minimum | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of days for commitments to expire, lower limit | 30 days | ||
Not Designated as Hedging Instrument | Maximum | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of days for commitments to expire, higher limit | 60 days | ||
Not Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of interest rate swaps | Swap | 62 | 44 | |
Derivative notional amount | $ 461,000,000 | $ 251,900,000 | |
Not Designated as Hedging Instrument | Residential mortgage loan commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 2,800,000 | 3,800,000 | |
Not Designated as Hedging Instrument | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | $ 19,300,000 | $ 13,400,000 | $ 19,300,000 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Number of interest rate swaps | derivative | 1 | 1 | |
Derivative notional amount | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 |
Derivative Instruments and H106
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | $ 0 | $ 192 |
Fair value, derivative liabilities | 13,932 | 9,703 |
Designated as Hedging Instrument | Other assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 0 | 0 |
Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 0 | 0 |
Designated as Hedging Instrument | Other liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 4,477 | 1,945 |
Designated as Hedging Instrument | Other liabilities | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 4,477 | 1,945 |
Not Designated as Hedging Instrument | Other assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 9,295 | 7,552 |
Not Designated as Hedging Instrument | Other assets | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 9,088 | 7,332 |
Not Designated as Hedging Instrument | Other assets | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 162 | 177 |
Not Designated as Hedging Instrument | Other assets | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative assets | 45 | 43 |
Not Designated as Hedging Instrument | Other liabilities | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 9,455 | 7,771 |
Not Designated as Hedging Instrument | Other liabilities | Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 9,455 | 7,771 |
Not Designated as Hedging Instrument | Other liabilities | Credit contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value, derivative liabilities | 0 | 0 |
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 H107
Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Not Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in earnings | $ 1,876 | $ 262 | $ 951 |
Not Designated as Hedging Instrument | Other non-interest income | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in earnings | 1,889 | 550 | 711 |
Not Designated as Hedging Instrument | Other non-interest income | Credit contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in earnings | (15) | (91) | |
Not Designated as Hedging Instrument | Mortgage loan and banking income | Residential mortgage loan commitments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of income (loss) recognized in earnings | 2 | (197) | $ 240 |
Designated as Hedging Instrument | Interest Rate Swap | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in OCI on derivatives (effective portion) | (1,534) | (1,264) | |
Designated as Hedging Instrument | Interest expense | Interest Rate Swap | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) reclassified from accumulated OCI into income (effective portion) | $ 0 | $ 0 |
Derivative Instruments and H108
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Assets [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 9,295 | $ 7,552 |
Interest rate swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Assets | 0 | 192 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 0 | 192 |
Financial Instruments | 0 | 192 |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 0 | $ 0 |
Derivative Instruments and H109
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Offsetting Assets [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 13,932 | $ 9,716 |
Interest rate swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Liabilities | 13,932 | 9,703 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 13,932 | 9,703 |
Financial Instruments | 0 | 192 |
Cash Collateral Pledged | 13,932 | 9,511 |
Net Amount | $ 0 | $ 0 |
Loss Contingency - Narrative (D
Loss Contingency - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss Contingencies [Line Items] | |||||
Loans held-for-sale involved in fraud | $ 5,200 | ||||
Range of possible loss, minimum | 1,500 | ||||
Range of possible loss, maximum | 3,200 | ||||
Loss contingency | $ 2,000 | $ 0 | $ 0 | $ 2,000 | |
Loan held for sale not involved in fraud | $ 1,000 | ||||
Loans recovered in cash from alleged perpetrator | 1,500 | ||||
Loans transferred to other assets | 2,700 | ||||
Reserve transferred to other assets | $ 2,000 | ||||
Fraud on Loans Held for Sale | Other assets | |||||
Loss Contingencies [Line Items] | |||||
Net amount of receivable and reserve remaining in other assets | $ 600 |
Condensed Financial Statemen111
Condensed Financial Statements of Parent Company - Summary of Condensed Balance Sheets of Parent Company (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash in subsidiary bank | $ 264,593 | $ 371,023 | $ 233,068 | $ 186,016 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other borrowings | 88,250 | 88,250 | ||
Total liabilities | 7,847,411 | 6,382,225 | ||
Shareholders’ equity | 553,902 | 443,145 | 386,623 | 269,475 |
Total liabilities and shareholders’ equity | 8,401,313 | 6,825,370 | ||
The Customer Bancorp | ||||
ASSETS | ||||
Cash in subsidiary bank | 54,567 | 16,465 | $ 13,254 | $ 44,679 |
Investment securities available for sale, at fair value | 5 | 5 | ||
Investments in and receivables due from subsidiaries | 583,875 | 509,465 | ||
Other assets | 4,190 | 6,678 | ||
Total assets | 642,637 | 532,613 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other borrowings | 88,250 | 88,250 | ||
Other liabilities | 485 | 1,218 | ||
Total liabilities | 88,735 | 89,468 | ||
Shareholders’ equity | 553,902 | 443,145 | ||
Total liabilities and shareholders’ equity | $ 642,637 | $ 532,613 |
Condensed Financial Statemen112
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, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating expense: | |||||||||||
Interest | $ 14,245 | $ 13,802 | $ 13,125 | $ 12,388 | $ 12,175 | $ 11,084 | $ 8,162 | $ 7,082 | $ 53,560 | $ 38,504 | $ 24,301 |
Income tax benefit | (7,415) | (8,415) | (6,400) | (7,682) | (7,289) | (3,940) | (5,517) | (3,429) | (29,912) | (20,174) | (17,604) |
Net income | 17,786 | 15,289 | 11,556 | 13,952 | 58,583 | 43,214 | 32,694 | ||||
Preferred stock dividend | 1,006 | 980 | 507 | 0 | 2,493 | 0 | 0 | ||||
Net income available to common shareholders | $ 16,780 | $ 14,309 | $ 11,049 | $ 13,952 | $ 13,178 | $ 11,662 | $ 10,233 | $ 8,136 | 56,090 | 43,214 | 32,694 |
Comprehensive income | 50,721 | 51,210 | 23,512 | ||||||||
The Customer Bancorp | |||||||||||
Operating income: | |||||||||||
Other | 18,545 | 90 | 758 | ||||||||
Total operating income | 18,545 | 90 | 758 | ||||||||
Operating expense: | |||||||||||
Interest | 5,854 | 5,251 | 1,923 | ||||||||
Other | 4,604 | 5,611 | 3,395 | ||||||||
Total operating expense | 10,458 | 10,862 | 5,318 | ||||||||
Income (loss) before taxes and undistributed income of subsidiaries | 8,087 | (10,772) | (4,560) | ||||||||
Income tax benefit | 3,516 | 3,797 | 1,596 | ||||||||
Income (loss) before undistributed income of subsidiaries | 11,603 | (6,975) | (2,964) | ||||||||
Equity in undistributed earnings of subsidiaries | 46,980 | 50,189 | 35,658 | ||||||||
Net income | 58,583 | 43,214 | 32,694 | ||||||||
Preferred stock dividend | 2,493 | 0 | 0 | ||||||||
Net income available to common shareholders | 56,090 | 43,214 | 32,694 | ||||||||
Comprehensive income | $ 50,721 | $ 51,210 | $ 23,512 |
Condensed Financial Statemen113
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, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | |||||||
Net income | $ 17,786 | $ 15,289 | $ 11,556 | $ 13,952 | $ 58,583 | $ 43,214 | $ 32,694 |
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
(Increase) decrease in other assets | (12,024) | (16,423) | (15,091) | ||||
Increase (decrease) in other liabilities | 8,706 | 9,606 | 6,974 | ||||
Net Cash (Used in) Provided by Operating Activities | (356,648) | (542,498) | 722,035 | ||||
Cash Flows from Investing Activities: | |||||||
Purchases of investment securities available for sale | (231,703) | (164,940) | (542,110) | ||||
Net Cash Used in Investing Activities | (1,258,226) | (1,921,920) | (1,588,015) | ||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of common stock | 806 | 77 | 97,507 | ||||
Net proceeds from issuance of preferred stock | 55,569 | 0 | 0 | ||||
Proceeds from issuance of long-term debt | 0 | 133,142 | 60,336 | ||||
Exercise and redemption of warrants | 98 | 6 | 264 | ||||
Preferred stock dividends paid | (2,314) | 0 | 0 | ||||
Purchase of treasury stock | 0 | 0 | (7,754) | ||||
Net Cash Provided by Financing Activities | 1,508,444 | 2,602,373 | 913,032 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | (106,430) | 137,955 | 47,052 | ||||
Cash and Cash Equivalents – Beginning | 371,023 | 371,023 | 233,068 | 186,016 | |||
Cash and Cash Equivalents – Ending | 264,593 | 264,593 | 371,023 | 233,068 | |||
The Customer Bancorp | |||||||
Cash Flows from Operating Activities: | |||||||
Net income | 58,583 | 43,214 | 32,694 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Equity in undistributed earnings of subsidiaries, net of dividends received from Bank | (46,980) | (50,189) | (35,658) | ||||
(Increase) decrease in other assets | 2,488 | (1,354) | (1,465) | ||||
Increase (decrease) in other liabilities | (112) | 1,497 | (281) | ||||
Net Cash (Used in) Provided by Operating Activities | 13,979 | (6,832) | (4,710) | ||||
Cash Flows from Investing Activities: | |||||||
Purchases of investment securities available for sale | 0 | 0 | 0 | ||||
Payments for investments in and advances to subsidiaries | (30,036) | (15,032) | (177,068) | ||||
Net Cash Used in Investing Activities | (30,036) | (15,032) | (177,068) | ||||
Cash Flows from Financing Activities: | |||||||
Proceeds from issuance of common stock | 904 | 77 | 97,507 | ||||
Net proceeds from issuance of preferred stock | 55,569 | 0 | 0 | ||||
Proceeds from issuance of long-term debt | 0 | 25,000 | 60,336 | ||||
Exercise and redemption of warrants | 0 | 6 | 264 | ||||
Payments on partial shares for stock dividend | 0 | (8) | 0 | ||||
Preferred stock dividends paid | (2,314) | 0 | 0 | ||||
Purchase of treasury stock | 0 | 0 | (7,754) | ||||
Net Cash Provided by Financing Activities | 54,159 | 25,075 | 150,353 | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 38,102 | 3,211 | (31,425) | ||||
Cash and Cash Equivalents – Beginning | $ 16,465 | 16,465 | 13,254 | 44,679 | |||
Cash and Cash Equivalents – Ending | $ 54,567 | $ 54,567 | $ 16,465 | $ 13,254 |
Selected Quarterly Financial114
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, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Interest income | $ 67,713 | $ 63,736 | $ 59,683 | $ 58,718 | $ 57,161 | $ 51,298 | $ 45,092 | $ 36,874 | $ 249,850 | $ 190,427 | $ 128,156 |
Interest expense | 14,245 | 13,802 | 13,125 | 12,388 | 12,175 | 11,084 | 8,162 | 7,082 | 53,560 | 38,504 | 24,301 |
Net interest income | 53,468 | 49,934 | 46,558 | 46,330 | 44,986 | 40,214 | 36,930 | 29,792 | 196,290 | 151,923 | 103,855 |
Provision for loan losses, net of change to FDIC receivable and clawback liability | 6,173 | 2,094 | 9,335 | 2,964 | 2,459 | 5,035 | 2,886 | 4,368 | 20,566 | 14,747 | 2,236 |
Non-interest income | 9,420 | 6,171 | 6,393 | 5,733 | 5,804 | 5,102 | 6,911 | 7,310 | 27,717 | 25,126 | 22,703 |
Non-interest expenses | 31,514 | 30,307 | 25,660 | 27,465 | 27,864 | 24,679 | 25,205 | 21,169 | 114,946 | 98,914 | 74,024 |
Income before income tax expense | 25,201 | 23,704 | 17,956 | 21,634 | 20,467 | 15,602 | 15,750 | 11,565 | 88,495 | 63,388 | 50,298 |
Provision for income taxes | 7,415 | 8,415 | 6,400 | 7,682 | 7,289 | 3,940 | 5,517 | 3,429 | 29,912 | 20,174 | 17,604 |
Net income | 17,786 | 15,289 | 11,556 | 13,952 | 58,583 | 43,214 | 32,694 | ||||
Preferred stock dividend | 1,006 | 980 | 507 | 0 | 2,493 | 0 | 0 | ||||
Net income available to common shareholders | $ 16,780 | $ 14,309 | $ 11,049 | $ 13,952 | $ 13,178 | $ 11,662 | $ 10,233 | $ 8,136 | $ 56,090 | $ 43,214 | $ 32,694 |
Earnings per common share: | |||||||||||
Basic earnings per share (usd per share) | $ 0.62 | $ 0.53 | $ 0.41 | $ 0.52 | $ 0.49 | $ 0.44 | $ 0.38 | $ 0.30 | $ 2.09 | $ 1.62 | $ 1.34 |
Diluted earnings per share (usd per share) | $ 0.58 | $ 0.50 | $ 0.39 | $ 0.49 | $ 0.47 | $ 0.42 | $ 0.37 | $ 0.29 | $ 1.96 | $ 1.55 | $ 1.30 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 22, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | ||
Net proceeds from issuance of preferred stock | $ 55,569 | $ 0 | $ 0 | |
Subsequent Event | Series D Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Preferred stock, shares authorized | 1,000,000 | |||
Preferred stock, share price (usd per share) | $ 25 | |||
Preferred stock, fixed dividend rate | 6.50% | |||
Net proceeds from issuance of preferred stock | $ 24,200 | |||
Subsequent Event | Series D Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||
Subsequent Event [Line Items] | ||||
Preferred stock, floating dividend rate | 5.09% |