Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CUBI | |
Entity Registrant Name | Customers Bancorp, Inc. | |
Entity Central Index Key | 1,488,813 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,544,217 |
Consolidated Balance Sheet - Un
Consolidated Balance Sheet - Unaudited - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 39,742 | $ 53,550 |
Interest-earning deposits | 225,846 | 211,043 |
Cash and cash equivalents | 265,588 | 264,593 |
Investment securities available for sale, at fair value | 530,896 | 560,253 |
Loans held for sale (includes $2,377,445 and $1,757,807, respectively, at fair value) | 2,402,708 | 1,797,064 |
Loans receivable | 6,016,995 | 5,453,479 |
Allowance for loan losses | (37,897) | (35,647) |
Total loans receivable, net of allowance for loan losses | 5,979,098 | 5,417,832 |
FHLB, Federal Reserve Bank, and other restricted stock | 71,621 | 90,841 |
Accrued interest receivable | 22,100 | 19,939 |
Bank premises and equipment, net | 12,428 | 11,531 |
Bank-owned life insurance | 160,357 | 157,211 |
Other real estate owned | 3,897 | 5,057 |
Goodwill and other intangibles | 16,924 | 3,651 |
Other assets | 136,993 | 70,233 |
Total assets | 9,602,610 | 8,398,205 |
Deposits: | ||
Demand, non-interest bearing | 1,080,970 | 653,679 |
Interest-bearing | 6,308,000 | 5,255,822 |
Total deposits | 7,388,970 | 5,909,501 |
Federal funds purchased | 52,000 | 70,000 |
FHLB advances | 1,036,700 | 1,625,300 |
Other borrowings | 86,957 | 86,457 |
Subordinated debt | 108,758 | 108,685 |
Accrued interest payable and other liabilities | 139,405 | 44,360 |
Total liabilities | 8,812,790 | 7,844,303 |
Shareholders' equity: | ||
Preferred stock, par value $1.00 per share; liquidation preference $25.00 per share; 100,000,000 shares authorized, 9,000,000 and 2,300,000 shares issued and outstanding as of September 30, 2016 and December 31, 2015 | 217,549 | 55,569 |
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 28,074,477 and 27,432,061 shares issued as of September 30, 2016 and December 31, 2015; 27,544,217 and 26,901,801 shares outstanding as of September 30, 2016 and December 31, 2015 | 28,074 | 27,432 |
Additional paid in capital | 374,727 | 362,607 |
Retained earnings | 176,929 | 124,511 |
Accumulated other comprehensive income (loss) | 774 | (7,984) |
Treasury stock, at cost (530,260 shares as of September 30, 2016 and December 31, 2015) | (8,233) | (8,233) |
Total shareholders’ equity | 789,820 | 553,902 |
Total liabilities and shareholders’ equity | $ 9,602,610 | $ 8,398,205 |
Consolidated Balance Sheet - U3
Consolidated Balance Sheet - Unaudited (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Loans held for sale at fair value | $ 2,377,445 | $ 1,757,807 |
Preferred stock, par value (usd per share) | $ 1 | $ 1 |
Preferred stock, liquidation preference (usd per share) | $ 25 | $ 25 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 9,000,000 | 2,300,000 |
Preferred stock, shares outstanding (shares) | 9,000,000 | 2,300,000 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 28,074,477 | 27,432,061 |
Common stock, shares outstanding (shares) | 27,544,217 | 26,901,801 |
Treasury stock, shares (shares) | 530,260 | 530,260 |
Consolidated Statements of Inco
Consolidated Statements of Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | ||||
Loans receivable | $ 60,362 | $ 46,291 | $ 173,847 | $ 132,185 |
Loans held for sale | 18,737 | 14,006 | 50,272 | 38,428 |
Investment securities | 3,528 | 2,283 | 10,875 | 6,899 |
Other | 1,585 | 1,156 | 3,937 | 4,625 |
Total interest income | 84,212 | 63,736 | 238,931 | 182,137 |
Interest expense: | ||||
Deposits | 13,009 | 9,022 | 34,365 | 24,693 |
Other borrowings | 1,642 | 1,539 | 4,867 | 4,523 |
FHLB advances | 3,291 | 1,556 | 9,274 | 5,044 |
Subordinated debt | 1,685 | 1,685 | 5,055 | 5,055 |
Total interest expense | 19,627 | 13,802 | 53,561 | 39,315 |
Net interest income | 64,585 | 49,934 | 185,370 | 142,822 |
Provision for loan losses | 88 | 2,094 | 2,854 | 14,393 |
Net interest income after provision for loan losses | 64,497 | 47,840 | 182,516 | 128,429 |
Non-interest income: | ||||
Interchange and card revenue | 11,547 | 128 | 13,806 | 390 |
Deposit fees | 4,218 | 265 | 5,260 | 691 |
Mortgage warehouse transactional fees | 3,080 | 2,792 | 8,702 | 7,864 |
Bank-owned life insurance | 1,386 | 1,177 | 3,629 | 3,407 |
Gain on sale of loans | 1,206 | 1,131 | 2,135 | 3,189 |
Mortgage loans and banking income | 287 | 167 | 737 | 605 |
Gain (loss) on sale of investment securities | (1) | (16) | 25 | (85) |
Other | 5,763 | 527 | 6,943 | 2,236 |
Total non-interest income | 27,486 | 6,171 | 41,237 | 18,297 |
Non-interest expense: | ||||
Salaries and employee benefits | 22,681 | 14,981 | 58,051 | 43,381 |
Technology, communication and bank operations | 12,525 | 2,422 | 19,021 | 7,791 |
Professional services | 7,006 | 2,673 | 13,213 | 7,378 |
FDIC assessments, taxes, and regulatory fees | 2,726 | 3,222 | 11,191 | 7,495 |
Occupancy | 2,450 | 2,169 | 7,248 | 6,469 |
Other real estate owned expense | 1,192 | 1,722 | 1,663 | 2,026 |
Loan workout | 592 | 285 | 1,497 | 541 |
Advertising and promotion | 591 | 330 | 1,178 | 1,106 |
Acquisition related expenses | 144 | 0 | 1,195 | 0 |
Other | 6,311 | 2,503 | 14,049 | 7,245 |
Total non-interest expense | 56,218 | 30,307 | 128,306 | 83,432 |
Income before income tax expense | 35,765 | 23,704 | 95,447 | 63,294 |
Income tax expense | 14,576 | 8,415 | 37,129 | 22,497 |
Net income | 21,189 | 15,289 | 58,318 | 40,797 |
Preferred stock dividends | 2,552 | 980 | 5,900 | 1,487 |
Net income available to common shareholders | $ 18,637 | $ 14,309 | $ 52,418 | $ 39,310 |
Basic earnings per common share (usd per share) | $ 0.68 | $ 0.53 | $ 1.93 | $ 1.47 |
Diluted earnings per common share (usd per share) | $ 0.64 | $ 0.50 | $ 1.81 | $ 1.37 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 21,189 | $ 15,289 | $ 58,318 | $ 40,797 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) on securities arising during the period | 329 | 261 | 15,256 | (4,703) |
Income tax effect | (124) | (98) | (5,721) | 1,720 |
Less: reclassification adjustment for (gains) losses on securities included in net income | 1 | 16 | (25) | 85 |
Income tax effect | 0 | (6) | 9 | (32) |
Net unrealized gains (losses) | 206 | 173 | 9,519 | (2,930) |
Unrealized gains (losses) on cash flow hedges: | ||||
Unrealized gains (losses) on cash flow hedges arising during the period | 890 | (2,341) | (2,523) | (3,841) |
Income tax effect | (334) | 877 | 946 | 1,488 |
Less: reclassification adjustment for losses included in net income | 703 | 0 | 1,306 | 0 |
Income tax effect | (264) | 0 | (490) | 0 |
Net unrealized gains (losses) | 995 | (1,464) | (761) | (2,353) |
Other comprehensive income (loss), net of tax | 1,201 | (1,291) | 8,758 | (5,283) |
Comprehensive income | $ 22,390 | $ 13,998 | $ 67,076 | $ 35,514 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock |
Beginning balance, preferred stock (shares) at Dec. 31, 2014 | 0 | ||||||
Beginning balance, common stock (shares) at Dec. 31, 2014 | 26,745,529 | ||||||
Beginning balance at Dec. 31, 2014 | $ 443,145 | $ 0 | $ 27,278 | $ 355,822 | $ 68,421 | $ (122) | $ (8,254) |
Net income | 40,797 | 40,797 | |||||
Other comprehensive income (loss) | (5,283) | (5,283) | |||||
Issuance of stock, net of offering costs (shares) | 2,300,000 | ||||||
Issuance of stock, net of offering costs | 55,569 | $ 55,569 | |||||
Preferred stock dividends | (1,487) | (1,487) | |||||
Share-based compensation expense | 3,541 | 3,541 | |||||
Issuance of common stock under share-based compensation arrangements (shares) | 136,854 | ||||||
Issuance of common stock under share-based compensation arrangements | 1,696 | $ 135 | 1,540 | 21 | |||
Ending balance, preferred stock (shares) at Sep. 30, 2015 | 2,300,000 | ||||||
Ending balance, common stock (shares) at Sep. 30, 2015 | 26,882,383 | ||||||
Ending balance at Sep. 30, 2015 | 537,978 | $ 55,569 | $ 27,413 | 360,903 | 107,731 | (5,405) | (8,233) |
Beginning balance at Jun. 30, 2015 | (4,114) | ||||||
Net income | 15,289 | ||||||
Other comprehensive income (loss) | (1,291) | ||||||
Ending balance, preferred stock (shares) at Sep. 30, 2015 | 2,300,000 | ||||||
Ending balance, common stock (shares) at Sep. 30, 2015 | 26,882,383 | ||||||
Ending balance at Sep. 30, 2015 | $ 537,978 | $ 55,569 | $ 27,413 | 360,903 | 107,731 | (5,405) | (8,233) |
Beginning balance, preferred stock (shares) at Dec. 31, 2015 | 2,300,000 | 2,300,000 | |||||
Beginning balance, common stock (shares) at Dec. 31, 2015 | 26,901,801 | 26,901,801 | |||||
Beginning balance at Dec. 31, 2015 | $ 553,902 | $ 55,569 | $ 27,432 | 362,607 | 124,511 | (7,984) | (8,233) |
Net income | 58,318 | 58,318 | |||||
Other comprehensive income (loss) | 8,758 | 8,758 | |||||
Issuance of stock, net of offering costs (shares) | 6,700,000 | 226,677 | |||||
Issuance of stock, net of offering costs | 5,677 | $ 161,980 | $ 227 | 5,450 | |||
Preferred stock dividends | (5,900) | (5,900) | |||||
Share-based compensation expense | 4,569 | 4,569 | |||||
Exercise of warrants (shares) | 259,851 | ||||||
Exercise of warrants | 1,121 | $ 259 | 862 | ||||
Issuance of common stock under share-based compensation arrangements (shares) | 155,888 | ||||||
Issuance of common stock under share-based compensation arrangements | $ 1,395 | $ 156 | 1,239 | ||||
Ending balance, preferred stock (shares) at Sep. 30, 2016 | 9,000,000 | 9,000,000 | |||||
Ending balance, common stock (shares) at Sep. 30, 2016 | 27,544,217 | 27,544,217 | |||||
Ending balance at Sep. 30, 2016 | $ 789,820 | $ 217,549 | $ 28,074 | 374,727 | 176,929 | 774 | (8,233) |
Beginning balance at Jun. 30, 2016 | (427) | ||||||
Net income | 21,189 | ||||||
Other comprehensive income (loss) | $ 1,201 | ||||||
Ending balance, preferred stock (shares) at Sep. 30, 2016 | 9,000,000 | 9,000,000 | |||||
Ending balance, common stock (shares) at Sep. 30, 2016 | 27,544,217 | 27,544,217 | |||||
Ending balance at Sep. 30, 2016 | $ 789,820 | $ 217,549 | $ 28,074 | $ 374,727 | $ 176,929 | $ 774 | $ (8,233) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity - Unaudited (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Common Stock | ||
Offering costs | $ 217 | |
Preferred Stock | ||
Offering costs | $ 5,520 | $ 1,931 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 58,318,000 | $ 40,797,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provision for loan losses, net of change to FDIC receivable and clawback liability | 2,854,000 | 14,393,000 |
Provision for depreciation and amortization | 4,138,000 | 3,034,000 |
Share-based compensation | 5,213,000 | 4,112,000 |
Deferred taxes | (4,846,000) | (7,580,000) |
Net amortization of investment securities premiums and discounts | 664,000 | 623,000 |
(Gain) loss on sale of investment securities | (25,000) | 85,000 |
Gain on sale of mortgages and other loans | (2,674,000) | (3,135,000) |
Origination of loans held for sale | (27,092,862,000) | (23,148,641,000) |
Proceeds from the sale of loans held for sale | 26,473,789,000 | 22,804,119,000 |
Decrease (increase) in FDIC loss sharing receivable net of clawback liability | 255,000 | (530,000) |
Amortization (accretion) of fair value discounts and premiums | 312,000 | (794,000) |
Net loss on sales of other real estate owned | 85,000 | 509,000 |
Valuation and other adjustments to other real estate owned, net of FDIC receivable | 1,261,000 | 917,000 |
Earnings on investment in bank-owned life insurance | (3,629,000) | (3,407,000) |
Increase in accrued interest receivable and other assets | (38,672,000) | (9,860,000) |
Increase in accrued interest payable and other liabilities | 67,134,000 | 5,087,000 |
Net Cash Used In Operating Activities | (528,685,000) | (300,271,000) |
Cash Flows from Investing Activities | ||
Proceeds from maturities, calls and principal repayments of securities available for sale | 46,097,000 | 60,966,000 |
Proceeds from sales of investment securities available for sale | 2,853,000 | 806,000 |
Purchases of investment securities available for sale | (5,000,000) | (69,358,000) |
Net increase in loans | (641,093,000) | (606,168,000) |
Proceeds from sales of loans | 91,868,000 | 192,275,000 |
Purchases of bank-owned life insurance | 0 | (15,000,000) |
Proceeds from bank-owned life insurance | 619,000 | 0 |
Net proceeds from FHLB, Federal Reserve Bank, and other restricted stock | 19,220,000 | 18,488,000 |
(Payments to) reimbursements from the FDIC on loss sharing agreements | (2,049,000) | 1,940,000 |
Purchases of bank premises and equipment | (3,343,000) | (2,439,000) |
Proceeds from sales of other real estate owned | 419,000 | 5,572,000 |
Acquisition of Disbursements business, net | (17,000,000) | 0 |
Net Cash Used In Investing Activities | (507,409,000) | (412,918,000) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 1,479,471,000 | 1,252,674,000 |
Net decrease in short-term borrowed funds from the FHLB | (663,600,000) | (657,100,000) |
Net (decrease) increase in federal funds purchased | (18,000,000) | 50,000,000 |
Proceeds from long-term FHLB borrowings | 75,000,000 | 25,000,000 |
Net proceeds from issuance of preferred stock | 161,980,000 | 55,569,000 |
Preferred stock dividends paid | (5,450,000) | (1,308,000) |
Exercise and redemption of warrants | 1,121,000 | 0 |
Proceeds from issuance of common stock | 6,567,000 | 730,000 |
Net Cash Provided by Financing Activities | 1,037,089,000 | 725,565,000 |
Net Increase in Cash and Cash Equivalents | 995,000 | 12,376,000 |
Cash and Cash Equivalents – Beginning | 264,593,000 | 371,023,000 |
Cash and Cash Equivalents – Ending | 265,588,000 | 383,399,000 |
Supplementary Cash Flows Information | ||
Interest paid | 50,410,000 | 36,128,000 |
Income taxes paid | 40,966,000 | 30,159,000 |
Non-cash items: | ||
Transfer of loans to other real estate owned | 605,000 | 3,198,000 |
Transfer of loans held for sale to held for investment | $ 0 | $ 30,365,000 |
Description of the Business
Description of the Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Customers Bancorp, Inc. (the “Bancorp” or “Customers Bancorp”) is a bank holding company engaged in banking activities through its wholly owned subsidiary, Customers Bank (the “Bank”), collectively referred to as “Customers” herein. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Customers Bancorp, Inc. and its wholly owned subsidiaries, Customers Bank, and non-bank subsidiaries, serve residents and businesses in Southeastern Pennsylvania (Bucks, Berks, Chester, Philadelphia and Delaware Counties); Rye, New York (Westchester County); Hamilton, New Jersey (Mercer County); Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire (Rockingham County); Manhattan, New York; and nationally for certain loan and deposit products. The Bank has 14 full-service branches and provides commercial banking products, primarily loans and deposits. Customers Bank administratively supports loan and other financial products to customers through its limited purpose offices in Boston, Massachusetts, Providence, Rhode Island, Portsmouth, New Hampshire, Manhattan and Melville, New York and Philadelphia, Pennsylvania. The Bank also provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Through BankMobile, a division of Customers Bank, Customers offers state of the art high tech digital banking services to consumers, students, and the "under banked" nationwide. The combination of the BankMobile technology software platform with the OneAccount Student Checking and Refund Management Disbursement Services business (the "Disbursement business") acquired from Higher One Holdings, Inc. and Higher One, Inc. (together, "Higher One") propelled BankMobile to one of the largest mobile banking services in the United States by number of customers. 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 | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition Activity | ACQUISITION ACTIVITY On June 15, 2016 , Customers completed the acquisition of substantially all the assets and the assumption of certain liabilities of the Disbursement business from Higher One. The acquisition was completed pursuant to the terms of an Asset Purchase Agreement (the "Purchase Agreement") dated as of December 15, 2015 between Customers and Higher One. Under the terms of the Purchase Agreement, Customers also acquired all existing relationships with vendors and educational institutions, and all intellectual property and assumed normal business related liabilities. In conjunction with the acquisition, Customers hired approximately 225 Higher One employees primarily located in New Haven, Connecticut that manage the Disbursement business and serve the Disbursement business customers. The transaction contemplates aggregate guaranteed payments to Higher One of $42 million . The aggregate purchase price payable by Customers is $37 million in cash, with the payments to be made as follows: (i) $17 million in cash upon the closing of the acquisition, (ii) $10 million upon the first anniversary of the closing and (iii) $10 million upon the second anniversary of the closing. In addition, concurrently with the closing, the parties entered into a Transition Services Agreement pursuant to which Higher One will provide certain transition services to Customers through June 30, 2017. As consideration for these services, Customers will pay Higher One an additional $5 million in cash. Customers also will be required to make additional payments to Higher One if, during the three years following the closing, revenues from the Disbursement business exceed $75 million in a year. The possible payment will be equal to 35% of the amount the Disbursement business related revenue exceeds $75 million in each year. As of September 30, 2016 , Customers has not recorded a liability for any additional contingent consideration payable under the Purchase Agreement. As specified in the Purchase Agreement, the payments of $10 million payable to Higher One upon each of the first and second anniversary of the transaction closing were placed into an escrow account with a third party. The $20 million in aggregate in such escrow account is presented in "Cash and due from banks" and "Accrued interest payable and other liabilities" on the September 30, 2016 balance sheet and is considered restricted cash. The following table presents the fair values of the assets acquired and liabilities assumed as of June 15, 2016: (amounts in thousands) June 15, 2016 Fair value of assets acquired: Developed software $ 27,400 Other intangible assets 9,300 Accounts receivable 2,784 Prepaid expenses 1,180 Fixed assets, net 229 Total assets acquired 40,893 Fair value of liabilities assumed: Other liabilities 5,531 Deferred revenue 2,655 Total liabilities assumed 8,186 Net assets acquired $ 32,707 Transaction cash consideration (1) $ 37,000 Goodwill recognized $ 4,293 (1) Includes $10 million payable to Higher One upon each of the first and second anniversary of the transaction closing, which has been placed into an escrow account with a third party (aggregate amount of $20 million ). Based on a preliminary purchase price allocation, Customers recorded $4.3 million in goodwill as a result of the acquisition. The amount of goodwill recorded reflects the excess purchase price over the estimated fair value of the net assets acquired. The goodwill recorded is deductible for tax purposes. The assets acquired and liabilities assumed are presented at their estimated fair values. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective and subject to change. The fair value estimates are considered preliminary and subject to change for up to one year after the closing date of the acquisition as additional information becomes available. Customers did not make any changes to the estimated fair values during third quarter 2016. The fair value for the developed software was estimated based on expected revenue attributable to the software utilizing a discounted cash flow methodology giving consideration to potential obsolescence. The developed software is being amortized over ten years based on the estimated economic benefits received. The fair values for the other intangible assets represent the value of existing student and university relationships and a non-compete agreement with Higher One based on estimated retention rates and discounted cash flows. Other intangible assets are being amortized over an estimated life ranging from four to twenty years . In connection with the Disbursement business acquisition, Customers incurred acquisition related expenses of $0.1 million and $1.2 million for the three and nine months ended September 30, 2016 , respectively, related predominantly to professional services. |
Significant Accounting Policies
Significant Accounting Policies and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Basis of Presentation | SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The interim unaudited consolidated financial statements of Customers Bancorp and subsidiaries have been prepared pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2015 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2015 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2015 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 26, 2016 . That Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Investment Securities; Loan Accounting Framework; Allowance for Loan Losses; Investments in FHLB, Federal Reserve Bank, and other restricted stock; Other Real Estate Owned; FDIC Loss Sharing Receivable and Clawback Liability; Bank-Owned Life Insurance; Bank Premises and Equipment; Treasury Stock; Income Taxes; Share-Based Compensation; Derivative Instruments and Hedging; Comprehensive Income; and Earnings per Share. Certain prior period amounts have been reclassified to conform to current period presentation. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Customers Bancorp's significant accounting policies that were updated during the three or nine months ended September 30, 2016 to address new or evolving activities and recently issued accounting standards and updates that were issued or effective during 2016 . Restrictions on Cash and Amounts due from Banks Customers Bank is required to maintain average balances of cash on hand or with the Federal Reserve Bank at prescribed levels. As of September 30, 2016 and December 31, 2015 , these reserve balances were $118.2 million and $73.2 million , respectively. In connection with the acquisition of the Disbursement business from Higher One, Customers placed $20 million in an escrow account with a third party to be paid to Higher One over the next two years. This cash is restricted in use and is reported in "Cash and due from banks" on the consolidated balance sheet as of September 30, 2016 . Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (ASC) 805, Business Combinations . Under the acquisition method, identifiable assets acquired and liabilities assumed are measured at their fair values as of that date, and are recognized separately from goodwill. Results of operations of the acquired entity are included in the consolidated statement of income from the date of acquisition. Goodwill and Other Intangible Assets Goodwill represents the excess of cost over the identifiable net assets of businesses acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as customer relationship intangibles, core deposit intangibles, and non-compete agreements, are amortized over their estimated useful lives and subject to periodic impairment testing. Goodwill and other intangible assets recognized as part of the Disbursement business acquisition are based on a preliminary allocation of the purchase price and subject to change for up to one year following the date of the acquisition closing. Goodwill and other intangible assets are reviewed for impairment annually as of October 31 and between annual tests when events and circumstances indicate that impairment may have occurred. Impairment is a condition that exists when the carrying amount of goodwill or other intangible asset exceeds its implied fair value. A qualitative factor test can be performed to determine whether it is necessary to perform a two-step quantitative 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 of September 30, 2016 and December 31, 2015 , goodwill and other intangibles totaled $16.9 million and $3.7 million , respectively. Segment Information In connection with the acquisition of the Disbursement business from Higher One and the combination of that business with the BankMobile technology platform late in second quarter 2016, Customers' chief operating decision makers, our Chief Executive Officer and Board of Directors, began allocating resources and assessing performance for two distinct business segments, "Community Business Banking" and "BankMobile." The Community Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island and New Hampshire through a single point of contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. The BankMobile segment provides state of the art high tech digital banking and disbursement services to consumers, students, and the "under banked" nationwide. BankMobile, as a division of Customers Bank, is a full service bank that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Prior to third quarter 2016, Customers operated in one business segment, “Community Banking.” Additional information regarding reportable segments can be found in NOTE 14 - BUSINESS SEGMENTS. Recently Issued Accounting Standards In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-17— Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control . The amendments in this ASU do not change the characteristics of a primary beneficiary under current guidance. Namely, that a primary beneficiary of a Variable Interest Entity (VIE) has: (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. If a reporting entity satisfies the first characteristic, (i.e. it is the single decision maker of a VIE), the amendments in this ASU require that reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. Therefore, under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties. If, after performing that assessment, a reporting entity that is the single decision maker of a VIE concludes that it does not have the characteristics of a primary beneficiary, the amendments continue to require that reporting entity to evaluate whether it and one or more of its related parties under common control, as a group, have the characteristics of a primary beneficiary. If the single decision maker and its related parties that are under common control, as a group, have the characteristics of a primary beneficiary, then the party within the related party group that is most closely associated with the VIE is the primary beneficiary. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Customers is currently evaluating the impact of this ASU on its financial condition, results of operations and consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16—Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this ASU eliminate the exception for an intra-entity transfer of an asset other than inventory. Two common examples of assets included in the scope of this ASU are intellectual property and property, plant, and equipment. Intra-entity transfers of inventory will continue to follow existing US GAAP. The amendments in this ASU do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. Customers is currently evaluating the impact of this ASU on its financial condition, results of operations and consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments . This ASU is aimed at reducing the existing diversity in practice with regards to the following specific items in the Statement of Cash Flows: 1. Cash payments for debt prepayment or extinguishment costs will be classified in financing activities. 2. Upon settlement of zero-coupon bonds and bonds with insignificant cash coupons, the portion of the payment attributable to imputed interest will be classified as an operating activity, while the portion of the payment attributable to principal will be classified as a financing activity. 3. Cash paid by an acquirer that isn’t soon after a business combination for the settlement of a contingent consideration liability will be separated between financing activities and operating activities. Cash payments up to the amount of the contingent consideration liability recognized at the acquisition date will be classified in financing activities; any excess will be classified in operating activities. Cash paid soon after the business combination will be classified in investing activities. 4. Cash proceeds received from the settlement of insurance claims will be classified on the basis of the related insurance coverage (that is, the nature of the loss). Cash proceeds from lump-sum settlements will be classified based on the nature of each loss included in the settlement. 5. Cash proceeds received from the settlement of bank-owned life insurance (BOLI) policies will be classified as cash inflows from investing activities. Cash payments for premiums on BOLI may be classified as cash outflows for investing, operating, or a combination of both. 6. A transferor’s beneficial interest obtained in a securitization of financial assets will be disclosed as a noncash activity, and cash received from beneficial interests will be classified in investing activities. 7. Distributions received from equity method investees will be classified using either a cumulative earnings approach or a look-through approach as an accounting policy election. The ASU contains additional guidance clarifying when an entity should separate cash receipts and cash payments and classify them into more than one class of cash flows (including when reasonable judgment is required to estimate and allocate cash flows) versus when an entity should classify the aggregate amount into one class of cash flows on the basis of predominance. F or public business entities, the amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Customers is currently evaluating the impact of this ASU on the presentation of its statement of cash flows. In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in ealier recognition of credit losses. The ASU also requires new disclosures for financial assets measured at amortized cost, loans, and available for sale debt securities. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Customers is currently evaluating the impact of this ASU on its financial condition, results of operations and consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 , Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some areas for simplification apply only to non-public entities. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In addition, the amendments in this ASU eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. Customers is currently evaluating the impact of this ASU on its financial condition and results of operations. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures. To simplify the accounting for equity method investments, the amendments in the ASU eliminate the requirement in Topic 323, Investments - Equity Method and Joint Venture, that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The ASU is effective for all entities for fiscal years beginning after December 15, 2016, and 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 March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments. Topic 815, Derivatives and Hedging, requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amendments in this ASU clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Namely, this decision sequence requires that an entity consider whether: 1. the payoff is adjusted based on changes in an index; 2. the payoff is indexed to an underlying other than interest rates or credit risk; 3. the debt involves a substantial premium or discount; and 4. the call (put) option is contingently exercisable. The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and 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 March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships . The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and 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 March 2016, the FASB issued ASU No. 2016-04, Liabilities - Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products . When an entity sells a prepaid stored-value product (such as gift cards, telecommunication cards, and traveler’s checks), it recognizes a financial liability for its obligation to provide the product holder with the ability to purchase goods or services at a third-party merchant. When a prepaid stored-value product goes unused wholly or partially for an indefinite time period, the amount that remains on the product is referred to as breakage. There currently is diversity in the methodology used to recognize breakage. Subtopic 405-20, Extinguishment of Liabilities, includes derecognition guidance for both financial liabilities and nonfinancial liabilities, and Topic 606, Revenue from Contracts with Customers, includes authoritative breakage guidance but excludes financial liabilities. The amendments in this ASU provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and 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 February 2016, the FASB issued 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 lessees. 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 this ASU on its financial condition and results of operations. In January 2016, the FASB issued 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 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 FASB issued ASU 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 was 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 the 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 was effective for interim and annual periods beginning after December 15, 2015. The adoption of these ASUs on January 1, 2016 resulted in a reclassification adjustment, which reduced "Other borrowings" by $1.8 million and "Subordinated debt" by $1.3 million with a corresponding decrease in "Other assets" of $3.1 million as of December 31, 2015. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. The guidance in this ASU affects reporting entities that must determine whether they should consolidate certain legal entities. This ASU modifies the evaluation of whether limited partnerships or similar legal entities are variable interest entities (VIEs) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The guidance in this ASU was 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 - 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 ASU was effective in first quarter 2016. 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: 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 was effective in first quarter 2016. 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 2014-13 , Consolidation: 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 was effective in first quarter 2016. 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 was effective in first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of opera |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) By Component | 9 Months Ended |
Sep. 30, 2016 | |
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 three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, 2016 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Gain (Loss) on Cash Flow Hedge Total Balance - June 30, 2016 $ 4,895 $ (768 ) $ 4,127 $ (4,554 ) $ (427 ) Other comprehensive income (loss) before reclassifications 15 190 205 556 761 Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) 1 — 1 439 440 Net current-period other comprehensive income 16 190 206 995 1,201 Balance - September 30, 2016 $ 4,911 $ (578 ) $ 4,333 $ (3,559 ) $ 774 Nine Months Ended September 30, 2016 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Loss on Cash Flow Hedge Total Balance - December 31, 2015 $ (4,602 ) $ (584 ) $ (5,186 ) $ (2,798 ) $ (7,984 ) Other comprehensive income (loss) before reclassifications 9,529 6 9,535 (1,577 ) 7,958 Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) (16 ) — (16 ) 816 800 Net current-period other comprehensive income (loss) 9,513 6 9,519 (761 ) 8,758 Balance - September 30, 2016 $ 4,911 $ (578 ) $ 4,333 $ (3,559 ) $ 774 (1) All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. (2) Reclassification amounts for available-for-sale securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. Three Months Ended September 30, 2015 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Loss on Cash Flow Hedge Total Balance - June 30, 2015 $ (1,825 ) $ (136 ) $ (1,961 ) $ (2,153 ) $ (4,114 ) Other comprehensive income (loss) before reclassifications 598 (435 ) 163 (1,464 ) (1,301 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) 10 — 10 — 10 Net current-period other comprehensive income (loss) 608 (435 ) 173 (1,464 ) (1,291 ) Balance - September 30, 2015 $ (1,217 ) $ (571 ) $ (1,788 ) $ (3,617 ) $ (5,405 ) Nine Months Ended September 30, 2015 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Loss on Cash Flow Hedge Total Balance - December 31, 2014 $ 1,156 $ (14 ) $ 1,142 $ (1,264 ) $ (122 ) Other comprehensive (loss) before reclassifications (2,426 ) (557 ) (2,983 ) (2,353 ) (5,336 ) Amounts reclassified from accumulated other comprehensive loss to net income (2) 53 — 53 — 53 Net current-period other comprehensive income (loss) (2,373 ) (557 ) (2,930 ) (2,353 ) (5,283 ) Balance - September 30, 2015 $ (1,217 ) $ (571 ) $ (1,788 ) $ (3,617 ) $ (5,405 ) (1) All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. (2) Reclassification amounts are reported as gain (loss) on sale of investment securities on the consolidated statements of income. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following are the components and results of Customers' earnings per common share calculation for the periods presented. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 18,637 $ 14,309 $ 52,418 $ 39,310 Weighted-average number of common shares outstanding - basic 27,367,551 26,872,787 27,131,960 26,830,341 Share-based compensation plans 1,657,818 1,538,436 1,595,022 1,453,378 Warrants 124,365 329,906 243,531 315,276 Weighted-average number of common shares - diluted 29,149,734 28,741,129 28,970,513 28,598,995 Basic earnings per common share $ 0.68 $ 0.53 $ 1.93 $ 1.47 Diluted earnings per common share $ 0.64 $ 0.50 $ 1.81 $ 1.37 The following is a summary of securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive for the periods presented. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Anti-dilutive securities: Share-based compensation awards 616,995 607,678 616,995 608,778 Warrants 52,242 52,242 52,242 52,242 Total anti-dilutive securities 669,237 659,920 669,237 661,020 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of September 30, 2016 and December 31, 2015 are summarized in the tables below: September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 251,755 $ 2,890 $ (325 ) $ 254,320 Agency-guaranteed commercial real estate mortgage-backed securities 204,769 9,030 — 213,799 Corporate notes (1) 44,930 1,111 — 46,041 Equity securities (2) 22,508 — (5,772 ) 16,736 $ 523,962 $ 13,031 $ (6,097 ) $ 530,896 (1) Includes subordinated debt issued by other bank holding companies. (2) Consists of equity securities issued by a foreign entity. December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 299,392 $ 1,453 $ (2,741 ) $ 298,104 Agency-guaranteed commercial real estate mortgage-backed securities 206,719 — (3,849 ) 202,870 Corporate notes (1) 39,925 320 (178 ) 40,067 Equity securities (2) 22,514 — (3,302 ) 19,212 $ 568,550 $ 1,773 $ (10,070 ) $ 560,253 (1) Includes subordinated debt issued by other bank holding companies. (2) Consists primarily of equity securities issued by a foreign entity. The following table presents proceeds from the sale of available-for-sale investment securities and gross gains and gross losses realized on those sales for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (amounts in thousands) Proceeds from sale of available-for-sale securities $ 5 $ 314 $ 2,853 $ 806 Gross gains $ — $ — $ 26 $ — Gross losses (1 ) (16 ) (1 ) (85 ) Net gains (losses) $ (1 ) $ (16 ) $ 25 $ (85 ) These gains and losses were determined using the specific identification method and were reported as gains (losses) on sale of investment securities included in non-interest income on the consolidated statements of income. The following table presents available-for-sale debt securities by stated maturity. Debt securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date: September 30, 2016 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 37,930 38,783 Due after ten years 7,000 7,258 Agency-guaranteed residential mortgage-backed securities 251,755 254,320 Agency-guaranteed commercial real estate mortgage-backed securities 204,769 213,799 Total debt securities $ 501,454 $ 514,160 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 at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 2,388 $ (1 ) $ 32,529 $ (324 ) $ 34,917 $ (325 ) Equity securities (2) — — 16,736 (5,772 ) 16,736 (5,772 ) Total $ 2,388 $ (1 ) $ 49,265 $ (6,096 ) $ 51,653 $ (6,097 ) 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: Agency-guaranteed residential mortgage-backed securities $ 102,832 $ (535 ) $ 57,357 $ (2,206 ) 160,189 $ (2,741 ) Agency-guaranteed commercial real estate mortgage-backed securities 202,870 (3,849 ) — — 202,870 (3,849 ) Corporate notes (1) 9,748 (178 ) — — 9,748 (178 ) Equity securities (2) 19,206 (3,301 ) 6 (1 ) 19,212 (3,302 ) Total $ 334,656 $ (7,863 ) $ 57,363 $ (2,207 ) $ 392,019 $ (10,070 ) (1) Includes subordinated debt issued by other bank holding companies. (2) Consists primarily of equity securities in a foreign entity. At September 30, 2016 , there was one available-for-sale investment security in the less-than-twelve-month category and nine available-for-sale investment securities in the twelve-month-or-more category. The unrealized losses on the residential 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 September 30, 2016 . At September 30, 2016 and December 31, 2015 , Customers Bank had pledged investment securities aggregating $254.3 million and $299.8 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 | 9 Months Ended |
Sep. 30, 2016 | |
Receivables Held-for-sale [Abstract] | |
Loans Held for Sale | LOANS HELD FOR SALE The composition of loans held for sale as of September 30, 2016 and December 31, 2015 was as follows: September 30, 2016 December 31, 2015 (amounts in thousands) Commercial loans: Mortgage warehouse loans at fair value $ 2,373,877 $ 1,754,950 Multi-family loans at lower of cost or fair value 25,263 39,257 Commercial loans held for sale 2,399,140 1,794,207 Consumer loans: Residential mortgage loans at fair value 3,568 2,857 Loans held for sale $ 2,402,708 $ 1,797,064 Commercial loans held for sale consists primarily of mortgage warehouse loans. These mortgage warehouse lending transactions are subject to master repurchase agreements and are designated as held for sale and reported at fair value based on an election made to account for the loans at fair value. Pursuant to the agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded loans (i.e., the purchase event) and receives proceeds directly from third party investors when the loans are sold into the secondary market (i.e., the sale event). The fair value of the mortgage warehouse loans is estimated as the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The interest rate on these loans are variable and the lending transactions are short-term, with an average life of 20 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. Effective September 30, 2015, Customers Bank 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 Bank transferred these loans at their carrying value, which was lower than the estimated fair value at the time of transfer. There were no loans transferred during 2016. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The following table presents loans receivable as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (amounts in thousands) Commercial: Multi-family $ 3,150,298 $ 2,909,439 Commercial and industrial (including owner occupied commercial real estate) 1,296,721 1,111,400 Commercial real estate non-owner occupied 1,151,099 956,255 Construction 83,835 87,240 Total commercial loans 5,681,953 5,064,334 Consumer: Residential real estate 227,122 271,613 Manufactured housing 104,404 113,490 Other 3,420 3,708 Total consumer loans 334,946 388,811 Total loans receivable 6,016,899 5,453,145 Deferred costs and unamortized premiums, net 96 334 Allowance for loan losses (37,897 ) (35,647 ) Loans receivable, net of allowance for loan losses $ 5,979,098 $ 5,417,832 The following tables summarize loans receivable by loan type and performance status as of September 30, 2016 and December 31, 2015 : September 30, 2016 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 3,147,521 $ 2,777 $ 3,150,298 Commercial and industrial — — — 4,900 899,200 1,150 905,250 Commercial real estate - owner occupied — — — 2,071 376,482 12,918 391,471 Commercial real estate - non-owner occupied — — — 2,152 1,142,024 6,923 1,151,099 Construction — — — — 83,835 — 83,835 Residential real estate 1,182 — 1,182 2,238 215,766 7,936 227,122 Manufactured housing (5) 2,958 2,543 5,501 1,992 93,784 3,127 104,404 Other consumer 16 — 16 43 3,118 243 3,420 Total $ 4,156 $ 2,543 $ 6,699 $ 13,396 $ 5,961,730 $ 35,074 $ 6,016,899 December 31, 2015 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 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 (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 subject to cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. As of September 30, 2016 and December 31, 2015, the Bank had $0.9 million and $1.2 million , respectively, of residential real estate held in other real estate owned. As of September 30, 2016 and December 31, 2015, the Bank had initiated foreclosure proceedings on $0.5 million and $0.6 million , respectively, on loans secured by residential real estate. Allowance for loan losses 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 three and nine months ended September 30, 2016 and 2015 and the loans and allowance for loan losses by loan class based on impairment evaluation method as of September 30, 2016 and December 31, 2015 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 for periods prior to the termination of the FDIC loss sharing arrangements. Three Months Ended September 30, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, June 30, 2016 $ 12,368 $ 10,370 $ 1,582 $ 8,483 $ 1,209 $ 3,535 $ 440 $ 110 $ 38,097 Charge-offs — (237 ) — (140 ) — (43 ) — (246 ) (666 ) Recoveries — 62 — — 8 298 — 10 378 Provision for loan losses (695 ) 832 305 3 (168 ) (411 ) (18 ) 240 88 Ending Balance, September 30, 2016 $ 11,673 $ 11,027 $ 1,887 $ 8,346 $ 1,049 $ 3,379 $ 422 $ 114 $ 37,897 Nine Months Ended September 30, 2016 Ending Balance, December 31, 2015 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Charge-offs — (774 ) — (140 ) — (456 ) — (478 ) (1,848 ) Recoveries — 173 — 8 465 299 — 10 955 Provision for loan losses (343 ) 2,764 539 58 (490 ) 238 (72 ) 449 3,143 Ending Balance, September 30, 2016 $ 11,673 $ 11,027 $ 1,887 $ 8,346 $ 1,049 $ 3,379 $ 422 $ 114 $ 37,897 As of September 30, 2016 Loans: Individually evaluated for impairment $ 4,538 $ 30,275 $ 10,523 $ 10,659 $ — $ 3,999 $ 9,091 $ 42 $ 69,127 Collectively evaluated for impairment 3,142,983 873,825 368,030 1,133,517 83,835 215,187 92,186 3,135 5,912,698 Loans acquired with credit deterioration 2,777 1,150 12,918 6,923 — 7,936 3,127 243 35,074 $ 3,150,298 $ 905,250 $ 391,471 $ 1,151,099 $ 83,835 $ 227,122 $ 104,404 $ 3,420 $ 6,016,899 Allowance for loan losses: Individually evaluated for impairment $ 195 $ 3,119 $ — $ 27 $ — $ 63 $ — $ — $ 3,404 Collectively evaluated for impairment 11,478 7,771 1,857 4,581 1,049 2,515 95 57 29,403 Loans acquired with credit deterioration — 137 30 3,738 — 801 327 57 5,090 $ 11,673 $ 11,027 $ 1,887 $ 8,346 $ 1,049 $ 3,379 $ 422 $ 114 $ 37,897 Three Months Ended September 30, 2015 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, June 30, 2015 $ 8,734 $ 14,062 $ 3,651 $ 6,310 $ 844 $ 3,455 $ 316 $ 119 $ 37,491 Charge-offs — (5,559 ) (35 ) (82 ) — (256 ) — — (5,932 ) Recoveries — 248 13 — 8 — — 6 275 Provision for loan losses 472 1,678 (370 ) (109 ) 258 (5 ) 70 (5 ) 1,989 Ending Balance, September 30, 2015 $ 9,206 $ 10,429 $ 3,259 $ 6,119 $ 1,110 $ 3,194 $ 386 $ 120 $ 33,823 Nine Months Ended September 30, 2015 Ending Balance, December 31, 2014 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Charge-offs — (6,793 ) (378 ) (327 ) (1,064 ) (282 ) — (36 ) (8,880 ) Recoveries — 351 14 — 195 572 — 91 1,223 Provision for loan losses 713 12,087 (713 ) (2,752 ) 932 206 124 (49 ) 10,548 Ending Balance, September 30, 2015 $ 9,206 $ 10,429 $ 3,259 $ 6,119 $ 1,110 $ 3,194 $ 386 $ 120 $ 33,823 As of December 31, 2015 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 Certain manufactured housing loans were purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the purchase agreement for defaults of the underlying borrower and other specified items. At September 30, 2016 and December 31, 2015 , funds available for reimbursement, if necessary, were $0.7 million and $1.2 million , respectively. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio. 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 September 30, 2016 and December 31, 2015 and the average recorded investment and interest income recognized for the three and nine months ended September 30, 2016 and 2015 . Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. September 30, 2016 Three Months Ended September 30, 2016 Nine Months Ended Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Multi-family $ 4,159 $ 4,159 $ — $ 2,080 $ 38 $ 1,205 $ 38 Commercial and industrial 22,885 23,919 — 21,859 406 18,681 879 Commercial real estate owner occupied 10,523 10,523 — 10,182 201 9,651 403 Commercial real estate non-owner occupied 10,539 10,678 — 7,983 118 6,081 133 Other consumer 42 42 — 43 — 45 — Residential real estate 3,799 3,842 — 3,835 39 4,039 83 Manufactured housing 9,091 9,091 — 8,971 9 8,785 290 With an allowance recorded: Multi-family 379 379 195 383 5 290 15 Commercial and industrial 7,390 7,390 3,119 7,561 43 7,256 155 Commercial real estate owner occupied — — — — — 6 — Commercial real estate non-owner occupied 120 120 27 328 2 438 6 Other consumer — — — — — 36 — Residential real estate 200 200 63 300 — 421 — Manufactured housing — — — — — — — Total $ 69,127 $ 70,343 $ 3,404 $ 63,525 $ 861 $ 56,934 $ 2,002 December 31, 2015 Three Months Ended September 30, 2015 Nine Months Ended Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Multi-family $ 661 $ 661 $ — $ 203 $ 5 $ 101 $ 5 Commercial and industrial 12,056 13,028 — 7,597 102 9,179 500 Commercial real estate owner occupied 8,317 8,317 — 6,431 103 7,617 288 Commercial real estate non-owner occupied 4,276 4,276 — 7,803 137 6,937 514 Construction — — — 335 — 1,330 — Other consumer 48 48 — 49 1 35 1 Residential real estate 4,331 4,331 — 4,044 20 3,910 62 Manufactured housing 8,300 8,300 — 7,061 131 4,855 339 With an allowance recorded: Commercial and industrial 5,565 5,914 1,990 12,640 26 8,420 332 Commercial real estate - owner occupied 12 12 1 13 66 200 66 Commercial real estate non-owner occupied 555 555 148 664 4 821 9 Other consumer 92 92 50 93 — 88 — Residential real estate 395 395 84 474 1 419 1 Total $ 44,608 $ 45,929 $ 2,273 $ 47,407 $ 596 $ 43,912 $ 2,117 Troubled Debt Restructurings At September 30, 2016 and December 31, 2015 , there were $14.2 million and $11.4 million , respectively, in loans reported as troubled debt restructurings (“TDRs”). TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if it satisfies a minimum 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 three and nine months ended September 30, 2016 and 2015 . There were no modifications that involved forgiveness of debt. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Extensions of maturity — $ — 1 $ 183 Interest-rate reductions 10 533 21 705 Total 10 $ 533 22 $ 888 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Extensions of maturity 3 $ 1,995 1 $ 183 Interest-rate reductions 49 1,932 131 5,747 Total 52 $ 3,927 132 $ 5,930 The following table provides, by loan type, the number of loans modified in troubled debt restructurings, and the related recorded investment, during the three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Commercial and industrial — $ — 1 $ 183 Commercial real estate non-owner occupied — — — — Manufactured housing 10 533 20 699 Residential real estate — — 1 6 Total loans 10 $ 533 22 $ 888 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Commercial and industrial 1 $ 76 2 $ 527 Commercial real estate non-owner occupied 1 1,844 1 209 Manufactured housing 47 1,716 127 4,993 Residential real estate 3 291 2 201 Total loans 52 $ 3,927 132 $ 5,930 As of September 30, 2016 and December 31, 2015 , there were no commitments to lend additional funds to debtors whose terms have been modified in TDRs. As of September 30, 2016 , five manufactured housing loans totaling $0.1 million that were modified in TDRs within the past twelve months, defaulted on payments. As of September 30, 2015 , five manufactured housing loans totaling $0.2 million that were modified in TDRs within the past twelve months, defaulted on payments. Loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for loan losses. There was one specific allowance as a result of TDR modifications during the three and nine months ended September 30, 2016 , totaling $29 thousand for one commercial real estate non-owner occupied loan. There was one specific allowance resulting from TDR modifications during the three months ended September 30, 2015 , totaling $140 thousand for one commercial and industrial loan. There were three specific allowances from TDR modifications during the nine months ended September 30, 2015 , totaling $208 thousand for two commercial and industrial loans, and $25 thousand for one commercial real estate non-owner occupied loan. Purchased Credit Impaired Loans The changes in accretable yield related to purchased-credit-impaired loans for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30, 2016 2015 (amounts in thousands) Accretable yield balance as of June 30, $ 11,165 $ 14,302 Accretion to interest income (460 ) (551 ) Reclassification from nonaccretable difference and disposals, net 107 10 Accretable yield balance as of September 30, $ 10,812 $ 13,761 Nine Months Ended September 30, 2016 2015 (amounts in thousands) Accretable yield balance as of December 31, $ 12,947 $ 17,606 Accretion to interest income (1,429 ) (1,790 ) Reclassification from nonaccretable difference and disposals, net (706 ) (2,055 ) Accretable yield balance as of September 30, $ 10,812 $ 13,761 Allowance for Loan Losses and the FDIC Loss Sharing Receivable and Clawback Liability Losses incurred on covered loans were eligible for partial reimbursement by the FDIC. Subsequent to the purchase date, the expected cash flows on the covered loans were subject to evaluation. Decreases in the present value of expected cash flows on the covered loans were recognized by increasing the allowance for loan losses with a related charge to the provision for loan losses. At the same time, the FDIC indemnification asset was increased reflecting an estimated future collection from the FDIC, which was recorded as a reduction to the provision for loan losses. If the expected cash flows on the covered loans increased such that a previously recorded impairment could be reversed, the Bank recorded a reduction in the allowance for loan losses (with a related credit to the provision for loan losses) accompanied by a reduction in the FDIC receivable balance (with a related charge to the provision for loan losses). Increases in expected cash flows on covered loans and decreases in expected cash flows from the FDIC loss sharing receivable, when there are no previously recorded impairments, were considered together and recognized over the remaining life of the loans as interest income. Decreases in the valuations of other real estate owned covered by the loss sharing agreements were recorded net of the estimated FDIC receivable as an increase to other real estate owned expense (a component of non-interest expense). On July 11, 2016, Customers entered into an agreement to terminate all existing rights and obligations pursuant to the loss sharing agreements with the FDIC. In connection with the termination agreement, Customers paid the FDIC $1.4 million as final payment under these agreements. The negotiated settlement amount was based on net losses incurred on the covered assets through September 30, 2015, adjusted for cash payments to and receipts from the FDIC as part of the December 31, 2015 and March 31, 2016 certifications. Consequently, loans and other real estate owned previously reported as covered assets pursuant to the loss sharing agreements were no longer presented as covered assets as of June 30, 2016. The following table presents changes in the allowance for loan losses and the FDIC loss sharing receivable, including the effects of the estimated clawback liability and the termination agreement, for the three and nine months ended September 30, 2016 and 2015 . Allowance for Loan Losses Three Months Ended September 30, (amounts in thousands) 2016 2015 Ending balance as of June 30, $ 38,097 $ 37,491 Provision for loan losses (1) 88 1,989 Charge-offs (666 ) (5,932 ) Recoveries 378 275 Ending balance as of September 30, $ 37,897 $ 33,823 FDIC Loss Sharing Receivable/ Clawback Liability Three Months Ended September 30, (amounts in thousands) 2016 2015 Ending balance as of June 30, $ (1,381 ) $ (1,455 ) Increased (decreased) estimated cash flows (2) — (105 ) Increased estimated cash flows from covered OREO (a) — 3,138 Other activity, net (b) — 61 Cash payments to (receipts from) the FDIC 1,381 (1,437 ) Ending balance as of September 30, $ — $ 202 (1) Provision for loan losses $ 88 $ 1,989 (2) Effect attributable to FDIC loss share arrangements — 105 Net amount reported as provision for loan losses $ 88 $ 2,094 (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, which qualify for reimbursement under loss sharing agreements. Allowance for Loan Losses Nine months ended September 30, (amounts in thousands) 2016 2015 Ending balance as of December 31, $ 35,647 $ 30,932 Provision for loan losses (1) 3,143 10,548 Charge-offs (1,848 ) (8,880 ) Recoveries 955 1,223 Ending balance as of September 30, $ 37,897 $ 33,823 FDIC Loss Sharing Receivable/ Clawback Liability Nine months ended September 30, (amounts in thousands) 2016 2015 Ending balance as of December 31, $ (2,083 ) $ 2,320 Increased (decreased) estimated cash flows (2) 289 (3,845 ) Increased estimated cash flows from covered OREO (a) — 3,138 Other activity, net (b) (255 ) 529 Cash payments to (receipts from) the FDIC 2,049 (1,940 ) Ending balance as of September 30, $ — $ 202 (1) Provision for loan losses $ 3,143 $ 10,548 (2) Effect attributable to FDIC loss share arrangements (289 ) 3,845 Net amount reported as provision for loan losses $ 2,854 $ 14,393 (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, which qualify for reimbursement under loss sharing agreements. Credit Quality Indicators Multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, construction, and residential real estate loans are rated based on an internally assigned risk rating system which is assigned at the time of loan origination and reviewed on a periodic, or on an “as needed,” basis. Manufactured housing and other consumer loans are evaluated based on the payment activity of the loan and individual loans are not assigned an internal risk rating unless delinquent. To facilitate the monitoring of credit quality within the multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, construction and residential real estate classes, and for purposes of analyzing historical loss rates used in the determination of the allowance for loan losses for the respective portfolio class, the Bank utilizes the following categories of risk ratings: pass/satisfactory (includes risk rating 1 through 6), special mention, substandard, doubtful, and loss. The risk rating categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass/satisfactory ratings, which are assigned to those borrowers who do not have identified potential or well-defined weaknesses and for whom there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. While assigning risk ratings involves judgment, the risk-rating process allows management to identify riskier credits in a timely manner and allocate the appropriate resources to manage those loans. The risk rating grades are defined as follows: “1” – Pass / Excellent Loans rated 1 represent a credit extension of the highest quality. The borrower’s historic (at least five years) cash flows manifest extremely large and stable margins of coverage. Balance sheets are conservative, well capitalized, and liquid. After considering debt service for proposed and existing debt, projected cash flows continue to be strong and provide ample coverage. The borrower typically reflects broad geographic and product diversification and has access to alternative financial markets. “2” – Pass / Superior Loans rated 2 are those for which the borrower has a strong financial condition, balance sheet, operations, cash flow, debt capacity and coverage with ratios better than industry norms. The borrowers of these loans exhibit a limited leverage position, are virtually immune to local economies, and are in stable growing industries. The management team is well respected and the company has ready access to public markets. “3” – Pass / Strong Loans rated 3 are those loans for which the borrowers have above average financial condition and flexibility; more than satisfactory debt service coverage; balance sheet and operating ratios are consistent with or better than industry peers; operate in industries with little risk; move in diversified markets; and are experienced and competent in their industry. These borrowers’ access to capital markets is limited mostly to private sources, often secured, but the borrower typically has access to a wide range of refinancing alternatives. “4” – Pass / Good Loans rated 4 have a sound primary and secondary source of repayment. The borrower may have access to alternative sources of financing, but sources are not as widely available as they are to a higher grade borrower. These loans carry a normal level of risk, with very low loss exposure. The borrower has the ability to perform according to the terms of the credit facility. The margins of cash flow coverage are satisfactory but vulnerable to more rapid deterioration than the higher quality loans. “5” – Satisfactory Loans rated 5 are extended to borrowers who are determined to be a reasonable credit risk and demonstrate the ability to repay the debt from normal business operations. Risk factors may include reliability of margins and cash flows, liquidity, dependence on a single product or industry, cyclical trends, depth of management, or limited access to alternative financing sources. The borrower’s historical financial information may indicate erratic performance, but current trends are positive and the quality of financial information is adequate, but is not as detailed and sophisticated as information found on higher grade loans. If adverse circumstances arise, the impact on the borrower may be significant. “6” – Satisfactory / Bankable with Care Loans rated 6 are those for which the borrower has higher than normal credit risk; however, cash flow and asset values are generally intact. These borrowers may exhibit declining financial characteristics, with increasing leverage and decreasing liquidity and may have limited resources and access to financial alternatives. Signs of weakness in these borrowers may include delinquent taxes, trade slowness and eroding profit margins. “7” – Special Mention Loans rated 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 The Bank assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. “10” – Loss The Bank assigns a loss rating to loans considered uncollectible and of such little value that their continuance as an active asset is not warranted. Amounts classified as loss are immediately charged off. Risk ratings are not established for certain consumer loans, including home equity, manufactured housing, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based upon aggregate payment history through the monitoring of delinquency levels and trends and are classified as performing and non-performing. The following tables present the credit ratings of loans receivable as of September 30, 2016 and December 31, 2015 . September 30, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 3,145,089 $ 874,940 $ 377,917 $ 1,140,415 $ 83,835 $ 224,113 $ — $ — $ 5,846,309 Special Mention 379 23,147 9,032 8,544 — — — — 41,102 Substandard 4,830 7,163 4,522 2,140 — 3,009 — — 21,664 Performing (1) — — — — — — 96,911 3,361 100,272 Non-performing (2) — — — — — — 7,493 59 7,552 Total $ 3,150,298 $ 905,250 $ 391,471 $ 1,151,099 $ 83,835 $ 227,122 $ 104,404 $ 3,420 $ 6,016,899 December 31, 2015 Multi-family Commercial Commercial Commercial Real Estate Non-Owner Occupied 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 (1) Includes consumer and other installment loans not subject to risk ratings. (2) Includes loans that are past due and still accruing interest and loans on nonaccrual status. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY On September 16, 2016, Customers Bancorp issued 3,400,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, (the “Series F Preferred Stock”) par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series F Preferred Stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 6.00% from the original issue date to, but excluding, December 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 4.762% per annum. Customers received net proceeds of $82.3 million from the offering, after deducting offering costs. On August 11, 2016, Customers Bancorp entered into an At Market Issuance Sales Agreement ("the Sales Agreement") with FBR Capital Markets & Co., Keefe, Bruyette & Woods, Inc. and Maxim Group LLC. Customers Bancorp has authorized the sale, at its discretion, of shares of its common stock, par value $1.00 per share, in an aggregate offering amount up to $50 million under the Sales Agreement. During third quarter 2016, Customers issued 219,386 shares in connection with this Sales Agreement receiving net proceeds of $5.5 million , net of offering costs. On April 28, 2016, Customers Bancorp issued 2,300,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, (the “Series E Preferred Stock”) par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series E Preferred Stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 6.45% from the original issue date to, but excluding, June 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.14% per annum. Customers received net proceeds of $55.6 million from the offering, after deducting offering costs. On January 29, 2016, Customers Bancorp issued 1,000,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, (the "Series D Preferred Stock") par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series D Preferred Stock 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. Customers received net proceeds of $24.1 million from the offering, after deducting offering costs. O n May 18, 2015, Customers Bancorp issued 2,300,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, (the "Series C Preferred Stock") par value $1.00 per share, at a price of $25.00 per share in a public offering. Dividends on the Series C Preferred Stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 7.00% from the original issue date to, but excluding, June 15, 2020, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.30% per annum. Customers received net proceeds of $55.6 million from the offering, after deducting offering costs. The net proceeds from the preferred and common stock offerings will be used for general corporate purposes, which may include working capital and the funding of organic growth at Customers Bank. Dividends on the Series C, Series D, Series E, and Series F Preferred Stock are not cumulative. If Customers Bancorp's board of directors or a duly authorized committee of the board does not declare a dividend on the Series C, Series D, Series E, and Series F Preferred Stock in respect of a dividend period, then no dividend shall be deemed to have accrued for such dividend period, be payable on the applicable dividend payment date, or be cumulative, and Customers Bancorp will have no obligation to pay any dividend for that dividend period, whether or not the board of directors or a duly authorized committee of the board declares a dividend on the Series C, Series D, Series E, and Series F Preferred Stock for any future dividend period. The Series C, Series D, Series E, and Series F Preferred Stock have no stated maturity, are not subject to any mandatory redemption, sinking fund or other similar provisions and will remain outstanding unless redeemed at Customers Bancorp's option. Customers Bancorp may redeem the Series C, Series D, Series E and Series F Preferred Stock at its option, at a redemption price equal to $25.00 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), (i) in whole or in part, from time to time, on any dividend payment date on or after June 15, 2020 for the Series C Preferred Stock, March 15, 2021 for the Series D Preferred Stock, June 15, 2021 for the Series E Preferred Stock, and December 15, 2021 for the Series F Preferred Stock and or (ii) in whole but not in part, within 90 days following the occurrence of a regulatory capital treatment event. Any redemption of the Series C, Series D, Series E, and Series F Preferred Stock is subject to prior approval of the Board of Governors of the Federal Reserve System. The Series C, Series D, Series E, and Series F Preferred Stock qualify as Tier 1 capital under regulatory capital guidelines. Except in limited circumstances, the Series C, Series D, Series E, and Series F Preferred Stock do not have any voting rights. On September 15, 2016, Customers made the following dividend payments to shareholders of record as of August 31, 2016: • a cash dividend on its Series C Preferred Stock of $0.4375 per share. • a cash dividend on its Series D Preferred Stock of $0.40625 per share. • a cash dividend on its Series E Preferred Stock of $0.403125 per share. On June 15, 2016, Customers made the following dividend payments to shareholders of record as of May 31, 2016: • a cash dividend on its Series C Preferred Stock of $0.4375 per share. • a cash dividend on its Series D Preferred Stock of $0.40625 per share. • a cash dividend on its Series E Preferred Stock of $0.210521 per share. On March 15, 2016, Customers made the following dividend payments to shareholders of record as of February 29, 2016: • a cash dividend on its Series C Preferred Stock of $0.4375 per share. • a cash dividend on its Series D Preferred Stock of $0.2076 per share. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Stock Options The following table summarizes stock option activity for the nine months ended September 30, 2016 . Number of Options Weighted- average Exercise Price Weighted- average Remaining Contractual Term in Years Aggregate Intrinsic Value (dollars in thousands) Outstanding at December 31, 2015 3,731,761 $ 14.33 Granted 20,000 25.18 Exercised (44,337 ) 10.28 $ 623 Forfeited (1,275 ) 18.72 Outstanding at September 30, 2016 3,706,149 $ 14.44 6.07 $ 39,745 Exercisable at September 30, 2016 1,095,912 $ 10.03 4.03 $ 16,584 Cash received from the exercise of options during the nine months ended September 30, 2016 was $0.5 million with a related tax benefit of $0.2 million . Restricted Stock Units There were 247,285 restricted stock units granted during the nine months ended September 30, 2016 . Of the aggregate restricted stock units granted, 86,654 were granted under the Bonus Recognition and Retention Program and are subject to five -year cliff vesting. The remaining 160,631 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 following table summarizes restricted stock unit activity for the nine months ended September 30, 2016 . Restricted Stock Units Weighted- average Grant- date Fair Value Outstanding and unvested at December 31, 2015 873,264 $ 14.24 Granted 247,285 23.85 Vested (97,664 ) 14.82 Forfeited (973 ) 19.86 Outstanding and unvested at September 30, 2016 1,021,912 $ 16.51 Total share-based compensation expense for the three months ended September 30, 2016 and 2015 was $1.7 million and $1.2 million , respectively. Total share-based compensation expense for the nine months ended September 30, 2016 and 2015 was $4.6 million and $3.6 million , respectively. Customers Bancorp has a policy that permits its directors to elect to receive shares of voting common stock in lieu of their cash retainers. During the nine months ended September 30, 2016 , Customers Bancorp issued 22,961 shares of voting common stock with a fair value of $0.6 million to directors as compensation for their services during the first nine months of 2016 . The fair values were determined based on the opening price of the common stock on the day the shares were issued. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2016 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | REGULATORY CAPITAL The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on Customers' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At September 30, 2016 and December 31, 2015 , the Bank and the 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 weighted 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, Tier 1 risk based, total risk based and Tier 1 leveraged ratios as set forth in the following table: Actual For Capital Adequacy Purposes (Minimum Plus Capital Buffer) To Be Well Capitalized Under Prompt Corrective Action Provisions (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2016: Common equity Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 553,391 7.117 % $ 398,497 5.125 % N/A N/A Customers Bank $ 772,484 9.971 % $ 397,045 5.125 % $ 503,569 6.500 % Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 770,070 9.904 % $ 515,130 6.625 % N/A N/A Customers Bank $ 772,484 9.971 % $ 513,253 6.625 % $ 619,777 8.000 % Total capital (to risk weighted assets) Customers Bancorp, Inc. $ 904,305 11.630 % $ 670,641 8.625 % N/A N/A Customers Bank $ 919,234 11.865 % $ 668,198 8.625 % $ 774,722 10.000 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 770,070 8.182 % $ 376,467 4.000 % N/A N/A Customers Bank $ 772,484 8.229 % $ 375,508 4.000 % $ 469,385 5.000 % As of December 31, 2015: Common equity Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 500,624 7.610 % $ 296,014 4.500 % N/A N/A Customers Bank $ 565,217 8.620 % $ 294,916 4.500 % $ 425,990 6.500 % Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 556,193 8.460 % $ 394,685 6.000 % N/A N/A Customers Bank $ 565,217 8.620 % $ 393,221 6.000 % $ 524,295 8.000 % Total capital (to risk weighted assets) Customers Bancorp, Inc. $ 698,323 10.620 % $ 526,247 8.000 % N/A N/A Customers Bank $ 710,864 10.850 % $ 524,295 8.000 % $ 655,369 10.000 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 556,193 7.160 % $ 310,812 4.000 % N/A N/A Customers Bank $ 565,217 7.300 % $ 309,883 4.000 % $ 387,353 5.000 % The risk-based capital rules adopted effective January 1, 2015 require that banks and holding companies maintain a "capital conservation buffer" of 250 basis points in excess of the "minimum capital ratio." 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. Effective January 1, 2016, the capital level required to avoid limitation on elective distributions applicable to the Bancorp and the Bank were as follows: (i) a common equity Tier 1 capital ratio of 5.125% ; (ii) a Tier 1 Risk based capital ratio of 6.625% ; and (iii) a Total Risk based capital ratio of 8.625% . 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 | 9 Months Ended |
Sep. 30, 2016 | |
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 Accounting Standards Codification ("ASC") Topic 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC Topic 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require 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 September 30, 2016 and December 31, 2015 : Cash and cash equivalents: The carrying amounts reported on the balance sheet for cash and cash equivalents approximate those assets’ fair values. These assets are classified as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Investment securities: The fair values of investment securities available for sale are determined by obtaining quoted market prices on nationally recognized and foreign securities exchanges (Level 1), matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices, or externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). These assets are classified as Level 1, 2, or 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The carrying amount of investments in FHLB, Federal Reserve Bank, and other restricted stock approximates fair value, and considers the limited marketability of such securities. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Consumer residential mortgage loans: The Bank generally estimates the fair values of residential mortgage loans held for sale based on commitments on hand from investors within the secondary market for loans with similar characteristics. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Commercial mortgage warehouse loans: The fair value of mortgage warehouse loans is the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The loan is used by mortgage companies as short-term bridge financing between the funding of mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not expected to be recognized because at inception of the transaction the underlying loans have already been sold to an approved investor. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of 20 days from purchase to sale. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. 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 classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans receivable, net of allowance for loan losses: The fair values of loans held for investment are estimated using discounted cash flows and market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Impaired loans: Impaired loans are those loans that are accounted for under ASC 310, Receivables , in which the Bank has measured impairment generally based on the fair value of the loan’s collateral or discounted cash flow analysis. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans or discounted cash flows based upon the expected proceeds. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Other real estate owned: The fair value of other real estate owned ("OREO") is determined by using appraisals, which may be discounted based on management’s review and changes in market conditions or sales agreements with third parties. All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice. Appraisals are certified to the Bank and performed by appraisers on the Bank’s approved list of appraisers. Evaluations are completed by a person independent of management. The content of the appraisal depends on the complexity of the property. Appraisals are completed on a “retail value” and an “as is value”. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. 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 classified as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. These liabilities are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Federal funds purchased: For these short-term instruments, the carrying amount is considered a reasonable estimate of fair value. These liabilities are classified as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Borrowings: Borrowings consist of long-term and short-term FHLB advances, 5 -year senior unsecured notes, and subordinated debt. For the short-term borrowings, the carrying amount is considered a reasonable estimate of fair value and is classified as a Level 1 fair value measurement. 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 classified 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 classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair values of the residential mortgage loan commitments are derived from the estimated fair values that can be generated when the underlying mortgage loan is sold in the secondary market. The Bank generally uses commitments on hand from third party investors to estimate an exit price, and adjusts for the probability of the commitment being exercised based on the Bank’s internal experience (i.e., pull-through rate). These assets and liabilities are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Derivative assets and liabilities are presented in "Other assets" and "Accrued interest payable and other liabilities" on the consolidated balance sheet. Off-balance-sheet financial instruments: The fair values of unused commitments to lend and standby letters of credit are considered to be the same as their contractual amounts. The following information should not be interpreted as an estimate of Customers' fair value in its entirety because fair value calculations are only provided for a limited portion of Customers' assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making these estimates, comparisons between Customer’s disclosures and those of other companies may not be meaningful. The estimated fair values of Customers' financial instruments at September 30, 2016 and December 31, 2015 were as follows: Fair Value Measurements at September 30, 2016 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 265,588 $ 265,588 $ 265,588 $ — $ — Investment securities, available for sale 530,896 530,896 16,736 514,160 — Loans held for sale 2,402,708 2,402,848 — 2,377,445 25,403 Loans receivable, net of allowance for loan losses 5,979,098 5,998,001 — — 5,998,001 FHLB, Federal Reserve Bank and other restricted stock 71,621 71,621 — 71,621 — Derivatives 18,789 18,789 — 18,704 85 Liabilities: Deposits $ 7,388,970 $ 7,398,218 $ 4,459,937 $ 2,938,281 $ — Federal funds purchased 52,000 52,000 52,000 — — FHLB advances 1,036,700 1,037,706 851,700 186,006 — Other borrowings 86,957 88,967 63,655 25,312 — Subordinated debt 108,758 111,650 — 111,650 — Derivatives 25,466 25,466 — 25,466 — Fair Value Measurements at December 31, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 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 86,457 93,804 68,867 24,937 — Subordinated debt 108,685 110,825 — 110,825 — Derivatives 13,932 13,932 — 13,932 — For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available-for-sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 254,320 $ — $ 254,320 Agency guaranteed commercial real estate mortgage-backed securities — 213,799 — 213,799 Corporate notes — 46,041 — 46,041 Equity securities 16,736 — — 16,736 Derivatives — 18,704 85 18,789 Loans held for sale – fair value option — 2,377,445 — 2,377,445 Total assets - recurring fair value measurements $ 16,736 $ 2,910,309 $ 85 $ 2,927,130 Liabilities Derivatives $ — $ 25,466 $ — $ 25,466 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $3,404 $ — $ — $ 4,929 $ 4,929 Other real estate owned — — 2,645 2,645 Total assets - nonrecurring fair value measurements $ — $ — $ 7,574 $ 7,574 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: Agency-guaranteed residential mortgage-backed securities $ — $ 298,104 $ — $ 298,104 Agency-guaranteed commercial real estate mortgage-backed securities — 202,870 — 202,870 Corporate notes — 40,067 — 40,067 Equity securities 19,212 — — 19,212 Derivatives — 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 $ — $ 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 The changes in Level 3 assets measured at fair value on a recurring basis for the three and nine months ended September 30, 2016 and 2015 are summarized as follows. Residential Mortgage Loan Commitments Three Months Ended September 30, 2016 2015 (amounts in thousands) Balance at June 30 $ 157 $ 71 Issuances 85 70 Settlements (157 ) (71 ) Balance at September 30 $ 85 $ 70 Residential Mortgage Loan Commitments Nine Months Ended September 30, 2016 2015 (amounts in thousands) Balance at December 31 $ 45 $ 43 Issuances 315 228 Settlements (275 ) (201 ) Balance at Balance at September 30 $ 85 $ 70 Customers' policy is to recognize transfers between fair value levels when events or circumstances warrant transfers. There were no transfers between levels during the three and nine months ended September 30, 2016 and 2015 . The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2016 and December 31, 2015 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. Quantitative Information about Level 3 Fair Value Measurements September 30, 2016 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts in thousands) Impaired loans $ 4,929 Collateral appraisal (1) Liquidation expenses (2) (8)% Other real estate owned 2,645 Collateral appraisal (1) Liquidation expenses (2) (8)% Residential mortgage loan commitments 85 Adjusted market bid Pull-through rate 90% Quantitative Information about Level 3 Fair Value Measurements December 31, 2015 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts 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% (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell based on a percentage of the value as determined by the appraisal. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers' derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers' known or expected cash receipts and its known or expected cash payments principally related to certain borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers' interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Customers' objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest-rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest-rate-risk management strategy. Interest-rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The 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. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuance of debt. The ineffective portion of the change in fair value of the derivatives is to be recognized directly in earnings. During the three and nine months ended September 30, 2016 and 2015 , 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 $2.4 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 September 30, 2016 and December 31, 2015 , 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 their respective risk management strategies (typically the loan customers will swap a floating-rate loan for a fixed-rate loan). The customer interest rate swaps are simultaneously offset by interest rate swaps that Customers executes with a third party in order to minimize interest rate risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting third-party market swaps are recognized directly in earnings. At September 30, 2016 , Customers had 74 interest rate swaps with an aggregate notional amount of $701.7 million related to this program. At December 31, 2015 , Customers had 62 interest rate swaps with an aggregate notional amount of $461.0 million related to this program. Customers enters into residential mortgage loan commitments in connection with its consumer mortgage banking activities to fund mortgage loans at specified rates and times in the future. These commitments are short-term in nature and generally expire in 30 to 60 days. The residential mortgage loan commitments that relate to the origination of mortgage loans that will be held for sale are considered derivative instruments under the applicable accounting guidance and are reported at fair value, with changes in fair value recorded directly in earnings. At September 30, 2016 and December 31, 2015 , Customers had an outstanding notional balance of residential mortgage loan commitments of $5.2 million and $2.8 million , respectively. Customers has also purchased and sold credit derivatives to either hedge or participate in the performance risk associated with some of its counterparties. These derivatives are not designated as hedging instruments and are reported at fair value, with changes in fair value reported directly in earnings. At September 30, 2016 and December 31, 2015 , Customers had an outstanding notional balances of credit derivatives of $35.7 million and $19.3 million , respectively. Fair Value of Derivative Instruments on the Balance Sheet The following table presents the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of September 30, 2016 and December 31, 2015 . September 30, 2016 Derivative Assets Derivative Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ — Other liabilities $ 5,695 Total $ — $ 5,695 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 18,453 Other liabilities $ 19,739 Credit contracts Other assets 251 Other liabilities 32 Residential mortgage loan commitments Other assets 85 Other liabilities — Total $ 18,789 $ 19,771 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 Effect of Derivative Instruments on Comprehensive Income The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, 2016 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 $ 1,737 Credit contracts Other non-interest income (15 ) Residential mortgage loan commitments Mortgage loan and banking income (71 ) Total $ 1,651 Three Months Ended September 30, 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 $ 192 Credit contracts Other non-interest income 51 Residential mortgage loan commitments Mortgage loan and banking income (1 ) Total $ 242 Nine Months Ended September 30, 2016 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 $ 1,250 Credit contracts Other non-interest income 257 Residential mortgage loan commitments Mortgage loan and banking income 41 Total $ 1,548 Nine Months Ended September 30, 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 $ 902 Credit contracts Other non-interest income 15 Residential mortgage loan commitments Mortgage loan and banking income 27 Total $ 944 Three Months Ended September 30, 2016 Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 556 Interest expense $ (703 ) Three Months Ended September 30, 2015 Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ (1,464 ) Interest expense $ — (1) Amounts presented are net of taxes Nine Months Ended September 30, 2016 Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) (amounts in thousands) Derivative in cash flow hedging relationships: Interest rate swaps $ (1,577 ) Interest expense $ (1,306 ) Nine Months Ended September 30, 2015 Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) (amounts in thousands) Derivative in cash flow hedging relationships: Interest rate swaps $ (2,353 ) Interest expense $ — 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 September 30, 2016 , 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 $26.5 million . In addition, Customers has minimum collateral posting thresholds with certain of these counterparties and at September 30, 2016 had posted $27.7 million of cash as collateral. Customers records cash posted as collateral as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of other assets. Disclosures about Offsetting Assets and Liabilities The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps 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 September 30, 2016 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ — $ — $ — $ — $ — $ — Offsetting of Financial Liabilities and Derivative Liabilities At September 30, 2016 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 25,434 $ — $ 25,434 $ — $ 25,434 $ — Offsetting of Financial Assets and Derivative Assets At December 31, 2015 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ — $ — $ — $ — $ — $ — Offsetting of Financial Liabilities and Derivative Liabilities At December 31, 2015 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Pledged (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 13,932 $ — $ 13,932 $ — $ 13,932 $ — |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS Customers has historically operated under one business segment, "Community Banking." However, beginning in third quarter 2016, Customers revised its segment financial reporting to reflect the manner in which its chief operating decision makers (our Chief Executive Officer and Board of Directors) have begun allocating resources and assessing performance subsequent to Customers' acquisition of the Disbursement business from Higher One and the combination of that business with the BankMobile technology platform late in second quarter 2016. Management has determined that Customers' operations consist of two reportable segments - Community Business Banking and BankMobile. Each segment generates revenues, manages risk, and offers distinct products and services to targeted customers through different delivery channels. The strategy, marketing, and analysis of these segments vary considerably. The Community Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island and New Hampshire through a single point of contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Lending and deposit gathering activities are focused primarily on privately held businesses, high net worth families, selected commercial real estate lending, and commercial mortgage companies. Revenues are generated primarily through net interest income (the difference between interest earned on loans, investments, and other interest earning assets and interest paid on deposits and other borrowed funds) and other non-interest income, such as mortgage warehouse transactional fees and bank owned life insurance. The BankMobile segment provides state of the art high tech digital banking and disbursement services to consumers, students, and the "under banked" nationwide. BankMobile, as a division of Customers Bank, is a full service bank that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Revenues are currently being generated primarily through interchange and card revenue, deposit and wire transfer fees and university fees. The following tables present the operating results for Customers' reportable business segments for the three and nine months ended September 30, 2016. Customers has presented the financial information and disclosures for prior periods to reflect the segment disclosures as if they had been in effect for the periods presented. The segment financial results include directly attributable revenues and expenses. Corporate overhead costs are assigned to the Community Business Banking segment as those expenses are expected to continue following the planned disposition of BankMobile. Similarly, the preferred stock dividends have been allocated in their entirety to the Community Business Banking segment. The tax benefit assigned to BankMobile was based on an estimated effective tax rate of 38% . Three Months Ended September 30, 2016 Community Business Banking BankMobile Consolidated Interest income $ 82,828 $ 1,384 (1 ) $ 84,212 Interest expense 19,620 7 19,627 Net interest income 63,208 1,377 64,585 Provision for loan losses (162 ) 250 88 Non-interest income 11,121 16,365 27,486 Non-interest expense 36,864 19,354 56,218 Income (loss) before income tax expense 37,627 (1,862 ) 35,765 Income tax expense/(benefit) 15,284 (708 ) 14,576 Net income (loss) 22,343 (1,154 ) 21,189 Preferred stock dividends 2,552 — 2,552 Net income (loss) available to common shareholders $ 19,791 $ (1,154 ) $ 18,637 Three Months Ended September 30, 2015 Community Business Banking BankMobile Consolidated Interest income $ 62,153 $ 1,583 (1 ) $ 63,736 Interest expense 13,795 7 13,802 Net interest income 48,358 1,576 49,934 Provision for loan losses 2,094 — 2,094 Non-interest income 6,160 11 6,171 Non-interest expense 28,467 1,840 30,307 Income (loss) before income tax expense 23,957 (253 ) 23,704 Income tax expense/(benefit) 8,511 (96 ) 8,415 Net income (loss) 15,446 (157 ) 15,289 Preferred stock dividends 980 — 980 Net income (loss) available to common shareholders $ 14,466 $ (157 ) $ 14,309 (1) - Amounts reported include funds transfer pricing of $1.4 million and $1.6 million , respectively, for the three months ended September 30, 2016 and 2015 credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no cost deposits. Nine Months Ended September 30, 2016 Community Business Banking BankMobile Consolidated Interest income $ 234,513 $ 4,418 (1 ) $ 238,931 Interest expense 53,539 22 53,561 Net interest income 180,974 4,396 185,370 Provision for loan losses 2,605 249 2,854 Non-interest income 22,241 18,996 41,237 Non-interest expense 101,053 27,253 128,306 Income (loss) before income tax expense 99,557 (4,110 ) 95,447 Income tax expense/(benefit) 38,691 (1,562 ) 37,129 Net income (loss) 60,866 (2,548 ) 58,318 Preferred stock dividends 5,900 — 5,900 Net income (loss) available to common shareholders $ 54,966 $ (2,548 ) $ 52,418 As of September 30, 2016 Goodwill and other intangibles $ 3,642 $ 13,282 $ 16,924 Total assets $ 9,532,281 $ 70,329 $ 9,602,610 Total deposits $ 6,855,788 $ 533,182 $ 7,388,970 Nine Months Ended September 30, 2015 Community Business Banking BankMobile Consolidated Interest income $ 177,215 $ 4,922 (1 ) $ 182,137 Interest expense 39,299 16 39,315 Net interest income 137,916 4,906 142,822 Provision for loan losses 14,393 — 14,393 Non-interest income 18,272 25 18,297 Non-interest expense 78,344 5,088 83,432 Income (loss) before income tax expense 63,451 (157 ) 63,294 Income tax expense/(benefit) 22,557 (60 ) 22,497 Net income (loss) 40,894 (97 ) 40,797 Preferred stock dividends 1,487 — 1,487 Net income (loss) available to common shareholders $ 39,407 $ (97 ) $ 39,310 As of September 30, 2015 Goodwill and other intangibles $ 3,654 $ — $ 3,654 Total assets $ 7,593,556 $ 2,620 $ 7,596,176 Total deposits $ 5,423,717 $ 361,477 $ 5,785,194 (1) - Amounts reported include funds transfer pricing of $4.4 million and $4.9 million , respectively, for the nine months ended September 30, 2016 and 2015 credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no cost deposits. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On November 4, 2016, Customers entered into an underwriting agreement (the "Underwriting Agreement") with FBR Capital Markets & Co. and Keefe, Bruyette & Woods, Inc., as representatives of the underwriters named therein (collectively, the "Underwriters"), relating to the offer and sale in an underwritten offering of 2,100,000 shares of the Customer's common stock. The shares of common stock were sold at a public offering price of $25.00 per share. The Underwriters have agreed to purchase the shares from Customers at a discount of $0.75 per share. Customers has granted the Underwriters a 30 -day option to purchase up to an additional 315,000 shares of common stock at the public offering price less the underwriting discount solely to cover over-allotments, if any. Customers expects to receive net proceeds from this offering of approximately $50.8 million (or approximately $58.4 million if the underwriters exercise their option to purchase additional shares in full), after deducting the underwriting discount and estimated offering expenses payable by us. The offering is expected to close on or about November 9, 2016, subject to customary closing conditions. |
Significant Accounting Polici24
Significant Accounting Policies and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim unaudited consolidated financial statements of Customers Bancorp and subsidiaries have been prepared pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2015 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2015 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2015 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 26, 2016 . That Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Investment Securities; Loan Accounting Framework; Allowance for Loan Losses; Investments in FHLB, Federal Reserve Bank, and other restricted stock; Other Real Estate Owned; FDIC Loss Sharing Receivable and Clawback Liability; Bank-Owned Life Insurance; Bank Premises and Equipment; Treasury Stock; Income Taxes; Share-Based Compensation; Derivative Instruments and Hedging; Comprehensive Income; and Earnings per Share. Certain prior period amounts have been reclassified to conform to current period presentation. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Presented below are Customers Bancorp's significant accounting policies that were updated during the three or nine months ended September 30, 2016 to address new or evolving activities and recently issued accounting standards and updates that were issued or effective during 2016 . |
Restrictions on Cash and Amounts due from Banks | Restrictions on Cash and Amounts due from Banks Customers Bank is required to maintain average balances of cash on hand or with the Federal Reserve Bank at prescribed levels. |
Business Combinations | Business Combinations Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification (ASC) 805, Business Combinations . Under the acquisition method, identifiable assets acquired and liabilities assumed are measured at their fair values as of that date, and are recognized separately from goodwill. Results of operations of the acquired entity are included in the consolidated statement of income from the date of acquisition. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of cost over the identifiable net assets of businesses acquired. Other intangible assets represent purchased assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights. Intangible assets that have finite lives, such as customer relationship intangibles, core deposit intangibles, and non-compete agreements, are amortized over their estimated useful lives and subject to periodic impairment testing. Goodwill and other intangible assets recognized as part of the Disbursement business acquisition are based on a preliminary allocation of the purchase price and subject to change for up to one year following the date of the acquisition closing. Goodwill and other intangible assets are reviewed for impairment annually as of October 31 and between annual tests when events and circumstances indicate that impairment may have occurred. Impairment is a condition that exists when the carrying amount of goodwill or other intangible asset exceeds its implied fair value. A qualitative factor test can be performed to determine whether it is necessary to perform a two-step quantitative 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. |
Segment Information | Segment Information In connection with the acquisition of the Disbursement business from Higher One and the combination of that business with the BankMobile technology platform late in second quarter 2016, Customers' chief operating decision makers, our Chief Executive Officer and Board of Directors, began allocating resources and assessing performance for two distinct business segments, "Community Business Banking" and "BankMobile." The Community Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island and New Hampshire through a single point of contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. The BankMobile segment provides state of the art high tech digital banking and disbursement services to consumers, students, and the "under banked" nationwide. BankMobile, as a division of Customers Bank, is a full service bank that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Prior to third quarter 2016, Customers operated in one business segment, “Community Banking.” |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-17— Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control . The amendments in this ASU do not change the characteristics of a primary beneficiary under current guidance. Namely, that a primary beneficiary of a Variable Interest Entity (VIE) has: (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. If a reporting entity satisfies the first characteristic, (i.e. it is the single decision maker of a VIE), the amendments in this ASU require that reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, to include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. Therefore, under the amendments, a single decision maker is not required to consider indirect interests held through related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. Instead, a single decision maker is required to include those interests on a proportionate basis consistent with indirect interests held through other related parties. If, after performing that assessment, a reporting entity that is the single decision maker of a VIE concludes that it does not have the characteristics of a primary beneficiary, the amendments continue to require that reporting entity to evaluate whether it and one or more of its related parties under common control, as a group, have the characteristics of a primary beneficiary. If the single decision maker and its related parties that are under common control, as a group, have the characteristics of a primary beneficiary, then the party within the related party group that is most closely associated with the VIE is the primary beneficiary. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Customers is currently evaluating the impact of this ASU on its financial condition, results of operations and consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16—Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . This ASU requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this ASU eliminate the exception for an intra-entity transfer of an asset other than inventory. Two common examples of assets included in the scope of this ASU are intellectual property and property, plant, and equipment. Intra-entity transfers of inventory will continue to follow existing US GAAP. The amendments in this ASU do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. For public business entities, the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. Customers is currently evaluating the impact of this ASU on its financial condition, results of operations and consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments . This ASU is aimed at reducing the existing diversity in practice with regards to the following specific items in the Statement of Cash Flows: 1. Cash payments for debt prepayment or extinguishment costs will be classified in financing activities. 2. Upon settlement of zero-coupon bonds and bonds with insignificant cash coupons, the portion of the payment attributable to imputed interest will be classified as an operating activity, while the portion of the payment attributable to principal will be classified as a financing activity. 3. Cash paid by an acquirer that isn’t soon after a business combination for the settlement of a contingent consideration liability will be separated between financing activities and operating activities. Cash payments up to the amount of the contingent consideration liability recognized at the acquisition date will be classified in financing activities; any excess will be classified in operating activities. Cash paid soon after the business combination will be classified in investing activities. 4. Cash proceeds received from the settlement of insurance claims will be classified on the basis of the related insurance coverage (that is, the nature of the loss). Cash proceeds from lump-sum settlements will be classified based on the nature of each loss included in the settlement. 5. Cash proceeds received from the settlement of bank-owned life insurance (BOLI) policies will be classified as cash inflows from investing activities. Cash payments for premiums on BOLI may be classified as cash outflows for investing, operating, or a combination of both. 6. A transferor’s beneficial interest obtained in a securitization of financial assets will be disclosed as a noncash activity, and cash received from beneficial interests will be classified in investing activities. 7. Distributions received from equity method investees will be classified using either a cumulative earnings approach or a look-through approach as an accounting policy election. The ASU contains additional guidance clarifying when an entity should separate cash receipts and cash payments and classify them into more than one class of cash flows (including when reasonable judgment is required to estimate and allocate cash flows) versus when an entity should classify the aggregate amount into one class of cash flows on the basis of predominance. F or public business entities, the amendments are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Customers is currently evaluating the impact of this ASU on the presentation of its statement of cash flows. In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in ealier recognition of credit losses. The ASU also requires new disclosures for financial assets measured at amortized cost, loans, and available for sale debt securities. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Customers is currently evaluating the impact of this ASU on its financial condition, results of operations and consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09 , Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some areas for simplification apply only to non-public entities. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In addition, the amendments in this ASU eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. Customers is currently evaluating the impact of this ASU on its financial condition and results of operations. In March 2016, the FASB issued ASU No. 2016-07, Investments - Equity Method and Joint Ventures. To simplify the accounting for equity method investments, the amendments in the ASU eliminate the requirement in Topic 323, Investments - Equity Method and Joint Venture, that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The ASU is effective for all entities for fiscal years beginning after December 15, 2016, and 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 March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments. Topic 815, Derivatives and Hedging, requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amendments in this ASU clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Namely, this decision sequence requires that an entity consider whether: 1. the payoff is adjusted based on changes in an index; 2. the payoff is indexed to an underlying other than interest rates or credit risk; 3. the debt involves a substantial premium or discount; and 4. the call (put) option is contingently exercisable. The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and 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 March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships . The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and 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 March 2016, the FASB issued ASU No. 2016-04, Liabilities - Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products . When an entity sells a prepaid stored-value product (such as gift cards, telecommunication cards, and traveler’s checks), it recognizes a financial liability for its obligation to provide the product holder with the ability to purchase goods or services at a third-party merchant. When a prepaid stored-value product goes unused wholly or partially for an indefinite time period, the amount that remains on the product is referred to as breakage. There currently is diversity in the methodology used to recognize breakage. Subtopic 405-20, Extinguishment of Liabilities, includes derecognition guidance for both financial liabilities and nonfinancial liabilities, and Topic 606, Revenue from Contracts with Customers, includes authoritative breakage guidance but excludes financial liabilities. The amendments in this ASU provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and 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 February 2016, the FASB issued 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 lessees. 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 this ASU on its financial condition and results of operations. In January 2016, the FASB issued 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 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 FASB issued ASU 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 was 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 the 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 was effective for interim and annual periods beginning after December 15, 2015. The adoption of these ASUs on January 1, 2016 resulted in a reclassification adjustment, which reduced "Other borrowings" by $1.8 million and "Subordinated debt" by $1.3 million with a corresponding decrease in "Other assets" of $3.1 million as of December 31, 2015. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. The guidance in this ASU affects reporting entities that must determine whether they should consolidate certain legal entities. This ASU modifies the evaluation of whether limited partnerships or similar legal entities are variable interest entities (VIEs) or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The guidance in this ASU was 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 - 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 ASU was effective in first quarter 2016. 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: 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 was effective in first quarter 2016. 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 2014-13 , Consolidation: 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 was effective in first quarter 2016. 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 was effective in first quarter 2016. 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: 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 the adoption of this ASU to have a significant impact on its financial condition or results of operations. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net ). While the ASU does not change the core provisions of Topic 606, it clarifies the implementation guidance on principal versus agent considerations. Namely, the ASU clarifies and offers guidance to help determine when the reporting entity is providing goods or services to a customer itself (i.e., the entity is a principal), or merely arranging for that good or service to be provided by the other party (i.e., the reporting entity is an agent). If the entity is a principal, it recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When the reporting entity is an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist in determining whether the Control criteria are met. If a contract with a customer includes more than one specified good or service, an entity could be a principal for some specified goods or services and an agent for others. The effective date and transition requirements in this ASU are the same as the effective date and transition requirements for ASU No. 2014-09, Revenue from Contracts with Customers. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In April 2016, the FASB issued ASU No. 2016-10 , Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. This ASU clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The ASU includes targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. The ASU seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The amendments in this ASU affect the guidance in ASU 2014-09, Revenue from Contracts with Customers, which will be effective for fiscal years beginning after December 31, 2017 for public entities. The effective date and transition requirements for the amendments in this ASU are the same as those in ASU 2014-09. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In May 2016, the FASB issued ASU No. 2016-12 , Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. This ASU clarifies certain aspects of Topic 606 guidance as follows: • The objective of the collectibility assessment is to determine whether the contract is valid and represents a substantive transaction on the basis of whether a customer has the ability and intention to pay the promised consideration in exchange for the goods or services transferred. • An entity can recognize revenue in the amount of consideration received when it has transferred control of the goods or services, has no additional obligation to transfer goods or services, and the consideration received is nonrefundable. • A reporting entity is permitted to make the accounting policy election to exclude amounts collected from customers for all sales taxes from the transaction price. • The measurement date is specified as being the contract inception, and variable consideration guidance applies only to variability resulting from reasons other than the form of the consideration. • As a practical expedient, a reporting entity is permitted to reflect the aggregate effect of all modifications that occur before the beginning of the earliest period presented in accordance with Topic 606 when identifying the satisfied and unsatisfied performance obligations, determining the transaction price, and allocating the transaction price to the satisfied and unsatisfied performance obligations. • The ASU clarifies that a completed contract for purposes of transition is a contract for which all (or substantially all) of the revenue was recognized under legacy GAAP before the date of initial application. Accounting for elements of a contract that do not affect revenue |
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 Accounting Standards Codification ("ASC") Topic 825, Financial Instruments , requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC Topic 820, Fair Value Measurements and Disclosures , as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require 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 loans that are accounted for under ASC 310, Receivables , in which the Bank has measured impairment generally based on the fair value of the loan’s collateral or discounted cash flow analysis. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans or discounted cash flows based upon the expected proceeds. These assets are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. |
Derivatives | Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Customers' derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers' known or expected cash receipts and its known or expected cash payments principally related to certain borrowings. Customers also has interest-rate derivatives resulting from a service provided to certain qualifying customers, and therefore, they are not used to manage Customers' interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest Rate Risk Customers' objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest-rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest-rate-risk management strategy. Interest-rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The 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. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuance of debt. The ineffective portion of the change in fair value of the derivatives is to be recognized directly in earnings. |
Acquisition Activity (Tables)
Acquisition Activity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Amounts Recorded on the Balance Sheet | The following table presents the fair values of the assets acquired and liabilities assumed as of June 15, 2016: (amounts in thousands) June 15, 2016 Fair value of assets acquired: Developed software $ 27,400 Other intangible assets 9,300 Accounts receivable 2,784 Prepaid expenses 1,180 Fixed assets, net 229 Total assets acquired 40,893 Fair value of liabilities assumed: Other liabilities 5,531 Deferred revenue 2,655 Total liabilities assumed 8,186 Net assets acquired $ 32,707 Transaction cash consideration (1) $ 37,000 Goodwill recognized $ 4,293 (1) Includes $10 million payable to Higher One upon each of the first and second anniversary of the transaction closing, which has been placed into an escrow account with a third party (aggregate amount of $20 million ) |
Changes in Accumulated Other 26
Changes in Accumulated Other Comprehensive Income (Loss) By Component (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (loss) | The following tables present the changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, 2016 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Gain (Loss) on Cash Flow Hedge Total Balance - June 30, 2016 $ 4,895 $ (768 ) $ 4,127 $ (4,554 ) $ (427 ) Other comprehensive income (loss) before reclassifications 15 190 205 556 761 Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) 1 — 1 439 440 Net current-period other comprehensive income 16 190 206 995 1,201 Balance - September 30, 2016 $ 4,911 $ (578 ) $ 4,333 $ (3,559 ) $ 774 Nine Months Ended September 30, 2016 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Loss on Cash Flow Hedge Total Balance - December 31, 2015 $ (4,602 ) $ (584 ) $ (5,186 ) $ (2,798 ) $ (7,984 ) Other comprehensive income (loss) before reclassifications 9,529 6 9,535 (1,577 ) 7,958 Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) (16 ) — (16 ) 816 800 Net current-period other comprehensive income (loss) 9,513 6 9,519 (761 ) 8,758 Balance - September 30, 2016 $ 4,911 $ (578 ) $ 4,333 $ (3,559 ) $ 774 (1) All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. (2) Reclassification amounts for available-for-sale securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. Reclassification amounts for cash flow hedges are reported as interest expense on FHLB advances on the consolidated statements of income. Three Months Ended September 30, 2015 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Loss on Cash Flow Hedge Total Balance - June 30, 2015 $ (1,825 ) $ (136 ) $ (1,961 ) $ (2,153 ) $ (4,114 ) Other comprehensive income (loss) before reclassifications 598 (435 ) 163 (1,464 ) (1,301 ) Amounts reclassified from accumulated other comprehensive income (loss) to net income (2) 10 — 10 — 10 Net current-period other comprehensive income (loss) 608 (435 ) 173 (1,464 ) (1,291 ) Balance - September 30, 2015 $ (1,217 ) $ (571 ) $ (1,788 ) $ (3,617 ) $ (5,405 ) Nine Months Ended September 30, 2015 Available-for-sale-securities (amounts in thousands) Unrealized Gains (Losses) Foreign Currency Items Total Unrealized Gains (Losses) Unrealized Loss on Cash Flow Hedge Total Balance - December 31, 2014 $ 1,156 $ (14 ) $ 1,142 $ (1,264 ) $ (122 ) Other comprehensive (loss) before reclassifications (2,426 ) (557 ) (2,983 ) (2,353 ) (5,336 ) Amounts reclassified from accumulated other comprehensive loss to net income (2) 53 — 53 — 53 Net current-period other comprehensive income (loss) (2,373 ) (557 ) (2,930 ) (2,353 ) (5,283 ) Balance - September 30, 2015 $ (1,217 ) $ (571 ) $ (1,788 ) $ (3,617 ) $ (5,405 ) (1) All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. (2) Reclassification amounts are reported as gain (loss) on sale of investment securities on the consolidated statements of income. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share | The following are the components and results of Customers' earnings per common share calculation for the periods presented. Three Months Ended Nine Months Ended 2016 2015 2016 2015 (amounts in thousands, except share and per share data) Net income available to common shareholders $ 18,637 $ 14,309 $ 52,418 $ 39,310 Weighted-average number of common shares outstanding - basic 27,367,551 26,872,787 27,131,960 26,830,341 Share-based compensation plans 1,657,818 1,538,436 1,595,022 1,453,378 Warrants 124,365 329,906 243,531 315,276 Weighted-average number of common shares - diluted 29,149,734 28,741,129 28,970,513 28,598,995 Basic earnings per common share $ 0.68 $ 0.53 $ 1.93 $ 1.47 Diluted earnings per common share $ 0.64 $ 0.50 $ 1.81 $ 1.37 |
Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following is a summary of securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive for the periods presented. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Anti-dilutive securities: Share-based compensation awards 616,995 607,678 616,995 608,778 Warrants 52,242 52,242 52,242 52,242 Total anti-dilutive securities 669,237 659,920 669,237 661,020 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Approximate Fair Value of Investment Securities | The amortized cost and approximate fair value of investment securities as of September 30, 2016 and December 31, 2015 are summarized in the tables below: September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 251,755 $ 2,890 $ (325 ) $ 254,320 Agency-guaranteed commercial real estate mortgage-backed securities 204,769 9,030 — 213,799 Corporate notes (1) 44,930 1,111 — 46,041 Equity securities (2) 22,508 — (5,772 ) 16,736 $ 523,962 $ 13,031 $ (6,097 ) $ 530,896 (1) Includes subordinated debt issued by other bank holding companies. (2) Consists of equity securities issued by a foreign entity. December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 299,392 $ 1,453 $ (2,741 ) $ 298,104 Agency-guaranteed commercial real estate mortgage-backed securities 206,719 — (3,849 ) 202,870 Corporate notes (1) 39,925 320 (178 ) 40,067 Equity securities (2) 22,514 — (3,302 ) 19,212 $ 568,550 $ 1,773 $ (10,070 ) $ 560,253 (1) Includes subordinated debt issued by other bank holding companies. (2) Consists primarily of equity securities issued by a foreign entity. |
Statement of Proceeds from Sale of Available for Sale Investment Securities | The following table presents proceeds from the sale of available-for-sale investment securities and gross gains and gross losses realized on those sales for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (amounts in thousands) Proceeds from sale of available-for-sale securities $ 5 $ 314 $ 2,853 $ 806 Gross gains $ — $ — $ 26 $ — Gross losses (1 ) (16 ) (1 ) (85 ) Net gains (losses) $ (1 ) $ (16 ) $ 25 $ (85 ) |
Summary of Available-for-Sale Debt Securities by Stated Maturity | The following table presents available-for-sale debt securities by stated maturity. Debt securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date: September 30, 2016 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 37,930 38,783 Due after ten years 7,000 7,258 Agency-guaranteed residential mortgage-backed securities 251,755 254,320 Agency-guaranteed commercial real estate mortgage-backed securities 204,769 213,799 Total debt securities $ 501,454 $ 514,160 |
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 at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (amounts in thousands) Available for Sale: Agency-guaranteed residential mortgage-backed securities $ 2,388 $ (1 ) $ 32,529 $ (324 ) $ 34,917 $ (325 ) Equity securities (2) — — 16,736 (5,772 ) 16,736 (5,772 ) Total $ 2,388 $ (1 ) $ 49,265 $ (6,096 ) $ 51,653 $ (6,097 ) 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: Agency-guaranteed residential mortgage-backed securities $ 102,832 $ (535 ) $ 57,357 $ (2,206 ) 160,189 $ (2,741 ) Agency-guaranteed commercial real estate mortgage-backed securities 202,870 (3,849 ) — — 202,870 (3,849 ) Corporate notes (1) 9,748 (178 ) — — 9,748 (178 ) Equity securities (2) 19,206 (3,301 ) 6 (1 ) 19,212 (3,302 ) Total $ 334,656 $ (7,863 ) $ 57,363 $ (2,207 ) $ 392,019 $ (10,070 ) (1) Includes subordinated debt issued by other bank holding companies. (2) Consists primarily of equity securities in a foreign entity. |
Loans Held for Sale (Tables)
Loans Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables Held-for-sale [Abstract] | |
Composition of Loans Held for Sale | The composition of loans held for sale as of September 30, 2016 and December 31, 2015 was as follows: September 30, 2016 December 31, 2015 (amounts in thousands) Commercial loans: Mortgage warehouse loans at fair value $ 2,373,877 $ 1,754,950 Multi-family loans at lower of cost or fair value 25,263 39,257 Commercial loans held for sale 2,399,140 1,794,207 Consumer loans: Residential mortgage loans at fair value 3,568 2,857 Loans held for sale $ 2,402,708 $ 1,797,064 |
Loans Receivable and Allowanc30
Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Loans Receivable | The following table presents loans receivable as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (amounts in thousands) Commercial: Multi-family $ 3,150,298 $ 2,909,439 Commercial and industrial (including owner occupied commercial real estate) 1,296,721 1,111,400 Commercial real estate non-owner occupied 1,151,099 956,255 Construction 83,835 87,240 Total commercial loans 5,681,953 5,064,334 Consumer: Residential real estate 227,122 271,613 Manufactured housing 104,404 113,490 Other 3,420 3,708 Total consumer loans 334,946 388,811 Total loans receivable 6,016,899 5,453,145 Deferred costs and unamortized premiums, net 96 334 Allowance for loan losses (37,897 ) (35,647 ) Loans receivable, net of allowance for loan losses $ 5,979,098 $ 5,417,832 |
Loans Receivable by Loan Type and Performance Status | The following tables summarize loans receivable by loan type and performance status as of September 30, 2016 and December 31, 2015 : September 30, 2016 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 3,147,521 $ 2,777 $ 3,150,298 Commercial and industrial — — — 4,900 899,200 1,150 905,250 Commercial real estate - owner occupied — — — 2,071 376,482 12,918 391,471 Commercial real estate - non-owner occupied — — — 2,152 1,142,024 6,923 1,151,099 Construction — — — — 83,835 — 83,835 Residential real estate 1,182 — 1,182 2,238 215,766 7,936 227,122 Manufactured housing (5) 2,958 2,543 5,501 1,992 93,784 3,127 104,404 Other consumer 16 — 16 43 3,118 243 3,420 Total $ 4,156 $ 2,543 $ 6,699 $ 13,396 $ 5,961,730 $ 35,074 $ 6,016,899 December 31, 2015 30-89 Days Past Due (1) 90 Days Or More Past Due(1) Total Past Due (1) Non- Accrual Current (2) Purchased- Credit- Impaired Loans (3) Total Loans (4) (amounts in thousands) Multi-family $ — $ — $ — $ — $ 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 (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 subject to cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. |
Schedule of Allowance for Loan Losses | The changes in the allowance for loan losses for the three and nine months ended September 30, 2016 and 2015 and the loans and allowance for loan losses by loan class based on impairment evaluation method as of September 30, 2016 and December 31, 2015 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 for periods prior to the termination of the FDIC loss sharing arrangements. Three Months Ended September 30, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, June 30, 2016 $ 12,368 $ 10,370 $ 1,582 $ 8,483 $ 1,209 $ 3,535 $ 440 $ 110 $ 38,097 Charge-offs — (237 ) — (140 ) — (43 ) — (246 ) (666 ) Recoveries — 62 — — 8 298 — 10 378 Provision for loan losses (695 ) 832 305 3 (168 ) (411 ) (18 ) 240 88 Ending Balance, September 30, 2016 $ 11,673 $ 11,027 $ 1,887 $ 8,346 $ 1,049 $ 3,379 $ 422 $ 114 $ 37,897 Nine Months Ended September 30, 2016 Ending Balance, December 31, 2015 $ 12,016 $ 8,864 $ 1,348 $ 8,420 $ 1,074 $ 3,298 $ 494 $ 133 $ 35,647 Charge-offs — (774 ) — (140 ) — (456 ) — (478 ) (1,848 ) Recoveries — 173 — 8 465 299 — 10 955 Provision for loan losses (343 ) 2,764 539 58 (490 ) 238 (72 ) 449 3,143 Ending Balance, September 30, 2016 $ 11,673 $ 11,027 $ 1,887 $ 8,346 $ 1,049 $ 3,379 $ 422 $ 114 $ 37,897 As of September 30, 2016 Loans: Individually evaluated for impairment $ 4,538 $ 30,275 $ 10,523 $ 10,659 $ — $ 3,999 $ 9,091 $ 42 $ 69,127 Collectively evaluated for impairment 3,142,983 873,825 368,030 1,133,517 83,835 215,187 92,186 3,135 5,912,698 Loans acquired with credit deterioration 2,777 1,150 12,918 6,923 — 7,936 3,127 243 35,074 $ 3,150,298 $ 905,250 $ 391,471 $ 1,151,099 $ 83,835 $ 227,122 $ 104,404 $ 3,420 $ 6,016,899 Allowance for loan losses: Individually evaluated for impairment $ 195 $ 3,119 $ — $ 27 $ — $ 63 $ — $ — $ 3,404 Collectively evaluated for impairment 11,478 7,771 1,857 4,581 1,049 2,515 95 57 29,403 Loans acquired with credit deterioration — 137 30 3,738 — 801 327 57 5,090 $ 11,673 $ 11,027 $ 1,887 $ 8,346 $ 1,049 $ 3,379 $ 422 $ 114 $ 37,897 Three Months Ended September 30, 2015 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, June 30, 2015 $ 8,734 $ 14,062 $ 3,651 $ 6,310 $ 844 $ 3,455 $ 316 $ 119 $ 37,491 Charge-offs — (5,559 ) (35 ) (82 ) — (256 ) — — (5,932 ) Recoveries — 248 13 — 8 — — 6 275 Provision for loan losses 472 1,678 (370 ) (109 ) 258 (5 ) 70 (5 ) 1,989 Ending Balance, September 30, 2015 $ 9,206 $ 10,429 $ 3,259 $ 6,119 $ 1,110 $ 3,194 $ 386 $ 120 $ 33,823 Nine Months Ended September 30, 2015 Ending Balance, December 31, 2014 $ 8,493 $ 4,784 $ 4,336 $ 9,198 $ 1,047 $ 2,698 $ 262 $ 114 $ 30,932 Charge-offs — (6,793 ) (378 ) (327 ) (1,064 ) (282 ) — (36 ) (8,880 ) Recoveries — 351 14 — 195 572 — 91 1,223 Provision for loan losses 713 12,087 (713 ) (2,752 ) 932 206 124 (49 ) 10,548 Ending Balance, September 30, 2015 $ 9,206 $ 10,429 $ 3,259 $ 6,119 $ 1,110 $ 3,194 $ 386 $ 120 $ 33,823 As of December 31, 2015 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 |
Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans | The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for loans that are individually evaluated for impairment as of September 30, 2016 and December 31, 2015 and the average recorded investment and interest income recognized for the three and nine months ended September 30, 2016 and 2015 . Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. September 30, 2016 Three Months Ended September 30, 2016 Nine Months Ended Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Multi-family $ 4,159 $ 4,159 $ — $ 2,080 $ 38 $ 1,205 $ 38 Commercial and industrial 22,885 23,919 — 21,859 406 18,681 879 Commercial real estate owner occupied 10,523 10,523 — 10,182 201 9,651 403 Commercial real estate non-owner occupied 10,539 10,678 — 7,983 118 6,081 133 Other consumer 42 42 — 43 — 45 — Residential real estate 3,799 3,842 — 3,835 39 4,039 83 Manufactured housing 9,091 9,091 — 8,971 9 8,785 290 With an allowance recorded: Multi-family 379 379 195 383 5 290 15 Commercial and industrial 7,390 7,390 3,119 7,561 43 7,256 155 Commercial real estate owner occupied — — — — — 6 — Commercial real estate non-owner occupied 120 120 27 328 2 438 6 Other consumer — — — — — 36 — Residential real estate 200 200 63 300 — 421 — Manufactured housing — — — — — — — Total $ 69,127 $ 70,343 $ 3,404 $ 63,525 $ 861 $ 56,934 $ 2,002 December 31, 2015 Three Months Ended September 30, 2015 Nine Months Ended Recorded Investment Net of Charge offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (amounts in thousands) With no related allowance recorded: Multi-family $ 661 $ 661 $ — $ 203 $ 5 $ 101 $ 5 Commercial and industrial 12,056 13,028 — 7,597 102 9,179 500 Commercial real estate owner occupied 8,317 8,317 — 6,431 103 7,617 288 Commercial real estate non-owner occupied 4,276 4,276 — 7,803 137 6,937 514 Construction — — — 335 — 1,330 — Other consumer 48 48 — 49 1 35 1 Residential real estate 4,331 4,331 — 4,044 20 3,910 62 Manufactured housing 8,300 8,300 — 7,061 131 4,855 339 With an allowance recorded: Commercial and industrial 5,565 5,914 1,990 12,640 26 8,420 332 Commercial real estate - owner occupied 12 12 1 13 66 200 66 Commercial real estate non-owner occupied 555 555 148 664 4 821 9 Other consumer 92 92 50 93 — 88 — Residential real estate 395 395 84 474 1 419 1 Total $ 44,608 $ 45,929 $ 2,273 $ 47,407 $ 596 $ 43,912 $ 2,117 |
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 three and nine months ended September 30, 2016 and 2015 . There were no modifications that involved forgiveness of debt. Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Extensions of maturity — $ — 1 $ 183 Interest-rate reductions 10 533 21 705 Total 10 $ 533 22 $ 888 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Extensions of maturity 3 $ 1,995 1 $ 183 Interest-rate reductions 49 1,932 131 5,747 Total 52 $ 3,927 132 $ 5,930 |
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment | The following table provides, by loan type, the number of loans modified in troubled debt restructurings, and the related recorded investment, during the three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Commercial and industrial — $ — 1 $ 183 Commercial real estate non-owner occupied — — — — Manufactured housing 10 533 20 699 Residential real estate — — 1 6 Total loans 10 $ 533 22 $ 888 Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Number Recorded Number Recorded (dollars in thousands) Commercial and industrial 1 $ 76 2 $ 527 Commercial real estate non-owner occupied 1 1,844 1 209 Manufactured housing 47 1,716 127 4,993 Residential real estate 3 291 2 201 Total loans 52 $ 3,927 132 $ 5,930 |
Changes in Accretable Yield Related to Purchased-credit-impaired Loans | The changes in accretable yield related to purchased-credit-impaired loans for the three and nine months ended September 30, 2016 and 2015 were as follows: Three Months Ended September 30, 2016 2015 (amounts in thousands) Accretable yield balance as of June 30, $ 11,165 $ 14,302 Accretion to interest income (460 ) (551 ) Reclassification from nonaccretable difference and disposals, net 107 10 Accretable yield balance as of September 30, $ 10,812 $ 13,761 Nine Months Ended September 30, 2016 2015 (amounts in thousands) Accretable yield balance as of December 31, $ 12,947 $ 17,606 Accretion to interest income (1,429 ) (1,790 ) Reclassification from nonaccretable difference and disposals, net (706 ) (2,055 ) Accretable yield balance as of September 30, $ 10,812 $ 13,761 |
Schedule of Changes in Allowance for Loan Losses | Allowance for Loan Losses Nine months ended September 30, (amounts in thousands) 2016 2015 Ending balance as of December 31, $ 35,647 $ 30,932 Provision for loan losses (1) 3,143 10,548 Charge-offs (1,848 ) (8,880 ) Recoveries 955 1,223 Ending balance as of September 30, $ 37,897 $ 33,823 The following table presents changes in the allowance for loan losses and the FDIC loss sharing receivable, including the effects of the estimated clawback liability and the termination agreement, for the three and nine months ended September 30, 2016 and 2015 . Allowance for Loan Losses Three Months Ended September 30, (amounts in thousands) 2016 2015 Ending balance as of June 30, $ 38,097 $ 37,491 Provision for loan losses (1) 88 1,989 Charge-offs (666 ) (5,932 ) Recoveries 378 275 Ending balance as of September 30, $ 37,897 $ 33,823 |
Schedule of FDIC Loss Sharing Receivable | FDIC Loss Sharing Receivable/ Clawback Liability Three Months Ended September 30, (amounts in thousands) 2016 2015 Ending balance as of June 30, $ (1,381 ) $ (1,455 ) Increased (decreased) estimated cash flows (2) — (105 ) Increased estimated cash flows from covered OREO (a) — 3,138 Other activity, net (b) — 61 Cash payments to (receipts from) the FDIC 1,381 (1,437 ) Ending balance as of September 30, $ — $ 202 (1) Provision for loan losses $ 88 $ 1,989 (2) Effect attributable to FDIC loss share arrangements — 105 Net amount reported as provision for loan losses $ 88 $ 2,094 (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, which qualify for reimbursement under loss sharing agreements. FDIC Loss Sharing Receivable/ Clawback Liability Nine months ended September 30, (amounts in thousands) 2016 2015 Ending balance as of December 31, $ (2,083 ) $ 2,320 Increased (decreased) estimated cash flows (2) 289 (3,845 ) Increased estimated cash flows from covered OREO (a) — 3,138 Other activity, net (b) (255 ) 529 Cash payments to (receipts from) the FDIC 2,049 (1,940 ) Ending balance as of September 30, $ — $ 202 (1) Provision for loan losses $ 3,143 $ 10,548 (2) Effect attributable to FDIC loss share arrangements (289 ) 3,845 Net amount reported as provision for loan losses $ 2,854 $ 14,393 (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, which qualify for reimbursement under loss sharing agreements. |
Credit Ratings of Covered and Non-Covered Loan Portfolio | The following tables present the credit ratings of loans receivable as of September 30, 2016 and December 31, 2015 . September 30, 2016 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Pass/Satisfactory $ 3,145,089 $ 874,940 $ 377,917 $ 1,140,415 $ 83,835 $ 224,113 $ — $ — $ 5,846,309 Special Mention 379 23,147 9,032 8,544 — — — — 41,102 Substandard 4,830 7,163 4,522 2,140 — 3,009 — — 21,664 Performing (1) — — — — — — 96,911 3,361 100,272 Non-performing (2) — — — — — — 7,493 59 7,552 Total $ 3,150,298 $ 905,250 $ 391,471 $ 1,151,099 $ 83,835 $ 227,122 $ 104,404 $ 3,420 $ 6,016,899 December 31, 2015 Multi-family Commercial Commercial Commercial Real Estate Non-Owner Occupied 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 (1) Includes consumer and other installment loans not subject to risk ratings. (2) Includes loans that are past due and still accruing interest and loans on nonaccrual status. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes stock option activity for the nine months ended September 30, 2016 . Number of Options Weighted- average Exercise Price Weighted- average Remaining Contractual Term in Years Aggregate Intrinsic Value (dollars in thousands) Outstanding at December 31, 2015 3,731,761 $ 14.33 Granted 20,000 25.18 Exercised (44,337 ) 10.28 $ 623 Forfeited (1,275 ) 18.72 Outstanding at September 30, 2016 3,706,149 $ 14.44 6.07 $ 39,745 Exercisable at September 30, 2016 1,095,912 $ 10.03 4.03 $ 16,584 |
Summary of Restricted Stock Activity | The following table summarizes restricted stock unit activity for the nine months ended September 30, 2016 . Restricted Stock Units Weighted- average Grant- date Fair Value Outstanding and unvested at December 31, 2015 873,264 $ 14.24 Granted 247,285 23.85 Vested (97,664 ) 14.82 Forfeited (973 ) 19.86 Outstanding and unvested at September 30, 2016 1,021,912 $ 16.51 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, Tier 1 risk based, total risk based and Tier 1 leveraged ratios as set forth in the following table: Actual For Capital Adequacy Purposes (Minimum Plus Capital Buffer) To Be Well Capitalized Under Prompt Corrective Action Provisions (amounts in thousands) Amount Ratio Amount Ratio Amount Ratio As of September 30, 2016: Common equity Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 553,391 7.117 % $ 398,497 5.125 % N/A N/A Customers Bank $ 772,484 9.971 % $ 397,045 5.125 % $ 503,569 6.500 % Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 770,070 9.904 % $ 515,130 6.625 % N/A N/A Customers Bank $ 772,484 9.971 % $ 513,253 6.625 % $ 619,777 8.000 % Total capital (to risk weighted assets) Customers Bancorp, Inc. $ 904,305 11.630 % $ 670,641 8.625 % N/A N/A Customers Bank $ 919,234 11.865 % $ 668,198 8.625 % $ 774,722 10.000 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 770,070 8.182 % $ 376,467 4.000 % N/A N/A Customers Bank $ 772,484 8.229 % $ 375,508 4.000 % $ 469,385 5.000 % As of December 31, 2015: Common equity Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 500,624 7.610 % $ 296,014 4.500 % N/A N/A Customers Bank $ 565,217 8.620 % $ 294,916 4.500 % $ 425,990 6.500 % Tier 1 capital (to risk weighted assets) Customers Bancorp, Inc. $ 556,193 8.460 % $ 394,685 6.000 % N/A N/A Customers Bank $ 565,217 8.620 % $ 393,221 6.000 % $ 524,295 8.000 % Total capital (to risk weighted assets) Customers Bancorp, Inc. $ 698,323 10.620 % $ 526,247 8.000 % N/A N/A Customers Bank $ 710,864 10.850 % $ 524,295 8.000 % $ 655,369 10.000 % Tier 1 capital (to average assets) Customers Bancorp, Inc. $ 556,193 7.160 % $ 310,812 4.000 % N/A N/A Customers Bank $ 565,217 7.300 % $ 309,883 4.000 % $ 387,353 5.000 % |
Disclosures About Fair Value 33
Disclosures About Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers' financial instruments at September 30, 2016 and December 31, 2015 were as follows: Fair Value Measurements at September 30, 2016 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 265,588 $ 265,588 $ 265,588 $ — $ — Investment securities, available for sale 530,896 530,896 16,736 514,160 — Loans held for sale 2,402,708 2,402,848 — 2,377,445 25,403 Loans receivable, net of allowance for loan losses 5,979,098 5,998,001 — — 5,998,001 FHLB, Federal Reserve Bank and other restricted stock 71,621 71,621 — 71,621 — Derivatives 18,789 18,789 — 18,704 85 Liabilities: Deposits $ 7,388,970 $ 7,398,218 $ 4,459,937 $ 2,938,281 $ — Federal funds purchased 52,000 52,000 52,000 — — FHLB advances 1,036,700 1,037,706 851,700 186,006 — Other borrowings 86,957 88,967 63,655 25,312 — Subordinated debt 108,758 111,650 — 111,650 — Derivatives 25,466 25,466 — 25,466 — Fair Value Measurements at December 31, 2015 Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (amounts in thousands) Assets: Cash and cash equivalents $ 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 86,457 93,804 68,867 24,937 — Subordinated debt 108,685 110,825 — 110,825 — Derivatives 13,932 13,932 — 13,932 — |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2016 and December 31, 2015 were as follows: September 30, 2016 Fair Value Measurements at the End of the Reporting Period Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (amounts in thousands) Measured at Fair Value on a Recurring Basis: Assets Available-for-sale securities: Agency-guaranteed residential mortgage-backed securities $ — $ 254,320 $ — $ 254,320 Agency guaranteed commercial real estate mortgage-backed securities — 213,799 — 213,799 Corporate notes — 46,041 — 46,041 Equity securities 16,736 — — 16,736 Derivatives — 18,704 85 18,789 Loans held for sale – fair value option — 2,377,445 — 2,377,445 Total assets - recurring fair value measurements $ 16,736 $ 2,910,309 $ 85 $ 2,927,130 Liabilities Derivatives $ — $ 25,466 $ — $ 25,466 Measured at Fair Value on a Nonrecurring Basis: Assets Impaired loans, net of specific reserves of $3,404 $ — $ — $ 4,929 $ 4,929 Other real estate owned — — 2,645 2,645 Total assets - nonrecurring fair value measurements $ — $ — $ 7,574 $ 7,574 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: Agency-guaranteed residential mortgage-backed securities $ — $ 298,104 $ — $ 298,104 Agency-guaranteed commercial real estate mortgage-backed securities — 202,870 — 202,870 Corporate notes — 40,067 — 40,067 Equity securities 19,212 — — 19,212 Derivatives — 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 $ — $ 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 |
Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis for the three and nine months ended September 30, 2016 and 2015 are summarized as follows. Residential Mortgage Loan Commitments Three Months Ended September 30, 2016 2015 (amounts in thousands) Balance at June 30 $ 157 $ 71 Issuances 85 70 Settlements (157 ) (71 ) Balance at September 30 $ 85 $ 70 Residential Mortgage Loan Commitments Nine Months Ended September 30, 2016 2015 (amounts in thousands) Balance at December 31 $ 45 $ 43 Issuances 315 228 Settlements (275 ) (201 ) Balance at Balance at September 30 $ 85 $ 70 |
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 September 30, 2016 and December 31, 2015 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. Quantitative Information about Level 3 Fair Value Measurements September 30, 2016 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts in thousands) Impaired loans $ 4,929 Collateral appraisal (1) Liquidation expenses (2) (8)% Other real estate owned 2,645 Collateral appraisal (1) Liquidation expenses (2) (8)% Residential mortgage loan commitments 85 Adjusted market bid Pull-through rate 90% Quantitative Information about Level 3 Fair Value Measurements December 31, 2015 Fair Value Estimate Valuation Technique Unobservable Input Range (Weighted Average) (amounts 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% (1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals. (2) Fair value is adjusted for estimated costs to sell based on a percentage of the value as determined by the appraisal. |
Derivative Instruments and He34
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Financial Instruments | The following table presents the fair value of Customers' derivative financial instruments as well as their presentation on the balance sheet as of September 30, 2016 and December 31, 2015 . September 30, 2016 Derivative Assets Derivative Liabilities Balance Sheet Location Fair Value Balance Sheet Location Fair Value (amounts in thousands) Derivatives designated as cash flow hedges: Interest rate swaps Other assets $ — Other liabilities $ 5,695 Total $ — $ 5,695 Derivatives not designated as hedging instruments: Interest rate swaps Other assets $ 18,453 Other liabilities $ 19,739 Credit contracts Other assets 251 Other liabilities 32 Residential mortgage loan commitments Other assets 85 Other liabilities — Total $ 18,789 $ 19,771 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 |
Effect of Derivative Financial Instruments on Comprehensive Income | The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three and nine months ended September 30, 2016 and 2015 . Three Months Ended September 30, 2016 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 $ 1,737 Credit contracts Other non-interest income (15 ) Residential mortgage loan commitments Mortgage loan and banking income (71 ) Total $ 1,651 Three Months Ended September 30, 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 $ 192 Credit contracts Other non-interest income 51 Residential mortgage loan commitments Mortgage loan and banking income (1 ) Total $ 242 Nine Months Ended September 30, 2016 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 $ 1,250 Credit contracts Other non-interest income 257 Residential mortgage loan commitments Mortgage loan and banking income 41 Total $ 1,548 Nine Months Ended September 30, 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 $ 902 Credit contracts Other non-interest income 15 Residential mortgage loan commitments Mortgage loan and banking income 27 Total $ 944 Three Months Ended September 30, 2016 Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ 556 Interest expense $ (703 ) Three Months Ended September 30, 2015 Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) (1) Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (amounts in thousands) Derivatives in cash flow hedging relationships: Interest rate swaps $ (1,464 ) Interest expense $ — (1) Amounts presented are net of taxes Nine Months Ended September 30, 2016 Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) (amounts in thousands) Derivative in cash flow hedging relationships: Interest rate swaps $ (1,577 ) Interest expense $ (1,306 ) Nine Months Ended September 30, 2015 Amount of Gain (Loss) Location of Gain (Loss) Amount of Gain (Loss) (amounts in thousands) Derivative in cash flow hedging relationships: Interest rate swaps $ (2,353 ) Interest expense $ — |
Summary of Offsetting of Financial Assets and Derivative Assets | Offsetting of Financial Assets and Derivative Assets At December 31, 2015 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ — $ — $ — $ — $ — $ — Offsetting of Financial Assets and Derivative Assets At September 30, 2016 Gross Amount of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Assets Presented in the Consolidated Balance Sheet Gross Amounts Not Offset in the Consolidated Balance Sheet Net Amount Financial Instruments Cash Collateral Received (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ — $ — $ — $ — $ — $ — |
Summary of Offsetting of Financial Liabilities and Derivative Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities At December 31, 2015 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Net Amount Financial Instruments Cash Collateral Pledged (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 13,932 $ — $ 13,932 $ — $ 13,932 $ — Offsetting of Financial Liabilities and Derivative Liabilities At September 30, 2016 Gross Amount of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts of Liabilities Presented in the Consolidated Balance Sheet Gross Amounts Financial Instruments Cash Collateral Pledged Net Amount (amounts in thousands) Description Interest rate swap derivatives with institutional counterparties $ 25,434 $ — $ 25,434 $ — $ 25,434 $ — |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three Months Ended September 30, 2016 Community Business Banking BankMobile Consolidated Interest income $ 82,828 $ 1,384 (1 ) $ 84,212 Interest expense 19,620 7 19,627 Net interest income 63,208 1,377 64,585 Provision for loan losses (162 ) 250 88 Non-interest income 11,121 16,365 27,486 Non-interest expense 36,864 19,354 56,218 Income (loss) before income tax expense 37,627 (1,862 ) 35,765 Income tax expense/(benefit) 15,284 (708 ) 14,576 Net income (loss) 22,343 (1,154 ) 21,189 Preferred stock dividends 2,552 — 2,552 Net income (loss) available to common shareholders $ 19,791 $ (1,154 ) $ 18,637 Three Months Ended September 30, 2015 Community Business Banking BankMobile Consolidated Interest income $ 62,153 $ 1,583 (1 ) $ 63,736 Interest expense 13,795 7 13,802 Net interest income 48,358 1,576 49,934 Provision for loan losses 2,094 — 2,094 Non-interest income 6,160 11 6,171 Non-interest expense 28,467 1,840 30,307 Income (loss) before income tax expense 23,957 (253 ) 23,704 Income tax expense/(benefit) 8,511 (96 ) 8,415 Net income (loss) 15,446 (157 ) 15,289 Preferred stock dividends 980 — 980 Net income (loss) available to common shareholders $ 14,466 $ (157 ) $ 14,309 (1) - Amounts reported include funds transfer pricing of $1.4 million and $1.6 million , respectively, for the three months ended September 30, 2016 and 2015 credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no cost deposits. Nine Months Ended September 30, 2016 Community Business Banking BankMobile Consolidated Interest income $ 234,513 $ 4,418 (1 ) $ 238,931 Interest expense 53,539 22 53,561 Net interest income 180,974 4,396 185,370 Provision for loan losses 2,605 249 2,854 Non-interest income 22,241 18,996 41,237 Non-interest expense 101,053 27,253 128,306 Income (loss) before income tax expense 99,557 (4,110 ) 95,447 Income tax expense/(benefit) 38,691 (1,562 ) 37,129 Net income (loss) 60,866 (2,548 ) 58,318 Preferred stock dividends 5,900 — 5,900 Net income (loss) available to common shareholders $ 54,966 $ (2,548 ) $ 52,418 As of September 30, 2016 Goodwill and other intangibles $ 3,642 $ 13,282 $ 16,924 Total assets $ 9,532,281 $ 70,329 $ 9,602,610 Total deposits $ 6,855,788 $ 533,182 $ 7,388,970 Nine Months Ended September 30, 2015 Community Business Banking BankMobile Consolidated Interest income $ 177,215 $ 4,922 (1 ) $ 182,137 Interest expense 39,299 16 39,315 Net interest income 137,916 4,906 142,822 Provision for loan losses 14,393 — 14,393 Non-interest income 18,272 25 18,297 Non-interest expense 78,344 5,088 83,432 Income (loss) before income tax expense 63,451 (157 ) 63,294 Income tax expense/(benefit) 22,557 (60 ) 22,497 Net income (loss) 40,894 (97 ) 40,797 Preferred stock dividends 1,487 — 1,487 Net income (loss) available to common shareholders $ 39,407 $ (97 ) $ 39,310 As of September 30, 2015 Goodwill and other intangibles $ 3,654 $ — $ 3,654 Total assets $ 7,593,556 $ 2,620 $ 7,596,176 Total deposits $ 5,423,717 $ 361,477 $ 5,785,194 (1) - Amounts reported include funds transfer pricing of $4.4 million and $4.9 million , respectively, for the nine months ended September 30, 2016 and 2015 credited to BankMobile for the value provided to the Community Business Banking segment for the use of low/no cost deposits. |
Description of the Business - A
Description of the Business - Additional Information (Detail) | Sep. 30, 2016Branch |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches (branch) | 14 |
Acquisition Activity - Addition
Acquisition Activity - Additional Information (Detail) | Jun. 15, 2016USD ($)employee | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Capital Unit [Line Items] | |||||
Cash consideration at closing | $ 17,000,000 | $ 0 | |||
Acquisition related expenses | $ 144,000 | $ 0 | $ 1,195,000 | $ 0 | |
Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business | |||||
Capital Unit [Line Items] | |||||
Number of employees hired (employee) | employee | 225 | ||||
Aggregate guaranteed payments | $ 42,000,000 | ||||
Transaction cash consideration | 37,000,000 | ||||
Cash consideration at closing | 17,000,000 | ||||
Business acquisition payables | 20,000,000 | ||||
Payables to Higher One | 20,000,000 | ||||
Payments for services under transition services agreement | $ 5,000,000 | ||||
Period following the closing for potential additional payments | 3 years | ||||
Revenue amount to trigger additional payments | $ 75,000,000 | ||||
Possible payment as a percent of amount that exceeds revenue | 35.00% | ||||
Goodwill and other intangibles | $ 4,293,000 | ||||
Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business | Developed software | |||||
Capital Unit [Line Items] | |||||
Useful life | 10 years | ||||
Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business | Other Intangible Assets | Minimum | |||||
Capital Unit [Line Items] | |||||
Useful life | 4 years | ||||
Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business | Other Intangible Assets | Maximum | |||||
Capital Unit [Line Items] | |||||
Useful life | 20 years | ||||
Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business | First Anniversary of Closing | |||||
Capital Unit [Line Items] | |||||
Business acquisition payables | $ 10,000,000 | ||||
Payables to Higher One | 10,000,000 | ||||
Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business | Second Anniversary of Closing | |||||
Capital Unit [Line Items] | |||||
Business acquisition payables | 10,000,000 | ||||
Payables to Higher One | $ 10,000,000 |
Acquisition Activity - Estimate
Acquisition Activity - Estimated Fair Values (Details) - Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business $ in Thousands | Jun. 15, 2016USD ($) |
Fair value of assets acquired: | |
Accounts receivable | $ 2,784 |
Prepaid expenses | 1,180 |
Fixed assets, net | 229 |
Total assets acquired | 40,893 |
Fair value of liabilities assumed: | |
Other liabilities | 5,531 |
Deferred revenue | 2,655 |
Total liabilities assumed | 8,186 |
Net assets acquired | 32,707 |
Transaction cash consideration | 37,000 |
Goodwill recognized | 4,293 |
Business acquisition payables | 20,000 |
First Anniversary of Closing | |
Fair value of liabilities assumed: | |
Business acquisition payables | 10,000 |
Second Anniversary of Closing | |
Fair value of liabilities assumed: | |
Business acquisition payables | 10,000 |
Developed software | |
Fair value of assets acquired: | |
Intangible assets acquired | 27,400 |
Other Intangible Assets | |
Fair value of assets acquired: | |
Intangible assets acquired | $ 9,300 |
Significant Accounting Polici39
Significant Accounting Policies and Basis of Presentation (Details) $ in Thousands | Jun. 15, 2016USD ($) | Sep. 30, 2016USD ($)Segment | Jun. 30, 2016Segment | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Average balances on hand | $ 118,200 | $ 73,200 | |||
Goodwill and other intangibles | $ 16,924 | 3,651 | $ 3,654 | ||
Number of reportable segments (segment) | Segment | 2 | 1 | |||
Adjustments for New Accounting Pronouncement | Other Borrowings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt issuance costs | 1,800 | ||||
Adjustments for New Accounting Pronouncement | Subordinated Debt | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt issuance costs | 1,300 | ||||
Adjustments for New Accounting Pronouncement | Other Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Debt issuance costs | $ (3,100) | ||||
Higher One, Inc.'s Account Student Checking and Refund Management Disbursement Services Business | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Amount placed in escrow | $ 20,000 | ||||
Payment period for escrow amount | 2 years |
Changes in Accumulated Other 40
Changes in Accumulated Other Comprehensive Income (Loss) By Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 553,902 | $ 443,145 | ||
Ending balance | $ 789,820 | $ 537,978 | 789,820 | 537,978 |
Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 4,895 | (1,825) | (4,602) | 1,156 |
Other comprehensive income (loss) before reclassifications | 15 | 598 | 9,529 | (2,426) |
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 1 | 10 | (16) | 53 |
Net current-period other comprehensive income (loss) | 16 | 608 | 9,513 | (2,373) |
Ending balance | 4,911 | (1,217) | 4,911 | (1,217) |
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (768) | (136) | (584) | (14) |
Other comprehensive income (loss) before reclassifications | 190 | (435) | 6 | (557) |
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | 190 | (435) | 6 | (557) |
Ending balance | (578) | (571) | (578) | (571) |
Total Unrealized Gains (Losses) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 4,127 | (1,961) | (5,186) | 1,142 |
Other comprehensive income (loss) before reclassifications | 205 | 163 | 9,535 | (2,983) |
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 1 | 10 | (16) | 53 |
Net current-period other comprehensive income (loss) | 206 | 173 | 9,519 | (2,930) |
Ending balance | 4,333 | (1,788) | 4,333 | (1,788) |
Unrealized Gain (Loss) on Cash Flow Hedge | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (4,554) | (2,153) | (2,798) | (1,264) |
Other comprehensive income (loss) before reclassifications | 556 | (1,464) | (1,577) | (2,353) |
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 439 | 0 | 816 | 0 |
Net current-period other comprehensive income (loss) | 995 | (1,464) | (761) | (2,353) |
Ending balance | (3,559) | (3,617) | (3,559) | (3,617) |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (427) | (4,114) | (7,984) | (122) |
Other comprehensive income (loss) before reclassifications | 761 | (1,301) | 7,958 | (5,336) |
Amounts reclassified from accumulated other comprehensive income (loss) to net income | 440 | 10 | 800 | 53 |
Net current-period other comprehensive income (loss) | 1,201 | (1,291) | 8,758 | (5,283) |
Ending balance | $ 774 | $ (5,405) | $ 774 | $ (5,405) |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 18,637 | $ 14,309 | $ 52,418 | $ 39,310 |
Weighted-average number of common shares outstanding - basic (shares) | 27,367,551 | 26,872,787 | 27,131,960 | 26,830,341 |
Share-based compensation plans (shares) | 1,657,818 | 1,538,436 | 1,595,022 | 1,453,378 |
Warrants (shares) | 124,365 | 329,906 | 243,531 | 315,276 |
Weighted-average number of common shares - diluted (shares) | 29,149,734 | 28,741,129 | 28,970,513 | 28,598,995 |
Basic earnings per common share (usd per share) | $ 0.68 | $ 0.53 | $ 1.93 | $ 1.47 |
Diluted earnings per common share (usd per share) | $ 0.64 | $ 0.50 | $ 1.81 | $ 1.37 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Anti-dilutive securities: | ||||
Total anti-dilutive securities (shares) | 669,237 | 659,920 | 669,237 | 661,020 |
Share-based compensation awards | ||||
Anti-dilutive securities: | ||||
Total anti-dilutive securities (shares) | 616,995 | 607,678 | 616,995 | 608,778 |
Warrants | ||||
Anti-dilutive securities: | ||||
Total anti-dilutive securities (shares) | 52,242 | 52,242 | 52,242 | 52,242 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 523,962 | $ 568,550 |
Gross Unrealized Gains | 13,031 | 1,773 |
Gross Unrealized Losses | (6,097) | (10,070) |
Fair Value | 530,896 | 560,253 |
Corporate notes | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 44,930 | 39,925 |
Gross Unrealized Gains | 1,111 | 320 |
Gross Unrealized Losses | 0 | (178) |
Fair Value | 46,041 | 40,067 |
Agency-guaranteed residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 251,755 | 299,392 |
Gross Unrealized Gains | 2,890 | 1,453 |
Gross Unrealized Losses | (325) | (2,741) |
Fair Value | 254,320 | 298,104 |
Agency-guaranteed commercial real estate mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 204,769 | 206,719 |
Gross Unrealized Gains | 9,030 | 0 |
Gross Unrealized Losses | 0 | (3,849) |
Fair Value | 213,799 | 202,870 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 22,508 | 22,514 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5,772) | (3,302) |
Fair Value | $ 16,736 | $ 19,212 |
Investment Securities - Stateme
Investment Securities - Statement of Proceeds from Sale of Available for Sale Investment Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sale of available-for-sale securities | $ 5 | $ 314 | $ 2,853 | $ 806 |
Gross gains | 0 | 0 | 26 | 0 |
Gross losses | (1) | (16) | (1) | (85) |
Net gains (losses) | $ (1) | $ (16) | $ 25 | $ (85) |
Investment Securities - Summa45
Investment Securities - Summary of Available-for-Sale Debt Securities by Stated Maturity (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Due in one year or less, amortized cost | $ 0 |
Due after one year through five years, amortized cost | 0 |
Due after five years through ten years, amortized cost | 37,930 |
Due after ten years, amortized cost | 7,000 |
Total debt securities, amortized cost | 501,454 |
Due in one year or less, fair value | 0 |
Due after one year through five years, fair value | 0 |
Due after five years through ten years, fair value | 38,783 |
Due after ten years, fair value | 7,258 |
Total debt securities, fair value | 514,160 |
Agency-guaranteed residential mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Agency-guaranteed mortgage backed securities, amortized cost | 251,755 |
Agency-guaranteed mortgage-backed securities, fair value | 254,320 |
Agency-guaranteed commercial real estate mortgage-backed securities | |
Schedule of Available-for-sale Securities [Line Items] | |
Agency-guaranteed mortgage backed securities, amortized cost | 204,769 |
Agency-guaranteed mortgage-backed securities, fair value | $ 213,799 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value, Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | $ 2,388 | $ 334,656 |
Less Than 12 Months, Unrealized Losses | (1) | (7,863) |
12 Months or More, Fair Value | 49,265 | 57,363 |
12 Months or More, Unrealized Losses | (6,096) | (2,207) |
Fair Value, Total | 51,653 | 392,019 |
Unrealized Losses | (6,097) | (10,070) |
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 | (178) | |
Agency-guaranteed residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 2,388 | 102,832 |
Less Than 12 Months, Unrealized Losses | (1) | (535) |
12 Months or More, Fair Value | 32,529 | 57,357 |
12 Months or More, Unrealized Losses | (324) | (2,206) |
Fair Value, Total | 34,917 | 160,189 |
Unrealized Losses | (325) | (2,741) |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 19,206 |
Less Than 12 Months, Unrealized Losses | 0 | (3,301) |
12 Months or More, Fair Value | 16,736 | 6 |
12 Months or More, Unrealized Losses | (5,772) | (1) |
Fair Value, Total | 16,736 | 19,212 |
Unrealized Losses | $ (5,772) | (3,302) |
Agency-guaranteed commercial real estate mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 202,870 | |
Less Than 12 Months, Unrealized Losses | (3,849) | |
12 Months or More, Fair Value | 0 | |
12 Months or More, Unrealized Losses | 0 | |
Fair Value, Total | 202,870 | |
Unrealized Losses | $ (3,849) |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) $ in Millions | Sep. 30, 2016USD ($)Security | Dec. 31, 2015USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Number of available-for-sale investment securities in the less than twelve month category (security) | 1 | |
Number of available-for-sale investment securities in the twelve month or more category (security) | 9 | |
Pledged investment securities fair value | $ | $ 254.3 | $ 299.8 |
Loans Held for Sale - Compositi
Loans Held for Sale - Composition of Loans Held for Sale (Detail) - USD ($) | 9 Months Ended | 13 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Receivables Held-for-sale [Abstract] | ||||
Mortgage warehouse loans at fair value | $ 2,373,877,000 | $ 2,373,877,000 | $ 1,754,950,000 | |
Multi-family loans at lower of cost or fair value | 25,263,000 | 25,263,000 | 39,257,000 | |
Commercial loans held for sale | 2,399,140,000 | 2,399,140,000 | 1,794,207,000 | |
Residential mortgage loans at fair value | 3,568,000 | 3,568,000 | 2,857,000 | |
Loans held for sale | $ 2,402,708,000 | 2,402,708,000 | $ 1,797,064,000 | |
Loans held for sale, average life from purchase to sale | 20 days | |||
Transfer of loans held for sale to held for investment | $ 0 | $ 30,365,000 | $ 0 |
Loans Receivable and Allowanc49
Loans Receivable and Allowance for Loan Losses - Schedule of Loans Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | $ 6,016,899 | $ 5,453,145 | ||||
Deferred costs and unamortized premiums, net | 96 | 334 | ||||
Allowance for loan losses | (37,897) | $ (38,097) | (35,647) | $ (33,823) | $ (37,491) | $ (30,932) |
Total loans receivable, net of allowance for loan losses | 5,979,098 | 5,417,832 | ||||
Multi-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 3,150,298 | 2,909,439 | ||||
Allowance for loan losses | (11,673) | (12,368) | (12,016) | (9,206) | (8,734) | (8,493) |
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 83,835 | 87,240 | ||||
Allowance for loan losses | (1,049) | (1,209) | (1,074) | (1,110) | (844) | (1,047) |
Residential real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 227,122 | 271,613 | ||||
Allowance for loan losses | (3,379) | (3,535) | (3,298) | (3,194) | (3,455) | (2,698) |
Manufactured housing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 104,404 | 113,490 | ||||
Allowance for loan losses | (422) | (440) | (494) | (386) | (316) | (262) |
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 3,420 | 3,708 | ||||
Allowance for loan losses | (114) | $ (110) | (133) | $ (120) | $ (119) | $ (114) |
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 5,681,953 | 5,064,334 | ||||
Commercial | Multi-family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 3,150,298 | 2,909,439 | ||||
Commercial | Commercial and industrial (including owner occupied commercial real estate) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 1,296,721 | 1,111,400 | ||||
Commercial | Commercial real estate non-owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 1,151,099 | 956,255 | ||||
Commercial | Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 83,835 | 87,240 | ||||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 334,946 | 388,811 | ||||
Consumer | Residential real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 227,122 | 271,613 | ||||
Consumer | Manufactured housing | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | 104,404 | 113,490 | ||||
Consumer | Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, gross | $ 3,420 | $ 3,708 |
Loans Receivable and Allowanc50
Loans Receivable and Allowance for Loan Losses - Non-Covered Loans and Covered Loans by Class and Performance Status (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 6,699 | $ 11,954 |
Non-Accrual | 13,396 | 10,771 |
Current | 5,961,730 | 5,387,940 |
Loans receivable | 6,016,995 | 5,453,479 |
Loans receivable, gross | $ 6,016,899 | 5,453,145 |
Due days for loan payments | 30 days | |
Delinquent period | 90 days | |
Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 35,074 | 42,480 |
30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 4,156 | 9,149 |
90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,543 | 2,805 |
Multi-family | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Current | 3,147,521 | 2,905,789 |
Loans receivable, gross | 3,150,298 | 2,909,439 |
Multi-family | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 2,777 | 3,650 |
Multi-family | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Multi-family | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 39 |
Non-Accrual | 4,900 | 1,973 |
Current | 899,200 | 799,595 |
Loans receivable, gross | 905,250 | 803,159 |
Commercial and industrial | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 1,150 | 1,552 |
Commercial and industrial | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 39 |
Commercial and industrial | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate - owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 268 |
Non-Accrual | 2,071 | 2,700 |
Current | 376,482 | 292,312 |
Loans receivable, gross | 391,471 | 308,241 |
Commercial real estate - owner occupied | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 12,918 | 12,961 |
Commercial real estate - owner occupied | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 268 |
Commercial real estate - owner occupied | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate - non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 1,997 |
Non-Accrual | 2,152 | 1,307 |
Current | 1,142,024 | 940,895 |
Loans receivable, gross | 1,151,099 | 956,255 |
Commercial real estate - non-owner occupied | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 6,923 | 12,056 |
Commercial real estate - non-owner occupied | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 1,997 |
Commercial real estate - non-owner occupied | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Non-Accrual | 0 | 0 |
Current | 83,835 | 87,006 |
Loans receivable, gross | 83,835 | 87,240 |
Construction | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | 234 |
Construction | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Construction | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,182 | 2,986 |
Non-Accrual | 2,238 | 2,202 |
Current | 215,766 | 257,984 |
Loans receivable, gross | 227,122 | 271,613 |
Residential real estate | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 7,936 | 8,441 |
Residential real estate | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 1,182 | 2,986 |
Residential real estate | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 0 | 0 |
Manufactured housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 5,501 | 6,557 |
Non-Accrual | 1,992 | 2,449 |
Current | 93,784 | 101,132 |
Loans receivable, gross | 104,404 | 113,490 |
Manufactured housing | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 3,127 | 3,352 |
Manufactured housing | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,958 | 3,752 |
Manufactured housing | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 2,543 | 2,805 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 16 | 107 |
Non-Accrual | 43 | 140 |
Current | 3,118 | 3,227 |
Loans receivable, gross | 3,420 | 3,708 |
Other | Purchased Credit Impaired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 243 | 234 |
Other | 30-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | 16 | 107 |
Other | 90 Days or More Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans Receivable and Allowanc51
Loans Receivable and Allowance for Loan Losses - Additional Information (Detail) $ in Thousands | Jul. 11, 2016USD ($) | Sep. 30, 2016USD ($)AllowanceCommitment | Sep. 30, 2015USD ($)Allowance | Sep. 30, 2016USD ($)AllowanceCommitmentLoan | Sep. 30, 2015USD ($)AllowanceLoan | Dec. 31, 2015USD ($)Commitment |
Financing Receivable, Modifications [Line Items] | ||||||
Funds for reimbursement | $ 700 | $ 700 | $ 1,200 | |||
Loans reported as TDR | $ 14,200 | $ 14,200 | $ 11,400 | |||
Minimum performance requirement | 6 months | |||||
Sustained performance period | 9 months | |||||
Number of commitments to lend additional funds (commitment) | Commitment | 0 | 0 | 0 | |||
Loans modified as TDR allowance (allowance) | Allowance | 1 | 1 | 1 | 3 | ||
Payments for early termination of FDIC loss sharing agreement | $ 1,400 | |||||
Residential real estate | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Residential real estate held in other real estate owned | $ 900 | $ 900 | $ 1,200 | |||
Loans in process of foreclosure | $ 500 | $ 500 | $ 600 | |||
Commercial and industrial | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Loans modified as TDR allowance (allowance) | Allowance | 1 | 2 | ||||
Allowance for credit losses, effect of change in method | $ 140 | $ 208 | ||||
Commercial real estate - non-owner occupied | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Loans modified as TDR allowance (allowance) | Allowance | 1 | 1 | 1 | |||
Allowance for credit losses, effect of change in method | $ 29 | $ 29 | $ 25 | |||
Manufactured housing | ||||||
Financing Receivable, Modifications [Line Items] | ||||||
Number of loans modified as TDR (loan) | Loan | 5 | 5 | ||||
Loans modified as TDR | $ 100 | $ 200 |
Loans Receivable and Allowanc52
Loans Receivable and Allowance for Loan Losses - Schedule of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | $ 38,097 | $ 37,491 | $ 35,647 | $ 30,932 | ||
Charge-offs | (666) | (5,932) | (1,848) | (8,880) | ||
Recoveries | 378 | 275 | 955 | 1,223 | ||
Provision for loan losses | 88 | 1,989 | 3,143 | 10,548 | ||
Ending balance as of September 30, | 37,897 | 33,823 | 37,897 | 33,823 | ||
Loans: | ||||||
Individually evaluated for impairment | $ 69,127 | $ 44,608 | ||||
Collectively evaluated for impairment | 5,912,698 | 5,366,057 | ||||
Loans receivable, gross | 6,016,899 | 5,453,145 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 3,404 | 2,273 | ||||
Collectively evaluated for impairment | 29,403 | 27,212 | ||||
Total Allowance for loan losses | 38,097 | 37,491 | 35,647 | 30,932 | 37,897 | 35,647 |
Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 35,074 | 42,480 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 5,090 | 6,162 | ||||
Multi-family | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 12,368 | 8,734 | 12,016 | 8,493 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision for loan losses | (695) | 472 | (343) | 713 | ||
Ending balance as of September 30, | 11,673 | 9,206 | 11,673 | 9,206 | ||
Loans: | ||||||
Individually evaluated for impairment | 4,538 | 661 | ||||
Collectively evaluated for impairment | 3,142,983 | 2,905,128 | ||||
Loans receivable, gross | 3,150,298 | 2,909,439 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 195 | 0 | ||||
Collectively evaluated for impairment | 11,478 | 12,016 | ||||
Total Allowance for loan losses | 12,368 | 8,734 | 12,016 | 8,493 | 11,673 | 12,016 |
Multi-family | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 2,777 | 3,650 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 0 | 0 | ||||
Commercial and industrial | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 10,370 | 14,062 | 8,864 | 4,784 | ||
Charge-offs | (237) | (5,559) | (774) | (6,793) | ||
Recoveries | 62 | 248 | 173 | 351 | ||
Provision for loan losses | 832 | 1,678 | 2,764 | 12,087 | ||
Ending balance as of September 30, | 11,027 | 10,429 | 11,027 | 10,429 | ||
Loans: | ||||||
Individually evaluated for impairment | 30,275 | 17,621 | ||||
Collectively evaluated for impairment | 873,825 | 783,986 | ||||
Loans receivable, gross | 905,250 | 803,159 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 3,119 | 1,990 | ||||
Collectively evaluated for impairment | 7,771 | 6,650 | ||||
Total Allowance for loan losses | 10,370 | 14,062 | 8,864 | 4,784 | 11,027 | 8,864 |
Commercial and industrial | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 1,150 | 1,552 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 137 | 224 | ||||
Commercial real estate - owner occupied | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 1,582 | 3,651 | 1,348 | 4,336 | ||
Charge-offs | 0 | (35) | 0 | (378) | ||
Recoveries | 0 | 13 | 0 | 14 | ||
Provision for loan losses | 305 | (370) | 539 | (713) | ||
Ending balance as of September 30, | 1,887 | 3,259 | 1,887 | 3,259 | ||
Loans: | ||||||
Individually evaluated for impairment | 10,523 | 8,329 | ||||
Collectively evaluated for impairment | 368,030 | 286,951 | ||||
Loans receivable, gross | 391,471 | 308,241 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 1 | ||||
Collectively evaluated for impairment | 1,857 | 1,347 | ||||
Total Allowance for loan losses | 1,582 | 3,651 | 1,348 | 4,336 | 1,887 | 1,348 |
Commercial real estate - owner occupied | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 12,918 | 12,961 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 30 | 0 | ||||
Commercial real estate - non-owner occupied | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 8,483 | 6,310 | 8,420 | 9,198 | ||
Charge-offs | (140) | (82) | (140) | (327) | ||
Recoveries | 0 | 0 | 8 | 0 | ||
Provision for loan losses | 3 | (109) | 58 | (2,752) | ||
Ending balance as of September 30, | 8,346 | 6,119 | 8,346 | 6,119 | ||
Loans: | ||||||
Individually evaluated for impairment | 10,659 | 4,831 | ||||
Collectively evaluated for impairment | 1,133,517 | 939,368 | ||||
Loans receivable, gross | 1,151,099 | 956,255 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 27 | 148 | ||||
Collectively evaluated for impairment | 4,581 | 3,858 | ||||
Total Allowance for loan losses | 8,483 | 6,310 | 8,420 | 9,198 | 8,346 | 8,420 |
Commercial real estate - non-owner occupied | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 6,923 | 12,056 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 3,738 | 4,414 | ||||
Construction | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 1,209 | 844 | 1,074 | 1,047 | ||
Charge-offs | 0 | 0 | 0 | (1,064) | ||
Recoveries | 8 | 8 | 465 | 195 | ||
Provision for loan losses | (168) | 258 | (490) | 932 | ||
Ending balance as of September 30, | 1,049 | 1,110 | 1,049 | 1,110 | ||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 83,835 | 87,006 | ||||
Loans receivable, gross | 83,835 | 87,240 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,049 | 1,074 | ||||
Total Allowance for loan losses | 1,209 | 844 | 1,074 | 1,047 | 1,049 | 1,074 |
Construction | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 0 | 234 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 0 | 0 | ||||
Residential real estate | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 3,535 | 3,455 | 3,298 | 2,698 | ||
Charge-offs | (43) | (256) | (456) | (282) | ||
Recoveries | 298 | 0 | 299 | 572 | ||
Provision for loan losses | (411) | (5) | 238 | 206 | ||
Ending balance as of September 30, | 3,379 | 3,194 | 3,379 | 3,194 | ||
Loans: | ||||||
Individually evaluated for impairment | 3,999 | 4,726 | ||||
Collectively evaluated for impairment | 215,187 | 258,446 | ||||
Loans receivable, gross | 227,122 | 271,613 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 63 | 84 | ||||
Collectively evaluated for impairment | 2,515 | 2,141 | ||||
Total Allowance for loan losses | 3,535 | 3,455 | 3,298 | 2,698 | 3,379 | 3,298 |
Residential real estate | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 7,936 | 8,441 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 801 | 1,073 | ||||
Manufactured housing | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 440 | 316 | 494 | 262 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision for loan losses | (18) | 70 | (72) | 124 | ||
Ending balance as of September 30, | 422 | 386 | 422 | 386 | ||
Loans: | ||||||
Individually evaluated for impairment | 9,091 | 8,300 | ||||
Collectively evaluated for impairment | 92,186 | 101,838 | ||||
Loans receivable, gross | 104,404 | 113,490 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 95 | 98 | ||||
Total Allowance for loan losses | 440 | 316 | 494 | 262 | 422 | 494 |
Manufactured housing | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 3,127 | 3,352 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | 327 | 396 | ||||
Other | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Ending balance as of June 30, | 110 | 119 | 133 | 114 | ||
Charge-offs | (246) | 0 | (478) | (36) | ||
Recoveries | 10 | 6 | 10 | 91 | ||
Provision for loan losses | 240 | (5) | 449 | (49) | ||
Ending balance as of September 30, | 114 | 120 | 114 | 120 | ||
Loans: | ||||||
Individually evaluated for impairment | 42 | 140 | ||||
Collectively evaluated for impairment | 3,135 | 3,334 | ||||
Loans receivable, gross | 3,420 | 3,708 | ||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 0 | 50 | ||||
Collectively evaluated for impairment | 57 | 28 | ||||
Total Allowance for loan losses | $ 110 | $ 119 | $ 133 | $ 114 | 114 | 133 |
Other | Purchased Credit Impaired Loans | ||||||
Loans: | ||||||
Loans acquired with credit deterioration | 243 | 234 | ||||
Allowance for loan losses: | ||||||
Loans acquired with credit deterioration | $ 57 | $ 55 |
Loans Receivable and Allowanc53
Loans Receivable and Allowance for Loan Losses - Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, Total | $ 69,127 | $ 69,127 | $ 44,608 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, Total | 70,343 | 70,343 | 45,929 | ||
Related Allowance | 3,404 | 3,404 | 2,273 | ||
Average Recorded Investment | |||||
Average Recorded Investment, Total | 63,525 | $ 47,407 | 56,934 | $ 43,912 | |
Interest Income Recognized | |||||
Interest Income Recognized, Total | 861 | 596 | 2,002 | 2,117 | |
Multi-family | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 4,159 | 4,159 | 661 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 379 | 379 | |||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 4,159 | 4,159 | 661 | ||
Unpaid Principal Balance, With an allowance recorded | 379 | 379 | |||
Related Allowance | 195 | 195 | |||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 2,080 | 203 | 1,205 | 101 | |
Average Recorded Investment, With an allowance recorded | 383 | 290 | |||
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 38 | 5 | 38 | 5 | |
Interest Income Recognized, With an allowance recorded | 5 | 15 | |||
Commercial and industrial | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 22,885 | 22,885 | 12,056 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 7,390 | 7,390 | 5,565 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 23,919 | 23,919 | 13,028 | ||
Unpaid Principal Balance, With an allowance recorded | 7,390 | 7,390 | 5,914 | ||
Related Allowance | 3,119 | 3,119 | 1,990 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 21,859 | 7,597 | 18,681 | 9,179 | |
Average Recorded Investment, With an allowance recorded | 7,561 | 12,640 | 7,256 | 8,420 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 406 | 102 | 879 | 500 | |
Interest Income Recognized, With an allowance recorded | 43 | 26 | 155 | 332 | |
Commercial real estate - owner occupied | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 10,523 | 10,523 | 8,317 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 0 | 0 | 12 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 10,523 | 10,523 | 8,317 | ||
Unpaid Principal Balance, With an allowance recorded | 0 | 0 | 12 | ||
Related Allowance | 0 | 0 | 1 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 10,182 | 6,431 | 9,651 | 7,617 | |
Average Recorded Investment, With an allowance recorded | 0 | 13 | 6 | 200 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 201 | 103 | 403 | 288 | |
Interest Income Recognized, With an allowance recorded | 0 | 66 | 0 | 66 | |
Commercial real estate - non-owner occupied | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 10,539 | 10,539 | 4,276 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 120 | 120 | 555 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 10,678 | 10,678 | 4,276 | ||
Unpaid Principal Balance, With an allowance recorded | 120 | 120 | 555 | ||
Related Allowance | 27 | 27 | 148 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 7,983 | 7,803 | 6,081 | 6,937 | |
Average Recorded Investment, With an allowance recorded | 328 | 664 | 438 | 821 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 118 | 137 | 133 | 514 | |
Interest Income Recognized, With an allowance recorded | 2 | 4 | 6 | 9 | |
Construction | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 0 | ||||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 0 | ||||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 335 | 1,330 | |||
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 0 | 0 | |||
Other | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 42 | 42 | 48 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 0 | 0 | 92 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 42 | 42 | 48 | ||
Unpaid Principal Balance, With an allowance recorded | 0 | 0 | 92 | ||
Related Allowance | 0 | 0 | 50 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 43 | 49 | 45 | 35 | |
Average Recorded Investment, With an allowance recorded | 0 | 93 | 36 | 88 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 0 | 1 | 0 | 1 | |
Interest Income Recognized, With an allowance recorded | 0 | 0 | 0 | 0 | |
Residential real estate | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 3,799 | 3,799 | 4,331 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 200 | 200 | 395 | ||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 3,842 | 3,842 | 4,331 | ||
Unpaid Principal Balance, With an allowance recorded | 200 | 200 | 395 | ||
Related Allowance | 63 | 63 | 84 | ||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 3,835 | 4,044 | 4,039 | 3,910 | |
Average Recorded Investment, With an allowance recorded | 300 | 474 | 421 | 419 | |
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 39 | 20 | 83 | 62 | |
Interest Income Recognized, With an allowance recorded | 0 | 1 | 0 | 1 | |
Manufactured housing | |||||
Recorded Investment Net of Charge offs | |||||
Recorded Investment Net of Charge Offs, With no related allowance recorded | 9,091 | 9,091 | 8,300 | ||
Recorded Investment Net of Charge Offs, With an allowance recorded | 0 | 0 | |||
Unpaid Principal Balance | |||||
Unpaid Principal Balance, With no related allowance recorded | 9,091 | 9,091 | $ 8,300 | ||
Unpaid Principal Balance, With an allowance recorded | 0 | 0 | |||
Related Allowance | 0 | 0 | |||
Average Recorded Investment | |||||
Average Recorded Investment, With no related allowance recorded | 8,971 | 7,061 | 8,785 | 4,855 | |
Average Recorded Investment, With an allowance recorded | 0 | 0 | |||
Interest Income Recognized | |||||
Interest Income Recognized, With no related allowance recorded | 9 | $ 131 | 290 | $ 339 | |
Interest Income Recognized, With an allowance recorded | $ 0 | $ 0 |
Loans Receivable and Allowanc54
Loans Receivable and Allowance for Loan Losses - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)Loan | Sep. 30, 2015USD ($)Loan | Sep. 30, 2016USD ($)Loan | Sep. 30, 2015USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 10 | 22 | 52 | 132 |
Recorded Investment | $ | $ 533 | $ 888 | $ 3,927 | $ 5,930 |
Extensions of maturity | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 0 | 1 | 3 | 1 |
Recorded Investment | $ | $ 0 | $ 183 | $ 1,995 | $ 183 |
Interest-rate reductions | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 10 | 21 | 49 | 131 |
Recorded Investment | $ | $ 533 | $ 705 | $ 1,932 | $ 5,747 |
Loans Receivable and Allowanc55
Loans Receivable and Allowance for Loan Losses - Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)Loan | Sep. 30, 2015USD ($)Loan | Sep. 30, 2016USD ($)Loan | Sep. 30, 2015USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 10 | 22 | 52 | 132 |
Recorded Investment | $ | $ 533 | $ 888 | $ 3,927 | $ 5,930 |
Commercial and industrial (including owner occupied commercial real estate) | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 0 | 1 | 1 | 2 |
Recorded Investment | $ | $ 0 | $ 183 | $ 76 | $ 527 |
Commercial real estate - non-owner occupied | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 0 | 0 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 0 | $ 1,844 | $ 209 |
Manufactured housing | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 10 | 20 | 47 | 127 |
Recorded Investment | $ | $ 533 | $ 699 | $ 1,716 | $ 4,993 |
Residential real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | Loan | 0 | 1 | 3 | 2 |
Recorded Investment | $ | $ 0 | $ 6 | $ 291 | $ 201 |
Loans Receivable and Allowanc56
Loans Receivable and Allowance for Loan Losses - Changes in Accretable Yield Related to Purchased-credit-impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in Accretable Yield | ||||
Accretable yield balance, beginning of period | $ 11,165 | $ 14,302 | $ 12,947 | $ 17,606 |
Accretion to interest income | (460) | (551) | (1,429) | (1,790) |
Reclassification from nonaccretable difference and disposals, net | 107 | 10 | (706) | (2,055) |
Accretable yield balance, end of period | $ 10,812 | $ 13,761 | $ 10,812 | $ 13,761 |
Loans Receivable and Allowanc57
Loans Receivable and Allowance for Loan Losses - Schedule of Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Ending balance as of June 30, | $ 38,097 | $ 37,491 | $ 35,647 | $ 30,932 |
Provision for loan losses | 88 | 1,989 | 3,143 | 10,548 |
Charge-offs | (666) | (5,932) | (1,848) | (8,880) |
Recoveries | 378 | 275 | 955 | 1,223 |
Ending balance as of September 30, | $ 37,897 | $ 33,823 | $ 37,897 | $ 33,823 |
Loans Receivable and Allowanc58
Loans Receivable and Allowance for Loan Losses - Schedule of FDIC Loss Sharing Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
FDIC Indemnification Asset [Roll Forward] | ||||
Ending balance as of June 30, | $ (1,381) | $ (1,455) | $ (2,083) | $ 2,320 |
Effect attributable to FDIC loss share arrangements | 0 | (105) | 289 | (3,845) |
Increased estimated cash flows from covered OREO | 0 | 3,138 | 0 | 3,138 |
Other activity, net | 0 | 61 | (255) | 529 |
Cash payments to (receipts from) the FDIC | 1,381 | (1,437) | 2,049 | (1,940) |
Ending balance as of September 30, | 0 | 202 | 0 | 202 |
Provision for loan losses | 88 | 1,989 | 3,143 | 10,548 |
Effect attributable to FDIC loss share arrangements | 0 | 105 | (289) | 3,845 |
Provision for loan losses | $ 88 | $ 2,094 | $ 2,854 | $ 14,393 |
Loans Receivable and Allowanc59
Loans Receivable and Allowance for Loan Losses - Credit Ratings of Covered and Non-Covered Loan Portfolio (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | $ 6,016,899 | $ 5,453,145 |
Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 5,846,309 | 5,294,352 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 41,102 | 24,506 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 21,664 | 17,089 |
Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 100,272 | 107,945 |
Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 7,552 | 9,253 |
Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,150,298 | 2,909,439 |
Multi-family | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,145,089 | 2,907,362 |
Multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 379 | 661 |
Multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 4,830 | 1,416 |
Multi-family | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Multi-family | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 905,250 | 803,159 |
Commercial and industrial | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 874,940 | 784,892 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 23,147 | 14,052 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 7,163 | 4,215 |
Commercial and industrial | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial and industrial | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 391,471 | 308,241 |
Commercial real estate - owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 377,917 | 295,762 |
Commercial real estate - owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 9,032 | 7,840 |
Commercial real estate - owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 4,522 | 4,639 |
Commercial real estate - owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - owner occupied | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - non-owner occupied | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 1,151,099 | 956,255 |
Commercial real estate - non-owner occupied | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 1,140,415 | 950,886 |
Commercial real estate - non-owner occupied | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 8,544 | 1,671 |
Commercial real estate - non-owner occupied | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 2,140 | 3,698 |
Commercial real estate - non-owner occupied | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Commercial real estate - non-owner occupied | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 83,835 | 87,240 |
Construction | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 83,835 | 87,240 |
Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Construction | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 227,122 | 271,613 |
Residential real estate | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 224,113 | 268,210 |
Residential real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 282 |
Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,009 | 3,121 |
Residential real estate | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Residential real estate | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Manufactured housing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 104,404 | 113,490 |
Manufactured housing | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Manufactured housing | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Manufactured housing | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Manufactured housing | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 96,911 | 104,484 |
Manufactured housing | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 7,493 | 9,006 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,420 | 3,708 |
Other | Pass/Satisfactory | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Other | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 0 | 0 |
Other | Performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | 3,361 | 3,461 |
Other | Non-performing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable, gross | $ 59 | $ 247 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 16, 2016 | Sep. 15, 2016 | Aug. 11, 2016 | Jun. 15, 2016 | Apr. 28, 2016 | Mar. 15, 2016 | Jan. 29, 2016 | May 18, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||||||||
Preferred stock, par value (usd per share) | $ 1 | $ 1 | |||||||||
Net proceeds from issuance of preferred stock | $ 161,980 | $ 55,569 | |||||||||
Common stock, par value (usd per share) | $ 1 | $ 1 | |||||||||
Common stock, shares issued (shares) | 28,074,477 | 27,432,061 | |||||||||
Proceeds from issuance of common stock | $ 6,567 | $ 730 | |||||||||
Series F Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, new issues (shares) | 3,400,000 | ||||||||||
Preferred stock, par value (usd per share) | $ 1 | ||||||||||
Preferred stock share price (usd per share) | $ 25 | ||||||||||
Preferred stock, fixed dividend rate, percent | 6.00% | ||||||||||
Net proceeds from issuance of preferred stock | $ 82,300 | ||||||||||
Preferred stock. redemption price (usd per share) | $ 25 | ||||||||||
Series F Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, variable dividend rate, percent | 4.762% | ||||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, par value (usd per share) | $ 1 | ||||||||||
Common stock, maximum aggregate offering price | $ 50,000 | ||||||||||
Common stock, shares issued (shares) | 219,386 | ||||||||||
Proceeds from issuance of common stock | $ 5,500 | ||||||||||
Series E Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, new issues (shares) | 2,300,000 | ||||||||||
Preferred stock, par value (usd per share) | $ 1 | ||||||||||
Preferred stock share price (usd per share) | $ 25 | ||||||||||
Preferred stock, fixed dividend rate, percent | 6.45% | ||||||||||
Net proceeds from issuance of preferred stock | $ 55,600 | ||||||||||
Preferred stock. redemption price (usd per share) | $ 25 | ||||||||||
Preferred stock, dividend declared (usd per share) | $ 0.403125 | $ 0.210521 | |||||||||
Series E Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, variable dividend rate, percent | 5.14% | ||||||||||
Series D Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, new issues (shares) | 1,000,000 | ||||||||||
Preferred stock, par value (usd per share) | $ 1 | ||||||||||
Preferred stock share price (usd per share) | $ 25 | ||||||||||
Preferred stock, fixed dividend rate, percent | 6.50% | ||||||||||
Net proceeds from issuance of preferred stock | $ 24,100 | ||||||||||
Preferred stock. redemption price (usd per share) | $ 25 | ||||||||||
Preferred stock, dividend declared (usd per share) | 0.40625 | 0.40625 | $ 0.2076 | ||||||||
Series D Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, variable dividend rate, percent | 5.09% | ||||||||||
Series C Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, new issues (shares) | 2,300,000 | ||||||||||
Preferred stock, par value (usd per share) | $ 1 | ||||||||||
Preferred stock share price (usd per share) | $ 25 | ||||||||||
Preferred stock, fixed dividend rate, percent | 7.00% | ||||||||||
Net proceeds from issuance of preferred stock | $ 55,600 | ||||||||||
Preferred stock. redemption price (usd per share) | $ 25 | ||||||||||
Preferred stock, dividend declared (usd per share) | $ 0.4375 | $ 0.4375 | $ 0.4375 | ||||||||
Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, variable dividend rate, percent | 5.30% |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Option Activity (Detail) - Stock Option $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of Options, Outstanding, Beginning balance (shares) | shares | 3,731,761 |
Number of Options, Granted (shares) | shares | 20,000 |
Number of Options, Exercised (shares) | shares | (44,337) |
Number of Options, Forfeited (shares) | shares | (1,275) |
Number of Options, Outstanding, Ending balance (shares) | shares | 3,706,149 |
Number of Options, Exercisable (shares) | shares | 1,095,912 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average Exercise Price, Outstanding, Beginning balance (usd per share) | $ / shares | $ 14.33 |
Weighted-average Exercise Price, Granted (usd per share) | $ / shares | 25.18 |
Weighted average Exercise Price, Exercised (usd per share) | $ / shares | 10.28 |
Weighted-average Exercise Price, Forfeited (usd per share) | $ / shares | 18.72 |
Weighted-average Exercise Price, Outstanding, Ending balance (usd per share) | $ / shares | 14.44 |
Weighted-average Exercise Price, Exercisable (usd per share) | $ / shares | $ 10.03 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted-average Remaining Contractual Term in Years, Outstanding (years) | 6 years 25 days |
Weighted-average Remaining Contractual Term in Years, Exercisable (years) | 4 years 11 days |
Aggregate Intrinsic Value, Exercised | $ | $ 623 |
Aggregate Intrinsic Value, Outstanding | $ | 39,745 |
Aggregate Intrinsic Value, Exercisable | $ | $ 16,584 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash received from exercise of stock options | $ 0.5 | |||
Tax benefit from exercise of stock options | 0.2 | |||
Share-based compensation expense | $ 1.7 | $ 1.2 | $ 4.6 | $ 3.6 |
Common Stock | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred compensation shares issued (shares) | 22,961 | |||
Noninterest expense directors fees | $ 0.6 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (shares) | 247,285 | |||
Restricted Stock Units | Bonus Recognition and Retention Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (shares) | 86,654 | |||
Vesting period | 5 years | |||
Restricted Stock Units | Restated and Amended 2004 Incentive Equity and Deferred Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units granted (shares) | 160,631 | |||
Vesting period | 3 years | |||
Vesting amount per year | 33.33% |
Share-Based Compensation - Su63
Share-Based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock Units | 9 Months Ended |
Sep. 30, 2016$ / 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) | shares | 873,264 |
Restricted Stock Units, Granted (shares) | shares | 247,285 |
Restricted Stock Units, Vested (shares) | shares | (97,664) |
Restricted Stock Units, Forfeited (shares) | shares | (973) |
Restricted Stock Units, Outstanding and unvested, Ending balance (shares) | shares | 1,021,912 |
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, Beginning balance (usd per share) | $ / shares | $ 14.24 |
Weighted-average Grant-date Fair Value, Granted (usd per share) | $ / shares | 23.85 |
Weighted-average Grant-date Fair Value, Vested (usd per share) | $ / shares | 14.82 |
Weighted-average Grant-date Fair Value, Forfeited (usd per share) | $ / shares | 19.86 |
Weighted-average Grant-date Fair Value, Outstanding and unvested, Ending balance (usd per share) | $ / shares | $ 16.51 |
Regulatory Capital - Narrative
Regulatory Capital - Narrative (Details) | Sep. 30, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Jan. 01, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to risk weighted assets), for capital adequacy purposes ratio | 6.625% | 6.625% | 6.00% | 6.00% |
Tier 1 capital (to risk weighted assets), to be well capitalized under prompt corrective action provisions ratio | 8.00% | |||
Capital conservation buffer, excess of minimum capital ratio | 2.50% | |||
Capital conservation buffer to risk weighted assets, year one | 0.625% | |||
Capital conservation buffer to risk weighted assets, year two | 1.25% | |||
Capital conservation buffer to risk weighted assets, year three | 1.875% | |||
Capital conservation buffer to risk weighted assets, year four and thereafter | 2.50% | |||
Common equity Tier 1 (to risk weighted assets), for capital adequacy purposes ratio | 5.125% | 5.125% | 4.50% | |
Total capital (to risk weighted assets), for capital adequacy purposes ratio | 8.625% | 8.625% | 8.00% | |
Customers Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier 1 capital (to risk weighted assets), for capital adequacy purposes ratio | 6.625% | 6.625% | 6.00% | |
Tier 1 capital (to risk weighted assets), to be well capitalized under prompt corrective action provisions ratio | 8.00% | 8.00% | ||
Common equity Tier 1 (to risk weighted assets), for capital adequacy purposes ratio | 5.125% | 5.125% | 4.50% | |
Total capital (to risk weighted assets), for capital adequacy purposes ratio | 8.625% | 8.625% | 8.00% |
Regulatory Capital - Summary of
Regulatory Capital - Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Jan. 01, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 (to risk weighted assets), Actual Amount | $ 553,391 | $ 500,624 | ||
Tier 1 capital (to risk weighted assets), Actual Amount | 770,070 | 556,193 | ||
Total capital (to risk weighted assets), Actual Amount | 904,305 | 698,323 | ||
Tier 1 capital (to average assets), Actual Amount | $ 770,070 | $ 556,193 | ||
Common equity Tier 1 ( to risk weighted assets), Actual Ratio | 7.117% | 7.61% | ||
Tier 1 capital (to risk weighted assets), Actual Ratio | 9.904% | 8.46% | ||
Total capital (to risk weighted assets), Actual Ratio | 11.63% | 10.62% | ||
Tier 1 capital (to average assets), Actual Ratio | 8.182% | 7.16% | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Amount | $ 398,497 | $ 296,014 | ||
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 515,130 | 394,685 | ||
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 670,641 | 526,247 | ||
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount | $ 376,467 | $ 310,812 | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Ratio | 5.125% | 5.125% | 4.50% | |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 6.625% | 6.625% | 6.00% | 6.00% |
Total capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 8.625% | 8.625% | 8.00% | |
Tier 1 capital (to average assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | ||
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | |||
Customers Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Common equity Tier 1 (to risk weighted assets), Actual Amount | $ 772,484 | $ 565,217 | ||
Tier 1 capital (to risk weighted assets), Actual Amount | 772,484 | 565,217 | ||
Total capital (to risk weighted assets), Actual Amount | 919,234 | 710,864 | ||
Tier 1 capital (to average assets), Actual Amount | $ 772,484 | $ 565,217 | ||
Common equity Tier 1 ( to risk weighted assets), Actual Ratio | 9.971% | 8.62% | ||
Tier 1 capital (to risk weighted assets), Actual Ratio | 9.971% | 8.62% | ||
Total capital (to risk weighted assets), Actual Ratio | 11.865% | 10.85% | ||
Tier 1 capital (to average assets), Actual Ratio | 8.229% | 7.30% | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Amount | $ 397,045 | $ 294,916 | ||
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 513,253 | 393,221 | ||
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount | 668,198 | 524,295 | ||
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount | $ 375,508 | $ 309,883 | ||
Common equity Tier 1 (to risk weighted assets), For Capital Adequacy Purposes Ratio | 5.125% | 5.125% | 4.50% | |
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 6.625% | 6.625% | 6.00% | |
Total capital (to risk weighted assets), For Capital Adequacy Purposes Ratio | 8.625% | 8.625% | 8.00% | |
Tier 1 capital (to average assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% | ||
Common equity Tier 1 (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 503,569 | $ 425,990 | ||
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 619,777 | 524,295 | ||
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 774,722 | 655,369 | ||
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 469,385 | $ 387,353 | ||
Common equity Tier 1 (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% | ||
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% | ||
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% | ||
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Disclosures About Fair Value 66
Disclosures About Fair Value of Financial Instruments - Narrative (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans held for sale, average life from purchase to sale | 20 days |
Five-year Senior Unsecured Notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Issuance of senior unsecured notes | $ 63 |
Unsecured Debt | Five-year Senior Unsecured Notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Senior unsecured notes term | 5 years |
Disclosures About Fair Value 67
Disclosures About Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Carrying Amount | $ 265,588 | $ 264,593 | $ 383,399 | $ 371,023 |
Cash and cash equivalents, Estimated Fair Value | 265,588 | 264,593 | ||
Investment securities, available for sale, Carrying Amount | 530,896 | 560,253 | ||
Investment securities, Estimated Fair Value | 530,896 | 560,253 | ||
Loans held for sale, Carrying Amount | 2,402,708 | 1,797,064 | ||
Loans held for sale, Estimated Fair Value | 2,402,848 | 1,797,458 | ||
Loans receivable, net of allowance for loan losses, Carrying Amount | 5,979,098 | 5,417,832 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 5,998,001 | 5,353,903 | ||
FHLB, Federal Reserve Bank and other restricted stock, Carrying Amount | 71,621 | 90,841 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 71,621 | 90,841 | ||
Derivative assets | 18,789 | 9,295 | ||
Deposits, Carrying Amount | 7,388,970 | 5,909,501 | $ 5,785,194 | |
Deposits, Estimated Fair Value | 7,398,218 | 5,911,754 | ||
Federal funds purchased, Carrying Amount | 52,000 | 70,000 | ||
Federal funds purchased, Estimated Fair Value | 52,000 | 70,000 | ||
FHLB advances, Carrying Amount | 1,036,700 | 1,625,300 | ||
FHLB advances, Estimated Fair Value | 1,037,706 | 1,625,468 | ||
Other borrowings, Carrying Amount | 86,957 | 86,457 | ||
Other borrowings, Estimated Fair Value | 88,967 | 93,804 | ||
Subordinated debt, Carrying Amount | 108,758 | 108,685 | ||
Subordinated debt, Estimated Fair Value | 111,650 | 110,825 | ||
Derivative liabilities | 25,466 | 13,932 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Estimated Fair Value | 265,588 | 264,593 | ||
Investment securities, Estimated Fair Value | 16,736 | 19,212 | ||
Loans held for sale, Estimated Fair Value | 0 | 0 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 0 | 0 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Deposits, Estimated Fair Value | 4,459,937 | 3,561,905 | ||
Federal funds purchased, Estimated Fair Value | 52,000 | 70,000 | ||
FHLB advances, Estimated Fair Value | 851,700 | 1,365,300 | ||
Other borrowings, Estimated Fair Value | 63,655 | 68,867 | ||
Subordinated debt, Estimated Fair Value | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Estimated Fair Value | 0 | 0 | ||
Investment securities, Estimated Fair Value | 514,160 | 541,041 | ||
Loans held for sale, Estimated Fair Value | 2,377,445 | 1,757,807 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 0 | 0 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 71,621 | 90,841 | ||
Derivative assets | 18,704 | 9,250 | ||
Deposits, Estimated Fair Value | 2,938,281 | 2,349,849 | ||
Federal funds purchased, Estimated Fair Value | 0 | 0 | ||
FHLB advances, Estimated Fair Value | 186,006 | 260,168 | ||
Other borrowings, Estimated Fair Value | 25,312 | 24,937 | ||
Subordinated debt, Estimated Fair Value | 111,650 | 110,825 | ||
Derivative liabilities | 25,466 | 13,932 | ||
Significant Unobservable Inputs (Level 3) | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, Estimated Fair Value | 0 | 0 | ||
Investment securities, Estimated Fair Value | 0 | 0 | ||
Loans held for sale, Estimated Fair Value | 25,403 | 39,651 | ||
Loans receivable, net of allowance for loan losses, Estimated Fair Value | 5,998,001 | 5,353,903 | ||
FHLB, Federal Reserve Bank and other restricted stock, Estimated Fair Value | 0 | 0 | ||
Derivative assets | 85 | 45 | ||
Deposits, Estimated Fair Value | 0 | 0 | ||
Federal funds purchased, Estimated Fair Value | 0 | 0 | ||
FHLB advances, Estimated Fair Value | 0 | 0 | ||
Other borrowings, Estimated Fair Value | 0 | 0 | ||
Subordinated debt, Estimated Fair Value | 0 | 0 | ||
Derivative liabilities | $ 0 | $ 0 |
Disclosures About Fair Value 68
Disclosures About Fair Value of Financial Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | $ 2,927,130 | $ 2,327,355 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 7,574 | 4,704 |
Specific reserves related to impaired loans | 3,404 | 2,273 |
Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 18,789 | 9,295 |
Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 2,377,445 | 1,757,807 |
Derivative liabilities | ||
Liabilities | ||
Derivatives | 25,466 | 13,932 |
Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 4,929 | 4,346 |
Specific reserves related to impaired loans | 3,404 | 2,273 |
Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 2,645 | 358 |
Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 254,320 | 298,104 |
Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 213,799 | 202,870 |
Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 46,041 | 40,067 |
Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 16,736 | 19,212 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 16,736 | 19,212 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative liabilities | ||
Liabilities | ||
Derivatives | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 16,736 | 19,212 |
Significant Other Observable Inputs (Level 2) | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 2,910,309 | 2,308,098 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 18,704 | 9,250 |
Significant Other Observable Inputs (Level 2) | Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 2,377,445 | 1,757,807 |
Significant Other Observable Inputs (Level 2) | Derivative liabilities | ||
Liabilities | ||
Derivatives | 25,466 | 13,932 |
Significant Other Observable Inputs (Level 2) | Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 254,320 | 298,104 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 213,799 | 202,870 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 46,041 | 40,067 |
Significant Other Observable Inputs (Level 2) | Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 85 | 45 |
Assets | ||
Assets measured at fair value on a nonrecurring basis | 7,574 | 4,704 |
Significant Unobservable Inputs (Level 3) | Derivative assets | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 85 | 45 |
Significant Unobservable Inputs (Level 3) | Loans held for sale – fair value option | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Derivative liabilities | ||
Liabilities | ||
Derivatives | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans, net of specific reserves | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 4,929 | 4,346 |
Significant Unobservable Inputs (Level 3) | Other real estate owned | ||
Assets | ||
Assets measured at fair value on a nonrecurring basis | 2,645 | 358 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed residential mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Agency-guaranteed commercial real estate mortgage-backed securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Corporate notes | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Available-for-sale Securities | Equity securities | ||
Available-for-sale securities: | ||
Assets measured at fair value on a recurring basis | $ 0 | $ 0 |
Disclosures About Fair Value 69
Disclosures About Fair Value of Financial Instruments - Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Detail) - Significant Unobservable Inputs (Level 3) - Residential Mortgage Loan Commitments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance at beginning | $ 157 | $ 71 | $ 45 | $ 43 |
Issuances | 85 | 70 | 315 | 228 |
Settlements | (157) | (71) | (275) | (201) |
Balance at ending | $ 85 | $ 70 | $ 85 | $ 70 |
Disclosures About Fair Value 70
Disclosures About Fair Value of Financial Instruments - Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 3,897 | $ 5,057 |
Impaired loans, net of specific reserves | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 8.00% | 8.00% |
Other real estate owned | Collateral Appraisal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 8.00% | 8.00% |
Residential mortgage loan commitments | Adjusted Market Bid | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 90.00% | 94.00% |
Fair Value Estimate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 4,929 | $ 4,346 |
Other real estate owned | 2,645 | 358 |
Residential mortgage loan commitments | $ 85 | $ 45 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($)DerivativeSwap | Dec. 31, 2015USD ($)DerivativeSwap | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Reclassification adjustment from accumulated other comprehensive income | $ 2.4 | |
Assets needed for immediate settlement of derivatives in a net liability position | 26.5 | |
Minimum collateral with counterparties | $ 27.7 | |
Minimum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 30 days | |
Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative expiration period | 60 days | |
Not Designated as Hedging Instrument | Residential mortgage loan commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 5.2 | $ 2.8 |
Interest Rate Swaps | Derivative Designated as Cash Flow Hedges | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Number of outstanding interest rate derivatives (derivative) | Derivative | 1 | 1 |
Aggregate notional amount | $ 150 | $ 150 |
Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 701.7 | $ 461 |
Number of interest rate swaps (swap) | Swap | 74 | 62 |
Credit Contract | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Aggregate notional amount | $ 35.7 | $ 19.3 |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | $ 0 | $ 0 |
Derivative Liabilities, Fair Value | 25,434 | 13,932 |
Other Assets | Derivative Designated as Cash Flow Hedges | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 0 | 0 |
Other Assets | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 18,789 | 9,295 |
Other Assets | Not Designated as Hedging Instrument | Residential Mortgage Loan Commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 85 | 45 |
Other Assets | Not Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 18,453 | 9,088 |
Other Assets | Not Designated as Hedging Instrument | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Assets, Fair Value | 251 | 162 |
Other Liabilities | Derivative Designated as Cash Flow Hedges | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 5,695 | 4,477 |
Other Liabilities | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 19,771 | 9,455 |
Other Liabilities | Not Designated as Hedging Instrument | Residential Mortgage Loan Commitments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 0 | 0 |
Other Liabilities | Not Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | 19,739 | 9,455 |
Other Liabilities | Not Designated as Hedging Instrument | Credit Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Liabilities, Fair Value | $ 32 | $ 0 |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities - Effect of Derivative Financial Instruments on Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flow Hedges | Interest Expense | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 556 | $ (1,464) | $ (1,577) | $ (2,353) |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (703) | 0 | (1,306) | 0 |
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income (Loss) Recognized in Earnings | 1,651 | 242 | 1,548 | 944 |
Not Designated as Hedging Instrument | Other Non-interest Income | Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income (Loss) Recognized in Earnings | 1,737 | 192 | 1,250 | 902 |
Not Designated as Hedging Instrument | Other Non-interest Income | Credit Contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income (Loss) Recognized in Earnings | (15) | 51 | 257 | 15 |
Not Designated as Hedging Instrument | Mortgage Banking Income | Residential Mortgage Loan Commitments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Income (Loss) Recognized in Earnings | $ (71) | $ (1) | $ 41 | $ 27 |
Derivative Instruments and He74
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Assets [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 18,789 | $ 9,295 |
Interest Rate Swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Assets | 0 | 0 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral received | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 0 | $ 0 |
Derivative Instruments and He75
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 25,466 | $ 13,932 |
Interest Rate Swaps | ||
Offsetting Liabilities [Line Items] | ||
Gross Amount of Recognized Liabilities | 25,434 | 13,932 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 25,434 | 13,932 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged | 25,434 | 13,932 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 0 | $ 0 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)Segment | Sep. 30, 2015USD ($) | Jun. 30, 2016Segment | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments (segment) | Segment | 2 | 1 | ||||
Interest income | $ 84,212 | $ 63,736 | $ 238,931 | $ 182,137 | ||
Interest expense | 19,627 | 13,802 | 53,561 | 39,315 | ||
Net interest income | 64,585 | 49,934 | 185,370 | 142,822 | ||
Provision for loan losses | 88 | 2,094 | 2,854 | 14,393 | ||
Non-interest income | 27,486 | 6,171 | 41,237 | 18,297 | ||
Non-interest expense | 56,218 | 30,307 | 128,306 | 83,432 | ||
Income before income tax expense | 35,765 | 23,704 | 95,447 | 63,294 | ||
Income tax expense | 14,576 | 8,415 | 37,129 | 22,497 | ||
Net income | 21,189 | 15,289 | 58,318 | 40,797 | ||
Preferred stock dividends | 2,552 | 980 | 5,900 | 1,487 | ||
Net income available to common shareholders | 18,637 | 14,309 | 52,418 | 39,310 | ||
Goodwill and other intangibles | 16,924 | 3,654 | 16,924 | 3,654 | $ 3,651 | |
Total assets | 9,602,610 | 7,596,176 | 9,602,610 | 7,596,176 | 8,398,205 | |
Total deposits | $ 7,388,970 | 5,785,194 | 7,388,970 | 5,785,194 | $ 5,909,501 | |
Operating Segments | Community Business Banking | ||||||
Segment Reporting Information [Line Items] | ||||||
Effective tax rate | 38.00% | |||||
Interest income | $ 82,828 | 62,153 | 234,513 | 177,215 | ||
Interest expense | 19,620 | 13,795 | 53,539 | 39,299 | ||
Net interest income | 63,208 | 48,358 | 180,974 | 137,916 | ||
Provision for loan losses | (162) | 2,094 | 2,605 | 14,393 | ||
Non-interest income | 11,121 | 6,160 | 22,241 | 18,272 | ||
Non-interest expense | 36,864 | 28,467 | 101,053 | 78,344 | ||
Income before income tax expense | 37,627 | 23,957 | 99,557 | 63,451 | ||
Income tax expense | 15,284 | 8,511 | 38,691 | 22,557 | ||
Net income | 22,343 | 15,446 | 60,866 | 40,894 | ||
Preferred stock dividends | 2,552 | 980 | 5,900 | 1,487 | ||
Net income available to common shareholders | 19,791 | 14,466 | 54,966 | 39,407 | ||
Goodwill and other intangibles | 3,642 | 3,654 | 3,642 | 3,654 | ||
Total assets | 9,532,281 | 7,593,556 | 9,532,281 | 7,593,556 | ||
Total deposits | 6,855,788 | 5,423,717 | 6,855,788 | 5,423,717 | ||
Operating Segments | BankMobile | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 1,384 | 1,583 | 4,418 | 4,922 | ||
Interest expense | 7 | 7 | 22 | 16 | ||
Net interest income | 1,377 | 1,576 | 4,396 | 4,906 | ||
Provision for loan losses | 250 | 0 | 249 | 0 | ||
Non-interest income | 16,365 | 11 | 18,996 | 25 | ||
Non-interest expense | 19,354 | 1,840 | 27,253 | 5,088 | ||
Income before income tax expense | (1,862) | (253) | (4,110) | (157) | ||
Income tax expense | (708) | (96) | (1,562) | (60) | ||
Net income | (1,154) | (157) | (2,548) | (97) | ||
Preferred stock dividends | 0 | 0 | 0 | 0 | ||
Net income available to common shareholders | (1,154) | (157) | (2,548) | (97) | ||
Goodwill and other intangibles | 13,282 | 0 | 13,282 | 0 | ||
Total assets | 70,329 | 2,620 | 70,329 | 2,620 | ||
Total deposits | 533,182 | 361,477 | 533,182 | 361,477 | ||
Segment Reconciling Items | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | $ 1,400 | $ 1,600 | $ 4,400 | $ 4,900 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 09, 2016 | Nov. 04, 2016 | Aug. 11, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Subsequent Event [Line Items] | |||||
Proceeds from issuance of common stock | $ 6,567 | $ 730 | |||
Common Stock | |||||
Subsequent Event [Line Items] | |||||
Proceeds from issuance of common stock | $ 5,500 | ||||
Common Stock | Underwritten Public Offering | Scenario, Forecast | |||||
Subsequent Event [Line Items] | |||||
Proceeds from issuance of common stock | $ 50,800 | ||||
Proceeds from issuance of common stock if option is exercised | $ 58,400 | ||||
Common Stock | Underwritten Public Offering | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Issuance of stock (shares) | 2,100,000 | ||||
Common stock share price (usd per share) | $ 25 | ||||
Discount on shares (usd per share) | $ 0.75 | ||||
Option period to purchase additional shares | 30 days | ||||
Additional stock available for purchase (shares) | 315,000 |