10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x Quarterly report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2013

¨ Transition report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     .

333-166225

(Commission File number)

(Exact name of registrant as specified in its charter)

Pennsylvania	27-2290659
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

1015 Penn Avenue

Suite 103

Wyomissing PA 19610

(Address of principal executive offices)

(610) 933-2000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller Reporting Company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes  ¨    No  x

On August 6, 2013, 19,970,122 shares of Voting Common Stock and 4,691,897 shares of Class B Non-Voting Common Stock were issued and outstanding.

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

Customers Bancorp, Inc.

Table of Contents

Part I
Item 1.	Customers Bancorp, Inc. Consolidated Financial Statements as of June 30, 2013 and for the three and six month periods ended June 30, 2013 (unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	54
Item 4.	Controls and Procedures	54
PART II
Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	55
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 3.	Defaults Upon Senior Securities	57
Item 4.	Mine Safety Disclosures	57
Item 5.	Other Information	57
Item 6.	Exhibits	58
SIGNATURES		59
Ex-31.1
Ex-31.2
Ex-32.1
Ex-32.2
Ex-101

2

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET — UNAUDITED

	June 30, 2013			December 31, 2012
	(dollars in thousands, except share data)
ASSETS
Cash and due from banks	$	10,728		$	12,908
Interest earning deposits		194,957			173,108
Cash and cash equivalents		205,685			186,016
Investment securities available for sale, at fair value		182,314			129,093
Loans held for sale (including $1,148,001 and $1,248,935 of mortgage warehouse loans at fair value at June 30, 2013 and December 31, 2012, respectively)		1,414,943			1,439,889
Loans receivable not covered under Loss Sharing Agreements with the FDIC		1,753,658			1,216,941
Loans receivable covered under Loss Sharing Agreements with the FDIC		91,614			107,526
Less: Allowance for loan losses		(28,142	)		(25,837	)
Total loans receivable, net		1,817,130			1,298,630
FDIC loss sharing receivable		14,169			12,343
Bank premises and equipment, net		10,170			9,672
Bank-owned life insurance		67,762			56,191
Other real estate owned (2013 $4,362; 2012 $4,109 covered under Loss Sharing Agreements with the FDIC)		10,607			8,114
Goodwill and other intangibles		3,683			3,689
Restricted stock		33,188			30,163
Accrued interest receivable and other assets		33,607			27,434
Total assets	$	3,793,258		$	3,201,234
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand, non-interest bearing	$	265,842		$	219,687
Interest bearing		2,509,867			2,221,131
Total deposits		2,775,709			2,440,818
Federal funds purchased		120,000			5,000
Other borrowings		505,000			471,000
Subordinated debt		2,000			2,000
Accrued interest payable and other liabilities		10,776			12,941
Total liabilities		3,413,485			2,931,759
Shareholders’ equity:
Preferred stock, no par value or as set by the board; 100,000,000 shares authorized; none issued		0			0
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 24,709,638 shares issued and 24,662,019 outstanding at June 30, 2013 and 18,507,121 shares issued and 18,459,502 outstanding at December 31, 2012		24,710			18,507
Additional paid in capital		305,364			212,090
Retained earnings		53,729			38,314
Accumulated other comprehensive (loss) income		(3,530	)		1,064
Less: cost of treasury stock; 47,619 shares at June 30, 2013 and December 31, 2012		(500	)		(500	)
Total shareholders’ equity		379,773			269,475
Total liabilities and shareholders’ equity	$	3,793,258		$	3,201,234

See accompanying notes to the unaudited consolidated financial statements.

3

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(dollars in thousands, except per share data)
Interest income:
Loans held for sale	$	11,157	$	1,469	$	22,041	$	2,491
Loans receivable, taxable, including fees		19,099		15,881		35,126		30,482
Loans receivable, non-taxable, including fees		97		41		169		55
Investment securities, taxable		1,082		2,219		1,911		5,131
Investment securities, non-taxable		0		21		0		43
Other		114		69		222		134
Total interest income		31,549		19,700		59,469		38,336
Interest expense:
Deposits		5,136		5,424		10,272		10,496
Federal funds purchased		74		1		79		3
Borrowed funds		330		106		568		240
Subordinated debt		17		17		33		35
Total interest expense		5,557		5,548		10,952		10,774
Net interest income		25,992		14,152		48,517		27,562
Provision for loan losses		4,620		2,738		5,720		4,538
Net interest income after provision for loan losses		21,372		11,414		42,797		23,024
Non-interest income
Deposit fees		159		117		289		233
Mortgage warehouse transactional fees		3,868		3,384		7,536		5,483
Bank-owned life insurance		567		323		1,043		589
Gain on sale of investment securities		0		8,797		0		9,006
Accretion of FDIC loss sharing receivable		2,505		0		3,722		655
Gain on sale of loans		358		339		408		339
Other		721		278		1,295		665
Total non-interest income		8,178		13,238		14,293		16,970
Non-interest expense
Salaries and employee benefits		8,508		5,598		15,905		11,095
Occupancy		2,110		1,849		4,020		3,228
Technology, communications and bank operations		1,061		691		1,902		1,338
Advertising and promotion		408		301		523		576
Professional services		1,252		769		1,958		1,655
FDIC assessments, taxes, and regulatory fees		1,058		867		2,405		1,536
Other real estate owned		525		709		561		815
Loan workout		72		543		746		902
Loss contingency		0		0		2,000		0
Stock-offering expenses		0		1,340		0		1,340
Other		1,901		1,907		3,355		2,716
Total non-interest expense		16,895		14,574		33,375		25,201
Income before income tax expense		12,655		10,078		23,715		14,793
Income tax expense		4,429		3,574		8,300		5,177
Net income	$	8,226	$	6,504	$	15,415	$	9,616
Basic earnings per share	$	0.39	$	0.57	$	0.78	$	0.85
Diluted earnings per share		0.38		0.56		0.76		0.83

See accompanying notes to the unaudited consolidated financial statements.

4

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME — UNAUDITED

	Three Months Ended June  30,						Six Months Ended June  30,
	2013			2012			2013			2012
	(dollars in thousands)
Net income	$	8,226		$	6,504		$	15,415		$	9,616
Other comprehensive income (loss):
Unrealized holding gains (losses) on securities arising during the period		(5,976	)		543			(7,069	)		629
Income tax effect		2,092			(190	)		2,475			(220	)
Unrealized holding gain on securities transferred from the held-to-maturity category into the available-for-sale category		0			8,509			0			8,509
Income tax effect		0			(2,978	)		0			(2,978	)
Reclassification adjustment for gains included in net income		0			(8,797	)		0			(9,006	)
Income tax effect		0			3,079			0			3,152
Other comprehensive income (loss), net of tax		(3,884	)		166			(4,594	)		86
Comprehensive income	$	4,342		$	6,670		$	10,821		$	9,702

See accompanying notes to the unaudited consolidated financial statements.

5

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED

	For the Six Months Ended June 30, 2013 and 2012
	Shares of Common Stock		Common Stock		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
	(dollars in thousands)
Balance, January 1, 2012		11,347,683	$	11,395	$	122,602	$	14,496	$	(245	)	$	(500	)	$	147,748
Comprehensive income								9,616		86						9,702
Share-based-compensation expense						1,266										1,266
Balance, June 30, 2012		11,347,683	$	11,395	$	123,868	$	24,112	$	(159	)	$	(500	)	$	158,716

	Shares of Common Stock		Common Stock		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
	(dollars in thousands)
Balance, January 1, 2013		18,459,502	$	18,507	$	212,090	$	38,314	$	1,064		$	(500	)	$	269,475
Comprehensive income								15,415		(4,594	)					10,821
Share-based-compensation expense						1,535										1,535
Public offering of common stock, net of costs of $5,811		6,179,104		6,179		91,511										97,690
Issuance of common stock under share-based-compensation arrangements		23,413		24		228										252
Balance, June 30, 2013		24,662,019	$	24,710	$	305,364	$	53,729	$	(3,530	)	$	(500	)	$	379,773

See accompanying notes to the unaudited consolidated financial statements.

6

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED

Six Months Ended June 30,	2013			2012
	(dollars in thousands)
Cash Flows from Operating Activities
Net income	$	15,415		$	9,616
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for loan losses		5,720			4,538
Loss contingency		2,000			0
Provision for depreciation and amortization		1,279			687
Stock-based compensation		1,535			1,266
Deferred taxes		1			188
Net amortization of investment securities premiums and discounts		228			193
Gain on sale of investment securities		0			(9,006	)
Gain on sale of loans		(408	)		(339	)
Origination/purchase of loans held for sale		(12,445,164	)		(1,359,676	)
Proceeds from the sale of loans held for sale		12,467,413			1,251,140
Net increase in FDIC loss sharing receivable		(4,815	)		(741	)
Amortization (accretion) of fair value discounts		(273	)		46
Net loss on sales of other real estate owned		180			601
Impairment charges on other real estate owned		13			0
Change in investment in bank-owned life insurance		(1,043	)		(633	)
(Increase) decrease in accrued interest receivable and other assets		(3,492	)		471
Decrease in accrued interest payable and other liabilities		(1,913	)		(3,185	)
Net Cash Provided by (Used In) Operating Activities		36,676			(104,834	)
Cash Flows from Investing Activities
Proceeds from maturities, calls and principal repayments of investment securities available for sale		9,252			23,543
Proceeds from sales of investment securities available for sale		0			306,610
Purchases of investment securities available for sale		(69,770	)		(108,249	)
Proceeds from maturities and principal repayments of investment securities held to maturity		0			50,968
Net increase in loans		(377,601	)		(312,624	)
Purchase of loan portfolio		(155,306	)		0
Proceeds from sales of SBA loans		3,900			3,689
Purchases of bank-owned life insurance		(10,465	)		(10,000	)
Net (purchases of) proceeds from restricted stock		(3,025	)		1,693
Reimbursements from the FDIC on loss sharing agreements		3,128			1,442
Purchases of bank premises and equipment		(1,344	)		(1,558	)
Proceeds from sales of other real estate owned		2,599			4,022
Net Cash Used In Investing Activities		(598,632	)		(40,464	)
Cash Flows from Financing Activities
Net increase in deposits		334,935			346,780
Net increase (decrease) in short-term borrowed funds		99,000			(153,000	)
Proceeds from FHLB borrowings		50,000			0
Net proceeds from stock offering		97,690			0
Net Cash Provided by Financing Activities		581,625			193,780
Net Increase in Cash and Cash Equivalents		19,669			48,482
Cash and Cash Equivalents - Beginning		186,016			73,570
Cash and Cash Equivalents - Ending	$	205,685		$	122,052
Supplementary Cash Flows Information
Interest paid	$	10,955		$	10,916
Income taxes paid		5,574			4,855
Non-cash items:
Transfer of loans to other real estate owned	$	5,424		$	4,941
Transfer of held to maturity investments to available for sale		0			268,671

See accompanying notes to the unaudited consolidated financial statements.

7

CUSTOMERS BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS

NOTE 1 — DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

Customers Bancorp, Inc. (the “Bancorp” or “Customers Bancorp”) is a Pennsylvania corporation formed on April 7, 2010 to facilitate the reorganization of Customers Bank (the “Bank” or “Customers Bank”) into a bank holding company structure. The reorganization was completed on September 17, 2011.

The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Bancorp believes that the disclosures made are adequate to make the information not misleading. The Bancorp’s unaudited consolidated interim financial statements reflect all adjustments that are, in the opinion of management, necessary for fair statement of the results of interim periods presented. Certain amounts reported in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation. These reclassifications did not significantly impact the Bancorp’s financial position or results of operations.

The accounting policies of Customers Bancorp, Inc. and Subsidiaries, as applied in the consolidated interim financial statements presented herein, are substantially the same as those followed on an annual basis as disclosed on pages 85 through 93 of Customers’ Annual Report on Form 10-K for the fiscal year ended December 31, 2012. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the latest Form 10-K.

Operating results for the three and six-month periods ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ended December 31, 2013.

The Bancorp evaluated its June 30, 2013 consolidated financial statements for subsequent events through the date the financial statements were issued. The Bancorp is not aware of any additional subsequent events which would require recognition or disclosure in the financial statements.

NOTE 2 — ACQUISITION ACTIVITY

CMS Bancorp Acquisition

Effective as of April 22, 2013, the Bancorp entered into an Amendment to the Agreement and Plan of Merger (“Amendment”) to that certain Agreement and Plan of Merger, dated as of August 10, 2012 (“Merger Agreement”), by and between the Bancorp and CMS Bancorp, Inc. (“CMS”).

The Amendment extended from April 30, 2013 to December 31, 2013 the initial date at which, if the merger of CMS with and into the Bancorp pursuant to the Merger Agreement, as amended, has not closed, either the Bancorp or CMS may terminate the Agreement, subject to the termination date being extended until March 31, 2014 under certain specified circumstances.

The Amendment also updated the definitions of “CMS Valuation” and “Customers Valuation,” establishing the valuation date for book value as of March 31, 2013. The exchange ratio will remain fixed for the pendency of the transaction, using the multiples of 0.95x for CMS common equity, and 1.25x for Customers common equity for purposes of calculating the exchange ratio.

Other key terms agreed to by the Bancorp and CMS under the Amendment provided for:

• CMS’s ability to have terminated the Merger Agreement, as amended, exercisable at any time after May 20, 2013, if either (i) the Bancorp had not made an investment in CMS of $1.5 million of CMS Preferred Stock, or (ii) the Bancorp and CMS had not agreed upon the terms of a $2.0 million senior secured lending facility that the Bancorp will have made available to CMS;

• the Bancorp’s payment of $300,000 to CMS as partial reimbursement for merger-related expenses incurred as of March 31, 2013; and

• the Bancorp to pay to CMS a termination fee of $1.0 million in the event the Merger Agreement, as amended, is terminated under certain provisions primarily relating to failure to consummate the Parent Merger due to non-receipt of required government approvals.

• On May 22, 2013, the Bancorp purchased $1.5 million (1,500 shares) of CMS Series A Noncumulative Perpetual Preferred Stock, satisfying the first obligation listed above.

• On April 23, 2013, the Bancorp paid to CMS $300,000, satisfying the second obligation listed above.

8

Acacia Federal Savings Bank Acquisition

On April 4, 2013, Customers Bancorp, Inc., Acacia Life Insurance Company (“Acacia”) and Ameritas Life Insurance Corp. (together with Acacia, “Sellers”) announced their mutual decision, due to delays in the receipt of regulatory approvals, not to extend the term of that certain Stock Purchase Agreement, dated as of June 20, 2012, as amended by those certain Amendment to Stock Purchase Agreement, dated as of December 18, 2012, Amendment No. 2 to Stock Purchase Agreement dated as of January 30, 2013, and Amendment No. 3 to Stock Purchase Agreement dated as of February 28, 2013, by and among the Company and Sellers (the “Purchase Agreement”). Instead, on April 4, 2013, the parties entered into a Termination and Non-Renewal Agreement to terminate the Purchase Agreement and the transactions contemplated thereby (the “Termination Agreement”). Each party will bear its own costs and expenses in connection with the terminated transaction, without penalties. The parties mutually agreed that the termination was in each company’s best interest. Costs related to the acquisition have been expensed.

New England Commercial Lending Acquisition

On March 28, 2013, Customers Bank completed the purchase of certain commercial loans from Michigan-based Flagstar Bank. Under the terms of the agreement, Customers Bank acquired $182.3 million in commercial loan commitments, of which $155.1 million has been drawn at the date of acquisition. Also, as part of the agreement, Customers Bank assumed the leases for two of Flagstar’s commercial lending offices in New England. The purchase price was 98.7% of loans outstanding.

NOTE 3 — SIGNIFICANT ACCOUNTING POLICIES

Purchased Loans

The Bancorp believes that the varying circumstances under which it purchases loans and the diverse quality of loans purchased should drive the decision as to whether or not loans in a portfolio should be deemed to be purchased-credit-impaired loans (“PCI” loans). Therefore, loan acquisitions are and will be evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans acquired that do not have evidence of credit deterioration at the purchase date are and will be accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs, and loans acquired with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are and will be accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality.

Loans that are purchased that do not have evidence of credit deterioration

Purchased performing loans are recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments, as accounted for under the contractual cash flow method of accounting. The fair value adjustment is accreted as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for the acquired performing loans. A provision for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition.

Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected

For purchases of this type of loan, evidence of deteriorated credit quality may include past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages.

The fair value of loans with evidence of credit deterioration is recorded net of a nonaccretable difference and, if appropriate, an accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference, which is not included in the carrying amount of acquired loans. Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities, and other factors that are reflective of current market conditions. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges, or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows.

PCI loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. On a quarterly basis, the Bank re-estimates the total cash flows (both principal and interest) expected to be collected over the remaining life of each pool. These estimates incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that reflect then-current market conditions. If the timing and/or amounts of expected cash flows on PCI loans were determined not to be reasonably estimable, no interest would be accreted and the loans would be reported as non-accrual loans; however, when the timing and amounts of expected cash flows for PCI loans are reasonably estimable, interest is being accreted and the loans are being reported as performing loans.

9

Recently Issued Accounting Standards

In January, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with relevant accounting guidance or subject to an enforceable master netting arrangement or similar agreement. The guidance in this ASU was effective for the first interim or annual period beginning on or after January 1, 2013 (the same effective date for ASU 2011-11) and is to be applied retrospectively. See “NOTE 13 — DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES” for the required disclosures.

In October, 2012, the FASB issued ASU 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution (a consensus of the FASB Emerging Issues Task Force). This ASU requires an entity to subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. The amendments in this ASU were effective for the first interim periods or annual period beginning on or after December 15, 2012 and are to be applied prospectively. Adoption of this ASU has not had a significant impact on the Bancorp’s results of operations or financial position.

In February, 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”). The ASU requires entities to disclose additional information about reclassification adjustments, including (1) changes in accumulated other comprehensive income balances by component and (2) significant items reclassified out of AOCI. The new disclosure requirements were effective for fiscal years and interim periods beginning after December 15, 2012 for public companies. See “NOTE 4 — CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT” for the required disclosures.

NOTE 4 — CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (a)

	Unrealized Gains and Losses on Available-for-Sale Securities
	(dollars in thousands)
Beginning balance - April 1, 2013	$	354
Other comprehensive loss before reclassifications		(3,884	)
Amounts reclassified from accumulated other comprehensive income		0
Net current-period other comprehensive loss		(3,884	)
Ending balance - June 30, 2013	$	(3,530	)
	Unrealized Gains and Losses on Available-for-Sale Securities
	(dollars in thousands)
Beginning balance - January 1, 2013	$	1,064
Other comprehensive loss before reclassifications		(4,594	)
Amounts reclassified from accumulated other comprehensive income		0
Net current-period other comprehensive loss		(4,594	)
Ending balance - June 30, 2013	$	(3,530	)

(a) All amounts are net of tax. Amounts in parentheses indicate debits.

10

NOTE 5 — EARNINGS PER SHARE

The following are the components and results of the Bancorp’s earnings per share calculation for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(dollars in thousands, except per share data)
Net income allocated to common shareholders	$	8,226	$	6,504	$	15,415	$	9,616
Weighted-average number of common shares - basic		21,266,904		11,347,683		19,876,779		11,347,683
Share-based compensation plans		398,229		188,673		342,019		183,859
Warrants		189,516		102,712		172,734		100,809
Weighted-average number of common shares - diluted		21,854,649		11,639,068		20,391,532		11,632,351
Basic earnings per share	$	0.39	$	0.57	$	0.78	$	0.85
Diluted earnings per share	$	0.38	$	0.56	$	0.76	$	0.83

The following is a summary of securities that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Weighted average anti-dilutive securities:
Share-based compensation awards		55,561		1,590,162		81,572		1,594,976
Warrants		118,745		567,329		118,745		569,232
Total anti-dilutive securities		174,306		2,157,491		200,317		2,164,208

NOTE 6 — INVESTMENT SECURITIES

In May 2012, Customers Bancorp reclassified its $269.0 million held-to-maturity investment portfolio to available for sale. Due to its strong outlook for loan growth, falling interest rates, and its decision to postpone its initial public offering of stock, the Bancorp decided to proceed with this reclassification to provide liquidity. In accordance with regulatory and accounting requirements, the Bancorp is prohibited from classifying security purchases as held to maturity for a period of two years.

The amortized cost and approximate fair value of investment securities as of June 30, 2013 and December 31, 2012 are summarized as follows:

	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	162,739	$	37	$	(5,433	)	$	157,343
Corporate notes		25,000		65		(100	)		24,965
Equities		6		0		0			6
	$	187,745	$	102	$	(5,533	)	$	182,314

(1) Includes private-label securities with an aggregate amortized cost of $561 and an aggregate fair value of $549.

11

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	102,449	$	1,795	$	(109	)	$	104,135
Corporate notes		25,000		89		(137	)		24,952
Equities		6		0		0			6
	$	127,455	$	1,884	$	(246	)	$	129,093

(1) Includes private-label securities with an aggregate amortized cost of $629 and an aggregate fair value of $612.

The following table shows proceeds from the sale of available-for-sale investment securities and gross gains and gross losses realized on those sales for the three and six months ended June 30, 2013 and 2012:

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
	(dollars in thousands)
Proceeds from sale of available-for-sale securities	$	0	$	257,645	$	0	$	306,610
Gross gains	$	0	$	8,797	$	0	$	9,006
Gross losses		0		0		0		0
Net gains	$	0	$	8,797	$	0	$	9,006

These gains and losses were determined using the specific identification method and were included in non-interest income.

The following table shows available-for-sale debt securities by stated maturity. Debt securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and are, therefore, classified separately with no specific maturity date:

	June 30, 2013
	Amortized Cost		Fair Value
	(dollars in thousands)
Due in one year or less	$	0	$	0
Due after one year through five years		25,000		24,965
Due after five years through ten years		0		0
Due after ten years		0		0
Mortgage-backed securities		162,739		157,343
Total debt securities	$	187,739	$	182,308

The Bancorp’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities	$	155,124	$	(5,419	)	$	323	$	(14	)	$	155,447	$	(5,433	)
Corporate notes		4,912		(88	)		4,988		(12	)		9,900		(100	)
Total	$	160,036	$	(5,507	)	$	5,311	$	(26	)	$	165,347	$	(5,533	)

12

	December 31, 2012
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities	$	5,695	$	(87	)	$	429	$	(22	)	$	6,124	$	(109	)
Corporate notes		0		0			9,862		(137	)		9,862		(137	)
Total	$	5,695	$	(87	)	$	10,291	$	(159	)	$	15,986	$	(246	)

At June 30, 2013, there were 20 available-for-sale investment securities in the less-than-twelve-month category and seven available-for-sale investment securities in the twelve-month-or-more category. At December 31, 2012, there were two available-for-sale investment securities in the less-than-twelve-month category and eight available-for-sale investment securities in the twelve-month-or-more category. In management’s opinion, the unrealized losses reflect primarily changes in interest rates due to changes in economic conditions and the liquidity of the market, and not credit quality. In addition, the Bancorp does not believe that it will be more likely than not that the Bancorp will be required to sell the securities prior to maturity or market-price recovery.

During June 2012, Moody’s downgraded all five corporate bonds in the Bancorp’s portfolio. This downgrade was anticipated since Moody’s placed these bonds on negative watch in February 2012. The Bancorp analyzed these bonds in more detail at the time of downgrade. The Bancorp does not intend to sell these debt securities prior to recovery, and it is more likely than not that the Bancorp will not have to sell these debt securities prior to recovery. These bonds continue to pay their scheduled interest payments on time. No additional downgrades are anticipated at this time. The holdings are all in the financial services industry and all issuers are well capitalized.

At June 30, 2013 and December 31, 2012, Customers Bank had pledged investment securities aggregating $156.8 million and $103.5 million, respectively, as collateral for borrowings from the FHLB.

NOTE 7 — LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

The composition of net loans receivable was as follows:

	June 30, 2013			December 31, 2012
	(dollars in thousands)
Construction	$	25,769		$	27,792
Commercial real estate		35,901			44,901
Commercial and industrial		7,226			11,153
Residential real estate		19,213			19,952
Manufactured housing		3,505			3,728
Total loans receivable covered under FDIC loss sharing agreements (1)		91,614			107,526
Construction		33,459			28,897
Commercial real estate		1,255,481			835,488
Commercial and industrial		189,013			75,118
Mortgage warehouse		7,560			9,565
Manufactured housing		145,927			154,703
Residential real estate		120,782			109,430
Consumer		1,808			2,061
Total loans receivable not covered under FDIC loss sharing agreements		1,754,030			1,215,262
Total loans receivable		1,845,644			1,322,788
Deferred (fees) costs, net		(372	)		1,679
Allowance for loan losses		(28,142	)		(25,837	)
Loans receivable, net	$	1,817,130		$	1,298,630

(1) Loans that were acquired in two FDIC-assisted transactions and are covered under loss sharing agreements with the FDIC are referred to as “covered” loans throughout these financial statements.

13

Customers Bank takes advantage of Federal Home Loan Bank (“FHLB”) programs for overnight and term borrowings. Under the terms of a blanket collateral agreement, advances from the FHLB are collateralized by qualifying first-mortgage loans.

Non-Covered Nonaccrual Loans and Loans Past Due

The following tables summarize non-covered loans, by class:

	June 30, 2013
	30-89 Days Past Due (1)		Greater Than 90 Days (1)		Total Past Due (1)		Non- Accrual		Current (2)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	0	$	0	$	0	$	500	$	186,057	$	2,456	$	189,013
Commercial real estate		341		0		341		14,296		1,199,236		41,608		1,255,481
Construction		0		0		0		2,613		30,072		774		33,459
Residential real estate		307		0		307		951		108,674		10,850		120,782
Consumer		1		0		1		56		1,308		443		1,808
Mortgage warehouse		0		0		0		0		7,560		0		7,560
Manufactured housing (3)		6,388		2,435		8,823		1,152		130,444		5,508		145,927
Total	$	7,037	$	2,435	$	9,472	$	19,568	$	1,663,351	$	61,639	$	1,754,030
	December 31, 2012
	30-89 Days Past Due (1)		Greater Than 90 Days (1)		Total Past Due (1)		Non- Accrual		Current (2)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	38	$	0	$	38	$	288	$	72,715	$	2,077	$	75,118
Commercial real estate		1,437		0		1,437		17,770		770,508		45,773		835,488
Construction		0		0		0		2,423		25,022		1,452		28,897
Residential real estate		381		0		381		1,669		95,396		11,984		109,430
Consumer		0		0		0		56		1,486		519		2,061
Mortgage warehouse		0		0		0		0		9,565		0		9,565
Manufactured housing (3)		9,234		1,966		11,200		141		135,924		7,438		154,703
Total	$	11,090	$	1,966	$	13,056	$	22,347	$	1,110,616	$	69,243	$	1,215,262

(1) Loan balances do not include non-accrual loans.

(2) Loans where payments are due within 29 days of the scheduled payment date.

(3) Purchased manufactured housing loans, purchased in 2010, are subject to cash reserves held at the Bank that are used to fund the past-due payments when the loan becomes 90-days or more delinquent.

(4) Loans exclude deferred costs and fees.

(5) PCI loans that were aggregated into pools are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because we recognize interest income on each pool of loans, they are all considered to be performing. PCI loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and being reported as performing loans.

14

Covered Nonaccrual Loans and Loans Past Due

The following tables summarize covered loans, by class:

	June 30, 2013
	30-89 Days Past Due (1)		Greater Than 90 Days Past Due (1)		Total Past Due (1)		Non- Accrual		Current (2)(3)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	0	$	0	$	0	$	53	$	4,470	$	2,703	$	7,226
Commercial real estate		0		0		0		3,267		16,209		16,425		35,901
Construction		0		0		0		4,055		5,924		15,790		25,769
Residential real estate		297		0		297		564		14,082		4,270		19,213
Manufactured housing		52		0		52		41		3,352		60		3,505
Total	$	349	$	0	$	349	$	7,980	$	44,037	$	39,248	$	91,614
	December 31, 2012
	30-89 Days Past Due (1)		Greater Than 90 Days Past Due (1)		Total Past Due (1)		Non- Accrual		Current (2)(3)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	220	$	0	$	220	$	100	$	8,404	$	2,429	$	11,153
Commercial real estate		0		0		0		3,712		20,859		20,330		44,901
Construction		0		0		0		5,244		6,472		16,076		27,792
Residential real estate		0		0		0		1,358		14,226		4,368		19,952
Manufactured housing		48		0		48		90		3,527		63		3,728
Total	$	268	$	0	$	268	$	10,504	$	53,488	$	43,266	$	107,526

(1) Loans balances do not include nonaccrual loans.

(2) Loans receivable that were not identified upon acquisition as a loan with credit deterioration.

(3) Loans where payments are due within 29 days of the scheduled payment date.

(4) Loans exclude deferred costs and fees.

(5) PCI loans that were aggregated into pools are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because we recognize interest income on each pool of loans, they are all considered to be performing. PCI loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and being reported as performing loans.

15

Impaired Loans — Covered and Non-Covered

The following table presents a summary of impaired loans:

	June 30, 2013				For the Six Months Ended June 30, 2013
	Unpaid Principal Balance (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	7,970			$	5,249	$	118
Commercial real estate		28,187				24,277		554
Construction		5,609				7,075		10
Consumer		77				100		0
Residential real estate		2,272				2,436		14
With an allowance recorded:
Commercial and industrial		2,177	$	602		886		63
Commercial real estate		5,157		1,818		8,095		105
Construction		5,361		1,533		6,172		3
Consumer		0		0		45		0
Residential real estate		629		327		1,035		2
Total	$	57,439	$	4,280	$	55,370	$	869

(1) Also represents the recorded investment.

	December 31, 2012				For the Six Months Ended June 30, 2012
	Unpaid Principal Balance (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	3,844			$	5,593	$	72
Commercial real estate		26,626				20,329		303
Construction		6,588				7,788		16
Consumer		101				101		0
Residential real estate		3,188				2,131		10
With an allowance recorded:
Commercial and industrial		374	$	295		806		4
Commercial real estate		8,708		2,505		8,955		81
Construction		5,116		1,541		7,196		100
Consumer		100		14		20		1
Residential real estate		1,331		270		822		9
Total	$	55,976	$	4,625	$	53,741	$	596

(1) Also represents the recorded investment.

16

Troubled Debt Restructurings

At June 30, 2013, there were $9.2 million in loans categorized as troubled debt restructurings (“TDR”), and at June 30, 2012, there were $7.7 million in loans categorized as troubled debt restructurings. All TDRs are considered impaired loans in the calendar year of their restructuring. In subsequent years, a TDR may cease being classified as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below-market rate will be returned to performing status if it satisfies the six-month performance requirement; however, it will remain classified as impaired.

Modification of PCI loans that are accounted for within loan pools in accordance with the accounting standards for PCI loans do not result in the removal of these loans from the pool even if 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 TDRs.

The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the three and six months ended June 30, 2013 and 2012. There were no modifications that involved forgiveness of debt.

	TDRs in Compliance with Their Modified Terms and Accruing Interest		TDRs in Compliance with Their Modified Terms and Not Accruing Interest		Total
	(dollars in thousands)
Three months ended June 30, 2013
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		0		0		0
Interest-rate reductions		93		910		1,003
Total	$	93	$	910	$	1,003
Six months ended June 30, 2013
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		0		0		0
Interest-rate reductions		93		1,167		1,260
Total	$	93	$	1,167	$	1,260
Three months ended June 30, 2012
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		47		0		47
Interest-rate reductions		241		0		241
Total	$	288	$	0	$	288
Six months ended June 30, 2012
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		47		0		47
Interest-rate reductions		268		0		268
Total	$	315	$	0	$	315

17

The following table provides, by class, the number of loans modified in troubled debt restructurings and the recorded investments and unpaid principal balances during the three and six months ended June 30, 2013 and 2012.

	TDRs in Compliance with Their Modified Terms and Accruing Interest				TDRs in Compliance with Their Modified Terms and Not Accruing Interest
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(dollars in thousands)
Three months ended June 30, 2013
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		2		60		7		910
Residential real estate		0		0		0		0
Consumer		1		33		0		0
Total		3	$	93		7	$	910
Six months ended June 30, 2013
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		2		60		10		1,167
Residential real estate		0		0		0		0
Consumer		1		33		0		0
Total		3	$	93		10	$	1,167
Three months ended June 30, 2012
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		5		288		0		0
Residential real estate		0		0		0		0
Consumer		0		0		0		0
Total		5	$	288		0	$	0
Six months ended June 30, 2012
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		6		315		0		0
Residential real estate		0		0		0		0
Consumer		0		0		0		0
Total		6	$	315		0	$	0

At June 30, 2013 and 2012, there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt restructuring.

All loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. There was $0 in specific reserves resulting from the addition of TDR modifications for both the three and six months ended June 30, 2013 and 2012. There were no TDRs that defaulted in the three and six month periods ended June 30, 2013 and 2012.

18

Credit Quality Indicators

Credit quality indicators for commercial and industrial, commercial real estate, residential real estate, and construction loans are based on an internal risk-rating system and are assigned at the loan origination and reviewed on a periodic or on an “as needed” basis. Consumer, mortgage warehouse, and manufactured housing loans are evaluated on the basis of the payment activity of the loan.

To facilitate the monitoring of credit quality within the commercial and industrial, commercial real estate, construction portfolio, 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, special mention, substandard, and doubtful. 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 that do not have identified potential or well defined weaknesses and for which 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 and estimates, the risk rating process is intended to permit management to identify riskier credits in a timely manner and allocate the appropriate resources to managing the loans.

The Bank assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan and the Bank’s credit position.

The Bank assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans in this category also are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies noted are not addressed and corrected.

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. When it is determined that these loans are uncollectible they are charged off in the period in which they are determined to be uncollectible.

Risk ratings are not established for home equity loans, consumer loans, and installment loans, mainly because these portfolios consist of a larger number of homogenous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based on aggregate payment history, through the monitoring of delinquency levels and trends and are classified as performing and nonperforming.

The following presents the credit quality tables as of June 30, 2013 and December 31, 2012 for the non-covered loan portfolio.

	June 30, 2013
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	178,927	$	1,217,390	$	30,364	$	117,946
Special Mention		9,526		19,638		389		1,070
Substandard		560		18,453		2,706		1,766
Doubtful		0		0		0		0
Total	$	189,013	$	1,255,481	$	33,459	$	120,782

19

	Consumer		Mortgage Warehouse		Manufactured Housing
	(dollars in thousands)
Performing	$	1,751	$	7,560	$	145,917
Nonperforming (1)		57		0		10
Total	$	1,808	$	7,560	$	145,927

(1) Includes loans that are on nonaccrual status at June 30, 2013.

	December 31, 2012
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	70,955	$	794,187	$	26,020	$	105,490
Special Mention		3,836		18,737		454		1,017
Substandard		327		21,801		1,971		2,919
Doubtful		0		763		452		4
Total	$	75,118	$	835,488	$	28,897	$	109,430

	Consumer		Mortgage Warehouse		Manufactured Housing
	(dollars in thousands)
Performing	$	2,005	$	9,565	$	154,562
Nonperforming (1)		56		0		141
Total	$	2,061	$	9,565	$	154,703

(1) Includes loans that are on nonaccrual status at December 31, 2012.

The following presents the credit quality tables as of June 30, 2013 and December 31, 2012 for the covered loan portfolio.

	June 30, 2013
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	4,827	$	16,930	$	1,976	$	14,170
Special Mention		121		3,063		3,949		455
Substandard		2,278		15,908		19,844		4,588
Doubtful		0		0		0		0
Total	$	7,226	$	35,901	$	25,769	$	19,213

	Manufactured Housing
	(dollars in thousands)
Performing	$	3,412
Nonperforming (1)		93
Total	$	3,505

(1) Includes loans that are on nonaccrual status at June 30, 2013.

20

	December 31, 2012
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	8,888	$	26,195	$	2,434	$	14,021
Special Mention		51		225		4,038		455
Substandard		2,214		18,481		21,320		5,476
Doubtful		0		0		0		0
Total	$	11,153	$	44,901	$	27,792	$	19,952

	Manufactured Housing
	(dollars in thousands)
Performing	$	3,638
Nonperforming (1)		90
Total	$	3,728

(1) Includes loans that are on nonaccrual status at December 31, 2012.

Allowance for loan losses

The changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 and the loans and allowance for loan losses by loan segment based on impairment evaluation method are as follows. Please read in conjunction with disclosures in the Bancorp’s 2012 Annual Report on Form 10-K.

	Commercial and Industrial			Commercial Real Estate			Construction			Residential Real  Estate			Manufactured Housing			Consumer			Mortgage Warehouse			Unallocated			Total
	(dollars in thousands)
Three months ended June 30, 2013
Beginning Balance, April 1, 2013	$	1,990		$	15,223		$	4,279		$	3,248		$	846		$	141		$	54		$	658		$	26,439
Charge-offs		(76	)		(1,481	)		(1,471	)		(65	)		0			0			0			0			(3,093	)
Recoveries		154			8			0			10			0			4			0			0			176
Provision for loan losses		417			2,935			1,509			359			(168	)		(39	)		2			(395	)		4,620
Ending Balance, June 30, 2013	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
Six months ended June 30, 2013
Beginning Balance, January 1, 2013	$	1,477		$	15,439		$	3,991		$	3,233		$	750		$	154		$	71		$	722		$	25,837
Charge-offs		(96	)		(1,891	)		(1,471	)		(198	)		0			0			0			0			(3,656	)
Recoveries		165			60			0			7			0			9			0			0			241
Provision for loan losses		939			3,077			1,797			510			(72	)		(57	)		(15	)		(459	)		5,720
Ending Balance, June 30, 2013	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
At June 30, 2013
Loans:
Individually evaluated for impairment	$	10,147		$	33,344		$	10,970		$	2,901		$	0		$	77		$	0					$	57,439
Collectively evaluated for impairment		180,933			1,200,004			31,695			121,973			143,925			1,228			7,560						1,687,318
Loans acquired with credit deterioration		5,159			58,034			16,563			15,121			5,507			503			0						100,887
																									$	1,845,644
Allowance for loan losses:
Individually evaluated for impairment	$	602		$	1,818		$	1,533		$	327		$	0		$	0		$	0		$	0		$	4,280
Collectively evaluated for impairment		1,477			9,402			279			1,022			76			48			56			263			12,623
Loans acquired with credit deterioration		406			5,465			2,505			2,203			602			58			0			0			11,239
	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142

21

	Commercial and Industrial			Commercial Real Estate			Construction			Residential Real  Estate			Manufactured Housing		Consumer			Mortgage Warehouse			Unallocated			Total
	(dollars in thousands)
Three months ended June 30, 2012
Beginning Balance, April 1, 2012	$	1,464		$	7,117		$	5,099		$	775		$	33	$	95		$	763		$	54		$	15,400
Charge-offs		0			(938	)		(979	)		(179	)		0		(10	)		0			0			(2,106	)
Recoveries		66			14			0			1			0		5			0			0			86
Provision for loan losses		(27	)		2,073			232			483			8		(16	)		39			(54	)		2,738
Ending Balance, June 30, 2012	$	1,503		$	8,266		$	4,352		$	1,080		$	41	$	74		$	802		$	0		$	16,118
Six months ended June 30, 2012
Beginning Balance, January 1, 2012	$	1,441		$	7,029		$	4,656		$	844		$	18	$	61		$	929		$	54		$	15,032
Charge-offs		(34	)		(1,143	)		(2,191	)		(200	)		0		(10	)		0			0			(3,578	)
Recoveries		66			50			0			5			0		5			0			0			126
Provision for loan losses		30			2,330			1,887			431			23		18			(127	)		(54	)		4,538
Ending Balance, June 30, 2012	$	1,503		$	8,266		$	4,352		$	1,080		$	41	$	74		$	802		$	0		$	16,118
At June 30, 2012
Loans:
Individually evaluated for impairment	$	3,232		$	25,648		$	14,309		$	1,754		$	0	$	83		$	0		$	0		$	45,026
Collectively evaluated for impairment		68,212			405,632			7,809			89,617			96,713		5,141			801,994			0			1,475,118
Loans acquired with credit deterioration		12,253			77,378			23,203			22,413			9,097		722			0			0			145,066
																								$	1,665,210
Allowance for loan losses:
Individually evaluated for impairment	$	481		$	1,651		$	3,007		$	45		$	0	$	0		$	0		$	0		$	5,184
Collectively evaluated for impairment		868			4,995			181			994			41		57			802			0			7,938
Loans acquired with credit deterioration		154			1,620			1,164			41			0		17			0			0			2,996
	$	1,503		$	8,266		$	4,352		$	1,080		$	41	$	74		$	802		$	0		$	16,118

The non-covered manufactured housing portfolio was purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the Purchase Agreement for defaults of the underlying borrower and other specified items. At June 30, 2013 and 2012, funds available for reimbursement, if necessary, were $2.7 million and $5.0 million, respectively. Quarterly, these funds are evaluated to determine if they would be sufficient to absorb probable losses within the manufactured housing portfolio.

The changes in accretable yield related to PCI loans since origination for the three and six months ended June 30, 2013 and 2012 were as follows:

For the Three Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	29,665		$	44,703
Accretion to interest income		(1,601	)		0
Reclassification from nonaccretable difference and disposals, net		(415	)		(1,473	)
Balance, end of period	$	27,649		$	43,230

For the Six Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	32,174		$	45,358
Accretion to interest income		(3,672	)		(2,059	)
Reclassification from nonaccretable difference and disposals, net		(853	)		(69	)
Balance, end of period	$	27,649		$	43,230

22

FDIC Loss Sharing Receivable

The following table summarizes the activity related to the FDIC loss sharing receivable for the three and six months ended June 30, 2013 and 2012:

Three Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	12,043		$	14,149
Change in FDIC loss sharing receivable		2,884			(449	)
Reimbursement from the FDIC		(758	)		(1,324	)
Balance, end of period	$	14,169		$	12,376

Six Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	12,343		$	13,077
Change in FDIC loss sharing receivable		4,954			741
Reimbursement from the FDIC		(3,128	)		(1,442	)
Balance, end of period	$	14,169		$	12,376

NOTE 8 — SHAREHOLDERS’ EQUITY

On May 22, 2013, the Bancorp raised $103.5 million in gross proceeds by issuing 6,179,104 shares of its voting common stock at a price to the public of $16.75 per share. The net proceeds to Customers after deducting underwriting discounts and commissions and offering expenses were $97.7 million.

During the third quarter of 2012, the Bancorp sold 7,111,819 shares of common stock in private offerings. The proceeds, net of offering costs, were $94.6 million.

On May 8, 2012, the Bancorp announced that, due to market conditions, it had postponed its initial public offering of voting common stock. Costs related to this postponed offering in the amount of $1.3 million were expensed.

NOTE 9 — SHARE-BASED COMPENSATION

Stock Options

Options to purchase an aggregate of 617,910 and 92,687 shares of voting common stock, representing 10% and 1.5% of the number of shares issued in the May 2013 offering of voting common stock, were granted to the Chief Executive Officer and the Chief Operating Officer in connection with the completion of the offering pursuant to their existing employment agreements, respectively. The options will vest over five years from the date of grant, subject to a 50% increase in the value options to purchase of the Bancorp’s Voting Common Stock and have a term of 10 years. In addition, in matters unrelated to the May 2013 offering, options to purchase an aggregate of 50,000 shares of Voting Common Stock were granted to certain other officers. The fair values of the options were estimated using the Black-Scholes option pricing model. The following table presents the weighted-average assumptions used and the resultant weighted-average fair value of the options.

	2013			2012
Weighted-average risk-free interest rate		1.39	%		1.15	%
Expected dividend yield		0.00	%		0.00	%
Weighted-average expected volatility		6.54	%		17.47	%
Expected life (in years)		7.00			6.98
Weighted-average fair value	$	2.04		$	3.04

23

The following table summarizes stock option activity for the six months ended June 30, 2013.

	Number of Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term in Years		Aggregate Intrinsic Value
	(aggregate intrinsic value in thousands)
Outstanding at January 1, 2013		2,003,889	$	12.49
Granted		760,597		16.66
Outstanding at June 30, 2013		2,764,486	$	13.64		8.40	$	7,650
Vested and expected to vest at June 30, 2013		2,764,486		13.64		8.40		7,650
Exercisable at June 30, 2013		14,438	$	20.06		3.82	$	13

NOTE 10 — REGULATORY MATTERS

The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary-actions by regulators that, if undertaken, could have a direct material effect on the Bancorp’s consolidated financial statements. At June 30, 2013, the Bank and the Bancorp met all capital adequacy requirements to which they are subject.

The Bank experienced rapid loan growth during the final days of 2012. During the standard closing process of the Bank’s December 2012 financial statements, management determined on January 30, 2013 that the rapid loan growth resulted in a reduction in the Bank’s capital ratios, causing the Bank to become adequately capitalized as of December 31, 2012. Management immediately transferred sufficient capital from the Bancorp to the Bank, returning the Bank to well-capitalized status. Sufficient cash is maintained at the Bancorp to ensure that the Bank remains well capitalized, and management remains committed to taking all steps necessary to ensure that both the Bancorp and the Bank remain well capitalized going forward. The Bank is well capitalized as of June 30, 2013. Since the Bank was adequately capitalized at December 31, 2012, regulatory approval was required to accept, renew or roll over any brokered deposits. Effective January 1, 2013, the interest rate paid for deposits by institutions that are less than well capitalized is limited to 75 basis points above the national rate for similar products unless the institution can support to the FDIC that prevailing rates in its market area exceed the national average. This has been subsequently lifted based upon the well-capitalized status as of June 30, 2013.

24

The Bancorp’s and the Bank’s capital amounts and ratios at June 30, 2013 and December 31, 2012 are as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective  Action Provisions
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2013:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	406,314		13.32	%	$	244,036		8.0	%		N/A		N/A
Customers Bank	$	378,972		12.43	%	$	243,915		8.0	%	$	304,894		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	377,617		12.38	%	$	122,018		4.0	%		N/A		N/A
Customers Bank	$	350,275		11.49	%	$	121,958		4.0	%	$	182,937		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	377,617		11.20	%	$	134,895		4.0	%		N/A		N/A
Customers Bank	$	350,275		10.39	%	$	134,845		4.0	%	$	168,556		5.0	%
As of December 31, 2012:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	289,035		11.26	%	$	205,443		8.0	%		N/A		N/A
Customers Bank	$	244,710		9.53	%	$	205,442		8.0	%	$	256,802		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	262,719		10.23	%	$	102,722		4.0	%		N/A		N/A
Customers Bank	$	218,394		8.50	%	$	102,721		4.0	%	$	154,081		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	262,719		9.30	%	$	112,939		4.0	%		N/A		N/A
Customers Bank	$	218,394		7.74	%	$	112,896		4.0	%	$	141,120		5.0	%

NOTE 11 — DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The Bancorp uses fair value measurements to record fair value adjustments to certain assets and to disclose the fair value of its financial instruments. FASB ASC 825, Financial Instruments, requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For the Bancorp, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many of such 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, the Bancorp utilized certain fair value measurement criteria under the FASB ASC 820, Fair Value Measurement, as explained below.

Cash and cash equivalents:

The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values.

Investment Securities:

The fair value of investment securities available for sale and held to maturity are determined by obtaining quoted market prices on nationally recognized 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).

The carrying amount of restricted stock approximates fair value, and considers the limited marketability of such securities.

25

Loans held for sale:

The fair value of loans receivable held for sale is based on commitments on hand from investors within the secondary market for loans with similar characteristics.

Loans held for sale — Mortgage warehouse loans:

The Fair Value Option

The Bancorp elected the fair value option for warehouse lending transactions documented under a Master Repurchase Agreement originated after July 1, 2012 in order to more accurately represent the short-term nature of the transaction and its inherent credit risk. This adoption was in accordance with the parameters established by Accounting Standards Codification (“ASC”) 825-10-25, Financial Instruments-Overall-Recognition: The Fair Value Option. As a result of this election, warehouse lending transactions are classified as “Loans held for sale” on the balance sheet. The interest income from the warehouse lending transactions is classified in “Interest Income — Loans held for sale on the income statement. An allowance for loan losses is not recorded for the warehouse lending transactions when measured at fair value since the exit price (the repurchase price) for warehouse lending transactions considers the effect of expected credit losses.

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 the mortgage company as short-term bridge financing between the funding of mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not expected to be recognized since at inception of the transaction the underlying loans have already been sold to an approved investor or they have been hedged by the mortgage company. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of 17 days from purchase to sale.

Loans receivable, net:

The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Impaired loans:

Impaired loans are those that are accounted for under FASB ASC 450, Contingencies, in which the Bancorp has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

FDIC loss sharing receivable:

The FDIC loss sharing receivable is measured separately from the related covered assets, as it is not contractually embedded in the assets and is not transferable with the assets should the assets be sold. Fair value is estimated using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses using the applicable loss share percentages and the estimated true-up payment. These cash flows are discounted to reflect the estimated timing of the receipt of the loss share reimbursement from the FDIC.

Other real estate owned:

The fair value of OREO is determined using appraisals, which may be discounted based on management’s review and changes in market conditions (Level 3 Inputs). All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice (“USPAP”). Appraisals are certified to the Bancorp and performed by appraisers on the Bancorp’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”.

Accrued interest receivable and payable:

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposit liabilities:

The fair values disclosed for deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). 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.

26

Federal funds purchased:

For those short-term instruments, the carrying amount is a reasonable estimate of fair value.

Borrowings:

Borrowings consist of FHLB advances. The carrying amount of short-term FHLB borrowings approximates its fair value. 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. These 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.

Subordinated debt:

Fair values of subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity.

Derivatives (Assets and Liabilities):

The fair values of interest rate swaps are determined using models that incorporate readily observable market data into a market standard methodology. The 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 Bancorp and its counterparties.

Off-balance-sheet financial instruments:

Fair values for the Bancorp’s off-balance-sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.

The following information should not be interpreted as an estimate of the fair value of the entire Bancorp since a fair value calculation is only provided for a limited portion of the Bancorp’s assets. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Bancorp’s disclosures and those of other companies may not be meaningful.

27

The estimated fair values of the Bancorp’s financial instruments were as follows at June 30, 2013 and December 31, 2012.

					Fair Value Measurements at June 30, 2013
	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)
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	205,685	$	205,685	$	205,685	$	0	$	0
Investment securities, available for sale		182,314		182,314		6		182,308		0
Loans held for sale		1,414,943		1,414,943		0		1,414,943		0
Loans receivable, net		1,817,130		1,817,362		0		0		1,817,362
FDIC loss sharing receivable		14,169		14,169		0		14,169		0
Derivatives not designated as hedging instruments		1,919		1,919		0		1,919		0
Restricted stock		33,188		33,188		0		33,188		0
Fraudulent loans receivable (1)		669		669		0		0		669
Accrued interest receivable		7,077		7,077		7,077		0		0
Liabilities:
Deposits	$	2,775,709	$	2,763,089	$	265,842	$	2,497,247	$	0
Federal funds purchased		120,000		120,000		120,000		0		0
Other borrowings		505,000		506,228		0		506,228		0
Subordinated debt		2,000		2,000		0		2,000		0
Derivatives not designated as hedging instruments		1,868		1,868		0		1,868		0
Accrued interest payable		1,534		1,534		1,534		0		0

(1) Included in Other Assets

					Fair Value Measurements at December 31, 2012
	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)
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	186,016	$	186,016	$	186,016	$	0	$	0
Investment securities, available for sale		129,093		129,093		6		129,087		0
Loans held for sale		1,439,889		1,439,889		0		1,439,889		0
Loans receivable, net		1,298,630		1,307,049		0		0		1,307,049
FDIC loss sharing receivable		12,343		12,343		0		12,343		0
Restricted stock		30,163		30,163		0		30,163		0
Accrued interest receivable		5,790		5,790		5,790		0		0
Liabilities:
Deposits	$	2,440,818	$	2,674,765	$	219,687	$	2,455,078	$	0
Federal funds purchased		5,000		5,000		5,000		0		0
Other borrowings		471,000		471,432		0		471,432		0
Subordinated debt		2,000		2,000		0		2,000		0
Accrued interest payable		1,530		1,530		1,530		0		0

28

In accordance with FASB ASC 820, Fair Value Measurements and Disclosures, 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 the Bancorp’s 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.

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).

An asset’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

For financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	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
	(dollars in thousands)
Recurring Fair Value Measurements
Assets
Available-for-sale securities:
Mortgage-backed securities	$	0	$	157,343	$	0	$	157,343
Corporate notes		0		24,965		0		24,965
Equities		6		0		0		6
Derivatives not designated as hedging instruments (1)		0		1,919		0		1,919
Mortgage warehouse loans held for sale		0		1,414,943		0		1,414,943
Total assets - recurring fair value measurements	$	6	$	1,599,170	$	0	$	1,599,176
Liabilities
Derivatives not designated as hedging instruments (2)	$	0	$	1,868	$	0	$	1,868
Nonrecurring Fair Value Measurements
Assets
Impaired loans, net of specific reserves of $4,280	$	0	$	0	$	9,044	$	9,044
Other real estate owned		0		0		5,424		5,424
Total assets - nonrecurring fair value measurements	$	0	$	0	$	14,468	$	14,468

(1) Included in Other Assets

(2) Included in Other Liabilities

29

	December 31, 2012
	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
	(dollars in thousands)
Recurring Fair Value Measurements
Assets
Available-for-sale securities:
Mortgage-backed securities	$	0	$	104,135	$	0	$	104,135
Corporate notes		0		24,952		0		24,952
Equities		6		0		0		6
Mortgage warehouse loans held for sale		0		1,248,935		0		1,248,935
Total assets - recurring fair value measurements	$	6	$	1,378,022	$	0	$	1,378,028
Nonrecurring Fair Value Measurements
Assets
Impaired loans, net of specific reserves of $4,625	$	0	$	0	$	11,004	$	11,004
Other real estate owned		0		0		5,737		5,737
Total assets - nonrecurring fair value measurements	$	0	$	0	$	16,741	$	16,741

The changes in Level 3 assets measured at fair value on a recurring basis for the three months and six months ended June 30, 2013 and 2012 are summarized as follows:

	Loans Held for Sale (1)
	(dollars in thousands)
Balance at April 1, 2013	$	3,173
Recoveries		(1,463	)
Sales		(1,013	)
Transfer from loans held for sale to other assets (1)		(697	)
Balance at June 30, 2013	$	0

	Mortgage- backed Securities			Corporate Notes			Total
	(dollars in thousands)
Balance at April 1, 2012	$	2,790		$	19,546		$	22,336
Total losses included in other comprehensive income (before taxes)		0			(343	)		(343	)
Amortization included in interest income		(158	)		0			(158	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

30

	Loans Held for Sale (1)
	(dollars in thousands)
Balance at January 1, 2013	$	0
Transfer from Level 2 to Level 3 (1)		3,173
Recoveries		(1,463	)
Sales		(1,013	)
Transfer from loans held for sale to other assets (1)		(697	)
Balance at June 30, 2013	$	0

	Mortgage- backed Securities			Corporate Notes			Total
	(dollars in thousands)
Balance at January 1, 2012	$	2,894		$	19,217		$	22,111
Total losses included in other comprehensive income (before taxes)		0			(14	)		(14	)
Amortization included in interest income		(262	)		0			(262	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

(1) The Bancorp’s policy is to recognize transfers between levels when events or circumstances warrant transfers. During the first quarter of 2013, a suspected fraud was discovered in the Bank’s loans held-for-sale portfolio. Total loans involved in this fraud initially appeared to be $5.2 million, and management believed the range of possible loss to have been between $1.5 million and $3.2 million. Accordingly, management provided a loss contingency of $2.0 million at March 31, 2013. Due to the uncertainty surrounding the amount of loss, management transferred these loans and the related loss contingency from Level 2 to Level 3. During the second quarter of 2013, the Bank determined that an aggregate of $1.0 million of the loans were not involved in the fraud, and these loans were subsequently sold. In addition, the Bank recovered $1.5 million in cash from the alleged perpetrator. The remaining aggregate of $2.7 million of loans and the related $2.0 million reserve were transferred to Other assets. Since it was resolved that the loans no longer meet the definition of a loan, combined with the fact that the Company is pursuing restitution through the involved parties, the Company has determined this to be a receivable and, accordingly, transferred the asset to Other assets.

The following table summarizes financial assets and financial liabilities measured at fair value as of June 30, 2013 on a recurring and nonrecurring basis for which the Bancorp utilized Level 3 inputs to measure fair value. The valuation techniques, unobservable inputs, and ranges (weighted average) are the same as those disclosed at December 31, 2012.

	Quantitative Information about Level 3 Fair Value  Measurements
June 30, 2013	Fair Value Estimate		Valuation Technique			Unobservable Input			Range (Weighted Average) (3)
	(dollars in thousands)
Impaired loans	$	9,044		Collateral appraisal	(1)		Liquidation expenses	(2)		-3% to -8% (-5.5%)
Other real estate owned	$	5,424		Collateral appraisal	(1)		Liquidation expenses	(2)		-3% to -8% (-5.5%)

(1) Obtained from independent third-parties approved appraisers. Appraisals are current and in compliance with credit policy. The Bancorp does not discount appraisals.

(2) Fair value is adjusted for costs to sell.

(3) Presented as a percentage of the value determined by appraisal.

31

NOTE 12 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Accounting Policy for Derivative Instruments and Hedging Activities

The Bancorp records all derivatives on the balance sheet at fair value. Currently, none of the derivatives are designated in qualifying hedging relationships, as the derivatives are not used to manage risks with the Bancorp’s assets or liabilities. As such, all changes in fair value of the derivatives are recognized directly in earnings.

In accordance with U.S. GAAP, the Bancorp made an accounting policy election to measure credit risk of its derivative financial instruments that are subject to master netting agreements on a gross basis.

Risk Management Objectives of Using Derivatives

The Bancorp is exposed to certain risks arising from both its business operations and economic conditions. The Bancorp manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. The Bank’s existing interest-rate derivatives result from a service provided to certain qualifying customers, and therefore, are not used to manage interest-rate risk in assets or liabilities. The Bank manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

Derivatives Not Designated as Hedging Instruments

None of the Bancorp’s derivatives are designated in qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service implemented in the first quarter of 2013 that the Bank provides to certain customers. The Bank executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Bank executes with a third party in order to minimize its net risk exposure resulting from such transactions. Since the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. At June 30, 2013, the Bancorp had 14 interest rate swaps with an aggregate notional amount of $88.2 million related to this program.

Fair Value of Derivative Instruments on the Balance Sheet

The following table presents the fair value of the Bancorp’s derivative financial instruments as well as the classification on the balance sheet.

	Fair Value of Derivative Instruments June 30, 2013
	Asset Derivatives			Liability Derivatives
	Balance sheet location	Fair value		Balance sheet location	Fair value
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other assets	$	1,919	Other liabilities	$	1,868

Effect of Derivative Instruments on Comprehensive Income

The following table presents the effect of the Bancorp’s derivative financial instruments on comprehensive income for the three and six months ended June 30, 2013.

	Effect of Derivative Instruments on Comprehensive Income Three Months Ended June 30, 2013
	Location of gain recognized in income on derivatives	Amount of gain recognized in income on derivatives
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other non-interest income	$	155

32

	Effect of Derivative Instruments on Comprehensive Income Six Months Ended June 30, 2013
	Location of gain recognized in income on derivatives	Amount of gain recognized in income on derivatives
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other non-interest income	$	198

Credit-risk-related Contingent Features

By entering into derivative contracts, the Bank is exposed to credit risk. The credit risk associated with derivatives executed with Bank 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, the Bancorp only enters into agreements with those that maintain credit ratings of high quality.

Agreements with major derivative dealer counterparties contain provisions whereby default on any of the Bancorp’s indebtedness would be considered a default on its derivative obligations. The Bancorp also has entered into agreements that contain provisions under which the counterparty could require the Bancorp to settle its obligations if the Bancorp fails to maintain its status as a well/adequately-capitalized institution. As of June 30, 2013, the termination value of derivatives in a net liability position (which includes accrued interest but excludes any adjustment for nonperformance-risk) related to these agreements was $1.7 million. In addition, the Bancorp has minimum collateral posting thresholds with certain of these counterparties, and at June 30, 2013 had posted $2.5 million as collateral.

NOTE 13 — DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES

The following tables present derivative instruments that are subject to enforceable master netting arrangements. The Bancorp has not made a policy election to offset its derivative positions.

Offsetting of Financial Assets and Derivative Assets For the Six Months Ended June 30, 2013
							Gross amounts not offset in the consolidated balance sheet
	Gross amount of recognized assets		Gross amounts offset in the consolidated balance sheet		Net amounts of assets presented in the consolidated balance sheet		Financial instruments		Cash collateral received		Net amount
	(dollars in thousands)
Description
Interest rate derivatives with institutional counterparties	$	208	$	0	$	208	$	208	$	0	$	0
Offsetting of Financial Liabilities and Derivative Liabilities For the Six Months Ended June 30, 2013
							Gross amounts not offset in the consolidated balance sheet
	Gross amount of recognized liabilities		Gross amounts offset in the consolidated balance sheet		Net amounts of liabilities presented in the consolidated balance sheet		Financial instruments		Cash collateral pledged		Net amount
	(dollars in thousands)
Description
Interest rate derivatives with institutional counterparties	$	1,720	$	0	$	1,720	$	208	$	1,512	$	0

33

NOTE 14 — LOSS CONTINGENCY

During the first quarter of 2013, a suspected fraud was discovered in the Bank’s loans held-for-sale portfolio. Total loans involved in this fraud initially appeared to be $5.2 million, and, management believed the range of possible loss to have been between $1.5 million and $3.2 million. Accordingly, management has provided a loss contingency of $2.0 million at March 31, 2013. Due to the uncertainty surrounding the amount of loss, management transferred these loans and the related loss contingency from Level 2 to Level 3. During the second quarter of 2013, the Bank determined that an aggregate of $1.0 million of the loans were not involved in the fraud, and these loans were subsequently sold. In addition, the Bank recovered $1.5 million in cash from the alleged perpetrator. Since it was resolved that the loans no longer meet the definition of a loan, combined with the fact that the Company is pursuing restitution through the involved parties, the Company has determined this to be a receivable and, accordingly, transferred the asset to Other assets. Therefore, the remaining aggregate of $2.7 million of loans and the related $2.0 million contingency were transferred to Other assets.

NOTE 15 — SUBSEQUENT EVENTS

On July 30, 2013, the Bancorp completed an underwritten public offering of $55.0 million non-callable five-year senior unsecured notes, with interest at 6.375% payable quarterly. The Bancorp granted the underwriters a 30-day option to purchase up to an additional 15% of the aggregate principal amount of the senior notes ($8.25 million) sold in the offering, solely to cover overallotments, if any. Net proceeds are estimated to be $52.6 million, or $60.6 million, if the underwriters were to exercise the overallotment option in full.

The Bancorp intends to use the net proceeds from the offering to invest in its subsidiary, Customers Bank, to fund its organic growth, and for working capital and other general corporate purposes. The Bancorp may also use a portion of the net proceeds to pursue acquisitions or investments in its current and prospective markets.

34

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Cautionary Note Regarding Forward-Looking Statements

This report and all attachments hereto as well as other written or oral communications made from time to time by Customers Bancorp may contain certain forward-looking information within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These statements relate to future events or future predictions, including events or predictions relating to future financial performance, and are generally identifiable by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “plan,” “intend,” “anticipates,” “strategies” or the negative thereof or comparable terminology, or by discussion of strategy that involve risks and uncertainties. These forward-looking statements are only predictions and estimates regarding future events and circumstances and involve known and unknown risks, uncertainties and other factors, including the risks described under “Risk Factors” that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. This information is based on various assumptions that may not prove to be correct. These forward-looking statements are subject to significant uncertainties and contingencies, many of which are beyond the control of the Bancorp and the Bank. Although the expectations reflected in the forward-looking statements are currently believed to be reasonable, future results, levels of activity, performance or achievements cannot be guaranteed. Accordingly, there can be no assurance that actual results will meet expectations or will not be materially lower than the results contemplated in this report and attachments hereto. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report or, in the case of documents referred to, the dates of those documents. Neither the Bancorp nor the Bank undertakes any obligation to release publicly or otherwise provide any revisions to these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as may be required under applicable law.

Management’s discussion and analysis represents an overview of the financial condition and results of operations, and highlights the significant changes in the financial condition and results of operations, as presented in the accompanying consolidated financial statements for Customers Bancorp, a financial holding company, and its wholly owned subsidiaries, including Customers Bank. This information is intended to facilitate your understanding and assessment of significant changes and trends related to Customers Bancorp’s financial condition and results of operations as of and for the three and six months ended June 30, 2013. All quarterly information in this Management’s Discussion and Analysis is unaudited. You should read this section in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operation” for the year ended December 31, 2012 included in Customers Bancorp’s filing on Form 10-K/A (Amendment No. 1) for the fiscal year ended December 31, 2012.

Critical Accounting Policies

We have adopted various accounting policies that govern the application of accounting principles generally accepted in the United States of America and that are consistent with general practices within the banking industry in the preparation of our financial statements. Our significant accounting policies are described in “NOTE 3 — “SIGNIFICANT ACCOUNTING POLICIES” to our audited financial statements for the year ended December 31, 2012 included in our 2012 Form 10-K.

Certain accounting policies involve significant judgments and assumptions by Customers Bancorp that have a material impact on the carrying value of certain assets and liabilities. We consider these accounting policies to be critical accounting policies. The judgment and assumptions used are based on historical experience and other factors, which are believed to be reasonable under the circumstances. Because of the nature of the judgments and assumptions management makes, actual results could differ from these judgments and estimates, which could have a material impact on the carrying values of our assets and liabilities and our results of operations. Actual results could differ from these estimates. There have been no material changes in our critical accounting policies, judgments and estimates, including assumptions or estimation techniques utilized, as compared to those disclosed in our 2012 Form 10-K.

Second Quarter Events of Note

On May 22, 2013, we announced the closing of our underwritten public offering of voting common stock (“the May 2013 Offering”). We raised $103.5 million in gross proceeds by issuing 6,179,104 shares of our voting common stock at a price to the public of $16.75 per share. Our net proceeds after deducting underwriting discounts and commissions and estimated offering expenses were approximately $97.7 million. We also issued options to purchase 710,597 shares of our common stock to our CEO and COO exercisable at the public offering price pursuant to their respective employment agreements in connection with the May 2013 Offering.

On June 26, 2013, we announced the formation of a business collaboration with and plans to invest up to $51 million in Religare Enterprises Limited (“Religare”), which is a diversified financial services company in India that is applying for a banking license in India. We have agreed, subject to completion of definitive agreements and the receipt of any necessary approvals, to purchase $22

35

million of Religare common stock from one of its promoters, $1 million of Religare common stock from Religare, and warrants to purchase $28 million of Religare common stock. We will be required to pay 25% of the total value of the warrants ($7 million) in advance, and this amount is non-refundable. These transactions are being negotiated and may change. We expect to fund the Religare investments with cash currently on hand and dividends from Customers Bank.

Working with Religare, we also plan to establish a small group of personnel at Customers Bank that will cater to professionals from South Asia and businesses that want to take advantage of opportunities in South Asia. This is a rapidly growing niche in our core markets from Boston to Washington. We also expect to refer business opportunities in India to Religare and expect that Religare will refer business opportunities within the United States to us. We expect this investment and collaboration to enhance our shareholder value.

The initial investment is expected to be completed during the third quarter of 2013, and the warrants must be exercised within 18 months of our initial investment.

Subsequent Events

On July 30, 2013, we completed an underwritten public offering of $55.0 million non-callable five-year senior unsecured notes, with interest at 6.375% payable quarterly. We granted the underwriters a 30-day option to purchase up to an additional 15% of the aggregate principal amount of the senior notes ($8.25 million) sold in the offering, solely to cover over-allotments, if any. Net proceeds were estimated to be $52.6 million, or $60.6 million, if the underwriters were to exercise the over-allotment option in full.

We intend to use the net proceeds from the offering to invest in our subsidiary, Customers Bank, to fund our organic growth, and for working capital and other general corporate purposes. We may also use a portion of the net proceeds to pursue acquisitions or investments in our current and prospective markets.

Acquisition Activity

CMS Bancorp Acquisition

Effective as of April 22, 2013, the Bancorp entered into an Amendment to Agreement and Plan of Merger (“Amendment”) to that certain Agreement and Plan of Merger, dated as of August 10, 2012 (“Merger Agreement”), by and between the Bancorp and CMS Bancorp, Inc. (“CMS”).

The Amendment extended from April 30, 2013 to December 31, 2013 the initial date at which, if the merger of CMS with and into the Bancorp pursuant to the Merger Agreement, as amended, has not closed, either the Bancorp or CMS may terminate the Agreement, subject to the termination date being extended until March 31, 2014 under certain specified circumstances.

The Amendment also updated the definitions of “CMS Valuation” and “Customers Valuation,” establishing the valuation date for book value as of March 31, 2013. The exchange ratio will remain fixed for the pendency of the transaction, using the multiples of 0.95x for CMS common equity, and 1.25x for Customers common equity for purposes of calculating the exchange ratio.

Other key terms agreed to by the Bancorp and CMS under the Amendment provided for:

• CMS’s ability to have terminated the Merger Agreement, as amended, exercisable at any time after May 20, 2013, if either (i) the Bancorp had not made an investment in CMS of $1.5 million of CMS Preferred Stock, or (ii) the Bancorp and CMS had not agreed upon the terms of a $2.0 million senior secured lending facility that the Bancorp will have made available to CMS;

• the Bancorp’s payment of $300,000 to CMS as partial reimbursement for merger-related expenses incurred as of March 31, 2013; and

• the Bancorp to pay to CMS a termination fee of $1.0 million in the event the Merger Agreement, as amended, is terminated under certain provisions primarily relating to failure to consummate the Parent Merger due to non-receipt of required government approvals.

• On May 22, 2013, the Bancorp purchased $1.5 million (1,500 shares) of CMS Series A Noncumulative Perpetual Preferred Stock, satisfying the first obligation listed above.

• On April 23, 2013, the Bancorp paid to CMS $300,000, satisfying the second obligation listed above.

36

Acacia Federal Savings Bank Acquisition

On April 4, 2013, we, Acacia Life Insurance Company (“Acacia”) and Ameritas Life Insurance Corp. (together with Acacia, “Sellers”) announced a mutual decision, due to delays in the receipt of regulatory approvals, not to extend the term of that certain Stock Purchase Agreement, dated as of June 20, 2012, as amended by those certain Amendment to Stock Purchase Agreement, dated as of December 18, 2012, Amendment No. 2 to Stock Purchase Agreement dated as of January 30, 2013, and Amendment No. 3 to Stock Purchase Agreement dated as of February 28, 2013, by and among the Bancorp and Sellers (the “Purchase Agreement”). Instead, on April 4, 2013, the parties entered into a Termination and Non-Renewal Agreement to terminate the Purchase Agreement and the transactions contemplated thereby (the “Termination Agreement”). Each party will bear its own costs and expenses in connection with the terminated transaction, without penalties. The parties mutually agreed that the termination was in each company’s best interest. All of Bancorp’s costs related to this transaction have been expensed.

New England Commercial Lending Acquisition

On March 28, 2013, Customers Bank completed the purchase of certain commercial loans from Michigan-based Flagstar Bank. Under the terms of the agreement, Customers Bank acquired $182.3 million in commercial loan commitments, of which $155.1 million had been drawn at March 28, 2013. Also, as part of the agreement, Customers Bank assumed the leases for two of Flagstar’s commercial lending offices in New England. The purchase price was 98.7% of loans outstanding.

Results of Operations

Second Quarter 2013 Compared to Second Quarter 2012

We had net income of $8.2 million for the three months ended June 30, 2013 and net income of $6.5 million for the three months ended June 30, 2012, an increase of $1.7 million or 26.5%. Diluted earnings per share were $0.38 and $0.56 for the three months ended June 30, 2013 and June 30, 2012, respectively, a comparative decrease of $0.18 per share or 32.6%. The decrease in diluted earnings per share is primarily the result of the inclusion of the 6.2 million shares issued in the public offering in May 2013 and the 7.1 million shares issued in the private offering in the third quarter of 2012 in the 2013 calculations of earnings per share. See “NOTE 5 — EARNINGS PER SHARE.”

37

Net Interest Income

Net interest income (the difference between the interest earned on loans, investments and interest-earning deposits with other banks, and interest paid on deposits and borrowings) is the primary source of our earnings. The following table summarizes net interest income and the related spread and margin for the periods indicated:

	Three Months Ended June 30,
	2013								2012
	Average Balance			Interest Income or Expense		Average Yield or Cost			Average Balance			Interest Income or Expense		Average Yield  or Cost
	(dollars in thousands)
Assets
Interest earning deposits	$	178,853		$	114		0.25	%	$	106,206		$	69		0.26	%
Investment securities, taxable (A)		181,573			1,082		2.38	%		294,143			2,219		3.02	%
Investment securities, non-taxable (A)		0			0		0.00	%		2,065			21		4.16	%
Loans held for sale		1,158,974			11,157		3.86	%		156,169			1,469		3.78	%
Loans, taxable (B)		1,696,979			19,099		4.51	%		1,409,862			15,881		4.53	%
Loans, non-taxable (B)		14,525			97		2.68	%		7,308			41		2.25	%
Less: Allowance for loan losses		(26,533	)							(15,705	)
Total interest earning assets		3,204,371			31,549		3.95	%		1,960,048			19,700		4.04	%
Non-interest earning assets		174,076								116,505
Total assets	$	3,378,447							$	2,076,553
Liabilities
Interest checking	$	44,094			47		0.42	%	$	34,714			49		0.57	%
Money market		1,061,972			1,864		0.70	%		780,689			1,919		0.99	%
Other savings		24,451			29		0.47	%		19,830			29		0.59	%
Certificates of deposit		1,278,898			3,196		1.00	%		886,137			3,427		1.56	%
Total interest bearing deposits		2,409,415			5,136		0.86	%		1,721,370			5,424		1.27	%
Other borrowings		357,780			421		0.47	%		39,951			124		1.26	%
Total interest-bearing liabilities		2,767,195			5,557		0.81	%		1,761,321			5,548		1.27	%
Non-interest-bearing deposits		269,618								152,885
Total deposits & borrowings		3,036,813					0.73	%		1,914,206					1.17	%
Other non-interest bearing liabilities		15,266								6,452
Total liabilities		3,052,079								1,920,658
Shareholders’ Equity		326,368								155,895
Total liabilities and shareholders’ equity	$	3,378,447							$	2,076,553
Net interest earnings					25,992								14,152
Tax equivalent adjustment (C)					52								34
Net interest earnings				$	26,044							$	14,186
Interest spread							3.21	%							2.87	%
Net interest margin							3.25	%							2.90	%
Net interest margin tax equivalent (C)							3.26	%							2.91	%

38

(A) For presentation in this table, balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(B) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans, and deferred loan fees.

(C) Full tax equivalent basis, using a 35% statutory tax rate to approximate interest income as a taxable asset.

Net interest income increased by $11.8 million, or 83.7% for the three months ended June 30, 2013 to $26.0 million, from $14.2 million for the three months ended June 30, 2012. This net increase was attributable to increases of $1.2 billion in average volume of average interest-earning assets, offset by an increase of $1.0 billion in average interest-bearing liabilities. The primary driver of the increase in net interest income was from higher loan volume from the following:

• $392.8 million increase in average mortgage warehouse loans due to growth of the mortgage warehouse lending business;

• $342.3 million increase in average commercial loans primarily due to growth of the commercial real estate loan portfolio; and

• $457.2 million increase in average multi-family loans due to growth of the multi-family lending business.

The key measure of our net interest income is net interest margin. Our net interest margin increased to 3.26% for the three months ended June 30, 2013 from 2.91% for the same period in 2012. The changes in yields were secondary to the changes in loan volume.

Additionally, interest income from mortgage warehouse loans, and commercial real estate loans increased by $3.6 million and $2.9 million, respectively offset by a decrease from investment securities of $115,000. Driving the rise in interest income was higher average loan volume for mortgage warehouse loans of $392.8 million, and commercial loan volume of $342.3 million. The higher loan volume was a result of our strategy to grow our mortgage warehouse lending and commercial real estate businesses. Sales of investment securities in the second quarter of 2012 lead to their lower average volume in the second quarter of 2013 compared to the same quarter in 2012. Interest expense for borrowings increased by $318,000, due to the increase in the level of borrowings.

Provision for Loan Losses

We have established an allowance for loan losses through a provision for loan losses charged as an expense on the statement of income. The loan portfolio is reviewed quarterly to evaluate the outstanding loans and to measure both the performance of the portfolio and the adequacy of the allowance for loan losses. At June 30, 2013, approximately 2.81% of the loan portfolio was covered under loss sharing agreements with the FDIC. Charge-offs incurred above the original estimated value are taken as additional provisions, and a corresponding receivable due from the FDIC is recorded through non-interest income for the portion anticipated to be recovered under the loss sharing agreements.

The provision for loan losses increased by $1.9 million to $4.6 million for the three months ended June 30, 2013, compared to $2.7 million for the same period in 2012. The increase in the 2013 provision is attributable to several different factors that include an increase in specific reserve requirements for loans not covered under FDIC loss share agreements as well as increased reserves due to the cash flow re-estimation process for the PCI loans which occurs on a quarterly basis. Additional reserves were also needed for new loan growth in the portfolio.

For more information about our provision and allowance for loan losses and our loss experience, see “Credit Risk” and “Asset Quality” herein.

39

Non-Interest Income

The chart below shows our results in the various components of non-interest income for the three months ended June 30, 2013 and 2012.

	Three Months Ended June 30,
	2013		2012
	(dollars in thousands)
Deposit fees	$	159	$	117
Mortgage warehouse transactional fees		3,868		3,384
Bank-owned life insurance		567		323
Gain on sale of investment securities, net		0		8,797
Accretion of FDIC loss sharing receivable		2,505		0
Gain on sale of loans		358		339
Other		721		278
Total non-interest income	$	8,178	$	13,238

Non-interest income was $8.2 million for the three months ended June 30, 2013, a decrease of $5.1 million from $13.2 million for the three months ended June 30, 2012. This decrease was due to security gains in the amount of $8.8 million during the three months ended June 30, 2012 compared to the same quarter ended June 30, 2013 when there were $0 security gains. This was offset by accretion of the FDIC loss sharing receivable in the amount of $2.5 million for the quarter ended June 30, 2013.

Non-Interest Expense

The below chart shows our results in the various components of non-interest expense for the three months ended June 30, 2013 and 2012.

	Three Months Ended June 30,
	2013		2012
	(dollars in thousands)
Salaries and employee benefits	$	8,508	$	5,598
Occupancy		2,110		1,849
Technology, communication and bank operations		1,061		691
Advertising and promotion		408		301
Professional services		1,252		769
FDIC assessments, taxes and regulatory fees		1,058		867
Other real estate owned		525		709
Loan workout		72		543
Loss contingency		0		0
Stock-offering expenses		0		1,340
Other		1,901		1,907
Total non-interest expenses	$	16,895	$	14,574

Non-interest expense was $16.9 million for the three months ended June 30, 2013, an increase of approximately $2.3 million as compared to non-interest expense of $14.6 million for the same period in 2012.

Salaries and employee benefits, which represent the largest component of non-interest expense, increased by 52.0% or $2.9 million to $8.5 million in the second quarter of 2013 versus $5.6 million in the same period in 2012. The primary reason for this increase was the addition of 80 full-time equivalent employees since June 30, 2012. This was directly related to the need for additional employees to support our organic growth and the expansion into new markets and lines of business.

Occupancy expense increased by 14.1%, or $261,000, rising from $1.8 million in the second quarter of 2012 to $2.1 million in the second quarter of 2013. The increase was related to building the infrastructure to support our growth as well as the cost of expansion into new markets.

40

Technology, communication and bank operations increased by 53.6% or $370,000 from $691,000 in the second quarter of 2012 to $1.1 million in the second quarter of 2013. The primary reason for this increase was related to building the infrastructure to support the growth through increased technology improvements and upgrades as well as the costs related to expanding of technological platforms into new markets. This corresponds with our philosophy of “high touch, high tech”, whereby we provide an exceptional level of customer service supported by state-of-the-art technology.

Professional services expense increased to $1.3 million in the second quarter of 2013 from $769,000 for the same period of 2012. This increase was primarily attributable to higher legal and consulting expenses in 2013 related to regulatory filings and other matters.

FDIC assessments, taxes and regulatory fees increased by 22.0% or $191,000 from $867,000 in the second quarter of 2012 to $1.1 million in the second quarter of 2013. The primary reason for this increase was related to increased FDIC assessments for the second quarter of 2013 compared to the same period ended 2012 which approximated $264,000. This was offset by a decrease in state franchise and sales and use tax in the amount of $71,000 from the second quarter of 2012 as compared to the same quarter of 2013.Other expenses remained constant at $1.9 million in the second quarter of 2013 compared to $1.9 million in the second quarter of 2012. In general, there was an overall increase in most categories within other expense as a result of the growth and expansion of the franchise. Loan origination expense increased by $350,000 for the three months ended June 30, 2013, compared to the same period in 2012. This was offset by a decrease of $317,000 and $150,000 in loan insurance expense and other miscellaneous expenses, respectively, for the quarter ended June 30, 2013 in contrast to the quarter ended June 30, 2012.

Income Taxes

The income tax expense was $4.4 million and $3.6 million for the three months ended June 30, 2013 and 2012, respectively. The increase in the income tax provision was primarily due to the increase in net income before taxes of approximately $2.6 million.

The effective tax rate for the three months ended June 30, 2013 and 2012 was approximately 35 percent.

Six months ended June 30, 2013 compared to the six months ended June 30, 2012

We had net income of $15.4 million for the six months ended June 30, 2013, and net income of $9.6 million for the six months ended June 30, 2012, an increase of $5.8 million or 60.3%. Diluted earnings per share were $0.76 for the six months ended June 30, 2013 and $0.83 per share for the six months ended June 30, 2012, a comparative decrease of $0.07 per share. The decrease in diluted earnings per share is primarily the result of the inclusion of the 6.2 million shares issued in the public offering in May 2013 and the 7.1 million shares issued in the private offering in the third quarter of 2012 in the 2013 calculations of earnings per share. See “NOTE 5 — EARNINGS PER SHARE.”

41

Net-Interest Income

Net interest income (the difference between the interest earned on loans, investments and interest-earning deposits with other banks, and interest paid on deposits and borrowings) is the primary source of our earnings. The following table summarizes net interest income and the related spread and margin for the periods indicated:

	For the Six Months Ended June 30,
	2013								2012
	Average Balance			Interest Income or Expense		Average Yield or Cost			Average Balance			Interest Income or Expense		Average Yield or Cost
	(dollars in thousands)
Assets
Interest earning deposits	$	176,757		$	222		0.25	%	$	103,392		$	134		0.26	%
Investment securities, taxable (A)		162,407			1,911		2.35	%		319,474			5,131		3.21	%
Investment securities, non taxable (A)		0			0		0.00	%		2,067			43		4.15	%
Loans held for sale		1,141,295			22,041		3.89	%		132,195			2,491		3.79	%
Loans, taxable (B)		1,538,982			35,126		4.60	%		1,332,238			30,482		4.60	%
Loans, non-taxable (B)		13,016			169		2.61	%		4,886			55		2.25	%
Less: Allowance for loan losses		(26,417	)							(15,609	)
Total interest earning assets		3,006,040			59,469		3.99	%		1,878,643			38,336		4.10	%
Non-interest earning assets		165,569								114,055
Total assets	$	3,171,609							$	1,992,698
Liabilities
Interest checking	$	40,016			85		0.43	%	$	34,611			99		0.57	%
Money market		1,030,921			3,568		0.70	%		756,298			3,997		1.06	%
Other savings		23,052			55		0.48	%		19,314			59		0.61	%
Certificates of deposit		1,235,853			6,564		1.07	%		814,265			6,341		1.57	%
Total interest bearing deposits		2,329,842			10,272		0.89	%		1,624,488			10,496		1.30	%
Other borrowings		265,072			680		0.52	%		65,607			278		0.85	%
Total interest-bearing liabilities		2,594,914			10,952		0.85	%		1,690,095			10,774		1.28	%
Non-interest-bearing deposits		262,279								142,594
Total deposits & borrowings		2,857,193					0.77	%		1,832,689					1.18	%
Other non-interest bearing liabilities		13,915								7,196
Total liabilities		2,871,108								1,839,885
Shareholders’ Equity		300,501								152,813
Total liabilities and shareholders’ equity	$	3,171,609							$	1,992,698
Net interest earnings					48,517								27,562
Tax equivalent adjustment (C)					91								53
Net interest earnings				$	48,608							$	27,615
Interest spread							3.21	%							2.92	%
Net interest margin (D)							3.25	%							2.95	%
Net interest margin tax equivalent (C)							3.26	%							2.95	%

(A) For presentation in this table, balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.

(B) Includes non-accrual loans, the effect of which is to reduce the yield earned on loans, and deferred loan fees.

(C) Full tax equivalent basis, using a 35% statutory tax rate to approximate interest income as a taxable asset.

42

Net interest income was $48.5 million for the six months ended June 30, 2013, compared to $27.6 million for the six months ended June 30, 2012, an increase of $20.9 million, or 76.0%. Increases in interest income, when comparing the six months ended June 30, 2013 to the six months ended June 30, 2012, were primarily comprised of mortgage warehouse loans interest income in the amount of $8.2 million, commercial real estate loans of $5.3 million, and interest income related to multi-family loans in the amount of $7.4 million. Growth in loan volume for these areas was responsible for these results. The sale of investment securities in the second quarter of 2012 was the primary cause of a $3.3 million decrease in interest income from investment securities for the six months ended June 30, 2013 compared to the same period of 2012. Interest expense for deposits of $10.3 million for the six months ended June 30, 2013 was a slight decrease from $10.5 million at June 30, 2012. Even though total deposits increased to $2.8 billion as of June 30, 2013, the deposit cost dropped from 1.30% at June 30, 2012 to 0.89% at June 30, 2013. The increase in non-interest bearing deposits, which went from $142.6 million at June 30, 2012 to $262.3 million at June 30, 2013, contributed to the decrease in interest expense of $224,000 when comparing the six months ended June 30, 2012 versus 2013.

Provision for Loan Losses

We have established an allowance for loan losses through a provision for loan losses charged as an expense on the statement of income. The loan portfolio is reviewed quarterly to evaluate the outstanding loans and to measure both the performance of the portfolio and the adequacy of the allowance for loan losses. At June 30, 2013, approximately 2.81% of the loan portfolio was covered under loss sharing agreements with the FDIC. Charge-offs incurred above the original estimated value are taken as additional provisions and a corresponding receivable due from the FDIC is recorded through non-interest income for the portion anticipated to be recovered under the loss sharing agreements.

The provision for loan losses increased by $1.2 million to $5.7 million for the six months ended June 30, 2013, compared to $4.5 million for the same period in 2012. The increase in the 2013 provision is attributable to several different factors that include an increase in charge-offs of $1 million, 10.6% growth in the loan portfolio, and the cash flow re-estimation process for the PCI loans which occurs on a quarterly basis. Offsetting the increase was a decline in specific reserves needed for impaired loans in the portfolio.

Non-Interest Income

The chart below shows our results in the various components of non-interest income for the six months ended June 30, 2013 and 2012.

	Six Months Ended June 30,
	2013		2012
	(dollars in thousands)
Deposit fees	$	289	$	233
Mortgage warehouse transactional fees		7,536		5,483
Bank-owned life insurance		1,043		589
Gain on sale of investment securities, net		0		9,006
Accretion of FDIC loss sharing receivable		3,722		655
Gain on sale of loans		408		339
Other		1,295		665
Total non-interest income	$	14,293	$	16,970

Non-interest income was $14.3 million for the six months ended June 30, 2013, a decrease of $2.7 million from $17.0 million for the six months ended June 30, 2012. The decrease was primarily the result of the $9.0 million gain realized on the sale of available-for-sale securities, the majority of which were realized in the second quarter of 2012 in the amount of $8.8 million, which was executed to provide funding for loan growth. Growth in warehouse lending volume, which is part of our strategic plan, contributed $7.5 million of fee income, year to date, to the increase in non-interest income. In addition, bank owned life insurance as well as accretion of FDIC loss sharing receivable effectuated increases of $454,000 and $3.1 million, respectively, in non-interest income when comparing the six months ended June 30, 2013 and 2012.

43

Non-Interest Expense

The below chart shows ours results in the various components of non-interest expense for the six months ended June 30, 2013 and 2012.

	Six Months Ended June 30,
	2013		2012
	(dollars in thousands)
Salaries and employee benefits	$	15,905	$	11,095
Occupancy		4,020		3,228
Technology, communication and bank operations		1,902		1,338
Advertising and promotion		523		576
Professional services		1,958		1,655
FDIC assessments, taxes and regulatory fees		2,405		1,536
Other real estate owned		561		815
Loan workout		746		902
Loss contingency		2,000		0
Stock offering expenses		0		1,340
Other		3,355		2,716
Total non-interest expenses	$	33,375	$	25,201

Non-interest expense was $33.4 million for the six months ended June 30, 2013, an increase of $8.2 million when compared to $25.2 million for the same period in 2012. Salaries and employee benefits, which represent the largest component of non-interest expense, increased by 43.4% or $4.8 million to $15.9 million for the six months ended June 30, 2013. The primary reason for this increase was the addition of 80 full-time equivalent employees since June 30, 2012. This was directly related to the need for additional employees to support our organic growth. In addition, stock-based compensation expense was $1.5 million for the six months ended June 30, 2013 and $1.3 million for the six months ended June 30, 2012 due to increased issuances of stock-based awards to certain officers of the Bancorp and Bank.

Occupancy expense increased 24.5% or $792,000, to $4.0 million for the six months ended June 30, 2013 from $3.2 million for the same period in 2012. The increase was related to building the infrastructure to support the growth of the Bank.

Technology, communications, and bank operations expense was $1.9 million for the six months ended June 30, 2013, an increase of 42.1% or $564,000, over $1.3 million in the same period of 2012. This increase was primarily due to an increase in technology requirements to account for loans acquired with deteriorated credit combined with the cost to expand into new markets.

Professional services expense increased to $1.9 million for the six months ended June 30, 2013 when compared to $1.7 million for the same period of 2012. This increase was primarily attributable to legal and consulting expenses incurred in 2013 related to regulatory filings and other matters.

In March 2013, a suspected fraud was discovered in the Bank’s loans held-for-sale portfolio. Total loans involved in this fraud initially appeared to be $5.2 million. In estimating the loss exposure, we believed a range of possible loss to have been between $1.5 million and $3.2 million. Accordingly we have provided a loss contingency of $2.0 million at June 30, 2013.

As a result of the postponement in May 2012 of our public offering of voting common stock, we recorded stock-offering expenses of $1.3 million. All of the costs for the May 2013 offering have been recorded through additional paid in capital at June 30, 2013.

Other expenses increased by $639,000 to $3.4 million for the six months ended June 30, 2013 from $2.7 million during the same period in 2012. An increase in loan origination expenses of $566,000, combined with an increase of $217,000 in other miscellaneous expenses were offset by a decrease in insurance expense of $385,000. The Company experienced higher expenses in most categories due to the expansion of the franchise which contributed to the overall increase in other expenses.

Income Taxes

The income tax expense was $8.3 million and $5.2 million, respectively, for the six months ended June 30, 2013 and 2012. The increase in the income tax provision was primarily due to the increase in net income before taxes of $8.9 million.

The effective tax rate for each of the six months ended June 30, 2013 and 2012 was approximately 35 percent.

44

Financial Condition

General

Total assets were $3.8 billion at June 30, 2013, a $592.0 million, or 18.49%, increase from total assets of $3.2 billion at December 31, 2012. Total liabilities were $3.4 billion at June 30, 2013, an increase of $481.7 million, or 16.43%, from total liabilities of $2.9 billion at December 31, 2012.

The major changes within our financial position occurred as the result of the growth in loans receivable not covered by loss sharing agreements with the FDIC, which increased by 44.10% or $536.7 million to $1.8 billion at June 30, 2013, from $1.2 billion at December 31, 2012. Approximately 29% of the loan growth from December 31, 2012 was the result of the purchase of $155.1 million of commercial loans from Flagstar Bank on March 28, 2013. In addition, as part of our organic growth strategy, we plan to establish a branch in the City of Philadelphia with the intention of servicing underserved and lower-and-moderate-income customers.

The following table sets forth certain key condensed balance sheet data:

	June 30, 2013		December 31, 2012
	(dollars in thousands)
Cash and cash equivalents	$	205,685	$	186,016
Investment securities, available for sale		182,314		129,093
Loans held for sale (including $1,148,001 and $1,248,935 of mortgage warehouse loans at fair value at June 30, 2013 and December 31, 2012)		1,414,943		1,439,889
Loans receivable not covered under FDIC Loss Sharing Agreements		1,753,658		1,216,941
Total loans receivable covered under FDIC Loss Sharing Agreements		91,614		107,526
Total loans receivable, net of the allowance for loan losses		1,817,130		1,298,630
Total assets		3,793,258		3,201,234
Total deposits		2,775,709		2,440,818
Federal funds purchased		120,000		5,000
Total other borrowings		505,000		471,000
Subordinated debt		2,000		2,000
Total liabilities		3,413,485		2,931,759
Total shareholders’ equity		379,773		269,475
Total liabilities and shareholders’ equity		3,793,258		3,201,234

Cash and Cash Equivalents

Cash and cash equivalents is comprised of cash and due from banks and interest earning deposits. Cash and due from banks consisted mainly of vault cash and cash items in the process of collection which amounted to $10.7 million and $12.9 million at June 30, 2013 and December 31, 2012, respectively. In addition, the interest-bearing deposits portion of cash and cash equivalents is primarily comprised of balances at the Federal Reserve Bank in the amount of $192.6 million and $172.0 million at June 30, 2013 and December 31, 2012, as well as at the Federal Home Loan Bank of Pittsburgh in the amount of $1.5 million at June 30, 2013 and $1.1 million at December 31, 2012. In total, cash and cash equivalents increased $19.7 million, or 10.6%, to $205.7 million at June 30, 2013 when compared to $186.0 million at December 31, 2012.

Investment Securities

Our investment securities portfolio is an important source of interest income and liquidity. It consists of government agency and mortgage-backed securities (guaranteed by an agency of the United States government or non-agency) and domestic corporate debt. In addition to generating revenue, the investment portfolio is maintained to manage interest-rate risk, provide liquidity, provide collateral for other borrowings, and diversify the credit risk of earning assets. The portfolio is structured to maximize net interest income, given changes in the economic environment, liquidity position, and balance sheet mix.

At June 30, 2013, our investment securities were $182.3 million compared to $129.1 million in December 31, 2012. The increase is primarily the result of our purchase of FNMA and GNMA Agency Community Reinvestment Act (CRA)-eligible mortgage-backed securities. These securities are comprised of loans in our assessment area. During the second quarter ended June 30, 2013, the Bank purchased over $34.1 million of these securities.

45

Unrealized gains and losses on available-for-sale securities are included in other comprehensive income and reported as a separate component of shareholders’ equity, net of the related tax effect.

Loans

Existing lending relationships are primarily with small businesses and individual consumers primarily in Bucks, Berks, Chester, Montgomery, Delaware, and Philadelphia Counties, Pennsylvania; Camden and Mercer Counties, New Jersey; and Westchester County and New York City, New York; and the New England area. The loan portfolio is primarily comprised of commercial real estate, construction, and commercial and industrial loans. In addition, we have a mortgage warehouse product line that provides financing to mortgage companies nationwide from the time of the home purchase or refinancing of a mortgage loan through the sale of the loan by the mortgage originator into the secondary market, either through a repurchase facility or the purchase of the underlying mortgages.

On March 28, 2013, Customers Bank completed the purchase of certain commercial loans from Michigan-based Flagstar Bank. Under the terms of the agreement, Customers Bank acquired $182.3 million in commercial loan commitments, of which $155.1 million was outstanding. Also, as part of the agreement, Customers Bank assumed the leases for two of Flagstar’s commercial lending offices in New England. The purchase price was 98.7% of loans outstanding.

Loans receivable, net, increased by $518.5 million to $1.8 billion at June 30, 2013 from $1.3 billion at December 31, 2012. In the first quarter of 2013, the bank acquired $182.3 million in commercial loans from Michigan-based Flagstar Bank of which $151.6 million is currently outstanding. In addition, the increase in Loans receivable, net, was also attributable to higher balances for commercial real estate of $420.0 million. Offsetting the increase was normal loan runoff for PCI and Covered loans.

The composition of net loans receivable at June 30, 2013 and December 31, 2012 was as follows:

	June 30, 2013			December 31, 2012
	(dollars in thousands)
Construction	$	25,769		$	27,792
Commercial real estate		35,901			44,901
Commercial and industrial		7,226			11,153
Residential real estate		19,213			19,952
Manufactured housing		3,505			3,728
Total loans receivable covered under FDIC loss sharing agreements (1)		91,614			107,526
Construction		33,459			28,897
Commercial real estate		1,255,481			835,488
Commercial and industrial		189,013			75,118
Mortgage warehouse		7,560			9,565
Manufactured housing		145,927			154,703
Residential real estate		120,782			109,430
Consumer		1,808			2,061
Total loans receivable not covered under FDIC loss sharing agreements		1,754,030			1,215,262
Total loans receivable		1,845,644			1,322,788
Deferred (fees) costs, net		(372	)		1,679
Allowance for loan losses		(28,142	)		(25,837	)
Loans receivable, net	$	1,817,130		$	1,298,630

(1) Loans that were acquired in two FDIC assisted transactions and are covered under loss sharing agreements with the FDIC are referred to as “covered” loans throughout this Management’s Discussion and Analysis.

46

The commercial and construction credit loan relationships are monitored on a periodic basis to evaluate the cash flows available for the repayment of loans. Management emphasizes loan quality and close monitoring of potential problem credits. Credit risk identification and review processes are utilized to assess and monitor the degree of risk in the loan portfolio. The lending and credit administration groups are charged with reviewing the loan portfolio and identifying changes in the economy or in a borrower’s circumstances which may affect the borrower’s ability to repay the loan, or the underlying value of the pledged collateral.

As a mortgage warehouse lender, we provide a form of financing to mortgage bankers by purchasing for resale the underlying residential mortgages on a short-term basis under a master repurchase agreement. We are subject to the risks associated with such lending, including, but not limited to, the risks of fraud, bankruptcy and default of the mortgage banker or of the underlying residential borrower, any of which could result in credit losses. The mortgage warehouse lending division monitors these mortgage originators by obtaining financial and other relevant information to reduce these risks during the lending period.

Covered loans are monitored and evaluated in the same manner to address the provision of the loss sharing arrangements with the FDIC.

It is the legacy and acquired construction and commercial real estate secured portion of the loan portfolio in which we are experiencing the most difficulty with delinquent and non-accrual loans. In September 2009, we tightened the underwriting policies for commercial real estate lending and construction lending. Although we believe that we have identified and appropriately allocated reserves against the riskiest of the loans in construction and commercial real estate, the possibility of further deterioration before the real estate market turns around may result in increased allocations of the Allowance for Loan Losses in that area in the future.

Other than the concentrations already addressed in warehouse lending, construction and commercial real estate, and manufactured housing, at June 30, 2013, we had no large exposures in other risky industries such as restaurants, home heating oil businesses or other industries that are typically viewed as high risk.

Credit Risk

Customers Bancorp manages credit risk by maintaining diversification in its loan portfolio, by establishing and enforcing rigorous underwriting standards, by intensive collection efforts and by establishing and performing periodic loan classification reviews. Management also attempts to anticipate and allow for credit risks by maintaining an adequate allowance for loan losses, to which credit losses are charged when they are identified and to which provisions are added when it is appropriate. The allowance for loan losses is evaluated periodically as management deems appropriate. The provision for loan losses was $4.6 million and $2.7 million for the three months ended June 30, 2013 and 2012, respectively and $5.7 million and $4.5 million for the six months ended June 30, 2013 and 2012, respectively. The allowance for loan losses was $28.1 million or .96% of total non-covered loans at June 30, 2013 and $25.8 million, or 1.20% of total non-covered loans, at December 31, 2012.

47

The chart below depicts changes in Customers Bancorp’s allowance for loan losses for the periods indicated.

Analysis of the Allowance for Loan Losses

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(dollars in thousands)
Balance at the beginning of the period	$	26,439		$	15,400		$	25,837		$	15,032
Loan charge-offs
Construction		1,471			979			1,471			2,191
Commercial real estate		1,481			938			1,891			1,143
Commercial and industrial		76			0			96			34
Residential real estate		65			179			198			200
Consumer and other		0			10			0			10
Total Charge-offs		3,093			2,106			3,656			3,578
Loan recoveries
Construction		0			0			0			0
Commercial real estate		8			14			60			50
Commercial and industrial		154			66			165			66
Residential real estate		10			1			7			5
Consumer and other		4			5			9			5
Total Recoveries		176			86			241			126
Total net charge-offs		2,917			2,020			3,415			3,452
Provision for loan losses		4,620			2,738			5,720			4,538
Balance at the end of the period	$	28,142		$	16,118		$	28,142		$	16,118
Net-charge-offs as a percentage of average non-covered loans		1.63	%		0.67	%		1.52	%		0.53	%

Asset Quality

We had impaired loans totaling $57.4 million at June 30, 2013, compared to $56.0 million at December 31, 2012. Non-accrual non-covered loans totaled $19.6 million at June 30, 2013, down from $22.3 million at December 31, 2012. We had net charge-offs of $2.9 million for the second quarter of 2013 and $2.0 million for the second quarter of 2012. We had net charge-offs of $3.4 million for the six months ended June 30, 2013 and $3.5 million for the six months ended June 30, 2012. There was $6.2 million and $4.0 million of non-covered other real estate owned as a result of foreclosure or voluntary transfer to us at June 30, 2013 and December 31, 2012, respectively.

To better understand our asset quality and related reserve adequacy, we break our loan portfolio into two categories; loans that were originated and loans that were acquired. Management believes that this additional information will allow investors to better understand the risk in our portfolio and the various types of credit reserves that are available to support loan losses in the future. Originated loans are supported with allowance for loan loss reserves. Acquired loans are supported with allowance for loan losses, non-accretable difference fair value marks, and cash reserves as described below.

48

Asset Quality at June 30, 2013
Loan Type	Total Loans			PCI Loans		Current		30-89 Days		Greater than 90 Days and Accruing		Non-accrual/ NPLs (a)		OREO (b)		NPAs (a)+(b)		NPLs to Total Loan Type (%)		NPAs to Loans + OREO (%)
(dollars in thousands)
Originated Loans
Legacy (prior to 9/09)	$	87,463		$	0	$	74,577	$	307	$	0	$	12,579	$	4,492	$	17,071		14.38		18.56
Warehouse - Repo		7,546			0		7,546		0		0		0		0		0		0.00		0.00
Warehouse - HFS		1,414,943			0		1,414,943		0		0		0		0		0		0.00		0.00
Manufactured		3,779			0		3,769		10		0		0		0		0		0.00		0.00
Commercial		533,290			0		532,072		341		0		877		0		877		0.16		0.16
Multi-family		662,592			0		662,592		0		0		0		0		0		0.00		0.00
Consumer/Mortgage		91,435			0		91,434		1		0		0		0		0		0.00		0.00
TDRs		4,192			0		1,579		0		0		2,613		0		2,613		62.33		62.33
Total Originated Loans		2,805,240			0		2,788,512		659		0		16,069		4,492		20,561		0.57		0.73
Acquired Loans
Berkshire		13,697			0		11,349		0		0		2,348		1,340		3,688		17.14		24.53
FDIC - Covered		51,743			0		43,415		348		0		7,980		4,362		12,342		15.42		22.00
FDIC - Non-covered		18			0		18		0		0		0		0		0		0.00		0.00
Manufactured Housing 2010		78,441			0		74,986		3,455		0		0		0		0		0.00		0.00
Manufactured Housing 2011		0			0		0		0		0		0		413		413		0.00		100.00
Manufactured Housing 2012		55,955			0		50,713		2,807		2,435		0		0		0		0.00		0.00
Flagstar		151,596			0		151,596		0		0		0		0		0		0.00		0.00
TDRs		3,010			0		1,741		117		0		1,152		0		1,152		38.27		38.27
Total Acquired Loans		354,460			0		333,818		6,727		2,435		11,480		6,115		17,595		3.24		4.88
Acquired PCI Loans
Berkshire		55,287			55,287		49,967		122		5,198		0		0		0
FDIC - Covered		39,248			39,248		4,473		0		34,775		0		0		0
Manufactured Housing 2011		6,352			6,352		3,113		767		2,472		0		0		0
Total Acquired PCI Loans		100,887			100,887		57,553		889		42,445		0		0		0
Subtotal		3,260,587			100,887		3,179,883		8,275		44,880		27,549		10,607		38,156
Unearned Origination Fees		(372	)		0		0		0		0		0		0		0
Total Portfolio	$	3,260,215		$	100,887	$	3,179,883	$	8,275	$	44,880	$	27,549	$	10,607	$	38,156		0.85		1.17

49

Asset Quality at June 30, 2013 (continued)
Loan Type	Total Loans			NPLs		ALL		Credit Marks			Cash Reserve		Total Credit Reserves		Reserves to Loans (%)		Reserves to NPLs (%)
(dollars in thousands)
Originated Loans
Legacy (prior to 9/09)	$	87,463		$	12,579	$	2,976	$	0		$	0	$	2,976		3.40		23.66
Warehouse - Repo		7,546			0		57		0			0		57		0.76		n/a
Warehouse - HFS		1,414,943			0		0		0			0		0		0.00		n/a
Manufactured		3,779			0		76		0			0		76		2.01		n/a
Commercial		533,290			877		6,270		0			0		6,270		1.18		714.94
Multi-family		662,592			0		3,315		0			0		3,315		0.50		n/a
Consumer/Mortgage		91,435			0		685		0			0		685		0.75		n/a
TDRs		4,192			2,613		220		0			0		220		5.25		n/a
Total Originated Loans		2,805,240			16,069		13,599		0			0		13,599		0.48		84.63
Acquired Loans
Berkshire		13,697			2,348		740		0			0		740		5.40		31.52
FDIC - Covered		51,743			7,980		2,265		0			0		2,265		4.38		28.38
FDIC - Non-covered		18			0		0		0			0		0		0.00		n/a
Manufactured Housing 2010		78,441			0		0		0			2,747		2,747		3.50		n/a
Manufactured Housing 2011		0			0		0		0			0		0		0.00		n/a
Manufactured Housing 2012		55,955			0		0		0			0		0		0.00		n/a
Flagstar		151,596			0		0		0			0		0		0.00		n/a
TDRs		3,010			1,152		35		0			0		35		1.16		n/a
Total Acquired Loans		354,460			11,480		3,040		0			2,747		5,787		1.63		50.41
Acquired PCI Loans
Berkshire		55,287			0		3,946		(2,077	)		0		1,869		3.38		n/a
FDIC - Covered		39,248			0		6,692		(719	)		0		5,973		15.22		n/a
Manufactured Housing 2011		6,352			0		602		4,602			0		5,204		81.93		n/a
Total Acquired PCI Loans		100,887			0		11,240		1,806			0		13,046		12.93		n/a
Subtotal		3,260,587			27,549		27,879		1,806			2,747		32,432
Unearned Origination Fees		(372	)		0		0		0			0		0
Unallocated		0			0		263		0			0		263
Total Portfolio	$	3,260,215		$	27,549	$	28,142	$	1,806		$	2,747	$	32,695		1.00		118.68

Originated Loans

Loans that the Bank has originated (excluding Warehouse-HFS) totaled $1.4 billion at June 30, 2013, or about 75.3% of total loans. Of these, $87.5 million represented loans that were originated prior to September 2009 (“Legacy Loans”), when the new management team lead by Jay Sidhu introduced new underwriting standards that management believes are more conservative. At June 30, 2013, the loans originated prior to September 2009 included $17.1 million of non-performing assets (“NPAs”) or 83.0% of total NPAs for originated loans. Loans originated after September 2009, which totaled approximately $1.3 billion, included $3.5 million of NPAs.

The high level of non-performing loans (“NPLs”) in the Legacy Loan portfolio (14.3% NPL / Loans) were supported with $3.0 million of reserves, or about 3.4% of total Legacy Loans. Commercial loans and multifamily loans totaled $1.2 billion and were supported with $9.6 million of the allowance for loan losses. Consumer and mortgage loans totaled $91.4 million and were supported by $685 thousand of the allowance for loan losses.

Acquired Loans

At June 30, 2013, we carried $455.3 million of acquired loans which was 24.67% of total loans excluding Warehouse HFS. When loans are acquired, they are recorded on the balance sheet at fair value. Acquired loans include purchased portfolios, FDIC failed-bank acquisitions, and unassisted acquisitions. At June 30, 2013, (i) 33.3% of acquired loans were purchased from Michigan-based Flagstar Bank on March 28, 2013, (ii) 15.2% of acquired loans were from the Berkshire Bancorp acquisition, (iii) 19.9% of acquired loans were from FDIC assisted acquisitions, which have loss share protection of 80% of credit losses being covered by the FDIC, and (iv) 30.9% of acquired loans represented manufactured housing loans that were purchased from Tammac Holding Corporation, a consumer finance company. Of the loans purchased from Tammac prior to 2012, 92.5% were supported by a $2.7 million cash reserve that is maintained in a demand deposit account at the Bank. All current losses and delinquent interest are covered with this reserve. We estimate that this cash reserve will be adequate to cover future losses and delinquent interest over the life of the portfolio. For the manufactured housing loans purchased in 2012 in the amount of $56.0 million, Tammac has an obligation to pay us the full payoff amount of a defaulted loan once the borrower vacates the property, which includes any principal, unpaid interest, or advances on the loans.

50

Most of the acquired loans were purchased at a discount. The price paid factored into management’s judgment on the credit and interest rate risk inherent in the portfolio at the time of purchase. Every quarter, management reassesses the risk and adjusts the fair value to incorporate changes in the credit outlook. Total NPAs in the acquired portfolio were $17.6 million, or 46.1% of total NPAs. Of this total, 70.1% have FDIC loss share protection (80% FDIC coverage of losses). At June 30, 2013, the FDIC-covered loans had $9.0 million of allowance for loan losses and $719 thousand of non-accretable difference fair value marks to support future credit losses. 9.7% of total NPAs were from loans related to the Berkshire acquisition, while 1.1% of total NPAs were from loans acquired from Tammac.

Acquired loans have a significantly higher percentage of non-performing assets than loans originated after September 2009. Management acquired these loans with the expectation that losses would be elevated, and therefore incorporated that expectation into the price paid. Management also created a Special Assets group that has a major focus on workouts for these acquired non-performing assets.

Held-For-Sale Loans

The loans held-for-sale portfolio included $1.1 billion of warehouse loans and $266.9 million of mortgages. Held-for-sale-loans are carried on our balance sheet at fair value or lower of cost or market, so an allowance for loan losses is not needed.

Nonperforming loans and assets not covered under FDIC loss sharing agreements

The tables below set forth non-performing loans and non-performing assets not covered under FDIC loss sharing agreements and the corresponding asset quality ratios at June 30, 2013 and December 31, 2012. Non-accruals loans decreased $2.7 million through June 30, 2013 when compared to December 31, 2012.

	June 30, 2013		December 31, 2012
	(dollars in thousands)
Loans 90+ days delinquent and still accruing	$	2,435	$	1,966
Non-accrual loans (1)	$	19,568	$	22,347
Other real estate owned		6,245		4,005
Non-performing non-covered assets	$	25,813	$	26,352

(1) Net of credit marks.

	June 30, 2013			December 31, 2012
Non-accrual non-covered loans to total non-covered loans		1.12	%		1.84	%
Non-performing, non-covered assets to total non-covered assets		1.47	%		2.16	%
Non-accrual loans and 90+ days delinquent to total non-covered assets		1.25	%		1.99	%
Allowance for loan losses to:
Total non-covered loans		0.96	%		1.20	%
Non-performing, non-covered loans		86.37	%		65.26	%
Non-performing, non-covered assets		65.48	%		55.34	%

We seek to manage our credit risk through the diversification of the loan portfolio and the application of policies and procedures designed to foster sound credit standards and monitoring practices. While various degrees of credit risk are associated with substantially all investing activities, the lending function carries the greatest degree of potential loss.

The tables below set forth non-accrual loans and non-performing assets covered under FDIC loss sharing agreements at June 30, 2013 and December 31, 2012.

	June 30, 2013		December 31, 2012
	(dollars in thousands)
Non-accrual covered loans (1)	$	7,980	$	10,504
Covered other real estate owned		19,569		4,109
Non-performing, covered assets	$	27,549	$	14,613

(1) Net of credit marks.

51

Deposits

We offer a variety of deposit accounts, including checking, savings, money market and time deposits. Deposits are obtained primarily from within our service area and through wholesale and broker networks. These networks provide low cost funding alternatives to retail deposits and provide diversity to our sources of funds. Total deposits grew by 13.7% to $2.8 billion at June 30, 2013 from $2.4 billion at December 31, 2012. Non-Interest Bearing Demand deposits grew $46.2 million while certificate of deposits grew $165.1 million. Time deposits $100,000 and over, increased $214.7 million compared to December 31, 2012 due to deposit promotions and the addition of the CDARS deposit program.

The components of deposits were as follows:

	June 30, 2013		December 31, 2012
	(dollars in thousands)
Demand, non-interest bearing	$	265,842	$	219,687
Demand, interest bearing		1,139,631		1,020,946
Savings		25,223		20,299
Time, $100,000 and over		923,159		708,487
Time, other		421,856		471,399
Total deposits	$	2,775,711	$	2,440,818

Capital Adequacy

Shareholders’ equity increased by $110.3 million to $379.8 million at June 30, 2013, from $269.5 million at December 31, 2012. Net income was $15.4 million for the six months ended June 30, 2013. On May 22, 2013, we raised $103.5 million in gross proceeds by issuing 6,179,104 shares of our voting common stock at a price to the public of $16.75 per share. Net proceeds after deducting underwriting discounts and commissions and offering expenses were $97.7 million.

In addition, the recognition of stock-based compensation increased equity by $1.5 million, which increase was offset by unrealized losses on securities of $4.6 million. Lastly, 23,413 shares of Voting Common Stock were issued during the first quarter of 2013 to directors who were entitled to receive these as compensation for their service as a director of Customers Bancorp or Customers Bank, which resulted in a $252,000 increase in shareholders’ equity.

We are subject to various regulatory capital requirements that are monitored by federal banking agencies. Failure to meet minimum capital requirements can lead to supervisory actions by regulators; any supervisory action could have a direct material effect on our financial statements. During the quarter ended June 30, 2013, Customers Bancorp downstreamed $114 million in cash to Customers Bank. At June 30, 2013, we met all capital adequacy requirements to which we were subject and were well capitalized.

52

The capital ratios for the Bank and Customers Bancorp at June 30, 2013 and December 31, 2012 were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective  Action Provisions
(Dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2013:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	406,314		13.32	%	$	244,036		8.0	%		N/A		N/A
Customers Bank	$	378,972		12.43	%	$	243,915		8.0	%	$	304,894		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	377,617		12.38	%	$	122,018		4.0	%		N/A		N/A
Customers Bank	$	350,275		11.49	%	$	121,958		4.0	%	$	182,937		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	377,617		11.20	%	$	134,895		4.0	%		N/A		N/A
Customers Bank	$	350,275		10.39	%	$	134,845		4.0	%	$	168,556		5.0	%
As of December 31, 2012:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	289,035		11.26	%	$	205,443		8.0	%		N/A		N/A
Customers Bank	$	244,710		9.53	%	$	205,442		8.0	%	$	256,802		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	262,719		10.23	%	$	102,722		4.0	%		N/A		N/A
Customers Bank	$	218,394		8.50	%	$	102,721		4.0	%	$	154,081		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	262,719		9.30	%	$	112,939		4.0	%		N/A		N/A
Customers Bank	$	218,394		7.74	%	$	112,896		4.0	%	$	141,120		5.0	%

Liquidity and Capital Resources

Liquidity for a financial institution is a measure of that institution’s ability to meet depositors’ needs for funds, to satisfy or fund loan commitments, and for other operating purposes. Ensuring adequate liquidity is an objective of the Asset/Liability Management process. We coordinate our management of liquidity with our interest-rate sensitivity and capital position. We strive to maintain a strong liquidity position.

Our investment portfolio provides periodic cash flows through regular maturities and amortization and can be used as collateral to secure additional liquidity funding. Our principal sources of funds are proceeds from stock and debt issuances, deposits, principal and interest payments on loans, and other funds from operations. We also maintain borrowing arrangements with the FHLB and the Federal Reserve Bank of Philadelphia to meet short-term liquidity needs. At June 30, 2013, our borrowing capacity with the FHLB was $792.4 million of which $110.0 million was utilized in long-term borrowings. Furthermore, at June 30, 2013, our available borrowing capacity with the Federal Reserve Bank of Philadelphia was $82.7 million.

Net cash flows provided by operating activities were $36.7 million for the six months ended June 30, 2013. Proceeds of loans held for sale in excess of the origination of loans held for sale contributed $22.2 million to cash flows provided by operating activities. Investing activities used net cash flows of $598.6 million for the six months ended June 30, 2013, as purchases less proceeds from maturities, calls and principal repayments of investment securities used $60.5 million. The net increase in loans in the amount of $377.6 million as well as the purchase of the Flagstar loans of $155.3 million used cash of $532.9 million. An additional purchase of bank-owned life insurance in the amount of $10 million during the first quarter ended March 31, 2013 also contributed to the total cash used in investing activities on a six-month year-to-date basis.

53

A $334.9 million net increase in deposits combined with an increase in both short-term borrowed funds and FHLB borrowings in the amounts of $99.0 million and $50.0 million, respectively, provided support for operating activities.

On May 22, 2013, we raised $103.5 million in gross proceeds by issuing 6,179,104 shares of our voting common stock at a price to the public of $16.75 per share. Net proceeds after deducting underwriting discounts and commissions and offering expenses were $97.7 million and were used for general corporate purposes.

Ultimately, the net result was an increase in cash and cash equivalents of $19.7 million for the six months ended June 30, 2013 as compared to an increase of $48.5 for the same period ended June 30, 2012.

Other Information

Regulatory Matters and Pending Legislation

In 2008, the U.S. financial system and broader economy faced the most severe financial crisis since the Great Depression. The crisis threatened the stability of the financial system and contributed to the failure of numerous financial institutions, including some large, complex financial institutions. In response to the crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which became law on July 21, 2010. The act includes numerous reforms to strengthen oversight of financial services firms and consolidate certain consumer protection responsibilities within the Bureau of Consumer Financial Protection, commonly known as the Consumer Financial Protection Bureau (CFPB). Although the Dodd-Frank Act exempts small institutions, such as community banks and credit unions, from several of its provisions, and authorizes federal regulators to provide small institutions with relief from certain regulations, it also contains provisions that will impose additional restrictions and compliance costs on these institutions. Determining which provisions will affect us is difficult, because the impact may depend on how agencies implement certain provisions through their rules, and many of the rules needed to implement the act have not been finalized.

On September 12, 2010, the Basel Committee on Banking Supervision announced an agreement to a strengthened set of capital requirements for internationally active banking organizations in the United States and around the world, known as Basel III. Basel III narrows the definition of capital, introduces requirements for minimum Tier 1 common capital, increases requirements for minimum Tier 1 capital and total risk-based capital, and changes risk-weighting methodologies. Basel III is scheduled to be phased in over time until fully phased in by January 1, 2019. On July 2, 2013, the Federal Reserve adopted a final rule regarding new capital requirements pursuant to Basel III. These rules, which are currently scheduled to become effective on January 1, 2015 for community banks, could increase the required amount of regulatory capital that we must hold and lead to limitations on the dividend payments to us by Customers Bank. We are evaluating the impact of the new capital requirements on our business.

Effect of Government Monetary Policies

Our earnings are and will be affected by domestic economic conditions and the monetary and fiscal policies of the United States government and its agencies. An important function of the Federal Reserve Board is to regulate the money supply and interest rates. Among the instruments used to implement those objectives are open market operations in United States government securities and changes in reserve requirements against member bank deposits. These instruments are used in varying combinations to influence overall growth and distribution of bank loans, investments, and deposits, and their use may also affect rates charged on loans or paid for deposits.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

At June 30, 2013, there have been no material changes in the information disclosed under “Quantitative and Qualitative Disclosures About Market Risk” included within Customers Bancorp’s 2012 Form 10-K.

Item 4. Controls and Procedures

As of the end of the period covered by this report, Customers Bancorp carried out an evaluation, under the supervision and with the participation of Customers Bancorp’s management, including Customers Bancorp’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of Customers Bancorp’s disclosure controls and procedures as defined and in the Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon the evaluation, the Chief Executive Officer and Chief Financial Officer concluded that Customers Bancorp’s disclosure controls and procedures were effective at June 30, 2013.

During the quarter ended June 30, 2013, there have been no changes in the Bancorp’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Bancorp’s internal control over financial reporting.

54

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

Except as described below, neither Customers Bancorp nor any of its subsidiaries is involved in, nor is any of their property the subject of, any material legal proceedings other than ordinary routine litigation incident to their business.

On August 7, 2013, we received a letter from the Federal Reserve Bank of Philadelphia (Reserve Bank) of its determination, in connection with its consumer compliance and Community Reinvestment Act examinations of the Bank, to make a referral to the Department of Justice. The Reserve Bank has informed us that it has made the referral based on its contention that the Bank has not complied with certain provisions of the Equal Credit Opportunity Act, Fair Housing Act and Regulation B with regard to portions of the City of Philadelphia. As of the date hereof, we have not received any communication from the Department of Justice with respect to this matter. We believe that the Bank has complied with these laws and regulations. We intend to cooperate fully with the Department of Justice if and when any review regarding this matter is commenced.

Item 1A. Risk Factors

In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in “Risk Factors” included within the 2012 Form 10-K and below. The risks described herein and in the 2012 Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. See “Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Cautionary Note Regarding Forward-Looking Statements.”

55

The short-term and long-term impact of the new regulatory capital standards and the forthcoming new capital rules on U.S. banks is uncertain.

On September 12, 2010, the Basel Committee on Banking Supervision, announced an agreement to a strengthened set of capital requirements for internationally active banking organizations in the United States and around the world, known as Basel III. Basel III narrows the definition of capital, introduces requirements for minimum Tier 1 common capital, increases requirements for minimum Tier 1 capital and total risk-based capital, and changes risk-weighting methodologies. Basel III is scheduled to be phased in over time until fully phased in by January 1, 2019.

On July 2, 2013, the Federal Reserve adopted a final rule regarding new capital requirements pursuant to Basel III. These rules, which are currently scheduled to become effective on January 1, 2015 for community banks, could increase the required amount of regulatory capital that we must hold and lead to limitations on the dividend payments to us by Customers Bank.

Various provisions of the Dodd-Frank Act increase the capital requirements of bank holding companies, such as Customers Bancorp, and non-bank financial companies that are supervised by the Federal Reserve. The leverage and risk-based capital ratios of these entities may not be lower than the leverage and risk-based capital ratios for insured depository institutions. While the Basel III changes and other regulatory capital requirements will likely result in generally higher regulatory capital standards, we are evaluating the new rules and their effect on us and our bank subsidiaries.

We may suffer losses due to minority investments in other financial institutions or related companies.

From time to time, we may make or consider making minority investments in other financial institutions or technology companies in the financial services business. If we do so, we may not be able to influence the activities of companies in which we invest, and may suffer losses due to these activities. Investments in foreign companies could pose additional risks as a result of distance, language barriers and potential lack of information (for example, foreign institutions, including foreign financial institutions, may not be obligated to provide as much information regarding their operations as those in the United States). Our previously announced,

56

contemplated investment in Religare Enterprises Limited (or Religare), which is a diversified financial services company and is applying for a banking license in India, represents such an investment. Our investment in Religare securities is subject to approval by India’s Foreign Investment Promotion Board and may be subject to our regulators, including the Federal Reserve, and if Religare obtains a banking license, we also may be required to obtain approval to hold 5% or more of Religare’s common stock. There is no assurance of the timing or Religare’s ability to obtain a banking license in India, which is important to our anticipated investment and cross-referral strategy and the results of this strategy, cannot be predicted. Our investment in Religare common stock is not conditioned on Religare receiving a banking license in India. Our alliance and referrals to and from Religare are yet to be defined, and our levels of new business derived from such referrals cannot be predicted. These and other factors may result in lower-than-expected returns, or a loss, on our investment in Religare. We do not expect to receive any dividends on our investment in Religare securities. In addition, our investment in Religare may not have the market liquidity needed to realize a gain or avoid losses on our investment and any dispositions of our Religare common stock or warrants may be limited or delayed by market conditions or the need for regulatory or other approvals in India, and the value of our investment will be subject to fluctuations in the currency exchange rates between the Indian rupee and the United States dollar. The warrants we have agreed to purchase will be subject to mandatory exercise within 18 months of issuance. We cannot be assured that the mandatory exercise of the warrants will be in our best interest and while the warrants are expected to be listed on an India securities exchange, we may not be able to find a purchaser for the warrants prior to the mandatory exercise deadline. In addition, our upfront payment of $7 million for the warrants is non-refundable and unless the warrants are exercised or sold timely, we could lose this entire amount. The definitive terms of the Religare transactions and relationships are being negotiated, and the currently contemplated terms and conditions may change.

We will be required to hold capital for United States bank regulatory purposes to support our investment in Religare securities.

Under the newly adopted U.S. capital adequacy rules, which are currently scheduled to be effective as of January 1, 2015, we will have to hold risk based capital based on the amount of Religare common stock we own. The impact of the final capital adequacy rules is still being evaluated. Depending upon the implementation of the final U.S. capital adequacy rules, these investments, to the extent still held, will be risk weighted within a range of 100% to 400% of the amount of the investment. Any capital that is required to be used to support our Religare investment will not be available to support our United States operations or Customers Bank, if needed.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On May 22, 2013, the Bancorp completed an underwritten public offering of its voting common stock under its shelf registration statement on Form S-3 (Registration Statement No. 333-188040) which was declared effective by the SEC on April 30, 2013, including the prospectus contained therein, and the preliminary prospectus supplement dated May 9, 2013 and final prospectus supplement dated May 15, 2013.

In the offering, the Bancorp registered and issued 6,179,104 shares of its voting common stock, including 805,970 shares as a result of the exercise of an underwriters’ over-allotment option, at a price to the public of $16.75 per share, resulting in gross proceeds of $103.5 million. FBR Capital Markets & Co., Sterne, Agee & Leach, Inc., and Boenning & Scattergood, Inc. acted as the underwriters for the offering.

The net proceeds to the Bancorp after deducting underwriting discounts and commissions and estimated offering expenses were approximately $97.7 million. Underwriting discounts and commissions equaled $5.2 million, and a reasonable estimate of the total expenses of the offering, excluding underwriting discounts and commissions, was approximately $2.0 million, which includes $1.4 million in share-based compensation expense (that will be recognized over the five-year vesting period) relating to options to purchase an aggregate of 617,910 and 92,687 shares of voting common stock, representing 10% and 1.5% of the number of shares issued in the May 2013 offering of voting common stock, that were granted to the Chief Executive Officer and the Chief Operating Officer in connection with the completion of the offering pursuant to their existing employment agreements, respectively.

As of June 30, 2013, the Bancorp had invested $75.0 million of the net proceeds in its wholly owned subsidiary, Customers Bank, and deposited the remaining $22.7 million in a non-interest-bearing account at Customers Bank.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None

57

Item 6. Exhibits

Exhibit No.	Description
1.1	Underwriting Agreement, dated as of May 15, 2013, by and among Customers Bancorp, Inc., Customers Bank and FBR Capital Markets & Co., as representative of the underwriters named therein, incorporated by reference to Exhibit 1.1 to the Customers Bancorp 8-K filed with the SEC on May 16, 2013
1.2	Underwriting Agreement, dated as of July 24, 2013, by and among Customers Bancorp, Inc., Customers Bank and Janney Montgomery Scott LLC, as representative of the underwriters named therein, incorporated by reference to Exhibit 1.1 to the Customers Bancorp 8-K filed with the SEC on July 26, 2013
2.1	Amendment to Agreement and Plan of Merger, dated as of April 22, 2013, by and among Customers Bancorp, Inc. and CMS Bancorp, Inc., incorporated by reference to Exhibit 2.1 to the Customers Bancorp Form 8-K filed with the SEC on April 24, 2013
3.1	Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012
3.2	Amended and Restated Bylaws of Customers Bancorp, incorporated by reference to Exhibit 3.2 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012
3.3	Articles of Amendment to the Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on July 2, 2012
4.1	Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.1 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013
4.2	First Supplemental Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.2 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013
4.3	6.375% Global Note in aggregate principal amount of $55,000,000, issued July 30, 2013, incorporated by reference to Exhibit 4.3 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013
10.1	Termination and Non-Renewal Agreement, dated as of April 4, 2013, by and among Customers Bancorp, Inc., Acacia Life Insurance Company, and Ameritas Life Insurance Corp., incorporated by reference to Exhibit 10.1 to the Customers Bancorp Form 8-K filed with the SEC on April 10, 2013
31.1.	Certification of the Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a)
31.2.	Certification of the Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a)
32.1.	Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
32.2.	Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
101	The Exhibits furnished* as part of this report are as follows:
101.INS	XBRL Instance Document.*
101.SCH	XBRL Taxonomy Extension Schema Document.*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.*
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document.*

* These interactive data files are being filed as part of this Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

58

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Customers Bancorp, Inc.
August 9, 2013	By:	/s/ Jay S. Sidhu
	Name:	Jay S. Sidhu
	Title:	Chairman and Chief Executive Officer (Principal Executive Officer)
	Customers Bancorp, Inc.
August 9, 2013	By:	/s/ James D. Hogan
	Name:	James D. Hogan
	Title:	Chief Financial Officer (Principal Financial Officer)

59

Exhibit Index

1.1	Underwriting Agreement, dated as of May 15, 2013, by and among Customers Bancorp, Inc., Customers Bank and FBR Capital Markets & Co., as representative of the underwriters named therein, incorporated by reference to Exhibit 1.1 to the Customers Bancorp 8-K filed with the SEC on May 16, 2013
1.2	Underwriting Agreement, dated as of July 24, 2013, by and among Customers Bancorp, Inc., Customers Bank and Janney Montgomery Scott LLC, as representative of the underwriters named therein, incorporated by reference to Exhibit 1.1 to the Customers Bancorp 8-K filed with the SEC on July 26, 2013
2.1	Amendment to Agreement and Plan of Merger, dated as of April 22, 2013, by and among Customers Bancorp, Inc. and CMS Bancorp, Inc., incorporated by reference to Exhibit 2.1 to the Customers Bancorp Form 8-K filed with the SEC on April 24, 2013
3.1	Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012
3.2	Amended and Restated Bylaws of Customers Bancorp, incorporated by reference to Exhibit 3.2 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012
3.3	Articles of Amendment to the Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on July 2, 2012
4.1	Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.1 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013
4.2	First Supplemental Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.2 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013
4.3	6.375% Global Note in aggregate principal amount of $55,000,000, issued July 30, 2013, incorporated by reference to Exhibit 4.3 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013
10.1	Termination and Non-Renewal Agreement, dated as of April 4, 2013, by and among Customers Bancorp, Inc., Acacia Life Insurance Company, and Ameritas Life Insurance Corp., incorporated by reference to Exhibit 10.1 to the Customers Bancorp Form 8-K filed with the SEC on April 10, 2013
31.1.	Certification of the Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a)
31.2.	Certification of the Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a)
32.1.	Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
32.2.	Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
101	The Exhibits furnished* as part of this report are as follows:
101.INS	XBRL Instance Document.*
101.SCH	XBRL Taxonomy Extension Schema Document.*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.*
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document.*

* These interactive data files are being filed as part of this Report, and, in accordance with Rule 402 of Regulation S-T, shall not be deemed filed for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under those sections.

60

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) / 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Jay S. Sidhu, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Customers Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Jay S. Sidhu

Jay S. Sidhu

Chairman and Chief Executive Officer

(Principal Executive Officer)

Date: August 9, 2013

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) / 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, James D. Hogan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Customers Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ James D. Hogan

James D. Hogan

Chief Financial Officer

(Principal Financial Officer)

Date: August 9, 2013

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Customers Bancorp, Inc. (the “Corporation”) on Form 10-Q for the period ending June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jay S. Sidhu, Chairman and Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date: August 9, 2013	/s/        Jay S. Sidhu
	Jay S. Sidhu, Chairman and Chief Executive Officer (Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Customers Bancorp, Inc. (the “Corporation”) on Form 10-Q for the period ending June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James D. Hogan, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date: August 9, 2013	/s/        James D. Hogan
	James D. Hogan, Chief Financial Officer (Principal Financial Officer)

XML

Share-Based Compensation

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

NOTE 9 — SHARE-BASED COMPENSATION

Stock Options

Options to purchase an aggregate of 617,910 and 92,687 shares of voting common stock, representing 10% and 1.5% of the number of shares issued in the May 2013 offering of voting common stock, were granted to the Chief Executive Officer and the Chief Operating Officer in connection with the completion of the offering pursuant to their existing employment agreements, respectively. The options will vest over five years from the date of grant, subject to a 50% increase in the value options to purchase of the Bancorp’s Voting Common Stock and have a term of 10 years. In addition, in matters unrelated to the May 2013 offering, options to purchase an aggregate of 50,000 shares of Voting Common Stock were granted to certain other officers. The fair values of the options were estimated using the Black-Scholes option pricing model. The following table presents the weighted-average assumptions used and the resultant weighted-average fair value of the options.

	2013			2012
Weighted-average risk-free interest rate		1.39	%		1.15	%
Expected dividend yield		0.00	%		0.00	%
Weighted-average expected volatility		6.54	%		17.47	%
Expected life (in years)		7.00			6.98
Weighted-average fair value	$	2.04		$	3.04

The following table summarizes stock option activity for the six months ended June 30, 2013.

	Number of Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term in Years		Aggregate Intrinsic Value
	(aggregate intrinsic value in thousands)
Outstanding at January 1, 2013		2,003,889	$	12.49
Granted		760,597		16.66
Outstanding at June 30, 2013		2,764,486	$	13.64		8.40	$	7,650
Vested and expected to vest at June 30, 2013		2,764,486		13.64		8.40		7,650
Exercisable at June 30, 2013		14,438	$	20.06		3.82	$	13

XML

Loans Receivable and Allowance for Loan Losses - Schedule of Allowance for Loan Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	$ 26,439	$ 15,400	$ 25,837	$ 15,032
Charge-offs	(3,093)	(2,106)	(3,656)	(3,578)
Recoveries	176	86	241	126
Provision for loan losses	4,620	2,738	5,720	4,538
Ending Balance	28,142	16,118	28,142	16,118
Loans:
Individually evaluated for impairment	57,439	45,026	57,439	45,026
Collectively evaluated for impairment	1,687,318	1,475,118	1,687,318	1,475,118
Loans acquired with credit deterioration	100,887	145,066	100,887	145,066
Total	1,845,644	1,665,210	1,845,644	1,665,210
Allowance for loan losses:
Individually evaluated for impairment	4,280	5,184	4,280	5,184
Collectively evaluated for impairment	12,623	7,938	12,623	7,938
Loans acquired with credit deterioration	11,239	2,996	11,239	2,996
Total Allowance for loan and lease losses	28,142	16,118	28,142	16,118
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	1,990	1,464	1,477	1,441
Charge-offs	(76)	0	(96)	(34)
Recoveries	154	66	165	66
Provision for loan losses	417	(27)	939	30
Ending Balance	2,485	1,503	2,485	1,503
Loans:
Individually evaluated for impairment	10,147	3,232	10,147	3,232
Collectively evaluated for impairment	180,933	68,212	180,933	68,212
Loans acquired with credit deterioration	5,159	12,253	5,159	12,253
Allowance for loan losses:
Individually evaluated for impairment	602	481	602	481
Collectively evaluated for impairment	1,477	868	1,477	868
Loans acquired with credit deterioration	406	154	406	154
Total Allowance for loan and lease losses	2,485	1,503	2,485	1,503
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	15,223	7,117	15,439	7,029
Charge-offs	(1,481)	(938)	(1,891)	(1,143)
Recoveries	8	14	60	50
Provision for loan losses	2,935	2,073	3,077	2,330
Ending Balance	16,685	8,266	16,685	8,266
Loans:
Individually evaluated for impairment	33,344	25,648	33,344	25,648
Collectively evaluated for impairment	1,200,004	405,632	1,200,004	405,632
Loans acquired with credit deterioration	58,034	77,378	58,034	77,378
Allowance for loan losses:
Individually evaluated for impairment	1,818	1,651	1,818	1,651
Collectively evaluated for impairment	9,402	4,995	9,402	4,995
Loans acquired with credit deterioration	5,465	1,620	5,465	1,620
Total Allowance for loan and lease losses	16,685	8,266	16,685	8,266
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	4,279	5,099	3,991	4,656
Charge-offs	(1,471)	(979)	(1,471)	(2,191)
Recoveries	0	0	0	0
Provision for loan losses	1,509	232	1,797	1,887
Ending Balance	4,317	4,352	4,317	4,352
Loans:
Individually evaluated for impairment	10,970	14,309	10,970	14,309
Collectively evaluated for impairment	31,695	7,809	31,695	7,809
Loans acquired with credit deterioration	16,563	23,203	16,563	23,203
Allowance for loan losses:
Individually evaluated for impairment	1,533	3,007	1,533	3,007
Collectively evaluated for impairment	279	181	279	181
Loans acquired with credit deterioration	2,505	1,164	2,505	1,164
Total Allowance for loan and lease losses	4,317	4,352	4,317	4,352
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	3,248	775	3,233	844
Charge-offs	(65)	(179)	(198)	(200)
Recoveries	10	1	7	5
Provision for loan losses	359	483	510	431
Ending Balance	3,552	1,080	3,552	1,080
Loans:
Individually evaluated for impairment	2,901	1,754	2,901	1,754
Collectively evaluated for impairment	121,973	89,617	121,973	89,617
Loans acquired with credit deterioration	15,121	22,413	15,121	22,413
Allowance for loan losses:
Individually evaluated for impairment	327	45	327	45
Collectively evaluated for impairment	1,022	994	1,022	994
Loans acquired with credit deterioration	2,203	41	2,203	41
Total Allowance for loan and lease losses	3,552	1,080	3,552	1,080
Manufactured Housing [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	846	33	750	18
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	(168)	8	(72)	23
Ending Balance	678	41	678	41
Loans:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	143,925	96,713	143,925	96,713
Loans acquired with credit deterioration	5,507	9,097	5,507	9,097
Allowance for loan losses:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	76	41	76	41
Loans acquired with credit deterioration	602	0	602	0
Total Allowance for loan and lease losses	678	41	678	41
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	141	95	154	61
Charge-offs	0	(10)	0	(10)
Recoveries	4	5	9	5
Provision for loan losses	(39)	(16)	(57)	18
Ending Balance	106	74	106	74
Loans:
Individually evaluated for impairment	77	83	77	83
Collectively evaluated for impairment	1,228	5,141	1,228	5,141
Loans acquired with credit deterioration	503	722	503	722
Allowance for loan losses:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	48	57	48	57
Loans acquired with credit deterioration	58	17	58	17
Total Allowance for loan and lease losses	106	74	106	74
Mortgage Warehouse [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	54	763	71	929
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	2	39	(15)	(127)
Ending Balance	56	802	56	802
Loans:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	7,560	801,994	7,560	801,994
Loans acquired with credit deterioration	0	0	0	0
Allowance for loan losses:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	56	802	56	802
Loans acquired with credit deterioration	0	0	0	0
Total Allowance for loan and lease losses	56	802	56	802
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	658	54	722	54
Charge-offs	0	0	0	0
Recoveries	0	0	0	0
Provision for loan losses	(395)	(54)	(459)	(54)
Ending Balance	263	0	263	0
Loans:
Individually evaluated for impairment		0		0
Collectively evaluated for impairment		0		0
Loans acquired with credit deterioration		0		0
Allowance for loan losses:
Individually evaluated for impairment	0	0	0	0
Collectively evaluated for impairment	263	0	263	0
Loans acquired with credit deterioration	0	0	0	0
Total Allowance for loan and lease losses	$ 263	$ 0	$ 263	$ 0

XML

CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Interest income:
Loans held for sale	$ 11,157	$ 1,469	$ 22,041	$ 2,491
Loans receivable, taxable, including fees	19,099	15,881	35,126	30,482
Loans receivable, non-taxable, including fees	97	41	169	55
Investment securities, taxable	1,082	2,219	1,911	5,131
Investment securities, non-taxable	0	21	0	43
Other	114	69	222	134
Total interest income	31,549	19,700	59,469	38,336
Interest expense:
Deposits	5,136	5,424	10,272	10,496
Federal funds purchased	74	1	79	3
Borrowed funds	330	106	568	240
Subordinated debt	17	17	33	35
Total interest expense	5,557	5,548	10,952	10,774
Net interest income	25,992	14,152	48,517	27,562
Provision for loan losses	4,620	2,738	5,720	4,538
Net interest income after provision for loan losses	21,372	11,414	42,797	23,024
Non-interest income
Deposit fees	159	117	289	233
Mortgage warehouse transactional fees	3,868	3,384	7,536	5,483
Bank-owned life insurance	567	323	1,043	589
Gain on sale of investment securities	0	8,797	0	9,006
Accretion of FDIC loss sharing receivable	2,505	0	3,722	655
Gain on sale of loans	358	339	408	339
Other	721	278	1,295	665
Total non-interest income	8,178	13,238	14,293	16,970
Non-interest expense
Salaries and employee benefits	8,508	5,598	15,905	11,095
Occupancy	2,110	1,849	4,020	3,228
Technology, communications and bank operations	1,061	691	1,902	1,338
Advertising and promotion	408	301	523	576
Professional services	1,252	769	1,958	1,655
FDIC assessments, taxes, and regulatory fees	1,058	867	2,405	1,536
Other real estate owned	525	709	561	815
Loan workout	72	543	746	902
Loss contingency	0	0	2,000	0
Stock-offering expenses	0	1,340	0	1,340
Other	1,901	1,907	3,355	2,716
Total non-interest expense	16,895	14,574	33,375	25,201
Income before income tax expense	12,655	10,078	23,715	14,793
Income tax expense	4,429	3,574	8,300	5,177
Net income	$ 8,226	$ 6,504	$ 15,415	$ 9,616
Basic earnings per share	$ 0.39	$ 0.57	$ 0.78	$ 0.85
Diluted earnings per share	$ 0.38	$ 0.56	$ 0.76	$ 0.83

XML

Acquisition Activity

6 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Acquisition Activity

NOTE 2 — ACQUISITION ACTIVITY

CMS Bancorp Acquisition

Effective as of April 22, 2013, the Bancorp entered into an Amendment to the Agreement and Plan of Merger (“Amendment”) to that certain Agreement and Plan of Merger, dated as of August 10, 2012 (“Merger Agreement”), by and between the Bancorp and CMS Bancorp, Inc. (“CMS”).

The Amendment extended from April 30, 2013 to December 31, 2013 the initial date at which, if the merger of CMS with and into the Bancorp pursuant to the Merger Agreement, as amended, has not closed, either the Bancorp or CMS may terminate the Agreement, subject to the termination date being extended until March 31, 2014 under certain specified circumstances.

The Amendment also updated the definitions of “CMS Valuation” and “Customers Valuation,” establishing the valuation date for book value as of March 31, 2013. The exchange ratio will remain fixed for the pendency of the transaction, using the multiples of 0.95x for CMS common equity, and 1.25x for Customers common equity for purposes of calculating the exchange ratio.

Other key terms agreed to by the Bancorp and CMS under the Amendment provided for:

• CMS’s ability to have terminated the Merger Agreement, as amended, exercisable at any time after May 20, 2013, if either (i) the Bancorp had not made an investment in CMS of $1.5 million of CMS Preferred Stock, or (ii) the Bancorp and CMS had not agreed upon the terms of a $2.0 million senior secured lending facility that the Bancorp will have made available to CMS;

• the Bancorp’s payment of $300,000 to CMS as partial reimbursement for merger-related expenses incurred as of March 31, 2013; and

• the Bancorp to pay to CMS a termination fee of $1.0 million in the event the Merger Agreement, as amended, is terminated under certain provisions primarily relating to failure to consummate the Parent Merger due to non-receipt of required government approvals.

• On May 22, 2013, the Bancorp purchased $1.5 million (1,500 shares) of CMS Series A Noncumulative Perpetual Preferred Stock, satisfying the first obligation listed above.

• On April 23, 2013, the Bancorp paid to CMS $300,000, satisfying the second obligation listed above.

Acacia Federal Savings Bank Acquisition

On April 4, 2013, Customers Bancorp, Inc., Acacia Life Insurance Company (“Acacia”) and Ameritas Life Insurance Corp. (together with Acacia, “Sellers”) announced their mutual decision, due to delays in the receipt of regulatory approvals, not to extend the term of that certain Stock Purchase Agreement, dated as of June 20, 2012, as amended by those certain Amendment to Stock Purchase Agreement, dated as of December 18, 2012, Amendment No. 2 to Stock Purchase Agreement dated as of January 30, 2013, and Amendment No. 3 to Stock Purchase Agreement dated as of February 28, 2013, by and among the Company and Sellers (the “Purchase Agreement”). Instead, on April 4, 2013, the parties entered into a Termination and Non-Renewal Agreement to terminate the Purchase Agreement and the transactions contemplated thereby (the “Termination Agreement”). Each party will bear its own costs and expenses in connection with the terminated transaction, without penalties. The parties mutually agreed that the termination was in each company’s best interest. Costs related to the acquisition have been expensed.

New England Commercial Lending Acquisition

On March 28, 2013, Customers Bank completed the purchase of certain commercial loans from Michigan-based Flagstar Bank. Under the terms of the agreement, Customers Bank acquired $182.3 million in commercial loan commitments, of which $155.1 million has been drawn at the date of acquisition. Also, as part of the agreement, Customers Bank assumed the leases for two of Flagstar’s commercial lending offices in New England. The purchase price was 98.7% of loans outstanding.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Changes And Error Corrections [Abstract]

Determination of Appropriate Accounting Treatment for Purchased Loans Policy

Purchased Loans

The Bancorp believes that the varying circumstances under which it purchases loans and the diverse quality of loans purchased should drive the decision as to whether or not loans in a portfolio should be deemed to be purchased-credit-impaired loans (“PCI” loans). Therefore, loan acquisitions are and will be evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans acquired that do not have evidence of credit deterioration at the purchase date are and will be accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs, and loans acquired with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are and will be accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality.

Loans that are purchased that do not have evidence of credit deterioration

Purchased performing loans are recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments, as accounted for under the contractual cash flow method of accounting. The fair value adjustment is accreted as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for the acquired performing loans. A provision for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition.

Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected

For purchases of this type of loan, evidence of deteriorated credit quality may include past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages.

The fair value of loans with evidence of credit deterioration is recorded net of a nonaccretable difference and, if appropriate, an accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference, which is not included in the carrying amount of acquired loans. Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities, and other factors that are reflective of current market conditions. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges, or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows.

PCI loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. On a quarterly basis, the Bank re-estimates the total cash flows (both principal and interest) expected to be collected over the remaining life of each pool. These estimates incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that reflect then-current market conditions. If the timing and/or amounts of expected cash flows on PCI loans were determined not to be reasonably estimable, no interest would be accreted and the loans would be reported as non-accrual loans; however, when the timing and amounts of expected cash flows for PCI loans are reasonably estimable, interest is being accreted and the loans are being reported as performing loans.

Disclosures about Offsetting Assets and Liabilities

In January, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with relevant accounting guidance or subject to an enforceable master netting arrangement or similar agreement. The guidance in this ASU was effective for the first interim or annual period beginning on or after January 1, 2013 (the same effective date for ASU 2011-11) and is to be applied retrospectively. See “NOTE 13 — DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES” for the required disclosures.

Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date

In October, 2012, the FASB issued ASU 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution (a consensus of the FASB Emerging Issues Task Force). This ASU requires an entity to subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. The amendments in this ASU were effective for the first interim periods or annual period beginning on or after December 15, 2012 and are to be applied prospectively. Adoption of this ASU has not had a significant impact on the Bancorp’s results of operations or financial position.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

In February, 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”). The ASU requires entities to disclose additional information about reclassification adjustments, including (1) changes in accumulated other comprehensive income balances by component and (2) significant items reclassified out of AOCI. The new disclosure requirements were effective for fiscal years and interim periods beginning after December 15, 2012 for public companies. See “NOTE 4 — CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT” for the required disclosures.

Financial Instruments

The Fair Value Option

The Bancorp elected the fair value option for warehouse lending transactions documented under a Master Repurchase Agreement originated after July 1, 2012 in order to more accurately represent the short-term nature of the transaction and its inherent credit risk. This adoption was in accordance with the parameters established by Accounting Standards Codification (“ASC”) 825-10-25, Financial Instruments-Overall-Recognition: The Fair Value Option. As a result of this election, warehouse lending transactions are classified as “Loans held for sale” on the balance sheet. The interest income from the warehouse lending transactions is classified in “Interest Income — Loans held for sale on the income statement. An allowance for loan losses is not recorded for the warehouse lending transactions when measured at fair value since the exit price (the repurchase price) for warehouse lending transactions considers the effect of expected credit losses.

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 the mortgage company as short-term bridge financing between the funding of mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not expected to be recognized since at inception of the transaction the underlying loans have already been sold to an approved investor or they have been hedged by the mortgage company. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of 17 days from purchase to sale.

Impaired Loans

Impaired loans:

Impaired loans are those that are accounted for under FASB ASC 450, Contingencies, in which the Bancorp has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

Fair Value Measurement

In accordance with FASB ASC 820, Fair Value Measurements and Disclosures, 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 the Bancorp’s 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.

XML

Disclosures about Fair Value of Financial Instruments - Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Parenthetical) (Detail) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Significant Unobservable Inputs (Level 3) [Member]	Mar. 31, 2013 Significant Unobservable Inputs (Level 3) [Member]	Jun. 30, 2013 Significant Unobservable Inputs (Level 3) [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Loan Held for Sale Exposed to Fraud						$ 5,200,000	$ 5,200,000
Loan Held for Sale Range of possible loss, Minimum					1,500,000	1,500,000	1,500,000
Loan Held For Sale Range of possible loss, Maximum					3,200,000	3,200,000	3,200,000
Loss contingency provided by management	0	0	2,000,000	0		2,000,000	2,000,000
Loan held for sale not exposed to fraud					1,000,000		1,000,000
Loans recovered in cash from alleged perpetrator					1,500,000		1,500,000
Loans transferred to Other assets					2,700,000		2,700,000
Loans reserve transferred to Other assets					$ 2,000,000		$ 2,000,000

XML

Shareholders' Equity - Additional Information (Detail) (USD $)	1 Months Ended	6 Months Ended			1 Months Ended	3 Months Ended
	May 22, 2013	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	May 31, 2012 Common Stock [Member]	Sep. 30, 2012 Common Stock [Member]
Shareholders Equity [Line Items]
Gross proceeds from issuance of common stock	$ 103,500,000	$ 97,690,000	$ 0
Common stock, shares issued	6,179,104	24,709,638		18,507,121
Exercise price	$ 16.75
Net proceeds from issuance of common stock	97,700,000
Issuance of common stock (in shares)						7,111,819
Proceeds, net of offering costs						94,600,000
Cost related to this postponed offering					$ 1,300,000

XML

Regulatory Matters

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Regulatory Matters

NOTE 10 — REGULATORY MATTERS

The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary-actions by regulators that, if undertaken, could have a direct material effect on the Bancorp’s consolidated financial statements. At June 30, 2013, the Bank and the Bancorp met all capital adequacy requirements to which they are subject.

The Bank experienced rapid loan growth during the final days of 2012. During the standard closing process of the Bank’s December 2012 financial statements, management determined on January 30, 2013 that the rapid loan growth resulted in a reduction in the Bank’s capital ratios, causing the Bank to become adequately capitalized as of December 31, 2012. Management immediately transferred sufficient capital from the Bancorp to the Bank, returning the Bank to well-capitalized status. Sufficient cash is maintained at the Bancorp to ensure that the Bank remains well capitalized, and management remains committed to taking all steps necessary to ensure that both the Bancorp and the Bank remain well capitalized going forward. The Bank is well capitalized as of June 30, 2013. Since the Bank was adequately capitalized at December 31, 2012, regulatory approval was required to accept, renew or roll over any brokered deposits. Effective January 1, 2013, the interest rate paid for deposits by institutions that are less than well capitalized is limited to 75 basis points above the national rate for similar products unless the institution can support to the FDIC that prevailing rates in its market area exceed the national average. This has been subsequently lifted based upon the well-capitalized status as of June 30, 2013.

The Bancorp’s and the Bank’s capital amounts and ratios at June 30, 2013 and December 31, 2012 are as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective  Action Provisions
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2013:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	406,314		13.32	%	$	244,036		8.0	%		N/A		N/A
Customers Bank	$	378,972		12.43	%	$	243,915		8.0	%	$	304,894		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	377,617		12.38	%	$	122,018		4.0	%		N/A		N/A
Customers Bank	$	350,275		11.49	%	$	121,958		4.0	%	$	182,937		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	377,617		11.20	%	$	134,895		4.0	%		N/A		N/A
Customers Bank	$	350,275		10.39	%	$	134,845		4.0	%	$	168,556		5.0	%
As of December 31, 2012:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	289,035		11.26	%	$	205,443		8.0	%		N/A		N/A
Customers Bank	$	244,710		9.53	%	$	205,442		8.0	%	$	256,802		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	262,719		10.23	%	$	102,722		4.0	%		N/A		N/A
Customers Bank	$	218,394		8.50	%	$	102,721		4.0	%	$	154,081		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	262,719		9.30	%	$	112,939		4.0	%		N/A		N/A
Customers Bank	$	218,394		7.74	%	$	112,896		4.0	%	$	141,120		5.0	%

XML

Loans Receivable and Allowance for Loan Losses - Summary of Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Unpaid Principle Balance, Total	$ 57,439		$ 55,976
Related Allowance, Total	4,280		4,625
Average Recorded Investment, Total	55,370	53,741
Interest Income Recognized, Total	869	596
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Unpaid Principal Balance	7,970		3,844
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	5,249	5,593
With no related allowance recorded, Interest Income Recognized	118	72
With an allowance recorded, Unpaid Principal Balance	2,177		374
With an allowance recorded, Related Allowance	602		295
With an allowance recorded, Average Recorded Investment	886	806
With an allowance recorded, Interest Income Recognized	63	4
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Unpaid Principal Balance	28,187		26,626
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	24,277	20,329
With no related allowance recorded, Interest Income Recognized	554	303
With an allowance recorded, Unpaid Principal Balance	5,157		8,708
With an allowance recorded, Related Allowance	1,818		2,505
With an allowance recorded, Average Recorded Investment	8,095	8,955
With an allowance recorded, Interest Income Recognized	105	81
Construction [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Unpaid Principal Balance	5,609		6,588
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	7,075	7,788
With no related allowance recorded, Interest Income Recognized	10	16
With an allowance recorded, Unpaid Principal Balance	5,361		5,116
With an allowance recorded, Related Allowance	1,533		1,541
With an allowance recorded, Average Recorded Investment	6,172	7,196
With an allowance recorded, Interest Income Recognized	3	100
Consumer [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Unpaid Principal Balance	77		101
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	100	101
With no related allowance recorded, Interest Income Recognized	0	0
With an allowance recorded, Unpaid Principal Balance	0		100
With an allowance recorded, Related Allowance	0		14
With an allowance recorded, Average Recorded Investment	45	20
With an allowance recorded, Interest Income Recognized	0	1
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
With no related allowance recorded, Unpaid Principal Balance	2,272		3,188
With no related allowance recorded, Related Allowance
With no related allowance recorded, Average Recorded Investment	2,436	2,131
With no related allowance recorded, Interest Income Recognized	14	10
With an allowance recorded, Unpaid Principal Balance	629		1,331
With an allowance recorded, Related Allowance	327		270
With an allowance recorded, Average Recorded Investment	1,035	822
With an allowance recorded, Interest Income Recognized	$ 2	$ 9

XML

Share-Based Compensation - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting period	5 years
Percentage of increase in value options to purchase of voting common stock	50.00%
Term of options	8 years 4 months 24 days
Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase shares of voting common stock	617,910
Representing number of shares issued percentage	10.00%
Chief Operating Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase shares of voting common stock	92,687
Representing number of shares issued percentage	1.50%
Chief Executive Officer and Chief Operating Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of options	10 years
Other Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase shares of voting common stock	50,000

XML

Investment Securities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	6 Months Ended
	Jun. 30, 2012 CorporateBond	Jun. 30, 2013 Security	Dec. 31, 2012 Security
Investments Debt And Equity Securities [Abstract]
Reclassification of held-to-maturity investment portfolio to available for sale		$ 269.0
Available-for-sale securities maturity period		2 years
Number of available for sale investment securities in the less than twelve month category		20	2
Number of available for sale investment securities in the twelve month or more category		7	8
Number of corporate bonds downgraded by Moody's	5
Pledged investment securities		$ 156.8	$ 103.5

XML

Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

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 June 30, 2013 and December 31, 2012 are summarized as follows:

	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	162,739	$	37	$	(5,433	)	$	157,343
Corporate notes		25,000		65		(100	)		24,965
Equities		6		0		0			6
	$	187,745	$	102	$	(5,533	)	$	182,314

(1) Includes private-label securities with an aggregate amortized cost of $561 and an aggregate fair value of $549.

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	102,449	$	1,795	$	(109	)	$	104,135
Corporate notes		25,000		89		(137	)		24,952
Equities		6		0		0			6
	$	127,455	$	1,884	$	(246	)	$	129,093

(1) Includes private-label securities with an aggregate amortized cost of $629 and an aggregate fair value of $612.

Statement of Proceeds from Sale of Available for Sale Investment Securities

The following table shows proceeds from the sale of available-for-sale investment securities and gross gains and gross losses realized on those sales for the three and six months ended June 30, 2013 and 2012:

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
	(dollars in thousands)
Proceeds from sale of available-for-sale securities	$	0	$	257,645	$	0	$	306,610
Gross gains	$	0	$	8,797	$	0	$	9,006
Gross losses		0		0		0		0
Net gains	$	0	$	8,797	$	0	$	9,006

These gains and losses were determined using the specific identification method and were included in non-interest income.

Summary of Investments Available for Sale Debt Securities by Stated Maturity

The following table shows available-for-sale debt securities by stated maturity. Debt securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and are, therefore, classified separately with no specific maturity date:

	June 30, 2013
	Amortized Cost		Fair Value
	(dollars in thousands)
Due in one year or less	$	0	$	0
Due after one year through five years		25,000		24,965
Due after five years through ten years		0		0
Due after ten years		0		0
Mortgage-backed securities		162,739		157,343
Total debt securities	$	187,739	$	182,308

Gross Unrealized Losses and Fair Value, Aggregated by Investment Category

The Bancorp’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities	$	155,124	$	(5,419	)	$	323	$	(14	)	$	155,447	$	(5,433	)
Corporate notes		4,912		(88	)		4,988		(12	)		9,900		(100	)
Total	$	160,036	$	(5,507	)	$	5,311	$	(26	)	$	165,347	$	(5,533	)

	December 31, 2012
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities	$	5,695	$	(87	)	$	429	$	(22	)	$	6,124	$	(109	)
Corporate notes		0		0			9,862		(137	)		9,862		(137	)
Total	$	5,695	$	(87	)	$	10,291	$	(159	)	$	15,986	$	(246	)

XML

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Components of Earnings Per Share

The following are the components and results of the Bancorp’s earnings per share calculation for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(dollars in thousands, except per share data)
Net income allocated to common shareholders	$	8,226	$	6,504	$	15,415	$	9,616
Weighted-average number of common shares - basic		21,266,904		11,347,683		19,876,779		11,347,683
Share-based compensation plans		398,229		188,673		342,019		183,859
Warrants		189,516		102,712		172,734		100,809
Weighted-average number of common shares - diluted		21,854,649		11,639,068		20,391,532		11,632,351
Basic earnings per share	$	0.39	$	0.57	$	0.78	$	0.85
Diluted earnings per share	$	0.38	$	0.56	$	0.76	$	0.83

Anti-dilutive Securities Excluded from Computation of Earning Per Share

The following is a summary of securities that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Weighted average anti-dilutive securities:
Share-based compensation awards		55,561		1,590,162		81,572		1,594,976
Warrants		118,745		567,329		118,745		569,232
Total anti-dilutive securities		174,306		2,157,491		200,317		2,164,208

XML

Loans Receivable and Allowance for Loan Losses - Non-Covered Loans and Covered Loans, by Class (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	$ 7,037	$ 11,090
Greater Than 90 Days	2,435	1,966
Total Past Due	9,472	13,056
Non-Accrual	19,568	22,347
Current	1,663,351	1,110,616
PCI Loans	61,639	69,243
Total Loans	1,754,030	1,215,262
Covered Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	349	268
Greater Than 90 Days	0	0
Total Past Due	349	268
Non-Accrual	7,980	10,504
Current	44,037	53,488
PCI Loans	39,248	43,266
Total Loans	91,614	107,526
Commercial and Industrial [Member] | Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	0	38
Greater Than 90 Days	0	0
Total Past Due	0	38
Non-Accrual	500	288
Current	186,057	72,715
PCI Loans	2,456	2,077
Total Loans	189,013	75,118
Commercial and Industrial [Member] | Covered Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	0	220
Greater Than 90 Days	0	0
Total Past Due	0	220
Non-Accrual	53	100
Current	4,470	8,404
PCI Loans	2,703	2,429
Total Loans	7,226	11,153
Commercial Real Estate [Member] | Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	341	1,437
Greater Than 90 Days	0	0
Total Past Due	341	1,437
Non-Accrual	14,296	17,770
Current	1,199,236	770,508
PCI Loans	41,608	45,773
Total Loans	1,255,481	835,488
Commercial Real Estate [Member] | Covered Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Non-Accrual	3,267	3,712
Current	16,209	20,859
PCI Loans	16,425	20,330
Total Loans	35,901	44,901
Construction [Member] | Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Non-Accrual	2,613	2,423
Current	30,072	25,022
PCI Loans	774	1,452
Total Loans	33,459	28,897
Construction [Member] | Covered Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Non-Accrual	4,055	5,244
Current	5,924	6,472
PCI Loans	15,790	16,076
Total Loans	25,769	27,792
Residential Real Estate [Member] | Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	307	381
Greater Than 90 Days	0	0
Total Past Due	307	381
Non-Accrual	951	1,669
Current	108,674	95,396
PCI Loans	10,850	11,984
Total Loans	120,782	109,430
Residential Real Estate [Member] | Covered Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	297	0
Greater Than 90 Days	0	0
Total Past Due	297	0
Non-Accrual	564	1,358
Current	14,082	14,226
PCI Loans	4,270	4,368
Total Loans	19,213	19,952
Consumer [Member] | Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	1	0
Greater Than 90 Days	0	0
Total Past Due	1	0
Non-Accrual	56	56
Current	1,308	1,486
PCI Loans	443	519
Total Loans	1,808	2,061
Mortgage Warehouse [Member] | Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	0	0
Greater Than 90 Days	0	0
Total Past Due	0	0
Non-Accrual	0	0
Current	7,560	9,565
PCI Loans	0	0
Total Loans	7,560	9,565
Manufactured Housing [Member] | Non-covered Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	6,388	9,234
Greater Than 90 Days	2,435	1,966
Total Past Due	8,823	11,200
Non-Accrual	1,152	141
Current	130,444	135,924
PCI Loans	5,508	7,438
Total Loans	145,927	154,703
Manufactured Housing [Member] | Covered Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
30-89 Days Past Due	52	48
Greater Than 90 Days	0	0
Total Past Due	52	48
Non-Accrual	41	90
Current	3,352	3,527
PCI Loans	60	63
Total Loans	$ 3,505	$ 3,728

XML

Acquisition Activity - Additional Information (Detail) (USD $)		1 Months Ended		3 Months Ended	6 Months Ended		6 Months Ended
	Mar. 28, 2013 Office	Mar. 28, 2013 New England Commercial Lending [Member]	Apr. 23, 2013 CMS Bancorp Acquisition [Member]	Mar. 31, 2013 CMS Bancorp Acquisition [Member]	Jun. 30, 2013 CMS Bancorp Acquisition [Member]	May 22, 2013 CMS Bancorp Acquisition [Member] Series A Noncumulative Perpetual Preferred Stock [Member]	Jun. 30, 2013 CMS Bancorp Acquisition [Member] CMS Common Equity [Member]	Jun. 30, 2013 CMS Bancorp Acquisition [Member] Customers Common Equity [Member]
Capital Unit [Line Items]
Business acquisition, acquiree valuation percent							0.95%
Business acquisition, acquirer valuation percent								1.25%
CMS Merger Agreement termination description					CMS's ability to have terminated the Merger Agreement, as amended, exercisable at any time after May 20, 2013, if either (i) the Bancorp had not made an investment in CMS of $1.5 million of CMS Preferred Stock, or (ii) the Bancorp and CMS had not agreed upon the terms of a $2.0 million senior secured lending facility that the Bancorp will have made available to CMS;
Investment in preferred stock					$ 1,500,000
Senior secured lending facility					2,000,000
Partial reimbursement for merger-related expenses			300,000	300,000
Payment of termination fees					1,000,000
Purchase of Noncumulative Perpetual Preferred Stock						1,500,000
Purchase of Noncumulative Perpetual Preferred shares						1,500
Commercial loan commitments acquired		182,300,000
Acquired commercial loan commitments outstanding		$ 155,100,000
Purchase price as percentage of loans outstanding		98.70%
Number of commercial lending offices	2

XML

Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Aggregate amortized cost of private - label securities	$ 561	$ 629
Aggregate fair value of private -label securities	$ 549	$ 612

XML

Loans Receivable and Allowance for Loan Losses - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013 Commitment	Jun. 30, 2012 Commitment	Jun. 30, 2013 Commitment	Jun. 30, 2012 Commitment
Receivables [Abstract]
Troubled debt restructurings loans	$ 9,200,000	$ 7,700,000	$ 9,200,000	$ 7,700,000
Financing receivable impairment modification			6 months
Commitments to lend additional funds to debtors	0	0	0	0
TDRs with subsequent defaults	0	0	0	0
Specific reserves resulting from addition of TDR modifications	0	0	0	0
Available funds for reimbursement	$ 2,700,000	$ 5,000,000	$ 2,700,000	$ 5,000,000

XML

Disclosures about Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of the Bancorp’s financial instruments were as follows at June 30, 2013 and December 31, 2012.

					Fair Value Measurements at June 30, 2013
	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)
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	205,685	$	205,685	$	205,685	$	0	$	0
Investment securities, available for sale		182,314		182,314		6		182,308		0
Loans held for sale		1,414,943		1,414,943		0		1,414,943		0
Loans receivable, net		1,817,130		1,817,362		0		0		1,817,362
FDIC loss sharing receivable		14,169		14,169		0		14,169		0
Derivatives not designated as hedging instruments		1,919		1,919		0		1,919		0
Restricted stock		33,188		33,188		0		33,188		0
Fraudulent loans receivable (1)		669		669		0		0		669
Accrued interest receivable		7,077		7,077		7,077		0		0
Liabilities:
Deposits	$	2,775,709	$	2,763,089	$	265,842	$	2,497,247	$	0
Federal funds purchased		120,000		120,000		120,000		0		0
Other borrowings		505,000		506,228		0		506,228		0
Subordinated debt		2,000		2,000		0		2,000		0
Derivatives not designated as hedging instruments		1,868		1,868		0		1,868		0
Accrued interest payable		1,534		1,534		1,534		0		0

(1) Included in Other Assets

					Fair Value Measurements at December 31, 2012
	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)
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	186,016	$	186,016	$	186,016	$	0	$	0
Investment securities, available for sale		129,093		129,093		6		129,087		0
Loans held for sale		1,439,889		1,439,889		0		1,439,889		0
Loans receivable, net		1,298,630		1,307,049		0		0		1,307,049
FDIC loss sharing receivable		12,343		12,343		0		12,343		0
Restricted stock		30,163		30,163		0		30,163		0
Accrued interest receivable		5,790		5,790		5,790		0		0
Liabilities:
Deposits	$	2,440,818	$	2,674,765	$	219,687	$	2,455,078	$	0
Federal funds purchased		5,000		5,000		5,000		0		0
Other borrowings		471,000		471,432		0		471,432		0
Subordinated debt		2,000		2,000		0		2,000		0
Accrued interest payable		1,530		1,530		1,530		0		0

Summary of Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis

For financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	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
	(dollars in thousands)
Recurring Fair Value Measurements
Assets
Available-for-sale securities:
Mortgage-backed securities	$	0	$	157,343	$	0	$	157,343
Corporate notes		0		24,965		0		24,965
Equities		6		0		0		6
Derivatives not designated as hedging instruments (1)		0		1,919		0		1,919
Mortgage warehouse loans held for sale		0		1,414,943		0		1,414,943
Total assets - recurring fair value measurements	$	6	$	1,599,170	$	0	$	1,599,176
Liabilities
Derivatives not designated as hedging instruments (2)	$	0	$	1,868	$	0	$	1,868
Nonrecurring Fair Value Measurements
Assets
Impaired loans, net of specific reserves of $4,280	$	0	$	0	$	9,044	$	9,044
Other real estate owned		0		0		5,424		5,424
Total assets - nonrecurring fair value measurements	$	0	$	0	$	14,468	$	14,468

(1) Included in Other Assets

(2) Included in Other Liabilities

	December 31, 2012
	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
	(dollars in thousands)
Recurring Fair Value Measurements
Assets
Available-for-sale securities:
Mortgage-backed securities	$	0	$	104,135	$	0	$	104,135
Corporate notes		0		24,952		0		24,952
Equities		6		0		0		6
Mortgage warehouse loans held for sale		0		1,248,935		0		1,248,935
Total assets - recurring fair value measurements	$	6	$	1,378,022	$	0	$	1,378,028
Nonrecurring Fair Value Measurements
Assets
Impaired loans, net of specific reserves of $4,625	$	0	$	0	$	11,004	$	11,004
Other real estate owned		0		0		5,737		5,737
Total assets - nonrecurring fair value measurements	$	0	$	0	$	16,741	$	16,741

Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis for the three months and six months ended June 30, 2013 and 2012 are summarized as follows:

	Loans Held for Sale (1)
	(dollars in thousands)
Balance at April 1, 2013	$	3,173
Recoveries		(1,463	)
Sales		(1,013	)
Transfer from loans held for sale to other assets (1)		(697	)
Balance at June 30, 2013	$	0

	Mortgage- backed Securities			Corporate Notes			Total
	(dollars in thousands)
Balance at April 1, 2012	$	2,790		$	19,546		$	22,336
Total losses included in other comprehensive income (before taxes)		0			(343	)		(343	)
Amortization included in interest income		(158	)		0			(158	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

	Loans Held for Sale (1)
	(dollars in thousands)
Balance at January 1, 2013	$	0
Transfer from Level 2 to Level 3 (1)		3,173
Recoveries		(1,463	)
Sales		(1,013	)
Transfer from loans held for sale to other assets (1)		(697	)
Balance at June 30, 2013	$	0

	Mortgage- backed Securities			Corporate Notes			Total
	(dollars in thousands)
Balance at January 1, 2012	$	2,894		$	19,217		$	22,111
Total losses included in other comprehensive income (before taxes)		0			(14	)		(14	)
Amortization included in interest income		(262	)		0			(262	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

(1) The Bancorp’s policy is to recognize transfers between levels when events or circumstances warrant transfers. During the first quarter of 2013, a suspected fraud was discovered in the Bank’s loans held-for-sale portfolio. Total loans involved in this fraud initially appeared to be $5.2 million, and management believed the range of possible loss to have been between $1.5 million and $3.2 million. Accordingly, management provided a loss contingency of $2.0 million at March 31, 2013. Due to the uncertainty surrounding the amount of loss, management transferred these loans and the related loss contingency from Level 2 to Level 3. During the second quarter of 2013, the Bank determined that an aggregate of $1.0 million of the loans were not involved in the fraud, and these loans were subsequently sold. In addition, the Bank recovered $1.5 million in cash from the alleged perpetrator. The remaining aggregate of $2.7 million of loans and the related $2.0 million reserve were transferred to Other assets. Since it was resolved that the loans no longer meet the definition of a loan, combined with the fact that the Company is pursuing restitution through the involved parties, the Company has determined this to be a receivable and, accordingly, transferred the asset to Other assets.

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 June 30, 2013 on a recurring and nonrecurring basis for which the Bancorp utilized Level 3 inputs to measure fair value. The valuation techniques, unobservable inputs, and ranges (weighted average) are the same as those disclosed at December 31, 2012.

	Quantitative Information about Level 3 Fair Value  Measurements
June 30, 2013	Fair Value Estimate		Valuation Technique			Unobservable Input			Range (Weighted Average) (3)
	(dollars in thousands)
Impaired loans	$	9,044		Collateral appraisal	(1)		Liquidation expenses	(2)		-3% to -8% (-5.5%)
Other real estate owned	$	5,424		Collateral appraisal	(1)		Liquidation expenses	(2)		-3% to -8% (-5.5%)

(1) Obtained from independent third-parties approved appraisers. Appraisals are current and in compliance with credit policy. The Bancorp does not discount appraisals.

(2) Fair value is adjusted for costs to sell.

(3) Presented as a percentage of the value determined by appraisal.

XML

Disclosures about Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	$ 1,599,176	$ 1,378,028
Assets
Assets, Fair Value Disclosure, Nonrecurring	14,468	16,741
Derivatives Not Designated as Hedging Instruments [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	1,919
Liabilities
Liabilities, Fair Value Disclosure, Recurring	1,868
Mortgage Warehouse Loans Held for Sale [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	1,414,943	1,248,935
Impaired Loans [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	9,044	11,004
Other Real Estate Owned [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	5,424	5,737
Available-for-sale Securities [Member] | Mortgage-backed Securities [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	157,343	104,135
Available-for-sale Securities [Member] | Corporate Notes [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	24,965	24,952
Available-for-sale Securities [Member] | Equity [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	6	6
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	6	6
Assets
Assets, Fair Value Disclosure, Nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0
Liabilities
Liabilities, Fair Value Disclosure, Recurring	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage Warehouse Loans Held for Sale [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Impaired Loans [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Real Estate Owned [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Available-for-sale Securities [Member] | Mortgage-backed Securities [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Available-for-sale Securities [Member] | Corporate Notes [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Available-for-sale Securities [Member] | Equity [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	6	6
Significant Other Observable Inputs (Level 2) [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	1,599,170	1,378,022
Assets
Assets, Fair Value Disclosure, Nonrecurring	0	0
Significant Other Observable Inputs (Level 2) [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	1,919
Liabilities
Liabilities, Fair Value Disclosure, Recurring	1,868
Significant Other Observable Inputs (Level 2) [Member] | Mortgage Warehouse Loans Held for Sale [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	1,414,943	1,248,935
Significant Other Observable Inputs (Level 2) [Member] | Impaired Loans [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	0	0
Significant Other Observable Inputs (Level 2) [Member] | Other Real Estate Owned [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	0	0
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale Securities [Member] | Mortgage-backed Securities [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	157,343	104,135
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale Securities [Member] | Corporate Notes [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	24,965	24,952
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale Securities [Member] | Equity [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Assets
Assets, Fair Value Disclosure, Nonrecurring	14,468	16,741
Significant Unobservable Inputs (Level 3) [Member] | Derivatives Not Designated as Hedging Instruments [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0
Liabilities
Liabilities, Fair Value Disclosure, Recurring	0
Significant Unobservable Inputs (Level 3) [Member] | Mortgage Warehouse Loans Held for Sale [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	9,044	11,004
Significant Unobservable Inputs (Level 3) [Member] | Other Real Estate Owned [Member]
Assets
Assets, Fair Value Disclosure, Nonrecurring	5,424	5,737
Significant Unobservable Inputs (Level 3) [Member] | Available-for-sale Securities [Member] | Mortgage-backed Securities [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Available-for-sale Securities [Member] | Corporate Notes [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	0	0
Significant Unobservable Inputs (Level 3) [Member] | Available-for-sale Securities [Member] | Equity [Member]
Available-for-sale securities:
Assets, Fair Value Disclosure, Recurring	$ 0	$ 0

XML

Disclosures about Offsetting Assets and Liabilities - Summary of Offsetting Financial Derivative Assets and Liabilities (Detail) (Interest rate derivatives with institutional counterparties [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Interest rate derivatives with institutional counterparties [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gross amount of recognized assets	$ 208
Gross amounts offset in the consolidated balance sheet	0
Net amounts of assets presented in the consolidated balance sheet	208
Gross amounts not offset in the consolidated balance sheet, Financial Instruments	208
Gross amounts not offset in the consolidated balance sheet, Cash collateral received	0
Net amount	0
Gross amount of recognized liabilities	1,720
Gross amounts offset in the consolidated balance sheet	0
Net amounts of liabilities presented in the consolidated balance sheet	1,720
Gross amounts not offset in the consolidated balance sheet, Financial Instruments	208
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged	1,512
Net amount	$ 0

XML

Disclosures about Fair Value of Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011
Fair Value Of Assets And Liabilities Measured On Recurring And Non Recurring Basis [Line Items]
Cash and cash equivalents, Carrying Amount	$ 205,685		$ 186,016	$ 122,052		$ 73,570
Investment securities, available for sale, Carrying Amount	182,314		129,093
Loans held for sale, Carrying Amount	1,414,943		1,439,889
Loans receivable, net, Carrying Amount	1,817,130		1,298,630
FDIC loss sharing receivable, Carrying Amount	14,169	12,043	12,343	12,376	14,149	13,077
Derivatives not designated as hedging instruments, Assets Carrying Amount	1,919
Restricted stock, Carrying Amount	33,188		30,163
Fraudulent loans receivable, Carrying Amount	669
Accrued interest receivable, Carrying Amount	7,077		5,790
Deposits, Carrying Amount	2,775,709		2,440,818
Federal funds purchased, Carrying Amount	120,000		5,000
Other borrowings, Carrying Amount	505,000		471,000
Subordinated debt, Carrying Amount	2,000		2,000
Derivatives not designated as hedging instruments, Liabilities, Carrying Amount	1,868
Accrued interest payable, Carrying Amount	1,534		1,530
Cash and cash equivalents, Fair Value	205,685		186,016
Investment securities, available for sale, Fair Value	182,314		129,093
Loans held for sale, Fair Value	1,414,943		1,439,889
Loans receivable, net, Fair Value	1,817,362		1,307,049
FDIC loss sharing receivable, Fair Value	14,169		12,343
Derivatives not designated as hedging instruments, Assets Fair Value	1,919
Restricted stock, Fair Value	33,188		30,163
Fraudulent loans receivable, Fair Value	669
Accrued interest receivable, Fair Value	7,077		5,790
Deposits, Fair Value	2,763,089		2,674,765
Federal funds purchased, Fair Value	120,000		5,000
Other borrowings, Fair Value	506,228		471,432
Subordinated debt, Fair Value	2,000		2,000
Derivatives not designated as hedging instruments, Liabilities Fair Value	1,868
Accrued interest payable, Fair Value	1,534		1,530
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Of Assets And Liabilities Measured On Recurring And Non Recurring Basis [Line Items]
Cash and cash equivalents, Fair Value	205,685		186,016
Investment securities, available for sale, Fair Value	6		6
Loans held for sale, Fair Value	0		0
Loans receivable, net, Fair Value	0		0
FDIC loss sharing receivable, Fair Value	0		0
Derivatives not designated as hedging instruments, Assets Fair Value	0
Restricted stock, Fair Value	0		0
Fraudulent loans receivable, Fair Value	0
Accrued interest receivable, Fair Value	7,077		5,790
Deposits, Fair Value	265,842		219,687
Federal funds purchased, Fair Value	120,000		5,000
Other borrowings, Fair Value	0		0
Subordinated debt, Fair Value	0		0
Derivatives not designated as hedging instruments, Liabilities Fair Value	0
Accrued interest payable, Fair Value	1,534		1,530
Significant Other Observable Inputs (Level 2) [Member]
Fair Value Of Assets And Liabilities Measured On Recurring And Non Recurring Basis [Line Items]
Cash and cash equivalents, Fair Value	0		0
Investment securities, available for sale, Fair Value	182,308		129,087
Loans held for sale, Fair Value	1,414,943		1,439,889
Loans receivable, net, Fair Value	0		0
FDIC loss sharing receivable, Fair Value	14,169		12,343
Derivatives not designated as hedging instruments, Assets Fair Value	1,919
Restricted stock, Fair Value	33,188		30,163
Fraudulent loans receivable, Fair Value	0
Accrued interest receivable, Fair Value	0		0
Deposits, Fair Value	2,497,247		2,455,078
Federal funds purchased, Fair Value	0		0
Other borrowings, Fair Value	506,228		471,432
Subordinated debt, Fair Value	2,000		2,000
Derivatives not designated as hedging instruments, Liabilities Fair Value	1,868
Accrued interest payable, Fair Value	0		0
Significant Unobservable Inputs (Level 3) [Member]
Fair Value Of Assets And Liabilities Measured On Recurring And Non Recurring Basis [Line Items]
Cash and cash equivalents, Fair Value	0		0
Investment securities, available for sale, Fair Value	0		0
Loans held for sale, Fair Value	0		0
Loans receivable, net, Fair Value	1,817,362		1,307,049
FDIC loss sharing receivable, Fair Value	0		0
Derivatives not designated as hedging instruments, Assets Fair Value	0
Restricted stock, Fair Value	0		0
Fraudulent loans receivable, Fair Value	669
Accrued interest receivable, Fair Value	0		0
Deposits, Fair Value	0		0
Federal funds purchased, Fair Value	0		0
Other borrowings, Fair Value	0		0
Subordinated debt, Fair Value	0		0
Derivatives not designated as hedging instruments, Liabilities Fair Value	0
Accrued interest payable, Fair Value	$ 0		$ 0

XML

Investment Securities - Gross Unrealized Losses and Fair Value, Aggregated by Investment Category (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	$ 160,036	$ 5,695
Less Than 12 Months, Unrealized Losses	(5,507)	(87)
12 Months or More, Fair Value	5,311	10,291
12 Months or More, Unrealized Losses	(26)	(159)
Fair Value, Total	165,347	15,986
Gross Unrealized Losses	(5,533)	(246)
Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	155,124	5,695
Less Than 12 Months, Unrealized Losses	(5,419)	(87)
12 Months or More, Fair Value	323	429
12 Months or More, Unrealized Losses	(14)	(22)
Fair Value, Total	155,447	6,124
Gross Unrealized Losses	(5,433)	(109)
Corporate Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Less Than 12 Months, Fair Value	4,912	0
Less Than 12 Months, Unrealized Losses	(88)	0
12 Months or More, Fair Value	4,988	9,862
12 Months or More, Unrealized Losses	(12)	(137)
Fair Value, Total	9,900	9,862
Gross Unrealized Losses	$ (100)	$ (137)

XML

Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013 Swap
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Number of interest rate swaps	14
Aggregate notional amount	$ 88.2
Termination value of derivatives in a net liability position	1.7
Minimum collateral with counterparties	$ 2.5

XML

Changes in Accumulated Other Comprehensive Income by Component (Tables)

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income

	Unrealized Gains and Losses on Available-for-Sale Securities
	(dollars in thousands)
Beginning balance - April 1, 2013	$	354
Other comprehensive loss before reclassifications		(3,884	)
Amounts reclassified from accumulated other comprehensive income		0
Net current-period other comprehensive loss		(3,884	)
Ending balance - June 30, 2013	$	(3,530	)
	Unrealized Gains and Losses on Available-for-Sale Securities
	(dollars in thousands)
Beginning balance - January 1, 2013	$	1,064
Other comprehensive loss before reclassifications		(4,594	)
Amounts reclassified from accumulated other comprehensive income		0
Net current-period other comprehensive loss		(4,594	)
Ending balance - June 30, 2013	$	(3,530	)

(a) All amounts are net of tax. Amounts in parentheses indicate debits.

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) In Thousands, except Share data	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]
Beginning balance at Dec. 31, 2011	$ 147,748	$ 11,395	$ 122,602	$ 14,496	$ (245)	$ (500)
Beginning balance, shares at Dec. 31, 2011		11,347,683
Comprehensive income	9,702			9,616	86
Share-based-compensation expense	1,266		1,266
Ending balance at Jun. 30, 2012	158,716	11,395	123,868	24,112	(159)	(500)
Ending balance, shares at Jun. 30, 2012		11,347,683
Beginning balance at Dec. 31, 2012	269,475	18,507	212,090	38,314	1,064	(500)
Beginning balance, shares at Dec. 31, 2012	18,459,502	18,459,502
Comprehensive income	10,821			15,415	(4,594)
Share-based-compensation expense	1,535		1,535
Public offering of common stock, net of costs of $5,811	97,690	6,179	91,511
Public offering of common stock, shares		6,179,104
Issuance of common stock under share-based-compensation arrangements	252	24	228
Issuance of common stock under share-based-compensation arrangements, shares		23,413
Ending balance at Jun. 30, 2013	$ 379,773	$ 24,710	$ 305,364	$ 53,729	$ (3,530)	$ (500)
Ending balance, shares at Jun. 30, 2013	24,662,019	24,662,019

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash Flows from Operating Activities
Net income	$ 15,415	$ 9,616
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for loan losses	5,720	4,538
Loss contingency	2,000	0
Provision for depreciation and amortization	1,279	687
Stock-based compensation	1,535	1,266
Deferred taxes	1	188
Net amortization of investment securities premiums and discounts	228	193
Gain on sale of investment securities	0	(9,006)
Gain on sale of loans	(408)	(339)
Origination/purchase of loans held for sale	(12,445,164)	(1,359,676)
Proceeds from the sale of loans held for sale	12,467,413	1,251,140
Net increase in FDIC loss sharing receivable	(4,815)	(741)
Amortization (accretion) of fair value discounts	(273)	46
Net loss on sales of other real estate owned	180	601
Impairment charges on other real estate owned	13	0
Change in investment in bank-owned life insurance	(1,043)	(633)
(Increase) decrease in accrued interest receivable and other assets	(3,492)	471
Decrease in accrued interest payable and other liabilities	(1,913)	(3,185)
Net Cash Provided by (Used In) Operating Activities	36,676	(104,834)
Cash Flows from Investing Activities
Proceeds from maturities, calls and principal repayments of investment securities available for sale	9,252	23,543
Proceeds from sales of investment securities available for sale	0	306,610
Purchases of investment securities available for sale	(69,770)	(108,249)
Proceeds from maturities and principal repayments of investment securities held to maturity	0	50,968
Net increase in loans	(377,601)	(312,624)
Purchase of loan portfolio	(155,306)	0
Proceeds from sales of SBA loans	3,900	3,689
Purchases of bank-owned life insurance	(10,465)	(10,000)
Net (purchases of) proceeds from restricted stock	(3,025)	1,693
Reimbursements from the FDIC on loss sharing agreements	3,128	1,442
Purchases of bank premises and equipment	(1,344)	(1,558)
Proceeds from sales of other real estate owned	2,599	4,022
Net Cash Used In Investing Activities	(598,632)	(40,464)
Cash Flows from Financing Activities
Net increase in deposits	334,935	346,780
Net increase (decrease) in short-term borrowed funds	99,000	(153,000)
Proceeds from FHLB borrowings	50,000	0
Net proceeds from stock offering	97,690	0
Net Cash Provided by Financing Activities	581,625	193,780
Net Increase in Cash and Cash Equivalents	19,669	48,482
Cash and Cash Equivalents - Beginning	186,016	73,570
Cash and Cash Equivalents - Ending	205,685	122,052
Supplementary Cash Flows Information
Interest paid	10,955	10,916
Income taxes paid	5,574	4,855
Non-cash items:
Transfer of loans to other real estate owned	5,424	4,941
Transfer of held to maturity investments to available for sale	$ 0	$ 268,671

XML

Significant Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Changes And Error Corrections [Abstract]

Significant Accounting Policies

NOTE 3 — SIGNIFICANT ACCOUNTING POLICIES

Purchased Loans

The Bancorp believes that the varying circumstances under which it purchases loans and the diverse quality of loans purchased should drive the decision as to whether or not loans in a portfolio should be deemed to be purchased-credit-impaired loans (“PCI” loans). Therefore, loan acquisitions are and will be evaluated on a case-by-case basis to determine the appropriate accounting treatment. Loans acquired that do not have evidence of credit deterioration at the purchase date are and will be accounted for in accordance with ASC 310-20, Nonrefundable Fees and Other Costs, and loans acquired with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are and will be accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality.

Loans that are purchased that do not have evidence of credit deterioration

Purchased performing loans are recorded at fair value and include credit and interest rate marks associated with acquisition accounting adjustments, as accounted for under the contractual cash flow method of accounting. The fair value adjustment is accreted as an adjustment to yield over the estimated contractual lives of the loans. There is no allowance for loan losses established at the acquisition date for the acquired performing loans. A provision for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition.

Loans that are purchased that have evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected

For purchases of this type of loan, evidence of deteriorated credit quality may include past-due and non-accrual status, borrower credit scores and recent loan-to-value percentages.

The fair value of loans with evidence of credit deterioration is recorded net of a nonaccretable difference and, if appropriate, an accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is the nonaccretable difference, which is not included in the carrying amount of acquired loans. Subsequent to acquisition, estimates of cash flows expected to be collected are updated each reporting period based on updated assumptions regarding default rates, loss severities, and other factors that are reflective of current market conditions. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges, or a reclassification of the difference from nonaccretable to accretable with a positive impact on accretion of interest income in future periods. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of those cash flows.

PCI loans acquired in the same fiscal quarter may be aggregated into one or more pools, provided that the loans have common risk characteristics. A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. On a quarterly basis, the Bank re-estimates the total cash flows (both principal and interest) expected to be collected over the remaining life of each pool. These estimates incorporate assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that reflect then-current market conditions. If the timing and/or amounts of expected cash flows on PCI loans were determined not to be reasonably estimable, no interest would be accreted and the loans would be reported as non-accrual loans; however, when the timing and amounts of expected cash flows for PCI loans are reasonably estimable, interest is being accreted and the loans are being reported as performing loans.

Recently Issued Accounting Standards

In January, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify that the scope of ASU 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with relevant accounting guidance or subject to an enforceable master netting arrangement or similar agreement. The guidance in this ASU was effective for the first interim or annual period beginning on or after January 1, 2013 (the same effective date for ASU 2011-11) and is to be applied retrospectively. See “NOTE 13 — DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES” for the required disclosures.

In October, 2012, the FASB issued ASU 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution (a consensus of the FASB Emerging Issues Task Force). This ASU requires an entity to subsequently account for the change in the measurement of the indemnification asset on the same basis as the change in the assets subject to indemnification. The amendments in this ASU were effective for the first interim periods or annual period beginning on or after December 15, 2012 and are to be applied prospectively. Adoption of this ASU has not had a significant impact on the Bancorp’s results of operations or financial position.

In February, 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which adds new disclosure requirements for items reclassified out of accumulated other comprehensive income (“AOCI”). The ASU requires entities to disclose additional information about reclassification adjustments, including (1) changes in accumulated other comprehensive income balances by component and (2) significant items reclassified out of AOCI. The new disclosure requirements were effective for fiscal years and interim periods beginning after December 15, 2012 for public companies. See “NOTE 4 — CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT” for the required disclosures.

XML

Loss Contingency - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Significant Unobservable Inputs (Level 3) [Member]	Mar. 31, 2013 Significant Unobservable Inputs (Level 3) [Member]	Jun. 30, 2013 Significant Unobservable Inputs (Level 3) [Member]
Loss Contingencies [Line Items]
Loan Held for Sale Exposed to Fraud						$ 5,200,000	$ 5,200,000
Loan Held for Sale Range of possible loss, Minimum					1,500,000	1,500,000	1,500,000
Loan Held For Sale Range of possible loss, Maximum					3,200,000	3,200,000	3,200,000
Loss contingency provided by management	0	0	2,000,000	0		2,000,000	2,000,000
Loan held for sale not exposed to fraud					1,000,000		1,000,000
Loans recovered in cash from alleged perpetrator					1,500,000		1,500,000
Loans transferred to Other assets					2,700,000		2,700,000
Loans contingency transferred to Other assets					$ 2,000,000		$ 2,000,000

XML

Description of the Business and Basis of Presentation

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Description of the Business and Basis of Presentation

NOTE 1 — DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

Customers Bancorp, Inc. (the “Bancorp” or “Customers Bancorp”) is a Pennsylvania corporation formed on April 7, 2010 to facilitate the reorganization of Customers Bank (the “Bank” or “Customers Bank”) into a bank holding company structure. The reorganization was completed on September 17, 2011.

The unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Bancorp believes that the disclosures made are adequate to make the information not misleading. The Bancorp’s unaudited consolidated interim financial statements reflect all adjustments that are, in the opinion of management, necessary for fair statement of the results of interim periods presented. Certain amounts reported in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation. These reclassifications did not significantly impact the Bancorp’s financial position or results of operations.

The accounting policies of Customers Bancorp, Inc. and Subsidiaries, as applied in the consolidated interim financial statements presented herein, are substantially the same as those followed on an annual basis as disclosed on pages 85 through 93 of Customers’ Annual Report on Form 10-K for the fiscal year ended December 31, 2012. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the latest Form 10-K.

Operating results for the three and six-month periods ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ended December 31, 2013.

The Bancorp evaluated its June 30, 2013 consolidated financial statements for subsequent events through the date the financial statements were issued. The Bancorp is not aware of any additional subsequent events which would require recognition or disclosure in the financial statements.

XML

Investment Securities - Statement of Proceeds from Sale of Available for Sale Investment Securities (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Investments Debt And Equity Securities [Abstract]
Proceeds from sale of available-for-sale securities	$ 0	$ 257,645	$ 0	$ 306,610
Gross gains	0	8,797	0	9,006
Gross losses	0	0	0	0
Net gains	$ 0	$ 8,797	$ 0	$ 9,006

XML

Loans Receivable and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Composition of Net Loans Receivable

The composition of net loans receivable was as follows:

	June 30, 2013			December 31, 2012
	(dollars in thousands)
Construction	$	25,769		$	27,792
Commercial real estate		35,901			44,901
Commercial and industrial		7,226			11,153
Residential real estate		19,213			19,952
Manufactured housing		3,505			3,728
Total loans receivable covered under FDIC loss sharing agreements (1)		91,614			107,526
Construction		33,459			28,897
Commercial real estate		1,255,481			835,488
Commercial and industrial		189,013			75,118
Mortgage warehouse		7,560			9,565
Manufactured housing		145,927			154,703
Residential real estate		120,782			109,430
Consumer		1,808			2,061
Total loans receivable not covered under FDIC loss sharing agreements		1,754,030			1,215,262
Total loans receivable		1,845,644			1,322,788
Deferred (fees) costs, net		(372	)		1,679
Allowance for loan losses		(28,142	)		(25,837	)
Loans receivable, net	$	1,817,130		$	1,298,630

(1) Loans that were acquired in two FDIC-assisted transactions and are covered under loss sharing agreements with the FDIC are referred to as “covered” loans throughout these financial statements.

Non-Covered Loans and Covered Loans, by Class

Non-Covered Nonaccrual Loans and Loans Past Due

The following tables summarize non-covered loans, by class:

	June 30, 2013
	30-89 Days Past Due (1)		Greater Than 90 Days (1)		Total Past Due (1)		Non- Accrual		Current (2)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	0	$	0	$	0	$	500	$	186,057	$	2,456	$	189,013
Commercial real estate		341		0		341		14,296		1,199,236		41,608		1,255,481
Construction		0		0		0		2,613		30,072		774		33,459
Residential real estate		307		0		307		951		108,674		10,850		120,782
Consumer		1		0		1		56		1,308		443		1,808
Mortgage warehouse		0		0		0		0		7,560		0		7,560
Manufactured housing (3)		6,388		2,435		8,823		1,152		130,444		5,508		145,927
Total	$	7,037	$	2,435	$	9,472	$	19,568	$	1,663,351	$	61,639	$	1,754,030
	December 31, 2012
	30-89 Days Past Due (1)		Greater Than 90 Days (1)		Total Past Due (1)		Non- Accrual		Current (2)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	38	$	0	$	38	$	288	$	72,715	$	2,077	$	75,118
Commercial real estate		1,437		0		1,437		17,770		770,508		45,773		835,488
Construction		0		0		0		2,423		25,022		1,452		28,897
Residential real estate		381		0		381		1,669		95,396		11,984		109,430
Consumer		0		0		0		56		1,486		519		2,061
Mortgage warehouse		0		0		0		0		9,565		0		9,565
Manufactured housing (3)		9,234		1,966		11,200		141		135,924		7,438		154,703
Total	$	11,090	$	1,966	$	13,056	$	22,347	$	1,110,616	$	69,243	$	1,215,262

(1) Loan balances do not include non-accrual loans.

(2) Loans where payments are due within 29 days of the scheduled payment date.

(3) Purchased manufactured housing loans, purchased in 2010, are subject to cash reserves held at the Bank that are used to fund the past-due payments when the loan becomes 90-days or more delinquent.

(4) Loans exclude deferred costs and fees.

(5) PCI loans that were aggregated into pools are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because we recognize interest income on each pool of loans, they are all considered to be performing. PCI loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and being reported as performing loans.

Covered Nonaccrual Loans and Loans Past Due

The following tables summarize covered loans, by class:

	June 30, 2013
	30-89 Days Past Due (1)		Greater Than 90 Days Past Due (1)		Total Past Due (1)		Non- Accrual		Current (2)(3)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	0	$	0	$	0	$	53	$	4,470	$	2,703	$	7,226
Commercial real estate		0		0		0		3,267		16,209		16,425		35,901
Construction		0		0		0		4,055		5,924		15,790		25,769
Residential real estate		297		0		297		564		14,082		4,270		19,213
Manufactured housing		52		0		52		41		3,352		60		3,505
Total	$	349	$	0	$	349	$	7,980	$	44,037	$	39,248	$	91,614
	December 31, 2012
	30-89 Days Past Due (1)		Greater Than 90 Days Past Due (1)		Total Past Due (1)		Non- Accrual		Current (2)(3)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	220	$	0	$	220	$	100	$	8,404	$	2,429	$	11,153
Commercial real estate		0		0		0		3,712		20,859		20,330		44,901
Construction		0		0		0		5,244		6,472		16,076		27,792
Residential real estate		0		0		0		1,358		14,226		4,368		19,952
Manufactured housing		48		0		48		90		3,527		63		3,728
Total	$	268	$	0	$	268	$	10,504	$	53,488	$	43,266	$	107,526

(1) Loans balances do not include nonaccrual loans.

(2) Loans receivable that were not identified upon acquisition as a loan with credit deterioration.

(3) Loans where payments are due within 29 days of the scheduled payment date.

(4) Loans exclude deferred costs and fees.

(5) PCI loans that were aggregated into pools are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because we recognize interest income on each pool of loans, they are all considered to be performing. PCI loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and being reported as performing loans.

Summary of Impaired Loans

The following table presents a summary of impaired loans:

	June 30, 2013				For the Six Months Ended June 30, 2013
	Unpaid Principal Balance (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	7,970			$	5,249	$	118
Commercial real estate		28,187				24,277		554
Construction		5,609				7,075		10
Consumer		77				100		0
Residential real estate		2,272				2,436		14
With an allowance recorded:
Commercial and industrial		2,177	$	602		886		63
Commercial real estate		5,157		1,818		8,095		105
Construction		5,361		1,533		6,172		3
Consumer		0		0		45		0
Residential real estate		629		327		1,035		2
Total	$	57,439	$	4,280	$	55,370	$	869

(1) Also represents the recorded investment.

	December 31, 2012				For the Six Months Ended June 30, 2012
	Unpaid Principal Balance (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	3,844			$	5,593	$	72
Commercial real estate		26,626				20,329		303
Construction		6,588				7,788		16
Consumer		101				101		0
Residential real estate		3,188				2,131		10
With an allowance recorded:
Commercial and industrial		374	$	295		806		4
Commercial real estate		8,708		2,505		8,955		81
Construction		5,116		1,541		7,196		100
Consumer		100		14		20		1
Residential real estate		1,331		270		822		9
Total	$	55,976	$	4,625	$	53,741	$	596

(1) Also represents the recorded investment.

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 six months ended June 30, 2013 and 2012. There were no modifications that involved forgiveness of debt.

	TDRs in Compliance with Their Modified Terms and Accruing Interest		TDRs in Compliance with Their Modified Terms and Not Accruing Interest		Total
	(dollars in thousands)
Three months ended June 30, 2013
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		0		0		0
Interest-rate reductions		93		910		1,003
Total	$	93	$	910	$	1,003
Six months ended June 30, 2013
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		0		0		0
Interest-rate reductions		93		1,167		1,260
Total	$	93	$	1,167	$	1,260
Three months ended June 30, 2012
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		47		0		47
Interest-rate reductions		241		0		241
Total	$	288	$	0	$	288
Six months ended June 30, 2012
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		47		0		47
Interest-rate reductions		268		0		268
Total	$	315	$	0	$	315

Summary of Loans and Leases Modified in Troubled Debt Restructurings, and Recorded Investments and Unpaid Principal Balances

The following table provides, by class, the number of loans modified in troubled debt restructurings and the recorded investments and unpaid principal balances during the three and six months ended June 30, 2013 and 2012.

	TDRs in Compliance with Their Modified Terms and Accruing Interest				TDRs in Compliance with Their Modified Terms and Not Accruing Interest
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(dollars in thousands)
Three months ended June 30, 2013
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		2		60		7		910
Residential real estate		0		0		0		0
Consumer		1		33		0		0
Total		3	$	93		7	$	910
Six months ended June 30, 2013
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		2		60		10		1,167
Residential real estate		0		0		0		0
Consumer		1		33		0		0
Total		3	$	93		10	$	1,167
Three months ended June 30, 2012
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		5		288		0		0
Residential real estate		0		0		0		0
Consumer		0		0		0		0
Total		5	$	288		0	$	0
Six months ended June 30, 2012
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		6		315		0		0
Residential real estate		0		0		0		0
Consumer		0		0		0		0
Total		6	$	315		0	$	0

Credit Quality Tables for Covered and Non-Covered Loan Portfolio

The following presents the credit quality tables as of June 30, 2013 and December 31, 2012 for the non-covered loan portfolio.

	June 30, 2013
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	178,927	$	1,217,390	$	30,364	$	117,946
Special Mention		9,526		19,638		389		1,070
Substandard		560		18,453		2,706		1,766
Doubtful		0		0		0		0
Total	$	189,013	$	1,255,481	$	33,459	$	120,782

	Consumer		Mortgage Warehouse		Manufactured Housing
	(dollars in thousands)
Performing	$	1,751	$	7,560	$	145,917
Nonperforming (1)		57		0		10
Total	$	1,808	$	7,560	$	145,927

(1) Includes loans that are on nonaccrual status at June 30, 2013.

	December 31, 2012
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	70,955	$	794,187	$	26,020	$	105,490
Special Mention		3,836		18,737		454		1,017
Substandard		327		21,801		1,971		2,919
Doubtful		0		763		452		4
Total	$	75,118	$	835,488	$	28,897	$	109,430

	Consumer		Mortgage Warehouse		Manufactured Housing
	(dollars in thousands)
Performing	$	2,005	$	9,565	$	154,562
Nonperforming (1)		56		0		141
Total	$	2,061	$	9,565	$	154,703

(1) Includes loans that are on nonaccrual status at December 31, 2012.

The following presents the credit quality tables as of June 30, 2013 and December 31, 2012 for the covered loan portfolio.

	June 30, 2013
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	4,827	$	16,930	$	1,976	$	14,170
Special Mention		121		3,063		3,949		455
Substandard		2,278		15,908		19,844		4,588
Doubtful		0		0		0		0
Total	$	7,226	$	35,901	$	25,769	$	19,213

	Manufactured Housing
	(dollars in thousands)
Performing	$	3,412
Nonperforming (1)		93
Total	$	3,505

(1) Includes loans that are on nonaccrual status at June 30, 2013.

	December 31, 2012
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	8,888	$	26,195	$	2,434	$	14,021
Special Mention		51		225		4,038		455
Substandard		2,214		18,481		21,320		5,476
Doubtful		0		0		0		0
Total	$	11,153	$	44,901	$	27,792	$	19,952

	Manufactured Housing
	(dollars in thousands)
Performing	$	3,638
Nonperforming (1)		90
Total	$	3,728

(1) Includes loans that are on nonaccrual status at December 31, 2012.

Schedule of Allowance for Loan Losses

The changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 and the loans and allowance for loan losses by loan segment based on impairment evaluation method are as follows. Please read in conjunction with disclosures in the Bancorp’s 2012 Annual Report on Form 10-K.

	Commercial and Industrial			Commercial Real Estate			Construction			Residential Real  Estate			Manufactured Housing			Consumer			Mortgage Warehouse			Unallocated			Total
	(dollars in thousands)
Three months ended June 30, 2013
Beginning Balance, April 1, 2013	$	1,990		$	15,223		$	4,279		$	3,248		$	846		$	141		$	54		$	658		$	26,439
Charge-offs		(76	)		(1,481	)		(1,471	)		(65	)		0			0			0			0			(3,093	)
Recoveries		154			8			0			10			0			4			0			0			176
Provision for loan losses		417			2,935			1,509			359			(168	)		(39	)		2			(395	)		4,620
Ending Balance, June 30, 2013	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
Six months ended June 30, 2013
Beginning Balance, January 1, 2013	$	1,477		$	15,439		$	3,991		$	3,233		$	750		$	154		$	71		$	722		$	25,837
Charge-offs		(96	)		(1,891	)		(1,471	)		(198	)		0			0			0			0			(3,656	)
Recoveries		165			60			0			7			0			9			0			0			241
Provision for loan losses		939			3,077			1,797			510			(72	)		(57	)		(15	)		(459	)		5,720
Ending Balance, June 30, 2013	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
At June 30, 2013
Loans:
Individually evaluated for impairment	$	10,147		$	33,344		$	10,970		$	2,901		$	0		$	77		$	0					$	57,439
Collectively evaluated for impairment		180,933			1,200,004			31,695			121,973			143,925			1,228			7,560						1,687,318
Loans acquired with credit deterioration		5,159			58,034			16,563			15,121			5,507			503			0						100,887
																									$	1,845,644
Allowance for loan losses:
Individually evaluated for impairment	$	602		$	1,818		$	1,533		$	327		$	0		$	0		$	0		$	0		$	4,280
Collectively evaluated for impairment		1,477			9,402			279			1,022			76			48			56			263			12,623
Loans acquired with credit deterioration		406			5,465			2,505			2,203			602			58			0			0			11,239
	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
Three months ended June 30, 2012
Beginning Balance, April 1, 2012	$	1,464		$	7,117		$	5,099		$	775		$	33		$	95		$	763		$	54		$	15,400
Charge-offs		0			(938	)		(979	)		(179	)		0			(10	)		0			0			(2,106	)
Recoveries		66			14			0			1			0			5			0			0			86
Provision for loan losses		(27	)		2,073			232			483			8			(16	)		39			(54	)		2,738
Ending Balance, June 30, 2012	$	1,503		$	8,266		$	4,352		$	1,080		$	41		$	74		$	802		$	0		$	16,118
Six months ended June 30, 2012
Beginning Balance, January 1, 2012	$	1,441		$	7,029		$	4,656		$	844		$	18		$	61		$	929		$	54		$	15,032
Charge-offs		(34	)		(1,143	)		(2,191	)		(200	)		0			(10	)		0			0			(3,578	)
Recoveries		66			50			0			5			0			5			0			0			126
Provision for loan losses		30			2,330			1,887			431			23			18			(127	)		(54	)		4,538
Ending Balance, June 30, 2012	$	1,503		$	8,266		$	4,352		$	1,080		$	41		$	74		$	802		$	0		$	16,118
At June 30, 2012
Loans:
Individually evaluated for impairment	$	3,232		$	25,648		$	14,309		$	1,754		$	0		$	83		$	0		$	0		$	45,026
Collectively evaluated for impairment		68,212			405,632			7,809			89,617			96,713			5,141			801,994			0			1,475,118
Loans acquired with credit deterioration		12,253			77,378			23,203			22,413			9,097			722			0			0			145,066
																									$	1,665,210
Allowance for loan losses:
Individually evaluated for impairment	$	481		$	1,651		$	3,007		$	45		$	0		$	0		$	0		$	0		$	5,184
Collectively evaluated for impairment		868			4,995			181			994			41			57			802			0			7,938
Loans acquired with credit deterioration		154			1,620			1,164			41			0			17			0			0			2,996
	$	1,503		$	8,266		$	4,352		$	1,080		$	41		$	74		$	802		$	0		$	16,118

Changes in Accretable Discount Related to Purchased Credit Impaired Loans

The changes in accretable yield related to PCI loans since origination for the three and six months ended June 30, 2013 and 2012 were as follows:

For the Three Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	29,665		$	44,703
Accretion to interest income		(1,601	)		0
Reclassification from nonaccretable difference and disposals, net		(415	)		(1,473	)
Balance, end of period	$	27,649		$	43,230

For the Six Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	32,174		$	45,358
Accretion to interest income		(3,672	)		(2,059	)
Reclassification from nonaccretable difference and disposals, net		(853	)		(69	)
Balance, end of period	$	27,649		$	43,230

Activity Related to FDIC Loss Sharing Receivable

The following table summarizes the activity related to the FDIC loss sharing receivable for the three and six months ended June 30, 2013 and 2012:

Three Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	12,043		$	14,149
Change in FDIC loss sharing receivable		2,884			(449	)
Reimbursement from the FDIC		(758	)		(1,324	)
Balance, end of period	$	14,169		$	12,376

Six Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	12,343		$	13,077
Change in FDIC loss sharing receivable		4,954			741
Reimbursement from the FDIC		(3,128	)		(1,442	)
Balance, end of period	$	14,169		$	12,376

XML

Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments

The following table presents the fair value of the Bancorp’s derivative financial instruments as well as the classification on the balance sheet.

	Fair Value of Derivative Instruments June 30, 2013
	Asset Derivatives			Liability Derivatives
	Balance sheet location	Fair value		Balance sheet location	Fair value
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other assets	$	1,919	Other liabilities	$	1,868

Effect of Derivative Instruments on Comprehensive Income

The following table presents the effect of the Bancorp’s derivative financial instruments on comprehensive income for the three and six months ended June 30, 2013.

	Effect of Derivative Instruments on Comprehensive Income Three Months Ended June 30, 2013
	Location of gain recognized in income on derivatives	Amount of gain recognized in income on derivatives
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other non-interest income	$	155

	Effect of Derivative Instruments on Comprehensive Income Six Months Ended June 30, 2013
	Location of gain recognized in income on derivatives	Amount of gain recognized in income on derivatives
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other non-interest income	$	198

XML

Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Comprehensive Income (Detail) (Other Non-Interest Income [Member], Interest Rate Products [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Other Non-Interest Income [Member] | Interest Rate Products [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain recognized in income on derivatives	$ 155	$ 198

XML

Earnings Per Share - Anti-dilutive Securities Excluded from Computation of Earning Per Share (Detail)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Weighted average anti-dilutive securities:
Total anti-dilutive securities	174,306	2,157,491	200,317	2,164,208
Stock Options [Member]
Weighted average anti-dilutive securities:
Total anti-dilutive securities	55,561	1,590,162	81,572	1,594,976
Warrants [Member]
Weighted average anti-dilutive securities:
Total anti-dilutive securities	118,745	567,329	118,745	569,232

XML

Derivative Instruments and Hedging Activities - Fair Value of Derivative Financial Instruments (Detail) (Derivatives Not Designated as Hedging Instruments [Member], Interest Rate Products [Member], USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Other Assets [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Asset, Fair Value, Gross Asset	$ 1,919
Other Liabilities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ 1,868

XML

Loans Receivable and Allowance for Loan Losses - Activity Related to FDIC Loss Sharing Receivable (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Banking And Thrift [Abstract]
Balance, beginning of period	$ 12,043	$ 14,149	$ 12,343	$ 13,077
Change in FDIC loss sharing receivable	2,884	(449)	4,954	741
Reimbursement from the FDIC	(758)	(1,324)	(3,128)	(1,442)
Balance, end of period	$ 14,169	$ 12,376	$ 14,169	$ 12,376

XML

Loans Receivable and Allowance for Loan Losses - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	$ 1,003	$ 288	$ 1,260	$ 315
Extended under Forbearance [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	0	0	0	0
Multiple Extensions Resulting from Financial Difficulty [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	0	47	0	47
Interest-rate Reductions [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	1,003	241	1,260	268
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	93	288	93	315
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Extended under Forbearance [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	0	0	0	0
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Multiple Extensions Resulting from Financial Difficulty [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	0	47	0	47
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Interest-rate Reductions [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	93	241	93	268
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	910	0	1,167	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Extended under Forbearance [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	0	0	0	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Multiple Extensions Resulting from Financial Difficulty [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	0	0	0	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Interest-rate Reductions [Member]
Financing Receivable Modifications Number Of Contracts [Line Items]
Amount of loans and leases modified in troubled debt restructurings	$ 910	$ 0	$ 1,167	$ 0

XML

Loans Receivable and Allowance for Loan Losses - Composition of Net Loans Receivable (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2013 FDIC
Receivables [Abstract]
Loans acquired in FDIC-assisted transactions	2

XML

CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Loans held for sale of mortgage warehouse loans at fair value	$ 1,148,001	$ 1,248,935
Other real estate owned, portion covered under Loss Sharing Agreements with the FDIC	$ 4,362	$ 4,109
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	24,709,638	18,507,121
Common stock, shares outstanding	24,662,019	18,459,502
Treasury stock, shares	47,619	47,619

XML

Investment Securities

6 Months Ended

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Investment Securities

NOTE 6 — INVESTMENT SECURITIES

In May 2012, Customers Bancorp reclassified its $269.0 million held-to-maturity investment portfolio to available for sale. Due to its strong outlook for loan growth, falling interest rates, and its decision to postpone its initial public offering of stock, the Bancorp decided to proceed with this reclassification to provide liquidity. In accordance with regulatory and accounting requirements, the Bancorp is prohibited from classifying security purchases as held to maturity for a period of two years.

The amortized cost and approximate fair value of investment securities as of June 30, 2013 and December 31, 2012 are summarized as follows:

	June 30, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	162,739	$	37	$	(5,433	)	$	157,343
Corporate notes		25,000		65		(100	)		24,965
Equities		6		0		0			6
	$	187,745	$	102	$	(5,533	)	$	182,314

(1) Includes private-label securities with an aggregate amortized cost of $561 and an aggregate fair value of $549.

	December 31, 2012
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities (1)	$	102,449	$	1,795	$	(109	)	$	104,135
Corporate notes		25,000		89		(137	)		24,952
Equities		6		0		0			6
	$	127,455	$	1,884	$	(246	)	$	129,093

(1) Includes private-label securities with an aggregate amortized cost of $629 and an aggregate fair value of $612.

The following table shows proceeds from the sale of available-for-sale investment securities and gross gains and gross losses realized on those sales for the three and six months ended June 30, 2013 and 2012:

	Three months ended June 30,				Six months ended June 30,
	2013		2012		2013		2012
	(dollars in thousands)
Proceeds from sale of available-for-sale securities	$	0	$	257,645	$	0	$	306,610
Gross gains	$	0	$	8,797	$	0	$	9,006
Gross losses		0		0		0		0
Net gains	$	0	$	8,797	$	0	$	9,006

These gains and losses were determined using the specific identification method and were included in non-interest income.

The following table shows available-for-sale debt securities by stated maturity. Debt securities backed by mortgages have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and are, therefore, classified separately with no specific maturity date:

	June 30, 2013
	Amortized Cost		Fair Value
	(dollars in thousands)
Due in one year or less	$	0	$	0
Due after one year through five years		25,000		24,965
Due after five years through ten years		0		0
Due after ten years		0		0
Mortgage-backed securities		162,739		157,343
Total debt securities	$	187,739	$	182,308

The Bancorp’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities	$	155,124	$	(5,419	)	$	323	$	(14	)	$	155,447	$	(5,433	)
Corporate notes		4,912		(88	)		4,988		(12	)		9,900		(100	)
Total	$	160,036	$	(5,507	)	$	5,311	$	(26	)	$	165,347	$	(5,533	)

	December 31, 2012
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(dollars in thousands)
Available for Sale:
Mortgage-backed securities	$	5,695	$	(87	)	$	429	$	(22	)	$	6,124	$	(109	)
Corporate notes		0		0			9,862		(137	)		9,862		(137	)
Total	$	5,695	$	(87	)	$	10,291	$	(159	)	$	15,986	$	(246	)

At June 30, 2013, there were 20 available-for-sale investment securities in the less-than-twelve-month category and seven available-for-sale investment securities in the twelve-month-or-more category. At December 31, 2012, there were two available-for-sale investment securities in the less-than-twelve-month category and eight available-for-sale investment securities in the twelve-month-or-more category. In management’s opinion, the unrealized losses reflect primarily changes in interest rates due to changes in economic conditions and the liquidity of the market, and not credit quality. In addition, the Bancorp does not believe that it will be more likely than not that the Bancorp will be required to sell the securities prior to maturity or market-price recovery.

During June 2012, Moody’s downgraded all five corporate bonds in the Bancorp’s portfolio. This downgrade was anticipated since Moody’s placed these bonds on negative watch in February 2012. The Bancorp analyzed these bonds in more detail at the time of downgrade. The Bancorp does not intend to sell these debt securities prior to recovery, and it is more likely than not that the Bancorp will not have to sell these debt securities prior to recovery. These bonds continue to pay their scheduled interest payments on time. No additional downgrades are anticipated at this time. The holdings are all in the financial services industry and all issuers are well capitalized.

At June 30, 2013 and December 31, 2012, Customers Bank had pledged investment securities aggregating $156.8 million and $103.5 million, respectively, as collateral for borrowings from the FHLB.

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 8,226	$ 6,504	$ 15,415	$ 9,616
Other comprehensive income (loss):
Unrealized holding gains (losses) on securities arising during the period	(5,976)	543	(7,069)	629
Income tax effect	2,092	(190)	2,475	(220)
Unrealized holding gain on securities transferred from the held-to-maturity category into the available-for-sale category	0	8,509	0	8,509
Income tax effect	0	(2,978)	0	(2,978)
Reclassification adjustment for gains included in net income	0	(8,797)	0	(9,006)
Income tax effect	0	3,079	0	3,152
Other comprehensive income (loss), net of tax	(3,884)	166	(4,594)	86
Comprehensive income	$ 4,342	$ 6,670	$ 10,821	$ 9,702

XML

Share-Based Compensation - Statement of Weighted-Average Assumptions Used and Resultant Weighted-Average Fair Value of Options (Detail) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted-average risk-free interest rate	1.39%	1.15%
Expected dividend yield	0.00%	0.00%
Weighted-average expected volatility	6.54%	17.47%
Expected life (in years)	7 years	6 years 11 months 23 days
Weighted-average fair value	$ 2.04	$ 3.04

XML

CONSOLIDATED BALANCE SHEET (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash and due from banks	$ 10,728	$ 12,908
Interest earning deposits	194,957	173,108
Cash and cash equivalents	205,685	186,016
Investment securities available for sale, at fair value	182,314	129,093
Loans held for sale (including $1,148,001 and $1,248,935 of mortgage warehouse loans at fair value at June 30, 2013 and December 31, 2012, respectively)	1,414,943	1,439,889
Loans receivable not covered under Loss Sharing Agreements with the FDIC	1,753,658	1,216,941
Loans receivable covered under Loss Sharing Agreements with the FDIC	91,614	107,526
Less: Allowance for loan losses	(28,142)	(25,837)
Total loans receivable, net	1,817,130	1,298,630
FDIC loss sharing receivable	14,169	12,343
Bank premises and equipment, net	10,170	9,672
Bank-owned life insurance	67,762	56,191
Other real estate owned (2013 $4,362; 2012 $4,109 covered under Loss Sharing Agreements with the FDIC)	10,607	8,114
Goodwill and other intangibles	3,683	3,689
Restricted stock	33,188	30,163
Accrued interest receivable and other assets	33,607	27,434
Total assets	3,793,258	3,201,234
Deposits:
Demand, non-interest bearing	265,842	219,687
Interest bearing	2,509,867	2,221,131
Total deposits	2,775,709	2,440,818
Federal funds purchased	120,000	5,000
Other borrowings	505,000	471,000
Subordinated debt	2,000	2,000
Accrued interest payable and other liabilities	10,776	12,941
Total liabilities	3,413,485	2,931,759
Shareholders' equity:
Preferred stock, no par value or as set by the board; 100,000,000 shares authorized; none issued	0	0
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 24,709,638 shares issued and 24,662,019 outstanding at June 30, 2013 and 18,507,121 shares issued and 18,459,502 outstanding at December 31, 2012	24,710	18,507
Additional paid in capital	305,364	212,090
Retained earnings	53,729	38,314
Accumulated other comprehensive (loss) income	(3,530)	1,064
Less: cost of treasury stock; 47,619 shares at June 30, 2013 and December 31, 2012	(500)	(500)
Total shareholders' equity	379,773	269,475
Total liabilities and shareholders' equity	$ 3,793,258	$ 3,201,234

XML

Loans Receivable and Allowance for Loan Losses - Summary of Loans and Leases Modified in Troubled Debt Restructurings, and Recorded Investments and Unpaid Principal Balances (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013 Loans	Jun. 30, 2012 Loans	Jun. 30, 2013 Loans	Jun. 30, 2012 Loans
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment	$ 93	$ 288	$ 93	$ 315
Number of loans and leases modified in troubled debt restructurings	3	5	3	6
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Commercial and Industrial [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Construction [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Manufactured Housing [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	2	5	2	6
Recorded Investment	60	288	60	315
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Residential Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Accruing Interest [Member] | Consumer [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	1	0	1	0
Recorded Investment	33	0	33	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment	910	0	1,167	0
Number of loans and leases modified in troubled debt restructurings	7	0	10	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Commercial and Industrial [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Construction [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Manufactured Housing [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	7	0	10	0
Recorded Investment	910	0	1,167	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Residential Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	0	0	0	0
TDRs in Compliance With Their Modified Terms and Not Accruing Interest [Member] | Consumer [Member]
Schedule Of Financial Receivables [Line Items]
Number of Loans	0	0	0	0
Recorded Investment	$ 0	$ 0	$ 0	$ 0

XML

Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Statement of Weighted-Average Assumptions Used and Resultant Weighted-Average Fair Value of Options

The following table presents the weighted-average assumptions used and the resultant weighted-average fair value of the options.

	2013			2012
Weighted-average risk-free interest rate		1.39	%		1.15	%
Expected dividend yield		0.00	%		0.00	%
Weighted-average expected volatility		6.54	%		17.47	%
Expected life (in years)		7.00			6.98
Weighted-average fair value	$	2.04		$	3.04

Statement of Stock Option Activity

The following table summarizes stock option activity for the six months ended June 30, 2013.

	Number of Options		Weighted- average Exercise Price		Weighted- average Remaining Contractual Term in Years		Aggregate Intrinsic Value
	(aggregate intrinsic value in thousands)
Outstanding at January 1, 2013		2,003,889	$	12.49
Granted		760,597		16.66
Outstanding at June 30, 2013		2,764,486	$	13.64		8.40	$	7,650
Vested and expected to vest at June 30, 2013		2,764,486		13.64		8.40		7,650
Exercisable at June 30, 2013		14,438	$	20.06		3.82	$	13

XML

Subsequent Events

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events

NOTE 15 — SUBSEQUENT EVENTS

On July 30, 2013, the Bancorp completed an underwritten public offering of $55.0 million non-callable five-year senior unsecured notes, with interest at 6.375% payable quarterly. The Bancorp granted the underwriters a 30-day option to purchase up to an additional 15% of the aggregate principal amount of the senior notes ($8.25 million) sold in the offering, solely to cover overallotments, if any. Net proceeds are estimated to be $52.6 million, or $60.6 million, if the underwriters were to exercise the overallotment option in full.

The Bancorp intends to use the net proceeds from the offering to invest in its subsidiary, Customers Bank, to fund its organic growth, and for working capital and other general corporate purposes. The Bancorp may also use a portion of the net proceeds to pursue acquisitions or investments in its current and prospective markets.

XML

Loans Receivable and Allowance for Loan Losses - Composition of Net Loans Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	$ 91,614		$ 107,526
Total loans receivable	1,753,658		1,216,941
Total loans receivable	1,845,644		1,322,788
Deferred (fees) costs, net	(372)		1,679
Allowance for loan losses	(28,142)	(26,439)	(25,837)	(16,118)	(15,400)	(15,032)
Total loans receivable, net	1,817,130		1,298,630
Total Loans Receivable Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	91,614		107,526
Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	1,754,030		1,215,262
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	(4,317)	(4,279)	(3,991)	(4,352)	(5,099)	(4,656)
Construction [Member] | Total Loans Receivable Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	25,769		27,792
Construction [Member] | Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	33,459		28,897
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	(16,685)	(15,223)	(15,439)	(8,266)	(7,117)	(7,029)
Commercial Real Estate [Member] | Total Loans Receivable Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	35,901		44,901
Commercial Real Estate [Member] | Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	1,255,481		835,488
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	(2,485)	(1,990)	(1,477)	(1,503)	(1,464)	(1,441)
Commercial and Industrial [Member] | Total Loans Receivable Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	7,226		11,153
Commercial and Industrial [Member] | Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	189,013		75,118
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	(3,552)	(3,248)	(3,233)	(1,080)	(775)	(844)
Residential Real Estate [Member] | Total Loans Receivable Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	19,213		19,952
Residential Real Estate [Member] | Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	120,782		109,430
Manufactured Housing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	3,505		3,728
Allowance for loan losses	(678)	(846)	(750)	(41)	(33)	(18)
Manufactured Housing [Member] | Total Loans Receivable Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	3,505		3,728
Manufactured Housing [Member] | Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	145,927		154,703
Mortgage Warehouse [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	(56)	(54)	(71)	(802)	(763)	(929)
Mortgage Warehouse [Member] | Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	7,560		9,565
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	(106)	(141)	(154)	(74)	(95)	(61)
Consumer [Member] | Total Loans Receivable Not Covered Under FDIC Loss Sharing Agreements [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans receivable	$ 1,808		$ 2,061

XML

Loans Receivable and Allowance for Loan Losses - Changes in Accretable Discount Related to Purchased Credit Impaired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Receivables [Abstract]
Balance, beginning of period	$ 29,665	$ 44,703	$ 32,174	$ 45,358
Accretion to interest income	(1,601)	0	(3,672)	(2,059)
Reclassification from nonaccretable difference and disposals, net	(415)	(1,473)	(853)	(69)
Balance, end of period	$ 27,649	$ 43,230	$ 27,649	$ 43,230

XML

Disclosures about Fair Value of Financial Instruments - Summary of Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Specific reserves related to impaired loans	$ 4,280	$ 4,625
Impaired Loans [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Specific reserves related to impaired loans	$ 4,280	$ 4,625

XML

Investment Securities - Summary of Amortized Cost and Approximate Fair Value of Investment Securities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 187,745	$ 127,455
Gross Unrealized Gains	102	1,884
Gross Unrealized Losses	(5,533)	(246)
Available-for-sale Securities, Fair Value Total	182,314	129,093
Mortgage-backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	162,739	102,449
Gross Unrealized Gains	37	1,795
Gross Unrealized Losses	(5,433)	(109)
Available-for-sale Securities, Fair Value Total	157,343	104,135
Corporate Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	25,000	25,000
Gross Unrealized Gains	65	89
Gross Unrealized Losses	(100)	(137)
Available-for-sale Securities, Fair Value Total	24,965	24,952
Equities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6	6
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Available-for-sale Securities, Fair Value Total	$ 6	$ 6

XML

Changes in Accumulated Other Comprehensive Income by Component - Changes in Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified			3 Months Ended	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Unrealized Gains and Losses on Available-for-Sale Securities [Member]	Jun. 30, 2013 Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Schedule Of Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ (3,530)	$ 1,064	$ 354	$ 1,064
Other comprehensive loss before reclassifications			(3,884)	(4,594)
Amounts reclassified from accumulated other comprehensive income			0	0
Net current-period other comprehensive loss			(3,884)	(4,594)
Ending balance	$ (3,530)	$ 1,064	$ (3,530)	$ (3,530)

XML

Earnings Per Share - Components of Earnings Per Share (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Abstract]
Net income allocated to common shareholders	$ 8,226	$ 6,504	$ 15,415	$ 9,616
Weighted-average number of common shares - basic	21,266,904	11,347,683	19,876,779	11,347,683
Share-based compensation plans	398,229	188,673	342,019	183,859
Warrants	189,516	102,712	172,734	100,809
Weighted-average number of common shares - diluted	21,854,649	11,639,068	20,391,532	11,632,351
Basic earnings per share	$ 0.39	$ 0.57	$ 0.78	$ 0.85
Diluted earnings per share	$ 0.38	$ 0.56	$ 0.76	$ 0.83

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 5 — EARNINGS PER SHARE

The following are the components and results of the Bancorp’s earnings per share calculation for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
	(dollars in thousands, except per share data)
Net income allocated to common shareholders	$	8,226	$	6,504	$	15,415	$	9,616
Weighted-average number of common shares - basic		21,266,904		11,347,683		19,876,779		11,347,683
Share-based compensation plans		398,229		188,673		342,019		183,859
Warrants		189,516		102,712		172,734		100,809
Weighted-average number of common shares - diluted		21,854,649		11,639,068		20,391,532		11,632,351
Basic earnings per share	$	0.39	$	0.57	$	0.78	$	0.85
Diluted earnings per share	$	0.38	$	0.56	$	0.76	$	0.83

The following is a summary of securities that could potentially dilute basic earnings per share in the future that were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented:

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Weighted average anti-dilutive securities:
Share-based compensation awards		55,561		1,590,162		81,572		1,594,976
Warrants		118,745		567,329		118,745		569,232
Total anti-dilutive securities		174,306		2,157,491		200,317		2,164,208

XML

Disclosures about Fair Value of Financial Instruments - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013
Fair Value Disclosures [Abstract]
Loans held for sale, average life from purchase to sale	17 days

XML

Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2013

Banking And Thrift [Abstract]

Summary of Capital Amounts and Ratios

The Bancorp’s and the Bank’s capital amounts and ratios at June 30, 2013 and December 31, 2012 are as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective  Action Provisions
(dollars in thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2013:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	406,314		13.32	%	$	244,036		8.0	%		N/A		N/A
Customers Bank	$	378,972		12.43	%	$	243,915		8.0	%	$	304,894		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	377,617		12.38	%	$	122,018		4.0	%		N/A		N/A
Customers Bank	$	350,275		11.49	%	$	121,958		4.0	%	$	182,937		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	377,617		11.20	%	$	134,895		4.0	%		N/A		N/A
Customers Bank	$	350,275		10.39	%	$	134,845		4.0	%	$	168,556		5.0	%
As of December 31, 2012:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	289,035		11.26	%	$	205,443		8.0	%		N/A		N/A
Customers Bank	$	244,710		9.53	%	$	205,442		8.0	%	$	256,802		10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	262,719		10.23	%	$	102,722		4.0	%		N/A		N/A
Customers Bank	$	218,394		8.50	%	$	102,721		4.0	%	$	154,081		6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	262,719		9.30	%	$	112,939		4.0	%		N/A		N/A
Customers Bank	$	218,394		7.74	%	$	112,896		4.0	%	$	141,120		5.0	%

XML

Investment Securities - Summary of Investments Available for Sale Debt Securities by Stated Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013
Investments Debt And Equity Securities [Abstract]
Amortized Cost, Due in one year or less	$ 0
Amortized Cost, Due after one year through five years	25,000
Amortized Cost, Due after five years through ten years	0
Amortized Cost, Due after ten years	0
Mortgage-backed securities, Amortized Cost	162,739
Total, debt securities, Amortized Cost	187,739
Fair Value, Due in one year or less	0
Fair Value, Due after one year through five years	24,965
Fair Value, Due after five years through ten years	0
Fair Value, Due after ten years	0
Mortgage-backed securities, Fair Value	157,343
Total debt securities, Fair Value	$ 182,308

XML

Shareholders' Equity

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Shareholders' Equity

NOTE 8 — SHAREHOLDERS’ EQUITY

On May 22, 2013, the Bancorp raised $103.5 million in gross proceeds by issuing 6,179,104 shares of its voting common stock at a price to the public of $16.75 per share. The net proceeds to Customers after deducting underwriting discounts and commissions and offering expenses were $97.7 million.

During the third quarter of 2012, the Bancorp sold 7,111,819 shares of common stock in private offerings. The proceeds, net of offering costs, were $94.6 million.

On May 8, 2012, the Bancorp announced that, due to market conditions, it had postponed its initial public offering of voting common stock. Costs related to this postponed offering in the amount of $1.3 million were expensed.

XML

Subsequent Events - Additional Information (Detail) (Non-callable Five-year Senior Unsecured Notes [Member], Subsequent Event [Member], Underwritten Public Offering [Member], USD $) In Millions, unless otherwise specified	1 Months Ended
	Jul. 30, 2013
Subsequent Event [Line Items]
Senior unsecured notes	$ 55.0
Senior unsecured notes, term	5 years
Senior unsecured notes, interest rate	6.375%
Net proceeds from public offering	52.6
Percentage of aggregate principal amount	15.00%
Aggregate principal amount of senior notes	8.25
Number of day option granted to underwriters	30 days
Underwriters Exercise of Overallotment Option in Full [Member]
Subsequent Event [Line Items]
Net proceeds from public offering	$ 60.6

XML

Changes in Accumulated Other Comprehensive Income by Component

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Changes in Accumulated Other Comprehensive Income by Component

NOTE 4 — CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (a)

	Unrealized Gains and Losses on Available-for-Sale Securities
	(dollars in thousands)
Beginning balance - April 1, 2013	$	354
Other comprehensive loss before reclassifications		(3,884	)
Amounts reclassified from accumulated other comprehensive income		0
Net current-period other comprehensive loss		(3,884	)
Ending balance - June 30, 2013	$	(3,530	)
	Unrealized Gains and Losses on Available-for-Sale Securities
	(dollars in thousands)
Beginning balance - January 1, 2013	$	1,064
Other comprehensive loss before reclassifications		(4,594	)
Amounts reclassified from accumulated other comprehensive income		0
Net current-period other comprehensive loss		(4,594	)
Ending balance - June 30, 2013	$	(3,530	)

(a) All amounts are net of tax. Amounts in parentheses indicate debits.

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Statement Of Stockholders Equity [Abstract]
Public offering of common stock, costs	$ 5,811

XML

Loans Receivable and Allowance for Loan Losses - Credit Quality Tables for Covered and Non-Covered Loan Portfolio (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	$ 1,753,658	$ 1,216,941
Total loans receivable	91,614	107,526
Manufactured Housing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	3,505	3,728
Manufactured Housing [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	145,927	154,703
Manufactured Housing [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	3,412	3,638
Manufactured Housing [Member] | Performing [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	145,917	154,562
Manufactured Housing [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	93	90
Manufactured Housing [Member] | Nonperforming [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	10	141
Commercial and Industrial [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	7,226	11,153
Commercial and Industrial [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	189,013	75,118
Commercial and Industrial [Member] | Pass/Satisfactory [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	4,827	8,888
Commercial and Industrial [Member] | Pass/Satisfactory [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	178,927	70,955
Commercial and Industrial [Member] | Special Mention [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	121	51
Commercial and Industrial [Member] | Special Mention [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	9,526	3,836
Commercial and Industrial [Member] | Substandard [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	2,278	2,214
Commercial and Industrial [Member] | Substandard [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	560	327
Commercial and Industrial [Member] | Doubtful [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Commercial and Industrial [Member] | Doubtful [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Commercial Real Estate [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	35,901	44,901
Commercial Real Estate [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,255,481	835,488
Commercial Real Estate [Member] | Pass/Satisfactory [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	16,930	26,195
Commercial Real Estate [Member] | Pass/Satisfactory [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,217,390	794,187
Commercial Real Estate [Member] | Special Mention [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	3,063	225
Commercial Real Estate [Member] | Special Mention [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	19,638	18,737
Commercial Real Estate [Member] | Substandard [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	15,908	18,481
Commercial Real Estate [Member] | Substandard [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	18,453	21,801
Commercial Real Estate [Member] | Doubtful [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Commercial Real Estate [Member] | Doubtful [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	763
Construction [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	25,769	27,792
Construction [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	33,459	28,897
Construction [Member] | Pass/Satisfactory [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,976	2,434
Construction [Member] | Pass/Satisfactory [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	30,364	26,020
Construction [Member] | Special Mention [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	3,949	4,038
Construction [Member] | Special Mention [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	389	454
Construction [Member] | Substandard [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	19,844	21,320
Construction [Member] | Substandard [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	2,706	1,971
Construction [Member] | Doubtful [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Construction [Member] | Doubtful [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	452
Residential Real Estate [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	19,213	19,952
Residential Real Estate [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	120,782	109,430
Residential Real Estate [Member] | Pass/Satisfactory [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	14,170	14,021
Residential Real Estate [Member] | Pass/Satisfactory [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	117,946	105,490
Residential Real Estate [Member] | Special Mention [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	455	455
Residential Real Estate [Member] | Special Mention [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,070	1,017
Residential Real Estate [Member] | Substandard [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	4,588	5,476
Residential Real Estate [Member] | Substandard [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,766	2,919
Residential Real Estate [Member] | Doubtful [Member] | Covered Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	0
Residential Real Estate [Member] | Doubtful [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	0	4
Consumer [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,808	2,061
Consumer [Member] | Performing [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	1,751	2,005
Consumer [Member] | Nonperforming [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	57	56
Mortgage Warehouse [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	7,560	9,565
Mortgage Warehouse [Member] | Performing [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	7,560	9,565
Mortgage Warehouse [Member] | Nonperforming [Member] | Non-covered Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans receivable	$ 0	$ 0

XML

Loans Receivable and Allowance for Loan Losses - Non-Covered Loans and Covered Loans, by Class (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2013
Receivables [Abstract]
Due days for loan payments	29 days
Delinquent period	90 days

XML

Disclosures about Offsetting Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Summary of Offsetting Financial Derivative Assets and Liabilities

The following tables present derivative instruments that are subject to enforceable master netting arrangements. The Bancorp has not made a policy election to offset its derivative positions.

Offsetting of Financial Assets and Derivative Assets For the Six Months Ended June 30, 2013
							Gross amounts not offset in the consolidated balance sheet
	Gross amount of recognized assets		Gross amounts offset in the consolidated balance sheet		Net amounts of assets presented in the consolidated balance sheet		Financial instruments		Cash collateral received		Net amount
	(dollars in thousands)
Description
Interest rate derivatives with institutional counterparties	$	208	$	0	$	208	$	208	$	0	$	0
Offsetting of Financial Liabilities and Derivative Liabilities For the Six Months Ended June 30, 2013
							Gross amounts not offset in the consolidated balance sheet
	Gross amount of recognized liabilities		Gross amounts offset in the consolidated balance sheet		Net amounts of liabilities presented in the consolidated balance sheet		Financial instruments		Cash collateral pledged		Net amount
	(dollars in thousands)
Description
Interest rate derivatives with institutional counterparties	$	1,720	$	0	$	1,720	$	208	$	1,512	$	0

XML

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) [Member], USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Balance at beginning	$ 22,336	$ 22,111
Total losses included in other comprehensive income (before taxes)	(343)	(14)
Amortization included in interest income	(158)	(262)
Purchases	5,000	5,000
Balance at ending	26,835	26,835
Mortgage-backed Securities [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Balance at beginning	2,790	2,894
Total losses included in other comprehensive income (before taxes)	0	0
Amortization included in interest income	(158)	(262)
Purchases	0	0
Balance at ending	2,632	2,632
Corporate Notes [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Balance at beginning	19,546	19,217
Total losses included in other comprehensive income (before taxes)	(343)	(14)
Amortization included in interest income	0	0
Purchases	5,000	5,000
Balance at ending	24,203	24,203
Loans Held for Sale [Member]
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items]
Balance at beginning	3,173	0
Balance at ending	0	0
Recoveries	(1,463)	(1,463)
Sales	(1,013)	(1,013)
Transfer from loans held for sale to other assets	(697)	(697)
Transfer from Level 2 to Level 3		$ 3,173

XML

Share-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Options, Outstanding beginning balance	2,003,889
Number of Options, Granted	760,597
Number of Options, Outstanding ending balance	2,764,486
Number of Options, Vested and expected to vest	2,764,486
Number of Options, Exercisable	14,438
Weighted-average Exercise Price, Outstanding beginning balance	$ 12.49
Weighted-average Exercise Price, Granted	$ 16.66
Weighted-average Exercise Price, Outstanding ending balance	$ 13.64
Weighted-average Exercise Price, Vested and expected to vest	$ 13.64
Weighted-average Exercise Price, Exercisable	$ 20.06
Weighted-average Remaining Contractual Term in Years, Outstanding	8 years 4 months 24 days
Weighted-average Remaining Contractual Term in Years, Vested and expected to vest	8 years 4 months 24 days
Weighted-average Remaining Contractual Term in Years, Exercisable	3 years 9 months 26 days
Aggregate Intrinsic Value, Outstanding	$ 7,650
Aggregate Intrinsic Value, Vested and expected to vest	7,650
Aggregate Intrinsic Value, Exercisable	$ 13

XML

Disclosures about Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Disclosures about Fair Value of Financial Instruments

NOTE 11 — DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS

The Bancorp uses fair value measurements to record fair value adjustments to certain assets and to disclose the fair value of its financial instruments. FASB ASC 825, Financial Instruments, requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For the Bancorp, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. However, many of such 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, the Bancorp utilized certain fair value measurement criteria under the FASB ASC 820, Fair Value Measurement, as explained below.

Cash and cash equivalents:

The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values.

Investment Securities:

The fair value of investment securities available for sale and held to maturity are determined by obtaining quoted market prices on nationally recognized 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).

The carrying amount of restricted stock approximates fair value, and considers the limited marketability of such securities.

Loans held for sale:

The fair value of loans receivable held for sale is based on commitments on hand from investors within the secondary market for loans with similar characteristics.

Loans held for sale — Mortgage warehouse loans:

The Fair Value Option

The Bancorp elected the fair value option for warehouse lending transactions documented under a Master Repurchase Agreement originated after July 1, 2012 in order to more accurately represent the short-term nature of the transaction and its inherent credit risk. This adoption was in accordance with the parameters established by Accounting Standards Codification (“ASC”) 825-10-25, Financial Instruments-Overall-Recognition: The Fair Value Option. As a result of this election, warehouse lending transactions are classified as “Loans held for sale” on the balance sheet. The interest income from the warehouse lending transactions is classified in “Interest Income — Loans held for sale on the income statement. An allowance for loan losses is not recorded for the warehouse lending transactions when measured at fair value since the exit price (the repurchase price) for warehouse lending transactions considers the effect of expected credit losses.

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 the mortgage company as short-term bridge financing between the funding of mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not expected to be recognized since at inception of the transaction the underlying loans have already been sold to an approved investor or they have been hedged by the mortgage company. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of 17 days from purchase to sale.

Loans receivable, net:

The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values.

Impaired loans:

Impaired loans are those that are accounted for under FASB ASC 450, Contingencies, in which the Bancorp has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

FDIC loss sharing receivable:

The FDIC loss sharing receivable is measured separately from the related covered assets, as it is not contractually embedded in the assets and is not transferable with the assets should the assets be sold. Fair value is estimated using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses using the applicable loss share percentages and the estimated true-up payment. These cash flows are discounted to reflect the estimated timing of the receipt of the loss share reimbursement from the FDIC.

Other real estate owned:

The fair value of OREO is determined using appraisals, which may be discounted based on management’s review and changes in market conditions (Level 3 Inputs). All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice (“USPAP”). Appraisals are certified to the Bancorp and performed by appraisers on the Bancorp’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”.

Accrued interest receivable and payable:

The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value.

Deposit liabilities:

The fair values disclosed for deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). 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.

Federal funds purchased:

For those short-term instruments, the carrying amount is a reasonable estimate of fair value.

Borrowings:

Borrowings consist of FHLB advances. The carrying amount of short-term FHLB borrowings approximates its fair value. 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. These 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.

Subordinated debt:

Fair values of subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms and remaining maturity.

Derivatives (Assets and Liabilities):

The fair values of interest rate swaps are determined using models that incorporate readily observable market data into a market standard methodology. The 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 Bancorp and its counterparties.

Off-balance-sheet financial instruments:

Fair values for the Bancorp’s off-balance-sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing.

The following information should not be interpreted as an estimate of the fair value of the entire Bancorp since a fair value calculation is only provided for a limited portion of the Bancorp’s assets. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Bancorp’s disclosures and those of other companies may not be meaningful.

The estimated fair values of the Bancorp’s financial instruments were as follows at June 30, 2013 and December 31, 2012.

					Fair Value Measurements at June 30, 2013
	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)
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	205,685	$	205,685	$	205,685	$	0	$	0
Investment securities, available for sale		182,314		182,314		6		182,308		0
Loans held for sale		1,414,943		1,414,943		0		1,414,943		0
Loans receivable, net		1,817,130		1,817,362		0		0		1,817,362
FDIC loss sharing receivable		14,169		14,169		0		14,169		0
Derivatives not designated as hedging instruments		1,919		1,919		0		1,919		0
Restricted stock		33,188		33,188		0		33,188		0
Fraudulent loans receivable (1)		669		669		0		0		669
Accrued interest receivable		7,077		7,077		7,077		0		0
Liabilities:
Deposits	$	2,775,709	$	2,763,089	$	265,842	$	2,497,247	$	0
Federal funds purchased		120,000		120,000		120,000		0		0
Other borrowings		505,000		506,228		0		506,228		0
Subordinated debt		2,000		2,000		0		2,000		0
Derivatives not designated as hedging instruments		1,868		1,868		0		1,868		0
Accrued interest payable		1,534		1,534		1,534		0		0

(1) Included in Other Assets

					Fair Value Measurements at December 31, 2012
	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)
	(dollars in thousands)
Assets:
Cash and cash equivalents	$	186,016	$	186,016	$	186,016	$	0	$	0
Investment securities, available for sale		129,093		129,093		6		129,087		0
Loans held for sale		1,439,889		1,439,889		0		1,439,889		0
Loans receivable, net		1,298,630		1,307,049		0		0		1,307,049
FDIC loss sharing receivable		12,343		12,343		0		12,343		0
Restricted stock		30,163		30,163		0		30,163		0
Accrued interest receivable		5,790		5,790		5,790		0		0
Liabilities:
Deposits	$	2,440,818	$	2,674,765	$	219,687	$	2,455,078	$	0
Federal funds purchased		5,000		5,000		5,000		0		0
Other borrowings		471,000		471,432		0		471,432		0
Subordinated debt		2,000		2,000		0		2,000		0
Accrued interest payable		1,530		1,530		1,530		0		0

In accordance with FASB ASC 820, Fair Value Measurements and Disclosures, 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 the Bancorp’s 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.

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).

An asset’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.

For financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at June 30, 2013 and December 31, 2012 were as follows:

	June 30, 2013
	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
	(dollars in thousands)
Recurring Fair Value Measurements
Assets
Available-for-sale securities:
Mortgage-backed securities	$	0	$	157,343	$	0	$	157,343
Corporate notes		0		24,965		0		24,965
Equities		6		0		0		6
Derivatives not designated as hedging instruments (1)		0		1,919		0		1,919
Mortgage warehouse loans held for sale		0		1,414,943		0		1,414,943
Total assets - recurring fair value measurements	$	6	$	1,599,170	$	0	$	1,599,176
Liabilities
Derivatives not designated as hedging instruments (2)	$	0	$	1,868	$	0	$	1,868
Nonrecurring Fair Value Measurements
Assets
Impaired loans, net of specific reserves of $4,280	$	0	$	0	$	9,044	$	9,044
Other real estate owned		0		0		5,424		5,424
Total assets - nonrecurring fair value measurements	$	0	$	0	$	14,468	$	14,468

(1) Included in Other Assets

(2) Included in Other Liabilities

	December 31, 2012
	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
	(dollars in thousands)
Recurring Fair Value Measurements
Assets
Available-for-sale securities:
Mortgage-backed securities	$	0	$	104,135	$	0	$	104,135
Corporate notes		0		24,952		0		24,952
Equities		6		0		0		6
Mortgage warehouse loans held for sale		0		1,248,935		0		1,248,935
Total assets - recurring fair value measurements	$	6	$	1,378,022	$	0	$	1,378,028
Nonrecurring Fair Value Measurements
Assets
Impaired loans, net of specific reserves of $4,625	$	0	$	0	$	11,004	$	11,004
Other real estate owned		0		0		5,737		5,737
Total assets - nonrecurring fair value measurements	$	0	$	0	$	16,741	$	16,741

The changes in Level 3 assets measured at fair value on a recurring basis for the three months and six months ended June 30, 2013 and 2012 are summarized as follows:

	Loans Held for Sale (1)
	(dollars in thousands)
Balance at April 1, 2013	$	3,173
Recoveries		(1,463	)
Sales		(1,013	)
Transfer from loans held for sale to other assets (1)		(697	)
Balance at June 30, 2013	$	0

	Mortgage- backed Securities			Corporate Notes			Total
	(dollars in thousands)
Balance at April 1, 2012	$	2,790		$	19,546		$	22,336
Total losses included in other comprehensive income (before taxes)		0			(343	)		(343	)
Amortization included in interest income		(158	)		0			(158	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

	Loans Held for Sale (1)
	(dollars in thousands)
Balance at January 1, 2013	$	0
Transfer from Level 2 to Level 3 (1)		3,173
Recoveries		(1,463	)
Sales		(1,013	)
Transfer from loans held for sale to other assets (1)		(697	)
Balance at June 30, 2013	$	0

	Mortgage- backed Securities			Corporate Notes			Total
	(dollars in thousands)
Balance at January 1, 2012	$	2,894		$	19,217		$	22,111
Total losses included in other comprehensive income (before taxes)		0			(14	)		(14	)
Amortization included in interest income		(262	)		0			(262	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

(1) The Bancorp’s policy is to recognize transfers between levels when events or circumstances warrant transfers. During the first quarter of 2013, a suspected fraud was discovered in the Bank’s loans held-for-sale portfolio. Total loans involved in this fraud initially appeared to be $5.2 million, and management believed the range of possible loss to have been between $1.5 million and $3.2 million. Accordingly, management provided a loss contingency of $2.0 million at March 31, 2013. Due to the uncertainty surrounding the amount of loss, management transferred these loans and the related loss contingency from Level 2 to Level 3. During the second quarter of 2013, the Bank determined that an aggregate of $1.0 million of the loans were not involved in the fraud, and these loans were subsequently sold. In addition, the Bank recovered $1.5 million in cash from the alleged perpetrator. The remaining aggregate of $2.7 million of loans and the related $2.0 million reserve were transferred to Other assets. Since it was resolved that the loans no longer meet the definition of a loan, combined with the fact that the Company is pursuing restitution through the involved parties, the Company has determined this to be a receivable and, accordingly, transferred the asset to Other assets.

The following table summarizes financial assets and financial liabilities measured at fair value as of June 30, 2013 on a recurring and nonrecurring basis for which the Bancorp utilized Level 3 inputs to measure fair value. The valuation techniques, unobservable inputs, and ranges (weighted average) are the same as those disclosed at December 31, 2012.

	Quantitative Information about Level 3 Fair Value  Measurements
June 30, 2013	Fair Value Estimate		Valuation Technique			Unobservable Input			Range (Weighted Average) (3)
	(dollars in thousands)
Impaired loans	$	9,044		Collateral appraisal	(1)		Liquidation expenses	(2)		-3% to -8% (-5.5%)
Other real estate owned	$	5,424		Collateral appraisal	(1)		Liquidation expenses	(2)		-3% to -8% (-5.5%)

(1) Obtained from independent third-parties approved appraisers. Appraisals are current and in compliance with credit policy. The Bancorp does not discount appraisals.

(2) Fair value is adjusted for costs to sell.

(3) Presented as a percentage of the value determined by appraisal.

XML

Loans Receivable and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Loans Receivable and Allowance for Loan Losses

NOTE 7 — LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES

The composition of net loans receivable was as follows:

	June 30, 2013			December 31, 2012
	(dollars in thousands)
Construction	$	25,769		$	27,792
Commercial real estate		35,901			44,901
Commercial and industrial		7,226			11,153
Residential real estate		19,213			19,952
Manufactured housing		3,505			3,728
Total loans receivable covered under FDIC loss sharing agreements (1)		91,614			107,526
Construction		33,459			28,897
Commercial real estate		1,255,481			835,488
Commercial and industrial		189,013			75,118
Mortgage warehouse		7,560			9,565
Manufactured housing		145,927			154,703
Residential real estate		120,782			109,430
Consumer		1,808			2,061
Total loans receivable not covered under FDIC loss sharing agreements		1,754,030			1,215,262
Total loans receivable		1,845,644			1,322,788
Deferred (fees) costs, net		(372	)		1,679
Allowance for loan losses		(28,142	)		(25,837	)
Loans receivable, net	$	1,817,130		$	1,298,630

(1) Loans that were acquired in two FDIC-assisted transactions and are covered under loss sharing agreements with the FDIC are referred to as “covered” loans throughout these financial statements.

Customers Bank takes advantage of Federal Home Loan Bank (“FHLB”) programs for overnight and term borrowings. Under the terms of a blanket collateral agreement, advances from the FHLB are collateralized by qualifying first-mortgage loans.

Non-Covered Nonaccrual Loans and Loans Past Due

The following tables summarize non-covered loans, by class:

	June 30, 2013
	30-89 Days Past Due (1)		Greater Than 90 Days (1)		Total Past Due (1)		Non- Accrual		Current (2)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	0	$	0	$	0	$	500	$	186,057	$	2,456	$	189,013
Commercial real estate		341		0		341		14,296		1,199,236		41,608		1,255,481
Construction		0		0		0		2,613		30,072		774		33,459
Residential real estate		307		0		307		951		108,674		10,850		120,782
Consumer		1		0		1		56		1,308		443		1,808
Mortgage warehouse		0		0		0		0		7,560		0		7,560
Manufactured housing (3)		6,388		2,435		8,823		1,152		130,444		5,508		145,927
Total	$	7,037	$	2,435	$	9,472	$	19,568	$	1,663,351	$	61,639	$	1,754,030
	December 31, 2012
	30-89 Days Past Due (1)		Greater Than 90 Days (1)		Total Past Due (1)		Non- Accrual		Current (2)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	38	$	0	$	38	$	288	$	72,715	$	2,077	$	75,118
Commercial real estate		1,437		0		1,437		17,770		770,508		45,773		835,488
Construction		0		0		0		2,423		25,022		1,452		28,897
Residential real estate		381		0		381		1,669		95,396		11,984		109,430
Consumer		0		0		0		56		1,486		519		2,061
Mortgage warehouse		0		0		0		0		9,565		0		9,565
Manufactured housing (3)		9,234		1,966		11,200		141		135,924		7,438		154,703
Total	$	11,090	$	1,966	$	13,056	$	22,347	$	1,110,616	$	69,243	$	1,215,262

(1) Loan balances do not include non-accrual loans.

(2) Loans where payments are due within 29 days of the scheduled payment date.

(3) Purchased manufactured housing loans, purchased in 2010, are subject to cash reserves held at the Bank that are used to fund the past-due payments when the loan becomes 90-days or more delinquent.

(4) Loans exclude deferred costs and fees.

(5) PCI loans that were aggregated into pools are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because we recognize interest income on each pool of loans, they are all considered to be performing. PCI loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and being reported as performing loans.

Covered Nonaccrual Loans and Loans Past Due

The following tables summarize covered loans, by class:

	June 30, 2013
	30-89 Days Past Due (1)		Greater Than 90 Days Past Due (1)		Total Past Due (1)		Non- Accrual		Current (2)(3)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	0	$	0	$	0	$	53	$	4,470	$	2,703	$	7,226
Commercial real estate		0		0		0		3,267		16,209		16,425		35,901
Construction		0		0		0		4,055		5,924		15,790		25,769
Residential real estate		297		0		297		564		14,082		4,270		19,213
Manufactured housing		52		0		52		41		3,352		60		3,505
Total	$	349	$	0	$	349	$	7,980	$	44,037	$	39,248	$	91,614
	December 31, 2012
	30-89 Days Past Due (1)		Greater Than 90 Days Past Due (1)		Total Past Due (1)		Non- Accrual		Current (2)(3)		PCI Loans (5)		Total Loans (4)
	(dollars in thousands)
Commercial and industrial	$	220	$	0	$	220	$	100	$	8,404	$	2,429	$	11,153
Commercial real estate		0		0		0		3,712		20,859		20,330		44,901
Construction		0		0		0		5,244		6,472		16,076		27,792
Residential real estate		0		0		0		1,358		14,226		4,368		19,952
Manufactured housing		48		0		48		90		3,527		63		3,728
Total	$	268	$	0	$	268	$	10,504	$	53,488	$	43,266	$	107,526

(1) Loans balances do not include nonaccrual loans.

(2) Loans receivable that were not identified upon acquisition as a loan with credit deterioration.

(3) Loans where payments are due within 29 days of the scheduled payment date.

(4) Loans exclude deferred costs and fees.

(5) PCI loans that were aggregated into pools are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because we recognize interest income on each pool of loans, they are all considered to be performing. PCI loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and being reported as performing loans.

Impaired Loans — Covered and Non-Covered

The following table presents a summary of impaired loans:

	June 30, 2013				For the Six Months Ended June 30, 2013
	Unpaid Principal Balance (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	7,970			$	5,249	$	118
Commercial real estate		28,187				24,277		554
Construction		5,609				7,075		10
Consumer		77				100		0
Residential real estate		2,272				2,436		14
With an allowance recorded:
Commercial and industrial		2,177	$	602		886		63
Commercial real estate		5,157		1,818		8,095		105
Construction		5,361		1,533		6,172		3
Consumer		0		0		45		0
Residential real estate		629		327		1,035		2
Total	$	57,439	$	4,280	$	55,370	$	869

(1) Also represents the recorded investment.

	December 31, 2012				For the Six Months Ended June 30, 2012
	Unpaid Principal Balance (1)		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(dollars in thousands)
With no related allowance recorded:
Commercial and industrial	$	3,844			$	5,593	$	72
Commercial real estate		26,626				20,329		303
Construction		6,588				7,788		16
Consumer		101				101		0
Residential real estate		3,188				2,131		10
With an allowance recorded:
Commercial and industrial		374	$	295		806		4
Commercial real estate		8,708		2,505		8,955		81
Construction		5,116		1,541		7,196		100
Consumer		100		14		20		1
Residential real estate		1,331		270		822		9
Total	$	55,976	$	4,625	$	53,741	$	596

(1) Also represents the recorded investment.

Troubled Debt Restructurings

At June 30, 2013, there were $9.2 million in loans categorized as troubled debt restructurings (“TDR”), and at June 30, 2012, there were $7.7 million in loans categorized as troubled debt restructurings. All TDRs are considered impaired loans in the calendar year of their restructuring. In subsequent years, a TDR may cease being classified as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below-market rate will be returned to performing status if it satisfies the six-month performance requirement; however, it will remain classified as impaired.

Modification of PCI loans that are accounted for within loan pools in accordance with the accounting standards for PCI loans do not result in the removal of these loans from the pool even if 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 TDRs.

The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the three and six months ended June 30, 2013 and 2012. There were no modifications that involved forgiveness of debt.

	TDRs in Compliance with Their Modified Terms and Accruing Interest		TDRs in Compliance with Their Modified Terms and Not Accruing Interest		Total
	(dollars in thousands)
Three months ended June 30, 2013
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		0		0		0
Interest-rate reductions		93		910		1,003
Total	$	93	$	910	$	1,003
Six months ended June 30, 2013
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		0		0		0
Interest-rate reductions		93		1,167		1,260
Total	$	93	$	1,167	$	1,260
Three months ended June 30, 2012
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		47		0		47
Interest-rate reductions		241		0		241
Total	$	288	$	0	$	288
Six months ended June 30, 2012
Extended under forbearance	$	0	$	0	$	0
Multiple extensions resulting from financial difficulty		47		0		47
Interest-rate reductions		268		0		268
Total	$	315	$	0	$	315

The following table provides, by class, the number of loans modified in troubled debt restructurings and the recorded investments and unpaid principal balances during the three and six months ended June 30, 2013 and 2012.

	TDRs in Compliance with Their Modified Terms and Accruing Interest				TDRs in Compliance with Their Modified Terms and Not Accruing Interest
	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
	(dollars in thousands)
Three months ended June 30, 2013
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		2		60		7		910
Residential real estate		0		0		0		0
Consumer		1		33		0		0
Total		3	$	93		7	$	910
Six months ended June 30, 2013
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		2		60		10		1,167
Residential real estate		0		0		0		0
Consumer		1		33		0		0
Total		3	$	93		10	$	1,167
Three months ended June 30, 2012
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		5		288		0		0
Residential real estate		0		0		0		0
Consumer		0		0		0		0
Total		5	$	288		0	$	0
Six months ended June 30, 2012
Commercial and industrial		0	$	0		0	$	0
Commercial real estate		0		0		0		0
Construction		0		0		0		0
Manufactured housing		6		315		0		0
Residential real estate		0		0		0		0
Consumer		0		0		0		0
Total		6	$	315		0	$	0

At June 30, 2013 and 2012, there were no commitments to lend additional funds to debtors whose terms have been modified in troubled debt restructuring.

All loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for credit losses. There was $0 in specific reserves resulting from the addition of TDR modifications for both the three and six months ended June 30, 2013 and 2012. There were no TDRs that defaulted in the three and six month periods ended June 30, 2013 and 2012.

Credit Quality Indicators

Credit quality indicators for commercial and industrial, commercial real estate, residential real estate, and construction loans are based on an internal risk-rating system and are assigned at the loan origination and reviewed on a periodic or on an “as needed” basis. Consumer, mortgage warehouse, and manufactured housing loans are evaluated on the basis of the payment activity of the loan.

To facilitate the monitoring of credit quality within the commercial and industrial, commercial real estate, construction portfolio, 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, special mention, substandard, and doubtful. 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 that do not have identified potential or well defined weaknesses and for which 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 and estimates, the risk rating process is intended to permit management to identify riskier credits in a timely manner and allocate the appropriate resources to managing the loans.

The Bank assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan and the Bank’s credit position.

The Bank assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans in this category also are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies noted are not addressed and corrected.

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. When it is determined that these loans are uncollectible they are charged off in the period in which they are determined to be uncollectible.

Risk ratings are not established for home equity loans, consumer loans, and installment loans, mainly because these portfolios consist of a larger number of homogenous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based on aggregate payment history, through the monitoring of delinquency levels and trends and are classified as performing and nonperforming.

The following presents the credit quality tables as of June 30, 2013 and December 31, 2012 for the non-covered loan portfolio.

	June 30, 2013
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	178,927	$	1,217,390	$	30,364	$	117,946
Special Mention		9,526		19,638		389		1,070
Substandard		560		18,453		2,706		1,766
Doubtful		0		0		0		0
Total	$	189,013	$	1,255,481	$	33,459	$	120,782

	Consumer		Mortgage Warehouse		Manufactured Housing
	(dollars in thousands)
Performing	$	1,751	$	7,560	$	145,917
Nonperforming (1)		57		0		10
Total	$	1,808	$	7,560	$	145,927

(1) Includes loans that are on nonaccrual status at June 30, 2013.

	December 31, 2012
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	70,955	$	794,187	$	26,020	$	105,490
Special Mention		3,836		18,737		454		1,017
Substandard		327		21,801		1,971		2,919
Doubtful		0		763		452		4
Total	$	75,118	$	835,488	$	28,897	$	109,430

	Consumer		Mortgage Warehouse		Manufactured Housing
	(dollars in thousands)
Performing	$	2,005	$	9,565	$	154,562
Nonperforming (1)		56		0		141
Total	$	2,061	$	9,565	$	154,703

(1) Includes loans that are on nonaccrual status at December 31, 2012.

The following presents the credit quality tables as of June 30, 2013 and December 31, 2012 for the covered loan portfolio.

	June 30, 2013
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	4,827	$	16,930	$	1,976	$	14,170
Special Mention		121		3,063		3,949		455
Substandard		2,278		15,908		19,844		4,588
Doubtful		0		0		0		0
Total	$	7,226	$	35,901	$	25,769	$	19,213

	Manufactured Housing
	(dollars in thousands)
Performing	$	3,412
Nonperforming (1)		93
Total	$	3,505

(1) Includes loans that are on nonaccrual status at June 30, 2013.

	December 31, 2012
	Commercial and Industrial		Commercial Real Estate		Construction		Residential Real Estate
	(dollars in thousands)
Pass/Satisfactory	$	8,888	$	26,195	$	2,434	$	14,021
Special Mention		51		225		4,038		455
Substandard		2,214		18,481		21,320		5,476
Doubtful		0		0		0		0
Total	$	11,153	$	44,901	$	27,792	$	19,952

	Manufactured Housing
	(dollars in thousands)
Performing	$	3,638
Nonperforming (1)		90
Total	$	3,728

(1) Includes loans that are on nonaccrual status at December 31, 2012.

Allowance for loan losses

The changes in the allowance for loan losses for the three and six months ended June 30, 2013 and 2012 and the loans and allowance for loan losses by loan segment based on impairment evaluation method are as follows. Please read in conjunction with disclosures in the Bancorp’s 2012 Annual Report on Form 10-K.

	Commercial and Industrial			Commercial Real Estate			Construction			Residential Real  Estate			Manufactured Housing			Consumer			Mortgage Warehouse			Unallocated			Total
	(dollars in thousands)
Three months ended June 30, 2013
Beginning Balance, April 1, 2013	$	1,990		$	15,223		$	4,279		$	3,248		$	846		$	141		$	54		$	658		$	26,439
Charge-offs		(76	)		(1,481	)		(1,471	)		(65	)		0			0			0			0			(3,093	)
Recoveries		154			8			0			10			0			4			0			0			176
Provision for loan losses		417			2,935			1,509			359			(168	)		(39	)		2			(395	)		4,620
Ending Balance, June 30, 2013	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
Six months ended June 30, 2013
Beginning Balance, January 1, 2013	$	1,477		$	15,439		$	3,991		$	3,233		$	750		$	154		$	71		$	722		$	25,837
Charge-offs		(96	)		(1,891	)		(1,471	)		(198	)		0			0			0			0			(3,656	)
Recoveries		165			60			0			7			0			9			0			0			241
Provision for loan losses		939			3,077			1,797			510			(72	)		(57	)		(15	)		(459	)		5,720
Ending Balance, June 30, 2013	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
At June 30, 2013
Loans:
Individually evaluated for impairment	$	10,147		$	33,344		$	10,970		$	2,901		$	0		$	77		$	0					$	57,439
Collectively evaluated for impairment		180,933			1,200,004			31,695			121,973			143,925			1,228			7,560						1,687,318
Loans acquired with credit deterioration		5,159			58,034			16,563			15,121			5,507			503			0						100,887
																									$	1,845,644
Allowance for loan losses:
Individually evaluated for impairment	$	602		$	1,818		$	1,533		$	327		$	0		$	0		$	0		$	0		$	4,280
Collectively evaluated for impairment		1,477			9,402			279			1,022			76			48			56			263			12,623
Loans acquired with credit deterioration		406			5,465			2,505			2,203			602			58			0			0			11,239
	$	2,485		$	16,685		$	4,317		$	3,552		$	678		$	106		$	56		$	263		$	28,142
Three months ended June 30, 2012
Beginning Balance, April 1, 2012	$	1,464		$	7,117		$	5,099		$	775		$	33		$	95		$	763		$	54		$	15,400
Charge-offs		0			(938	)		(979	)		(179	)		0			(10	)		0			0			(2,106	)
Recoveries		66			14			0			1			0			5			0			0			86
Provision for loan losses		(27	)		2,073			232			483			8			(16	)		39			(54	)		2,738
Ending Balance, June 30, 2012	$	1,503		$	8,266		$	4,352		$	1,080		$	41		$	74		$	802		$	0		$	16,118
Six months ended June 30, 2012
Beginning Balance, January 1, 2012	$	1,441		$	7,029		$	4,656		$	844		$	18		$	61		$	929		$	54		$	15,032
Charge-offs		(34	)		(1,143	)		(2,191	)		(200	)		0			(10	)		0			0			(3,578	)
Recoveries		66			50			0			5			0			5			0			0			126
Provision for loan losses		30			2,330			1,887			431			23			18			(127	)		(54	)		4,538
Ending Balance, June 30, 2012	$	1,503		$	8,266		$	4,352		$	1,080		$	41		$	74		$	802		$	0		$	16,118
At June 30, 2012
Loans:
Individually evaluated for impairment	$	3,232		$	25,648		$	14,309		$	1,754		$	0		$	83		$	0		$	0		$	45,026
Collectively evaluated for impairment		68,212			405,632			7,809			89,617			96,713			5,141			801,994			0			1,475,118
Loans acquired with credit deterioration		12,253			77,378			23,203			22,413			9,097			722			0			0			145,066
																									$	1,665,210
Allowance for loan losses:
Individually evaluated for impairment	$	481		$	1,651		$	3,007		$	45		$	0		$	0		$	0		$	0		$	5,184
Collectively evaluated for impairment		868			4,995			181			994			41			57			802			0			7,938
Loans acquired with credit deterioration		154			1,620			1,164			41			0			17			0			0			2,996
	$	1,503		$	8,266		$	4,352		$	1,080		$	41		$	74		$	802		$	0		$	16,118

The non-covered manufactured housing portfolio was purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the Purchase Agreement for defaults of the underlying borrower and other specified items. At June 30, 2013 and 2012, funds available for reimbursement, if necessary, were $2.7 million and $5.0 million, respectively. Quarterly, these funds are evaluated to determine if they would be sufficient to absorb probable losses within the manufactured housing portfolio.

The changes in accretable yield related to PCI loans since origination for the three and six months ended June 30, 2013 and 2012 were as follows:

For the Three Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	29,665		$	44,703
Accretion to interest income		(1,601	)		0
Reclassification from nonaccretable difference and disposals, net		(415	)		(1,473	)
Balance, end of period	$	27,649		$	43,230

For the Six Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	32,174		$	45,358
Accretion to interest income		(3,672	)		(2,059	)
Reclassification from nonaccretable difference and disposals, net		(853	)		(69	)
Balance, end of period	$	27,649		$	43,230

FDIC Loss Sharing Receivable

The following table summarizes the activity related to the FDIC loss sharing receivable for the three and six months ended June 30, 2013 and 2012:

Three Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	12,043		$	14,149
Change in FDIC loss sharing receivable		2,884			(449	)
Reimbursement from the FDIC		(758	)		(1,324	)
Balance, end of period	$	14,169		$	12,376

Six Months Ended June 30,	2013			2012
	(dollars in thousands)
Balance, beginning of period	$	12,343		$	13,077
Change in FDIC loss sharing receivable		4,954			741
Reimbursement from the FDIC		(3,128	)		(1,442	)
Balance, end of period	$	14,169		$	12,376

XML

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, unless otherwise specified				6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Fair Value Estimate [Member]	Jun. 30, 2013 Liquidation Expenses [Member] Impaired Loans [Member] Collateral Appraisal [Member]	Jun. 30, 2013 Liquidation Expenses [Member] Other Real Estate Owned [Member] Collateral Appraisal [Member]
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items]
Impaired loans			$ 9,044
Other real estate owned	$ 10,607	$ 8,114	$ 5,424
Minimum				(3.00%)	(3.00%)
Maximum				(8.00%)	(8.00%)
Weighted Average				(5.50%)	(5.50%)

XML

Loss Contingency

6 Months Ended

Jun. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Loss Contingency

NOTE 14 — LOSS CONTINGENCY

During the first quarter of 2013, a suspected fraud was discovered in the Bank’s loans held-for-sale portfolio. Total loans involved in this fraud initially appeared to be $5.2 million, and, management believed the range of possible loss to have been between $1.5 million and $3.2 million. Accordingly, management has provided a loss contingency of $2.0 million at March 31, 2013. Due to the uncertainty surrounding the amount of loss, management transferred these loans and the related loss contingency from Level 2 to Level 3. During the second quarter of 2013, the Bank determined that an aggregate of $1.0 million of the loans were not involved in the fraud, and these loans were subsequently sold. In addition, the Bank recovered $1.5 million in cash from the alleged perpetrator. Since it was resolved that the loans no longer meet the definition of a loan, combined with the fact that the Company is pursuing restitution through the involved parties, the Company has determined this to be a receivable and, accordingly, transferred the asset to Other assets. Therefore, the remaining aggregate of $2.7 million of loans and the related $2.0 million contingency were transferred to Other assets.

XML

Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

NOTE 12 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Accounting Policy for Derivative Instruments and Hedging Activities

The Bancorp records all derivatives on the balance sheet at fair value. Currently, none of the derivatives are designated in qualifying hedging relationships, as the derivatives are not used to manage risks with the Bancorp’s assets or liabilities. As such, all changes in fair value of the derivatives are recognized directly in earnings.

In accordance with U.S. GAAP, the Bancorp made an accounting policy election to measure credit risk of its derivative financial instruments that are subject to master netting agreements on a gross basis.

Risk Management Objectives of Using Derivatives

The Bancorp is exposed to certain risks arising from both its business operations and economic conditions. The Bancorp manages economic risks, including interest rate, liquidity, and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. The Bank’s existing interest-rate derivatives result from a service provided to certain qualifying customers, and therefore, are not used to manage interest-rate risk in assets or liabilities. The Bank manages a matched book with respect to its derivative instruments in order to minimize its net risk exposure resulting from such transactions.

Derivatives Not Designated as Hedging Instruments

None of the Bancorp’s derivatives are designated in qualifying hedging relationships. Derivatives not designated as hedges are not speculative and result from a service implemented in the first quarter of 2013 that the Bank provides to certain customers. The Bank executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Bank executes with a third party in order to minimize its net risk exposure resulting from such transactions. Since the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. At June 30, 2013, the Bancorp had 14 interest rate swaps with an aggregate notional amount of $88.2 million related to this program.

Fair Value of Derivative Instruments on the Balance Sheet

The following table presents the fair value of the Bancorp’s derivative financial instruments as well as the classification on the balance sheet.

	Fair Value of Derivative Instruments June 30, 2013
	Asset Derivatives			Liability Derivatives
	Balance sheet location	Fair value		Balance sheet location	Fair value
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other assets	$	1,919	Other liabilities	$	1,868

Effect of Derivative Instruments on Comprehensive Income

The following table presents the effect of the Bancorp’s derivative financial instruments on comprehensive income for the three and six months ended June 30, 2013.

	Effect of Derivative Instruments on Comprehensive Income Three Months Ended June 30, 2013
	Location of gain recognized in income on derivatives	Amount of gain recognized in income on derivatives
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other non-interest income	$	155

	Effect of Derivative Instruments on Comprehensive Income Six Months Ended June 30, 2013
	Location of gain recognized in income on derivatives	Amount of gain recognized in income on derivatives
	(dollars in thousands)
Derivatives not designated as hedging instruments
Interest rate products	Other non-interest income	$	198

Credit-risk-related Contingent Features

By entering into derivative contracts, the Bank is exposed to credit risk. The credit risk associated with derivatives executed with Bank 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, the Bancorp only enters into agreements with those that maintain credit ratings of high quality.

Agreements with major derivative dealer counterparties contain provisions whereby default on any of the Bancorp’s indebtedness would be considered a default on its derivative obligations. The Bancorp also has entered into agreements that contain provisions under which the counterparty could require the Bancorp to settle its obligations if the Bancorp fails to maintain its status as a well/adequately-capitalized institution. As of June 30, 2013, the termination value of derivatives in a net liability position (which includes accrued interest but excludes any adjustment for nonperformance-risk) related to these agreements was $1.7 million. In addition, the Bancorp has minimum collateral posting thresholds with certain of these counterparties, and at June 30, 2013 had posted $2.5 million as collateral.

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 06, 2013 Voting Common Stock [Member]	Aug. 06, 2013 Class B Non-Voting Common Stock [Member]
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	CUBI
Entity Registrant Name	Customers Bancorp, Inc.
Entity Central Index Key	0001488813
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		19,970,122	4,691,897

XML

Disclosures about Offsetting Assets and Liabilities

6 Months Ended

Jun. 30, 2013

Text Block [Abstract]

Disclosures about Offsetting Assets and Liabilities

NOTE 13 — DISCLOSURES ABOUT OFFSETTING ASSETS AND LIABILITIES

The following tables present derivative instruments that are subject to enforceable master netting arrangements. The Bancorp has not made a policy election to offset its derivative positions.

Offsetting of Financial Assets and Derivative Assets For the Six Months Ended June 30, 2013
							Gross amounts not offset in the consolidated balance sheet
	Gross amount of recognized assets		Gross amounts offset in the consolidated balance sheet		Net amounts of assets presented in the consolidated balance sheet		Financial instruments		Cash collateral received		Net amount
	(dollars in thousands)
Description
Interest rate derivatives with institutional counterparties	$	208	$	0	$	208	$	208	$	0	$	0
Offsetting of Financial Liabilities and Derivative Liabilities For the Six Months Ended June 30, 2013
							Gross amounts not offset in the consolidated balance sheet
	Gross amount of recognized liabilities		Gross amounts offset in the consolidated balance sheet		Net amounts of liabilities presented in the consolidated balance sheet		Financial instruments		Cash collateral pledged		Net amount
	(dollars in thousands)
Description
Interest rate derivatives with institutional counterparties	$	1,720	$	0	$	1,720	$	208	$	1,512	$	0

XML

Regulatory Matters - Summary of Capital Amounts and Ratios (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Customers Bancorp, Inc. [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk weighted assets), Actual Amount	$ 406,314	$ 289,035
Tier 1 capital (to risk weighted assets), Actual Amount	377,617	262,719
Tier 1 capital (to average assets), Actual Amount	377,617	262,719
Total capital (to risk weighted assets), Actual Ratio	13.32%	11.26%
Tier 1 capital (to risk weighted assets), Actual Ratio	12.38%	10.23%
Tier 1 capital (to average assets), Actual Ratio	11.20%	9.30%
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount	244,036	205,443
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount	122,018	102,722
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount	134,895	112,939
Total capital (to risk weighted assets), for Capital Adequacy Purposes Ratio	8.00%	8.00%
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 capital (to average assets), For Capital Adequacy Purposes Ratio	4.00%	4.00%
Customers Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total capital (to risk weighted assets), Actual Amount	378,972	244,710
Tier 1 capital (to risk weighted assets), Actual Amount	350,275	218,394
Tier 1 capital (to average assets), Actual Amount	350,275	218,394
Total capital (to risk weighted assets), Actual Ratio	12.43%	9.53%
Tier 1 capital (to risk weighted assets), Actual Ratio	11.49%	8.50%
Tier 1 capital (to average assets), Actual Ratio	10.39%	7.74%
Total capital (to risk weighted assets), For Capital Adequacy Purposes Amount	243,915	205,442
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Amount	121,958	102,721
Tier 1 capital (to average assets), For Capital Adequacy Purposes Amount	134,845	112,896
Total capital (to risk weighted assets), for Capital Adequacy Purposes Ratio	8.00%	8.00%
Tier 1 capital (to risk weighted assets), For Capital Adequacy Purposes Ratio	4.00%	4.00%
Tier 1 capital (to average assets), For Capital Adequacy Purposes Ratio	4.00%	4.00%
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	304,894	256,802
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	182,937	154,081
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 168,556	$ 141,120
Total capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	10.00%	10.00%
Tier 1 capital (to risk weighted assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	6.00%	6.00%
Tier 1 capital (to average assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio	5.00%	5.00%

XML

Regulatory Matters - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2013
Disclosure Regulatory Matters [Abstract]
Maximum limit above the national rate for the interest rate paid for deposits	0.75%