Borrowings

6 Months Ended

Jun. 30, 2020

BORROWINGS

Short-term debt

Short-term debt at June 30, 2020 and December 31, 2019 was as follows:


	June 30, 2020						December 31, 2019
(dollars in thousands)	Amount		Rate		Amount		Rate

FHLB advances	$	850,000	1.48	%	$	500,000	2.15	%
Federal funds purchased	—		—	%	538,000		1.60	%
Total short-term debt	$	850,000			$	1,038,000

The following is a summary of additional information relating to Customers' short-term debt:



	June 30, 2020			December 31, 2019
(dollars in thousands)
FHLB advances
Maximum outstanding at any month end	$	910,000		$	1,190,150
Average balance during the year	667,212			793,304
Weighted-average interest rate during the year	0.89		%	2.66		%
Federal funds purchased
Maximum outstanding at any month end	842,000			600,000
Average balance during the year	379,549			271,400
Weighted-average interest rate during the year	0.21		%	2.28		%

At June 30, 2020 and December 31, 2019, Customers Bank had aggregate availability under federal funds lines totaling $1.2 billion and $0.6 billion, respectively.

Long-term debt

FHLB and FRB advances

Long-term FHLB and FRB advances at June 30, 2020 and December 31, 2019 were as follows:



	June 30, 2020						December 31, 2019
(dollars in thousands)	Amount		Rate		Amount		Rate

FHLB advances	$	—	0.00	%	$	350,000	2.36	%
FRB PPP Liquidity Facility advances	4,419,967		0.35	%	—		—	%
Total long-term FHLB and FRB advances	$	4,419,967			$	350,000

Beginning in second quarter 2020, Customers began participating in the PPPLF, in which Federal Reserve Banks extend non-recourse loans to institutions that are eligible to make PPP loans. Only PPP loans that are guaranteed by the SBA under the PPP, with respect to both principal and interest that are originated by an eligible institution, may be pledged as collateral to the Federal Reserve Banks.

The maximum borrowing capacity with the FHLB and FRB at June 30, 2020 and December 31, 2019 was as follows:



(amounts in thousands)	June 30, 2020		December 31, 2019
Total maximum borrowing capacity with the FHLB	$	2,958,717	$	3,445,416
Total maximum borrowing capacity with the FRB ⁽¹⁾	152,410		136,842
Qualifying loans serving as collateral against FHLB and FRB advances	3,814,247		4,496,983

(1) Amounts reported in the above table exclude borrowings under the PPPLF, which are limited to the face value of the loans originated under the PPP. At June 30, 2020, Customers had $4.4 billion of borrowings under the PPPLF, with a borrowing capacity of up to $4.8 billion, which is the face value of the qualifying loans Customers has originated under the PPP.

Senior and Subordinated Debt

Long-term senior notes and subordinated debt at June 30, 2020 and December 31, 2019 were as follows:


		June 30, 2020		December 31, 2019
(dollars in thousands)
Issued by	Ranking	Amount		Amount		Rate			Issued Amount		Date Issued	Maturity	Price
Customers Bancorp	Senior	$	24,492	$	24,432	4.500		%	$	25,000	September 2019	September 2024	100.000	%
Customers Bancorp	Senior	99,341		99,198		3.950		%	100,000		June 2017	June 2022	99.775	%

Total other borrowings		123,833		123,630

Customers Bancorp	Subordinated ⁽¹⁾⁽²⁾	72,131		72,040		5.375		%	74,750		December 2019	December 2034	100.000	%
Customers Bank	Subordinated ⁽¹⁾⁽³⁾	109,124		109,075		6.125		%	110,000		June 2014	June 2029	100.000	%
Total subordinated debt				$	181,255	$	181,115

(1)The subordinated notes qualify as Tier 2 capital for regulatory capital purposes.

(2)Customers Bancorp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2029.

(3)The subordinated notes will bear an annual fixed rate of 6.125% until June 26, 2024. From June 26, 2024 until maturity, the notes will bear an annual interest rate equal to the three-month LIBOR plus 344.3 basis points. Customers Bank has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after June 26, 2024.