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Business Segments
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
Customers' segment financial reporting reflects the manner in which its chief operating decision makers allocate resources and assess performance. Management has determined that Customers' operations consist of two reportable segments - Customers Bank Business Banking and BankMobile. Each segment generates revenues, manages risk, and offers distinct products and services to targeted customers through different delivery channels. The strategy, marketing and analysis of these segments vary considerably.
The Customers Bank Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island, New Hampshire, Washington, D.C., and Illinois through a single-point-of-contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Lending and deposit gathering activities are focused primarily on privately held businesses, high-net-worth families, selected commercial real estate lending, commercial mortgage companies and equipment finance. Revenues are generated primarily through net interest income (the difference between interest earned on loans and leases, investments, and other interest earning assets and interest paid on deposits and other borrowed funds) and other non-interest income, such as mortgage warehouse transactional fees and BOLI.
The BankMobile segment provided state-of-the-art high-tech digital banking and disbursement services to consumers, students, and the "under banked" nationwide, along with "Banking as a Service" offerings with white label partners. BankMobile was a full-service fintech banking platform that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Revenues were generated primarily through interest income on consumer installment loans, interchange and card revenue, deposit and wire transfer fees and university fees. The majority of expenses for BankMobile were related to the segment's operation of the ongoing business acquired through the Disbursement business acquisition and costs associated with the development of white label products for its partners.
The following tables present the operating results for Customers' reportable business segments for the years ended December 31, 2020, 2019 and 2018. The segment financial results include directly attributable revenues and expenses. Consistent with the presentation of segment results to Customers' chief operating decision makers, overhead costs and preferred stock dividends are assigned to the Customers Bank Business Banking segment. The tax benefit assigned to BankMobile was based on an estimated effective tax rate of 24.18%, 22.55% and 24.56% for the years ended December 31, 2020, 2019 and 2018, respectively.
For the Year Ended December 31, 2020
(amounts in thousands)Customers Bank Business BankingBankMobileConsolidated
Interest income (1)
$490,028 $53,276 $543,304 
Interest expense 137,480 2,136 139,616 
Net interest income352,548 51,140 403,688 
Provision for credit losses on loans and leases51,708 11,066 62,774 
Non-interest income 57,834 43,900 101,734 
Non-interest expense 187,153 79,537 266,690 
Income before income tax expense171,521 4,437 175,958 
Income tax expense42,307 1,073 43,380 
Net income129,214 3,364 132,578 
Preferred stock dividends14,041 — 14,041 
Net income available to common shareholders$115,173 $3,364 $118,537 
As of December 31, 2020
Goodwill and other intangibles$3,629 $10,669 $14,298 
Total assets (2)
$17,821,665 $617,583 $18,439,248 
Total deposits$10,350,028 $959,901 $11,309,929 
Total non-deposit liabilities (2)
$5,982,010 $30,223 $6,012,233 
(1)Amounts reported include funds transfer pricing of $9.3 million for the year ended December 31, 2020, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no-cost deposits.
(2)Amounts reported exclude inter-segment receivables/payables.
For the Year Ended December 31, 2019
(amounts in thousands)Customers Bank Business BankingBankMobileConsolidated
Interest income (1)
$422,094 $41,645 $463,739 
Interest expense 185,513 916 186,429 
Net interest income236,581 40,729 277,310 
Provision for credit losses on loans and leases10,091 14,136 24,227 
Non-interest income 35,268 45,670 80,938 
Non-interest expense153,333 78,568 231,901 
Income (loss) before income tax expense (benefit)108,425 (6,305)102,120 
Income tax expense (benefit)24,215 (1,422)22,793 
Net income (loss)84,210 (4,883)79,327 
Preferred stock dividends14,459 — 14,459 
Net income (loss) available to common shareholders$69,751 $(4,883)$64,868 
As of December 31, 2019
Goodwill and other intangibles$3,629 $11,566 $15,195 
Total assets (2)
$10,990,550 $530,167 $11,520,717 
Total deposits$8,247,836 $401,100 $8,648,936 
Total non-deposit liabilities (2)
$1,789,329 $29,657 $1,818,986 

(1)Amounts reported include funds transfer pricing of $8.8 million for the year ended December 31, 2019, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no-cost deposits.
(2)Amounts reported exclude inter-segment receivables/payables.
For the Year Ended December 31, 2018
(amounts in thousands)Customers Bank Business BankingBankMobileConsolidated
Interest income (1)
$400,948 $17,003 $417,951 
Interest expense 159,674 400 160,074 
Net interest income241,274 16,603 257,877 
Provision for credit losses on loans and leases2,928 2,714 5,642 
Non-interest income 17,499 41,499 58,998 
Non-interest expense 146,946 73,233 220,179 
Income (loss) before income tax expense (benefit)108,899 (17,845)91,054 
Income tax expense (benefit) 23,742 (4,383)19,359 
Net income (loss)85,157 (13,462)71,695 
Preferred stock dividends14,459 — 14,459 
Net income (loss) available to common shareholders$70,698 $(13,462)$57,236 
As of December 31, 2018
Goodwill and other intangibles$3,629 $12,870 $16,499 
Total assets (2)
$9,688,146 $145,279 $9,833,425 
Total deposits$6,766,378 $375,858 $7,142,236 
Total non-deposit liabilities (2)
$1,719,225 $15,148 $1,734,373 
(1)Amounts reported include funds transfer pricing of $15.7 million for the year ended December 31, 2018, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no-cost deposits.
(2)Amounts reported exclude inter-segment receivables/payables.