Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||
For the quarterly period ended |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||
For the transition period from to . |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Title of Each Class | Trading Symbols | Name of Each Exchange on which Registered | ||||||||||||
Preferred Stock, Series E, par value $1.00 per share | ||||||||||||||
Preferred Stock, Series F, par value $1.00 per share | ||||||||||||||
x | Accelerated Filer | ☐ | ||||||||||||||||||
Non-accelerated filer | o | Smaller Reporting Company | ||||||||||||||||||
Emerging Growth Company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | o |
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
ACL | Allowance for credit losses | ||||
AFS | Available for sale | ||||
ASC | Accounting Standards Codification | ||||
AOCI | Accumulated other comprehensive income (loss) | ||||
ASU | Accounting Standards Update | ||||
ATM | Automated teller machine | ||||
Bancorp | Customers Bancorp, Inc. | ||||
Bank | Customers Bank | ||||
BBB spread | BBB rated corporate bond spreads to U.S. Treasury securities | ||||
BMT | BankMobile Technologies, Inc. | ||||
BM Technologies | BM Technologies, Inc. | ||||
BOLI | Bank-owned life insurance | ||||
CAA | Consolidated Appropriations Act, 2021 | ||||
CARES Act | Coronavirus Aid, Relief and Economic Security Act | ||||
CBITTM | Customers Bank Instant Token | ||||
CCF | Customers Commercial Finance, LLC | ||||
CECL | Current expected credit losses | ||||
Commission | U.S. Securities and Exchange Commission | ||||
Company | Customers Bancorp, Inc. and subsidiaries | ||||
COVID-19 | Coronavirus Disease 2019 | ||||
CPI | Consumer Price Index | ||||
CRA | Community Reinvestment Act | ||||
CUBI | Symbol for Customers Bancorp, Inc. common stock traded on the NYSE | ||||
Customers | Customers Bancorp, Inc. and Customers Bank, collectively | ||||
Customers Bancorp | Customers Bancorp, Inc. | ||||
DCF | Discounted cash flow | ||||
Disbursement Business | One Account Student Checking and Refund Management Disbursement Services Business | ||||
ED | U.S. Department of Education | ||||
EPS | Earnings per share | ||||
EVE | Economic value of equity | ||||
Exchange Act | Securities Exchange Act of 1934 | ||||
FDIC | Federal Deposit Insurance Corporation | ||||
Fed Funds | Federal Reserve Board's Effective Federal Funds Rate | ||||
Federal Reserve Board | Board of Governors of the Federal Reserve System | ||||
FHLB | Federal Home Loan Bank | ||||
FICO | Fair, Isaac and Company | ||||
Fintech | Third-Party Financial Technology | ||||
FMV | Fair Market Value | ||||
FPRD | Final Program Review Determination | ||||
FRB | Federal Reserve Bank of Philadelphia | ||||
GDP | Gross domestic product | ||||
Higher One | Higher One Holdings, Inc. | ||||
LIBOR | London Interbank Offered Rate | ||||
LPO | Limited Purpose Office | ||||
MFAC | Megalith Financial Acquisition Corp. | ||||
MMDA | Money market deposit accounts | ||||
NIM | Net interest margin, tax equivalent | ||||
NM | Not meaningful | ||||
NPA | Non-performing asset | ||||
NPL | Non-performing loan | ||||
NYSE | New York Stock Exchange | ||||
OCI | Other comprehensive income (loss) | ||||
OREO | Other real estate owned | ||||
PCD | Purchased Credit-Deteriorated | ||||
PPP | Paycheck Protection Program | ||||
PPPLF | FRB Paycheck Protection Program Liquidity Facility | ||||
PUT | Purchase Upon Termination | ||||
Rate Shocks | Interest rates rising or falling immediately | ||||
ROU | Right-of-use | ||||
SBA | U.S. Small Business Administration | ||||
SBA loans | Loans originated pursuant to the rules and regulations of the SBA | ||||
SEC | U.S. Securities and Exchange Commission | ||||
Securities Act | Securities Act of 1933, as amended | ||||
Series C Preferred Stock | Fixed-to-floating rate non-cumulative perpetual preferred stock, series C | ||||
Series D Preferred Stock | Fixed-to-floating rate non-cumulative perpetual preferred stock, series D | ||||
Series E Preferred Stock | Fixed-to-floating rate non-cumulative perpetual preferred stock, series E | ||||
Series F Preferred Stock | Fixed-to-floating rate non-cumulative perpetual preferred stock, series F | ||||
SERP | Supplemental Executive Retirement Plan | ||||
Share Repurchase Program | Share repurchase program authorized by the Board of Directors of Customers Bancorp in 2021 | ||||
SOFR | Secured Overnight Financing Rate | ||||
TDR | Troubled debt restructuring | ||||
TRAC | Terminal Rental Adjustment Clause | ||||
U.S. GAAP | Accounting principles generally accepted in the United States of America | ||||
VIE | Variable interest entity | ||||
VOE | Voting interest entity | ||||
March 31, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | $ | |||||||||
Interest earning deposits | |||||||||||
Cash and cash equivalents | |||||||||||
Investment securities, at fair value (includes allowance for credit losses of $ | |||||||||||
Loans held for sale (includes $ | |||||||||||
Loans receivable, mortgage warehouse, at fair value | |||||||||||
Loans receivable, PPP | |||||||||||
Loans and leases receivable | |||||||||||
Allowance for credit losses on loans and leases | ( | ( | |||||||||
Total loans and leases receivable, net of allowance for credit losses on loans and leases | |||||||||||
FHLB, Federal Reserve Bank, and other restricted stock | |||||||||||
Accrued interest receivable | |||||||||||
Bank premises and equipment, net | |||||||||||
Bank-owned life insurance | |||||||||||
Goodwill and other intangibles | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Liabilities: | |||||||||||
Deposits: | |||||||||||
Demand, non-interest bearing | $ | $ | |||||||||
Interest bearing | |||||||||||
Total deposits | |||||||||||
Federal funds purchased | |||||||||||
FHLB advances | |||||||||||
Other borrowings | |||||||||||
Subordinated debt | |||||||||||
Accrued interest payable and other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (NOTE 15) | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive income (loss), net | ( | ( | |||||||||
Treasury stock, at cost ( | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Interest income: | |||||||||||
Loans and leases | $ | $ | |||||||||
Investment securities | |||||||||||
Other | |||||||||||
Total interest income | |||||||||||
Interest expense: | |||||||||||
Deposits | |||||||||||
FHLB advances | |||||||||||
Subordinated debt | |||||||||||
FRB PPP liquidity facility, federal funds purchased and other borrowings | |||||||||||
Total interest expense | |||||||||||
Net interest income | |||||||||||
Provision (benefit) for credit losses | ( | ||||||||||
Net interest income after provision (benefit) for credit losses | |||||||||||
Non-interest income: | |||||||||||
Interchange and card revenue | |||||||||||
Deposit fees | |||||||||||
Commercial lease income | |||||||||||
Bank-owned life insurance | |||||||||||
Mortgage warehouse transactional fees | |||||||||||
Gain (loss) on sale of SBA and other loans | |||||||||||
Loan fees | |||||||||||
Mortgage banking income | |||||||||||
Gain (loss) on sale of investment securities | ( | ||||||||||
Unrealized gain (loss) on investment securities | ( | ||||||||||
Unrealized gain (loss) on derivatives | |||||||||||
Loss on cash flow hedge derivative terminations | ( | ||||||||||
Other | ( | ||||||||||
Total non-interest income | |||||||||||
Non-interest expense: | |||||||||||
Salaries and employee benefits | |||||||||||
Technology, communication and bank operations | |||||||||||
Professional services | |||||||||||
Occupancy | |||||||||||
Commercial lease depreciation | |||||||||||
FDIC assessments, non-income taxes and regulatory fees | |||||||||||
Loan servicing | |||||||||||
Advertising and promotion | |||||||||||
Merger and acquisition related expenses | |||||||||||
Loan workout | ( | ( | |||||||||
Other | |||||||||||
Total non-interest expense | |||||||||||
Income before income tax expense | |||||||||||
Income tax expense | |||||||||||
Net income from continuing operations | $ | $ | |||||||||
(continued) | |||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Loss from discontinued operations before income taxes | $ | $ | ( | ||||||||
Income tax expense from discontinued operations | |||||||||||
Net loss from discontinued operations | ( | ||||||||||
Net income | |||||||||||
Preferred stock dividends | |||||||||||
Net income available to common shareholders | $ | $ | |||||||||
Basic earnings per common share from continuing operations | $ | $ | |||||||||
Basic earnings per common share | |||||||||||
Diluted earnings per common share from continuing operations | |||||||||||
Diluted earnings per common share |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income | $ | $ | |||||||||
Unrealized gains (losses) on available for sale debt securities: | |||||||||||
Unrealized gains (losses) arising during the period | ( | ||||||||||
Income tax effect | ( | ||||||||||
Reclassification adjustments for (gains) losses included in net income | ( | ||||||||||
Income tax effect | ( | ||||||||||
Net unrealized gains (losses) on available for sale debt securities | ( | ( | |||||||||
Unrealized gains (losses) on cash flow hedges: | |||||||||||
Unrealized gains (losses) arising during the period | |||||||||||
Income tax effect | ( | ||||||||||
Reclassification adjustment for (gains) losses included in net income | |||||||||||
Income tax effect | ( | ||||||||||
Net unrealized gains (losses) on cash flow hedges | |||||||||||
Other comprehensive income (loss), net of income tax effect | ( | ||||||||||
Comprehensive income (loss) | $ | $ |
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of Preferred Stock Outstanding | Preferred Stock | Shares of Common Stock Outstanding | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends (1) | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under share-based compensation arrangements | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | — | ( | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of Preferred Stock Outstanding | Preferred Stock | Shares of Common Stock Outstanding | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock dividends (1) | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Sale of non-controlling interest in BMT (2) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Distribution of investment in BM Technologies (3) | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock awards to certain BMT team members (4) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock under share-based compensation arrangements | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income from continuing operations | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) by continuing operating activities: | |||||||||||
Provision (benefit) for credit losses | ( | ||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation expense | |||||||||||
Deferred taxes | ( | ( | |||||||||
Net amortization (accretion) of investment securities premiums and discounts | ( | ||||||||||
Unrealized (gain) loss on investment securities | ( | ||||||||||
(Gain) loss on sale of investment securities | ( | ||||||||||
Unrealized (gain) loss on derivatives | ( | ( | |||||||||
Loss on cash flow hedge derivative terminations | |||||||||||
Settlement of terminated cash flow hedge derivatives | ( | ||||||||||
Fair value adjustment on loans held for sale | ( | ||||||||||
(Gain) loss on sale of loans | ( | ( | |||||||||
Origination of loans held for sale | ( | ( | |||||||||
Proceeds from the sale of loans held for sale | |||||||||||
Amortization (accretion) of loan net deferred fees, discounts and premiums | ( | ( | |||||||||
Earnings on investment in bank-owned life insurance | ( | ( | |||||||||
(Increase) decrease in accrued interest receivable and other assets | |||||||||||
Increase (decrease) in accrued interest payable and other liabilities | ( | ||||||||||
Net Cash Provided By (Used In) Continuing Operating Activities | |||||||||||
Cash Flows from Investing Activities | |||||||||||
Proceeds from maturities, calls and principal repayments of investment securities | |||||||||||
Proceeds from sales of investment securities available for sale | |||||||||||
Purchases of investment securities available for sale | ( | ( | |||||||||
Origination of mortgage warehouse loans | ( | ( | |||||||||
Proceeds from repayments of mortgage warehouse loans | |||||||||||
Net (increase) decrease in loans and leases, excluding mortgage warehouse loans | ( | ||||||||||
Proceeds from sales of loans and leases | |||||||||||
Purchase of loans | ( | ( | |||||||||
Proceeds from bank-owned life insurance | |||||||||||
Net proceeds from sale of FHLB, Federal Reserve Bank, and other restricted stock | |||||||||||
Purchases of bank premises and equipment | ( | ( | |||||||||
Purchases of leased assets under lessor operating leases | ( | ( | |||||||||
Net Cash Provided By (Used In) Continuing Investing Activities | ( | ||||||||||
Cash Flows from Financing Activities | |||||||||||
Net increase (decrease) in deposits | ( | ||||||||||
Net increase (decrease) in short-term borrowed funds from the FHLB | ( | ||||||||||
Net increase (decrease) in federal funds purchased | |||||||||||
Net increase (decrease) in borrowed funds from FRB PPP liquidity facility | ( | ||||||||||
Preferred stock dividends paid | ( | ( | |||||||||
Purchase of treasury stock | ( | ||||||||||
Payments of employee taxes withheld from share-based awards | ( | ( | |||||||||
Proceeds from issuance of common stock | |||||||||||
Proceeds from sale of non-controlling interest in BMT | |||||||||||
Net Cash Provided By (Used In) Continuing Financing Activities | ( | ||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents From Continuing Operations | $ | ( | $ | ( | |||||||
Discontinued Operations: | |||||||||||
Net Cash Used In Operating Activities | $ | $ | ( | ||||||||
Net Increase (Decrease) in Cash and Cash Equivalents From Discontinued Operations | ( | ||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | ( | ( | |||||||||
Cash and Cash Equivalents – Beginning | |||||||||||
Cash and Cash Equivalents – Ending | $ | $ | |||||||||
(continued) | |||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Non-cash Investing and Financing Activities: | |||||||||||
Distribution of investment in BM Technologies common stock | $ | $ | |||||||||
Transfer of loans held for investment to held for sale | |||||||||||
Unsettled purchases of investment securities | |||||||||||
Standard | Summary of Guidance | Effects on Financial Statements | ||||||||||||
ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity Issued August 2020 | • Provides for simplified accounting for convertible debt instruments by eliminating separation models in ASC 470-20 for convertible debt instruments with a cash conversion feature, or another beneficial conversion feature. • Removes the requirements to consider whether a contract would be settled in registered shares, to consider whether collateral is required to be posted and to assess shareholders rights upon conversion. • Effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. | • Customers adopted this guidance on January 1, 2022. • The adoption of this guidance did not have any impact on Customers' financial condition, results of operations and consolidated financial statements. | ||||||||||||
ASU 2021-05, Leases (Topic 842): Lessors - Certain Leases with Variable Lease Payments Issued July 2021 | • Provides updates for accounting for leases with variable lease payments under ASC 842. • Allows for variable lease payments which are 1) not driven by a reference rate and 2) not dependent upon an estimate to be included within consideration or the investment in a lease at the inception of a sales-type or direct financing lease. • Effective for fiscal years beginning after December 15, 2021 and interim periods within those fiscal years. Early adoption is permitted. | • Customers adopted this guidance on January 1, 2022. • The adoption of this guidance did not have any impact on Customers' financial condition, results of operations and consolidated financial statements. | ||||||||||||
Standard | Summary of Guidance | Effects on Financial Statements | ||||||||||||
ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures Issued March 2022 | • Eliminates the accounting guidance for TDRs by creditors, and applies the loan refinancing and restructuring guidance when a borrower is experiencing financial difficulty to determine whether a modification results in a new loan or a continuation of an existing loan. • Provides enhanced disclosure requirements for certain loan refinancing and restructurings and disclosure of current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326. • Effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, provided the amendments are adopted as of the beginning of the fiscal year that includes the interim period of adoption. Early adoption is permitted separately for the amendments to TDRs and vintage disclosures. • TDR and vintage disclosures are to be adopted prospectively. An entity may adopt TDR recognition and measurement guidance prospectively or elect to use a modified retrospective transition method, with a cumulative effect adjustment to retained earnings at the beginning of the period of adoption. | • Customers expects this guidance will result in additional disclosures related to gross write-offs by vintage year and expansive disclosures for certain loan modifications to borrowers experiencing financial difficulty. • Customers intends to adopt this guidance during adoption period and is currently evaluating the expected impact of this guidance on its financial condition, results of operations and consolidated financial statements. | ||||||||||||
Three Months Ended March 31, | ||||||||||||||
(amounts in thousands) | 2022 | 2021 | ||||||||||||
Discontinued operations: | ||||||||||||||
Non-interest income | $ | $ | ||||||||||||
Non-interest expense | ||||||||||||||
Loss from discontinued operations before income taxes | ( | |||||||||||||
Income tax expense (benefit) | ||||||||||||||
Net loss from discontinued operations | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
(amounts in thousands, except share and per share data) | 2022 | 2021 | |||||||||
Net income from continuing operations available to common shareholders | $ | $ | |||||||||
Net loss from discontinued operations | ( | ||||||||||
Net income available to common shareholders | $ | $ | |||||||||
Weighted-average number of common shares outstanding – basic | |||||||||||
Share-based compensation plans | |||||||||||
Weighted-average number of common shares – diluted | |||||||||||
Basic earnings (loss) per common share from continuing operations | $ | $ | |||||||||
Basic earnings (loss) per common share from discontinued operations | ( | ||||||||||
Basic earnings (loss) per common share | |||||||||||
Diluted earnings (loss) per common share from continuing operations | $ | $ | |||||||||
Diluted earnings (loss) per common share from discontinued operations | ( | ||||||||||
Diluted earnings (loss) per common share |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Anti-dilutive securities: | |||||||||||
Share-based compensation awards | |||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||
(amounts in thousands) | Unrealized Gains (Losses) on Available for Sale Securities (1) | Unrealized Gains (Losses) on Cash Flow Hedges (2) | Total | ||||||||||||||
Balance - December 31, 2021 | $ | ( | $ | $ | ( | ||||||||||||
Unrealized gains (losses) arising during period, before tax | ( | ( | |||||||||||||||
Income tax effect | |||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||
Reclassification adjustments for (gains) losses included in net income, before tax | |||||||||||||||||
Income tax effect | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | |||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ( | |||||||||||||||
Balance - March 31, 2022 | $ | ( | $ | $ | ( |
Three Months Ended March 31, 2021 | |||||||||||||||||
(amounts in thousands) | Unrealized Gains (Losses) on Available for Sale Securities (1) | Unrealized Gains (Losses) on Cash Flow Hedges (2) | Total | ||||||||||||||
Balance - December 31, 2020 | $ | $ | ( | $ | ( | ||||||||||||
Unrealized gains (losses) arising during period, before tax | |||||||||||||||||
Income tax effect | ( | ( | ( | ||||||||||||||
Other comprehensive income (loss) before reclassifications | |||||||||||||||||
Reclassification adjustments for (gains) losses included in net income, before tax | ( | ||||||||||||||||
Income tax effect | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) to net income | ( | ||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ||||||||||||||||
Balance - March 31, 2021 | $ | $ | ( | $ |
March 31, 2022 (1) | |||||||||||||||||||||||||||||
(amounts in thousands) | Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||
Agency-guaranteed residential mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Agency-guaranteed commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Agency-guaranteed residential collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||
Agency-guaranteed commercial collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||
Collateralized loan obligations | ( | ||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||||||||
Corporate notes (2) | ( | ||||||||||||||||||||||||||||
Private label collateralized mortgage obligations | ( | ||||||||||||||||||||||||||||
State and political subdivision debt securities (3) | ( | ||||||||||||||||||||||||||||
Available for sale debt securities | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||
Equity securities (4) | |||||||||||||||||||||||||||||
Total investment securities, at fair value | $ |
December 31, 2021 (1) | |||||||||||||||||||||||
(amounts in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||
Asset-backed securities | $ | $ | $ | ( | $ | ||||||||||||||||||
Agency-guaranteed residential mortgage-backed securities | ( | ||||||||||||||||||||||
Agency-guaranteed commercial mortgage-backed securities | ( | ||||||||||||||||||||||
Agency-guaranteed residential collateralized mortgage obligations | ( | ||||||||||||||||||||||
Agency-guaranteed commercial collateralized mortgage obligations | ( | ||||||||||||||||||||||
Collateralized loan obligations | ( | ||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ||||||||||||||||||||||
Corporate notes (2) | ( | ||||||||||||||||||||||
Private label collateralized mortgage obligations | ( | ||||||||||||||||||||||
State and political subdivision debt securities (3) | ( | ||||||||||||||||||||||
Available for sale debt securities | $ | $ | $ | ( | |||||||||||||||||||
Equity securities (4) | |||||||||||||||||||||||
Total investment securities, at fair value | $ |
March 31, 2022 | |||||||||||
(amounts in thousands) | Amortized Cost | Fair Value | |||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due after five years through ten years | |||||||||||
Asset-backed securities | |||||||||||
Collateralized loan obligations | |||||||||||
Commercial mortgage-backed securities | |||||||||||
Agency-guaranteed residential mortgage-backed securities | |||||||||||
Agency-guaranteed commercial mortgage-backed securities | |||||||||||
Agency-guaranteed residential collateralized mortgage obligations | |||||||||||
Agency-guaranteed commercial collateralized mortgage obligations | |||||||||||
Private label collateralized mortgage obligations | |||||||||||
Total debt securities | $ | $ |
March 31, 2022 | |||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
(amounts in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Agency-guaranteed residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Agency-guaranteed commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Agency-guaranteed residential collateralized mortgage obligations | ( | ( | |||||||||||||||||||||||||||||||||
Agency-guaranteed commercial collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
Collateralized loan obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Corporate notes | ( | ( | ( | ||||||||||||||||||||||||||||||||
Private label collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
State and political subdivision debt securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
(amounts in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||||||||||||||
Asset-backed securities | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Agency-guaranteed residential mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Agency-guaranteed commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Agency-guaranteed residential collateralized mortgage obligations | ( | ( | |||||||||||||||||||||||||||||||||
Agency-guaranteed commercial collateralized mortgage obligations | ( | ( | |||||||||||||||||||||||||||||||||
Collateralized loan obligations | ( | ( | |||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | ( | ( | |||||||||||||||||||||||||||||||||
Corporate notes | ( | ( | |||||||||||||||||||||||||||||||||
Private label collateralized mortgage obligations | ( | ( | ( | ||||||||||||||||||||||||||||||||
State and political subdivision debt securities | ( | ( | |||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
Asset-backed securities | |||||
(amounts in thousands) | Three Months Ended March 31, 2022 | ||||
Balance at January 1, | $ | ||||
Credit losses on securities for which credit losses were not previously recorded | |||||
Balance at March 31, | $ |
(amounts in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Consumer loans: | |||||||||||
Home equity conversion mortgages, at lower of cost or fair value | $ | $ | |||||||||
Residential mortgage loans, at fair value | |||||||||||
Total consumer loans held for sale | |||||||||||
Loans held for sale | $ | $ |
(amounts in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Loans and leases receivable, mortgage warehouse, at fair value | $ | $ | |||||||||
Loans receivable, PPP | |||||||||||
Loans and leases receivable: | |||||||||||
Commercial: | |||||||||||
Multi-family | |||||||||||
Commercial and industrial (1) | |||||||||||
Commercial real estate owner occupied | |||||||||||
Commercial real estate non-owner occupied | |||||||||||
Construction | |||||||||||
Total commercial loans and leases receivable | |||||||||||
Consumer: | |||||||||||
Residential real estate | |||||||||||
Manufactured housing | |||||||||||
Installment | |||||||||||
Total consumer loans receivable | |||||||||||
Loans and leases receivable | |||||||||||
Allowance for credit losses on loans and leases | ( | ( | |||||||||
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2) | $ | $ |
March 31, 2022 | |||||||||||||||||||||||||||||||||||
(amounts in thousands) | 30-59 Days past due (1) | 60-89 Days past due (1) | 90 Days or more past due (1) | Total past due (1) | Loans and leases not past due (2) | Total loans and leases (3) | |||||||||||||||||||||||||||||
Multi-family | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | |||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Manufactured housing | |||||||||||||||||||||||||||||||||||
Installment | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
December 31, 2021 | |||||||||||||||||||||||||||||||||||
(amounts in thousands) | 30-59 Days past due (1) | 60-89 Days past due (1) | 90 Days or more past due (1) | Total past due (1) | Loans and leases not past due (2) | Total loans and leases (3) | |||||||||||||||||||||||||||||
Multi-family | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | |||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | |||||||||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Manufactured housing | |||||||||||||||||||||||||||||||||||
Installment | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
March 31, 2022 (1) | December 31, 2021 (1) | ||||||||||||||||||||||||||||||||||
(amounts in thousands) | Nonaccrual loans with no related allowance | Nonaccrual loans with related allowance | Total nonaccrual loans | Nonaccrual loans with no related allowance | Nonaccrual loans with related allowance | Total nonaccrual loans | |||||||||||||||||||||||||||||
Multi-family | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | |||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | |||||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||||
Manufactured housing | |||||||||||||||||||||||||||||||||||
Installment | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(amounts in thousands) | Multi-family | Commercial and industrial | Commercial real estate owner occupied | Commercial real estate non-owner occupied | Construction | Residential real estate | Manufactured housing | Installment | Total | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses on loans and leases | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, at December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses on loans and leases | ( | ( | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, March 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(dollars in thousands) | Number of loans | Recorded investment | Number of loans | Recorded investment | |||||||||||||||||||
Interest-rate reductions | $ | $ | |||||||||||||||||||||
Other (1) | |||||||||||||||||||||||
Total | $ | $ |
March 31, 2022 | March 31, 2021 | ||||||||||||||||||||||
(dollars in thousands) | Number of loans | Recorded investment | Number of loans | Recorded investment | |||||||||||||||||||
Manufactured housing | $ | $ | |||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
Installment | |||||||||||||||||||||||
Total loans | $ | $ |
Term Loans Amortized Cost Basis by Origination Year as of March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(amounts in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving loans amortized cost basis | Revolving loans converted to term | Total | ||||||||||||||||||||||||||||||||||||||||||||
Multi-family loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total multi-family loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans and leases: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial loans and leases | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate owner occupied loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate non-owner occupied loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total construction loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases receivable | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Manufactured housing loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total manufactured housing loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Installment loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total installment loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Loans and leases receivable | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Term Loans Amortized Cost Basis by Origination Year as of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(amounts in thousands) | 2021 | 2020 | 2019 | 2018 | 2017 | Prior | Revolving loans amortized cost basis | Revolving loans converted to term | Total | ||||||||||||||||||||||||||||||||||||||||||||
Multi-family loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total multi-family loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans and leases: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial loans and leases | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate owner occupied loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial real estate non-owner occupied loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Construction: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Special mention | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total construction loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases receivable | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Residential real estate loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total residential real estate loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Manufactured housing loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total manufactured housing loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Installment loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-performing | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total installment loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Loans and leases receivable | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
(amounts in thousands) | 2022 | 2021 | |||||||||
Purchases (1) | |||||||||||
Residential real estate | $ | $ | |||||||||
Installment (2) | |||||||||||
Total | $ | $ | |||||||||
Sales (3) | |||||||||||
Commercial and industrial | $ | $ | |||||||||
Commercial real estate owner occupied | |||||||||||
Commercial real estate non-owner occupied | |||||||||||
Total | $ | $ |
(amounts in thousands) | Classification | March 31, 2022 | December 31, 2021 | ||||||||||||||
ASSETS | |||||||||||||||||
Operating lease ROU assets | $ | $ | |||||||||||||||
LIABILITIES | |||||||||||||||||
Operating lease liabilities | $ | $ |
Three Months Ended March 31, | |||||||||||||||||
(amounts in thousands) | Classification | 2022 | 2021 | ||||||||||||||
Operating lease cost (1) | Occupancy expenses | $ | $ | ||||||||||||||
(amounts in thousands) | March 31, 2022 | ||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total minimum payments | |||||
Less: interest | |||||
Present value of lease liabilities | $ |
March 31, 2022 | December 31, 2021 | ||||||||||
Weighted average remaining lease term (years) | |||||||||||
Operating leases | | ||||||||||
Weighted average discount rate | |||||||||||
Operating leases | % | % |
(amounts in thousands) | Classification | March 31, 2022 | December 31, 2021 | ||||||||||||||
ASSETS | |||||||||||||||||
Direct financing leases | |||||||||||||||||
Lease receivables | Loans and leases receivable | $ | $ | ||||||||||||||
Guaranteed residual assets | Loans and leases receivable | ||||||||||||||||
Unguaranteed residual assets | Loans and leases receivable | ||||||||||||||||
Deferred initial direct costs | Loans and leases receivable | ||||||||||||||||
Unearned income | Loans and leases receivable | ( | ( | ||||||||||||||
Net investment in direct financing leases | $ | $ | |||||||||||||||
Operating leases | |||||||||||||||||
Investment in operating leases | Other assets | $ | $ | ||||||||||||||
Accumulated depreciation | Other assets | ( | ( | ||||||||||||||
Deferred initial direct costs | Other assets | ||||||||||||||||
Net investment in operating leases | |||||||||||||||||
Total lease assets | $ | $ | |||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
(dollars in thousands) | Amount | Rate | Amount | Rate | |||||||||||||||||||
FHLB advances | $ | % | $ | % | |||||||||||||||||||
Federal funds purchased | % | % | |||||||||||||||||||||
Total short-term debt | $ | $ |
(dollars in thousands) | March 31, 2022 (1) | December 31, 2021 (2) | |||||||||
FHLB advances | |||||||||||
Maximum outstanding at any month end | $ | $ | |||||||||
Average balance during the period | |||||||||||
Weighted-average interest rate during the period | % | % | |||||||||
Federal funds purchased | |||||||||||
Maximum outstanding at any month end | |||||||||||
Average balance during the period | |||||||||||
Weighted-average interest rate during the period | % | % |
(amounts in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Total maximum borrowing capacity with the FHLB | $ | $ | |||||||||
Total maximum borrowing capacity with the FRB (1) | |||||||||||
Qualifying loans serving as collateral against FHLB and FRB advances (1) | |||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issued by | Ranking | Carrying Amount | Carrying Amount | Rate | Issued Amount | Date Issued | Maturity | Price | ||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp | Senior (1) | $ | $ | % | $ | August 2021 | August 2031 | % | ||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp | Senior | % | September 2019 | September 2024 | % | |||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp | Senior | % | June 2017 | June 2022 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total other borrowings | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp | Subordinated (2)(3) | $ | $ | % | $ | December 2019 | December 2034 | % | ||||||||||||||||||||||||||||||||||||||||||
Customers Bank | Subordinated (2)(4) | % | June 2014 | June 2029 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total subordinated debt | $ | $ |
(amounts in thousands except share and per share data) | Shares at | Carrying value at | Initial Fixed Rate | Date at which dividend rate becomes floating and earliest redemption date | Floating rate of Three-Month LIBOR Plus: | Dividend Paid Per Share in 2022 (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed-to-floating rate: | Issue Date | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Series E | April 28, 2016 | $ | $ | % | June 15, 2021 | % | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Series F | September 16, 2016 | % | December 15, 2021 | % | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||
Totals | $ | $ |
Minimum Capital Levels to be Classified as: | |||||||||||||||||||||||||||||||||||||||||||||||
Actual | Adequately Capitalized | Well Capitalized | Basel III Compliant | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||
As of March 31, 2022: | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
As of December 31, 2021: | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | % | $ | % | N/A | N/A | $ | % | |||||||||||||||||||||||||||||||||||||||
Customers Bank | $ | % | $ | % | $ | % | $ | % |
Fair Value Measurements at March 31, 2022 | |||||||||||||||||||||||||||||
(amounts in thousands) | 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) | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Debt securities, available for sale | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Total loans and leases receivable, net of allowance for credit losses on loans and leases | |||||||||||||||||||||||||||||
FHLB, Federal Reserve Bank and other restricted stock | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds purchased | |||||||||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||||||||
Subordinated debt | |||||||||||||||||||||||||||||
Derivatives |
Fair Value Measurements at December 31, 2021 | |||||||||||||||||||||||||||||
(amounts in thousands) | 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) | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Debt securities, available for sale | |||||||||||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||||||||||
Total loans and leases receivable, net of allowance for credit losses on loans and leases | |||||||||||||||||||||||||||||
FHLB, Federal Reserve Bank and other restricted stock | |||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Deposits | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Federal funds purchased | |||||||||||||||||||||||||||||
FHLB advances | |||||||||||||||||||||||||||||
Other borrowings | |||||||||||||||||||||||||||||
Subordinated debt | |||||||||||||||||||||||||||||
Derivatives |
March 31, 2022 | |||||||||||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||||||||||
(amounts in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||
Asset-backed securities | $ | $ | $ | $ | |||||||||||||||||||
Agency-guaranteed residential mortgage-backed securities | |||||||||||||||||||||||
Agency-guaranteed commercial mortgage-backed securities | |||||||||||||||||||||||
Agency-guaranteed residential collateralized mortgage obligations | |||||||||||||||||||||||
Agency-guaranteed commercial collateralized mortgage obligations | |||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Corporate notes | |||||||||||||||||||||||
Private label collateralized mortgage obligations | |||||||||||||||||||||||
State and political subdivision debt securities | |||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Loans held for sale – fair value option | |||||||||||||||||||||||
Loans receivable, mortgage warehouse – fair value option | |||||||||||||||||||||||
Total assets – recurring fair value measurements | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | |||||||||||||||||||
Measured at Fair Value on a Nonrecurring Basis: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Collateral-dependent loans | $ | $ | $ | $ | |||||||||||||||||||
Total assets – nonrecurring fair value measurements | $ | $ | $ | $ |
December 31, 2021 | |||||||||||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||||||||||
(amounts in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | |||||||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||
Asset-backed securities | $ | $ | $ | $ | |||||||||||||||||||
Agency-guaranteed residential mortgage–backed securities | |||||||||||||||||||||||
Agency-guaranteed commercial mortgage–backed securities | |||||||||||||||||||||||
Agency-guaranteed residential collateralized mortgage obligations | |||||||||||||||||||||||
Agency-guaranteed commercial collateralized mortgage obligations | |||||||||||||||||||||||
Collateralized loan obligations | |||||||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||||||
Corporate notes | |||||||||||||||||||||||
Private label collateralized mortgage obligations | |||||||||||||||||||||||
State and political subdivision debt securities | |||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Loans held for sale – fair value option | |||||||||||||||||||||||
Loans receivable, mortgage warehouse – fair value option | |||||||||||||||||||||||
Total assets – recurring fair value measurements | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivatives | $ | $ | $ | $ | |||||||||||||||||||
Measured at Fair Value on a Nonrecurring Basis: | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Collateral-dependent loans | $ | $ | $ | $ | |||||||||||||||||||
Total assets – nonrecurring fair value measurements | $ | $ | $ | $ |
Residential Mortgage Loan Commitments | |||||||||||
Three Months Ended March 31, | |||||||||||
(amounts in thousands) | 2022 | 2021 | |||||||||
Balance at January 1, | $ | $ | |||||||||
Issuances | |||||||||||
Settlements | ( | ( | |||||||||
Balance at March 31, | $ | $ |
Asset-backed securities | |||||
(amounts in thousands) | Three Months Ended March 31, 2022 | ||||
Balance at January 1, | $ | ||||
Principal payments | ( | ||||
Credit losses | ( | ||||
Change in fair value recognized in OCI | ( | ||||
Balance at March 31, | $ |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||
(amounts in thousands) | Fair Value Estimate | Valuation Technique | Unobservable Input | Range (Weighted Average) (4) | |||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Asset-backed securities | $ | Discounted cash flow | Discount rate Annualized loss rate Constant prepayment rate | ( ( ( | |||||||||||||||||||
Collateral-dependent loans – real estate | Collateral appraisal (1) | Liquidation expenses (2) | ( | ||||||||||||||||||||
Collateral-dependent loans – commercial and industrial | Collateral appraisal (1) Business asset valuation (3) | Liquidation expenses (2) Business asset valuation adjustments (4) | ( ( | ||||||||||||||||||||
Residential mortgage loan commitments | Adjusted market bid | Pull-through rate | ( |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||
(amounts in thousands) | Fair Value Estimate | Valuation Technique | Unobservable Input | Range (Weighted Average) (4) | |||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Asset-backed securities | $ | Discounted cash flow | Discount rate Annualized loss rate Constant prepayment rate | ( ( ( | |||||||||||||||||||
Collateral-dependent loans – real estate | Collateral appraisal (1) | Liquidation expenses (2) | ( | ||||||||||||||||||||
Collateral-dependent loans – commercial and industrial | Collateral appraisal (1) Business asset valuation (3) | Liquidation expenses (2) Business asset valuation adjustments (4) | ( ( | ||||||||||||||||||||
Residential mortgage loan commitments | Adjusted market bid | Pull-through rate | ( |
Amortized Cost | Cumulative Amount of Fair Value Hedging Adjustment to Hedged Items | |||||||||||||||||||||||||
(amounts in thousands) | March 31, 2022 | December 31, 2021 | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
AFS debt securities | $ | $ | $ | $ |
March 31, 2022 | ||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||
(amounts in thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Derivatives designated as fair value hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | Other liabilities | $ | ||||||||||||||||||||||
Total | $ | $ | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | Other liabilities | $ | ||||||||||||||||||||||
Interest rate caps | Other assets | Other liabilities | ||||||||||||||||||||||||
Credit contracts | Other assets | Other liabilities | ||||||||||||||||||||||||
Residential mortgage loan commitments | Other assets | Other liabilities | ||||||||||||||||||||||||
Total | $ | $ |
December 31, 2021 | ||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||||||||||||||||
(amounts in thousands) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||
Derivatives designated as fair value hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | Other liabilities | $ | ||||||||||||||||||||||
Total | $ | $ | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | Other liabilities | $ | ||||||||||||||||||||||
Interest rate caps | Other assets | Other liabilities | ||||||||||||||||||||||||
Credit contracts | Other assets | Other liabilities | ||||||||||||||||||||||||
Residential mortgage loan commitments | Other assets | Other liabilities | ||||||||||||||||||||||||
Total | $ | $ |
Amount of Income (Loss) Recognized in Earnings | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
(amounts in thousands) | Income Statement Location | 2022 | 2021 | ||||||||||||||
Derivatives designated as fair value hedges: | |||||||||||||||||
Recognized on interest rate swaps | Net interest income | $ | $ | ||||||||||||||
Recognized on hedged AFS debt securities | Net interest income | ( | ( | ||||||||||||||
Total | $ | $ | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Interest rate swaps | Other non-interest income | $ | $ | ||||||||||||||
Interest rate caps | Other non-interest income | ||||||||||||||||
Credit contracts | Other non-interest income | ||||||||||||||||
Residential mortgage loan commitments | Mortgage banking income | ( | ( | ||||||||||||||
Total | $ | $ |
Amount of Gain (Loss) Recognized in OCI on Derivatives (1) | Location of Gain (Loss) Reclassified from Accumulated OCI into Income | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||
(amounts in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Derivatives in cash flow hedging relationships: | |||||||||||||||||||||||||||||
Interest rate swaps | $ | $ | Interest expense | $ | $ | ( | |||||||||||||||||||||||
Other non-interest income (2) | ( | ||||||||||||||||||||||||||||
$ | $ | ( | |||||||||||||||||||||||||||
Gross Amounts Recognized on the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||
(amounts in thousands) | Financial Instruments | Cash Collateral Received/(Posted) | Net Amount | ||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||
Interest rate derivative assets with institutional counterparties | $ | $ | $ | $ | |||||||||||||||||||
Interest rate derivative liabilities with institutional counterparties | $ | $ | $ | ( | $ |
Gross Amounts Recognized on the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||||
(amounts in thousands) | Financial Instruments | Cash Collateral Received/(Posted) | Net Amount | ||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Interest rate derivative assets with institutional counterparties | $ | $ | $ | $ | |||||||||||||||||||
Interest rate derivative liabilities with institutional counterparties | $ | $ | $ | ( | $ |
(dollars in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Loans held for sale (GAAP) | $ | 3,003 | $ | 16,254 | |||||||
Loans receivable, mortgage warehouse, at fair value (GAAP) | 1,755,758 | 2,284,325 | |||||||||
Loans and leases receivable (GAAP) | 12,314,757 | 12,268,306 | |||||||||
Total loans and leases receivable (GAAP) | 14,073,518 | 14,568,885 | |||||||||
Less: Loans receivable, PPP | 2,195,902 | 3,250,008 | |||||||||
Total loans and leases, excluding PPP (Non-GAAP) | $ | 11,877,616 | $ | 11,318,877 | |||||||
Commercial deferments (GAAP) | $ | — | $ | — | |||||||
Consumer deferments (GAAP) | 3,262 | 6,060 | |||||||||
Total deferments (GAAP) | $ | 3,262 | $ | 6,060 | |||||||
Commercial deferments to total loans and leases, excluding PPP (Non-GAAP) | — | % | — | % | |||||||
Consumer deferments to total loans and leases, excluding PPP (Non-GAAP) | 0.0 | % | 0.1 | % | |||||||
Total deferments to total loans and leases, excluding PPP (Non-GAAP) | 0.0 | % | 0.1 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | % Change | |||||||||||||||||||
Net interest income | $ | 164,699 | $ | 132,731 | $ | 31,968 | 24.1 | % | |||||||||||||||
Provision (benefit) for credit losses | 15,997 | (2,919) | 18,916 | (648.0) | % | ||||||||||||||||||
Total non-interest income | 21,198 | 18,468 | 2,730 | 14.8 | % | ||||||||||||||||||
Total non-interest expense | 73,807 | 61,927 | 11,880 | 19.2 | % | ||||||||||||||||||
Income before income tax expense | 96,093 | 92,191 | 3,902 | 4.2 | % | ||||||||||||||||||
Income tax expense | 19,332 | 17,560 | 1,772 | 10.1 | % | ||||||||||||||||||
Net income from continuing operations | 76,761 | 74,631 | 2,130 | 2.9 | % | ||||||||||||||||||
Loss from discontinued operations before income taxes | — | (20,354) | 20,354 | (100.0) | % | ||||||||||||||||||
Income tax expense from discontinued operations | — | 17,682 | (17,682) | (100.0) | % | ||||||||||||||||||
Net loss from discontinued operations | — | (38,036) | 38,036 | (100.0) | % | ||||||||||||||||||
Net income | 76,761 | 36,595 | 40,166 | 109.8 | % | ||||||||||||||||||
Preferred stock dividends | 1,865 | 3,391 | (1,526) | (45.0) | % | ||||||||||||||||||
Net income available to common shareholders | $ | 74,896 | $ | 33,204 | $ | 41,692 | 125.6 | % |
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 vs. 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest Income or Expense | Average Yield or Cost (%) | Average Balance | Interest Income or Expense | Average Yield or Cost (%) | Due to rate | Due to volume | Total | ||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-earning deposits | $ | 826,240 | $ | 329 | 0.16 | % | $ | 1,177,315 | $ | 302 | 0.10 | % | $ | 133 | $ | (106) | $ | 27 | |||||||||||||||||||||||||||||||||||
Investment securities (1) | 4,036,966 | 20,295 | 2.01 | % | 1,357,558 | 7,979 | 2.35 | % | (1,279) | 13,595 | 12,316 | ||||||||||||||||||||||||||||||||||||||||||
Loans and leases: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial loans to mortgage companies | 1,836,647 | 14,006 | 3.09 | % | 3,122,098 | 23,791 | 3.09 | % | — | (9,785) | (9,785) | ||||||||||||||||||||||||||||||||||||||||||
Multi-family loans | 1,531,846 | 13,766 | 3.64 | % | 1,689,174 | 15,848 | 3.80 | % | (648) | (1,434) | (2,082) | ||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans and leases (2) | 4,124,408 | 36,659 | 3.60 | % | 2,848,328 | 27,850 | 3.97 | % | (2,786) | 11,595 | 8,809 | ||||||||||||||||||||||||||||||||||||||||||
PPP loans | 2,641,318 | 36,894 | 5.66 | % | 4,623,213 | 38,832 | 3.41 | % | 19,028 | (20,966) | (1,938) | ||||||||||||||||||||||||||||||||||||||||||
Non-owner occupied commercial real estate loans | 1,312,210 | 12,207 | 3.77 | % | 1,348,938 | 12,794 | 3.85 | % | (254) | (333) | (587) | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgages | 416,417 | 3,680 | 3.58 | % | 373,497 | 3,485 | 3.78 | % | (191) | 386 | 195 | ||||||||||||||||||||||||||||||||||||||||||
Installment loans | 1,794,145 | 39,963 | 9.03 | % | 1,323,863 | 29,517 | 9.04 | % | (33) | 10,479 | 10,446 | ||||||||||||||||||||||||||||||||||||||||||
Total loans and leases (3) | 13,656,991 | 157,175 | 4.67 | % | 15,329,111 | 152,117 | 4.02 | % | 22,816 | (17,758) | 5,058 | ||||||||||||||||||||||||||||||||||||||||||
Other interest-earning assets | 52,111 | 5,677 | NM | (7) | 79,960 | 717 | 3.64 | % | 5,294 | (334) | 4,960 | ||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 18,572,308 | 183,476 | 4.00 | % | 17,943,944 | 161,115 | 3.64 | % | 16,514 | 5,847 | 22,361 | ||||||||||||||||||||||||||||||||||||||||||
Non-interest-earning assets | 557,022 | 581,777 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 19,129,330 | $ | 18,525,721 | |||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest checking accounts | $ | 5,769,372 | 7,730 | 0.54 | % | $ | 2,691,723 | 5,599 | 0.84 | % | (2,527) | 4,658 | 2,131 | ||||||||||||||||||||||||||||||||||||||||
Money market deposit accounts | 4,880,051 | 4,674 | 0.39 | % | 4,435,930 | 6,059 | 0.55 | % | (1,926) | 541 | (1,385) | ||||||||||||||||||||||||||||||||||||||||||
Other savings accounts | 880,113 | 784 | 0.36 | % | 1,414,350 | 2,400 | 0.69 | % | (903) | (713) | (1,616) | ||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | 450,644 | 524 | 0.47 | % | 666,239 | 1,600 | 0.97 | % | (661) | (415) | (1,076) | ||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing deposits (4) | 11,980,180 | 13,712 | 0.46 | % | 9,208,242 | 15,658 | 0.69 | % | (5,979) | 4,033 | (1,946) | ||||||||||||||||||||||||||||||||||||||||||
Federal funds purchased | 88,611 | 73 | 0.33 | % | 16,333 | 3 | 0.07 | % | 32 | 38 | 70 | ||||||||||||||||||||||||||||||||||||||||||
FRB PPP liquidity facility | — | — | — | % | 3,941,718 | 3,402 | 0.35 | % | — | (3,402) | (3,402) | ||||||||||||||||||||||||||||||||||||||||||
Borrowings | 532,610 | 4,992 | 3.80 | % | 1,155,493 | 9,321 | 3.27 | % | 1,321 | (5,650) | (4,329) | ||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 12,601,401 | 18,777 | 0.60 | % | 14,321,786 | 28,384 | 0.80 | % | (6,489) | (3,118) | (9,607) | ||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing deposits (4) | 4,900,983 | 2,819,871 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total deposits and borrowings | 17,502,384 | 0.43 | % | 17,141,657 | 0.67 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Other non-interest-bearing liabilities | 237,131 | 247,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 17,739,515 | 17,389,455 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 1,389,815 | 1,136,266 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 19,129,330 | $ | 18,525,721 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 164,699 | 132,731 | $ | 23,003 | $ | 8,965 | $ | 31,968 | |||||||||||||||||||||||||||||||||||||||||||||
Tax-equivalent adjustment (5) | 239 | 292 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest earnings | $ | 164,938 | $ | 133,023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest spread | 3.57 | % | 2.97 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin | 3.59 | % | 3.00 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin tax equivalent (5) | 3.60 | % | 3.00 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin tax equivalent, excluding PPP loans (6) | 3.32 | % | 2.99 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(dollars in thousands) | 2022 | 2021 | |||||||||
Net interest income (GAAP) | $ | 164,699 | $ | 132,731 | |||||||
Tax-equivalent adjustment | 239 | 292 | |||||||||
Net interest income tax equivalent (Non-GAAP) | 164,938 | 133,023 | |||||||||
Loans receivable, PPP net interest income | (34,615) | (34,842) | |||||||||
Net interest income tax equivalent, excluding PPP loans (Non-GAAP) | $ | 130,323 | $ | 98,181 | |||||||
Average total interest-earning assets (GAAP) | $ | 18,572,308 | $ | 17,943,944 | |||||||
Average PPP loans | (2,641,318) | (4,623,213) | |||||||||
Adjusted average total interest-earning assets (Non-GAAP) | $ | 15,930,990 | $ | 13,320,731 | |||||||
Net interest margin (GAAP) | 3.59 | % | 3.00 | % | |||||||
Net interest margin tax equivalent (Non-GAAP) | 3.60 | % | 3.00 | % | |||||||
Net interest margin tax equivalent, excluding PPP loans (Non-GAAP) | 3.32 | % | 2.99 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | % Change | |||||||||||||||||||
Interchange and card revenue | $ | 76 | $ | 85 | $ | (9) | (10.6) | % | |||||||||||||||
Deposit fees | 940 | 863 | 77 | 8.9 | % | ||||||||||||||||||
Commercial lease income | 5,895 | 5,205 | 690 | 13.3 | % | ||||||||||||||||||
Bank-owned life insurance | 8,326 | 1,679 | 6,647 | 395.9 | % | ||||||||||||||||||
Mortgage warehouse transactional fees | 2,015 | 4,247 | (2,232) | (52.6) | % | ||||||||||||||||||
Gain (loss) on sale of SBA and other loans | 1,507 | 1,575 | (68) | (4.3) | % | ||||||||||||||||||
Loan fees | 2,545 | 1,436 | 1,109 | 77.2 | % | ||||||||||||||||||
Mortgage banking income | 481 | 463 | 18 | 3.9 | % | ||||||||||||||||||
Gain (loss) on sale of investment securities | (1,063) | 23,566 | (24,629) | (104.5) | % | ||||||||||||||||||
Unrealized gain (loss) on investment securities | (276) | 974 | (1,250) | (128.3) | % | ||||||||||||||||||
Unrealized gain (loss) on derivatives | 964 | 2,537 | (1,573) | (62.0) | % | ||||||||||||||||||
Loss on cash flow hedge derivative terminations | — | (24,467) | 24,467 | (100.0) | % | ||||||||||||||||||
Other | (212) | 305 | (517) | (169.5) | % | ||||||||||||||||||
Total non-interest income | $ | 21,198 | $ | 18,468 | $ | 2,730 | 14.8 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | % Change | |||||||||||||||||||
Salaries and employee benefits | $ | 26,607 | $ | 23,971 | $ | 2,636 | 11.0 | % | |||||||||||||||
Technology, communication and bank operations | 24,068 | 19,988 | 4,080 | 20.4 | % | ||||||||||||||||||
Professional services | 6,956 | 5,877 | 1,079 | 18.4 | % | ||||||||||||||||||
Occupancy | 3,050 | 2,621 | 429 | 16.4 | % | ||||||||||||||||||
Commercial lease depreciation | 4,942 | 4,291 | 651 | 15.2 | % | ||||||||||||||||||
FDIC assessments, non-income taxes and regulatory fees | 2,383 | 2,719 | (336) | (12.4) | % | ||||||||||||||||||
Loan servicing | 2,371 | 437 | 1,934 | 442.6 | % | ||||||||||||||||||
Advertising and promotion | 315 | 561 | (246) | (43.9) | % | ||||||||||||||||||
Merger and acquisition related expenses | — | 418 | (418) | (100.0) | % | ||||||||||||||||||
Loan workout | (38) | (261) | 223 | (85.4) | % | ||||||||||||||||||
Other | 3,153 | 1,305 | 1,848 | 141.6 | % | ||||||||||||||||||
Total non-interest expense | $ | 73,807 | $ | 61,927 | $ | 11,880 | 19.2 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | % Change | |||||||||||||||||||
Income before income tax expense | $ | 96,093 | $ | 92,191 | $ | 3,902 | 4.2 | % | |||||||||||||||
Income tax expense | 19,332 | 17,560 | 1,772 | 10.1 | % | ||||||||||||||||||
Effective tax rate | 20.12 | % | 19.05 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | % Change | |||||||||||||||||||
Loss from discontinued operations before income taxes | $ | — | $ | (20,354) | $ | 20,354 | (100.0) | % | |||||||||||||||
Income tax expense from discontinued operations | — | 17,682 | (17,682) | (100.0) | % | ||||||||||||||||||
Net loss from discontinued operations | $ | — | $ | (38,036) | $ | 38,036 | (100.0) | % |
(dollars in thousands) | March 31, 2022 | December 31, 2021 | Change | % Change | |||||||||||||||||||
Cash and cash equivalents | $ | 274,600 | $ | 518,032 | $ | (243,432) | (47.0) | % | |||||||||||||||
Investment securities, at fair value | 4,169,853 | 3,817,150 | 352,703 | 9.2 | % | ||||||||||||||||||
Loans held for sale | 3,003 | 16,254 | (13,251) | (81.5) | % | ||||||||||||||||||
Loans receivable, mortgage warehouse, at fair value | 1,755,758 | 2,284,325 | (528,567) | (23.1) | % | ||||||||||||||||||
Loans receivable, PPP | 2,195,902 | 3,250,008 | (1,054,106) | (32.4) | % | ||||||||||||||||||
Loans and leases receivable | 10,118,855 | 9,018,298 | 1,100,557 | 12.2 | % | ||||||||||||||||||
Allowance for credit losses on loans and leases | (145,847) | (137,804) | (8,043) | 5.8 | % | ||||||||||||||||||
Bank-owned life insurance | 332,239 | 333,705 | (1,466) | (0.4) | % | ||||||||||||||||||
Other assets | 298,212 | 305,611 | (7,399) | (2.4) | % | ||||||||||||||||||
Total assets | 19,163,708 | 19,575,028 | (411,320) | (2.1) | % | ||||||||||||||||||
Total deposits | 16,415,560 | 16,777,924 | (362,364) | (2.2) | % | ||||||||||||||||||
Federal funds purchased | 700,000 | 75,000 | 625,000 | 833.3 | % | ||||||||||||||||||
FHLB advances | — | 700,000 | (700,000) | (100.0) | % | ||||||||||||||||||
Other borrowings | 223,230 | 223,086 | 144 | 0.1 | % | ||||||||||||||||||
Subordinated debt | 181,742 | 181,673 | 69 | — | % | ||||||||||||||||||
Accrued interest payable and other liabilities | 265,770 | 251,128 | 14,642 | 5.8 | % | ||||||||||||||||||
Total liabilities | 17,786,302 | 18,208,811 | (422,509) | (2.3) | % | ||||||||||||||||||
Total shareholders’ equity | 1,377,406 | 1,366,217 | 11,189 | 0.8 | % | ||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 19,163,708 | $ | 19,575,028 | $ | (411,320) | (2.1) | % |
Three Months Ended March 31, | |||||||||||
(amounts in thousands) | 2022 | 2021 | |||||||||
Purchases (1) | |||||||||||
Residential real estate | $ | 146,874 | $ | — | |||||||
Installment (2) | 59,456 | 115,849 | |||||||||
Total | $ | 206,330 | $ | 115,849 | |||||||
Sales (3) | |||||||||||
Commercial and industrial (4) | $ | 8,840 | $ | 18,931 | |||||||
Commercial real estate owner occupied (4) | 5,441 | 2,237 | |||||||||
Commercial real estate non-owner occupied | — | 18,366 | |||||||||
Total | $ | 14,281 | $ | 39,534 |
(amounts in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Consumer loans: | |||||||||||
Home equity conversion mortgages, at lower of cost or fair value | $ | 507 | $ | 507 | |||||||
Residential mortgage loans, at fair value | 2,496 | 15,747 | |||||||||
Total consumer loans held for sale | 3,003 | 16,254 | |||||||||
Loans held for sale | $ | 3,003 | $ | 16,254 |
(amounts in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Loans and leases receivable, mortgage warehouse, at fair value | $ | 1,755,758 | $ | 2,284,325 | |||||||
Loans receivable, PPP | 2,195,902 | 3,250,008 | |||||||||
Loans and leases receivable: | |||||||||||
Commercial: | |||||||||||
Multi-family | 1,705,027 | 1,486,308 | |||||||||
Commercial and industrial (1) | 3,995,802 | 3,424,783 | |||||||||
Commercial real estate owner occupied | 701,893 | 654,922 | |||||||||
Commercial real estate non-owner occupied | 1,140,311 | 1,121,238 | |||||||||
Construction | 161,024 | 198,981 | |||||||||
Total commercial loans and leases receivable | 7,704,057 | 6,886,232 | |||||||||
Consumer: | |||||||||||
Residential real estate | 466,423 | 334,730 | |||||||||
Manufactured housing | 50,669 | 52,861 | |||||||||
Installment | 1,897,706 | 1,744,475 | |||||||||
Total consumer loans receivable | 2,414,798 | 2,132,066 | |||||||||
Loans and leases receivable | 10,118,855 | 9,018,298 | |||||||||
Allowance for credit losses on loans and leases | (145,847) | (137,804) | |||||||||
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2) | $ | 13,924,668 | $ | 14,414,827 |
(dollars in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Loans and leases receivable (GAAP) | $ | 12,314,757 | $ | 12,268,306 | |||||||
Less: Loans receivable, PPP | 2,195,902 | 3,250,008 | |||||||||
Loans and leases held for investment, excluding PPP (Non-GAAP) | $ | 10,118,855 | $ | 9,018,298 | |||||||
ACL for loans and leases (GAAP) | $ | 145,847 | $ | 137,804 | |||||||
Coverage of ACL for loans and leases held for investment, excluding PPP (Non-GAAP) | 1.44 | % | 1.53 | % |
(amounts in thousands) | Multi-family | Commercial and industrial | Commercial real estate owner occupied | Commercial real estate non-owner occupied | Construction | Residential real estate | Manufactured housing | Installment | Total | ||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, December 31, 2021 | $ | 4,477 | $ | 12,702 | $ | 3,213 | $ | 6,210 | $ | 692 | $ | 2,383 | $ | 4,278 | $ | 103,849 | $ | 137,804 | |||||||||||||||||||||||||||||||||||
Charge-offs (1) | — | (301) | — | — | — | (4) | — | (8,865) | (9,170) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries (1) | 337 | 360 | 7 | 8 | 113 | 6 | — | 1,113 | 1,944 | ||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses on loans and leases | 2,623 | (1,996) | 621 | (263) | 134 | 2,300 | 64 | 11,786 | 15,269 | ||||||||||||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2022 | $ | 7,437 | $ | 10,765 | $ | 3,841 | $ | 5,955 | $ | 939 | $ | 4,685 | $ | 4,342 | $ | 107,883 | $ | 145,847 | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, at December 31, 2020 | $ | 12,620 | $ | 12,239 | $ | 9,512 | $ | 19,452 | $ | 5,871 | $ | 3,977 | $ | 5,190 | $ | 75,315 | $ | 144,176 | |||||||||||||||||||||||||||||||||||
Charge-offs (1) | (1,132) | (635) | (142) | — | — | (50) | — | (12,687) | (14,646) | ||||||||||||||||||||||||||||||||||||||||||||
Recoveries (1) | — | 260 | 8 | 10 | 5 | 10 | — | 1,832 | 2,125 | ||||||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for credit losses on loans and leases | (3,462) | (4,361) | (3,443) | (7,841) | (1,773) | (728) | (390) | 19,079 | (2,919) | ||||||||||||||||||||||||||||||||||||||||||||
Ending Balance, March 31, 2021 | $ | 8,026 | $ | 7,503 | $ | 5,935 | $ | 11,621 | $ | 4,103 | $ | 3,209 | $ | 4,800 | $ | 83,539 | $ | 128,736 | |||||||||||||||||||||||||||||||||||
Annualized Net Charge-offs to Average Loans and Leases | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | 0.09 | % | 0.01 | % | 0.00 | % | 0.00 | % | 0.24 | % | 0.00 | % | — | % | (1.75) | % | (0.32) | % | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | (0.27) | % | (0.07) | % | (0.09) | % | 0.00 | % | 0.01 | % | (0.05) | % | — | % | (3.33) | % | (0.67) | % | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Total Loans and Leases | Current | 30-89 Days Past Due | 90 Days or More Past Due and Accruing | Non-accrual/NPL (a) | OREO and Repossessed Assets (b) | NPA (a)+(b) | NPL to Loan and Lease Type (%) | NPA to Loans and Leases + OREO and Repossessed Assets (%) | ||||||||||||||||||||||||||||||||||||||||||||
Loan and Lease Type | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | $ | 1,705,027 | $ | 1,676,468 | $ | 10,690 | $ | — | $ | 17,869 | $ | — | $ | 17,869 | 1.05 | % | 1.05 | % | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 3,995,802 | 3,986,728 | 2,978 | 606 | 5,490 | — | 5,490 | 0.14 | % | 0.14 | % | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate owner occupied | 701,893 | 696,835 | 2,867 | — | 2,191 | — | 2,191 | 0.31 | % | 0.31 | % | ||||||||||||||||||||||||||||||||||||||||||
Commercial real estate non-owner occupied | 1,140,311 | 1,139,009 | — | — | 1,302 | — | 1,302 | 0.11 | % | 0.11 | % | ||||||||||||||||||||||||||||||||||||||||||
Construction | 161,024 | 161,024 | — | — | — | — | — | — | % | — | % | ||||||||||||||||||||||||||||||||||||||||||
Total commercial loans and leases receivable | 7,704,057 | 7,660,064 | 16,535 | 606 | 26,852 | — | 26,852 | 0.35 | % | 0.35 | % | ||||||||||||||||||||||||||||||||||||||||||
Residential | 466,423 | 453,692 | 4,607 | — | 8,124 | 35 | 8,159 | 1.74 | % | 1.75 | % | ||||||||||||||||||||||||||||||||||||||||||
Manufactured housing | 50,669 | 44,926 | 1,254 | 1,059 | 3,430 | 51 | 3,481 | 6.77 | % | 6.86 | % | ||||||||||||||||||||||||||||||||||||||||||
Installment | 1,897,706 | 1,879,999 | 12,842 | — | 4,865 | — | 4,865 | 0.26 | % | 0.26 | % | ||||||||||||||||||||||||||||||||||||||||||
Total consumer loans receivable | 2,414,798 | 2,378,617 | 18,703 | 1,059 | 16,419 | 86 | 16,505 | 0.68 | % | 0.68 | % | ||||||||||||||||||||||||||||||||||||||||||
Loans and leases receivable (1) | 10,118,855 | 10,038,681 | 35,238 | 1,665 | 43,271 | 86 | 43,357 | 0.43 | % | 0.43 | % | ||||||||||||||||||||||||||||||||||||||||||
Loans receivable, PPP (2) | 2,195,902 | 2,195,902 | — | — | — | — | — | — | % | — | % | ||||||||||||||||||||||||||||||||||||||||||
Loans receivable, mortgage warehouse, at fair value | 1,755,758 | 1,755,758 | — | — | — | — | — | — | % | — | % | ||||||||||||||||||||||||||||||||||||||||||
Total loans held for sale | 3,003 | 2,496 | — | — | 507 | — | 507 | 16.88 | % | 16.88 | % | ||||||||||||||||||||||||||||||||||||||||||
Total portfolio | $ | 14,073,518 | $ | 13,992,837 | $ | 35,238 | $ | 1,665 | $ | 43,778 | $ | 86 | $ | 43,864 | 0.31 | % | 0.31 | % |
(dollars in thousands) | Total Loans and Leases | Non-accrual / NPL | ACL | Reserves to Loans and Leases (%) | Reserves to NPLs (%) | ||||||||||||||||||||||||
Loan and Lease Type | |||||||||||||||||||||||||||||
Multi-family | $ | 1,705,027 | $ | 17,869 | $ | 7,437 | 0.44 | % | 41.62 | % | |||||||||||||||||||
Commercial and industrial | 3,995,802 | 5,490 | 10,765 | 0.27 | % | 196.08 | % | ||||||||||||||||||||||
Commercial real estate owner occupied | 701,893 | 2,191 | 3,841 | 0.55 | % | 175.31 | % | ||||||||||||||||||||||
Commercial real estate non-owner occupied | 1,140,311 | 1,302 | 5,955 | 0.52 | % | 457.37 | % | ||||||||||||||||||||||
Construction | 161,024 | — | 939 | 0.58 | % | — | % | ||||||||||||||||||||||
Total commercial loans and leases receivable | 7,704,057 | 26,852 | 28,937 | 0.38 | % | 107.76 | % | ||||||||||||||||||||||
Residential | 466,423 | 8,124 | 4,685 | 1.00 | % | 57.67 | % | ||||||||||||||||||||||
Manufactured housing | 50,669 | 3,430 | 4,342 | 8.57 | % | 126.59 | % | ||||||||||||||||||||||
Installment | 1,897,706 | 4,865 | 107,883 | 5.68 | % | 2,217.53 | % | ||||||||||||||||||||||
Total consumer loans receivable | 2,414,798 | 16,419 | 116,910 | 4.84 | % | 712.04 | % | ||||||||||||||||||||||
Loans and leases receivable (1) | 10,118,855 | 43,271 | 145,847 | 1.44 | % | 337.05 | % | ||||||||||||||||||||||
Loans receivable, PPP (2) | 2,195,902 | — | — | — | % | — | % | ||||||||||||||||||||||
Loans receivable, mortgage warehouse, at fair value | 1,755,758 | — | — | — | % | — | % | ||||||||||||||||||||||
Total loans held for sale | 3,003 | 507 | — | — | % | — | % | ||||||||||||||||||||||
Total portfolio | $ | 14,073,518 | $ | 43,778 | $ | 145,847 | 1.04 | % | 333.15 | % |
(dollars in thousands) | Total Loans and Leases | Current | 30-89 Days Past Due | 90 Days or More Past Due and Accruing | Non-accrual/NPL (a) | OREO and Repossessed Assets (b) | NPA (a)+(b) | NPL to Loan and Lease Type (%) | NPA to Loans and Leases + OREO and Repossessed Assets (%) | ||||||||||||||||||||||||||||||||||||||||||||
Loans and leases receivable (GAAP) | $ | 14,073,518 | $ | 13,992,837 | $ | 35,238 | $ | 1,665 | $ | 43,778 | $ | 86 | $ | 43,864 | 0.31 | % | 0.31 | % | |||||||||||||||||||||||||||||||||||
Less: Loans receivable, PPP (1) | 2,195,902 | 2,195,902 | — | — | — | — | — | — | % | — | % | ||||||||||||||||||||||||||||||||||||||||||
Loans receivable, excluding loans receivable, PPP (Non-GAAP) | $ | 11,877,616 | $ | 11,796,935 | $ | 35,238 | $ | 1,665 | $ | 43,778 | $ | 86 | $ | 43,864 | 0.37 | % | 0.37 | % | |||||||||||||||||||||||||||||||||||
(dollars in thousands) | Total Loans and Leases | Non-accrual / NPL | ACL | Reserves to Loans and Leases (%) | Reserves to NPLs (%) | ||||||||||||||||||||||||
Loans and leases receivable (GAAP) | $ | 14,073,518 | $ | 43,778 | $ | 145,847 | 1.04 | % | 333.15 | % | |||||||||||||||||||
Less: Loans receivable, PPP (1) | 2,195,902 | — | — | — | % | — | % | ||||||||||||||||||||||
Loans receivable, excluding loans receivable, PPP (Non-GAAP) | $ | 11,877,616 | $ | 43,778 | $ | 145,847 | 1.23 | % | 333.15 | % |
(dollars in thousands) | March 31, 2022 | December 31, 2021 | Change | % Change | |||||||||||||||||||
Demand, non-interest bearing | $ | 4,594,428 | $ | 4,459,790 | $ | 134,638 | 3.0 | % | |||||||||||||||
Demand, interest bearing | 5,591,468 | 6,488,406 | (896,938) | (13.8) | % | ||||||||||||||||||
Savings, including MMDA | 5,783,472 | 5,322,390 | 461,082 | 8.7 | % | ||||||||||||||||||
Non-time deposits | 15,969,368 | 16,270,586 | (301,218) | (1.9) | % | ||||||||||||||||||
Time deposits | 446,192 | 507,338 | (61,146) | (12.1) | % | ||||||||||||||||||
Total deposits | $ | 16,415,560 | $ | 16,777,924 | $ | (362,364) | (2.2) | % |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
(dollars in thousands) | Amount | Rate | Amount | Rate | |||||||||||||||||||
FHLB advances | $ | — | — | % | $ | 700,000 | 0.26 | % | |||||||||||||||
Federal funds purchased | 700,000 | 0.40 | % | 75,000 | 0.05 | % | |||||||||||||||||
Total short-term debt | $ | 700,000 | $ | 775,000 |
(dollars in thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Total maximum borrowing capacity with the FHLB | $ | 3,337,211 | $ | 2,973,635 | |||||||
Total maximum borrowing capacity with the FRB (1) | 214,908 | 183,052 | |||||||||
Qualifying loans serving as collateral against FHLB and FRB advances (1) | 4,218,252 | 3,594,339 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issued by | Ranking | Carrying Amount | Carrying Amount | Rate | Issued Amount | Date Issued | Maturity | Price | ||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp | Senior (1) | $ | 99,844 | $ | 98,642 | 2.875 | % | $ | 100,000 | August 2021 | August 2031 | 100.000 | % | |||||||||||||||||||||||||||||||||||||
Customers Bancorp | Senior | 24,702 | 24,672 | 4.500 | % | 25,000 | September 2019 | September 2024 | 100.000 | % | ||||||||||||||||||||||||||||||||||||||||
Customers Bancorp | Senior | 98,684 | 99,772 | 3.950 | % | 100,000 | June 2017 | June 2022 | 99.775 | % | ||||||||||||||||||||||||||||||||||||||||
Total other borrowings | $ | 223,230 | $ | 223,086 | ||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp | Subordinated (2)(3) | $ | 72,448 | $ | 72,403 | 5.375 | % | $ | 74,750 | December 2019 | December 2034 | 100.000 | % | |||||||||||||||||||||||||||||||||||||
Customers Bank | Subordinated (2)(4) | 109,294 | 109,270 | 6.125 | % | 110,000 | June 2014 | June 2029 | 100.000 | % | ||||||||||||||||||||||||||||||||||||||||
Total subordinated debt | $ | 181,742 | $ | 181,673 |
(dollars in thousands) | March 31, 2022 | December 31, 2021 | Change | % Change | |||||||||||||||||||
Preferred stock | $ | 137,794 | $ | 137,794 | $ | — | — | % | |||||||||||||||
Common stock | 34,882 | 34,722 | 160 | 0.5 | % | ||||||||||||||||||
Additional paid in capital | 542,402 | 542,391 | 11 | — | % | ||||||||||||||||||
Retained earnings | 780,628 | 705,732 | 74,896 | 10.6 | % | ||||||||||||||||||
Accumulated other comprehensive income (loss), net | (62,548) | (4,980) | (57,568) | 1,156.0 | % | ||||||||||||||||||
Treasury stock | (55,752) | (49,442) | (6,310) | 12.8 | % | ||||||||||||||||||
Total shareholders' equity | $ | 1,377,406 | $ | 1,366,217 | $ | 11,189 | 0.8 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | % Change | |||||||||||||||||||
Net cash provided by (used in) continuing operating activities | $ | 116,940 | $ | 200,384 | $ | (83,444) | (41.6) | % | |||||||||||||||
Net cash provided by (used in) continuing investing activities | 88,672 | (526,654) | 615,326 | (116.8) | % | ||||||||||||||||||
Net cash provided by (used in) continuing financing activities | (449,044) | 171,071 | (620,115) | (362.5) | % | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents from continuing operations | $ | (243,432) | $ | (155,199) | $ | (88,233) | 56.9 | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2022 | 2021 | Change | % Change | |||||||||||||||||||
Net cash provided by (used in) discontinued operating activities | $ | — | $ | (22,791) | $ | 22,791 | (100.0) | % | |||||||||||||||
Net increase (decrease) in cash and cash equivalents from discontinued operations | $ | — | $ | (22,791) | $ | 22,791 | (100.0) | % |
Minimum Capital Levels to be Classified as: | |||||||||||||||||||||||||||||||||||||||||||||||
Actual | Adequately Capitalized | Well Capitalized | Basel III Compliant | ||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||||||||||||
As of March 31, 2022: | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,344,684 | 9.893 | % | $ | 611,629 | 4.500 | % | N/A | N/A | $ | 951,423 | 7.000 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,573,796 | 11.598 | % | $ | 610,658 | 4.500 | % | $ | 882,062 | 6.500 | % | $ | 949,913 | 7.000 | % | |||||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,482,477 | 10.907 | % | $ | 815,505 | 6.000 | % | N/A | N/A | $ | 1,155,299 | 8.500 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,573,796 | 11.598 | % | $ | 814,211 | 6.000 | % | $ | 1,085,615 | 8.000 | % | $ | 1,153,466 | 8.500 | % | |||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,749,655 | 12.873 | % | $ | 1,087,340 | 8.000 | % | N/A | N/A | $ | 1,427,134 | 10.500 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,768,525 | 13.032 | % | $ | 1,085,615 | 8.000 | % | $ | 1,357,019 | 10.000 | % | $ | 1,424,870 | 10.500 | % | |||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,482,477 | 7.723 | % | $ | 767,836 | 4.000 | % | N/A | N/A | $ | 767,836 | 4.000 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,573,796 | 8.211 | % | $ | 766,712 | 4.000 | % | $ | 958,391 | 5.000 | % | $ | 766,712 | 4.000 | % | |||||||||||||||||||||||||||||||
As of December 31, 2021: | |||||||||||||||||||||||||||||||||||||||||||||||
Common equity Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,291,270 | 9.981 | % | $ | 582,179 | 4.500 | % | N/A | N/A | $ | 905,611 | 7.000 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,526,583 | 11.825 | % | $ | 580,943 | 4.500 | % | $ | 839,140 | 6.500 | % | $ | 903,689 | 7.000 | % | |||||||||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,429,063 | 11.046 | % | $ | 776,238 | 6.000 | % | N/A | N/A | $ | 1,099,671 | 8.500 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,526,583 | 11.825 | % | $ | 774,591 | 6.000 | % | $ | 1,032,788 | 8.000 | % | $ | 1,097,337 | 8.500 | % | |||||||||||||||||||||||||||||||
Total capital (to risk-weighted assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,667,395 | 12.888 | % | $ | 1,034,984 | 8.000 | % | N/A | N/A | $ | 1,358,417 | 10.500 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,692,512 | 13.110 | % | $ | 1,032,788 | 8.000 | % | $ | 1,290,985 | 10.000 | % | $ | 1,355,534 | 10.500 | % | |||||||||||||||||||||||||||||||
Tier 1 capital (to average assets) | |||||||||||||||||||||||||||||||||||||||||||||||
Customers Bancorp, Inc. | $ | 1,429,063 | 7.413 | % | $ | 771,084 | 4.000 | % | N/A | N/A | $ | 771,084 | 4.000 | % | |||||||||||||||||||||||||||||||||
Customers Bank | $ | 1,526,583 | 7.925 | % | $ | 770,528 | 4.000 | % | $ | 963,160 | 5.000 | % | $ | 770,528 | 4.000 | % |
% Change | |||||||||||
Rate Shocks | March 31, 2022 | December 31, 2021 | |||||||||
Up 3% | 7.1% | 16.0% | |||||||||
Up 2% | 5.1% | 10.8% | |||||||||
Up 1% | 2.9% | 5.7% | |||||||||
From Base | |||||||||||
Rate Shocks | March 31, 2022 | December 31, 2021 | |||||||||
Up 3% | 14.0% | 100.7% | |||||||||
Up 2% | 13.8% | 79.8% | |||||||||
Up 1% | 9.4% | 51.5% | |||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares purchased as part of publicly announced plans or programs | Maximum Number of Shares that may yet be purchased under the plans or programs | ||||||||||||||||||||||
January 1 - January 31, 2022 | 66,255 | $ | 56.11 | 66,255 | 2,641,282 | |||||||||||||||||||||
February 1 - February 28, 2022 | — | — | — | 2,641,282 | ||||||||||||||||||||||
March 1 - March 31, 2022 | 49,069 | 52.85 | 49,069 | 2,592,213 | ||||||||||||||||||||||
Total | 115,324 | $ | 54.72 | 115,324 | 2,592,213 |
Exhibit No. | Description | |||||||
* | ||||||||
3.6 | ||||||||
3.7 | ||||||||
101 | The following financial statements from the Customers’ Quarterly Report on Form 10-Q as of and for the quarterly period ended March 31, 2022, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Shareholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) the Notes to the Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document. | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
Customers Bancorp, Inc. | |||||||||||
May 9, 2022 | By: | /s/ Jay S. Sidhu | |||||||||
Name: | Jay S. Sidhu | ||||||||||
Title: | Chairman and Chief Executive Officer (Principal Executive Officer) | ||||||||||
May 9, 2022 | By: | /s/ Carla A. Leibold | |||||||||
Name: | Carla A. Leibold | ||||||||||
Title: | Chief Financial Officer (Principal Financial Officer) |
/s/ Jay S. Sidhu | ||
Jay S. Sidhu Chairman and Chief Executive Officer (Principal Executive Officer) | ||
Date: May 9, 2022 |
/s/ Carla A. Leibold | ||
Carla A. Leibold Chief Financial Officer (Principal Financial Officer) | ||
Date: May 9, 2022 |
Date: May 9, 2022 | /s/ Jay S. Sidhu | |||||||
Jay S. Sidhu, Chairman and Chief Executive Officer (Principal Executive Officer) |
Date: May 9, 2022 | /s/ Carla A. Leibold | |||||||
Carla A. Leibold, Chief Financial Officer (Principal Financial Officer) |
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Consolidated Balance Sheet - Unaudited (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 728 | |
Loans held for sale at fair value | $ 2,496 | $ 15,747 |
Preferred stock, par value (usd per share) | $ 1.00 | $ 1.00 |
Preferred stock, liquidation preference (usd per share) | $ 25.00 | $ 25.00 |
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (shares) | 5,700,000 | 5,700,000 |
Preferred stock, shares outstanding (shares) | 5,700,000 | 5,700,000 |
Common stock, par value (usd per share) | $ 1.00 | $ 1.00 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (shares) | 34,881,580 | 34,721,675 |
Common stock, shares outstanding (shares) | 32,957,847 | 32,913,267 |
Treasury stock, shares (shares) | 1,923,732 | 1,808,408 |
Consolidated Statements of Comprehensive Income (Loss) - Unaudited - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 76,761 | $ 36,595 |
Unrealized gains (losses) on available for sale debt securities: | ||
Unrealized gains (losses) arising during the period | (78,858) | 400 |
Income tax effect | 20,503 | (104) |
Reclassification adjustments for (gains) losses included in net income | 1,063 | (23,566) |
Income tax effect | (276) | 6,127 |
Net unrealized gains (losses) on available for sale debt securities | (57,568) | (17,143) |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized gains (losses) arising during the period | 0 | 12,315 |
Income tax effect | 0 | (3,202) |
Reclassification adjustment for (gains) losses included in net income | 0 | 25,926 |
Income tax effect | 0 | (6,741) |
Net unrealized gains (losses) on cash flow hedges | 0 | 28,298 |
Other comprehensive income (loss), net of income tax effect | (57,568) | 11,155 |
Comprehensive income (loss) | $ 19,193 | $ 47,750 |
Consolidated Statements of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands |
Total |
Preferred Stock |
Common Stock |
Additional Paid in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance, preferred stock (shares) at Dec. 31, 2020 | 9,000,000 | ||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 1,117,086 | $ 217,471 | $ 32,986 | $ 455,592 | $ 438,581 | $ (5,764) | $ (21,780) | ||||||||
Beginning balance, common stock (shares) at Dec. 31, 2020 | 31,705,088 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 36,595 | 36,595 | |||||||||||||
Other comprehensive income (loss) | 11,155 | 11,155 | |||||||||||||
Preferred stock dividends | [1] | (3,391) | (3,391) | ||||||||||||
Sale of non-controlling interest in BMT | [2] | 31,893 | 31,893 | ||||||||||||
Distribution of investment in BM Technologies | [3] | (32,983) | (32,983) | ||||||||||||
Restricted stock awards to certain BMT team members | [4] | 19,592 | 19,592 | ||||||||||||
Share-based compensation expense | 3,609 | 3,609 | |||||||||||||
Issuance of common stock under share-based compensation arrangements (shares) | 533,674 | ||||||||||||||
Issuance of common stock under share-based compensation arrangements | 5,165 | $ 533 | 4,632 | ||||||||||||
Ending balance, preferred stock (shares) at Mar. 31, 2021 | 9,000,000 | ||||||||||||||
Ending balance at Mar. 31, 2021 | $ 1,188,721 | $ 217,471 | $ 33,519 | 515,318 | 438,802 | 5,391 | (21,780) | ||||||||
Ending balance, common stock (shares) at Mar. 31, 2021 | 32,238,762 | ||||||||||||||
Beginning balance, preferred stock (shares) at Dec. 31, 2021 | 5,700,000 | 5,700,000 | |||||||||||||
Beginning balance at Dec. 31, 2021 | $ 1,366,217 | $ 137,794 | $ 34,722 | 542,391 | 705,732 | (4,980) | (49,442) | ||||||||
Beginning balance, common stock (shares) at Dec. 31, 2021 | 32,913,267 | 32,913,267 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | $ 76,761 | 76,761 | |||||||||||||
Other comprehensive income (loss) | (57,568) | (57,568) | |||||||||||||
Preferred stock dividends | [1] | (1,865) | (1,865) | ||||||||||||
Share-based compensation expense | 3,703 | 3,703 | |||||||||||||
Issuance of common stock under share-based compensation arrangements (shares) | 159,904 | ||||||||||||||
Issuance of common stock under share-based compensation arrangements | (3,532) | $ 160 | (3,692) | ||||||||||||
Repurchase of common shares (shares) | (115,324) | ||||||||||||||
Repurchase of common shares | $ (6,310) | (6,310) | |||||||||||||
Ending balance, preferred stock (shares) at Mar. 31, 2022 | 5,700,000 | 5,700,000 | |||||||||||||
Ending balance at Mar. 31, 2022 | $ 1,377,406 | $ 137,794 | $ 34,882 | $ 542,402 | $ 780,628 | $ (62,548) | $ (55,752) | ||||||||
Ending balance, common stock (shares) at Mar. 31, 2022 | 32,957,847 | 32,957,847 | |||||||||||||
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Consolidated Statements of Changes in Shareholders' Equity - Unaudited (Parenthetical) |
3 Months Ended |
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Mar. 31, 2021
$ / shares
shares
| |
Special dividend (shares) | shares | 0.15389 |
Series C Preferred Stock | |
Preferred stock, dividends, per share, cash paid (usd per share) | $ 0.34478125 |
Series D Preferred Stock | |
Preferred stock, dividends, per share, cash paid (usd per share) | 0.40625 |
Series E Preferred Stock | |
Preferred stock, dividends, per share, cash paid (usd per share) | 0.403125 |
Series F Preferred Stock | |
Preferred stock, dividends, per share, cash paid (usd per share) | $ 0.375 |
Description of the Business |
3 Months Ended |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Customers Bancorp, Inc. (“Customers Bancorp”) is a bank holding company engaged in banking activities through its wholly owned subsidiary, Customers Bank ("the Bank”), collectively referred to as “Customers” herein. Customers Bancorp and its wholly owned subsidiaries, the Bank, and non-bank subsidiaries, serve residents and businesses in Southeastern Pennsylvania (Bucks, Berks, Chester, Philadelphia and Delaware Counties); Harrisburg, Pennsylvania (Dauphin County); Rye Brook, New York (Westchester County); Hamilton, New Jersey (Mercer County); Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire (Rockingham County); Manhattan and Melville, New York; Washington, D.C.; Chicago, Illinois; Dallas, Texas; Orlando, Florida; Wilmington, North Carolina; and nationally for certain loan and deposit products. The Bank has 12 full-service branches and provides commercial banking products, primarily loans and deposits. In addition, Customers Bank also administratively supports loan and other financial products, including equipment finance leases, to customers through its limited-purpose offices in Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; Philadelphia and Lancaster, Pennsylvania; Chicago, Illinois; Dallas, Texas; Orlando, Florida and Wilmington, North Carolina; and other locations. The Bank also serves specialty niche businesses nationwide, including its commercial loans to mortgage banking businesses, commercial equipment financing, SBA lending, specialty lending and consumer loans through relationships with fintech companies. The Bank is subject to regulation of the Pennsylvania Department of Banking and Securities and the Federal Reserve Bank and is periodically examined by those regulatory authorities.
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Significant Accounting Policies and Basis of Presentation |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies and Basis of Presentation | SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The interim unaudited consolidated financial statements have been prepared in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2021 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2021 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2021 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 (the "2021 Form 10-K"). The 2021 Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Restrictions on Cash and Amounts due from Banks; Business Combinations; Investment Securities; Loan Accounting Framework; Loans Held for Sale and Loans at Fair Value; Loans Receivable - Mortgage Warehouse, at Fair Value; Loans Receivable, PPP; Loans and Leases Receivable; PCD Loans and Leases; ACL; Goodwill and Other Intangible Assets; FHLB, Federal Reserve Bank, and Other Restricted Stock; OREO; BOLI; Bank Premises and Equipment; Lessor and Lessee Operating Leases; Treasury Stock; Income Taxes; Share-Based Compensation; Transfer of Financial Assets; Derivative Instruments and Hedging; Comprehensive Income (Loss); EPS; and Loss Contingencies. There have been no material changes to Customers Bancorp's significant accounting policies noted above for the three months ended March 31, 2022. Customers Bancorp completed the divestiture of BankMobile Technologies, Inc., the technology arm of its BankMobile segment, to MFAC Merger Sub Inc., an indirect wholly-owned subsidiary of MFAC on January 4, 2021. Following the completion of the divestiture of BMT, BankMobile's serviced deposits and loans and the related net interest income have been combined with Customers’ financial condition and the results of operations as a single reportable segment. BMT's operating results and associated cash flows have been presented as "Discontinued operations" within the accompanying consolidated financial statements and prior period amounts have been reclassified to conform with the current period presentation. See – DISCONTINUED OPERATIONS for additional information. Accounting and Reporting Considerations related to COVID-19 Accounting for PPP Loans In April 2020, Customers began originating loans to qualified small businesses under the PPP administered by the SBA. The PPP loans are fully guaranteed by the SBA and may be eligible for forgiveness by the SBA to the extent the proceeds are used for payroll and other permitted purposes in accordance with the requirements of the PPP. These loans carry a fixed rate of 1.00% and terms of two or five years, if not forgiven, in whole or in part. Payments are deferred for the first six months of the loan. The loans are 100% guaranteed by the SBA. The SBA pays the originating bank a processing fee ranging from 1% to 5% based on the size of the loan. On December 27, 2020, the CAA was signed into law, including Division N, Title III, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, which provided $284 billion in additional funding for the SBA's PPP for small businesses affected by the COVID-19 pandemic. On March 11, 2021, the American Rescue Plan Act of 2021 was enacted expanding eligibility for first and second round of PPP loans and revising the exclusions from payroll costs for purposes of loan forgiveness. The second round of PPP loans have the same general loan terms as the first round, and a processing fee of up to $2,500 per loan of less than $50,000, and 1% to 3% for loans greater than $50,000. Customers classified the PPP loans as held for investment and these loans are carried at amortized cost and interest income is recognized using the interest method. The origination fees, net of direct origination costs, are deferred and recognized as an adjustment to the yield of the related loans over their contractual life using the interest method. Customers has elected to not estimate prepayments as a policy election. No ACL has been recognized for PPP loans as these loans are 100% guaranteed by the SBA. See NOTE 8 – LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES for additional information. Loan Modifications Section 4013 of the CARES Act, as amended by the CAA, gave entities temporary relief from the accounting and disclosure requirements for TDRs. In addition, on April 7, 2020, certain regulatory banking agencies issued an interagency statement that offered practical expedients for evaluating whether loan modifications in response to the COVID-19 pandemic were TDRs. Customers applied Section 4013 of the CARES Act and the interagency statement in connection with applicable modifications. For modifications that qualified under either the CARES Act or the interagency statement, TDR accounting and reporting was suspended. These modifications generally involved principal and/or interest payment deferrals for a period of 90 days at a time and could be extended to six months or longer for modifications that qualified under the Section 4013 of the CARES Act, as amended, if requested by the borrower as long as the reason was still related to COVID-19. These modified loans were not reported as past due or nonaccrual during the deferral period. See NOTE 8 – LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES for additional information. Recently Issued Accounting Standards Presented below are recently issued accounting standards that Customers has adopted as well as those that the FASB has issued but are not yet effective. Accounting Standards Adopted in 2022
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS On January 4, 2021, Customers Bancorp completed the divestiture of BMT, the technology arm of its BankMobile segment, to MFAC Merger Sub Inc., an indirect wholly-owned subsidiary of MFAC, pursuant to an Agreement and Plan of Merger, dated August 6, 2020, by and among MFAC, MFAC Merger Sub Inc., BMT, Customers Bank, the sole stockholder of BMT, and Customers Bancorp, the parent bank holding company for Customers Bank (as amended on November 2, 2020 and December 8, 2020). Following the completion of the divestiture of BMT, BankMobile's serviced deposits and loans and the related net interest income have been combined with Customers' financial condition and the results of operations as a single reportable segment. Customers received cash consideration of $23.1 million upon closing of the divestiture and $3.7 million of additional cash consideration in May 2021. Upon closing of the divestiture, the holders of Customers Bancorp's common stock who held their shares as of the close of business on December 18, 2020 became entitled to receive an aggregate of 4,876,387 shares of BM Technologies' common stock. Customers distributed 0.15389 shares of BM Technologies common stock for each share of Customers Bancorp's common stock held as of the close of business on December 18, 2020 as special dividends. Certain team members of BMT also received 1,348,748 restricted shares of BM Technologies' common stock in the form of severance payments. The total stock consideration from the divestiture that were distributed to holders of Customers Bancorp's common stock and certain BMT team members represented 52% of the outstanding common stock of BM Technologies at the closing date of the divestiture. The sale of BMT was accounted for as a sale of non-controlling interest and the merger between BMT and MFAC was accounted for as a reverse recapitalization as BMT was considered to be the accounting acquirer. Upon closing of the transaction, Customers had no remaining investment in BM Technologies. BMT's historical financial results for periods prior to the divestiture are reflected in Customers Bancorp’s consolidated financial statements as discontinued operations. BMT's operating results and associated cash flows have been presented as "Discontinued operations" within the accompanying consolidated financial statements and prior period amounts have been reclassified to conform with the current period presentation. The following summarized financial information related to BMT has been segregated from continuing operations and reported as discontinued operations for the periods presented.
In connection with the divestiture, Customers entered into various agreements with BM Technologies, including a transition services agreement, software license agreement, deposit servicing agreement, non-competition agreement and loan agreement for periods ranging from to ten years. Customers incurred expenses of $17.8 million and $13.7 million, respectively, to BM Technologies under the deposit servicing agreement, included within the technology, communication and bank operations expense in the income from continuing operations during the three months ended March 31, 2022 and 2021. Customers held $2.2 billion and $1.8 billion of deposits serviced by BM Technologies as of March 31, 2022 and December 31, 2021, respectively. The loan agreement with BM Technologies was terminated early in November 2021. The transition services agreement with BM Technologies, as amended, expired on March 31, 2022.
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Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The following are the components and results of Customers' earnings (loss) per common share calculations for the periods presented.
The following are securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because either the performance conditions for certain of the share-based compensation awards have not been met or to do so would have been anti-dilutive for the periods presented.
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Changes in Accumulated Other Comprehensive Income (Loss) By Component |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT The following tables present the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2022 and 2021. Amounts in parentheses indicate reductions to AOCI.
(1)Reclassification amounts for AFS debt securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. (2)Reclassification amounts for cash flow hedges are reported as interest expense for the applicable hedged items or loss on cash flow hedge derivative terminations on the consolidated statements of income.
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Investment Securities |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of March 31, 2022 and December 31, 2021 are summarized as follows:
(1)Accrued interest on AFS debt securities totaled $14.3 million and $11.0 million at March 31, 2022 and December 31, 2021, respectively, and is included in accrued interest receivable on the consolidated balance sheet. (2)Includes corporate securities issued by domestic bank holding companies. (3)Includes both taxable and non-taxable municipal securities. (4)Includes perpetual preferred stock issued by domestic banks and domestic bank holding companies and equity securities issued by fintech companies, without a readily determinable fair value, and CRA-qualified mutual fund shares at March 31, 2022 and December 31, 2021. No impairments or measurement adjustments have been recorded on the equity securities without a readily determinable fair value since acquisition. In June 2021, Customers sold all of the outstanding shares in CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd., which held the equity securities issued by a foreign entity, for $3.8 million, and recognized $2.8 million in loss on sale of foreign subsidiaries within non-interest income on the consolidated statement of income. During the three months ended March 31, 2021, Customers recognized unrealized gains of $1.0 million on its equity securities. These unrealized gains and losses are reported as unrealized gain (loss) on investment securities within non-interest income on the consolidated statements of income. Customers' transactions with unconsolidated VIEs include sales of consumer installment loans and investments in the securities issued by the VIEs. Customers is not the primary beneficiary of the VIEs because Customers has no right to make decisions that will most significantly affect the economic performance of the VIEs. Customers' continuing involvement with the unconsolidated VIEs is not significant. Customers' continuing involvement is not considered to be significant where Customers only invests in securities issued by the VIE and was not involved in the design of the VIE or where Customers has transferred financial assets to the VIE for only cash consideration. Customers' investments in the securities issued by the VIEs are classified as AFS debt securities on the consolidated balance sheets, and represent Customers' maximum exposure to loss. Proceeds from the sale of AFS securities were $156.0 million and $353.9 million for the three months ended March 31, 2022 and 2021, respectively. Gross realized gains and realized losses from the sale of AFS debt securities were $2.0 million and $1.0 million for the three months ended March 31, 2022, respectively. Gross realized gains from the sale of AFS debt securities were $23.6 million for the three months ended March 31, 2021. These gains (losses) were determined using the specific identification method and were reported as gain (loss) on sale of investment securities within non-interest income on the consolidated statements of income. The following table presents debt securities by stated maturity. Debt securities backed by mortgages and other assets have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date:
Gross unrealized losses and fair value of Customers' AFS debt securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021 were as follows:
At March 31, 2022, there were 160 AFS debt securities with unrealized losses in the less-than-twelve-months category and 15 AFS debt securities with unrealized loss in the twelve-months-or-more category. Except for the four asset-backed securities where there was a deterioration in future estimated cash flows as further discussed below, the unrealized losses were principally due to changes in market interest rates that resulted in a negative impact on the respective securities' fair value and are expected to be recovered when market prices recover or at maturity. Customers does not intend to sell any of the 175 securities, and it is not more likely than not that Customers will be required to sell any of the 175 securities before recovery of the amortized cost basis. At December 31, 2021, there were 117 AFS debt securities in an unrealized loss position. Customers recorded an allowance for credit losses on four asset-backed securities where there was a deterioration in future estimated cash flows during the three months ended March 31, 2022. A discounted cash flow approach is used to determine the amount of the allowance. The cash flows expected to be collected, after considering expected prepayments, are discounted at the original effective interest rate. The amount of the allowance is limited to the difference between the amortized cost basis of the security and its estimated fair value. The following table presents the activity in the allowance for credit losses on AFS debt securities, by major security type:
At March 31, 2022 and December 31, 2021, Customers Bank had pledged investment securities aggregating $16.9 million and $11.3 million in fair value, respectively, as collateral primarily for an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities. At March 31, 2022 and December 31, 2021, no securities holding of any one issuer, other than the U.S. government and its agencies, amounted to greater than 10% of shareholders' equity.
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Loans Held for Sale |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables Held-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | LOANS HELD FOR SALE The composition of loans held for sale as of March 31, 2022 and December 31, 2021 was as follows:
Total loans held for sale as of March 31, 2022 and December 31, 2021 included NPLs of $0.5 million.
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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases | LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES The following table presents loans and leases receivable as of March 31, 2022 and December 31, 2021.
(1)Includes direct finance equipment leases of $150.7 million and $146.5 million at March 31, 2022 and December 31, 2021, respectively. (2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(22.8) million and $(52.0) million at March 31, 2022 and December 31, 2021, respectively. Customers' total loans and leases receivable portfolio includes loans receivable which are reported at fair value based on an election made to account for these loans at fair value and loans and leases receivable which are predominately reported at their outstanding unpaid principal balance, net of charge-offs and deferred costs and fees and unamortized premiums and discounts and are evaluated for impairment. The total amount of accrued interest recorded for total loans was $80.7 million and $81.6 million at March 31, 2022 and December 31, 2021, respectively, and is presented in accrued interest receivable in the consolidated balance sheet. At March 31, 2022 and December 31, 2021, there were $31.8 million and $38.9 million of individually evaluated loans that were collateral-dependent, respectively. Substantially all individually evaluated loans are collateral-dependent and consisted primarily of commercial and industrial, commercial real estate, and residential real estate loans. Collateral-dependent commercial and industrial loans were secured by accounts receivable, inventory and equipment; collateral-dependent commercial real estate loans were secured by commercial real estate assets; and residential real estate loans were secured by residential real estate assets. Loans receivable, mortgage warehouse, at fair value Mortgage warehouse loans consist of commercial loans to mortgage companies. These mortgage warehouse lending transactions are subject to master repurchase agreements. As a result of the contractual provisions, for accounting purposes, control of the underlying mortgage loan has not transferred and the rewards and risks of the mortgage loans are not assumed by Customers. The mortgage warehouse loans are designated as loans held for investment and reported at fair value based on an election made to account for the loans at fair value. Pursuant to the agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded mortgage loans and receives proceeds directly from third party investors when the underlying mortgage loans are sold into the secondary market. The fair value of the mortgage warehouse loans is estimated as the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The interest rates on these loans are variable, and the lending transactions are short-term, with an average life under 30 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. At March 31, 2022 and December 31, 2021, all of Customers' commercial mortgage warehouse loans were current in terms of payment. As these loans are reported at their fair value, they do not have an ACL and are therefore excluded from ACL-related disclosures. Loans receivable, PPP Customers had $2.2 billion and $3.3 billion of PPP loans outstanding as of March 31, 2022 and December 31, 2021, respectively, which are fully guaranteed by the SBA and earn a fixed interest rate of 1.00%. Customers recognized interest income, including origination fees, of $36.9 million and $38.8 million for the three months ended March 31, 2022 and 2021, respectively. PPP loans include an embedded credit enhancement from the SBA, which guarantees 100% of the principal and interest owed by the borrower provided that the SBA's eligibility criteria are met. As a result, the eligible PPP loans do not have an ACL and are therefore excluded from ACL-related disclosures. Loans and leases receivable The following tables summarize loans and leases receivable by loan and lease type and performance status as of March 31, 2022 and December 31, 2021:
(1)Includes past due loans and leases that are accruing interest because collection is considered probable. (2)Loans and leases where next payment due is less than 30 days from the report date. The tables exclude PPP loans of $2.2 billion, of which $37.8 million were 30-59 days past due and $88.3 million were 60 days or more past due as of March 31, 2022, and PPP loans of $3.3 billion, of which $6.3 million were 30-59 days past due and $21.8 million were 60 days or more past due as of December 31, 2021. Claims for guarantee payments are submitted to the SBA for eligible PPP loans more than 60 days past due. (3)Includes PCD loans of $9.4 million and $9.9 million at March 31, 2022 and December 31, 2021, respectively. Nonaccrual Loans and Leases The following table presents the amortized cost of loans and leases held for investment on nonaccrual status.
(1) Presented at amortized cost basis. Interest income recognized on nonaccrual loans was insignificant for the three months ended March 31, 2022 and 2021. Accrued interest reversed when the loans went to nonaccrual status was insignificant during the three months ended March 31, 2022 and 2021, respectively. Allowance for credit losses on loans and leases The changes in the ACL on loans and leases for the three months ended March 31, 2022 and 2021, and the loans and leases and ACL by loan and lease type are presented in the tables below.
Troubled Debt Restructurings At March 31, 2022 and December 31, 2021, there were $16.6 million and $16.5 million, respectively, in loans reported as TDRs. TDRs are reported as impaired loans in the quarter of their restructuring and are evaluated to determine whether they should be placed on non- accrual status. In subsequent quarters, a TDR may be returned to accrual status if it satisfies a minimum performance requirement of six months, however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Customers had no lease receivables that had been restructured as a TDR as of March 31, 2022 and December 31, 2021, respectively. Section 4013 of the CARES Act, as amended by the CAA, gave entities temporary relief from the accounting and disclosure requirements for TDRs. In addition, on April 7, 2020, certain regulatory banking agencies issued an interagency statement that offered practical expedients for evaluating whether loan modifications in response to the COVID-19 pandemic were TDRs. For COVID-19 related loan modifications which met the loan modification criteria under either the CARES Act or the criteria specified by the regulatory agencies, Customers elected to suspend TDR accounting for such loan modifications. There were no commercial deferments related to COVID-19 at March 31, 2022 and December 31, 2021. Consumer deferments related to COVID-19 were $3.3 million and $6.1 million at March 31, 2022 and December 31, 2021, respectively. The following table presents loans modified in a TDR by type of concession for the three months ended March 31, 2022 and 2021. There were no modifications that involved forgiveness of debt for the three months ended March 31, 2022 and 2021.
(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions. As of March 31, 2022 and December 31, 2021, there were no commitments to lend additional funds to debtors whose loans have been modified in TDRs. The following table presents, by loan type, the number of loans modified in TDRs and the related recorded investment, for which there was a payment default within twelve months following the modification:
Loans modified in TDRs 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 ACL. Credit Quality Indicators The ACL represents management's estimate of expected losses in Customers' loans and leases receivable portfolio, excluding commercial mortgage warehouse loans reported at fair value pursuant to a fair value option election and PPP loans receivable. Multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, and construction loans are rated based on an internally assigned risk rating system which is assigned at the time of loan origination and reviewed on a periodic, or on an “as needed” basis. Residential real estate loans, manufactured housing and installment loans are evaluated based on the payment activity of the loan. To facilitate the monitoring of credit quality within the multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, and construction loan portfolios, and as an input in the ACL lifetime loss rate model for the commercial and industrial loan portfolio, the Bank utilizes the following categories of risk ratings: pass/satisfactory (includes risk rating 1 through 6), special mention, substandard, doubtful, and loss. The risk rating categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers who do not have identified potential or well-defined weaknesses and for whom there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. While assigning risk ratings involves judgment, the risk-rating process allows management to identify riskier credits in a timely manner and allocate the appropriate resources to manage those loans and leases. The 2021 Form 10-K describes Customers Bancorp’s risk rating grades. Risk ratings are not established for certain consumer loans, including residential real estate, home equity, manufactured housing, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based upon aggregate payment history through the monitoring of delinquency levels and trends and are classified as performing and non-performing. The following tables present the credit ratings of loans and leases receivable as of March 31, 2022 and December 31, 2021.
Loan Purchases and Sales Purchases and sales of loans were as follows for the three months ended March 31, 2022 and 2021:
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 98.1% and 101.0% of loans outstanding for the three months ended March 31, 2022 and 2021, respectively. (2)Installment loan purchases for the three months ended March 31, 2022 and 2021 consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660. (3)For the three months ended March 31, 2022 and 2021, loan sales resulted in net gains of $2.1 million and $1.6 million, respectively, included in gain (loss) on sale of SBA and other loans and mortgage banking income in the consolidated statements of income. Loans Pledged as Collateral Customers has pledged eligible real estate and commercial and industrial loans as collateral for borrowings from the FHLB and FRB in the amount of $3.6 billion and $3.7 billion at March 31, 2022 and December 31, 2021, respectively. No PPP loans were pledged to the FRB in accordance with borrowing from the PPPLF at March 31, 2022 and December 31, 2021.
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Leases | LEASES Lessee Customers has operating leases for its branches, certain LPOs, and administrative offices, with remaining lease terms ranging between 3 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers is the lessee. Most lease agreements consist of initial lease terms ranging between 1 and 5 years, with options to renew the leases or extend the term up to 15 years at Customers' sole discretion. Some operating leases include variable lease payments that are based on an index or rate, such as the CPI. Variable lease payments are not included in the liability or ROU asset and are recognized in the period in which the obligation for those payments are incurred. Customers' operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. Pursuant to these agreements, Customers does not have any commitments that would meet the definition of a finance lease. As most of Customers' operating leases do not provide an implicit rate, Customers utilized its incremental borrowing rate when determining the present value of lease payments. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location:
The following table summarizes operating lease cost and its corresponding income statement location for the periods presented:
(1) There were no variable lease costs for the three months ended March 31, 2022 and 2021, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows at March 31, 2022:
Customers does not have leases where it is involved with the construction or design of an underlying asset. Customers has a signed lease that has not yet commenced as of March 31, 2022 with future minimum lease payments of $7.1 million. Cash paid pursuant to the operating lease liability was $1.2 million and $1.1 million for the three months ended March 31, 2022 and 2021, respectively. These payments were reported as cash flows used in operating activities in the statement of cash flows. The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at March 31, 2022 and December 31, 2021:
Equipment Lessor CCF is a wholly-owned subsidiary of Customers Bank and is referred to as the Equipment Finance Group. CCF goes to market through the following origination platforms: vendors, intermediaries, direct and capital markets. CCF is primarily focused on serving the following segments: transportation, construction (includes crane and utility), marine, franchise, general manufacturing (includes machine tool), helicopter/fixed wing, solar, packaging, plastics and food processing. Terms typically range from 24 months to 120 months. CCF offers the following products: Loans, Capital Lease, PUT, TRAC, Split-TRAC, and FMV. Direct finance leases are included in commercial and industrial loans and leases receivable. The residual values are established by utilizing internally developed analyses, external studies, and/or third-party appraisals to establish a residual position. Expected credit losses on direct financing leases and the related estimated residual values are included in the ACL on loans and leases. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges and are presented in other assets. The depreciation expense of the leased assets is recognized on a straight-line basis over the contractual term of the leases up to the expected residual value. The expected residual value and, accordingly, the monthly depreciation expense, may change throughout the term of the lease. Operating lease rental income for leased assets is recognized in commercial lease income on a straight-line basis over the lease term. Customers periodically reviews its operating leased assets for impairment. An impairment loss is recognized if the carrying amount of the operating leased asset exceeds its fair value and is not recoverable. The carrying amount of operating leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the equipment. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at March 31, 2022 and December 31, 2021:
COVID-19 Impact on Leases Customers granted concessions to lessees as a result of the business impact of the COVID-19 pandemic. Customers had no finance or operating leases with payment deferments at March 31, 2022. At December 31, 2021, the book values of finance and operating leases with payment deferments were $22.8 million and $7.4 million, respectively. The concessions did not have a material impact on interest income from leases for the three months ended March 31, 2022 and 2021. Additionally, Customers did not receive any concessions on its operating leases in which Customers is the lessee.
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Leases | LEASES Lessee Customers has operating leases for its branches, certain LPOs, and administrative offices, with remaining lease terms ranging between 3 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers is the lessee. Most lease agreements consist of initial lease terms ranging between 1 and 5 years, with options to renew the leases or extend the term up to 15 years at Customers' sole discretion. Some operating leases include variable lease payments that are based on an index or rate, such as the CPI. Variable lease payments are not included in the liability or ROU asset and are recognized in the period in which the obligation for those payments are incurred. Customers' operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. Pursuant to these agreements, Customers does not have any commitments that would meet the definition of a finance lease. As most of Customers' operating leases do not provide an implicit rate, Customers utilized its incremental borrowing rate when determining the present value of lease payments. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location:
The following table summarizes operating lease cost and its corresponding income statement location for the periods presented:
(1) There were no variable lease costs for the three months ended March 31, 2022 and 2021, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows at March 31, 2022:
Customers does not have leases where it is involved with the construction or design of an underlying asset. Customers has a signed lease that has not yet commenced as of March 31, 2022 with future minimum lease payments of $7.1 million. Cash paid pursuant to the operating lease liability was $1.2 million and $1.1 million for the three months ended March 31, 2022 and 2021, respectively. These payments were reported as cash flows used in operating activities in the statement of cash flows. The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at March 31, 2022 and December 31, 2021:
Equipment Lessor CCF is a wholly-owned subsidiary of Customers Bank and is referred to as the Equipment Finance Group. CCF goes to market through the following origination platforms: vendors, intermediaries, direct and capital markets. CCF is primarily focused on serving the following segments: transportation, construction (includes crane and utility), marine, franchise, general manufacturing (includes machine tool), helicopter/fixed wing, solar, packaging, plastics and food processing. Terms typically range from 24 months to 120 months. CCF offers the following products: Loans, Capital Lease, PUT, TRAC, Split-TRAC, and FMV. Direct finance leases are included in commercial and industrial loans and leases receivable. The residual values are established by utilizing internally developed analyses, external studies, and/or third-party appraisals to establish a residual position. Expected credit losses on direct financing leases and the related estimated residual values are included in the ACL on loans and leases. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges and are presented in other assets. The depreciation expense of the leased assets is recognized on a straight-line basis over the contractual term of the leases up to the expected residual value. The expected residual value and, accordingly, the monthly depreciation expense, may change throughout the term of the lease. Operating lease rental income for leased assets is recognized in commercial lease income on a straight-line basis over the lease term. Customers periodically reviews its operating leased assets for impairment. An impairment loss is recognized if the carrying amount of the operating leased asset exceeds its fair value and is not recoverable. The carrying amount of operating leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the equipment. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at March 31, 2022 and December 31, 2021:
COVID-19 Impact on Leases Customers granted concessions to lessees as a result of the business impact of the COVID-19 pandemic. Customers had no finance or operating leases with payment deferments at March 31, 2022. At December 31, 2021, the book values of finance and operating leases with payment deferments were $22.8 million and $7.4 million, respectively. The concessions did not have a material impact on interest income from leases for the three months ended March 31, 2022 and 2021. Additionally, Customers did not receive any concessions on its operating leases in which Customers is the lessee.
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Leases | LEASES Lessee Customers has operating leases for its branches, certain LPOs, and administrative offices, with remaining lease terms ranging between 3 months and 8 years. These operating leases comprise substantially all of Customers' obligations in which Customers is the lessee. Most lease agreements consist of initial lease terms ranging between 1 and 5 years, with options to renew the leases or extend the term up to 15 years at Customers' sole discretion. Some operating leases include variable lease payments that are based on an index or rate, such as the CPI. Variable lease payments are not included in the liability or ROU asset and are recognized in the period in which the obligation for those payments are incurred. Customers' operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. Pursuant to these agreements, Customers does not have any commitments that would meet the definition of a finance lease. As most of Customers' operating leases do not provide an implicit rate, Customers utilized its incremental borrowing rate when determining the present value of lease payments. The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location:
The following table summarizes operating lease cost and its corresponding income statement location for the periods presented:
(1) There were no variable lease costs for the three months ended March 31, 2022 and 2021, and sublease income for operating leases is immaterial. Maturities of non-cancelable operating lease liabilities were as follows at March 31, 2022:
Customers does not have leases where it is involved with the construction or design of an underlying asset. Customers has a signed lease that has not yet commenced as of March 31, 2022 with future minimum lease payments of $7.1 million. Cash paid pursuant to the operating lease liability was $1.2 million and $1.1 million for the three months ended March 31, 2022 and 2021, respectively. These payments were reported as cash flows used in operating activities in the statement of cash flows. The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at March 31, 2022 and December 31, 2021:
Equipment Lessor CCF is a wholly-owned subsidiary of Customers Bank and is referred to as the Equipment Finance Group. CCF goes to market through the following origination platforms: vendors, intermediaries, direct and capital markets. CCF is primarily focused on serving the following segments: transportation, construction (includes crane and utility), marine, franchise, general manufacturing (includes machine tool), helicopter/fixed wing, solar, packaging, plastics and food processing. Terms typically range from 24 months to 120 months. CCF offers the following products: Loans, Capital Lease, PUT, TRAC, Split-TRAC, and FMV. Direct finance leases are included in commercial and industrial loans and leases receivable. The residual values are established by utilizing internally developed analyses, external studies, and/or third-party appraisals to establish a residual position. Expected credit losses on direct financing leases and the related estimated residual values are included in the ACL on loans and leases. Leased assets under operating leases are carried at amortized cost net of accumulated depreciation and any impairment charges and are presented in other assets. The depreciation expense of the leased assets is recognized on a straight-line basis over the contractual term of the leases up to the expected residual value. The expected residual value and, accordingly, the monthly depreciation expense, may change throughout the term of the lease. Operating lease rental income for leased assets is recognized in commercial lease income on a straight-line basis over the lease term. Customers periodically reviews its operating leased assets for impairment. An impairment loss is recognized if the carrying amount of the operating leased asset exceeds its fair value and is not recoverable. The carrying amount of operating leased assets is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the lease payments and the estimated residual value upon the eventual disposition of the equipment. The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at March 31, 2022 and December 31, 2021:
COVID-19 Impact on Leases Customers granted concessions to lessees as a result of the business impact of the COVID-19 pandemic. Customers had no finance or operating leases with payment deferments at March 31, 2022. At December 31, 2021, the book values of finance and operating leases with payment deferments were $22.8 million and $7.4 million, respectively. The concessions did not have a material impact on interest income from leases for the three months ended March 31, 2022 and 2021. Additionally, Customers did not receive any concessions on its operating leases in which Customers is the lessee.
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | BORROWINGS Short-term debt Short-term debt at March 31, 2022 and December 31, 2021 was as follows:
The following is a summary of additional information relating to Customers' short-term debt:
(1) For the three months ended March 31, 2022. (2) For the year ended December 31, 2021. At March 31, 2022 and December 31, 2021, Customers Bank had aggregate availability under federal funds lines totaling $0.7 billion and $1.3 billion, respectively. Long-term debt FHLB and FRB advances There were no long-term advances outstanding with the FHLB or FRB at March 31, 2022 and December 31, 2021. 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 or purchased by an eligible institution, may be pledged as collateral to the Federal Reserve Banks. During the three months ended September 30, 2021, Customers repaid the PPPLF advances. No new advances are available from the PPPLF after July 30, 2021. The maximum borrowing capacity with the FHLB and FRB at March 31, 2022 and December 31, 2021 was as follows:
(1) Amounts reported in the above table exclude borrowings under the PPPLF, which are limited to the unpaid principal balance of the loans originated under the PPP. Customers had no borrowings under the PPPLF at March 31, 2022 and December 31, 2021. Senior and Subordinated Debt Long-term senior notes and subordinated debt at March 31, 2022 and December 31, 2021 were as follows:
(1)The senior notes will bear an annual fixed rate of 2.875% until August 15, 2026. From August 15, 2026 until maturity, the notes will bear an annual interest rate equal to a benchmark rate, which is expected to be the three-month term SOFR, plus 235 basis points. Customers Bancorp has the ability to call the senior notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after August 15, 2026. (2)The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. (3)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. (4)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.
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Shareholders' Equity |
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SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY Common Stock On August 25, 2021, the Board of Directors of Customers Bancorp authorized the Share Repurchase Program to repurchase up to 3,235,326 shares of the Company's common stock (representing 10% of the Company’s outstanding shares of common stock on June 30, 2021). The term of the Share Repurchase Program will extend for one year from September 27, 2021, unless earlier terminated. Purchases of shares under the Share Repurchase Program may be executed through open market purchases, privately negotiated transactions, through the use of Rule 10b5-1 plans, or otherwise. The exact number of shares, timing for such purchases, and the price and terms at and on which such purchases are to be made will be at the discretion of the Company and will comply with all applicable regulatory limitations. Customers Bancorp purchased 115,324 shares of its common stock for $6.3 million under the Share Repurchase Program on various dates during the three months ended March 31, 2022. Preferred Stock As of March 31, 2022, Customers Bancorp has two series of preferred stock outstanding. On September 15, 2021, Customers redeemed all of the outstanding shares of Series C and Series D Preferred Stock for an aggregate payment of $82.5 million, at a redemption price of $25.00 per share. The redemption price paid in excess of the carrying value of Series C and Series D Preferred Stock of $2.8 million is included as a loss on redemption of preferred stock in the consolidated statement of income for the three months ended September 30, 2021. After giving effect to the redemption, no shares of the Series C and Series D Preferred Stock remained outstanding. The table below summarizes Customers' issuances of preferred stock and the dividends paid per share.
(1) For the three months ended March 31, 2022. On March 15, 2021, Series D Preferred Stock became floating at three-month LIBOR plus 5.09%, compared to a fixed rate of 6.50%. On June 15, 2021, the Series E Preferred Stock became floating at three-month LIBOR plus 5.14%, compared to a fixed rate of 6.45%. On December 15, 2021, the Series F Preferred Stock became floating at three-month LIBOR plus 4.762%, compared to a fixed rate of 6.00%.
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Regulatory Capital |
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Regulatory Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital | REGULATORY CAPITAL The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on Customers' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. In first quarter 2020, U.S federal banking regulatory agencies permitted banking organizations to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 31, 2020, the U.S. federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows banking organizations to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. Customers has elected to adopt the interim final rule, which is reflected in the regulatory capital data presented below. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of March 31, 2022, our regulatory capital ratios reflected 75%, or $46.2 million, benefit associated with the CECL transition provisions. In April 2020, the U.S. federal banking regulatory agencies issued an interim final rule that permits banks to exclude the impact of participating in the SBA PPP program in their regulatory capital ratios. Specifically, PPP loans are zero percent risk weighted and a bank can exclude all PPP loans pledged as collateral to the PPPLF from its average total consolidated assets for purposes of calculating the Tier 1 capital to average assets ratio (i.e. a leverage ratio). Customers applied this regulatory guidance in the calculation of its regulatory capital ratios presented below. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, and total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At March 31, 2022 and December 31, 2021, the Bank and the Bancorp satisfied all capital requirements to which they were subject. Generally, to comply with the regulatory definition of adequately capitalized, or well capitalized, respectively, or to comply with the Basel III capital requirements, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table:
The Basel III Capital Rules require that we maintain a 2.500% capital conservation buffer with respect to each of common equity Tier 1, Tier 1 and total capital to risk-weighted assets, which provides for capital levels that exceed the minimum risk-based capital adequacy requirements. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers.
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Disclosures About Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosures About Fair Value of Financial Instruments | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS Customers uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. ASC 825, Financial Instruments, requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and a willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require adjustments to inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used to estimate the fair values of Customers' financial instruments as of March 31, 2022 and December 31, 2021: Financial Instruments Recorded at Fair Value on a Recurring Basis Investment securities: The fair values of equity securities with a readily determinable fair value, AFS debt securities and debt securities reported at fair value based on a fair value option election are determined by obtaining quoted market prices on nationally recognized and foreign securities exchanges (Level 1), quoted prices in markets that are not active (Level 2), 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 internally and externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). When quoted market prices are not available, Customers employs an independent pricing service that utilizes matrix pricing to calculate fair value. Such fair value measurements consider observable data such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayments speeds, credit information, and respective terms and conditions for debt instruments. Management maintains procedures to monitor the pricing service's results and has an established process to challenge their valuations, or methodologies, that appear unusual or unexpected. Customers also utilizes internally and externally developed models that use unobservable inputs due to limited or no market activity of the instrument. These models use unobservable inputs that are inherently judgmental and reflect our best estimates of the assumptions a market participant would use to calculate fair value. Certain unobservable inputs in isolation may have either a directionally consistent or opposite impact on the fair value of the instrument for a given change in that input. When multiple inputs are used within the valuation techniques, a change in one input in a certain direction may be offset by an opposite change from another input. These assets are classified as Level 1, 2 or 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Residential mortgage loans (fair value option): Customers generally estimates the fair values of residential mortgage loans held for sale based on commitments on hand from investors within the secondary market for loans with similar characteristics. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans receivable - Commercial mortgage warehouse loans (fair value option): The fair value of commercial mortgage warehouse loans is the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The loan is used by mortgage companies as short-term bridge financing between the funding of the mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not generally expected to be recognized because at inception of the transaction the underlying mortgage loans have already been sold to an approved investor. Additionally, the interest rate is variable, and the transaction is short-term, with an average life of under 30 days from purchase to sale. These assets are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Derivatives (assets and liabilities): The fair values of interest rate swaps, interest rate caps and credit derivatives are determined using models that incorporate readily observable market data into a market standard methodology. This methodology nets the discounted future cash receipts and the discounted expected cash payments. The discounted variable cash receipts and 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 Customers and its counterparties. These assets and liabilities are classified as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair values of the residential mortgage loan commitments are derived from the estimated fair values that can be generated when the underlying mortgage loan is sold in the secondary market. Customers generally uses commitments on hand from third party investors to estimate an exit price and adjusts for the probability of the commitment being exercised based on Customers' internal experience (i.e., pull-through rate). These assets and liabilities are classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Derivative assets and liabilities are presented in "Other assets" and "Accrued interest payable and other liabilities" on the consolidated balance sheet. Financial Instruments Recorded at Fair Value on a Nonrecurring Basis Collateral-dependent loans: Collateral-dependent loans are those loans that are accounted for under ASC 326, Financial Instruments - Credit Losses ("ASC 326"), in which the Bank has measured impairment generally based on the fair value of the loan’s collateral or DCF analysis. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans, DCF based upon the expected proceeds, sales agreements or letters of intent with third parties. These assets are generally classified as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The following information should not be interpreted as an estimate of Customers' fair value in its entirety because fair value calculations are only provided for a limited portion of Customers' assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making these estimates, comparisons between Customers' disclosures and those of other companies may not be meaningful. The estimated fair values of Customers' financial instruments at March 31, 2022 and December 31, 2021 were as follows.
The changes in residential mortgage loan commitments (Level 3 assets) measured at fair value on a recurring basis for the three months ended March 31, 2022 and 2021 are summarized in the tables below. Additional information about residential mortgage loan commitments can be found in NOTE 14 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES.
The changes in asset-backed securities (Level 3 assets) measured at fair value on a recurring basis for the three months ended March 31, 2022 are summarized in the tables below.
There were no transfers between levels during the three months ended March 31, 2022 and 2021. The following table summarizes financial assets and financial liabilities measured at fair value as of March 31, 2022 and December 31, 2021 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. The unobservable Level 3 inputs noted below contain a level of uncertainty that may differ from what is realized in an immediate settlement of the assets. Therefore, Customers may realize a value higher or lower than the current estimated fair value of the assets.
(1)Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. Customers does not generally discount appraisals. Fair value is also estimated based on sale agreements or letters of intent with third parties. (2)Appraisals are adjusted by management for liquidation expenses. The range and weighted average of liquidation expense adjustments are presented as a percentage of the appraisal. (3)Business asset valuation obtained from independent party. (4)Business asset valuations may be adjusted by management for qualitative factors including economic conditions and the condition of the business assets. The range and weighted average of the business asset adjustments are presented as a percent of the business asset valuation.
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the values of which are determined by interest rates. Customers’ derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers’ known or expected cash receipts and its known or expected cash payments principally related to certain borrowings and deposits. Customers also has interest-rate derivatives resulting from an accommodation provided to certain qualifying customers, and therefore, they are not used to manage Customers’ interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest-Rate Risk Customers’ objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in AOCI and subsequently reclassified into earnings in the period that the hedged item affects earnings. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuances of debt and a certain variable-rate deposit relationship. Customers discontinues cash flow hedge accounting if it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in AOCI are reclassified immediately into earnings and any subsequent changes in the fair value of such derivatives are recognized directly in earnings. During the three months ended March 31, 2021, Customers terminated four interest rate derivatives with notional amounts totaling $850 million that were designated as cash flow hedges of interest-rate risk associated with 3-month FHLB advances, and reclassified $25.9 million of the realized losses and accrued interest from AOCI to current earnings because the hedged forecasted transactions were determined to be no longer probable of occurring. Customers hedged its exposure to the variability in future cash flows for a variable-rate deposit, which matured in June 2021. At March 31, 2022 and December 31, 2021, Customers had no interest rate derivative designated as cash flow hedges of interest rate risk. Fair Value Hedges of Benchmark Interest-Rate Risk Customers is exposed to changes in the fair value of certain of its fixed rate AFS debt securities due to changes in the benchmark interest rate. Customers uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate such as the Fed Funds Effective Swap Rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for Customers receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in interest income. At March 31, 2022, Customers had 14 outstanding interest rate derivatives with notional amounts totaling $64.0 million that were designated as fair value hedges of certain AFS debt securities. During the three months ended March 31, 2022, Customers terminated two interest rate derivatives with notional amounts totaling $16.5 million that were designated as fair value hedges together with the sale of hedged AFS debt securities. During the three months ended March 31, 2021, Customers terminated seven interest rate derivatives with notional amounts totaling $186.8 million that were designated as fair value hedges together with the sale of hedged AFS debt securities. At December 31, 2021, Customers had 16 outstanding interest rate derivatives with notional amounts totaling $80.5 million designated as fair value hedges. As of March 31, 2022, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges.
Derivatives Not Designated as Hedging Instruments Customers executes interest rate swaps (typically the loan customers will swap a floating-rate loan for a fixed-rate loan) and interest rate caps with commercial banking customers to facilitate their respective risk management strategies. The customer interest rate swaps and interest rate caps are simultaneously offset by interest rate swaps and interest rate caps that Customers executes with a third party in order to minimize interest-rate risk exposure resulting from such transactions. As the interest rate swaps and interest rate caps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and caps and the offsetting third-party market swaps and caps are recognized directly in earnings. At March 31, 2022, Customers had 153 interest rate swaps with an aggregate notional amount of $1.4 billion and 14 interest rate caps with an aggregated notional amount of $263.2 million related to this program. At December 31, 2021, Customers had 153 interest rate swaps with an aggregate notional amount of $1.4 billion and 14 interest rate caps with an aggregate notional amount of $264.7 million related to this program. Customers enters into residential mortgage loan commitments in connection with its consumer mortgage banking activities to fund mortgage loans at specified rates and times in the future. These commitments are short-term in nature and generally expire in 30 to 60 days. The residential mortgage loan commitments that relate to the origination of mortgage loans that will be held for sale are considered derivative instruments under applicable accounting guidance and are reported at fair value, with changes in fair value recorded directly in earnings. At March 31, 2022 and December 31, 2021, Customers had an outstanding notional balance of residential mortgage loan commitments of $6.4 million and $8.2 million, respectively. Customers has also purchased and sold credit derivatives to either hedge or participate in the performance risk associated with some of its counterparties. These derivatives are not designated as hedging instruments and are reported at fair value, with changes in fair value reported directly in earnings. At March 31, 2022 and December 31, 2021, Customers had outstanding notional balances of credit derivatives of $129.1 million and $129.9 million, respectively. Fair Value of Derivative Instruments on the Balance Sheet The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the consolidated balance sheets as of March 31, 2022 and December 31, 2021.
Effect of Derivative Instruments on Net Income The following table presents amounts included in the consolidated statements of income related to derivatives designated as fair value hedges and derivatives not designated as hedges for the three months ended March 31, 2022 and 2021.
Effect of Derivative Instruments on Comprehensive Income The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2022 and 2021.
(1) Amounts presented are net of taxes. See NOTE 5 – CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges for the periods presented. (2) Includes loss on cash flow hedge derivative terminations. Credit-risk-related Contingent Features By entering into derivative contracts, Customers is exposed to credit risk. The credit risk associated with derivatives executed with customers is the same as that involved in extending the related loans and is subject to the same standard credit policies. To mitigate the credit-risk exposure to major derivative dealer counterparties, Customers only enters into agreements with those counterparties that maintain credit ratings of high quality or with central clearing parties. Agreements with major derivative dealer counterparties contain provisions whereby default on any of Customers' indebtedness would be considered a default on its derivative obligations. Customers also has entered into agreements that contain provisions under which the counterparty could require Customers to settle its obligations if Customers fails to maintain its status as a well/adequately capitalized institution. As of March 31, 2022, the fair value of derivatives in a net asset position (which includes accrued interest but excludes any adjustment for nonperformance-risk) related to these agreements was $9.6 million. In addition, Customers, which has collateral posting thresholds with certain of these counterparties, had posted $4.1 million of cash as collateral at March 31, 2022. Customers records cash posted as collateral with these counterparties, except with a central clearing entity, as a reduction in the outstanding balance of cash and cash equivalents and an increase in the balance of other assets. Disclosures about Offsetting Assets and Liabilities The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the tables below. Interest rate swaps and interest rate caps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the tables below. Customers has not made a policy election to offset its derivative positions.
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Loss Contingencies |
3 Months Ended |
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Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingencies | LOSS CONTINGENCIES Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the consolidated financial statements that are not currently accrued for. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution may have a material adverse effect on Customers’ results of operations for a particular period, and future changes in circumstances or additional information could result in accruals or resolution in excess of established accruals, which could adversely affect Customers’ results of operations, potentially materially. Specialty’s Café Bakery, Inc. Matter On May 27, 2020, the appointed Chapter 7 Trustee for Specialty’s Café Bakery, Inc. (“Debtor”) filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California. On October 28, 2020, the Trustee, as plaintiff, filed her amended adversary complaint (“Adversary Complaint”) against the Bank and the SBA seeking to avoid and recover for the benefit of the Debtor’s estate and its creditors the payment made by the Debtor to the Bank in the amount of $8.1 million in satisfaction of a PPP loan made by the Bank to the Debtor (the “PPP Loan Payment”). The Trustee sought to avoid and recover the entire PPP Loan Payment from the Bank under the authority provided in 11 U.S.C. §547 and §550, which together permit a trustee of a bankruptcy debtor to avoid and recover, for a more equitable distribution among all creditors, certain transfers made within ninety (90) days before the filing of the bankruptcy petition. On December 2, 2021, the Bank filed a motion for summary judgement, arguing that the Trustee had failed to establish the elements under 11 U.S.C. §547 necessary to recover the PPP Loan Payment and other affirmative defenses to any such recovery. On February 2, 2022, the United States Bankruptcy Court for the Central District of California granted the Bank’s motion for summary judgment, finding that the PPP Loan Payment was not recoverable by the Trustee. The Trustee has elected not to appeal this decision and, on February 23, 2022, the case against the Bank was closed by the United States Bankruptcy Court for the Central District of California.
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Significant Accounting Policies and Basis of Presentation (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The interim unaudited consolidated financial statements have been prepared in conformity with U.S. GAAP and pursuant to the rules and regulations of the SEC. These interim unaudited consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary to present a fair statement of the financial position and the results of operations and cash flows of Customers Bancorp and subsidiaries for the interim periods presented. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been omitted from these interim unaudited consolidated financial statements as permitted by SEC rules and regulations. The December 31, 2021 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2021 consolidated financial statements. Management believes that the disclosures are adequate to present fairly the consolidated financial statements as of the dates and for the periods presented. These interim unaudited consolidated financial statements should be read in conjunction with the 2021 consolidated financial statements of Customers Bancorp and subsidiaries included in Customers' Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 (the "2021 Form 10-K"). The 2021 Form 10-K describes Customers Bancorp’s significant accounting policies, which include its policies on Principles of Consolidation; Cash and Cash Equivalents and Statements of Cash Flows; Restrictions on Cash and Amounts due from Banks; Business Combinations; Investment Securities; Loan Accounting Framework; Loans Held for Sale and Loans at Fair Value; Loans Receivable - Mortgage Warehouse, at Fair Value; Loans Receivable, PPP; Loans and Leases Receivable; PCD Loans and Leases; ACL; Goodwill and Other Intangible Assets; FHLB, Federal Reserve Bank, and Other Restricted Stock; OREO; BOLI; Bank Premises and Equipment; Lessor and Lessee Operating Leases; Treasury Stock; Income Taxes; Share-Based Compensation; Transfer of Financial Assets; Derivative Instruments and Hedging; Comprehensive Income (Loss); EPS; and Loss Contingencies. There have been no material changes to Customers Bancorp's significant accounting policies noted above for the three months ended March 31, 2022.
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Recently Issued Accounting Standards and Accounting Standards Issued But Not Yet Adopted | Recently Issued Accounting Standards Presented below are recently issued accounting standards that Customers has adopted as well as those that the FASB has issued but are not yet effective. Accounting Standards Adopted in 2022
Accounting Standards Issued But Not Yet Adopted
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Fair Value Measurement | Customers uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. ASC 825, Financial Instruments, requires disclosure of the estimated fair value of an entity’s assets and liabilities considered to be financial instruments. For Customers, as for most financial institutions, the majority of its assets and liabilities are considered to be financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and a willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under ASC 820, Fair Value Measurements and Disclosures ("ASC 820"), as explained below. In accordance with ASC 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for Customers' various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, focusing on an exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. The fair value guidance also establishes a fair value hierarchy and describes the following three levels used to classify fair value measurements. Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require adjustments to inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
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Derivatives | Risk Management Objectives of Using Derivatives Customers is exposed to certain risks arising from both its business operations and economic conditions. Customers manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources, and durations of its assets and liabilities. Specifically, Customers enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the values of which are determined by interest rates. Customers’ derivative financial instruments are used to manage differences in the amount, timing, and duration of Customers’ known or expected cash receipts and its known or expected cash payments principally related to certain borrowings and deposits. Customers also has interest-rate derivatives resulting from an accommodation provided to certain qualifying customers, and therefore, they are not used to manage Customers’ interest-rate risk in assets or liabilities. Customers manages a matched book with respect to its derivative instruments used in this customer service in order to minimize its net risk exposure resulting from such transactions. Cash Flow Hedges of Interest-Rate Risk Customers’ objectives in using interest-rate derivatives are to add stability to interest expense and to manage exposure to interest rate movements. To accomplish this objective, Customers primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for Customers making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in AOCI and subsequently reclassified into earnings in the period that the hedged item affects earnings. To date, such derivatives were used to hedge the variable cash flows associated with the forecasted issuances of debt and a certain variable-rate deposit relationship. Customers discontinues cash flow hedge accounting if it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in AOCI are reclassified immediately into earnings and any subsequent changes in the fair value of such derivatives are recognized directly in earnings.
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Significant Accounting Policies and Basis of Presentation (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Presented below are recently issued accounting standards that Customers has adopted as well as those that the FASB has issued but are not yet effective. Accounting Standards Adopted in 2022
Accounting Standards Issued But Not Yet Adopted
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations Income Statement | The following summarized financial information related to BMT has been segregated from continuing operations and reported as discontinued operations for the periods presented.
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Earnings (Loss) Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Earnings (Loss) Per Share | The following are the components and results of Customers' earnings (loss) per common share calculations for the periods presented.
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Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following are securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because either the performance conditions for certain of the share-based compensation awards have not been met or to do so would have been anti-dilutive for the periods presented.
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Changes in Accumulated Other Comprehensive Income (Loss) By Component (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | The following tables present the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2022 and 2021. Amounts in parentheses indicate reductions to AOCI.
(1)Reclassification amounts for AFS debt securities are reported as gain (loss) on sale of investment securities on the consolidated statements of income. (2)Reclassification amounts for cash flow hedges are reported as interest expense for the applicable hedged items or loss on cash flow hedge derivative terminations on the consolidated statements of income.
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Investment Securities (Tables) |
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2022 and December 31, 2021 are summarized as follows:
(1)Accrued interest on AFS debt securities totaled $14.3 million and $11.0 million at March 31, 2022 and December 31, 2021, respectively, and is included in accrued interest receivable on the consolidated balance sheet. (2)Includes corporate securities issued by domestic bank holding companies. (3)Includes both taxable and non-taxable municipal securities. (4)Includes perpetual preferred stock issued by domestic banks and domestic bank holding companies and equity securities issued by fintech companies, without a readily determinable fair value, and CRA-qualified mutual fund shares at March 31, 2022 and December 31, 2021. No impairments or measurement adjustments have been recorded on the equity securities without a readily determinable fair value since acquisition.
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Summary of Available-for-Sale Debt Securities by Stated Maturity | The following table presents debt securities by stated maturity. Debt securities backed by mortgages and other assets have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date:
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Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | Gross unrealized losses and fair value of Customers' AFS debt securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021 were as follows:
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Debt Securities, Available-for-sale, Allowance for Credit Loss | The following table presents the activity in the allowance for credit losses on AFS debt securities, by major security type:
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Loans Held for Sale (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables Held-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Loans Held for Sale | The composition of loans held for sale as of March 31, 2022 and December 31, 2021 was as follows:
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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans and Leases Receivable | The following table presents loans and leases receivable as of March 31, 2022 and December 31, 2021.
(1)Includes direct finance equipment leases of $150.7 million and $146.5 million at March 31, 2022 and December 31, 2021, respectively. (2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(22.8) million and $(52.0) million at March 31, 2022 and December 31, 2021, respectively.
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Loans and Leases Receivable by Loan Type and Performance Status | The following tables summarize loans and leases receivable by loan and lease type and performance status as of March 31, 2022 and December 31, 2021:
(1)Includes past due loans and leases that are accruing interest because collection is considered probable. (2)Loans and leases where next payment due is less than 30 days from the report date. The tables exclude PPP loans of $2.2 billion, of which $37.8 million were 30-59 days past due and $88.3 million were 60 days or more past due as of March 31, 2022, and PPP loans of $3.3 billion, of which $6.3 million were 30-59 days past due and $21.8 million were 60 days or more past due as of December 31, 2021. Claims for guarantee payments are submitted to the SBA for eligible PPP loans more than 60 days past due. (3)Includes PCD loans of $9.4 million and $9.9 million at March 31, 2022 and December 31, 2021, respectively.
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Amortized cost of Loans and Leases on Nonaccrual Status | The following table presents the amortized cost of loans and leases held for investment on nonaccrual status.
(1) Presented at amortized cost basis.
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Schedule of Allowance for Credit Losses on Loans and Leases | The changes in the ACL on loans and leases for the three months ended March 31, 2022 and 2021, and the loans and leases and ACL by loan and lease type are presented in the tables below.
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Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession | The following table presents loans modified in a TDR by type of concession for the three months ended March 31, 2022 and 2021. There were no modifications that involved forgiveness of debt for the three months ended March 31, 2022 and 2021.
(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.
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Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment Within Twelve Months | The following table presents, by loan type, the number of loans modified in TDRs and the related recorded investment, for which there was a payment default within twelve months following the modification:
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Credit Ratings of Covered and Non-Covered Loan Portfolio | The following tables present the credit ratings of loans and leases receivable as of March 31, 2022 and December 31, 2021.
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Schedule of Loan Purchases and Sales | Purchases and sales of loans were as follows for the three months ended March 31, 2022 and 2021:
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 98.1% and 101.0% of loans outstanding for the three months ended March 31, 2022 and 2021, respectively. (2)Installment loan purchases for the three months ended March 31, 2022 and 2021 consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660. (3)For the three months ended March 31, 2022 and 2021, loan sales resulted in net gains of $2.1 million and $1.6 million, respectively, included in gain (loss) on sale of SBA and other loans and mortgage banking income in the consolidated statements of income.
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Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Summary of Right-of-Use Assets and Lease Liabilities | The following table summarizes operating lease ROU assets and operating lease liabilities and their corresponding balance sheet location:
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Lease, Cost | The following table summarizes operating lease cost and its corresponding income statement location for the periods presented:
(1) There were no variable lease costs for the three months ended March 31, 2022 and 2021, and sublease income for operating leases is immaterial.
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Maturities of Non-cancelable Operating Lease Liabilities | Maturities of non-cancelable operating lease liabilities were as follows at March 31, 2022:
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Summary of Lease Term and Discount Rate for Operating Leases | The following table summarizes the weighted average remaining lease term and discount rate for Customers' operating leases at March 31, 2022 and December 31, 2021:
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Lessor, Lease Receivables and Investment in Operating Leases and their Corresponding Balance Sheet Location | The following table summarizes lease receivables and investment in operating leases and their corresponding balance sheet location at March 31, 2022 and December 31, 2021:
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Borrowings (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short Term Borrowings | Short-term debt at March 31, 2022 and December 31, 2021 was as follows:
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Summary of Bancorps Short Term Borrowings | The following is a summary of additional information relating to Customers' short-term debt:
(1) For the three months ended March 31, 2022. (2) For the year ended December 31, 2021.
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Schedule of Long-term Debt | The maximum borrowing capacity with the FHLB and FRB at March 31, 2022 and December 31, 2021 was as follows:
(1) Amounts reported in the above table exclude borrowings under the PPPLF, which are limited to the unpaid principal balance of the loans originated under the PPP. Customers had no borrowings under the PPPLF at March 31, 2022 and December 31, 2021. Senior and Subordinated Debt Long-term senior notes and subordinated debt at March 31, 2022 and December 31, 2021 were as follows:
(1)The senior notes will bear an annual fixed rate of 2.875% until August 15, 2026. From August 15, 2026 until maturity, the notes will bear an annual interest rate equal to a benchmark rate, which is expected to be the three-month term SOFR, plus 235 basis points. Customers Bancorp has the ability to call the senior notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after August 15, 2026. (2)The subordinated notes qualify as Tier 2 capital for regulatory capital purposes. (3)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. (4)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
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Shareholders' Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The table below summarizes Customers' issuances of preferred stock and the dividends paid per share.
(1) For the three months ended March 31, 2022.
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Regulatory Capital (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios | Generally, to comply with the regulatory definition of adequately capitalized, or well capitalized, respectively, or to comply with the Basel III capital requirements, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table:
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Disclosures About Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers' financial instruments at March 31, 2022 and December 31, 2021 were as follows.
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Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2022 and December 31, 2021 were as follows:
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Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The changes in residential mortgage loan commitments (Level 3 assets) measured at fair value on a recurring basis for the three months ended March 31, 2022 and 2021 are summarized in the tables below. Additional information about residential mortgage loan commitments can be found in NOTE 14 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES.
The changes in asset-backed securities (Level 3 assets) measured at fair value on a recurring basis for the three months ended March 31, 2022 are summarized in the tables below.
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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 March 31, 2022 and December 31, 2021 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. The unobservable Level 3 inputs noted below contain a level of uncertainty that may differ from what is realized in an immediate settlement of the assets. Therefore, Customers may realize a value higher or lower than the current estimated fair value of the assets.
(1)Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. Customers does not generally discount appraisals. Fair value is also estimated based on sale agreements or letters of intent with third parties. (2)Appraisals are adjusted by management for liquidation expenses. The range and weighted average of liquidation expense adjustments are presented as a percentage of the appraisal. (3)Business asset valuation obtained from independent party. (4)Business asset valuations may be adjusted by management for qualitative factors including economic conditions and the condition of the business assets. The range and weighted average of the business asset adjustments are presented as a percent of the business asset valuation.
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Derivative Instruments and Hedging Activities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Assets at Fair Value | As of March 31, 2022, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges.
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Fair Value of Derivative Financial Instruments | The following tables present the fair value of Customers' derivative financial instruments as well as their presentation on the consolidated balance sheets as of March 31, 2022 and December 31, 2021.
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Effect of Derivative Financial Instruments on Net Income and Comprehensive Income | The following table presents amounts included in the consolidated statements of income related to derivatives designated as fair value hedges and derivatives not designated as hedges for the three months ended March 31, 2022 and 2021.
Effect of Derivative Instruments on Comprehensive Income The following table presents the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2022 and 2021.
(1) Amounts presented are net of taxes. See NOTE 5 – CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) for the total effect on other comprehensive income (loss) from derivatives designated as cash flow hedges for the periods presented. (2) Includes loss on cash flow hedge derivative terminations.
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Summary of Offsetting of Financial Assets and Derivative Assets | The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the tables below. Interest rate swaps and interest rate caps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the tables below. Customers has not made a policy election to offset its derivative positions.
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Summary of Offsetting of Financial Liabilities and Derivative Liabilities | The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers' interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the tables below. Interest rate swaps and interest rate caps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the tables below. Customers has not made a policy election to offset its derivative positions.
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Description of the Business - Additional Information (Detail) |
Mar. 31, 2022
branch
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches (branch) | 12 |
Discontinued Operations - Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Discontinued operations: | ||
Loss from discontinued operations before income taxes | $ 0 | $ (20,354) |
Income tax expense from discontinued operations | 0 | 17,682 |
Net loss from discontinued operations | 0 | (38,036) |
BankMobile Technologies, Inc. | Discontinued Operations, Disposed of by Sale | ||
Discontinued operations: | ||
Non-interest income | 0 | 0 |
Non-interest expense | 0 | 20,354 |
Loss from discontinued operations before income taxes | 0 | (20,354) |
Income tax expense from discontinued operations | 0 | 17,682 |
Net loss from discontinued operations | $ 0 | $ (38,036) |
Earnings (Loss) Per Share - Anti-dilutive Securities Excluded from Computation of Earnings (Loss) Per Share (Detail) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based compensation awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total anti-dilutive securities (shares) | 0 | 277,725 |
Investment Securities - Credit Valuation Allowance for Available For Sale Debt Securities (Details) - Asset-backed securities $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | |
Balance at January 1, | $ 0 |
Credit losses on securities for which credit losses were not previously recorded | 728 |
Balance at March 31, | $ 728 |
Loans Held for Sale - Composition of Loans Held for Sale (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Receivables Held-for-sale [Abstract] | ||
Home equity conversion mortgages, at lower of cost or fair value | $ 507 | $ 507 |
Residential mortgage loans, at fair value | 2,496 | 15,747 |
Total consumer loans held for sale | 3,003 | 16,254 |
Loans held for sale | $ 3,003 | $ 16,254 |
Loans Held for Sale - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Receivables Held-for-sale [Abstract] | ||
Loans held-for-sale (including nonperforming loans) | $ 0.5 | $ 0.5 |
Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
loan
|
Mar. 31, 2021
USD ($)
loan
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 42 | 28 |
Recorded investment | $ | $ 797 | $ 725 |
Interest-rate reductions | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 10 | 8 |
Recorded investment | $ | $ 346 | $ 184 |
Other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 32 | 20 |
Recorded investment | $ | $ 451 | $ 541 |
Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases - Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment (Detail) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022
USD ($)
loan
|
Mar. 31, 2021
USD ($)
loan
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 24 | 20 |
Recorded Investment | $ | $ 325 | $ 354 |
Manufactured housing | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | 3 |
Recorded Investment | $ | $ 49 | $ 48 |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 56 |
Installment | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 23 | 16 |
Recorded Investment | $ | $ 276 | $ 250 |
Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases - Schedule of Loan Purchases and Sales (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchases | $ 206,330 | $ 115,849 |
Sales | $ 14,281 | $ 39,534 |
Purchase price as a percentage of loans outstanding | 98.10% | 101.00% |
Net gain on sale of loans | $ 2,100 | $ 1,600 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchases | 146,874 | 0 |
Installment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Purchases | 59,456 | 115,849 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales | 8,840 | 18,931 |
Commercial real estate owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales | 5,441 | 2,237 |
Commercial real estate non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sales | $ 0 | $ 18,366 |
Leases - Lessee Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, renewal term | 15 years | |
Operating lease, lease not yet commenced, liability | $ 7.1 | |
Operating cash flows from operating leases | $ 1.2 | $ 1.1 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 3 months | |
Lessee, operating lease, term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, remaining lease term | 8 years | |
Lessee, operating lease, term | 5 years |
Leases - Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
ASSETS | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating lease ROU assets | $ 12,364 | $ 12,677 |
LIABILITIES | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Operating lease liabilities | $ 14,003 | $ 14,524 |
Leases - Lease, Cost (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Leases [Abstract] | ||
Operating lease cost | $ 998,000 | $ 1,117,000 |
Variable lease cost | $ 0 | $ 0 |
Leases - Maturities of Non-cancelable Lease Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
2022 | $ 3,238 | |
2023 | 4,018 | |
2024 | 2,991 | |
2025 | 2,060 | |
2026 | 1,125 | |
Thereafter | 1,791 | |
Total minimum payments | 15,223 | |
Less: interest | 1,220 | |
Present value of lease liabilities | $ 14,003 | $ 14,524 |
Leases - Summary of Lease Term and Discount Rate (Details) |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Leases [Abstract] | ||
Operating lease, weighted average remaining lease term (years) | 4 years 8 months 12 days | 3 years 10 months 24 days |
Operating lease, weighted average discount rate, percent | 2.82% | 2.74% |
Leases - Lessor Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Minimum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, lease, term of contract (years) | 24 months | |
Maximum | ||
Lessor, Lease, Description [Line Items] | ||
Lessor, lease, term of contract (years) | 120 months | |
COVID-19 | Finance Lease | ||
Lessor, Lease, Description [Line Items] | ||
Book value | $ 22.8 | |
COVID-19 | Operating Lease | ||
Lessor, Lease, Description [Line Items] | ||
Book value | $ 7.4 |
Leases - Lessor, Lease Receivables and Investment in Operating Leases and their Corresponding Balance Sheet Location (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Direct financing leases | ||
Lease receivables | $ 139,203 | $ 134,855 |
Guaranteed residual assets | 11,631 | 11,397 |
Unguaranteed residual assets | 5,820 | 5,665 |
Deferred initial direct costs | 623 | 448 |
Unearned income | (5,917) | (5,383) |
Net investment in direct financing leases | 151,360 | 146,982 |
Operating leases | ||
Investment in operating leases | 159,177 | 158,135 |
Accumulated depreciation | (43,802) | (40,749) |
Deferred initial direct costs | 809 | 872 |
Net investment in operating leases | 116,184 | 118,258 |
Total lease assets | $ 267,544 | $ 265,240 |
Borrowings - Short Term Borrowings (Detail) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
FHLB advances | $ 0 | $ 700,000 |
Federal funds purchased | 700,000 | 75,000 |
Total short-term debt | $ 700,000 | $ 775,000 |
FHLB advances, rate | 0.00% | 0.26% |
Federal funds purchased, rate | 0.40% | 0.05% |
Borrowings - Summary of Bancorps Short Term Borrowings (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
FHLB Advances | ||
Short-term Debt [Line Items] | ||
Maximum outstanding at any month end | $ 0 | $ 850,000 |
Average balance during the period | $ 127,778 | $ 264,704 |
Weighted-average interest rate during the period | 0.32% | 2.35% |
Federal Funds Purchased | ||
Short-term Debt [Line Items] | ||
Maximum outstanding at any month end | $ 700,000 | $ 365,000 |
Average balance during the period | $ 88,611 | $ 22,110 |
Weighted-average interest rate during the period | 0.33% | 0.07% |
Borrowings - Narrative (Detail) - USD ($) $ in Billions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Aggregate availability under federal funds line | $ 0.7 | $ 1.3 |
Borrowings - FHLB and FRB Advances (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
Total maximum borrowing capacity with the FHLB | $ 3,337,211 | $ 2,973,635 |
Total maximum borrowing capacity with the FRB | 214,908 | 183,052 |
Qualifying loans serving as collateral against FHLB and FRB advances | $ 4,218,252 | $ 3,594,339 |
Regulatory Capital - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer to risk weighted assets | 2.50% | |
Cumulative Effect, Period of Adoption, Adjustment | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cumulative capital transition impact | $ 61.6 | |
Capital transition provisions, benefit recognized, excluding amount previously phased in | $ 46.2 |
Disclosures About Fair Value of Financial Instruments - Narrative (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Loans held for sale, average life from purchase to sale | 30 days |
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) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Residential Mortgage Loan Commitments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 179 | $ 200 |
Issuances | 149 | 196 |
Settlements | (179) | (200) |
Balance at end of period | 149 | $ 196 |
Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | 142,885 | |
Principal payments | (16,349) | |
Credit losses | (728) | |
Change in fair value recognized in OCI | (3,955) | |
Balance at end of period | $ 121,853 |
Derivative Instruments and Hedging Activities - Cumulative Basis Adjustment for Fair Value Hedges (Detail) - Available-for-sale Securities - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amortized Cost | $ 64,000 | $ 80,500 |
Cumulative Amount of Fair Value Hedging Adjustment to Hedged Items | $ 3,653 | $ 1,750 |
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - Interest Rate Contract - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Offsetting Assets [Line Items] | ||
Gross Amounts Recognized on the Consolidated Balance Sheets | $ 6,546 | $ 0 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral received | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 6,546 | $ 0 |
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - Interest Rate Contract - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Offsetting Liabilities [Line Items] | ||
Gross Amounts Recognized on the Consolidated Balance Sheets | $ 4,115 | $ 23,348 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 0 | 0 |
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged | (4,115) | (23,348) |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 0 | $ 0 |
Loss Contingencies - Narrative (Details) $ in Millions |
Oct. 28, 2020
USD ($)
|
---|---|
Specialty's Cafe Bakery, Inc. Matter | |
Loss Contingencies [Line Items] | |
Loss contingency, damages sought, value | $ 8.1 |
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