Borrowings

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

Short-term debt

Short-term debt at March 31, 2022 and December 31, 2021 was as follows:

	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

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

(dollars in thousands)	March 31, 2022 (1)			December 31, 2021 (2)
FHLB advances
Maximum outstanding at any month end	$	—		$	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
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		%

(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:

(amounts 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

(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:

		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

(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.