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BORROWINGS
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
BORROWINGS BORROWINGS
Short-term debt
There was no short-term debt outstanding at September 30, 2024 and December 31, 2023.
The following is a summary of additional information relating to Customers’ short-term debt:
(dollars in thousands)
September 30, 2024 (1)
December 31, 2023 (2)
FRB advances
Maximum outstanding at any month end$— $— 
Average balance during the period— 120,099 
Weighted-average interest rate during the period— %5.23 %
FHLB advances
Maximum outstanding at any month end150,000 — 
Average balance during the period11,496 87,407 
Weighted-average interest rate during the period5.74 %5.16 %
Federal funds purchased
Maximum outstanding at any month end— — 
Average balance during the period— 3,781 
Weighted-average interest rate during the period— %4.97 %
(1)    For the nine months ended September 30, 2024.
(2)    For the year ended December 31, 2023.
At September 30, 2024 and December 31, 2023, Customers Bank had aggregate availability under federal funds lines totaling $1.7 billion.
Long-term debt
FHLB and FRB advances
Long-term FHLB and FRB advances at September 30, 2024 and December 31, 2023 were as follows:
September 30, 2024December 31, 2023
(dollars in thousands)AmountRateAmountRate
FHLB advances (1)
$1,117,229 
(2)
4.24 %
(3)
$1,203,207 3.91 %
Total long-term FHLB and FRB advances$1,117,229 $1,203,207 
(1)    Amounts reported in the above table include fixed rate long-term advances from FHLB of $950.0 million with maturities ranging from March 2025 to March 2028, and variable rate long-term advances from FHLB of $155.0 million with maturities ranging from March 2028 to June 2029 with a returnable option that can be repaid without penalty on certain predetermined dates at Customers Bank's option, at September 30, 2024.
(2)    Includes $12.2 million and $3.2 million of unamortized basis adjustments from interest rate swaps designated as fair value hedges of long-term advances from FHLB at September 30, 2024 and December 31, 2023, respectively. Refer to NOTE 14 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for additional information.
(3)    Excludes the effect of interest rate swaps designated as fair value hedges of long-term advances from FHLB.
Maturities of long-term FHLB advances were as follows at September 30, 2024:
September 30, 2024
(dollars in thousands)
Amount (1)
Rate
2024$— — %
2025200,000 4.45 %
2026200,000 4.32 %
2027450,000 3.70 %
2028180,000 4.75 %
Thereafter75,000 5.55 %
Total long-term FHLB advances$1,105,000 
(1)    Amounts reported in the above table include variable rate long-term advances from FHLB of $155.0 million with maturities ranging from March 2028 to June 2029 with a returnable option that can be repaid without penalty on certain predetermined dates at Customers Bank's option.
The maximum borrowing capacity with the FHLB and FRB at September 30, 2024 and December 31, 2023 was as follows:
(amounts in thousands)September 30, 2024December 31, 2023
Total maximum borrowing capacity with the FHLB$3,565,068 $3,474,347 
Total maximum borrowing capacity with the FRB
4,180,824 3,436,000 
Qualifying loans and securities serving as collateral against FHLB and FRB advances
9,508,135 8,575,137 
Senior and Subordinated Debt
Long-term senior notes and subordinated debt at September 30, 2024 and December 31, 2023 were as follows:
(dollars in thousands)Carrying Amount
Issued byRankingSeptember 30, 2024December 31, 2023RateIssued AmountDate IssuedMaturityPrice
Customers Bancorp
Senior (1)
$99,033 $98,928 2.875 %$100,000 August 2021August 2031100.000 %
Customers BancorpSenior— 24,912 4.500 %25,000 September 2019September 2024100.000 %
Total other borrowings$99,033 $123,840 
Customers Bancorp
Subordinated (2)(3)
$72,902 $72,766 5.375 %$74,750 December 2019December 2034100.000 %
Customers Bank
Subordinated (2)(4)
109,537 109,464 6.125 %110,000 June 2014June 2029100.000 %
Total subordinated debt$182,439 $182,230 
(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 had an annual fixed rate of 6.125% until June 26, 2024. From June 26, 2024 until maturity, the notes bear an annual interest rate equal to the three-month LIBOR plus 344.3 basis points. Pursuant to the Adjustable Interest Rate (LIBOR) Act enacted by Congress on March 15, 2022, Customers substituted three-month term SOFR plus a tenor spread adjustment of 26.161 basis points for three-month LIBOR as the benchmark reference rate in order to calculate the annual interest rate after June 26, 2024. 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.