Borrowings

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

Short-term debt

Short-term debt at December 31, 2015 and 2014 was as follows:

	December 31,
	2015				2014
	Amount		Rate		Amount		Rate
(amounts in thousands)
FHLB advances	$	1,365,300	0.48	%	$	1,298,000	0.29	%
Federal funds purchased	70,000		0.56		—		—
Total short-term debt	$	1,435,300			$	1,298,000

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

	December 31,
	2015			2014			2013
(amounts in thousands)
FHLB advances:
Maximum outstanding at any month end	$	1,365,300		$	1,383,000		$	769,750
Average balance during the year	844,835			898,396			120,309
Weighted-average interest rate during the year	0.60		%	0.46		%	0.55		%
Federal funds purchased:
Maximum outstanding at any month end	85,000			35,000			125,000
Average balance during the year	41,397			13,312			32,351
Weighted-average interest rate during the year	0.35		%	0.31		%	0.31		%

At December 31, 2015 and 2014, the Bank had aggregate availability under federal funds lines totaling $175 million and $95.0 million, respectively.

Long-term debt

FHLB advances

The contractual maturities of long-term advances from the FHLB were as follows:

	December 31,
	2015				2014
	Amount		Rate		Amount		Rate
(amounts in thousands)
2016	$	—	—	%	$	85,000	0.59	%
2017	205,000		1.18		180,000		1.21
2018	55,000		1.61		55,000		1.61
	$	260,000			$	320,000

Of the $260 million of long-term advances enumerated above, $250.0 million are fixed rate.

The Bank had a total maximum borrowing capacity with the Federal Home Loan Bank of $3.7 billion and with the Federal Reserve Bank of Philadelphia of $59.2 million at December 31, 2015. The Bank had a total borrowing capacity with the Federal Home Loan Bank of $3.2 billion and with the Federal Reserve Bank of Philadelphia of $62.7 million at December 31, 2014. Amounts can be borrowed as short-term or long-term. As of December 31, 2015, advances under these arrangements were secured by certain assets, which included a blanket lien on securities of $257.1 million and qualifying loans of Customers Bank of $3.5 billion.

Senior notes

On June 26, 2014, the Bancorp closed a private placement transaction in which it issued $25.0 million of 4.625% senior notes due 2019. Interest is paid semi-annually in arrears in June and December.

In July and August 2013, the Bancorp issued $63.3 million in aggregate principal amount of senior notes due 2018. The notes bear interest at 6.375% per year which is payable on March 15, June 15, September 15, and December 15.

The notes are unsecured obligations of the Bancorp and rank equally with all of its secured and unsecured senior indebtedness.

Subordinated debt

On June 26, 2014, the Bank closed a private placement transaction in which it issued $110.0 million of fixed-to-floating rate subordinated notes due 2029. The subordinated notes bear interest at an annual fixed rate of 6.125% until June 26, 2024, and interest is paid semiannually. From June 26, 2024, the subordinated notes will bear an annual interest rate equal to three-month LIBOR plus 344.3 basis points until maturity on June 26, 2029. The 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.

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