x | Quarterly report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition report pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Pennsylvania | 27-2290659 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | x | |||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller Reporting Company | ¨ |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Ex-31.1 | ||
Ex-31.2 | ||
Ex-32.1 | ||
Ex-32.2 | ||
Ex-101 |
March 31, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 63,849 | $ | 53,550 | |||
Interest-earning deposits | 198,789 | 211,043 | |||||
Cash and cash equivalents | 262,638 | 264,593 | |||||
Investment securities available for sale, at fair value | 556,165 | 560,253 | |||||
Loans held for sale (includes $1,941,602 and $1,757,807, respectively, at fair value) | 1,969,280 | 1,797,064 | |||||
Loans receivable | 5,907,315 | 5,453,479 | |||||
Allowance for loan losses | (37,605 | ) | (35,647 | ) | |||
Total loans receivable, net of allowance for loan losses | 5,869,710 | 5,417,832 | |||||
FHLB, Federal Reserve Bank, and other restricted stock | 92,269 | 90,841 | |||||
Accrued interest receivable | 21,206 | 19,939 | |||||
Bank premises and equipment, net | 12,444 | 11,531 | |||||
Bank-owned life insurance | 158,339 | 157,211 | |||||
Other real estate owned | 5,106 | 5,057 | |||||
Goodwill and other intangibles | 3,648 | 3,651 | |||||
Other assets | 88,077 | 70,233 | |||||
Total assets | $ | 9,038,882 | $ | 8,398,205 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Deposits: | |||||||
Demand, non-interest bearing | $ | 779,568 | $ | 653,679 | |||
Interest-bearing | 5,699,047 | 5,255,822 | |||||
Total deposits | 6,478,615 | 5,909,501 | |||||
Federal funds purchased | 80,000 | 70,000 | |||||
FHLB advances | 1,633,700 | 1,625,300 | |||||
Other borrowings | 86,624 | 86,457 | |||||
Subordinated debt | 108,709 | 108,685 | |||||
Accrued interest payable and other liabilities | 51,985 | 44,360 | |||||
Total liabilities | 8,439,633 | 7,844,303 | |||||
Shareholders’ equity: | |||||||
Preferred stock, par value $1.00 per share; liquidation preference $25.00 per share; 100,000,000 shares authorized, 3,300,000 and 2,300,000 shares issued and outstanding as of March 31, 2016 and December 31, 2015 | 79,677 | 55,569 | |||||
Common stock, par value $1.00 per share; 200,000,000 shares authorized; 27,567,265 and 27,432,061 shares issued as of March 31, 2016 and December 31, 2015; 27,037,005 and 26,901,801 shares outstanding as of March 31, 2016 and December 31, 2015 | 27,567 | 27,432 | |||||
Additional paid in capital | 364,647 | 362,607 | |||||
Retained earnings | 140,924 | 124,511 | |||||
Accumulated other comprehensive loss, net | (5,333 | ) | (7,984 | ) | |||
Treasury stock, at cost (530,260 shares as of March 31, 2016 and December 31, 2015) | (8,233 | ) | (8,233 | ) | |||
Total shareholders’ equity | 599,249 | 553,902 | |||||
Total liabilities and shareholders’ equity | $ | 9,038,882 | $ | 8,398,205 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Interest income: | |||||||
Loans receivable | $ | 54,472 | $ | 43,093 | |||
Loans held for sale | 14,106 | 10,900 | |||||
Investment securities | 3,709 | 2,363 | |||||
Other | 1,111 | 2,362 | |||||
Total interest income | 73,398 | 58,718 | |||||
Interest expense: | |||||||
Deposits | 10,212 | 7,526 | |||||
Other borrowings | 1,606 | 1,488 | |||||
FHLB advances | 2,268 | 1,689 | |||||
Subordinated debt | 1,685 | 1,685 | |||||
Total interest expense | 15,771 | 12,388 | |||||
Net interest income | 57,627 | 46,330 | |||||
Provision for loan losses | 1,980 | 2,964 | |||||
Net interest income after provision for loan losses | 55,647 | 43,366 | |||||
Non-interest income: | |||||||
Mortgage warehouse transactional fees | 2,548 | 2,273 | |||||
Bank-owned life insurance | 1,123 | 1,061 | |||||
Gain on sale of loans | 644 | 1,231 | |||||
Deposit fees | 255 | 179 | |||||
Mortgage loans and banking income | 165 | 151 | |||||
Gain on sale of investment securities | 26 | — | |||||
Other | 733 | 838 | |||||
Total non-interest income | 5,494 | 5,733 | |||||
Non-interest expense: | |||||||
Salaries and employee benefits | 17,332 | 13,952 | |||||
FDIC assessments, taxes, and regulatory fees | 4,030 | 3,278 | |||||
Professional services | 2,657 | 1,913 | |||||
Technology, communication and bank operations | 2,643 | 2,531 | |||||
Occupancy | 2,325 | 2,101 | |||||
Loan workout | 418 | 269 | |||||
Other real estate owned | 287 | 884 | |||||
Advertising and promotion | 256 | 347 | |||||
Other | 3,957 | 2,190 | |||||
Total non-interest expense | 33,905 | 27,465 | |||||
Income before income tax expense | 27,236 | 21,634 | |||||
Income tax expense | 9,537 | 7,682 | |||||
Net income | 17,699 | 13,952 | |||||
Preferred stock dividends | 1,286 | — | |||||
Net income available to common shareholders | $ | 16,413 | $ | 13,952 | |||
Basic earnings per common share | $ | 0.61 | $ | 0.52 | |||
Diluted earnings per common share | $ | 0.57 | $ | 0.49 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Net income | $ | 17,699 | $ | 13,952 | |||
Unrealized gains on securities: | |||||||
Unrealized holding gains on securities arising during the period | 6,867 | 459 | |||||
Income tax effect | (2,575 | ) | (216 | ) | |||
Less: reclassification adjustment for gains on securities included in net income | (26 | ) | — | ||||
Income tax effect | 10 | — | |||||
Net unrealized gains | 4,276 | 243 | |||||
Unrealized losses on cash flow hedges: | |||||||
Unrealized losses on cash flow hedges arising during the period | (2,600 | ) | (1,946 | ) | |||
Income tax effect | 975 | 778 | |||||
Net unrealized losses | (1,625 | ) | (1,168 | ) | |||
Other comprehensive income (loss), net of tax | 2,651 | (925 | ) | ||||
Comprehensive income | $ | 20,350 | $ | 13,027 |
Three Months Ended March 31, 2016 | |||||||||||||||||||||||||||||||||
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 Loss | Treasury Stock | Total | |||||||||||||||||||||||||
Balance, December 31, 2015 | 2,300,000 | $ | 55,569 | 26,901,801 | $ | 27,432 | $ | 362,607 | $ | 124,511 | $ | (7,984 | ) | $ | (8,233 | ) | $ | 553,902 | |||||||||||||||
Net income | — | — | — | — | — | 17,699 | — | — | 17,699 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 2,651 | — | 2,651 | ||||||||||||||||||||||||
Issuance of common stock, net of offering costs of $15 | — | — | 7,291 | 7 | 152 | — | — | — | 159 | ||||||||||||||||||||||||
Issuance of preferred stock, net of offering costs of $892 | 1,000,000 | 24,108 | — | — | — | — | — | — | 24,108 | ||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | (1,286 | ) | — | — | (1,286 | ) | ||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 1,402 | — | — | — | 1,402 | ||||||||||||||||||||||||
Exercise of warrants | — | — | 12,377 | 12 | 106 | — | — | — | 118 | ||||||||||||||||||||||||
Issuance of common stock under share-based compensation arrangements | — | — | 115,536 | 116 | 380 | — | — | — | 496 | ||||||||||||||||||||||||
Balance, March 31, 2016 | 3,300,000 | $ | 79,677 | 27,037,005 | $ | 27,567 | $ | 364,647 | $ | 140,924 | $ | (5,333 | ) | $ | (8,233 | ) | $ | 599,249 | |||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||||||||
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 Loss | Treasury Stock | Total | |||||||||||||||||||||||||
Balance, December 31, 2014 | — | $ | — | 26,745,529 | $ | 27,278 | $ | 355,822 | $ | 68,421 | $ | (122 | ) | $ | (8,254 | ) | $ | 443,145 | |||||||||||||||
Net income | — | — | — | — | — | 13,952 | — | — | 13,952 | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (925 | ) | — | (925 | ) | ||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | 1,170 | — | — | — | 1,170 | ||||||||||||||||||||||||
Issuance of common stock under share-based compensation arrangements | — | — | 78,510 | 78 | 531 | — | — | — | 609 | ||||||||||||||||||||||||
Balance, March 31, 2015 | — | $ | — | 26,824,039 | $ | 27,356 | $ | 357,523 | $ | 82,373 | $ | (1,047 | ) | $ | (8,254 | ) | $ | 457,951 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash Flows from Operating Activities | |||||||
Net income | $ | 17,699 | $ | 13,952 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Provision for loan losses, net of change to FDIC receivable and clawback liability | 1,980 | 2,964 | |||||
Provision for depreciation and amortization | 970 | 1,033 | |||||
Share-based compensation | 1,689 | 1,416 | |||||
Deferred taxes | 573 | (1,540 | ) | ||||
Net amortization of investment securities premiums and discounts | 205 | 211 | |||||
Loss (gain) on sale of investment securities | (26 | ) | — | ||||
Gain on sale of mortgages and other loans | (810 | ) | (1,266 | ) | |||
Origination of loans held for sale | (6,876,748 | ) | (6,627,070 | ) | |||
Proceeds from the sale of loans held for sale | 6,693,763 | 6,285,952 | |||||
Increase in FDIC loss sharing receivable net of clawback liability | 304 | (134 | ) | ||||
Amortization (accretion) of fair value discounts | (114 | ) | 32 | ||||
Net loss on sales of other real estate owned | 15 | 441 | |||||
Valuation and other adjustments to other real estate owned, net of FDIC receivable | 170 | 343 | |||||
Earnings on investment in bank-owned life insurance | (1,123 | ) | (1,061 | ) | |||
Increase in accrued interest receivable and other assets | (21,304 | ) | (3,259 | ) | |||
Increase in accrued interest payable and other liabilities | 4,254 | 3,574 | |||||
Net Cash Used In Operating Activities | (178,503 | ) | (324,412 | ) | |||
Cash Flows from Investing Activities | |||||||
Proceeds from maturities, calls and principal repayments of securities available for sale | 12,902 | 20,739 | |||||
Proceeds from sales of investment securities available for sale | 2,848 | — | |||||
Purchases of investment securities available for sale | (5,000 | ) | — | ||||
Net increase in loans | (448,956 | ) | (148,554 | ) | |||
Proceeds from sales of loans | 6,946 | 141,437 | |||||
Purchases of bank-owned life insurance | — | (15,000 | ) | ||||
Net proceeds from (purchases of) FHLB, Federal Reserve Bank, and other restricted stock | (1,428 | ) | 204 | ||||
Reimbursements from the FDIC on loss sharing agreements | (320 | ) | (302 | ) | |||
Purchases of bank premises and equipment | (1,665 | ) | (829 | ) | |||
Proceeds from sales of other real estate owned | 86 | 1,619 | |||||
Net Cash Used In Investing Activities | (434,587 | ) | (686 | ) | |||
Cash Flows from Financing Activities | |||||||
Net increase in deposits | 569,116 | 360,789 | |||||
Net (decrease) increase in short-term borrowed funds from the FHLB | (16,600 | ) | (98,000 | ) | |||
Net increase in federal funds purchased | 10,000 | — | |||||
Proceeds from long-term FHLB borrowings | 25,000 | 25,000 | |||||
Net proceeds from issuance of preferred stock | 24,108 | — | |||||
Preferred stock dividends paid | (1,214 | ) | — | ||||
Exercise and redemption of warrants | 118 | — | |||||
Proceeds from issuance of common stock | 607 | 109 | |||||
Net Cash Provided by Financing Activities | 611,135 | 287,898 | |||||
Net Decrease in Cash and Cash Equivalents | (1,955 | ) | (37,200 | ) | |||
Cash and Cash Equivalents – Beginning | 264,593 | 371,023 | |||||
Cash and Cash Equivalents – Ending | $ | 262,638 | $ | 333,823 | |||
(continued) | |||||||
Supplementary Cash Flows Information | |||||||
Interest paid | $ | 13,018 | $ | 10,550 | |||
Income taxes paid | 15,789 | 2,762 | |||||
Non-cash items: | |||||||
Transfer of loans to other real estate owned | $ | 320 | $ | 159 |
1. | the payoff is adjusted based on changes in an index; |
2. | the payoff is indexed to an underlying other than interest rates or credit risk; |
3. | the debt involves a substantial premium or discount; and |
4. | the call (put) option is contingently exercisable. |
1. | Limited partnerships and similar legal entities. |
2. | Evaluating fees paid to a decision maker or a service provider as a variable interest. |
3. | The effect of fee arrangements on the primary beneficiary determination. |
4. | The effect of related parties on the primary beneficiary determination. |
5. | Certain investment funds. |
Three Months Ended March 31, 2016 | |||||||||||||||||
Available-for-sale-securities | |||||||||||||||||
(amounts in thousands) | Unrealized Gains (Losses) | Foreign Currency Items | Total Unrealized Gains (Losses) | Unrealized Loss on Cash Flow Hedge | Total | ||||||||||||
Balance - December 31, 2015 | $ | (4,602 | ) | $ | (584 | ) | $ | (5,186 | ) | $ | (2,798 | ) | $ | (7,984 | ) | ||
Other comprehensive income (loss) before reclassifications | 4,255 | 37 | 4,292 | (1,625 | ) | 2,667 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income (2) | (16 | ) | — | (16 | ) | — | (16 | ) | |||||||||
Net current-period other comprehensive income (loss) | 4,239 | 37 | 4,276 | (1,625 | ) | 2,651 | |||||||||||
Balance - March 31, 2016 | $ | (363 | ) | $ | (547 | ) | $ | (910 | ) | $ | (4,423 | ) | $ | (5,333 | ) |
Three Months Ended March 31, 2015 | |||||||||||||||||
Available-for-sale-securities | |||||||||||||||||
(amounts in thousands) | Unrealized Gains (Losses) (2) | Foreign Currency Items | Total Unrealized Gains (Losses) | Unrealized Loss on Cash Flow Hedge | Total | ||||||||||||
Balance - December 31, 2014 | $ | 1,156 | $ | (14 | ) | $ | 1,142 | $ | (1,264 | ) | $ | (122 | ) | ||||
Other comprehensive income (loss) before reclassifications | 121 | 122 | 243 | (1,168 | ) | (925 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss to net income (2) | — | — | — | — | — | ||||||||||||
Net current-period other comprehensive income (loss) | 121 | 122 | 243 | (1,168 | ) | (925 | ) | ||||||||||
Balance - March 31, 2015 | $ | 1,277 | $ | 108 | $ | 1,385 | $ | (2,432 | ) | $ | (1,047 | ) |
(1) | All amounts are presented net of tax. Amounts in parentheses indicate reductions to accumulated other comprehensive income. |
(2) | Reclassification amounts are reported as "Gain on sale of investment securities" on the Consolidated Statements of Income. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(amounts in thousands, except share and per share data) | |||||||
Net income available to common shareholders | $ | 16,413 | $ | 13,952 | |||
Weighted-average number of common shares outstanding - basic | 26,945,062 | 26,777,389 | |||||
Share-based compensation plans | 1,530,409 | 1,276,340 | |||||
Warrants | 307,630 | 284,074 | |||||
Weighted-average number of common shares - diluted | 28,783,101 | 28,337,803 | |||||
Basic earnings per common share | $ | 0.61 | $ | 0.52 | |||
Diluted earnings per common share | $ | 0.57 | $ | 0.49 |
Three Months Ended March 31, | |||||
2016 | 2015 | ||||
Anti-dilutive securities: | |||||
Share-based compensation awards | 606,995 | 18,683 | |||
Warrants | 52,242 | 52,242 | |||
Total anti-dilutive securities | 659,237 | 70,925 |
March 31, 2016 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(amounts in thousands) | |||||||||||||||
Available for Sale: | |||||||||||||||
Agency-guaranteed residential mortgage-backed securities | $ | 285,259 | $ | 2,359 | $ | (1,329 | ) | $ | 286,289 | ||||||
Agency-guaranteed commercial real estate mortgage-backed securities | 204,921 | 2,485 | (9 | ) | 207,397 | ||||||||||
Corporate notes (1) | 44,927 | 303 | (209 | ) | 45,021 | ||||||||||
Equity securities (2) | 22,514 | — | (5,056 | ) | 17,458 | ||||||||||
$ | 557,621 | $ | 5,147 | $ | (6,603 | ) | $ | 556,165 |
(1) | Includes subordinated debt issued by other bank holding companies. |
December 31, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(amounts in thousands) | |||||||||||||||
Available for Sale: | |||||||||||||||
Agency-guaranteed residential mortgage-backed securities | $ | 299,392 | $ | 1,453 | $ | (2,741 | ) | $ | 298,104 | ||||||
Agency-guaranteed commercial real estate mortgage-backed securities | 206,719 | — | (3,849 | ) | 202,870 | ||||||||||
Corporate notes (1) | 39,925 | 320 | (178 | ) | 40,067 | ||||||||||
Equity securities (2) | 22,514 | — | (3,302 | ) | 19,212 | ||||||||||
$ | 568,550 | $ | 1,773 | $ | (10,070 | ) | $ | 560,253 |
(1) | Includes subordinated debt issued by other bank holding companies. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(amounts in thousands) | |||||||
Proceeds from sale of available-for-sale securities | $ | 2,848 | $ | — | |||
Gross gains | $ | 26 | — | ||||
Gross losses | — | — | |||||
Net gains | $ | 26 | $ | — |
March 31, 2016 | |||||||
Amortized Cost | Fair Value | ||||||
(amounts in thousands) | |||||||
Due in one year or less | $ | — | $ | — | |||
Due after one year through five years | — | — | |||||
Due after five years through ten years | 37,927 | 37,911 | |||||
Due after ten years | 7,000 | 7,110 | |||||
Agency-guaranteed residential mortgage-backed securities | 285,259 | 286,289 | |||||
Agency-guaranteed commercial real estate mortgage-backed securities | 204,921 | 207,397 | |||||
Total debt securities | $ | 535,107 | $ | 538,707 |
March 31, 2016 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||
Agency-guaranteed residential mortgage-backed securities | $ | 13,858 | $ | (23 | ) | $ | 56,604 | $ | (1,306 | ) | $ | 70,462 | $ | (1,329 | ) | ||||||||
Agency-guaranteed commercial real estate mortgage-backed securities | 20,954 | (9 | ) | — | — | 20,954 | (9 | ) | |||||||||||||||
Corporate notes (1) | 18,718 | (209 | ) | — | — | 18,718 | (209 | ) | |||||||||||||||
Equity securities (2) | 17,452 | (5,055 | ) | 6 | (1 | ) | 17,458 | (5,056 | ) | ||||||||||||||
Total | $ | 70,982 | $ | (5,296 | ) | $ | 56,610 | $ | (1,307 | ) | $ | 127,592 | $ | (6,603 | ) |
December 31, 2015 | |||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Available for Sale: | |||||||||||||||||||||||
Agency-guaranteed residential mortgage-backed securities | $ | 102,832 | $ | (535 | ) | $ | 57,357 | $ | (2,206 | ) | 160,189 | $ | (2,741 | ) | |||||||||
Agency-guaranteed commercial real estate mortgage-backed securities | 202,870 | (3,849 | ) | — | — | 202,870 | (3,849 | ) | |||||||||||||||
Corporate notes (1) | 9,748 | (178 | ) | — | — | 9,748 | (178 | ) | |||||||||||||||
Equity securities (2) | 19,206 | (3,301 | ) | 6 | (1 | ) | 19,212 | (3,302 | ) | ||||||||||||||
Total | $ | 334,656 | $ | (7,863 | ) | $ | 57,363 | $ | (2,207 | ) | $ | 392,019 | $ | (10,070 | ) |
(1) | Includes subordinated debt issued by other bank holding companies. |
March 31, 2016 | December 31, 2015 | ||||||
(amounts in thousands) | |||||||
Commercial loans: | |||||||
Mortgage warehouse loans at fair value | $ | 1,940,558 | $ | 1,754,950 | |||
Multi-family loans at lower of cost or fair value | 27,678 | 39,257 | |||||
Commercial loans held for sale | 1,968,236 | 1,794,207 | |||||
Consumer loans: | |||||||
Residential mortgage loans at fair value | 1,044 | 2,857 | |||||
Loans held for sale | $ | 1,969,280 | $ | 1,797,064 |
March 31, 2016 | December 31, 2015 | ||||||
(amounts in thousands) | |||||||
Commercial: | |||||||
Multi-family | $ | 3,210,177 | $ | 2,909,439 | |||
Commercial and industrial (including owner occupied commercial real estate) | 1,160,389 | 1,111,400 | |||||
Commercial real estate non-owner occupied | 1,052,162 | 956,255 | |||||
Construction | 103,061 | 87,240 | |||||
Total commercial loans | 5,525,789 | 5,064,334 | |||||
Consumer: | |||||||
Residential real estate | 267,031 | 271,613 | |||||
Manufactured housing | 110,830 | 113,490 | |||||
Other | 3,474 | 3,708 | |||||
Total consumer loans | 381,335 | 388,811 | |||||
Total loans receivable | 5,907,124 | 5,453,145 | |||||
Deferred costs and unamortized premiums, net | 191 | 334 | |||||
Allowance for loan losses | (37,605 | ) | (35,647 | ) | |||
Loans receivable, net of allowance for loan losses | $ | 5,869,710 | $ | 5,417,832 |
March 31, 2016 | |||||||||||||||||||||||||||
30-89 Days Past Due (1) | 90 Days Or More Past Due(1) | Total Past Due (1) | Non- Accrual | Current (2) | Purchased- Credit- Impaired Loans (3) | Total Loans (4) | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||
Multi-family | $ | — | $ | — | $ | — | $ | — | $ | 3,206,569 | $ | 3,608 | $ | 3,210,177 | |||||||||||||
Commercial and industrial | 4 | — | 4 | 6,035 | 841,166 | 1,470 | 848,675 | ||||||||||||||||||||
Commercial real estate - owner occupied | — | — | — | 2,689 | 296,285 | 12,740 | 311,714 | ||||||||||||||||||||
Commercial real estate - non-owner occupied | — | — | — | 2,610 | 1,037,684 | 11,868 | 1,052,162 | ||||||||||||||||||||
Construction | — | — | — | — | 102,827 | 234 | 103,061 | ||||||||||||||||||||
Residential real estate | 3,487 | — | 3,487 | 2,325 | 253,006 | 8,213 | 267,031 | ||||||||||||||||||||
Manufactured housing (5) | 3,296 | 2,292 | 5,588 | 2,356 | 99,572 | 3,314 | 110,830 | ||||||||||||||||||||
Other consumer | 20 | — | 20 | 99 | 3,127 | 228 | 3,474 | ||||||||||||||||||||
Total | $ | 6,807 | $ | 2,292 | $ | 9,099 | $ | 16,114 | $ | 5,840,236 | $ | 41,675 | $ | 5,907,124 | |||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
30-89 Days Past Due (1) | 90 Days Or More Past Due(1) | Total Past Due (1) | Non- Accrual | Current (2) | Purchased- Credit- Impaired Loans (3) | Total Loans (4) | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||
Multi-family | $ | — | $ | — | $ | — | $ | — | $ | 2,905,789 | $ | 3,650 | $ | 2,909,439 | |||||||||||||
Commercial and industrial | 39 | — | 39 | 1,973 | 799,595 | 1,552 | 803,159 | ||||||||||||||||||||
Commercial real estate - owner occupied | 268 | — | 268 | 2,700 | 292,312 | 12,961 | 308,241 | ||||||||||||||||||||
Commercial real estate - non-owner occupied | 1,997 | — | 1,997 | 1,307 | 940,895 | 12,056 | 956,255 | ||||||||||||||||||||
Construction | — | — | — | — | 87,006 | 234 | 87,240 | ||||||||||||||||||||
Residential real estate | 2,986 | — | 2,986 | 2,202 | 257,984 | 8,441 | 271,613 | ||||||||||||||||||||
Manufactured housing (5) | 3,752 | 2,805 | 6,557 | 2,449 | 101,132 | 3,352 | 113,490 | ||||||||||||||||||||
Other consumer | 107 | — | 107 | 140 | 3,227 | 234 | 3,708 | ||||||||||||||||||||
Total | $ | 9,149 | $ | 2,805 | $ | 11,954 | $ | 10,771 | $ | 5,387,940 | $ | 42,480 | $ | 5,453,145 |
(1) | Includes past due loans that are accruing interest because collection is considered probable. |
(2) | Loans where next payment due is less than 30 days from the report date. |
(3) | Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Because of the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. |
(4) | Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses. |
(5) | Manufactured housing loans purchased in 2010 are subject to cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. |
Three Months Ended March 31, 2016 | Multi-family | Commercial and Industrial | Commercial Real Estate Owner Occupied | Commercial Real Estate Non-Owner Occupied | Construction | Residential Real Estate | Manufactured Housing | Other Consumer | Total | ||||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||||||||||
Ending Balance, December 31, 2015 | $ | 12,016 | $ | 8,864 | $ | 1,348 | $ | 8,420 | $ | 1,074 | $ | 3,298 | $ | 494 | $ | 133 | $ | 35,647 | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | — | (42 | ) | (42 | ) | ||||||||||||||||||||||||
Recoveries | — | 56 | — | 8 | 433 | — | — | — | 497 | ||||||||||||||||||||||||||
Provision for loan losses | 119 | 1,039 | 62 | 120 | (243 | ) | 378 | (26 | ) | 54 | 1,503 | ||||||||||||||||||||||||
Ending Balance, March 31, 2016 | $ | 12,135 | $ | 9,959 | $ | 1,410 | $ | 8,548 | $ | 1,264 | $ | 3,676 | $ | 468 | $ | 145 | $ | 37,605 | |||||||||||||||||
As of March 31, 2016 | |||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 393 | $ | 27,286 | $ | 9,936 | $ | 4,624 | $ | — | $ | 4,843 | $ | 8,898 | $ | 98 | $ | 56,078 | |||||||||||||||||
Collectively evaluated for impairment | 3,206,176 | 819,919 | 289,038 | 1,035,670 | 102,827 | 253,975 | 98,618 | 3,148 | 5,809,371 | ||||||||||||||||||||||||||
Loans acquired with credit deterioration | 3,608 | 1,470 | 12,740 | 11,868 | 234 | 8,213 | 3,314 | 228 | 41,675 | ||||||||||||||||||||||||||
$ | 3,210,177 | $ | 848,675 | $ | 311,714 | $ | 1,052,162 | $ | 103,061 | $ | 267,031 | $ | 110,830 | $ | 3,474 | $ | 5,907,124 | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 209 | $ | 2,834 | $ | 1 | $ | 135 | $ | — | $ | 445 | $ | — | $ | 46 | $ | 3,670 | |||||||||||||||||
Collectively evaluated for impairment | 11,926 | 6,906 | 1,409 | 4,229 | 1,264 | 2,193 | 97 | 43 | 28,067 | ||||||||||||||||||||||||||
Loans acquired with credit deterioration | — | 219 | — | 4,184 | — | 1,038 | 371 | 56 | 5,868 | ||||||||||||||||||||||||||
$ | 12,135 | $ | 9,959 | $ | 1,410 | $ | 8,548 | $ | 1,264 | $ | 3,676 | $ | 468 | $ | 145 | $ | 37,605 |
Three Months Ended March 31, 2015 | Multi-family | Commercial and Industrial | Commercial Real Estate Owner Occupied | Commercial Real Estate Non-Owner Occupied | Construction | Residential Real Estate | Manufactured Housing | Other Consumer | Total | ||||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||||||||||
Ending Balance, December 31, 2014 | $ | 8,493 | $ | 4,784 | $ | 4,336 | $ | 9,198 | $ | 1,047 | $ | 2,698 | $ | 262 | $ | 114 | $ | 30,932 | |||||||||||||||||
Charge-offs | — | (21 | ) | — | (318 | ) | (769 | ) | — | — | (36 | ) | (1,144 | ) | |||||||||||||||||||||
Recoveries | — | 22 | 14 | 9 | 15 | — | — | 83 | 143 | ||||||||||||||||||||||||||
Provision for loan losses | (297 | ) | 1,962 | 233 | 849 | 559 | 297 | 84 | (52 | ) | 3,635 | ||||||||||||||||||||||||
Ending Balance, March 31, 2015 | $ | 8,196 | $ | 6,747 | $ | 4,583 | $ | 9,738 | $ | 852 | $ | 2,995 | $ | 346 | $ | 109 | $ | 33,566 | |||||||||||||||||
As of December 31, 2015 | |||||||||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 661 | $ | 17,621 | $ | 8,329 | $ | 4,831 | $ | — | $ | 4,726 | $ | 8,300 | $ | 140 | $ | 44,608 | |||||||||||||||||
Collectively evaluated for impairment | 2,905,128 | 783,986 | 286,951 | 939,368 | 87,006 | 258,446 | 101,838 | 3,334 | 5,366,057 | ||||||||||||||||||||||||||
Loans acquired with credit deterioration | 3,650 | 1,552 | 12,961 | 12,056 | 234 | 8,441 | 3,352 | 234 | 42,480 | ||||||||||||||||||||||||||
$ | 2,909,439 | $ | 803,159 | $ | 308,241 | $ | 956,255 | $ | 87,240 | $ | 271,613 | $ | 113,490 | $ | 3,708 | $ | 5,453,145 | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 1,990 | $ | 1 | $ | 148 | $ | — | $ | 84 | $ | — | $ | 50 | $ | 2,273 | |||||||||||||||||
Collectively evaluated for impairment | 12,016 | 6,650 | 1,347 | 3,858 | 1,074 | 2,141 | 98 | 28 | 27,212 | ||||||||||||||||||||||||||
Loans acquired with credit deterioration | — | 224 | — | 4,414 | — | 1,073 | 396 | 55 | 6,162 | ||||||||||||||||||||||||||
$ | 12,016 | $ | 8,864 | $ | 1,348 | $ | 8,420 | $ | 1,074 | $ | 3,298 | $ | 494 | $ | 133 | $ | 35,647 |
March 31, 2016 | Three Months Ended March 31, 2016 | ||||||||||||||||||
Recorded Investment Net of Charge offs | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
(amounts in thousands) | |||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Multi-family | $ | — | $ | — | $ | — | $ | 331 | $ | — | |||||||||
Commercial and industrial | 18,950 | 19,921 | — | 15,503 | 187 | ||||||||||||||
Commercial real estate owner occupied | 9,924 | 9,924 | — | 9,121 | 94 | ||||||||||||||
Commercial real estate non-owner occupied | 4,083 | 4,083 | — | 4,180 | 23 | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Other consumer | 45 | 45 | — | 47 | — | ||||||||||||||
Residential real estate | 4,154 | 4,154 | — | 4,243 | 24 | ||||||||||||||
Manufactured housing | 8,898 | 8,898 | — | 8,599 | 109 | ||||||||||||||
With an allowance recorded: | |||||||||||||||||||
Multi-family | 393 | 393 | 209 | 197 | 5 | ||||||||||||||
Commercial and industrial | 8,336 | 8,685 | 2,834 | 6,951 | 71 | ||||||||||||||
Commercial real estate owner occupied | 12 | 12 | 1 | 12 | — | ||||||||||||||
Commercial real estate non-owner occupied | 541 | 541 | 135 | 548 | 2 | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Other consumer | 53 | 53 | 46 | 73 | — | ||||||||||||||
Residential real estate | 689 | 689 | 445 | 542 | — | ||||||||||||||
Total | $ | 56,078 | $ | 57,398 | $ | 3,670 | $ | 50,347 | $ | 515 |
December 31, 2015 | Three Months Ended March 31, 2015 | ||||||||||||||||||
Recorded Investment Net of Charge offs | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
(amounts in thousands) | |||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||
Multi-family | $ | 661 | $ | 661 | $ | — | $ | — | $ | — | |||||||||
Commercial and industrial | 12,056 | 13,028 | — | 10,374 | 164 | ||||||||||||||
Commercial real estate owner occupied | 8,317 | 8,317 | — | 8,668 | 110 | ||||||||||||||
Commercial real estate non-owner occupied | 4,276 | 4,276 | — | 6,587 | 83 | ||||||||||||||
Construction | — | — | — | 2,325 | — | ||||||||||||||
Other consumer | 48 | 48 | — | 21 | — | ||||||||||||||
Residential real estate | 4,331 | 4,331 | — | 3,781 | 21 | ||||||||||||||
Manufactured housing | 8,300 | 8,300 | — | 2,653 | 23 | ||||||||||||||
With an allowance recorded: | |||||||||||||||||||
Commercial and industrial | 5,565 | 5,914 | 1,990 | 4,156 | 5 | ||||||||||||||
Commercial real estate - owner occupied | 12 | 12 | 1 | 800 | — | ||||||||||||||
Commercial real estate non-owner occupied | 555 | 555 | 148 | 610 | — | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Other consumer | 92 | 92 | 50 | 84 | 1 | ||||||||||||||
Residential real estate | 395 | 395 | 84 | 364 | — | ||||||||||||||
Total | $ | 44,608 | $ | 45,929 | $ | 2,273 | $ | 40,423 | $ | 407 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||
(dollars in thousands) | |||||||||||||
Extensions of maturity | 3 | $ | 1,995 | — | $ | — | |||||||
Interest-rate reductions | 23 | 864 | 3 | 405 | |||||||||
Total | 26 | $ | 2,859 | 3 | $ | 405 |
Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | ||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||
(dollars in thousands) | |||||||||||||
Commercial and industrial | 1 | $ | 76 | — | $ | — | |||||||
Commercial real estate non-owner occupied | 1 | 1,844 | — | — | |||||||||
Manufactured housing | 23 | 864 | 2 | 207 | |||||||||
Residential real estate | 1 | 75 | 1 | 198 | |||||||||
Total loans | 26 | $ | 2,859 | 3 | $ | 405 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(amounts in thousands) | |||||||
Accretable yield balance, ending balance prior year | $ | 12,947 | $ | 17,606 | |||
Accretion to interest income | (470 | ) | (660 | ) | |||
Reclassification from nonaccretable difference and disposals, net | 145 | (1,522 | ) | ||||
Accretable yield balance, end of period | $ | 12,622 | $ | 15,424 | |||
Allowance for Loan Losses | |||||||
Three Months Ended March 31, | |||||||
(amounts in thousands) | 2016 | 2015 | |||||
Ending balance, prior year | $ | 35,647 | $ | 30,932 | |||
Provision for loan losses (1) | 1,503 | 3,635 | |||||
Charge-offs | (42 | ) | (1,144 | ) | |||
Recoveries | 497 | 143 | |||||
Ending balance | $ | 37,605 | $ | 33,566 |
FDIC Loss Sharing Receivable/ Clawback Liability | |||||||
Three Months Ended March 31, | |||||||
(amounts in thousands) | 2016 | 2015 | |||||
Ending balance, prior year | $ | (2,083 | ) | $ | 2,320 | ||
Increased (decreased) estimated cash flows (2) | (477 | ) | 671 | ||||
Other activity, net (a) | (304 | ) | 134 | ||||
Cash payments to the FDIC | 320 | 302 | |||||
Ending balance | $ | (2,544 | ) | $ | 3,427 | ||
(1) Provision for loan losses | $ | 1,503 | $ | 3,635 | |||
(2) Effect attributable to FDIC loss share arrangements | 477 | (671 | ) | ||||
Net amount reported as provision for loan losses | $ | 1,980 | $ | 2,964 |
March 31, 2016 | |||||||||||||||||||||||||||||||||||
Multi-family | Commercial and Industrial | Commercial Real Estate Owner Occupied | Commercial Real Estate Non-Owner Occupied | Construction | Residential Real Estate | Manufactured Housing | Other Consumer | Total | |||||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||||||||||
Pass/Satisfactory | $ | 3,208,368 | $ | 820,836 | $ | 299,042 | $ | 1,047,331 | $ | 103,061 | $ | 263,517 | $ | — | $ | — | $ | 5,742,155 | |||||||||||||||||
Special Mention | 393 | 19,911 | 8,059 | 2,053 | — | 280 | — | — | 30,696 | ||||||||||||||||||||||||||
Substandard | 1,416 | 7,928 | 4,613 | 2,778 | — | 3,234 | — | — | 19,969 | ||||||||||||||||||||||||||
Performing (1) | — | — | — | — | — | — | 102,886 | 3,355 | 106,241 | ||||||||||||||||||||||||||
Non-performing (2) | — | — | — | — | — | — | 7,944 | 119 | 8,063 | ||||||||||||||||||||||||||
Total | $ | 3,210,177 | $ | 848,675 | $ | 311,714 | $ | 1,052,162 | $ | 103,061 | $ | 267,031 | $ | 110,830 | $ | 3,474 | $ | 5,907,124 |
December 31, 2015 | |||||||||||||||||||||||||||||||||||
Multi-family | Commercial and Industrial | Commercial Real Estate Owner Occupied | Commercial Real Estate Non-Owner Occupied | Construction | Residential Real Estate | Manufactured Housing | Other Consumer | Total | |||||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||||||||||
Pass/Satisfactory | $ | 2,907,362 | $ | 784,892 | $ | 295,762 | $ | 950,886 | $ | 87,240 | $ | 268,210 | $ | — | $ | — | $ | 5,294,352 | |||||||||||||||||
Special Mention | 661 | 14,052 | 7,840 | 1,671 | — | 282 | — | — | 24,506 | ||||||||||||||||||||||||||
Substandard | 1,416 | 4,215 | 4,639 | 3,698 | — | 3,121 | — | — | 17,089 | ||||||||||||||||||||||||||
Performing (1) | — | — | — | — | — | — | 104,484 | 3,461 | 107,945 | ||||||||||||||||||||||||||
Non-performing (2) | — | — | — | — | — | — | 9,006 | 247 | 9,253 | ||||||||||||||||||||||||||
Total | $ | 2,909,439 | $ | 803,159 | $ | 308,241 | $ | 956,255 | $ | 87,240 | $ | 271,613 | $ | 113,490 | $ | 3,708 | $ | 5,453,145 |
(1) | Includes consumer and other installment loans not subject to risk ratings. |
(2) | Includes loans that are past due and still accruing interest and loans on nonaccrual status. |
Number of Options | Weighted- average Exercise Price | Weighted- average Remaining Contractual Term in Years | Aggregate Intrinsic Value | |||||||||
(amounts in thousands, except Weighted-average exercise price) | ||||||||||||
Outstanding at December 31, 2015 | 3,731,761 | $ | 14.33 | |||||||||
Granted | 10,000 | 26.55 | ||||||||||
Exercised | (31,169 | ) | 10.76 | 394 | ||||||||
Forfeited | — | — | ||||||||||
Expired | — | — | ||||||||||
Outstanding at March 31, 2016 | 3,710,592 | $ | 14.40 | 6.55 | $ | 34,290 | ||||||
Exercisable at March 31, 2016 | 905,561 | $ | 9.57 | 4.30 | $ | 12,731 |
Restricted Stock Units | Weighted- average Grant- date Fair Value | |||||
Outstanding and unvested at December 31, 2015 | 873,264 | $ | 14.24 | |||
Granted | 149,706 | 22.96 | ||||
Vested | (97,298 | ) | 14.78 | |||
Forfeited | (198 | ) | 17.65 | |||
Outstanding and unvested at March 31, 2016 | 925,474 | $ | 15.59 |
Actual | For Capital Adequacy Purposes (Minimum Plus Capital Buffer) | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
(amounts in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
As of March 31, 2016: | ||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 518,117 | 7.201 | % | $ | 368,754 | 5.125 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 631,569 | 8.806 | % | $ | 367,589 | 5.125 | % | $ | 466,210 | 6.500 | % | ||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 597,794 | 8.308 | % | $ | 476,681 | 6.625 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 631,569 | 8.806 | % | $ | 475,176 | 6.625 | % | $ | 573,797 | 8.000 | % | ||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 740,646 | 10.294 | % | $ | 620,585 | 8.625 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 777,883 | 10.845 | % | $ | 618,625 | 8.625 | % | $ | 717,246 | 10.000 | % | ||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 597,794 | 7.151 | % | $ | 334,366 | 4.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 631,569 | 7.575 | % | $ | 333,494 | 4.000 | % | $ | 416,868 | 5.000 | % | ||||||||
As of December 31, 2015: | ||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 500,624 | 7.610 | % | $ | 296,014 | 4.500 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 565,217 | 8.620 | % | $ | 294,916 | 4.500 | % | $ | 425,990 | 6.500 | % | ||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 556,193 | 8.460 | % | $ | 394,685 | 6.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 565,217 | 8.620 | % | $ | 393,221 | 6.000 | % | $ | 524,295 | 8.000 | % | ||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 698,323 | 10.620 | % | $ | 526,247 | 8.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 710,864 | 10.850 | % | $ | 524,295 | 8.000 | % | $ | 655,369 | 10.000 | % | ||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 556,193 | 7.160 | % | $ | 310,812 | 4.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 565,217 | 7.300 | % | $ | 309,883 | 4.000 | % | $ | 387,353 | 5.000 | % |
Fair Value Measurements at March 31, 2016 | |||||||||||||||||||
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) | |||||||||||||||
(amounts in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 262,638 | $ | 262,638 | $ | 262,638 | $ | — | $ | — | |||||||||
Investment securities, available for sale | 556,165 | 556,165 | 17,458 | 538,707 | — | ||||||||||||||
Loans held for sale | 1,969,280 | 1,969,558 | — | 1,941,602 | 27,956 | ||||||||||||||
Loans receivable, net of allowance for loan losses | 5,869,710 | 5,825,695 | — | — | 5,825,695 | ||||||||||||||
FHLB, Federal Reserve Bank and other restricted stock | 92,269 | 92,269 | — | 92,269 | — | ||||||||||||||
Derivatives | 15,324 | 15,324 | — | 15,251 | 73 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Deposits | $ | 6,478,615 | $ | 6,486,780 | $ | 4,108,287 | $ | 2,378,493 | $ | — | |||||||||
Federal funds purchased | 80,000 | 80,000 | 80,000 | — | — | ||||||||||||||
FHLB advances | 1,633,700 | 1,635,165 | 1,323,700 | 311,465 | — | ||||||||||||||
Other borrowings | 86,624 | 84,784 | 59,784 | 25,000 | — | ||||||||||||||
Subordinated debt | 108,709 | 110,000 | — | 110,000 | — | ||||||||||||||
Derivatives | 22,957 | 22,957 | — | 22,957 | — |
Fair Value Measurements at December 31, 2015 | |||||||||||||||||||
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) | |||||||||||||||
(amounts in thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 264,593 | $ | 264,593 | $ | 264,593 | $ | — | $ | — | |||||||||
Investment securities, available for sale | 560,253 | 560,253 | 19,212 | 541,041 | — | ||||||||||||||
Loans held for sale | 1,797,064 | 1,797,458 | — | 1,757,807 | 39,651 | ||||||||||||||
Loans receivable, net of allowance for loan losses | 5,417,832 | 5,353,903 | — | — | 5,353,903 | ||||||||||||||
FHLB, Federal Reserve Bank and other restricted stock | 90,841 | 90,841 | — | 90,841 | — | ||||||||||||||
Derivatives | 9,295 | 9,295 | — | 9,250 | 45 | ||||||||||||||
Liabilities: | |||||||||||||||||||
Deposits | $ | 5,909,501 | $ | 5,911,754 | $ | 3,561,905 | $ | 2,349,849 | $ | — | |||||||||
Federal funds purchased | 70,000 | 70,000 | 70,000 | — | — | ||||||||||||||
FHLB advances | 1,625,300 | 1,625,468 | 1,365,300 | 260,168 | — | ||||||||||||||
Other borrowings | 86,457 | 93,804 | 68,867 | 24,937 | — | ||||||||||||||
Subordinated debt | 108,685 | 110,825 | — | 110,825 | — | ||||||||||||||
Derivatives | 13,932 | 13,932 | — | 13,932 | — |
March 31, 2016 | |||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(amounts in thousands) | |||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||
Assets | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Agency-guaranteed residential mortgage-backed securities | $ | — | $ | 286,289 | $ | — | $ | 286,289 | |||||||
Agency guaranteed commercial real estate mortgage-backed securities | — | 207,397 | — | 207,397 | |||||||||||
Corporate notes | — | 45,021 | — | 45,021 | |||||||||||
Equity securities | 17,458 | — | — | 17,458 | |||||||||||
Derivatives | — | 15,251 | 73 | 15,324 | |||||||||||
Loans held for sale – fair value option | — | 1,941,602 | — | 1,941,602 | |||||||||||
Total assets - recurring fair value measurements | $ | 17,458 | $ | 2,495,560 | $ | 73 | $ | 2,513,091 | |||||||
Liabilities | |||||||||||||||
Derivatives | $ | — | $ | 22,957 | $ | — | $ | 22,957 | |||||||
Measured at Fair Value on a Nonrecurring Basis: | |||||||||||||||
Assets | |||||||||||||||
Impaired loans, net of specific reserves of $3,670 | $ | — | $ | — | $ | 6,354 | $ | 6,354 | |||||||
Other real estate owned | — | — | 688 | 688 | |||||||||||
Total assets - nonrecurring fair value measurements | $ | — | $ | — | $ | 7,042 | $ | 7,042 |
December 31, 2015 | |||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | |||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||
(amounts in thousands) | |||||||||||||||
Measured at Fair Value on a Recurring Basis: | |||||||||||||||
Assets | |||||||||||||||
Available-for-sale securities: | |||||||||||||||
Agency-guaranteed residential mortgage-backed securities | $ | — | $ | 298,104 | $ | — | $ | 298,104 | |||||||
Agency-guaranteed commercial real estate mortgage-backed securities | — | 202,870 | — | 202,870 | |||||||||||
Corporate notes | — | 40,067 | — | 40,067 | |||||||||||
Equity securities | 19,212 | — | — | 19,212 | |||||||||||
Derivatives | — | 9,250 | 45 | $ | 9,295 | ||||||||||
Loans held for sale – fair value option | — | 1,757,807 | — | 1,757,807 | |||||||||||
Total assets - recurring fair value measurements | $ | 19,212 | $ | 2,308,098 | $ | 45 | $ | 2,327,355 | |||||||
Liabilities | |||||||||||||||
Derivatives | — | $ | 13,932 | — | $ | 13,932 | |||||||||
Measured at Fair Value on a Nonrecurring Basis: | |||||||||||||||
Assets | |||||||||||||||
Impaired loans, net of specific reserves of $2,273 | $ | — | $ | — | $ | 4,346 | $ | 4,346 | |||||||
Other real estate owned | — | — | 358 | 358 | |||||||||||
Total assets - nonrecurring fair value measurements | $ | — | $ | — | $ | 4,704 | $ | 4,704 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Residential Mortgage Loan Commitments | |||||||
(amounts in thousands) | |||||||
Balance at December 31 | $ | 45 | $ | 43 | |||
Issuances | 73 | 87 | |||||
Settlements | (45 | ) | (43 | ) | |||
Balance at March 31 | $ | 73 | $ | 87 |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
March 31, 2016 | Fair Value Estimate | Valuation Technique | Unobservable Input | Range (Weighted Average) (3) | |||||
(amounts in thousands) | |||||||||
Impaired loans | $ | 6,354 | Collateral appraisal (1) | Liquidation expenses (2) | (8)% | ||||
Other real estate owned | 688 | Collateral appraisal (1) | Liquidation expenses (2) | (8)% | |||||
Residential mortgage loan commitments | 73 | Adjusted market bid | Pull-through rate | 90% |
Quantitative Information about Level 3 Fair Value Measurements | |||||||||
December 31, 2015 | Fair Value Estimate | Valuation Technique | Unobservable Input | Range (Weighted Average) (3) | |||||
(amounts in thousands) | |||||||||
Impaired loans | $ | 4,346 | Collateral appraisal (1) | Liquidation expenses (2) | (8)% | ||||
Other real estate owned | 358 | Collateral appraisal (1) | Liquidation expenses (2) | (8)% | |||||
Residential mortgage loan commitments | 45 | Adjusted market bid | Pull-through rate | 94% |
(1) | Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals. |
(2) | Fair value is adjusted for estimated costs to sell. |
(3) | Presented as a percentage of the value determined by appraisal. |
March 31, 2016 | ||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
(amounts in thousands) | ||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||
Interest rate swaps | Other assets | $ | — | Other liabilities | $ | 7,077 | ||||||
Total | $ | — | $ | 7,077 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate swaps | Other assets | $ | 15,006 | Other liabilities | $ | 15,846 | ||||||
Credit contracts | Other assets | 245 | Other liabilities | 34 | ||||||||
Residential mortgage loan commitments | Other assets | 73 | Other liabilities | — | ||||||||
Total | $ | 15,324 | $ | 15,880 |
December 31, 2015 | ||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||
Balance Sheet | Balance Sheet | |||||||||||
Location | Fair Value | Location | Fair Value | |||||||||
(amounts in thousands) | ||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||
Interest rate swaps | Other assets | $ | — | Other liabilities | $ | 4,477 | ||||||
Total | $ | — | $ | 4,477 | ||||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Interest rate swaps | Other assets | $ | 9,088 | Other liabilities | $ | 9,455 | ||||||
Credit contracts | Other assets | 162 | Other liabilities | — | ||||||||
Residential mortgage loan commitments | Other assets | 45 | Other liabilities | — | ||||||||
Total | $ | 9,295 | $ | 9,455 |
Three Months Ended March 31, 2016 | |||||
Income Statement Location | Amount of Income (Loss) Recognized in Earnings | ||||
(amounts in thousands) | |||||
Derivatives not designated as hedging instruments: | |||||
Interest rate swaps | Other non-interest income | $ | (472 | ) | |
Credit contracts | Other non-interest income | 249 | |||
Residential mortgage loan commitments | Mortgage loan and banking income | 28 | |||
Total | $ | (195 | ) |
Three Months Ended March 31, 2015 | |||||
Income Statement Location | Amount of Income Recognized in Earnings | ||||
(amounts in thousands) | |||||
Derivatives not designated as hedging instruments: | |||||
Interest rate swaps | Other non-interest income | $ | 121 | ||
Credit contracts | Other non-interest income | 30 | |||
Residential mortgage loan commitments | Mortgage loan and banking income | 44 | |||
Total | $ | 195 |
Three Months Ended March 31, 2016 | |||||||||
Amount of Loss Recognized in OCI on Derivatives (Effective Portion) (1) | Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | |||||||
(amounts in thousands) | |||||||||
Derivatives in cash flow hedging relationships: | |||||||||
Interest rate swaps | $ | (1,625 | ) | Interest expense | $ | — |
Three Months Ended March 31, 2015 | |||||||||
Amount of Loss Recognized in OCI on Derivatives (Effective Portion) (1) | Location of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | |||||||
(amounts in thousands) | |||||||||
Derivatives in cash flow hedging relationships: | |||||||||
Interest rate swaps | $ | (1,168 | ) | Interest expense | $ | — |
(1) | Amounts presented are net of taxes |
Gross Amount of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts of Assets Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet | Net Amount | |||||||||||||||||||
Financial Instruments | Cash Collateral Received | ||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Interest rate swap derivatives with institutional counterparties | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Gross Amount of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet | ||||||||||||||||||||
Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Interest rate swap derivatives with institutional counterparties | $ | 22,923 | $ | — | $ | 22,923 | $ | — | $ | 22,832 | $ | 91 |
Gross Amount of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts of Assets Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet | Net Amount | |||||||||||||||||||
Financial Instruments | Cash Collateral Received | ||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Interest rate swap derivatives with institutional counterparties | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Gross Amount of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheet | Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | Gross Amounts Not Offset in the Consolidated Balance Sheet | Net Amount | |||||||||||||||||||
Financial Instruments | Cash Collateral Pledged | ||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Description | |||||||||||||||||||||||
Interest rate swap derivatives with institutional counterparties | $ | 13,932 | $ | — | $ | 13,932 | $ | — | $ | 13,932 | $ | — |
Three Months Ended March 31, | |||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||
Average Balance | Interest Income or Expense | Average Yield or Cost (%) | Average Balance | Interest Income or Expense | Average Yield or Cost | ||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning deposits | $ | 184,368 | $ | 246 | 0.53 | % | $ | 283,613 | $ | 179 | 0.25 | % | |||||||||
Investment securities (A) | 562,459 | 3,709 | 2.64 | 406,600 | 2,363 | 2.32 | |||||||||||||||
Loans held for sale | 1,563,399 | 14,106 | 3.63 | 1,367,301 | 10,900 | 3.23 | |||||||||||||||
Loans receivable (B) | 5,679,383 | 54,472 | 3.86 | 4,361,664 | 43,093 | 4.00 | |||||||||||||||
Other interest-earning assets | 80,135 | 865 | 4.34 | 75,068 | 2,183 | 11.80 | |||||||||||||||
Total interest-earning assets | 8,069,744 | 73,398 | 3.66 | % | 6,494,246 | 58,718 | 3.66 | % | |||||||||||||
Non-interest-earning assets | 294,489 | 281,321 | |||||||||||||||||||
Total assets | $ | 8,364,233 | $ | 6,775,567 | |||||||||||||||||
Liabilities | |||||||||||||||||||||
Interest checking accounts | $ | 128,605 | 195 | 0.61 | % | $ | 93,880 | 154 | 0.67 | % | |||||||||||
Money market deposit accounts | 2,949,913 | 4,093 | 0.56 | 2,196,850 | 3,021 | 0.56 | |||||||||||||||
Other savings accounts | 41,164 | 22 | 0.21 | 35,138 | 38 | 0.44 | |||||||||||||||
Certificates of deposit | 2,356,464 | 5,902 | 1.01 | 1,795,394 | 4,313 | 0.97 | |||||||||||||||
Total interest-bearing deposits | 5,476,146 | 10,212 | 0.75 | 4,121,262 | 7,526 | 0.74 | |||||||||||||||
Borrowings | 1,480,828 | 5,559 | 1.51 | 1,467,535 | 4,862 | 1.33 | |||||||||||||||
Total interest-bearing liabilities | 6,956,974 | 15,771 | 0.91 | 5,588,797 | 12,388 | 0.90 | |||||||||||||||
Non-interest-bearing deposits | 777,573 | 708,901 | |||||||||||||||||||
Total deposits and borrowings | 7,734,547 | 0.82 | 6,297,698 | 0.80 | |||||||||||||||||
Other non-interest-bearing liabilities | 43,677 | 24,542 | |||||||||||||||||||
Total liabilities | 7,778,224 | 6,322,240 | |||||||||||||||||||
Shareholders’ Equity | 586,009 | 453,327 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 8,364,233 | $ | 6,775,567 | |||||||||||||||||
Net interest earnings | 57,627 | 46,330 | |||||||||||||||||||
Tax-equivalent adjustment (C) | 104 | 125 | |||||||||||||||||||
Net interest earnings | $ | 57,731 | $ | 46,455 | |||||||||||||||||
Interest spread | 2.84 | % | 2.87 | % | |||||||||||||||||
Net interest margin | 2.87 | % | 2.89 | % | |||||||||||||||||
Net interest margin tax equivalent (C) | 2.88 | % | 2.90 | % |
(A) | For presentation in this table, average balances and the corresponding average yields for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. |
(B) | Includes non-accrual loans, the effect of which is to reduce the yield earned on loans, and deferred loan fees. |
(C) | Full tax-equivalent basis, using a 35% statutory tax rate to approximate interest income as a taxable asset. |
Three Months Ended March 31, | |||||||||||
2016 vs. 2015 | |||||||||||
Increase (Decrease) due to Change in | |||||||||||
Rate | Volume | Total | |||||||||
(amounts in thousands) | |||||||||||
Interest income: | |||||||||||
Interest-earning deposits | $ | 147 | $ | (80 | ) | $ | 67 | ||||
Investment securities | 350 | 996 | 1,346 | ||||||||
Loans held for sale | 1,478 | 1,728 | 3,206 | ||||||||
Loans receivable | (1,613 | ) | 12,992 | 11,379 | |||||||
Other interest-earning assets | (1,459 | ) | 141 | (1,318 | ) | ||||||
Total interest income | (1,097 | ) | 15,777 | 14,680 | |||||||
Interest expense: | |||||||||||
Interest checking accounts | (14 | ) | 55 | 41 | |||||||
Money market deposit accounts | 2 | 1,070 | 1,072 | ||||||||
Savings accounts | (22 | ) | 6 | (16 | ) | ||||||
Certificates of deposit | 157 | 1,432 | 1,589 | ||||||||
Total interest-bearing deposits | 123 | 2,563 | 2,686 | ||||||||
Borrowings | 651 | 46 | 697 | ||||||||
Total interest expense | 774 | 2,609 | 3,383 | ||||||||
Net interest income | $ | (1,871 | ) | $ | 13,168 | $ | 11,297 |
• | Multi-family average loan balances increased $855 million, commercial loan average balances increased $428 million and mortgage banking average balances increased $275 million. |
• | Net interest margin declined 2 basis points as the increased yields on the mortgage warehouse portfolio were offset by lower yields on the commercial loan portfolio and higher rates on short term borrowings used to fund the mortgage warehouse portfolio. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(amounts in thousands) | |||||||
Mortgage warehouse transactional fees | $ | 2,548 | $ | 2,273 | |||
Bank-owned life insurance | 1,123 | 1,061 | |||||
Gain on sale of loans | 644 | 1,231 | |||||
Deposit fees | 255 | 179 | |||||
Mortgage loans and banking income | 165 | 151 | |||||
Gain on sale of investment securities | 26 | — | |||||
Other | 733 | 838 | |||||
Total non-interest income | $ | 5,494 | $ | 5,733 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(amounts in thousands) | |||||||
Salaries and employee benefits | $ | 17,332 | $ | 13,952 | |||
FDIC assessments, taxes, and regulatory fees | 4,030 | 3,278 | |||||
Professional services | 2,657 | 1,913 | |||||
Technology, communication and bank operations | 2,643 | 2,531 | |||||
Occupancy | 2,325 | 2,101 | |||||
Loan workout | 418 | 269 | |||||
Other real estate owned | 287 | 884 | |||||
Advertising and promotion | 256 | 347 | |||||
Other | 3,957 | 2,190 | |||||
Total non-interest expense | $ | 33,905 | $ | 27,465 |
March 31, 2016 | December 31, 2015 | ||||||
(amounts in thousands) | |||||||
Cash and cash equivalents | $ | 262,638 | $ | 264,593 | |||
Investment securities, available for sale | 556,165 | 560,253 | |||||
Loans held for sale (includes $1,941,602 and $1,757,807, respectively, at fair value) | 1,969,280 | 1,797,064 | |||||
Loans receivable | 5,907,315 | 5,453,479 | |||||
Allowance for loan losses | (37,605 | ) | (35,647 | ) | |||
Total assets | 9,038,882 | 8,398,205 | |||||
Total deposits | 6,478,615 | 5,909,501 | |||||
Federal funds purchased | 80,000 | 70,000 | |||||
FHLB advances | 1,633,700 | 1,625,300 | |||||
Other borrowings | 86,624 | 86,457 | |||||
Subordinated debt | 108,709 | 108,685 | |||||
Total liabilities | 8,439,633 | 7,844,303 | |||||
Total shareholders’ equity | 599,249 | 553,902 | |||||
Total liabilities and shareholders’ equity | 9,038,882 | 8,398,205 |
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
(amounts in thousands) | |||||||
Commercial loans: | |||||||
Mortgage warehouse loans at fair value | $ | 1,940,558 | $ | 1,754,950 | |||
Multi-family loans at lower of cost or fair value | 27,678 | 39,257 | |||||
Total commercial loans held for sale | 1,968,236 | 1,794,207 | |||||
Consumer loans: | |||||||
Residential mortgage loans at fair value | 1,044 | 2,857 | |||||
Loans held for sale | $ | 1,969,280 | $ | 1,797,064 |
March 31, | December 31, | ||||||
2016 | 2015 | ||||||
(amounts in thousands) | |||||||
Commercial: | |||||||
Multi-family | $ | 3,210,177 | $ | 2,909,439 | |||
Commercial and industrial (including owner occupied commercial real estate) | 1,160,389 | 1,111,400 | |||||
Commercial real estate non-owner occupied | 1,052,162 | 956,255 | |||||
Construction | 103,061 | 87,240 | |||||
Total commercial loans | 5,525,789 | 5,064,334 | |||||
Consumer: | |||||||
Residential real estate | 267,031 | 271,613 | |||||
Manufactured housing | 110,830 | 113,490 | |||||
Other | 3,474 | 3,708 | |||||
Total consumer loans | 381,335 | 388,811 | |||||
Total loans receivable | 5,907,124 | 5,453,145 | |||||
Deferred costs and unamortized premiums, net | 191 | 334 | |||||
Allowance for loan losses | (37,605 | ) | (35,647 | ) | |||
Loans receivable, net of allowance for loan losses | $ | 5,869,710 | $ | 5,417,832 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
(amounts in thousands) | |||||||
Balance at December 31 | $ | 35,647 | $ | 30,932 | |||
Loan charge-offs (1) | |||||||
Commercial and industrial | — | 21 | |||||
Commercial real estate owner occupied | — | — | |||||
Commercial real estate non-owner occupied | — | 318 | |||||
Construction | — | 769 | |||||
Residential real estate | — | — | |||||
Other consumer | 42 | 36 | |||||
Total Charge-offs | 42 | 1,144 | |||||
Loan recoveries (1) | |||||||
Commercial and industrial | 56 | 22 | |||||
Commercial real estate owner occupied | — | 14 | |||||
Commercial real estate non-owner occupied | 8 | 9 | |||||
Construction | 433 | 15 | |||||
Residential real estate | — | — | |||||
Other consumer | — | 83 | |||||
Total Recoveries | 497 | 143 | |||||
Total net charge-offs/(recoveries) | (455 | ) | 1,001 | ||||
Provision for loan losses (2) | 1,503 | 3,635 | |||||
Balance at March 31 | $ | 37,605 | $ | 33,566 |
(1) | Charge-offs and recoveries on purchased-credit-impaired loans that are accounted for in pools are recognized on a net basis when the pool matures. |
(2) | The provision amounts exclude the (cost)/benefit of the FDIC loss share arrangements of $(0.5) million and $0.7 million, respectively. |
Loan Type | Total Loans | Current | 30-89 Days | 90 Days or More and Accruing | Non- accrual/ NPL (a) | OREO (b) | NPA (a)+(b) | NPL to Loan Type (%) | NPA to Loans + OREO (%) | ||||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||||||||||
Originated Loans | |||||||||||||||||||||||||||||||||
Multi-Family | 3,204,625 | 3,204,625 | — | — | — | — | — | — | % | — | % | ||||||||||||||||||||||
Commercial & Industrial (1) | 1,044,325 | 1,037,487 | — | — | 6,838 | 153 | 6,991 | 0.65 | % | 0.67 | % | ||||||||||||||||||||||
Commercial Real Estate Non-Owner Occupied | 1,003,667 | 1,003,396 | — | — | 271 | — | 271 | 0.03 | % | 0.03 | % | ||||||||||||||||||||||
Residential | 115,532 | 115,094 | 406 | — | 32 | — | 32 | 0.03 | % | 0.03 | % | ||||||||||||||||||||||
Construction | 102,827 | 102,827 | — | — | — | — | — | — | % | — | % | ||||||||||||||||||||||
Other consumer | 600 | 593 | 7 | — | — | — | — | — | % | — | % | ||||||||||||||||||||||
Total Originated Loans | 5,471,576 | 5,464,022 | 413 | — | 7,141 | 153 | 7,294 | 0.13 | % | 0.13 | % | ||||||||||||||||||||||
Loans Acquired | |||||||||||||||||||||||||||||||||
Bank Acquisitions | 202,080 | 186,304 | 3,252 | 5,908 | 6,616 | 4,428 | 11,044 | 3.27 | % | 5.35 | % | ||||||||||||||||||||||
Loan Purchases | 233,468 | 223,792 | 3,384 | 3,935 | 2,357 | 525 | 2,882 | 1.01 | % | 1.23 | % | ||||||||||||||||||||||
Total Loans Acquired | 435,548 | 410,096 | 6,636 | 9,843 | 8,973 | 4,953 | 13,926 | 2.06 | % | 3.16 | % | ||||||||||||||||||||||
Deferred costs and unamortized premiums, net | 191 | 191 | — | — | — | — | — | ||||||||||||||||||||||||||
Total Loans Receivable | 5,907,315 | 5,874,309 | 7,049 | 9,843 | 16,114 | 5,106 | 21,220 | 0.27 | % | 0.36 | % | ||||||||||||||||||||||
Total Loans Held for Sale | 1,969,280 | 1,969,280 | — | — | — | — | — | ||||||||||||||||||||||||||
Total Portfolio | $ | 7,876,595 | $ | 7,843,589 | $ | 7,049 | $ | 9,843 | $ | 16,114 | $ | 5,106 | $ | 21,220 | 0.20 | % | 0.27 | % |
Loan Type | Total Loans | NPL | ALL | Cash Reserve | Total Credit Reserves | Reserves to Loans (%) | Reserves to NPLs (%) | ||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||||
Originated Loans | |||||||||||||||||||||||||
Multi-Family | 3,204,625 | — | 12,135 | — | 12,135 | 0.38 | % | — | % | ||||||||||||||||
Commercial & Industrial (1) | 1,044,325 | 6,838 | 10,058 | — | 10,058 | 0.96 | % | 147.09 | % | ||||||||||||||||
Commercial Real Estate Non-Owner Occupied | 1,003,667 | 271 | 4,073 | — | 4,073 | 0.41 | % | 1,502.95 | % | ||||||||||||||||
Residential | 115,532 | 32 | 2,082 | — | 2,082 | 1.80 | % | 6,506.25 | % | ||||||||||||||||
Construction | 102,827 | — | 1,264 | — | 1,264 | 1.23 | % | — | % | ||||||||||||||||
Other consumer | 600 | — | 7 | — | 7 | 1.17 | % | — | % | ||||||||||||||||
Total Originated Loans | 5,471,576 | 7,141 | 29,619 | — | 29,619 | 0.54 | % | 414.77 | % | ||||||||||||||||
Loans Acquired | |||||||||||||||||||||||||
Bank Acquisitions | 202,080 | 6,616 | 7,518 | — | 7,518 | 3.72 | % | 113.63 | % | ||||||||||||||||
Loan Purchases | 233,468 | 2,357 | 468 | 1,407 | 1,875 | 0.80 | % | 79.55 | % | ||||||||||||||||
Total Loans Acquired | 435,548 | 8,973 | 7,986 | 1,407 | 9,393 | 2.16 | % | 104.68 | % | ||||||||||||||||
Deferred costs and unamortized premiums, net | 191 | — | — | — | — | ||||||||||||||||||||
Total Loans Receivable | 5,907,315 | 16,114 | 37,605 | 1,407 | 39,012 | 0.66 | % | 242.10 | % | ||||||||||||||||
Total Loans Held for Sale | 1,969,280 | — | — | — | — | ||||||||||||||||||||
Total Portfolio | $ | 7,876,595 | $ | 16,114 | $ | 37,605 | $ | 1,407 | $ | 39,012 | 0.50 | % | 242.10 | % |
March 31, 2016 | December 31, 2015 | ||||||
(amounts in thousands) | |||||||
Demand | $ | 913,107 | $ | 780,894 | |||
Savings, including MMDA | 3,195,180 | 2,781,010 | |||||
Time, $100,000 and over | 1,673,375 | 1,624,562 | |||||
Time, other | 696,953 | 723,035 | |||||
Total deposits | $ | 6,478,615 | $ | 5,909,501 |
• | net income of $17.7 million for the three months ended March 31, 2016; |
• | net other comprehensive income of $2.7 million for the three months ended March 31, 2016; |
• | share-based compensation expense of $1.4 million for the three months ended March 31, 2016; offset in part by |
• | the accrual of preferred stock dividends of $1.3 million for the three months ended March 31, 2016. |
Actual | For Capital Adequacy Purposes (Minimum Plus Capital Buffer) | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
(amounts in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
As of March 31, 2016: | ||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 518,117 | 7.201 | % | $ | 368,754 | 5.125 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 631,569 | 8.806 | % | $ | 367,589 | 5.125 | % | $ | 466,210 | 6.500 | % | ||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 597,794 | 8.308 | % | $ | 476,681 | 6.625 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 631,569 | 8.806 | % | $ | 475,176 | 6.625 | % | $ | 573,797 | 8.000 | % | ||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 740,646 | 10.294 | % | $ | 620,585 | 8.625 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 777,883 | 10.845 | % | $ | 618,625 | 8.625 | % | $ | 717,246 | 10.000 | % | ||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 597,794 | 7.151 | % | $ | 334,366 | 4.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 631,569 | 7.575 | % | $ | 333,494 | 4.000 | % | $ | 416,868 | 5.000 | % | ||||||||
As of December 31, 2015: | ||||||||||||||||||||
Common equity Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 500,624 | 7.610 | % | $ | 296,014 | 4.500 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 565,217 | 8.620 | % | $ | 294,916 | 4.500 | % | $ | 425,990 | 6.500 | % | ||||||||
Tier 1 capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 556,193 | 8.460 | % | $ | 394,685 | 6.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 565,217 | 8.620 | % | $ | 393,221 | 6.000 | % | $ | 524,295 | 8.000 | % | ||||||||
Total capital (to risk weighted assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 698,323 | 10.620 | % | $ | 526,247 | 8.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 710,864 | 10.850 | % | $ | 524,295 | 8.000 | % | $ | 655,369 | 10.000 | % | ||||||||
Tier 1 capital (to average assets) | ||||||||||||||||||||
Customers Bancorp, Inc. | $ | 556,193 | 7.160 | % | $ | 310,812 | 4.000 | % | N/A | N/A | ||||||||||
Customers Bank | $ | 565,217 | 7.300 | % | $ | 309,883 | 4.000 | % | $ | 387,353 | 5.000 | % |
March 31, 2016 | December 31, 2015 | ||||||
(amounts in thousands) | |||||||
Commitments to fund loans | $ | 287,293 | $ | 537,380 | |||
Unfunded commitments to fund mortgage warehouse loans | 1,259,641 | 1,302,759 | |||||
Unfunded commitments under lines of credit | 462,906 | 436,550 | |||||
Letters of credit | 36,481 | 42,002 | |||||
Other unused commitments | 6,399 | 6,360 |
Rate Shocks | % Change | |
Up 3% | (9.4 | )% |
Up 2% | (2.6 | )% |
Up 1% | 0.7 | % |
Down 1% | (1.2 | )% |
Rate Shocks | From base | |
Up 3% | (30.8 | )% |
Up 2% | (14.9 | )% |
Up 1% | (4.4 | )% |
Down 1% | (1.8 | )% |
Balance Sheet Gap Analysis at March 31, 2016 | |||||||||||||||||||||||||||
3 months or less | 3 to 6 months | 6 to 12 months | 1 to 3 years | 3 to 5 years | Over 5 years | Total | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||
Interest earning deposits and federal funds sold | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 198,788 | $ | 198,788 | |||||||||||||
Investment securities | 32,272 | 30,910 | 58,015 | 187,832 | 141,572 | 83,325 | 533,926 | ||||||||||||||||||||
Loans (a) | 3,128,594 | 147,374 | 271,475 | 1,637,380 | 2,383,926 | 265,390 | 7,834,139 | ||||||||||||||||||||
Other interest-earning assets | — | — | — | — | 94,971 | — | 94,971 | ||||||||||||||||||||
Total interest-earning assets | 3,160,866 | 178,284 | 329,490 | 1,825,212 | 2,620,469 | 547,503 | 8,661,824 | ||||||||||||||||||||
Non interest-earning assets | — | — | — | — | — | 344,700 | 344,700 | ||||||||||||||||||||
Total assets | 3,160,866 | 178,284 | 329,490 | 1,825,212 | 2,620,469 | 892,203 | $ | 9,006,524 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||
Other interest-bearing deposits | $ | 59,735 | $ | 57,686 | $ | 109,530 | $ | 370,248 | $ | 2,559,470 | $ | 172,097 | $ | 3,328,766 | |||||||||||||
Time deposits | 843,656 | 306,194 | 605,883 | 514,839 | 101,656 | 1 | 2,372,229 | ||||||||||||||||||||
Other borrowings | 1,368,700 | — | 35,000 | 310,000 | — | — | 1,713,700 | ||||||||||||||||||||
Subordinated debt | — | — | — | — | — | 108,709 | 108,709 | ||||||||||||||||||||
Total interest-bearing liabilities | 2,272,091 | 363,880 | 750,413 | 1,195,087 | 2,661,126 | 280,807 | 7,523,404 | ||||||||||||||||||||
Non-interest-bearing liabilities | 30,772 | 29,546 | 55,610 | 182,298 | 358,299 | 193,571 | 850,096 | ||||||||||||||||||||
Shareholders’ equity | — | — | — | — | — | 633,024 | 633,024 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | 2,302,863 | 393,426 | 806,023 | 1,377,385 | 3,019,425 | 1,107,402 | $ | 9,006,524 | |||||||||||||||||||
Interest sensitivity gap | $ | 858,003 | $ | (215,142 | ) | $ | (476,533 | ) | $ | 447,827 | $ | (398,956 | ) | $ | (215,199 | ) | — | ||||||||||
Cumulative interest sensitivity gap | $ | 642,861 | $ | 166,328 | $ | 614,155 | $ | 215,199 | $ | — | |||||||||||||||||
Cumulative interest sensitivity gap to total assets | 9.5 | % | 7.1 | % | 1.8 | % | 6.8 | % | 2.4 | % | 0.0 | % | |||||||||||||||
Cumulative interest-earning assets to cumulative interest-bearing liabilities | 137.3 | % | 123.8 | % | 104.7 | % | 112.6 | % | 102.7 | % | 100.0 | % |
Exhibit No. | Description | |
3.1 | Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012 | |
3.2 | Amended and Restated Bylaws of Customers Bancorp, incorporated by reference to Exhibit 3.2 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012 | |
3.3 | Articles of Amendment to the Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on July 2, 2012 | |
3.4 | Statement with Respect to Shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on May 18, 2015 | |
3.5 | Statement with Respect to Shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on January 29, 2016 | |
4.1 | Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.1 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013 | |
4.2 | First Supplemental Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.2 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013 | |
4.3 | 6.375% Global Note in aggregate principal amount of $55,000,000, incorporated by reference to Exhibit 4.3 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013 | |
4.4 | Amendment to First Supplemental Indenture, dated August 27, 2013, by and between Customers Bancorp, Inc. and Wilmington Trust Company, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Customers Bancorp 8-K filed with the SEC on August 29, 2013. | |
4.5 | 6.375% Global Note in aggregate principal amount of $8,250,000, incorporated by reference to Exhibit 4.2 to the Customers Bancorp 8-K filed with the SEC on August 29, 2013 | |
4.6 | Form of Note Subscription Agreement (including form of Subordinated Note Certificate and Senior Note Certificate), incorporated by reference to Exhibit 10.1 to the Customers Bancorp 8-K filed with the SEC on June 26, 2014 | |
31.1 | Certification of the Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a) | |
31.2 | Certification of the Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a) | |
32.1 | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | |
32.2 | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | |
101 | The Exhibits filed as part of this report are as follows: | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document. |
Customers Bancorp, Inc. | |||
May 5, 2016 | By: | /s/ Jay S. Sidhu | |
Name: | Jay S. Sidhu | ||
Title: | Chairman and Chief Executive Officer (Principal Executive Officer) | ||
Customers Bancorp, Inc. | |||
May 5, 2016 | By: | /s/ Robert E. Wahlman | |
Name: | Robert E. Wahlman | ||
Title: | Chief Financial Officer (Principal Financial Officer) |
Exhibit No. | Description | |
3.1 | Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012 | |
3.2 | Amended and Restated Bylaws of Customers Bancorp, incorporated by reference to Exhibit 3.2 to the Customers Bancorp’s Form 8-K filed with the SEC on April 30, 2012 | |
3.3 | Articles of Amendment to the Amended and Restated Articles of Incorporation of Customers Bancorp, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on July 2, 2012 | |
3.4 | Statement with Respect to Shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on May 18, 2015 | |
3.5 | Statement with Respect to Shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D, incorporated by reference to Exhibit 3.1 to the Customers Bancorp Form 8-K filed with the SEC on January 29, 2016 | |
4.1 | Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.1 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013 | |
4.2 | First Supplemental Indenture, dated as of July 30, 2013, by and between Customers Bancorp, Inc., as Issuer, and Wilmington Trust, National Association, as Trustee, incorporated by reference to Exhibit 4.2 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013 | |
4.3 | 6.375% Global Note in aggregate principal amount of $55,000,000, incorporated by reference to Exhibit 4.3 to the Customers Bancorp 8-K filed with the SEC on July 31, 2013 | |
4.4 | Amendment to First Supplemental Indenture, dated August 27, 2013, by and between Customers Bancorp, Inc. and Wilmington Trust Company, National Association, as trustee, incorporated by reference to Exhibit 4.1 to the Customers Bancorp 8-K filed with the SEC on August 29, 2013. | |
4.5 | 6.375% Global Note in aggregate principal amount of $8,250,000, incorporated by reference to Exhibit 4.2 to the Customers Bancorp 8-K filed with the SEC on August 29, 2013 | |
4.6 | Form of Note Subscription Agreement (including form of Subordinated Note Certificate and Senior Note Certificate), incorporated by reference to Exhibit 10.1 to the Customers Bancorp 8-K filed with the SEC on June 26, 2014 | |
31.1 | Certification of the Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a) | |
31.2 | Certification of the Chief Financial Officer Pursuant to Exchange Act Rule 13a-14(a) or Rule15d-14(a) | |
32.1 | Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | |
32.2 | Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of Sarbanes-Oxley Act of 2002 | |
101 | The Exhibits filed as part of this report are as follows: | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definitions Linkbase Document. |
1. | I have reviewed this quarterly report on Form 10-Q of Customers Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Jay S. Sidhu |
Jay S. Sidhu Chairman and Chief Executive Officer (Principal Executive Officer) |
Date: May 5, 2016 |
1. | I have reviewed this quarterly report on Form 10-Q of Customers Bancorp, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Robert E. Wahlman |
Robert E. Wahlman Chief Financial Officer (Principal Financial Officer) |
Date: May 5, 2016 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation. |
Date: May 5, 2016 | /s/ Jay S. Sidhu | |
Jay S. Sidhu, Chairman and Chief Executive Officer (Principal Executive Officer) |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation. |
Date: May 5, 2016 | /s/ Robert E. Wahlman | |
Robert E. Wahlman, Chief Financial Officer (Principal Financial Officer) |
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Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 28, 2016 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CUBI | |
Entity Registrant Name | Customers Bancorp, Inc. | |
Entity Central Index Key | 0001488813 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,044,750 |
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Loans held for sale at fair value | $ 1,941,602 | $ 1,757,807 |
Preferred stock, par value (usd per share) | $ 1.0 | $ 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) | 3,300,000 | 2,300,000 |
Preferred stock, shares outstanding (shares) | 3,300,000 | 2,300,000 |
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) | 27,567,265 | 27,432,061 |
Common stock, shares outstanding (shares) | 27,037,005 | 26,901,801 |
Treasury stock, shares (shares) | 530,260 | 530,260 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 17,699 | $ 13,952 |
Unrealized gains (losses) on securities: | ||
Unrealized holding gains on securities arising during the period | 6,867 | 459 |
Income tax effect | (2,575) | (216) |
Reclassification adjustment for gains on securities included in net income | (26) | 0 |
Income tax effect | 10 | 0 |
Net unrealized gains | 4,276 | 243 |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized losses on cash flow hedges arising during the period | (2,600) | (1,946) |
Income tax effect | 975 | 778 |
Net unrealized losses | (1,625) | (1,168) |
Other comprehensive income (loss), net of tax | 2,651 | (925) |
Comprehensive income | $ 20,350 | $ 13,027 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Common Stock | |
Offering costs | $ 15 |
Preferred Stock | |
Offering costs | $ 892 |
Description of the Business |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | DESCRIPTION OF THE BUSINESS Customers Bancorp, Inc. (the “Bancorp” or “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. The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Customers Bancorp, Inc. and its wholly owned subsidiaries, Customers Bank and non-bank subsidiaries, serve residents and businesses in Southeastern Pennsylvania (Bucks, Berks, Chester, Philadelphia and Delaware Counties); Rye, New York (Westchester County); Hamilton, New Jersey (Mercer County); Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire (Rockingham County); and Manhattan, New York. The Bank has 14 full-service branches and provides commercial banking products, primarily loans and deposits. Customers Bank provides loan and other financial products to customers through its limited purpose offices in Boston, Massachusetts, Providence, Rhode Island, Portsmouth, New Hampshire, Manhattan and Melville, New York and Philadelphia, Pennsylvania. The Bank also provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Customers 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. Customers Bancorp has made certain equity investments through its wholly owned subsidiaries CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd. |
Acquisition Activity |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition Activity | ACQUISITION ACTIVITY Pending Acquisition of Higher One, Inc.'s One Account Student Checking and Refund Management Disbursement Services Business On December 15, 2015, Customers announced that it had entered into an Asset Purchase Agreement (the "Agreement") to acquire assets related to the One Account Student Checking and Refund Management Disbursement Services business ("Disbursements") of Higher One, Inc. ("Higher One"). Pursuant to the Agreement, Customers will acquire all assets of the Disbursements business, including all property and equipment, existing contractual relationships with vendors and educational institutions, and all intellectual property, will assume certain normal business related liabilities, and will commit to hire approximately 225 current Higher One employees primarily located in New Haven, Connecticut that manage the Disbursement business and serve the customers. Customers intends to retain these team members in New Haven. Customers will pay Higher One an aggregate of $42 million in cash in connection with the acquisition of the Disbursements business. Under the Agreement, Customers will pay Higher One $17 million in cash at closing and make cash payments of $10 million each on the first and second anniversaries of the closing. Customers also will pay Higher One $5 million in cash for Higher One's services under a transition services agreement. The transaction was approved by Higher One stockholders in April 2016 with the transaction closing anticipated to occur, subject to the successful conclusion of all transition activities, in the second quarter of 2016 but no later than July 1, 2016. |
Significant Accounting Policies and Basis of Presentation |
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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 of Customers Bancorp, Inc. and subsidiaries have been prepared 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, 2015 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2015 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 2015 consolidated financial statements of Customers Bancorp and subsidiaries included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 26, 2016. That 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; Investment Securities; Loan Accounting Framework; Allowance for Loan Losses; Goodwill; Investments in FHLB, Federal Reserve Bank, and other restricted stock; Other Real Estate Owned; FDIC Loss Sharing Receivable and Clawback Liability; Bank-Owned Life Insurance; Bank Premises and Equipment; Treasury Stock; Income Taxes; Share-Based Compensation; Derivative Instruments and Hedging; Comprehensive Income; Earnings per Share and Segment Information. Certain prior period amounts have been reclassified to conform to current period presentation. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09—Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The Board issued this ASU as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In addition, the amendments in this ASU eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-07—Investments—Equity Method and Joint Ventures. To simplify the accounting for equity method investments, the amendments in the ASU eliminate the requirement in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The ASU is effective for all entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-06—Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments. Topic 815 requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amendments in this ASU clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Namely, this decision sequence requires that an entity consider whether:
The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-05—Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-04—Liabilities—Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products. When an entity sells a prepaid stored-value product (such as gift cards, telecommunication cards, and traveler’s checks), it recognizes a financial liability for its obligation to provide the product holder with the ability to purchase goods or services at a third-party merchant. When a prepaid stored-value product goes unused wholly or partially for an indefinite time period, the amount that remains on the product is referred to as breakage. There currently is diversity in the methodology used to recognize breakage. Subtopic 405-20 includes derecognition guidance for both financial liabilities and nonfinancial liabilities, and Topic 606, Revenue from Contracts with Customers, includes authoritative breakage guidance but excludes financial liabilities. The amendments in this ASU provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases. From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessees. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Customers is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall. The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In November 2015, the FASB issued ASU 2015-17, Income Taxes. The amendments in this ASU, which will align the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards (IFRS), require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The amendments in this ASU apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the guidance in this ASU eliminates the requirement to retrospectively account for those adjustments and requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance in this ASU was effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and should be applied prospectively to adjustment to provisional amounts that occur after the effective date of this ASU. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In April 2015 and August 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively. The guidance in these ASUs is intended to simplify presentation of debt issuance costs, and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with debt discounts and is applicable on a retrospective basis. The guidance in these ASUs was effective for interim and annual periods beginning after December 15, 2015. The adoption of these ASUs on January 1, 2016 resulted in a reclassification adjustment, which reduced "Other borrowings" by $1.8 million and "Subordinated debt" by $1.3 million with corresponding decrease in "Other assets" of $3.1 million as of December 31, 2015. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. The guidance in this ASU is intended to amend the update, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this ASU affect the following areas:
The guidance in this ASU was effective for annual and interim periods beginning after December 15, 2015. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The guidance in this ASU was issued as part of the FASB's initiative to reduce complexity in accounting standards and eliminates from GAAP the concept of extraordinary items. The guidance in this ASU was effective in the first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging : Determining Whether the Host contract in a Hybrid Financial Instrument in the Form of a Share is More Akin to Debt or to Equity. The guidance in this ASU requires entities that issue or invest in a hybrid financial instrument to separate an embedded derivative feature from a host contract and account for the feature as a derivative. In the case of derivatives embedded in a hybrid financial instrument that is issued in the form of a share, that criterion requires evaluating whether the nature of the host contract is more akin to debt or to equity and whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to the host contract. If the host contract is akin to equity, then equity-like features (for example, a conversion option) are considered clearly and closely related to the host contract and, thus, would not be separated from the host contract. If the host contract is akin to debt, then equity-like features are not considered clearly and closely related to the host contract. In the latter case, an entity may be required to separate the equity-like embedded derivative feature from the debt host contract if certain other criteria in Subtopic 815-15 are met. Similarly, debt-like embedded derivative features may require separate accounting from an equity-like host contract. The guidance in this ASU was effective in first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In August 2014, the FASB issued ASU 2014-13, Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. The guidance in this ASU applies to a reporting entity that is required to consolidate a collateralized financing entity under the Variable Interest Entities guidance when: (1) the reporting entity measures all of the financial assets and the financial liabilities of that consolidated collateralized financing entity at fair value in the consolidated financial statements based on other Codification Topics; and (2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. The guidance in this ASU was effective in first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation. The guidance in this ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite period, the remaining unrecognized cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The guidance in this ASU was effective in first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU establishes a comprehensive revenue recognition standard for virtually all industries following U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate and construction industries. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) identify the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. Three basic transition methods are available - full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the cumulative effect alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The guidance in this ASU is now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Customers does not expect this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-08—Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). While the ASU does not change the core provisions of Topic 606, it clarifies the implementation guidance on principal versus agent considerations. Namely, the ASU clarifies and offers guidance to help determine when the reporting entity is providing goods or services to a customer itself (i.e. the entity is a principal), or merely arranging for that good or service to be provided by the other party (i.e. the reporting entity is an agent). If the entity is a principal, it recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When the reporting entity is an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist in determining whether the Control criteria are met. If a contract with a customer includes more than one specified good or service, an entity could be a principal for some specified goods or services and an agent for others. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In March 2016, the FASB issued ASU No. 2016-10—Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. This ASU clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The ASU includes targeted improvements based on input the Board received from the Transition Resource Group for Revenue Recognition and other stakeholders. The ASU seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which will be effective for fiscal years beginning after December 31, 2016 for public entities. The effective date and transition requirements for the amendments in this Update are the same as those in Update 2014-09. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. |
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Changes in Accumulated Other Comprehensive Income (Loss) By Component | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) BY COMPONENT (1) The following tables present the changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2016 and 2015.
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Earnings Per Share | EARNINGS PER SHARE The following are the components and results of Customers' earnings per common share calculation for the periods presented.
The following is a summary of 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 to do so would have been anti-dilutive for the periods presented.
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Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of March 31, 2016 and December 31, 2015 are summarized in the tables below:
(2) Consists primarily of equity securities issued by a foreign entity.
(2) Consists primarily of equity securities issued by a foreign entity. The following table presents proceeds from the sale of available-for-sale investment securities and gross gains and gross losses realized on those sales for the three months ended March 31, 2016 and 2015:
These gains were determined using the specific identification method and were reported as gains on sale of investment securities included in non-interest income. The following table presents available-for-sale debt securities by stated maturity. Debt securities backed by mortgages 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' investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015 were as follows:
(2) Consists primarily of equity securities in a foreign entity. At March 31, 2016, there were eight available-for-sale investment securities in the less-than-twelve-month category and thirteen available-for-sale investment securities in the twelve-month-or-more category. The unrealized losses on the mortgage-backed securities are guaranteed by government-sponsored entities and primarily relate to changes in market interest rates. All amounts are expected to be recovered when market prices recover or at maturity. The unrealized losses on the equity securities reflect decreases in market price and adverse changes in foreign currency exchange rates. Customers evaluated the financial condition and capital strength of the issuer of these securities and concluded that the decline in fair value was temporary and estimated the value could reasonably recover by way of increases in market price or positive changes in foreign currency exchange rates. Customers intends to hold these securities for the foreseeable future and does not intend to sell the securities before the price recovers. Customers considers it more likely than not that it will not be required to sell the securities. Accordingly, Customers concluded that the securities are not other-than-temporarily impaired as of March 31, 2016. At March 31, 2016 and December 31, 2015, Customers Bank had pledged investment securities aggregating $286.3 million and $299.8 million fair value, respectively, as collateral against its borrowings primarily with the FHLB and an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities. |
Loans Held for Sale |
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Receivables Held-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Held for Sale | LOANS HELD FOR SALE The composition of loans held for sale as of March 31, 2016 and December 31, 2015 was as follows:
Effective September 30, 2015, Customers Bank transferred $30.4 million of multi-family loans from held for sale to loans receivable (held for investment) because the Bank no longer has the intent to sell these loans. Customers Bank transferred these loans at their carrying value, which was lower than the estimated fair value at the time of transfer. |
Loans Receivable and Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable and Allowance for Loan Losses | LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES The following table presents loans receivable as of March 31, 2016 and December 31, 2015:
The following tables summarize loans receivable by loan type and performance status as of March 31, 2016 and December 31, 2015:
As of March 31, 2016 and December 31, 2015, the Bank had $1.2 million and $1.2 million, respectively, of residential real estate held in other real estate owned. As of March 31, 2016 and December 31, 2015, the Bank had initiated foreclosure proceedings on $0.9 million and $0.6 million, respectively, on loans secured by residential real estate. Allowance for loan losses During second quarter 2015, the Bank refined its methodology for estimating the general allowance for loan losses. Previously, the general allowance for the portion of the loan portfolio originated after December 31, 2009 ("Post 2009 loan portfolio") was based generally on qualitative factors due to insufficient historical loss data on the portfolio. During second quarter 2015, the Bank began using objectively verifiable industry and peer loss data to estimate probable incurred losses as of the balance sheet date for the Post 2009 loan portfolio until sufficient internal loss history is available. The same methodology was also adopted for the portion of the loan portfolio originated on or before December 31, 2009 ("Legacy loan portfolio") that had no loss history over the past two years. The changes in the allowance for loan losses for the three months ended March 31, 2016 and 2015 and the loans and allowance for loan losses by loan class based on impairment evaluation method as of March 31, 2016 and December 31, 2015 are as follows. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans.
Certain manufactured housing loans were purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the purchase agreement for defaults of the underlying borrower and other specified items. At March 31, 2016 and December 31, 2015, funds available for reimbursement, if necessary, were $1.4 million and $1.2 million, respectively. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio. Loans Individually Evaluated for Impairment The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for loans that are individually evaluated for impairment as of March 31, 2016 and December 31, 2015 and the average recorded investment and interest income recognized for the three months ended March 31, 2016 and 2015. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below.
Troubled Debt Restructurings At March 31, 2016 and December 31, 2015, there were $14.0 million and $11.4 million, respectively, in loans reported as troubled debt restructurings (“TDRs”). TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if it satisfies a minimum six-month performance requirement; however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Modification of purchased-credit-impaired loans that are accounted for within loan pools in accordance with the accounting standards for purchased-credit-impaired loans do not result in the removal of these loans from the pool even if modifications would otherwise be considered a TDR. Accordingly, as each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, modifications of loans within such pools are not considered TDRs. The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the three months ended March 31, 2016 and 2015. There were no modifications that involved forgiveness of debt.
The following table provides, by loan type, the number of loans modified in troubled debt restructurings and the related recorded investment during the three months ended March 31, 2016 and 2015.
At March 31, 2016 and December 31, 2015, there were no commitments to lend additional funds to debtors whose terms have been modified in TDRs. As of March 31, 2016, thirty-six manufactured housing loans totaling $1.9 million, two commercial and industrial loans totaling $0.5 million, and one commercial real estate non-owner occupied loan totaling $0.2 million modified as TDRs within the past twelve months, defaulted on payments. As of March 31, 2015, six manufactured housing loans totaling $0.5 million were modified as TDRs within the last twelve months, defaulted on payments. Loans modified in troubled debt restructurings 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 allowance for loan losses. There were three specific allowances as a result of TDR modifications during the three months ended March 31, 2016, totaling $0.2 million for two commercial and industrial loans, and $0.1 million for one commercial real estate non-owner-occupied loan. There were zero specific allowances resulting from TDR modifications during the three months ended March 31, 2015. Purchased Credit Impaired Loans The changes in accretable yield related to purchased-credit-impaired loans for the three months ended March 31, 2016 and 2015 were as follows:
Allowance for Loan Losses and the FDIC Loss Sharing Receivable and Clawback Liability Losses incurred on covered loans are eligible for partial reimbursement by the FDIC. Subsequent to the purchase date, the expected cash flows on the covered loans are subject to evaluation. Decreases in the present value of expected cash flows on the covered loans are recognized by increasing the allowance for loan losses with a related charge to the provision for loan losses. At the same time, the FDIC indemnification asset is increased reflecting an estimated future collection from the FDIC, which is recorded as a reduction to the provision for loan losses. If the expected cash flows on the covered loans increase such that a previously recorded impairment can be reversed, the Bank records a reduction in the allowance for loan losses (with a related credit to the provision for loan losses) accompanied by a reduction in the FDIC receivable balance (with a related charge to the provision for loan losses). Increases in expected cash flows on covered loans and decreases in expected cash flows from the FDIC loss sharing receivable, when there are no previously recorded impairments, are considered together and recognized over the remaining life of the loans as interest income. Decreases in the valuations of other real estate owned covered by the loss sharing agreements are recorded net of the estimated FDIC receivable as an increase to other real estate owned expense (a component of non-interest expense). The FDIC loss sharing receivable balance will be reduced through a charge to the provision for loan losses, with no offsetting reduction to the allowance for loan losses, as the period to submit losses under the FDIC loss sharing arrangements approaches expiration and the estimated losses in the covered loans have not yet emerged or been realized in a final disposition event. The period to submit losses under the FDIC loss sharing arrangements for non-single family loans expired in third quarter 2015. The period to submit losses under the FDIC loss sharing arrangements for single family loans expires in third quarter 2017. The final maturity of the FDIC loss sharing arrangements occurs in third quarter 2020. As of March 31, 2016 and December 31, 2015, loans covered under loss sharing arrangements with the FDIC were $13.2 million and $13.8 million, respectively. As part of the FDIC loss sharing arrangements, Customers also assumed a liability to be paid within 45 days days subsequent to the maturity or termination of the loss sharing arrangements that is contingent upon actual losses incurred over the life of the arrangements relative to expected losses and the consideration paid upon acquisition of the failed institutions ("the Clawback Liability”). Due to cash received on the covered assets in excess of the original expectations of the FDIC, the Bank anticipates that it will be required to pay the FDIC at the end of its loss sharing arrangements. As of March 31, 2016, a clawback liability of $2.4 million has been recorded. To the extent actual losses on the covered assets are less than estimated losses, the clawback liability will increase. To the extent actual losses on the covered assets are more than the estimated losses, the clawback liability will decrease. As of March 31, 2016, the Bank expected to pay $0.1 million to the FDIC resulting from a recovery of previously reimbursed loss amounts, net of estimated losses and reimbursement of external costs, such as legal fees, real estate taxes and appraisal expenses, and estimated the clawback liability due to the FDIC in 2020 at $2.4 million. The net amount of $2.5 million is presented as the "Accrued interest payable and other liabilities" in the accompanying consolidated balance sheet. The following table presents changes in the allowance for loan losses and the FDIC loss sharing receivable, including the effect of the estimated clawback liability for the three months ended March 31, 2016 and 2015.
(a) Includes external costs, such as legal fees, real estate taxes, and appraisal expenses, which qualify for reimbursement under loss sharing arrangements. Credit Quality Indicators Multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, construction, and residential real estate 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. Manufactured housing and other consumer loans are evaluated based on the payment activity of the loan and individual loans are not assigned an internal risk rating unless delinquent. 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, construction and residential real estate classes, and for purposes of analyzing historical loss rates used in the determination of the allowance for loan losses for the respective portfolio class, 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/satisfactory 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. The risk rating grades are defined as follows: “1” – Pass/Excellent Loans rated 1 represent a credit extension of the highest quality. The borrower’s historic (at least five years) cash flows manifest extremely large and stable margins of coverage. Balance sheets are conservative, well capitalized, and liquid. After considering debt service for proposed and existing debt, projected cash flows continue to be strong and provide ample coverage. The borrower typically reflects broad geographic and product diversification and has access to alternative financial markets. “2” – Pass/Superior Loans rated 2 are those for which the borrower has a strong financial condition, balance sheet, operations, cash flow, debt capacity and coverage with ratios better than industry norms. The borrowers of these loans exhibit a limited leverage position, are virtually immune to local economies, and are in stable growing industries. The management team is well respected and the company has ready access to public markets. “3” – Pass/Strong Loans rated 3 are those loans for which the borrowers have above average financial condition and flexibility; more than satisfactory debt service coverage; balance sheet and operating ratios are consistent with or better than industry peers; have little industry risk; move in diversified markets; and are experienced and competent in their industry. These borrowers’ access to capital markets is limited mostly to private sources, often secured, but the borrower typically has access to a wide range of refinancing alternatives. “4” – Pass/Good Loans rated 4 have a sound primary and secondary source of repayment. The borrower may have access to alternative sources of financing, but sources are not as widely available as they are to a higher grade borrower. These loans carry a normal level of risk, with very low loss exposure. The borrower has the ability to perform according to the terms of the credit facility. The margins of cash flow coverage are satisfactory but vulnerable to more rapid deterioration than the higher quality loans. “5” – Satisfactory Loans rated 5 are extended to borrowers who are determined to be a reasonable credit risk and demonstrate the ability to repay the debt from normal business operations. Risk factors may include reliability of margins and cash flows, liquidity, dependence on a single product or industry, cyclical trends, depth of management, or limited access to alternative financing sources. The borrower’s historical financial information may indicate erratic performance, but current trends are positive and the quality of financial information is adequate, but is not as detailed and sophisticated as information found on higher grade loans. If adverse circumstances arise, the impact on the borrower may be significant. “6” – Satisfactory/Bankable with Care Loans rated 6 are those for which the borrower has higher than normal credit risk; however, cash flow and asset values are generally intact. These borrowers may exhibit declining financial characteristics, with increasing leverage and decreasing liquidity and may have limited resources and access to financial alternatives. Signs of weakness in these borrowers may include delinquent taxes, trade slowness and eroding profit margins. “7” – Special Mention Loans rated Special Mention are credit facilities that may have potential developing weaknesses and deserve extra attention from the account manager and other management personnel. In the event that potential weaknesses are not corrected or mitigated, deterioration in the ability of the borrower to repay the debt in the future may occur. This grade is not assigned to loans that bear certain peculiar risks normally associated with the type of financing involved, unless circumstances have caused the risk to increase to a level higher than would have been acceptable when the credit was originally approved. Loans where significant actual, not potential, weaknesses or problems are clearly evident are graded in the category below. “8” – Substandard Loans are classified Substandard when the loans are inadequately protected by the current sound worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the company will sustain some loss if the weaknesses are not corrected. “9” – Doubtful The Bank assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. “10” – Loss The Bank assigns a loss rating to loans considered uncollectible and of such little value that their continuance as an active asset is not warranted. Amounts classified as loss are immediately charged off. Risk ratings are not established for certain consumer loans, including 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 the loans receivable portfolio as of March 31, 2016 and December 31, 2015.
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Shareholders' Equity |
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Mar. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY On January 29, 2016, Customers Bancorp issued 1,000,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D (the "Series D Preferred Stock") at a price of $25.00 per share in a public offering. Dividends on the Series D Preferred Stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 6.50% from the original issue date to, but excluding, March 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.09% per annum. Customers received net proceeds after expenses of $24.1 million from the offering, after deducting offering costs. The net proceeds will be used for general corporate purposes, which may include working capital and the funding of organic growth at Customers Bank. On May 18, 2015, Customers Bancorp issued 2,300,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series C, (the "Series C Preferred Stock") par value $1.00 per share, with a liquidation preference of $25.00 per share. Customers Bancorp will pay dividends on the Series C Preferred Stock only when, as, and if declared by the board of directors or a duly authorized committee of the board and to the extent that it has lawfully available funds to pay dividends. Dividends on the Series C Preferred Stock will accrue and be payable quarterly in arrears, on the 15th day of March, June, September, and December of each year, commencing on September 15, 2015, at a fixed rate per annum equal to 7.00% from the original issue date to, but excluding, June 15, 2020, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.30% per annum. Dividends on the Series C and Series D Preferred Stock will not be cumulative. If Customers Bancorp's board of directors or a duly authorized committee of the board does not declare a dividend on the Series C and Series D Preferred Stock in respect of a dividend period, then no dividend shall be deemed to have accrued for such dividend period, be payable on the applicable dividend payment date, or be cumulative, and Customers Bancorp will have no obligation to pay any dividend for that dividend period, whether or not the board of directors or a duly authorized committee of the board declares a dividend on the Series C and Series D Preferred Stock for any future dividend period. The Series C and Series D Preferred Stock have no stated maturity, are not subject to any mandatory redemption, sinking fund or other similar provisions and will remain outstanding unless redeemed at Customers Bancorp's option. Customers Bancorp may redeem the Series C and Series D Preferred Stock at its option, at a redemption price equal to $25.00 per share, plus any declared and unpaid dividends (without regard to any undeclared dividends), (i) in whole or in part, from time to time, on any dividend payment date on or after June 15, 2020 for Series C Preferred Stock and May 15, 2021 for Series D Preferred Stock or (ii) in whole but not in part, within 90 days following the occurrence of a regulatory capital treatment event. Any redemption of the Series C and Series D Preferred Stock are subject to prior approval of the Board of Governors of the Federal Reserve System. The Series C and Series D Preferred Stock qualify as Tier 1 capital under regulatory capital guidelines. Except in limited circumstances, the Series C and Series D Preferred Stock do not have any voting rights. On March 15, 2016, Customers paid a quarterly cash dividend on its Series C Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock of $0.4375 per share to shareholders of record on February 29, 2016. On March 15, 2016, Customers also paid a quarterly cash dividend on its Series D Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock of $0.2076 per share to shareholders of record on February 29, 2016. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | SHARE-BASED COMPENSATION Stock Options The following table summarizes stock option activity for the three months ended March 31, 2016.
Cash received from the exercise of options during the three months ended March 31, 2016 was $0.3 million with a related tax benefit of $0.1 million. Restricted Stock Units There were 149,706 restricted stock units granted during the three months ended March 31, 2016. Of the aggregate restricted stock units granted, 86,654 were granted under the Bonus Recognition and Retention Program and are subject to five-year cliff vesting. The remaining units were granted under the Bancorp's Restated and Amended 2004 Incentive Equity and Deferred Compensation Plan and are subject to either a three-year waterfall vesting with one third of the amount vesting annually or a three-year cliff vesting. The following table summarizes restricted stock unit activity for the three months ended March 31, 2016.
Total share-based compensation expense for the three months ended March 31, 2016 and 2015 was $1.4 million and $1.2 million, respectively. Customers Bancorp has a policy that permits its directors to elect to receive shares of voting common stock in lieu of their cash retainers. During the three months ended March 31, 2016, Customers Bancorp issued 11,068 shares of voting common stock with a fair value of $0.3 million to directors as compensation for their services during the first three months of 2016. The fair values were determined based on the opening price of the common stock on the day the shares were issued. |
Regulatory Capital |
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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 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. Quantitative measures established by regulation to ensure capital adequacy require the Bank and Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity, total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets (as defined in the regulations). At March 31, 2016 and December 31, 2015, the Bank and Bancorp met all capital adequacy requirements to which they were subject. The Dodd-Frank Act required the FRB to establish minimum consolidated capital requirements for bank holding companies that are as stringent as those required for insured depositary subsidiaries. In 2013, the federal banking agencies approved rules that implemented the Dodd-Frank requirements and certain other regulatory capital reforms effective January 1, 2015, that (i) introduced a new capital ratio pursuant to the prompt corrective action provisions, the common equity tier 1 capital to risk rated assets ratio, (ii) increased the adequately capitalized and well capitalized thresholds for the Tier 1 risk based capital ratios to 6% and 8%, respectively, (iii) changed the treatment of certain capital components for determining Tier 1 and Tier 2 capital, and (iv) changed the risk weighting of certain assets and off balance sheet items in determining risk weighted assets. To be categorized as well capitalized, an institution must maintain minimum common equity Tier 1, Tier 1 risk based, total risk based and Tier 1 leveraged ratios as set forth in the following table:
The risk-based capital rules adopted effective January 1, 2015 require that banks and holding companies maintain a "capital conservation buffer" of 250 basis points in excess of the "minimum capital ratio." The minimum capital ratio is equal to the prompt corrective action adequately capitalized threshold ratio. The capital conservation buffer will be phased in over four years beginning on January 1, 2016, with a maximum buffer of 0.625% of risk weighted assets for 2016, 1.25% for 2017, 1.875% for 2018, and 2.5% for 2019 and thereafter. Effective January 1, 2016, the new minimum capital level requirements (including the capital conservation buffer) applicable to the Bancorp and the Bank were as follows: (i) a common equity Tier 1 capital ratio of 5.125%; (ii) a Tier 1 Risk based capital ratio of 6.625%; and (iii) a Total Risk based capital ratio of 8.625%. Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers. |
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. FASB Accounting Standards Codification ("ASC") Topic 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. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC Topic 820, Fair Value Measurements and Disclosures, 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 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, 2016 and December 31, 2015: Cash and cash equivalents: The carrying amounts reported on the balance sheet for cash and cash equivalents approximate those assets’ fair values. These assets are included as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Investment securities: The fair values of investment securities available for sale are determined by obtaining quoted market prices on nationally recognized and foreign securities exchanges (Level 1), 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 externally developed models that use unobservable inputs due to limited or no market activity of the instrument (Level 3). These assets are included as Level 1, 2, or 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The carrying amount of investments in FHLB, Federal Reserve Bank, and other restricted stock approximates fair value, and considers the limited marketability of such securities. These assets are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Residential mortgage loans: The Bank 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 included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale - Mortgage warehouse loans: The fair value of 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 mortgage loans and the finalization of the sale of the loans to an investor. Changes in fair value are not expected to be recognized since at inception of the transaction the underlying 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 19 days from purchase to sale. These assets are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans held for sale – Multi-family loans: The fair values of multi-family loans held for sale are estimated using pricing indications from letters of intent with third-party investors, recent sale transactions within the secondary markets for loans with similar characteristics, or non-binding indicative bids from brokers. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Loans receivable, net of allowance for loan losses: The fair values of loans held for investment are estimated using discounted cash flows, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Impaired loans: Impaired loans are those that are accounted for under ASC 450, Contingencies, in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Other real estate owned: The fair value of other real estate owned ("OREO") is determined by using appraisals, which may be discounted based on management’s review and changes in market conditions or sales agreements with third parties. All appraisals must be performed in accordance with the Uniform Standards of Professional Appraisal Practice. Appraisals are certified to the Bank and performed by appraisers on the Bank’s approved list of appraisers. Evaluations are completed by a person independent of management. The content of the appraisal depends on the complexity of the property. Appraisals are completed on a “retail value” and an “as is value”. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Deposit liabilities: The fair values disclosed for interest and non-interest checking, passbook savings and money market deposit accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). These liabilities are included as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. These liabilities are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. Federal funds purchased: For these short-term instruments, the carrying amount is considered a reasonable estimate of fair value. These liabilities are included as Level 1 fair values, based upon the lowest level of input that is significant to the fair value measurements. Borrowings: Borrowings consist of long-term and short-term FHLB advances, 5-year senior unsecured notes, and subordinated debt. For the short-term borrowings, the carrying amount is considered a reasonable estimate of fair value and is included as a Level 1 fair value measurement. Fair values of long-term FHLB advances are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. The prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. Fair values of privately placed subordinated and senior unsecured debt are estimated by a third-party financial adviser using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit-risk characteristics, terms and remaining maturity. These liabilities are included as Level 2 fair values, based upon the lowest level of input that is significant to the fair value measurements. The $63 million senior unsecured notes issued during third quarter 2013 are traded on The New York Stock Exchange, and their price can be obtained daily. This fair value measurement is classified as Level 1. Derivatives (Assets and Liabilities): The fair values of interest rate swaps and credit derivatives are determined using models that incorporate readily observable market data into a market standard methodology. This methodology nets the discounted future fixed cash receipts and the discounted expected variable cash payments. The discounted variable cash 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 the Bank and its counterparties. These assets and liabilities are included 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. The Bank 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 the Bank’s internal experience (i.e., pull-through rate). These assets and liabilities are included 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 included in Other assets and Other liabilities on the balance sheet. Off-balance-sheet financial instruments: The fair values of unused commitments to lend and standby letters of credit are considered to be the same as their contractual amounts. 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 Customer’s disclosures and those of other companies may not be meaningful. The estimated fair values of Customers' financial instruments at March 31, 2016 and December 31, 2015 were as follows:
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, 2016 and December 31, 2015 were as follows:
The changes in Level 3 assets measured at fair value on a recurring basis for the three months ended March 31, 2016 and 2015 are summarized as follows.
Customers' policy is to recognize transfers between fair value levels when events or circumstances warrant transfers. There were no transfers between levels during the three months ended March 31, 2016 and 2015. The following table summarizes financial assets and financial liabilities measured at fair value as of March 31, 2016 and December 31, 2015 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value.
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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 value 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. Customers also has interest-rate derivatives resulting from a service 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 effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. To date, such derivatives were used to hedge the variable cash flows associated with a forecasted issuance of debt. The ineffective portion of the change in fair value of the derivatives is to be recognized directly in earnings. During the three months ended March 31, 2016 and 2015, Customers did not record any hedge ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on Customers' variable-rate debt. Customers expects to reclassify $2.6 million from accumulated other comprehensive income to interest expense during the next 12 months. Customers is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 24 months (excluding forecasted transactions related to the payment of variable interest on existing financial instruments). At March 31, 2016 and December 31, 2015, Customers had one outstanding interest rate derivative with a notional amount of $150.0 million that was designated as a cash flow hedge of interest rate risk. The hedge expires in April 2019. Derivatives Not Designated as Hedging Instruments Customers executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies (typically the loan customers will swap a floating-rate loan for a fixed-rate loan). The customer interest rate swaps are simultaneously offset by interest rate swaps that Customers executes with a third party in order to minimize interest rate risk exposure resulting from such transactions. Because the interest rate swaps associated with this program do not meet the hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting third-party market swaps are recognized directly in earnings. At March 31, 2016, Customers had 62 interest rate swaps with an aggregate notional amount of $457.2 million related to this program. At December 31, 2015, Customers had 62 interest rate swaps with an aggregate notional amount of $461.0 million related to this program. Customers enters into residential mortgage loan commitments in connection with its 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, 2016 and December 31, 2015, Customers had an outstanding notional balance of residential mortgage loan commitments of $4.5 million and $2.8 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, 2016 and December 31, 2015, Customers had an outstanding notional balances of credit derivatives of $36.3 million and $19.3 million, respectively. Fair Value of Derivative Instruments on the Balance Sheet The following table presents the fair value of Customers' derivative financial instruments as well as their classification on the balance sheet as of March 31, 2016 and December 31, 2015.
Effect of Derivative Instruments on Comprehensive Income The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2016 and 2015.
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. 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, 2016, the fair value of derivatives in a net liability position (which includes accrued interest but excludes any adjustment for nonperformance-risk) related to these agreements was $23.3 million. In addition, Customers has minimum collateral posting thresholds with certain of these counterparties and at March 31, 2016 had posted $22.8 million of cash as collateral. Customers records cash posted as collateral 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 with institutional counterparties are subject to master netting arrangements and are included in the table below. Interest rate swaps with commercial banking customers and residential mortgage loan commitments are not subject to master netting arrangements and are excluded from the table below. Customers has not made a policy election to offset its derivative positions. Offsetting of Financial Assets and Derivative Assets At March 31, 2016
Offsetting of Financial Liabilities and Derivative Liabilities At March 31, 2016
Offsetting of Financial Assets and Derivative Assets At December 31, 2015
Offsetting of Financial Liabilities and Derivative Liabilities At December 31, 2015
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Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 28, 2016, Customers completed its public offering of 2,300,000 shares of Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E (the "Series E Preferred Stock") at a price of $25.00 per share. Dividends on the Series E Preferred Stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 6.45% from the original issue date to, but excluding, June 15, 2021, and thereafter at a floating rate per annum equal to three-month LIBOR on the related dividend determination date plus a spread of 5.14% per annum. Customers received net proceeds of $55.7 million from the offering. The proceeds will be used for general corporate purposes, which may include working capital and the funding of organic growth at Customers Bank. |
Significant Accounting Policies and Basis of Presentation (Policies) |
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Basis of Presentation | Basis of Presentation The interim unaudited consolidated financial statements of Customers Bancorp, Inc. and subsidiaries have been prepared 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, 2015 consolidated balance sheet presented in this report has been derived from Customers Bancorp’s audited 2015 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 2015 consolidated financial statements of Customers Bancorp and subsidiaries included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 26, 2016. That 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; Investment Securities; Loan Accounting Framework; Allowance for Loan Losses; Goodwill; Investments in FHLB, Federal Reserve Bank, and other restricted stock; Other Real Estate Owned; FDIC Loss Sharing Receivable and Clawback Liability; Bank-Owned Life Insurance; Bank Premises and Equipment; Treasury Stock; Income Taxes; Share-Based Compensation; Derivative Instruments and Hedging; Comprehensive Income; Earnings per Share and Segment Information. Certain prior period amounts have been reclassified to conform to current period presentation. Results for interim periods are not necessarily indicative of those that may be expected for the fiscal year. |
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Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09—Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The Board issued this ASU as part of its initiative to reduce complexity in accounting standards. The areas for simplification in this ASU involve several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. In addition, the amendments in this ASU eliminate the guidance in Topic 718 that was indefinitely deferred shortly after the issuance of FASB Statement No. 123 (revised 2004), Share-Based Payment. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-07—Investments—Equity Method and Joint Ventures. To simplify the accounting for equity method investments, the amendments in the ASU eliminate the requirement in Topic 323 that an entity retroactively adopt the equity method of accounting if an investment qualifies for use of the equity method as a result of an increase in the level of ownership or degree of influence. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The ASU is effective for all entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-06—Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments. Topic 815 requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met, including the “clearly and closely related” criterion. The amendments in this ASU clarify the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. Namely, this decision sequence requires that an entity consider whether:
The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-05—Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships. The term novation refers to replacing one counterparty to a derivative instrument with a new counterparty. That change occurs for a variety of reasons, including financial institution mergers, intercompany transactions, an entity exiting a particular derivatives business or relationship, an entity managing against internal credit limits, or in response to laws or regulatory requirements. The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-04—Liabilities—Extinguishments of Liabilities: Recognition of Breakage for Certain Prepaid Stored-Value Products. When an entity sells a prepaid stored-value product (such as gift cards, telecommunication cards, and traveler’s checks), it recognizes a financial liability for its obligation to provide the product holder with the ability to purchase goods or services at a third-party merchant. When a prepaid stored-value product goes unused wholly or partially for an indefinite time period, the amount that remains on the product is referred to as breakage. There currently is diversity in the methodology used to recognize breakage. Subtopic 405-20 includes derecognition guidance for both financial liabilities and nonfinancial liabilities, and Topic 606, Revenue from Contracts with Customers, includes authoritative breakage guidance but excludes financial liabilities. The amendments in this ASU provide a narrow scope exception to the guidance in Subtopic 405-20 to require that breakage be accounted for consistent with the breakage guidance in Topic 606. For public business entities, the amendments are effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases. From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessees. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Customers is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall. The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In November 2015, the FASB issued ASU 2015-17, Income Taxes. The amendments in this ASU, which will align the presentation of deferred income tax assets and liabilities with International Financial Reporting Standards (IFRS), require that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. The amendments in this ASU apply to all entities that present a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this ASU. For public business entities, the amendments in this ASU are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the guidance in this ASU eliminates the requirement to retrospectively account for those adjustments and requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The guidance in this ASU was effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and should be applied prospectively to adjustment to provisional amounts that occur after the effective date of this ASU. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In April 2015 and August 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively. The guidance in these ASUs is intended to simplify presentation of debt issuance costs, and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of the debt liability consistent with debt discounts and is applicable on a retrospective basis. The guidance in these ASUs was effective for interim and annual periods beginning after December 15, 2015. The adoption of these ASUs on January 1, 2016 resulted in a reclassification adjustment, which reduced "Other borrowings" by $1.8 million and "Subordinated debt" by $1.3 million with corresponding decrease in "Other assets" of $3.1 million as of December 31, 2015. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis. The guidance in this ASU is intended to amend the update, which changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The amendments in this ASU affect the following areas:
The guidance in this ASU was effective for annual and interim periods beginning after December 15, 2015. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In January 2015, the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The guidance in this ASU was issued as part of the FASB's initiative to reduce complexity in accounting standards and eliminates from GAAP the concept of extraordinary items. The guidance in this ASU was effective in the first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging : Determining Whether the Host contract in a Hybrid Financial Instrument in the Form of a Share is More Akin to Debt or to Equity. The guidance in this ASU requires entities that issue or invest in a hybrid financial instrument to separate an embedded derivative feature from a host contract and account for the feature as a derivative. In the case of derivatives embedded in a hybrid financial instrument that is issued in the form of a share, that criterion requires evaluating whether the nature of the host contract is more akin to debt or to equity and whether the economic characteristics and risks of the embedded derivative feature are clearly and closely related to the host contract. If the host contract is akin to equity, then equity-like features (for example, a conversion option) are considered clearly and closely related to the host contract and, thus, would not be separated from the host contract. If the host contract is akin to debt, then equity-like features are not considered clearly and closely related to the host contract. In the latter case, an entity may be required to separate the equity-like embedded derivative feature from the debt host contract if certain other criteria in Subtopic 815-15 are met. Similarly, debt-like embedded derivative features may require separate accounting from an equity-like host contract. The guidance in this ASU was effective in first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In August 2014, the FASB issued ASU 2014-13, Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity. The guidance in this ASU applies to a reporting entity that is required to consolidate a collateralized financing entity under the Variable Interest Entities guidance when: (1) the reporting entity measures all of the financial assets and the financial liabilities of that consolidated collateralized financing entity at fair value in the consolidated financial statements based on other Codification Topics; and (2) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. The guidance in this ASU was effective in first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation. The guidance in this ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period is treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite period, the remaining unrecognized cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. As indicated in the definition of vest, the stated vesting period (which includes the period in which the performance target could be achieved) may differ from the requisite service period. The guidance in this ASU was effective in first quarter 2016. The adoption of this ASU did not have an impact on Customers' financial condition or results of operations. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This ASU establishes a comprehensive revenue recognition standard for virtually all industries following U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate and construction industries. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) identify the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies the performance obligation. Three basic transition methods are available - full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the cumulative effect alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date. The guidance in this ASU is now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Customers does not expect this ASU to have a significant impact on its financial condition or results of operations. In February 2016, the FASB issued ASU No. 2016-08—Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). While the ASU does not change the core provisions of Topic 606, it clarifies the implementation guidance on principal versus agent considerations. Namely, the ASU clarifies and offers guidance to help determine when the reporting entity is providing goods or services to a customer itself (i.e. the entity is a principal), or merely arranging for that good or service to be provided by the other party (i.e. the reporting entity is an agent). If the entity is a principal, it recognizes revenue in the gross amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred to the customer. When the reporting entity is an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. The guidance includes indicators to assist in determining whether the Control criteria are met. If a contract with a customer includes more than one specified good or service, an entity could be a principal for some specified goods or services and an agent for others. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. In March 2016, the FASB issued ASU No. 2016-10—Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. This ASU clarifies guidance related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The ASU includes targeted improvements based on input the Board received from the Transition Resource Group for Revenue Recognition and other stakeholders. The ASU seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. The amendments in this Update affect the guidance in Accounting Standards Update 2014-09, Revenue from Contracts with Customers, which will be effective for fiscal years beginning after December 31, 2016 for public entities. The effective date and transition requirements for the amendments in this Update are the same as those in Update 2014-09. Customers does not expect the adoption of this ASU to have a significant impact on its financial condition or results of operations. |
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Impaired Financing Receivable | Impaired loans: Impaired loans are those that are accounted for under ASC 450, Contingencies, in which the Bank has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties that collateralize the loans, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. |
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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. FASB Accounting Standards Codification ("ASC") Topic 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. However, many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. For fair value disclosure purposes, Customers utilized certain fair value measurement criteria under the FASB ASC Topic 820, Fair Value Measurements and Disclosures, 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 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 value 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. Customers also has interest-rate derivatives resulting from a service 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. |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2016 and 2015.
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Earnings Per Share | The following are the components and results of Customers' earnings per common share calculation for the periods presented.
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Anti-dilutive Securities Excluded from Computation of Earnings Per Share | The following is a summary of 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 to do so would have been anti-dilutive for the periods presented.
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Investment Securities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2016 and December 31, 2015 are summarized in the tables below:
(2) Consists primarily of equity securities issued by a foreign entity.
(2) Consists primarily of equity securities issued by a foreign entity. |
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Statement of Proceeds from Sale of Available for Sale Investment Securities | The following table presents proceeds from the sale of available-for-sale investment securities and gross gains and gross losses realized on those sales for the three months ended March 31, 2016 and 2015:
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Summary of Available-for-Sale Debt Securities by Stated Maturity | The following table presents available-for-sale debt securities by stated maturity. Debt securities backed by mortgages 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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Gross Unrealized Losses and Fair Value, Aggregated by Investment Category | Gross unrealized losses and fair value of Customers' investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and December 31, 2015 were as follows:
(2) Consists primarily of equity securities in a foreign entity. |
Loans Held for Sale (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables Held-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Loans Held for Sale | The composition of loans held for sale as of March 31, 2016 and December 31, 2015 was as follows:
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Loans Receivable and Allowance for Loan Losses (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Receivable | The following table presents loans receivable as of March 31, 2016 and December 31, 2015:
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Non-Covered Loans and Covered Loans by Class and Performance Status | The following tables summarize loans receivable by loan type and performance status as of March 31, 2016 and December 31, 2015:
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Schedule of Allowance for Loan Losses | The changes in the allowance for loan losses for the three months ended March 31, 2016 and 2015 and the loans and allowance for loan losses by loan class based on impairment evaluation method as of March 31, 2016 and December 31, 2015 are as follows. The amounts presented for the provision for loan losses below do not include the effect of changes to estimated benefits resulting from the FDIC loss share arrangements for the covered loans.
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Summary of Recorded Investment Net Charge-Offs, Unpaid Principal Balance and Related Allowance for Impaired Loans | The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for loans that are individually evaluated for impairment as of March 31, 2016 and December 31, 2015 and the average recorded investment and interest income recognized for the three months ended March 31, 2016 and 2015. Purchased-credit-impaired loans are considered to be performing and are not included in the tables below.
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Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession | The following is an analysis of loans modified in a troubled debt restructuring by type of concession for the three months ended March 31, 2016 and 2015. There were no modifications that involved forgiveness of debt.
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Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment | The following table provides, by loan type, the number of loans modified in troubled debt restructurings and the related recorded investment during the three months ended March 31, 2016 and 2015.
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Changes in Accretable Yield Related to Purchased-credit-impaired Loans | The changes in accretable yield related to purchased-credit-impaired loans for the three months ended March 31, 2016 and 2015 were as follows:
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Schedule of Changes in Allowance for Loan Losses | The following table presents changes in the allowance for loan losses and the FDIC loss sharing receivable, including the effect of the estimated clawback liability for the three months ended March 31, 2016 and 2015.
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Schedule of FDIC Loss Sharing Receivable |
(a) Includes external costs, such as legal fees, real estate taxes, and appraisal expenses, which qualify for reimbursement under loss sharing arrangements |
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Credit Ratings of Covered and Non-Covered Loan Portfolio | The following tables present the credit ratings of the loans receivable portfolio as of March 31, 2016 and December 31, 2015.
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Share-Based Compensation (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | The following table summarizes stock option activity for the three months ended March 31, 2016.
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Summary of Restricted Stock Activity | The following table summarizes restricted stock unit activity for the three months ended March 31, 2016.
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Regulatory Capital (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Capital Amounts, Tier 1 Risk Based and Tier 1 Leveraged Ratios | To be categorized as well capitalized, an institution must maintain minimum common equity Tier 1, Tier 1 risk based, total risk based and Tier 1 leveraged 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, 2016 and December 31, 2015 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, 2016 and December 31, 2015 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 Level 3 assets measured at fair value on a recurring basis for the three months ended March 31, 2016 and 2015 are summarized as follows.
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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, 2016 and December 31, 2015 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value.
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Derivative Instruments and Hedging Activities (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Financial Instruments | The following table presents the fair value of Customers' derivative financial instruments as well as their classification on the balance sheet as of March 31, 2016 and December 31, 2015.
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Effect of Derivative Financial Instruments on Comprehensive Income | The following tables present the effect of Customers' derivative financial instruments on comprehensive income for the three months ended March 31, 2016 and 2015.
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Summary of Offsetting of Financial Assets and Derivative Assets | Offsetting of Financial Assets and Derivative Assets At December 31, 2015
Offsetting of Financial Assets and Derivative Assets At March 31, 2016
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Summary of Offsetting of Financial Liabilities and Derivative Liabilities | Offsetting of Financial Liabilities and Derivative Liabilities At December 31, 2015
Offsetting of Financial Liabilities and Derivative Liabilities At March 31, 2016
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Description of the Business - Additional Information (Detail) |
Mar. 31, 2016
Branch
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of branches | 14 |
Acquisition Activity - Additional Information (Detail) - Scenario, Forecast - Higher One, Inc's Disbursements Business $ in Millions |
24 Months Ended | ||
---|---|---|---|
Jul. 01, 2017
USD ($)
|
Jul. 01, 2016
USD ($)
employee
|
Jul. 01, 2018
USD ($)
|
|
Capital Unit [Line Items] | |||
Number of employees hired (employee) | employee | 225 | ||
Payments for acquisition | $ 10 | $ 17 | $ 42 |
Payments under transition services agreement | $ 5 |
Significant Accounting Policies and Basis of Presentation (Details) - Adjustments for New Accounting Pronouncement $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Other Borrowings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs | $ 1.8 |
Subordinated Debt | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs | 1.3 |
Other Assets | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs | $ (3.1) |
Earnings Per Share - Components of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 16,413 | $ 13,952 |
Weighted-average number of common shares outstanding - basic (shares) | 26,945,062 | 26,777,389 |
Share-based compensation plans (shares) | 1,530,409 | 1,276,340 |
Warrants (shares) | 307,630 | 284,074 |
Weighted-average number of common shares - diluted (shares) | 28,783,101 | 28,337,803 |
Basic earnings per common share (usd per share) | $ 0.61 | $ 0.52 |
Diluted earnings per common share (usd per share) | $ 0.57 | $ 0.49 |
Earnings Per Share - Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Anti-dilutive securities: | ||
Total anti-dilutive securities (shares) | 659,237 | 70,925 |
Share-based compensation awards | ||
Anti-dilutive securities: | ||
Total anti-dilutive securities (shares) | 606,995 | 18,683 |
Warrants | ||
Anti-dilutive securities: | ||
Total anti-dilutive securities (shares) | 52,242 | 52,242 |
Investment Securities - Statement of Proceeds from Sale of Available for Sale Investment Securities (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sale of available-for-sale securities | $ 2,848 | $ 0 |
Gross gains | 26 | 0 |
Gross losses | 0 | 0 |
Net gains | $ 26 | $ 0 |
Investment Securities - Additional Information (Detail) $ in Millions |
Mar. 31, 2016
USD ($)
Security
|
Dec. 31, 2015
USD ($)
|
---|---|---|
Investments, Debt and Equity Securities [Abstract] | ||
Number of available-for-sale investment securities in the less than twelve month category (security) | 8 | |
Number of available-for-sale investment securities in the twelve month or more category (security) | 13 | |
Pledged investment securities fair value | $ | $ 286.3 | $ 299.8 |
Loans Held for Sale - Composition of Loans Held for Sale (Detail) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2015 |
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Receivables Held-for-sale [Abstract] | |||
Mortgage warehouse loans at fair value | $ 1,940,558 | $ 1,754,950 | |
Multi-family loans at lower of cost or fair value | 27,678 | 39,257 | |
Commercial loans held for sale | 1,968,236 | 1,794,207 | |
Residential mortgage loans at fair value | 1,044 | 2,857 | |
Loans held for sale | $ 1,969,280 | $ 1,797,064 | |
Transfer of loans held for sale to held for investment | $ 30,400 |
Loans Receivable and Allowance for Loan Losses - Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession (Detail) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016
USD ($)
Loan
|
Mar. 31, 2015
USD ($)
Loan
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified in troubled debt restructurings | Loan | 26 | 3 |
Recorded investment | $ | $ 2,859 | $ 405 |
Extended under forbearance | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified in troubled debt restructurings | Loan | 3 | 0 |
Recorded investment | $ | $ 1,995 | $ 0 |
Interest-rate reductions | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified in troubled debt restructurings | Loan | 23 | 3 |
Recorded investment | $ | $ 864 | $ 405 |
Loans Receivable and Allowance for Loan Losses - Changes in Accretable Yield Related to Purchased-credit-impaired Loans (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Changes in Accretable Yield | ||
Accretable yield balance, beginning of period | $ 12,947 | $ 17,606 |
Accretion to interest income | (470) | (660) |
Reclassification from nonaccretable difference and disposals, net | 145 | (1,522) |
Accretable yield balance, end of period | $ 12,622 | $ 15,424 |
Loans Receivable and Allowance for Loan Losses - Schedule of Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | $ 35,647 | $ 30,932 |
Provision for loan losses | 1,503 | 3,635 |
Charge-offs | (42) | (1,144) |
Recoveries | 497 | 143 |
Ending balance | $ 37,605 | $ 33,566 |
Loans Receivable and Allowance for Loan Losses - Schedule of FDIC Loss Sharing Receivable (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
FDIC Indemnification Asset [Roll Forward] | ||
Ending balance, prior year | $ (2,083) | $ 2,320 |
Increased (decreased) estimated cash flows | (477) | 671 |
Other activity, net | (304) | 134 |
Cash payments to the FDIC | 320 | 302 |
Ending balance | (2,544) | 3,427 |
Provision for loan losses | 1,503 | 3,635 |
Effect attributable to FDIC loss share arrangements | 477 | (671) |
Provision for loan losses | $ 1,980 | $ 2,964 |
Share-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cash received from exercise of stock options | $ 0.3 | |
Tax benefit from exercise of stock options | 0.1 | |
Share-based compensation expense | $ 1.4 | $ 1.2 |
Common Stock | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Deferred compensation shares issued (shares) | 11,068 | |
Noninterest expense directors fees | $ 0.3 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted (shares) | 149,706 | |
Vesting period (years) | 3 years | |
Vesting amount per year | 33.33% | |
Restricted Stock Units | Bonus Recognition and Retention Program | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units granted (shares) | 86,654 | |
Vesting period (years) | 5 years |
Disclosures About Fair Value of Financial Instruments - Narrative (Detail) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Loans held for sale, average life from purchase to sale (days) | 19 days |
Five-year Senior Unsecured Notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Issuance of senior unsecured notes | $ 63 |
Unsecured Debt | Five-year Senior Unsecured Notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Senior unsecured notes term (years) | 5 years |
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) - Residential Mortgage Loan Commitments - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning | $ 45 | $ 43 |
Issuances | 73 | 87 |
Settlements | (45) | (43) |
Balance at ending | $ 73 | $ 87 |
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Assets and Derivative Assets (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Offsetting Assets [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet | $ 15,324 | $ 9,295 |
Interest Rate Swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Assets | 0 | 0 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet | 0 | 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 | $ 0 | $ 0 |
Derivative Instruments and Hedging Activities - Summary of Offsetting of Financial Liabilities and Derivative Liabilities (Detail) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Offsetting Assets [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | $ 22,957 | $ 13,932 |
Interest Rate Swaps | ||
Offsetting Assets [Line Items] | ||
Gross Amount of Recognized Liabilities | 22,923 | 13,932 |
Gross Amounts Offset in the Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet | 22,923 | 13,932 |
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 | 22,832 | 13,932 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 91 | $ 0 |
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Apr. 28, 2016 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Subsequent Event [Line Items] | ||||
Preferred stock, shares authorized (shares) | 100,000,000 | 100,000,000 | ||
Net proceeds from issuance of preferred stock | $ 24,108 | $ 0 | ||
Subsequent Event | Series E Preferred Stock | ||||
Subsequent Event [Line Items] | ||||
Preferred stock, shares authorized (shares) | 2,300,000 | |||
Preferred stock share price (usd per share) | $ 25.00 | |||
Preferred stock, fixed dividend rate, percent | 6.45% | |||
Net proceeds from issuance of preferred stock | $ 55,700 | |||
Subsequent Event | Series E Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||
Subsequent Event [Line Items] | ||||
Preferred stock, variable dividend rate, percent | 5.14% |
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