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Regulatory Capital
 6 Months Ended
Jun. 30, 2017
Banking and Thrift [Abstract]  
Regulatory Capital
REGULATORY CAPITAL
The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on Customers' financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies.
Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At June 30, 2017 and December 31, 2016, the Bank and the Bancorp satisfied all capital requirements to which they were subject.
The Dodd-Frank Act required the Federal Reserve Bank 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 weighted 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.
Generally, to be considered adequately capitalized, or well capitalized, respectively, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk based ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table:
 
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 June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital (to risk weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
671,824

 
8.282
%
 
$
466,453

 
5.750
%
 
N/A

 
N/A

Customers Bank
$
995,670

 
12.302
%
 
$
465,368

 
5.750
%
 
$
526,068

 
6.500
%
Tier 1 capital (to risk weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
889,295

 
10.962
%
 
$
588,136

 
7.250
%
 
N/A

 
N/A

Customers Bank
$
995,670

 
12.302
%
 
$
586,768

 
7.250
%
 
$
647,468

 
8.000
%
Total capital (to risk weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
1,008,760

 
12.435
%
 
$
750,380

 
9.250
%
 
N/A

 
N/A

Customers Bank
$
1,143,056

 
14.123
%
 
$
748,635

 
9.250
%
 
$
809,335

 
10.000
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
889,295

 
8.680
%
 
$
409,836

 
4.000
%
 
N/A

 
N/A

Customers Bank
$
995,670

 
9.737
%
 
$
409,025

 
4.000
%
 
$
511,281

 
5.000
%
As of December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 capital (to risk weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
628,139

 
8.487
%
 
$
379,306

 
5.125
%
 
N/A

 
N/A

Customers Bank
$
857,421

 
11.626
%
 
$
377,973

 
5.125
%
 
$
479,380

 
6.500
%
Tier 1 capital (to risk weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
844,755

 
11.414
%
 
$
490,322

 
6.625
%
 
N/A

 
N/A

Customers Bank
$
857,421

 
11.626
%
 
$
488,599

 
6.625
%
 
$
590,006

 
8.000
%
Total capital (to risk weighted assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
966,097

 
13.053
%
 
$
638,343

 
8.625
%
 
N/A

 
N/A

Customers Bank
$
1,003,609

 
13.608
%
 
$
636,101

 
8.625
%
 
$
737,508

 
10.000
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
844,755

 
9.067
%
 
$
372,652

 
4.000
%
 
N/A

 
N/A

Customers Bank
$
857,421

 
9.233
%
 
$
371,466

 
4.000
%
 
$
464,333

 
5.000
%


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 is being 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, 2017, the capital level required to avoid limitation on elective distributions applicable to the Bancorp and the Bank were as follows:
(i) a common equity Tier 1 capital ratio of 5.750%;
(ii) a Tier 1 Risk based capital ratio of 7.250%; and
(iii) a Total Risk based capital ratio of 9.250%.
    
Failure to maintain the required capital conservation buffer will result in limitations on capital distributions and on discretionary bonuses to executive officers.