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Regulatory Matters
 12 Months Ended
Dec. 31, 2018
Banking and Thrift [Abstract]  
Regulatory Matters
REGULATORY MATTERS
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 the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, and total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At December 31, 2018 and 2017, the Bank and the Bancorp satisfied all capital requirements to which they were subject.
Generally, to comply with the regulatory definition of adequately capitalized, or well capitalized, respectively, or to comply with the Basel III capital requirements, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios set forth in the following table:
 
 
 
 
 
Minimum Capital Levels to be Classified as:
 
Actual
 
Adequately Capitalized
 
Well Capitalized
 
Basel III Compliant
(amounts in thousands)
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
 
Amount
 
Ratio
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
745,795

 
8.964
%
 
$
374,388

 
4.500
%
 
N/A

 
N/A

 
$
530,384

 
6.375
%
Customers Bank
$
1,066,121

 
12.822
%
 
$
374,160

 
4.500
%
 
$
540,453

 
6.500
%
 
$
530,059

 
6.375
%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
963,266

 
11.578
%
 
$
499,185

 
6.000
%
 
N/A

 
N/A

 
$
655,180

 
7.875
%
Customers Bank
$
1,066,121

 
12.822
%
 
$
498,879

 
6.000
%
 
$
665,173

 
8.000
%
 
$
654,779

 
7.875
%
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
1,081,962

 
13.005
%
 
$
665,580

 
8.000
%
 
N/A

 
N/A

 
$
821,575

 
9.875
%
Customers Bank
$
1,215,522

 
14.619
%
 
$
665,173

 
8.000
%
 
$
831,466

 
10.000
%
 
$
821,072

 
9.875
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
963,266

 
9.665
%
 
$
398,668

 
4.000
%
 
N/A

 
N/A

 
$
398,668

 
4.000
%
Customers Bank
$
1,066,121

 
10.699
%
 
$
398,570

 
4.000
%
 
$
498,212

 
5.000
%
 
$
398,570

 
4.000
%
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common equity Tier 1 (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
689,494

 
8.805
%
 
$
352,368

 
4.500
%
 
N/A

 
N/A

 
$
450,248

 
5.750
%
Customers Bank
$
1,023,564

 
13.081
%
 
$
352,122

 
4.500
%
 
$
508,621

 
6.500
%
 
$
449,934

 
5.750
%
Tier 1 capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
906,963

 
11.583
%
 
$
469,824

 
6.000
%
 
N/A

 
N/A

 
$
567,704

 
7.250
%
Customers Bank
$
1,023,564

 
13.081
%
 
$
469,496

 
6.000
%
 
$
625,994

 
8.000
%
 
$
567,307

 
7.250
%
Total capital (to risk-weighted assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
1,021,601

 
13.047
%
 
$
626,432

 
8.000
%
 
N/A

 
N/A

 
$
724,313

 
9.250
%
Customers Bank
$
1,170,666

 
14.961
%
 
$
625,994

 
8.000
%
 
$
782,493

 
10.000
%
 
$
723,806

 
9.250
%
Tier 1 capital (to average assets)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Customers Bancorp, Inc.
$
906,963

 
8.937
%
 
$
405,949

 
4.000
%
 
N/A

 
N/A

 
$
405,949

 
4.000
%
Customers Bank
$
1,023,564

 
10.092
%
 
$
405,701

 
4.000
%
 
$
507,126

 
5.000
%
 
$
405,701

 
4.000
%

The Basel III 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" or certain elective distributions would be limited. 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, 2018, 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 risk-based capital ratio of 6.375%;
(ii) a Tier 1 risk-based capital ratio of 7.875% and
(iii) a Total risk-based capital ratio of 9.875%.
Failure to maintain the required capital conservation buffer will result in limitations on elective distributions, including capital distributions and discretionary bonuses to executive officers.