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Business Segments | 9 Months Ended
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Sep. 30, 2019
Segment Reporting [Abstract] |
Business Segments | BUSINESS SEGMENTS Customers' segment financial reporting reflects the manner in which its chief operating decision makers allocate resources and assess performance. Management has determined that Customers' operations consist of two reportable segments - Customers Bank Business Banking and BankMobile. Each segment generates revenues, manages risk, and offers distinct products and services to targeted customers through different delivery channels. The strategy, marketing, and analysis of these segments vary considerably. The Customers Bank Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island, New Hampshire, and Illinois through a single-point-of-contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. Lending and deposit gathering activities are focused primarily on privately held businesses, high-net-worth families, selected commercial real estate lending, commercial mortgage companies, and equipment finance. Revenues are generated primarily through net interest income (the difference between interest earned on loans and leases, investments, and other interest earning assets and interest paid on deposits and other borrowed funds) and other non-interest income, such as mortgage warehouse transactional fees and BOLI. The BankMobile segment provides state-of-the-art high-tech digital banking and disbursement services to consumers, students, and the "under banked" nationwide, along with "Banking as a Service" offerings with white label partners. BankMobile is a full-service fintech banking platform that is accessible to customers anywhere and anytime through the customer's smartphone or other web-enabled device. Revenues are currently being generated primarily through interest income on other consumer loans, interchange and card revenue, deposit and wire transfer fees and university fees. The majority of expenses for BankMobile are related to the segment's operation of the ongoing business acquired through the Disbursement business acquisition and costs associated with the development of white label products for its partner. The following tables present the operating results for Customers' reportable business segments for the three and nine months ended September 30, 2019 and 2018. The segment financial results include directly attributable revenues and expenses. Consistent with the presentation of segment results to Customers' chief operating decision makers, overhead costs and preferred stock dividends are assigned to the Customers Bank Business Banking segment. The tax benefit assigned to BankMobile was based on an estimated effective tax rate of 23.15% for 2019 and 24.57% for 2018, respectively.
| Three Months Ended September 30, 2019 |  |  |  |
(amounts in thousands) | Customers Bank Business Banking |  | BankMobile |  | Consolidated
Interest income (1) | $ | 113,995 |  |  | $ | 12,723 |  |  | $ | 126,718 |
Interest expense | 50,734 |  |  | 249 |  |  |  | 50,983 |
Net interest income | 63,261 |  |  | 12,474 |  |  | 75,735 |
Provision for loan and lease losses | 2,475 |  |  | 1,951 |  |  | 4,426 |
Non-interest income | 11,757 |  |  | 11,612 |  |  | 23,369 |
Non-interest expense | 38,347 |  |  | 21,245 |  |  |  | 59,592 |
Income (loss) before income tax expense (benefit) | 34,196 |  |  | 890 |  |  | 35,086 |
Income tax expense (benefit) | 7,814 |  |  | 206 |  |  | 8,020 |
Net income (loss) | 26,382 |  |  | 684 |  |  | 27,066 |
Preferred stock dividends | 3,615 |  |  | — |  |  | 3,615 |
Net income (loss) available to common shareholders | $ | 22,767 |  |  | $ | 684 |  |  | $ | 23,451 |
| Three Months Ended September 30, 2018 |  |  |  |
(amounts in thousands) | Customers Bank Business Banking |  | BankMobile |  | Consolidated
Interest income (1) | $ | 106,156 |  |  | $ | 3,889 |  |  | $ | 110,045 |
Interest expense | 45,982 |  |  | 62 |  |  | 46,044 |
Net interest income | 60,174 |  |  | 3,827 |  |  | 64,001 |
Provision for loan and lease losses | 2,502 |  |  | 422 |  |  | 2,924 |
Non-interest income | (7,756) |  |  | 9,840 |  |  | 2,084 |
Non-interest expense | 36,115 |  |  | 20,989 |  |  | 57,104 |
Income (loss) before income tax expense (benefit) | 13,801 |  |  | (7,744) |  |  | 6,057 |
Income tax expense (benefit) | 1,930 |  |  | (1,902) |  |  | 28 |
Net income (loss) | 11,871 |  |  | (5,842) |  |  | 6,029 |
Preferred stock dividends | 3,615 |  |  | — |  |  | 3,615 |
Net income (loss) available to common shareholders | $ | 8,256 |  |  | $ | (5,842) |  |  | $ | 2,414 |
(1) Amounts reported include funds transfer pricing of $0.3 million and $3.9 million for the three months ended September 30, 2019 and 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no cost deposits.
| Nine Months Ended September 30, 2019 |  |  |  |
(amounts in thousands) | Customers Bank Business Banking |  | BankMobile |  | Consolidated
Interest income (1) | $ | 309,882 |  |  | $ | 29,863 |  |  | $ | 339,745 |
Interest expense | 139,402 |  |  | 625 |  |  | 140,027 |
Net interest income | 170,480 |  |  | 29,238 |  |  | 199,718 |
Provision for loan and lease losses | 3,245 |  |  | 11,294 |  |  | 14,539 |
Non-interest income | 20,304 |  |  | 34,821 |  |  | 55,125 |
Non-interest expense | 111,840 |  |  | 61,320 |  |  | 173,160 |
Income (loss) before income tax expense (benefit) | 75,699 |  |  | (8,555) |  |  | 67,144 |
Income tax expense (benefit) | 17,324 |  |  | (1,981) |  |  | 15,343 |
Net income (loss) | 58,375 |  |  | (6,574) |  |  | 51,801 |
Preferred stock dividends | 10,844 |  |  | — |  |  | 10,844 |
Net income (loss) available to common shareholders | $ | 47,531 |  |  | $ | (6,574) |  |  | $ | 40,957 |
As of September 30, 2019 |  |  |  |  |
Goodwill and other intangibles | $ | 3,629 |  |  | $ | 11,892 |  |  | $ | 15,521 |
Total assets (2) | $ | 11,131,914 |  |  | $ | 591,876 |  |  | $ | 11,723,790 |
Total deposits | $ | 8,260,080 |  |  | $ | 665,605 |  |  | $ | 8,925,685 |
Total non-deposit liabilities (2) | $ | 1,747,846 |  |  | $ | 31,109 |  |  | $ | 1,778,955 |
| Nine Months Ended September 30, 2018 |  |  |  |
(amounts in thousands) | Customers Bank Business Banking |  | BankMobile |  | Consolidated
Interest income (1) | $ | 302,820 |  |  | $ | 11,829 |  |  | $ | 314,649 |
Interest expense | 118,081 |  |  | 214 |  |  | 118,295 |
Net interest income | 184,739 |  |  | 11,615 |  |  | 196,354 |
Provision for loan and lease losses | 3,128 |  |  | 1,129 |  |  | 4,257 |
Non-interest income | 8,147 |  |  | 30,973 |  |  | 39,120 |
Non-interest expense | 108,168 |  |  | 54,966 |  |  | 163,134 |
Income (loss) before income tax expense (benefit) | 81,590 |  |  | (13,507) |  |  | 68,083 |
Income tax expense (benefit) | 17,567 |  |  | (3,317) |  |  | 14,250 |
Net income (loss) | 64,023 |  |  | (10,190) |  |  | 53,833 |
Preferred stock dividends | 10,844 |  |  | — |  |  | 10,844 |
Net income (loss) available to common shareholders | $ | 53,179 |  |  | $ | (10,190) |  |  | $ | 42,989 |
As of September 30, 2018 |  |  |  |  |
Goodwill and other intangibles | $ | 3,629 |  |  | $ | 13,196 |  |  | $ | 16,825 |
Total assets (2) | $ | 10,542,175 |  |  | $ | 74,929 |  |  | $ | 10,617,104 |
Total deposits | $ | 7,781,225 |  |  | $ | 732,489 |  |  | $ | 8,513,714 |
Total non-deposit liabilities (2) | $ | 1,134,251 |  |  | $ | 14,327 |  |  | $ | 1,148,578 |
(1) Amounts reported include funds transfer pricing of $8.1 million and $11.8 million, for the nine months ended September 30, 2019 and 2018, respectively, credited to BankMobile for the value provided to the Customers Bank Business Banking segment for the use of excess low/no cost deposits. (2) Amounts reported exclude inter-segment receivables/payables.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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