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Borrowings

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Borrowings

BORROWINGS

Short-term debt

Short-term debt at September 30, 2020 and December 31, 2019 was as follows:

			September 30, 2020												December 31, 2019
(dollars in thousands)			Amount						Rate						Amount						Rate
			FHLB advances			$	850,000					1.24		%				$	500,000					2.15		%
Federal funds purchased			680,000						0.14		%				538,000						1.60		%
Total short-term debt			$	1,530,000											$	1,038,000

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

			September 30, 2020						December 31, 2019
(dollars in thousands)
FHLB advances
Maximum outstanding at any month end			$	910,000					$	1,190,150
Average balance during the period			796,286						793,304
Weighted-average interest rate during the period			2.17		%				2.66		%
Federal funds purchased
Maximum outstanding at any month end			842,000						600,000
Average balance during the period			279,299						271,400
Weighted-average interest rate during the period			0.20		%				2.28		%

At September 30, 2020 and December 31, 2019, Customers Bank had aggregate availability under federal funds lines totaling $0.5 billion and $0.6 billion, respectively.

Long-term debt

FHLB and FRB advances

Long-term FHLB and FRB advances at September 30, 2020 and December 31, 2019 were as follows:

			September 30, 2020												December 31, 2019
(dollars in thousands)			Amount						Rate						Amount						Rate
			FHLB advances			$	—					—		%				$	350,000					2.36		%
FRB PPP Liquidity Facility advances			4,811,009						0.35		%				—						—		%
Total long-term FHLB and FRB advances			$	4,811,009											$	350,000

Beginning in second quarter 2020, Customers began participating in the PPPLF, in which Federal Reserve Banks extend non-recourse loans to institutions that are eligible to make PPP loans. Only PPP loans that are guaranteed by the SBA under the PPP, with respect to both principal and interest that are originated by an eligible institution, may be pledged as collateral to the Federal Reserve Banks.

The maximum borrowing capacity with the FHLB and FRB at September 30, 2020 and December 31, 2019 was as follows:

(amounts in thousands)			September 30, 2020						December 31, 2019
Total maximum borrowing capacity with the FHLB			$	2,851,496					$	3,445,416
Total maximum borrowing capacity with the FRB (1)			214,766						136,842
Qualifying loans serving as collateral against FHLB and FRB advances (1)			4,092,732						4,496,983

(1) Amounts reported in the above table exclude borrowings under the PPPLF, which are limited to the face value of the loans originated under the PPP. At September 30, 2020, Customers had $4.8 billion of borrowings under the PPPLF, with a borrowing capacity of up to $5.0 billion, which is the face value of the qualifying loans Customers has originated under the PPP.

Senior and Subordinated Debt

Long-term senior notes and subordinated debt at September 30, 2020 and December 31, 2019 were as follows:

												September 30, 2020						December 31, 2019
(dollars in thousands)
Issued by						Ranking						Amount						Amount						Rate						Issued Amount						Date Issued						Maturity						Price
Customers Bancorp						Senior						$	24,522					$	24,432					4.500		%				$	25,000					September 2019						September 2024						100.000		%
Customers Bancorp						Senior						99,413						99,198						3.950		%				100,000						June 2017						June 2022						99.775		%
Total other borrowings												123,935						123,630
Customers Bancorp						Subordinated (1)(2)						72,176						72,040						5.375		%				74,750						December 2019						December 2034						100.000		%
Customers Bank						Subordinated (1)(3)						109,148						109,075						6.125		%				110,000						June 2014						June 2029						100.000		%
Total subordinated debt												$	181,324					$	181,115

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

(2)Customers Bancorp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2029.

(3)The subordinated notes will bear an annual fixed rate of 6.125% until June 26, 2024. From June 26, 2024 until maturity, the notes will bear an annual interest rate equal to the three-month LIBOR plus 344.3 basis points. Customers Bank has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after June 26, 2024.

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No definition available.

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- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

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