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Business Segments
 9 Months Ended
Sep. 30, 2020
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, Washington, D.C., 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 consumer installment 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 partners.
The following tables present the operating results for Customers' reportable business segments for the three and nine months ended September 30, 2020 and 2019. 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 20.61% for 2020 and 23.15% for 2019, respectively.
Three Months Ended September 30, 2020Three Months Ended September 30, 2019
(amounts in thousands)Customers Bank Business BankingBankMobileConsolidatedCustomers Bank Business BankingBankMobileConsolidated
Interest income (1)
$126,648 $13,002 

$139,650 $113,995 $12,723 $126,718 
Interest expense31,718 493 32,211 50,734 249 50,983 
Net interest income94,930 12,509 107,439 63,261 12,474 75,735 
Provision for credit losses on loans and leases8,699 4,256 12,955 2,475 1,951 4,426 
Non-interest income 21,603 12,190 33,793 11,757 11,612 23,369 
Non-interest expense48,926 16,635 65,561 38,347 21,245 59,592 
Income (loss) before income tax expense (benefit)58,908 3,808 62,716 34,196 890 35,086 
Income tax expense (benefit)11,374 827 12,201 7,814 206 8,020 
Net income (loss)47,534 2,981 50,515 26,382 684 27,066 
Preferred stock dividends3,430 — 3,430 3,615 — 3,615 
Net income (loss) available to common shareholders$44,104 $2,981 $47,085 $22,767 $684 $23,451 
(1) Amounts reported include funds transfer pricing of $2.2 million and $0.3 million, for the three months ended September 30, 2020 and 2019, 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, 2020Nine Months Ended September 30, 2019
(amounts in thousands)Customers Bank Business BankingBankMobileConsolidatedCustomers Bank Business BankingBankMobileConsolidated
Interest income (1)
$351,819 $38,393 $390,212 $309,882 $29,863 $339,745 
Interest expense 108,251 1,219 109,470 139,402 625 140,027 
Net interest income243,568 37,174 280,742 170,480 29,238 199,718 
Provision for credit losses on loans and leases55,620 10,068 65,688 3,245 11,294 14,539 
Non-interest income 44,422 33,537 77,959 20,304 34,821 55,125 
Non-interest expense137,055 58,470 195,525 111,840 61,320 173,160 
Income (loss) before income tax expense (benefit)95,315 2,173 97,488 75,699 (8,555)67,144 
Income tax expense (benefit)20,708 448 21,156 17,324 (1,981)15,343 
Net income (loss) 74,607 1,725 76,332 58,375 (6,574)51,801 
Preferred stock dividends10,626 — 10,626 10,844 — 10,844 
Net income (loss) available to common shareholders$63,981 $1,725 $65,706 $47,531 $(6,574)$40,957 
As of September 30, 2020 and 2019
Goodwill and other intangibles$3,629 $10,808 $14,437 $3,629 $11,892 $15,521 
Total assets (2)
$18,203,784 $574,943 $18,778,727 $11,131,914 $591,876 $11,723,790 
Total deposits$9,895,328 $943,749 $10,839,077 $8,260,080 $665,605 $8,925,685 
Total non-deposit liabilities (2)
$6,853,184 $34,975 $6,888,159 $1,747,846 $31,109 $1,778,955 
(1) Amounts reported include funds transfer pricing of $5.3 million and $8.1 million, for the nine months ended September 30, 2020 and 2019, 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.