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Discontinued Operations | 6 Months Ended
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Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | DISCONTINUED OPERATIONS On January 4, 2021, Customers Bancorp completed the previously announced divestiture of BMT, the technology arm of its BankMobile segment, to MFAC Merger Sub Inc., an indirect wholly-owned subsidiary of MFAC, pursuant to an Agreement and Plan of Merger, dated August 6, 2020, by and among MFAC, MFAC Merger Sub Inc., BMT, Customers Bank, the sole stockholder of BMT, and Customers Bancorp, the parent bank holding company for Customers Bank (as amended on November 2, 2020 and December 8, 2020). Following the completion of the divestiture of BMT, BankMobile's serviced deposits and loans and the related net interest income have been combined with Customers' financial condition and the results of operations as a single reportable segment. Customers received cash consideration of $23.1 million upon closing of the divestiture and $3.7 million of additional cash consideration in May 2021. Upon closing of the divestiture, the holders of Customers Bancorp's common stock who held their shares as of the close of business on December 18, 2020 became entitled to receive an aggregate of 4,876,387 shares of BM Technologies' common stock. Customers distributed 0.15389 shares of BM Technologies common stock for each share of Customers Bancorp's common stock held as of the close of business on December 18, 2020 as special dividends. Certain team members of BMT also received 1,348,748 restricted shares of BM Technologies' common stock in the form of severance payments. The total stock consideration from the divestiture that were distributed to holders of Customers Bancorp's common stock and certain BMT team members represented 52% of the outstanding common stock of BM Technologies at the closing date of the divestiture. The sale of BMT was accounted for as a sale of non-controlling interest and the merger between BMT and MFAC was accounted for as a reverse recapitalization as BMT was considered to be the accounting acquirer. Upon closing of the transaction, Customers had no remaining investment in BM Technologies. BMT's historical financial results for periods prior to the divestiture are reflected in Customers Bancorp’s consolidated financial statements as discontinued operations. The assets and liabilities of BMT have been presented as "Assets of discontinued operations" and "Liabilities of discontinued operations" on the consolidated balance sheet at December 31, 2020. BMT's operating results and associated cash flows have been presented as "Discontinued operations" within the accompanying consolidated financial statements and prior period amounts have been reclassified to conform with the current period presentation. The following summarized financial information related to BMT has been segregated from continuing operations and reported as discontinued operations for the periods presented.
|  | Three Months Ended June 30, |  | Six Months Ended June 30, |  |
(amounts in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020 |  |  |  |
Discontinued operations: |  |  |  |  |  |  |  |  |  |  |  |
Non-interest income |  | $ | — |  |  | $ | 16,254 |  |  | $ | — |  |  | $ | 32,327 |  |  |  |  |
Non-interest expense |  | — |  |  | 19,444 |  |  | 20,354 |  |  | 42,238 |  |  |  |  |
Loss from discontinued operations before income taxes |  | — |  |  | (3,190) |  |  | (20,354) |  |  | (9,911) |  |  |  |  |
Income tax expense (benefit) |  | — |  |  | (932) |  |  | 17,682 |  |  | (2,299) |  |  |  |  |
Net loss from discontinued operations |  | $ | — |  |  | $ | (2,258) |  |  | $ | (38,036) |  |  | $ | (7,612) |  |  |  |  |
The assets and liabilities of discontinued operations on the consolidated balance sheet as of December 31, 2020 were as follows:
(amounts in thousands) |  |  | December 31, 2020
Carrying amounts of assets included as part of discontinued operations: |  |  |
Cash and cash equivalents |  |  | $ | 2,989 |
Premises and equipment, net |  |  | 401 |
Goodwill and other intangibles |  |  | 10,329 |
Other assets |  |  | 48,336 |
Total assets of discontinued operations |  |  | $ | 62,055 |
Carrying amounts of liabilities included as part of discontinued operations: |  |  |
Borrowings from Customers Bank |  |  | $ | 21,000 |
Accrued interest payable and other liabilities |  |  | 18,704 |
Total liabilities of discontinued operations |  |  | $ | 39,704 |
In connection with the divestiture, Customers has also entered into various agreements with BM Technologies, including a transition services agreement, software license agreement, deposit servicing agreement, non-competition agreement and loan agreement for periods ranging from one to ten years. Customers incurred expenses of $14.3 million and $27.9 million, respectively, to BM Technologies under the deposit servicing agreement, included within the technology, communication and bank operations expense in income from continuing operations during the three and six months ended June 30, 2021.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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