XML 66 R21.htm IDEA: XBRL DOCUMENT v3.22.0.1
Borrowings
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Borrowings BORROWINGS
Short-term debt
Short-term debt at December 31, 2021 and 2020 was as follows:
 December 31,
 20212020
(dollars in thousands)AmountRateAmountRate
FHLB advances$700,000 0.26 %$850,000 1.19 %
Federal funds purchased75,000 0.05 %250,000 0.09 %
Total short-term debt$775,000 $1,100,000 
The following is a summary of additional information relating to Customers' short-term debt:
 December 31,
(dollars in thousands)202120202019
FHLB advances
Maximum outstanding at any month end$850,000 $910,000 $1,190,150 
Average balance during the year264,704 809,788 793,304 
Weighted-average interest rate during the year2.35 %2.31 %2.66 %
Federal funds purchased
Maximum outstanding at any month end365,000 842,000 600,000 
Average balance during the year22,110 239,481 271,400 
Weighted-average interest rate during the year0.07 %0.19 %2.28 %
At December 31, 2021 and 2020, Customers Bank had aggregate availability under federal funds lines totaling $1.3 billion and $924.0 million, respectively.
Long-term debt
FHLB and FRB advances
Long-term FHLB and FRB advances at December 31, 2021 and 2020 were as follows:
December 31,
20212020
(dollars in thousands)AmountRateAmountRate
FRB PPP Liquidity Facility advances$— — %$4,415,016 0.35 %
Total long-term FHLB and FRB advances$— $4,415,016 
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 pursuant to the PPP, with respect to both principal and interest that are originated or purchased by an eligible institution, may be pledged as collateral to the Federal Reserve Banks. During the year ended December 31, 2021, Customers repaid the PPPLF advances. No new advances are available from the PPPLF after July 30, 2021. There were no long-term advances outstanding with the FHLB or FRB at December 31, 2021 and 2020.
The maximum borrowing capacity with the FHLB and FRB at December 31, 2021 and 2020, was as follows:
December 31,
(amounts in thousands)20212020
Total maximum borrowing capacity with the FHLB$2,973,635 $2,729,516 
Total maximum borrowing capacity with the FRB (1)
183,052 223,299 
Qualifying loans serving as collateral against FHLB and FRB advances (1)
3,594,339 3,363,364 
(1)Amounts reported in the above table exclude borrowings under the PPPLF, which are limited to the unpaid principal balance of the loans originated under the PPP. At December 31, 2021, Customers had no borrowings under the PPPLF. At December 31, 2020, Customers had $4.4 billion of borrowings under the PPPLF.

Senior and Subordinated Debt

Long-term senior notes and subordinated debt at December 31, 2021 and 2020 were as follows:
December 31,
(dollars in thousands)20212020
Issued byRankingAmountAmountRateIssued AmountDate IssuedMaturityPrice
Customers Bancorp
Senior (1)
$98,642 $— 2.875 %$100,000 August 2021August 2031100.000 %
Customers BancorpSenior24,672 24,552 4.500 %25,000 September 2019September 2024100.000 %
Customers BancorpSenior99,772 99,485 3.950 %100,000 June 2017June 202299.775 %
Total other borrowings$223,086 $124,037 
Customers Bancorp
Subordinated (2)(3)
$72,403 $72,222 5.375 %$74,750 December 2019December 2034100.000 %
Customers Bank
Subordinated (2)(4)
109,270 109,172 6.125 %110,000 June 2014June 2029100.000 %
Total subordinated debt$181,673 $181,394 
(1)The senior notes will bear an annual fixed rate of 2.875% until August 15, 2026. From August 15, 2026 until maturity, the notes will bear an annual interest rate equal to a benchmark rate. which is expected to be the three-month term SOFR, plus 235 basis points. Customers Bancorp has the ability to call the senior notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after August 15, 2026.
(2)The subordinated notes qualify as Tier 2 capital for regulatory capital purposes.
(3)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.
(4)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.