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Borrowings | 9 Months Ended
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Sep. 30, 2023
Debt Disclosure [Abstract] |
Borrowings | BORROWINGS Short-term debt Short-term debt at September 30, 2023 and December 31, 2022 was as follows:
| September 30, 2023 |  | December 31, 2022
(dollars in thousands) | Amount |  | Rate |  | Amount |  | Rate
FHLB advances | — |  |  | — | % |  | 300,000 |  |  | 4.54 | %
Total short-term debt | $ | — |  |  |  |  | $ | 300,000 |  |  |
The following is a summary of additional information relating to Customers' short-term debt:
(dollars in thousands) | September 30, 2023 (1) |  | December 31, 2022 (2) |  |
FRB advances (3) |  |  |  |  |
Maximum outstanding at any month end | $ | — |  |  | $ | — |  |  |
Average balance during the period | 160,571 |  |  | — |  |  |
Weighted-average interest rate during the period | 5.23 | % |  | — | % |  |
FHLB advances |  |  |  |  |
Maximum outstanding at any month end | — |  |  | 775,000 |  |  |
Average balance during the period | 116,862 |  |  | 144,918 |  |  |
Weighted-average interest rate during the period | 5.16 | % |  | 1.07 | % |  |
Federal funds purchased |  |  |  |  |
Maximum outstanding at any month end | — |  |  | 895,000 |  |  |
Average balance during the period | 5,055 |  |  | 349,581 |  |  |
Weighted-average interest rate during the period | 4.97 | % |  | 1.66 | % |  |
(1) For the nine months ended September 30, 2023. (2) For the year ended December 31, 2022. (3) Includes advances under the BTFP. The BTFP offers loans of up to one year to eligible depository institutions pledging any collateral valued at par, that are eligible for purchase by the Federal Reserve Banks in open market operations, such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. At September 30, 2023 and December 31, 2022, Customers Bank had aggregate availability under federal funds lines totaling $1.7 billion. Long-term debt FHLB and FRB advances Long-term FHLB and FRB advances at September 30, 2023 and December 31, 2022 were as follows:
| September 30, 2023 |  | December 31, 2022
(dollars in thousands) | Amount |  | Rate |  | Amount |  | Rate
FHLB advances (1)(2) | $ | 1,529,839 |  |  | 4.43 | % |  | $ | 500,000 |  |  | 3.37 | %
Total long-term FHLB and FRB advances | $ | 1,529,839 |  |  |  |  | $ | 500,000 |  |  |
(1) Amounts reported in the above table include variable and fixed rate long-term advances from FHLB of $590.0 million with maturities ranging from June 2024 to September 2026 with a returnable option that can be repaid without penalty on certain predetermined dates at Customers Bank's option, and fixed rate long-term advances of $950.0 million with maturities ranging from March 2025 to March 2028, at September 30, 2023. (2) Includes $10.2 million of unamortized basis adjustments from interest rate swaps designated as fair value hedges of long-term advances from FHLB at September 30, 2023. Refer to NOTE 14 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for additional information. Maturities of long-term FHLB advances were as follows at September 30, 2023:
| September 30, 2023
(dollars in thousands) | Amount (1) |  | Rate
2024 | 250,000 |  |  | 3.44 | %
2025 | 200,000 |  |  | 4.45 | %
2026 | 540,000 |  |  | 5.54 | %
2027 | 450,000 |  |  | 3.70 | %
Thereafter | 100,000 |  |  | 4.19 | %
Total long-term FHLB advances | $ | 1,540,000 |  |  |
(1) Amounts reported in the above table include variable and fixed rate long-term advances from FHLB of $590.0 million with maturities ranging from June 2024 to September 2026 with a returnable option that can be repaid without penalty on certain predetermined dates at Customers Bank's option. The maximum borrowing capacity with the FHLB and FRB at September 30, 2023 and December 31, 2022 was as follows:
(amounts in thousands) | September 30, 2023 |  | December 31, 2022
Total maximum borrowing capacity with the FHLB | $ | 3,393,013 |  |  | $ | 3,241,120 |
Total maximum borrowing capacity with the FRB (1) | 5,013,377 |  |  | 2,510,189 |
Qualifying loans and securities (1) serving as collateral against FHLB and FRB advances | 10,050,340 |  |  | 7,142,865 |
(1) Includes $484.9 million of borrowing capacity available under the BTFP at September 30, 2023, which offers loans of up to one year to eligible depository institutions pledging any collateral valued at par, that are eligible for purchase by the Federal Reserve Banks in open market operations, such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. Senior and Subordinated Debt Long-term senior notes and subordinated debt at September 30, 2023 and December 31, 2022 were as follows:
|  |  |  | September 30, 2023 |  | December 31, 2022 |  |  |  |  |  |  |  |  |  |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Issued by |  | Ranking |  | Carrying Amount |  | Carrying Amount |  | Rate |  | Issued Amount |  | Date Issued |  | Maturity |  | Price
Customers Bancorp |  | Senior (1) |  | $ | 98,893 |  |  | $ | 98,788 |  |  | 2.875 | % |  | $ | 100,000 |  |  | August 2021 |  | August 2031 |  | 100.000 | %
Customers Bancorp |  | Senior |  | 24,882 |  |  | 24,792 |  |  | 4.500 | % |  | 25,000 |  |  | September 2019 |  | September 2024 |  | 100.000 | %
Total other borrowings |  | $ | 123,775 |  |  | $ | 123,580 |  |  |  |  |  |  |  |  |  |  |
Customers Bancorp |  | Subordinated (2)(3) |  | $ | 72,721 |  |  | $ | 72,585 |  |  | 5.375 | % |  | $ | 74,750 |  |  | December 2019 |  | December 2034 |  | 100.000 | %
Customers Bank |  | Subordinated (2)(4) |  | 109,440 |  |  | 109,367 |  |  | 6.125 | % |  | 110,000 |  |  | June 2014 |  | June 2029 |  | 100.000 | %
Total subordinated debt |  | $ | 182,161 |  |  | $ | 181,952 |  |  |  |  |  |  |  |  |  |  |
(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 after June 30, 2023, 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. Pursuant to the Adjustable Interest Rate (LIBOR) Act enacted by Congress on March 15, 2022, Customers expects that the subordinated notes will substitute three-month term SOFR plus a tenor spread adjustment of 26.161 basis points for three-month LIBOR as the benchmark reference rate in order to calculate the annual interest rate after June 26, 2024. 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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- 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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 470 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//470/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1C -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1E -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1I -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I + Details
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