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REGULATORY CAPITAL
 6 Months Ended
Jun. 30, 2024
Regulatory Capital Requirements under Banking Regulations [Abstract]  
REGULATORY CAPITAL REGULATORY CAPITAL
The Bank and the Bancorp are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can result in certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on Customers’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Bancorp must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items, as calculated under the regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies.
In first quarter 2020, the U.S federal banking regulatory agencies permitted banking organizations to phase-in, for regulatory capital purposes, the day-one impact of the new CECL accounting rule on retained earnings over a period of three years. As part of its response to the impact of COVID-19, on March 31, 2020, the U.S. federal banking regulatory agencies issued an interim final rule that provided the option to temporarily delay certain effects of CECL on regulatory capital for two years, followed by a three-year transition period. The interim final rule allows banking organizations to delay for two years 100% of the day-one impact of adopting CECL and 25% of the cumulative change in the reported allowance for credit losses since adopting CECL. Customers has elected to adopt the interim final rule, which is reflected in the regulatory capital data presented below. The cumulative CECL capital transition impact as of December 31, 2021 which amounted to $61.6 million will be phased in at 25% per year beginning on January 1, 2022 through December 31, 2024. As of June 30, 2024, our regulatory capital ratios reflected 25%, or $15.4 million, benefit associated with the CECL transition provisions.
Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Bancorp to maintain minimum amounts and ratios (set forth in the following table) of common equity Tier 1, Tier 1, and total capital to risk-weighted assets, and Tier 1 capital to average assets (as defined in the regulations). At June 30, 2024 and December 31, 2023, the Bank and the Bancorp satisfied all capital requirements to which they were subject.
Generally, to comply with the regulatory definition of adequately capitalized, or well capitalized, respectively, or to comply with the Basel III capital requirements, an institution must at least maintain the common equity Tier 1, Tier 1 and total risk-based capital ratios and the Tier 1 leverage ratio in excess of the related minimum ratios as set forth in the following table:
Minimum Capital Levels to be Classified as:
 ActualAdequately CapitalizedWell CapitalizedBasel III Compliant
(dollars in thousands)AmountRatioAmountRatioAmountRatioAmountRatio
As of June 30, 2024:
Common equity Tier 1 capital (to risk-weighted assets)
Customers Bancorp, Inc.$1,750,538 12.786 %$616,080 4.500 %N/AN/A$958,346 7.000 %
Customers Bank$1,937,780 14.169 %$615,428 4.500 %$888,952 6.500 %$957,333 7.000 %
Tier 1 capital (to risk-weighted assets)
Customers Bancorp, Inc.$1,888,331 13.793 %$821,439 6.000 %N/AN/A$1,163,706 8.500 %
Customers Bank$1,937,780 14.169 %$820,571 6.000 %$1,094,095 8.000 %$1,162,476 8.500 %
Total capital (to risk-weighted assets)
Customers Bancorp, Inc.$2,162,965 15.799 %$1,095,252 8.000 %N/AN/A$1,437,519 10.500 %
Customers Bank$2,139,557 15.644 %$1,094,095 8.000 %$1,367,619 10.000 %$1,436,000 10.500 %
Tier 1 capital (to average assets)
Customers Bancorp, Inc.$1,888,331 8.916 %$847,136 4.000 %N/AN/A$847,136 4.000 %
Customers Bank$1,937,780 9.160 %$846,161 4.000 %$1,057,701 5.000 %$846,161 4.000 %
As of December 31, 2023:
Common equity Tier 1 capital (to risk-weighted assets)
Customers Bancorp, Inc.$1,661,149 12.230 %$611,200 4.500 %N/AN/A$950,755 7.000 %
Customers Bank$1,868,360 13.773 %$610,453 4.500 %$881,765 6.500 %$949,594 7.000 %
Tier 1 capital (to risk-weighted assets)
Customers Bancorp, Inc.$1,798,942 13.245 %$814,933 6.000 %N/AN/A$1,154,489 8.500 %
Customers Bank$1,868,360 13.773 %$813,937 6.000 %$1,085,250 8.000 %$1,153,078 8.500 %
Total capital (to risk-weighted assets)
Customers Bancorp, Inc.$2,076,550 15.289 %$1,086,578 8.000 %N/AN/A$1,426,133 10.500 %
Customers Bank$2,073,202 15.283 %$1,085,250 8.000 %$1,356,562 10.000 %$1,424,390 10.500 %
Tier 1 capital (to average assets)
Customers Bancorp, Inc.$1,798,942 8.375 %$859,189 4.000 %N/AN/A$859,189 4.000 %
Customers Bank$1,868,360 8.708 %$858,225 4.000 %$1,072,782 5.000 %$858,225 4.000 %
The Basel III Capital Rules require that we maintain a 2.500% capital conservation buffer with respect to each of common equity Tier 1, Tier 1 and total capital to risk-weighted assets, which provides for capital levels that exceed the minimum risk-based capital adequacy requirements. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers.