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Network
2331301 - Disclosure - Disclosures about Fair Value of Financial Instruments (Tables)
(http://www.customersbank.com/role/DisclosuresAboutFairValueOfFinancialInstrumentsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0001488813 (http://www.sec.gov/CIK)
Fair Value Disclosures [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Fair Value Disclosures [Abstract]
 
Estimated Fair Values of Financial Instruments
The estimated fair values of Customers’ financial instruments were as follows at December 31, 2016 and 2015.
 
Carrying
Amount
 
Estimated
Fair Value
 
Fair Value Measurements at December 31, 2016
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
(amounts in thousands)
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
244,709

 
$
244,709

 
$
244,709

 
$
—

 
$
—

Investment securities, available for sale
493,474

 
493,474

 
15,246

 
478,228

 
—

Loans held for sale
2,117,510

 
2,117,510

 
—

 
2,117,510

 
—

Loans receivable, net of allowance for loan losses
6,105,075

 
6,149,773

 
—

 
—

 
6,149,773

FHLB, Federal Reserve Bank and other restricted stock
68,408

 
68,408

 
—

 
68,408

 
—

Derivatives
10,864

 
10,864

 
—

 
10,819

 
45

Assets held for sale
32,248

 
32,248

 
20,000

 
—

 
12,248

Liabilities:
 
 
 
 
 
 
 
 
 
Deposits
$
6,846,980

 
$
6,846,868

 
$
4,015,218

 
$
2,831,650

 
$
—

Deposits held for sale
456,795

 
456,795

 
456,795

 
—

 
—

Federal funds purchased
83,000

 
83,000

 
83,000

 
—

 
—

FHLB advances
868,800

 
869,049

 
688,800

 
180,249

 
—

Other borrowings
87,123

 
91,761

 
66,261

 
25,500

 
—

Subordinated debt
108,783

 
111,375

 
—

 
111,375

 
—

Derivatives
14,172

 
14,172

 
—

 
14,172

 
—

 
Carrying
Amount
 
Estimated
Fair Value
 
Fair Value Measurements at December 31, 2015
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
(amounts in thousands)
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
264,593

 
$
264,593

 
$
264,593

 
$
—

 
$
—

Investment securities, available for sale
560,253

 
560,253

 
19,212

 
541,041

 
—

Loans held for sale
1,797,064

 
1,797,458

 
—

 
1,757,807

 
39,651

Loans receivable, net of allowance for loan losses
5,417,248

 
5,353,326

 
—

 
—

 
5,353,326

FHLB and Federal Reserve Bank, and other restricted stock
90,841

 
90,841

 
—

 
90,841

 
—

Derivatives
9,295

 
9,295

 
—

 
9,250

 
45

Assets held for sale
584

 
584

 
—

 
—

 
584

Liabilities:
 
 
 
 
 
 
 
 
 
Deposits
$
5,662,433

 
$
5,664,685

 
$
3,314,836

 
$
2,349,849

 
$
—

Deposits held for sale
247,068

 
247,068

 
247,068

 
—

 
—

Federal funds purchased
70,000

 
70,000

 
70,000

 
—

 
—

FHLB advances
1,625,300

 
1,625,468

 
1,365,300

 
260,168

 
—

Other borrowings
86,457

 
93,804

 
68,867

 
24,937

 
—

Subordinated debt
108,685

 
110,825

 
—

 
110,825

 
—

Derivatives
13,932

 
13,932

 
—

 
13,932

 
—

  
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis
For financial assets and liabilities measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2016 and 2015 were as follows:
 
December 31, 2016
 
Fair Value Measurements at the End of the Reporting Period Using
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
(amounts in thousands)

Measured at Fair Value on a Recurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Agency-guaranteed residential mortgage-backed securities
$
—

 
$
231,263

 
$
—

 
$
231,263

Agency-guaranteed commercial mortgage-backed securities
—

 
201,817

 
—

 
201,817

Corporate notes
—

 
45,148

 
—

 
45,148

Equity securities
15,246

 
—

 
—

 
15,246

Derivatives (1)
—

 
10,819

 
45

 
10,864

Loans held for sale – fair value option
—

 
2,117,510

 
—

 
2,117,510

Total assets - recurring fair value measurements
$
15,246

 
$
2,606,557

 
$
45

 
$
2,621,848

Liabilities
 
 
 
 
 
 
 
Derivatives (2)
$
—

 
$
14,172

 
$
—

 
$
14,172

Measured at Fair Value on a Nonrecurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Impaired loans, net of specific reserves of $1,360
$
—

 
$
—

 
$
6,527

 
$
6,527

Other real estate owned
—

 
—

 
2,731

 
2,731

Total assets - nonrecurring fair value measurements
$
—

 
$
—

 
$
9,258

 
$
9,258


 
December 31, 2015
 
Fair Value Measurements at the End of the Reporting Period Using
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
(amounts in thousands)
 
Measured at Fair Value on a Recurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Agency-guaranteed residential mortgage-backed securities
$
—

 
$
298,104

 
$
—

 
$
298,104

Agency-guaranteed commercial mortgage-backed securities
—

 
202,870

 
—

 
202,870

Corporate notes
—

 
40,067

 
—

 
40,067

Equity securities
19,212

 
—

 
—

 
19,212

Derivatives (1)
—

 
9,250

 
45

 
9,295

Loans held for sale – fair value option
—

 
1,757,807

 
—

 
1,757,807

Total assets - recurring fair value measurements
$
19,212

 
$
2,308,098

 
$
45

 
$
2,327,355

Liabilities
 
 
 
 
 
 
 
Derivatives (2)
$
—

 
$
13,932

 
$
—

 
$
13,932

Measured at Fair Value on a Nonrecurring Basis:
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Impaired loans, net of specific reserves of $2,273
$
—

 
$
—

 
$
4,346

 
$
4,346

Other real estate owned
—

 
—

 
358

 
358

Total assets - nonrecurring fair value measurements
$
—

 
$
—

 
$
4,704

 
$
4,704


(1)
Included in Other Assets
(2)
Included in Other Liabilities
  
Statement of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis
The changes in Level 3 assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015 were as follows:
 
 
For the Years Ended December 31,
 
 
2016
 
2015
 
 
Residential Mortgage Loan Commitments
(amounts in thousands)
 
 
 
 
Balance at January 1,
 
$
45

 
$
43

Issuances
 
400

 
273

Settlements
 
(400
)
 
(271
)
Balance at December 31,
 
$
45

 
$
45

  
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis
The following table summarizes financial assets and financial liabilities measured at fair value as of December 31, 2016 and 2015 for which Customers utilized Level 3 inputs to measure fair value:
 
Quantitative Information about Level 3 Fair Value Measurements
December 31, 2016
Fair Value
Estimate
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted
Average) (4)
(dollars in thousands)
 
Impaired loans
$
1,431

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
(8
)%
Impaired loans
5,096

 
Discounted cash flow
 
Projected cash flows (3)
 
4 times EBIDTA

 
 
 
 
 
Discount rate (3)
 
0
 %
Other real estate owned
2,731

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
(8
)%
Residential mortgage loan commitments
45

 
Adjusted market bid
 
Pull-through rate
 
90
 %
 
 
Quantitative Information about Level 3 Fair Value Measurements
December 31, 2015
Fair Value
Estimate
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted
Average) (4)
(dollars in thousands)
 
Impaired loans
$
4,346

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
(8
)%
Other real estate owned
358

 
Collateral appraisal (1)
 
Liquidation expenses (2)
 
(8
)%
Residential mortgage loan commitments
45

 
Adjusted market bid
 
Pull-through rate
 
94
 %
(1)
Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. The Bank does not generally discount appraisals.
(2)
Fair value is adjusted for estimated costs to sell based on a percentage of the value determined by appraisal.
(3)
Projected cash flows of the business derived using EBITDA multiple based on management's best estimate.
(4)
Presented as a percentage of the value determined by appraisal for impaired loans and other real estate owned.