REGULATORY MATTERS

9 Months Ended

Sep. 30, 2011

REGULATORY MATTERS

NOTE 11 - REGULATORY MATTERS

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary-actions by regulators that, if undertaken, could have a direct material effect on the Bank's financial statements. Management believes, as of September 30, 2011, that the Bank meets all capital adequacy requirements to which it is subject.  The Bancorp's and the Bank's capital amounts and ratios at September 30, 2011 and December 31, 2010 are presented below:

	Actual						For Capital Adequacy Purposes							To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio				Amount			Ratio				Amount			Ratio
As of September 30, 2011:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	160,280		14.76	%	≥	$	86,892	≥		8.0	%	≥		N/A		N/A
Customers Bank	$	147,456		13.57	%	≥	$	86,914	≥		8.0	%	≥	$	108,643	≥	10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	145,497		13.40	%	≥	$	43,446	≥		4.0	%	≥		N/A		N/A
Customers Bank	$	132,670		12.21	%	≥	$	43,457	≥		4.0	%	≥	$	65,186	≥	6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	145,497		8.92	%	≥	$	65,257	≥		4.0	%	≥		N/A		N/A
Customers Bank	$	132,670		8.13	%	≥	$	65,257	≥		4.0	%	≥	$	81,571	≥	5.0	%
As of December 31, 2010:
Total capital (to risk weighted assets)	$	115,147		21.1	%	≥	$	43,571	≥		8.0	%	≥	$	53,464	≥	10.0	%
Tier 1 capital (to risk weighted assets)		107,036		19.7	%	≥		21,557	≥		4.0	%	≥		32,335	≥	6.0	%
Tier 1 capital (to average assets)		107,036		8.7	%	≥		49,397	≥		4.0	%	≥		61,747	≥	5.0	%