REGULATORY MATTERS

12 Months Ended

Dec. 31, 2011

REGULATORY MATTERS

NOTE 17 - REGULATORY MATTERS

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 initiate certain mandatory and possibly additional discretionary-actions by regulators that, if undertaken, could have a direct material effect on the Bancorp's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and 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.

Quantitative measures established by regulation to ensure capital adequacy require the Bank and Bancorp to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined).  Management believes, as of December 31, 2011 and 2010, that the Bank and Bancorp meet all capital adequacy requirements to which they are subject.

To be categorized as well capitalized, an institution must maintain minimum total risk based, Tier 1 risk based and Tier 1 leveraged ratios as set forth in the following table:

	Actual				For Capital Adequacy Purposes					To Be Well Capitalized Under     Prompt Corrective Action                  Provisions
	Amount		Ratio		Amount			Ratio		Amount			Ratio
As of December 31, 2011:
Total capital (to risk weighted assets)
Customers Bancorp, Inc.	$	162,228	11.43	%	$	113,504	>	8.0	%		N/A		N/A
Customers Bank	$	157,228	11.08	%	$	113,504	>	8.0	%	$	141,880	>	10.0	%
Tier 1 capital (to risk weighted assets)
Customers Bancorp, Inc.	$	146,395	10.32	%	$	56,752	>	4.0	%		N/A		N/A
Customers Bank	$	141,395	9.97	%	$	56,752	>	4.0	%	$	85,128	>	6.0	%
Tier 1 capital (to average assets)
Customers Bancorp, Inc.	$	146,395	7.59	%	$	77,166	>	4.0	%		N/A		N/A
Customers Bank	$	141,395	7.33	%	$	77,166	>	4.0	%	$	96,457	>	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	%