Disclosures About Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2012

Disclosures About Fair Value of Financial Instruments [Abstract]

Estimated fair values of financial instruments

					Fair Value Measurements at June 30, 2012
	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	122,052	$	122,052	$	122,052	$	0	$	0
Investment securities, available for sale (1)		134,757		134,757		6		107,916		26,835
Loans held for sale		283,535		283,535		0		283,535		0
Loans receivable, net		1,634,752		1,670,463		0		0		1,670,463
FDIC loss sharing receivable		12,376		12,376		0		12,376		0
Bank-owned life insurance		39,901		39,901		0		39,901		0
Restricted stock		20,125		20,125		0		20,125		0
Accrued interest receivable		1,862		1,862		1,862		0		0
Liabilities:
Deposits	$	1,929,863	$	1,954,782	$	0	$	1,954,782	$	0
Federal funds purchased		5,000		5,000		5,000		0		0
Other borrowings		178,000		178,129		0		178,129		0
Subordinated debt		2,000		2,000		0		2,000		0
Accrued interest payable		1,336		1,336		1,336		0		0

(1) Includes an interest only strip security of $2,632.

	December 31, 2011
	Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	$	73,570	$	73,570
Investment securities, available for sale (1)		79,137		79,137
Investment securities, held to maturity		319,547		330,809
Loans held for sale		174,999		174,999
Loans receivable, net		1,327,509		1,339,633
FDIC loss sharing receivable		13,077		13,077
Bank-owned life insurance		29,268		29,268
Restricted stock		21,818		21,818
Accrued interest receivable		5,011		5,011
Liabilities:
Deposits	$	1,583,189	$	1,610,977
Federal funds purchased		5,000		5,000
Subordinated debt		2,000		2,000
Borrowings		331,000		332,847
Accrued interest payable		1,478		1,478

(1) Includes an interest only strip security of $2,894.

Summary of financial assets measured at fair value on a recurring and nonrecurring basis

	June 30, 2012 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
Recurring fair value measurements
Available-for-sale debt securities:
U.S. Treasury and government agency	$	0	$	0	$	0	$	0
Mortgage-backed securities (1)		0		105,276		2,632		107,908
Asset-backed securities		0		582		0		582
Corporate notes		0		0		24,203		24,203
Municipal securities		0		2,058		0		2,058
Equities		6		0		0		6
Total recurring fair value measurements	$	6	$	107,916	$	26,835	$	134,757
Nonrecurring fair value measurements
Impaired loans, net of specific reserves of $5,184	$	0	$	0	$	9,725	$	9,725
Other real estate owned		0		0		1,276		1,276
Total nonrecurring fair value measurements	$	0	$	0	$	11,001	$	11,001

(1) Includes an interest only strip security of $2,632.

	December 31, 2011 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
Recurring fair value measurements
Available-for-sale debt securities:
U.S. Treasury and government agency	$	0	$	1,001	$	0	$	1,001
Mortgage-backed securities (1)		0		53,398		2,894		56,292
Asset-backed securities		0		627		0		627
Corporate notes		0		0		19,217		19,217
Municipal securities		0		2,000		0		2,000
Total recurring fair value measurements	$	0	$	57,026	$	22,111	$	79,137
Nonrecurring fair value measurements
Impaired loans, net of specific reserves of $5,676	$	0	$	0	$	15,579	$	15,579
Other real estate owned		0		0		2,648		2,648
Total nonrecurring fair value measurements	$	0	$	0	$	18,227	$	18,227

(1) Includes an interest only strip security of $2,894.

Statement of changes in Level 3 assets measured at fair value on a recurring basis

	Mortgage- backed			Corporate
	Securities			Notes			Total
Balance at April 1, 2012	$	2,790		$	19,546		$	22,336
Total losses included in other comprehensive income (before taxes)		0			(343	)		(343	)
Amortization included in interest income		(158	)		0			(158	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

	Mortgage- backed			Corporate
	Securities			Notes			Total
Balance at January 1, 2012	$	2,894		$	19,217		$	22,111
Total losses included in other comprehensive income (before taxes)		0			(14	)		(14	)
Amortization included in interest income		(262	)		0			(262	)
Purchases		0			5,000			5,000
Balance at June 30, 2012	$	2,632		$	24,203		$	26,835

Summary of financial assets and financial liabilities measured at fair value

	Quantitative Information about Level 3 Fair Value Measurements  (1)
	Fair Value		Valuation	Unobservable	Range (Weighted
June 30, 2012	Estimate		Technique	Input	Average) (4)
Impaired loans	$	9,725	Collateral appraisal (2)	Liquidation expenses (3)	-3% to -8% (-5.5%)
Other real estate owned		1,276	Collateral appraisal (2)	Liquidation expenses (3)	-3% to -8% (-5.5%)
I/O Strip		2,632	Discounted cash flow	Prepayment Rate	10.00%
				Discount Rate	21.62%

(1) Level 3 fair value measurements relating to the corporate bonds are not included in this table because the measurements are obtained from an independent third-party pricing source and no adjustments are made. While the Bancorp reviews the measurements, it has not developed the significant inputs used to measure those securities. The inputs are not reasonably available to Customers Bancorp.

(2) Obtained from independent third-parties approved appraisers. Appraisals are current and in compliance with credit policy. The Bancorp does not discount appraisals.

(3) Fair value is adjusted for costs to sell.

(4) Presented as a percentage of the value determined by appraisal.