Acquisition Activity

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisition Activity

ACQUISITION ACTIVITY

Acquisition of Higher One, Inc.'s One Account Student Checking and Refund Management Disbursement Services Business

On December 15, 2015, Customers announced that it had entered into an Asset Purchase Agreement (the "Agreement") to acquire assets related to the One Account Student Checking and Refund Management Disbursement Services business ("Disbursements") of Higher One, Inc. ("Higher One"). Pursuant to the Agreement, Customers will acquire all assets of the Disbursements business, including all property and equipment, existing contractual relationships with vendors and educational institutions, and all intellectual property, will assume certain normal business related liabilities, and will commit to hire approximately 225 current Higher One employees primarily located in New Haven, Connecticut that manage the Disbursement business and serve the customers. Customers intends to retain these team members in New Haven. Customers will pay Higher One an aggregate of $42 million in cash in connection with the acquisition of the Disbursements business. Under the Agreement, Customers will pay Higher One $17 million in cash at closing and make cash payments of $10 million each on the first and second anniversaries of the closing. Customers also will pay Higher One $5 million in cash for Higher One's services under a transition services agreement. The transaction is subject to approval by Higher One stockholders which is expected to occur in the first quarter of 2016 with the transaction closing expected no later than July 1, 2016.

Acquisition of Loan Portfolio

In the first quarter 2014, Customers Bank purchased $277.9 million of residential adjustable-rate jumbo mortgage loans (indexed to one-year LIBOR) from Michigan-based Flagstar Bank. The purchase price was 100.75% of loans outstanding.

In first quarter 2013, Customers Bank completed the purchase of certain commercial loans from Michigan-based Flagstar

Bank. Under the terms of the agreement, Customers Bank acquired $182.3 million in commercial loan and related

commitments, of which $155.1 million was drawn at the date of acquisition. Also, as part of the agreement, Customers Bank

assumed the leases for two of Flagstar’s commercial lending offices in New England. The purchase price was 98.7% of loans

outstanding.