Customers Bancorp, Inc.CUBI
Customers Bancorp, Inc. Debt Disclosure
BORROWINGS
Short-term debt
Short-term debt at December 31, 2025 and 2024 was as follows:
| December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| (dollars in thousands) | Amount | Rate | Amount | Rate | |||||||||||||||||||
| FHLB advances | $ | — | — | % | $ | 100,000 | 4.61 | % | |||||||||||||||
| Total short-term debt | $ | — | $ | 100,000 | |||||||||||||||||||
The following is a summary of additional information relating to Customers’ short-term debt:
| December 31, | |||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
FRB advances (1) | |||||||||||||||||
| Maximum outstanding at any month end | $ | — | $ | — | $ | — | |||||||||||
| Average balance during the year | — | — | 120,099 | ||||||||||||||
| Weighted-average interest rate during the year | — | % | — | % | 5.23 | % | |||||||||||
| FHLB advances | |||||||||||||||||
| Maximum outstanding at any month end | $ | 200,000 | $ | 150,000 | $ | — | |||||||||||
| Average balance during the year | 61,781 | 8,880 | 87,407 | ||||||||||||||
| Weighted-average interest rate during the year | 4.55 | % | 5.71 | % | 5.16 | % | |||||||||||
| Federal funds purchased | |||||||||||||||||
| Maximum outstanding at any month end | $ | — | $ | — | $ | — | |||||||||||
| Average balance during the year | — | — | 3,781 | ||||||||||||||
| Weighted-average interest rate during the year | — | % | — | % | 4.97 | % | |||||||||||
(1) Included advances under the Bank Term Funding Program (“BTFP”). The BTFP offered loans of up to one year to eligible depository institutions pledging any collateral valued at par, that are eligible for purchase by the Federal Reserve Banks in open market operations, such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. The BTFP ended on March 11, 2024.
At December 31, 2025 and 2024, Customers Bank had aggregate availability under federal funds lines totaling $1.6 billion and $1.7 billion, respectively.
Long-term debt
FHLB and FRB advances
Long-term FHLB and FRB advances at December 31, 2025 and 2024 were as follows:
| December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | Amount | Rate | Amount | Rate | |||||||||||||||||||||||||||||||
FHLB advances (1) | $ | 1,325,068 | (2) | 4.04 | % | (3) | $ | 1,028,352 | (2) | 4.11 | % | (3) | |||||||||||||||||||||||
| Total long-term FHLB and FRB advances | $ | 1,325,068 | $ | 1,028,352 | |||||||||||||||||||||||||||||||
(1) Amounts reported in the above table include fixed rate long-term advances from FHLB of $750.0 million with maturities ranging from March 2026 to March 2028, and variable rate long-term advances from FHLB of $570.0 million with maturities ranging from March 2027 to December 2028 with a returnable option that can be repaid without penalty on certain predetermined dates at Customers Bank's option, at December 31, 2025.
(2) Includes $5.1 million and $(1.6) million of unamortized basis adjustments from interest rate swaps designated as fair value hedges of long-term advances from FHLB at December 31, 2025 and 2024, respectively. Refer to NOTE 20 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES for additional information.
(3) Excludes the effect of interest rate swaps designated as fair value hedges of long-term advances from FHLB.
Maturities of long-term FHLB advances were as follows at December 31, 2025:
| December 31, 2025 | |||||||||||
| (dollars in thousands) | Amount (1) | Rate (2) | |||||||||
| 2026 | $ | 200,000 | 4.32 | % | |||||||
| 2027 | 940,000 | 3.95 | % | ||||||||
| 2028 | 180,000 | 4.25 | % | ||||||||
| 2029 | — | — | % | ||||||||
| 2030 | — | — | % | ||||||||
| Thereafter | — | — | % | ||||||||
| Total long-term FHLB advances | $ | 1,320,000 | |||||||||
(1) Amounts reported in the above table include variable rate long-term advances from FHLB of $570.0 million with maturities ranging from March 2027 to December 2028 with a returnable option that can be repaid without penalty on certain predetermined dates at Customers Bank’s option.
(2) Excludes the effect of interest rate swaps designated as fair value hedges of long-term advances from FHLB.
The maximum borrowing capacity with the FHLB and FRB at December 31, 2025 and 2024 was as follows:
| December 31, | |||||||||||
| (amounts in thousands) | 2025 | 2024 | |||||||||
| Total maximum borrowing capacity with the FHLB | $ | 4,639,436 | $ | 3,562,171 | |||||||
Total maximum borrowing capacity with the FRB | 4,742,290 | 4,357,519 | |||||||||
Qualifying loans and securities serving as collateral against FHLB and FRB | 11,200,653 | 9,722,736 | |||||||||
Senior and Subordinated Debt
Long-term senior notes and subordinated debt at December 31, 2025 and 2024 were as follows:
Carrying Amount at December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Issued by | Ranking | 2025 | 2024 | Rate | Issued Amount | Date Issued | Maturity | Price | ||||||||||||||||||||||||||||||||||||||||||
| Customers Bancorp | Senior (1) | $ | 99,208 | $ | 99,068 | 2.875 | % | $ | 100,000 | August 2021 | August 2031 | 100.000 | % | |||||||||||||||||||||||||||||||||||||
| Total other borrowings | $ | 99,208 | $ | 99,068 | ||||||||||||||||||||||||||||||||||||||||||||||
| Customers Bancorp | Subordinated (2)(3) | $ | 98,359 | $ | — | 6.875 | % | $ | 100,000 | December 2025 | January 2036 | 100.000 | % | |||||||||||||||||||||||||||||||||||||
| Customers Bancorp | Subordinated (2)(4) | 73,129 | 72,947 | 5.375 | % | $ | 74,750 | December 2019 | December 2034 | 100.000 | % | |||||||||||||||||||||||||||||||||||||||
| Customers Bank | Subordinated (2)(5) | 109,659 | 109,562 | 6.125 | % | 110,000 | June 2014 | June 2029 | 100.000 | % | ||||||||||||||||||||||||||||||||||||||||
| Total subordinated debt | $ | 281,147 | $ | 182,509 | ||||||||||||||||||||||||||||||||||||||||||||||
(1)The senior notes will bear an annual fixed rate of 2.875% until August 15, 2026. From August 15, 2026 until maturity, the notes will bear an annual interest rate equal to a benchmark rate, which is expected to be the three-month term SOFR, plus 235 basis points. Customers Bancorp has the ability to call the senior notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after August 15, 2026.
(2)The subordinated notes qualify as Tier 2 capital for regulatory capital purposes.
(3)The subordinated notes will bear an annual fixed rate of 6.875% until January 15, 2031. From January 15, 2031 until maturity, the notes will bear an annual interest rate equal to a benchmark rate, which is expected to be the three-month term SOFR, plus 342 basis points. Customers Bancorp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after January 15, 2031.
(4)Customers Bancorp has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after December 30, 2029.
(5)The subordinated notes had an annual fixed rate of 6.125% until June 26, 2024. From June 26, 2024 until maturity, the notes bear an annual interest rate equal to the three-month LIBOR plus 344.3 basis points. Pursuant to the Adjustable Interest Rate (LIBOR) Act enacted by Congress on March 15, 2022, Customers substituted three-month term SOFR plus a tenor spread adjustment of 26.161 basis points for three-month LIBOR as the benchmark reference rate in order to calculate the annual interest rate after June 26, 2024. Customers Bank has the ability to call the subordinated notes, in whole, or in part, at a redemption price equal to 100% of the principal balance at certain times on or after June 26, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 2, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Mar 8, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.