Customers Bancorp, Inc.CUBI
Customers Bancorp, Inc. Revenue Disclosure
NON-INTEREST REVENUES
Customers' revenue from contracts with customers within the scope of ASC 606, Revenue from Contracts with Customers ("ASC 606") is recognized within non-interest income.
The following tables present Customers' non-interest revenues affected by ASC 606 by business segment for the years ended December 31, 2020, 2019, and 2018:
| For the Year Ended December 31, 2020 | |||||||||||||||||
| (amounts in thousands) | Customers Bank Business Banking | BankMobile | Consolidated | ||||||||||||||
| Revenue from contracts with customers: | |||||||||||||||||
| Revenue recognized at point in time: | |||||||||||||||||
Interchange and card revenue (1) | $ | (5,245) | $ | 26,284 | $ | 21,039 | |||||||||||
| Deposit fees | 2,527 | 11,308 | 13,835 | ||||||||||||||
| University fees - card and disbursement fees | — | 1,240 | 1,240 | ||||||||||||||
| Total revenue recognized at point in time | (2,718) | 38,832 | 36,114 | ||||||||||||||
| Revenue recognized over time: | |||||||||||||||||
| University fees - subscription revenue | — | 4,080 | 4,080 | ||||||||||||||
| Total revenue recognized over time | — | 4,080 | 4,080 | ||||||||||||||
| Total revenue from contracts with customers | $ | (2,718) | $ | 42,912 | $ | 40,194 | |||||||||||
(1) Beginning on July 1, 2020, Customers Bank became subject to the Federal Reserve's regulation limits on interchange fees for banks over $10 billion in assets. Customers Bank Business Banking has agreed to pay BankMobile the difference between the regulated and unregulated interchange rates. For the year ended December 31, 2020, BankMobile received $5.9 million for the difference between the regulated and unregulated interchange rates.
| For the Year Ended December 31, 2019 | |||||||||||||||||
| (amounts in thousands) | Customers Bank Business Banking | BankMobile | Consolidated | ||||||||||||||
| Revenue from contracts with customers: | |||||||||||||||||
| Revenue recognized at point in time: | |||||||||||||||||
| Interchange and card revenue | $ | 781 | $ | 28,160 | $ | 28,941 | |||||||||||
| Deposit fees | 1,742 | 11,073 | 12,815 | ||||||||||||||
| University fees - card and disbursement fees | — | 1,008 | 1,008 | ||||||||||||||
| Total revenue recognized at point in time | 2,523 | 40,241 | 42,764 | ||||||||||||||
| Revenue recognized over time: | |||||||||||||||||
| University fees - subscription revenue | — | 3,956 | 3,956 | ||||||||||||||
| Total revenue recognized over time | — | 3,956 | 3,956 | ||||||||||||||
| Total revenue from contracts with customers | $ | 2,523 | $ | 44,197 | $ | 46,720 | |||||||||||
| For the Year Ended December 31, 2018 | |||||||||||||||||
| (amounts in thousands) | Customers Bank Business Banking | BankMobile | Consolidated | ||||||||||||||
| Revenue from contracts with customers: | |||||||||||||||||
| Revenue recognized at point in time: | |||||||||||||||||
| Interchange and card revenue | $ | 794 | $ | 29,901 | $ | 30,695 | |||||||||||
| Deposit fees | 1,277 | 6,547 | 7,824 | ||||||||||||||
| University fees - card and disbursement fees | — | 1,039 | 1,039 | ||||||||||||||
| Total revenue recognized at point in time | 2,071 | 37,487 | 39,558 | ||||||||||||||
| Revenue recognized over time: | |||||||||||||||||
| University fees - subscription revenue | — | 3,681 | 3,681 | ||||||||||||||
| Total revenue recognized over time | — | 3,681 | 3,681 | ||||||||||||||
| Total revenue from contracts with customers | $ | 2,071 | $ | 41,168 | $ | 43,239 | |||||||||||
The following is a discussion of revenues within the scope of ASC 606:
Card revenue
Card revenue primarily relates to debit card fees earned from interchange and ATM fees. Interchange fees are earned whenever Customers' issued debit and prepaid cards are processed through card payment networks. Interchange fees are recognized concurrent with the processing of the debit card transaction.
Deposit fees
Deposit fees relate to service charges on deposit accounts for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as stop-payment charges, wire transfer fees, cashier and money order fees are recognized at the time the transaction is executed. Account maintenance fees, which relate primarily to monthly maintenance and account analysis fees, are earned on a monthly basis representing the period over which Customers satisfies its performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposit accounts are withdrawn from the depositor's account balance.
The revenues recognized at a point in time primarily consist of contracts with no specified terms, but which may be terminated at any time by the customer without penalty. Due to the transactional nature and indefinite term of these agreements, there were no related contract balances that were recorded for these revenue streams on Customers' consolidated balance sheets as of December 31, 2020 and 2019.
University fees
University fees represent revenues from higher education institutions and are generated from fees charged for the services provided. For higher education institution clients, Customers, through BankMobile, facilitated the distribution of financial aid and other refunds to students, while simultaneously enhancing the ability of the higher education institutions to comply with the federal regulations
applicable to financial aid transactions. For these services, higher education institution clients are charged an annual subscription fee and/or per-transaction fee (e.g., new card, card replacement fees) for certain transactions. The annual subscription fee is recognized ratably over the period of service and the transaction fees are recognized when the transaction is completed. BankMobile also entered into long-term (generally three or five-year initial term) contracts with higher education institutions to provide these refund management disbursement services. Deferred revenue consists of amounts billed to or received from clients prior to the performance of services. The deferred revenues are earned over the service period on a straight-line basis.Free Sentinel
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2020 | Mar 2, 2021 | Showing above |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.