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Investment Securities | 12 Months Ended
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Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of December 31, 2020 and 2019 are summarized as follows:
| December 31, 2020
(amounts in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale debt securities |  |  |  |  |  |  |
Asset-backed securities | $ | 372,640 |  |  | $ | 4,515 |  |  | $ | (10) |  |  | $ | 377,145 |
U.S. government agency securities | 20,000 |  |  | 34 |  |  | $ | — |  |  | 20,034 |
Agency-guaranteed mortgage-backed securities | 61,178 |  |  | 1,913 |  |  | $ | — |  |  | 63,091 |
Agency-guaranteed collateralized mortgage obligations | 160,950 |  |  | 916 |  |  | (99) |  |  | 161,767 |
Collateralized loan obligations | 32,367 |  |  | — |  |  | — |  |  | 32,367 |
Corporate notes (1) | 372,764 |  |  | 24,144 |  |  | (164) |  |  | 396,744 |
Private label collateralized mortgage obligations | 136,943 |  |  | 423 |  |  | (374) |  |  | 136,992 |
State and political subdivision debt securities | 17,346 |  |  | 945 |  |  | — |  |  | 18,291 |
Available for sale debt securities | $ | 1,174,188 |  |  | $ | 32,890 |  |  | $ | (647) |  |  | 1,206,431 |
Equity securities (3) |  |  |  |  |  |  | 3,854 |
Total investment securities, at fair value |  |  |  |  |  |  | $ | 1,210,285 |
| December 31, 2019
(amounts in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Available for sale debt securities |  |  |  |  |  |  |
Agency-guaranteed residential mortgage-backed securities | $ | 273,252 |  |  | $ | 5,069 |  |  | $ | — |  |  | $ | 278,321 |
Corporate notes (1) | 284,639 |  |  | 14,238 |  |  | — |  |  | 298,877 |
Available for sale debt securities | $ | 557,891 |  |  | $ | 19,307 |  |  | $ | — |  |  | 577,198 |
Interest-only GNMA securities (2) |  |  |  |  |  |  | 16,272 |
Equity securities (3) |  |  |  |  |  |  | 2,406 |
Total investment securities, at fair value |  |  |  |  |  |  | $ | 595,876 |
(1)At December 31, 2020 and 2019, includes corporate securities issued by domestic bank holding companies. (2)Reported at fair value with fair value changes recorded in non-interest income based on fair value option election. (3)Includes equity securities issued by a foreign entity. On June 28, 2019, Customers obtained ownership of certain interest-only GNMA securities that served as the primary collateral for loans made to one commercial mortgage warehouse customer through a Uniform Commercial Code private sale transaction. In connection with the acquisition of the interest-only GNMA securities, Customers recognized a pre-tax loss of $7.5 million for the year ended December 31, 2019 for the shortfall in the fair value of the interest-only GNMA securities compared to its credit exposure to this commercial mortgage warehouse customer. Upon acquisition, Customers elected the fair value option for these interest-only GNMA securities. The fair value of these securities at December 31, 2019 was $16.3 million. These securities were sold for $15.4 million with a realized gain of $1.0 million during the year ended December 31, 2020. During the year ended December 31, 2020, Customers recognized unrealized gains of $1.4 million on its equity securities. During the year ended December 31, 2019, Customers recognized unrealized gains of $1.3 million on its interest-only GNMA securities and equity securities. These unrealized gains and losses are reported as unrealized gain (loss) on investment securities within non-interest income on the consolidated statements of income. Proceeds from the sale of AFS debt securities were $387.8 million, $97.6 million and $476.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. Realized gains from the sale of AFS debt securities were $20.1 million and $1.0 million for the years ended December 31, 2020 and 2019, respectively. Realized losses from the sale of AFS debt securities were $18.7 million for the year ended December 31, 2018. These gains (losses) were determined using the specific identification method and were reported as gain (loss) on sale of investment securities within non-interest income on the consolidated statements of income.
The following table presents debt securities by stated maturity. Debt securities backed by mortgages and other assets have expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, these debt securities are classified separately with no specific maturity date:
| December 31, 2020
(amounts in thousands) | Amortized Cost |  | Fair Value
Due in one year or less | $ | — |  |  | $ | — |
Due after one year through five years | 93,111 |  |  | 94,169 |
Due after five years through ten years | 295,653 |  |  | 318,588 |
Due after ten years | 21,346 |  |  | 22,312 |
Asset-backed securities | 372,640 |  |  | 377,145 |
Collateralized loan obligations | 32,367 |  |  | 32,367 |
Agency-guaranteed mortgage-backed securities | 61,178 |  |  | 63,091 |
Private label collateralized mortgage obligations | 136,943 |  |  | 136,992 |
Agency-guaranteed collateralized mortgage obligations | 160,950 |  |  | 161,767 |
Total debt securities | $ | 1,174,188 |  |  | $ | 1,206,431 |
Gross unrealized losses and fair value of Customers' AFS debt securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020 were as follows:
| December 31, 2020
| Less than 12 months |  | 12 months or more |  | Total
(amounts in thousands) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Available for sale debt securities |  |  |  |  |  |  |  |  |  |  |
Asset-backed Securities | $ | 42,588 |  |  | $ | (10) |  |  | $ | — |  |  | $ | — |  |  | $ | 42,588 |  |  | $ | (10) |
Agency-guaranteed collateralized mortgage obligations | 29,822 |  |  | (99) |  |  | — |  |  | — |  |  | 29,822 |  |  | (99) |
Corporate notes | 50,620 |  |  | (164) |  |  | — |  |  | — |  |  | 50,620 |  |  | (164) |
Private label collateralized mortgage obligations | 12,549 |  |  | (374) |  |  | — |  |  | — |  |  | 12,549 |  |  | (374) |
Total | $ | 135,579 |  |  | $ | (647) |  |  | $ | — |  |  | $ | — |  |  | $ | 135,579 |  |  | $ | (647) |
At December 31, 2020, there were 16 AFS debt securities with unrealized losses in the less-than-twelve-month category and no AFS debt securities with unrealized losses in the twelve-months-or-more category. The unrealized losses were principally due to changes in market interest rates that resulted in a negative impact on the respective securities' fair value. All amounts related to these securities are expected to be recovered when market prices recover or at maturity. Customers does not intend to sell any of the 16 securities, and it is not more likely than not that Customers will be required to sell any of the 16 securities before recovery of the amortized cost basis. At December 31, 2019, there were no AFS debt securities in an unrealized loss position. At December 31, 2020 and 2019, Customers Bank had pledged investment securities aggregating $18.8 million and $20.4 million in fair value, primarily as collateral against an unused line of credit with another financial institution. These counterparties do not have the ability to sell or repledge these securities. At December 31, 2020 and 2019, no securities holdings of any one issuer, other than the U.S. government and its agencies, amounted to greater than 10% of shareholders' equity.

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