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Investment Securities | 12 Months Ended
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Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities as of December 31, 2021 and 2020 are summarized as follows:
| December 31, 2021 (1)
(amounts in thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  |  |  | Fair Value
Available for sale debt securities |  |  |  |  |  |  |  |  |
Asset-backed securities | $ | 297,291 |  |  | $ | 253 |  |  | $ | (119) |  |  |  |  | $ | 297,425 |
Agency-guaranteed residential mortgage-backed securities | 9,865 |  |  | — |  |  | (312) |  |  |  |  | 9,553 |
Agency-guaranteed commercial mortgage-backed securities | 2,162 |  |  | — |  |  | (10) |  |  |  |  | 2,152 |
Agency-guaranteed residential collateralized mortgage obligations | 199,091 |  |  | 154 |  |  | (2,315) |  |  |  |  | 196,930 |
Agency-guaranteed commercial collateralized mortgage obligations | 242,668 |  |  | 53 |  |  | (3,877) |  |  |  |  | 238,844 |
Collateralized loan obligations | 1,067,770 |  |  | 247 |  |  | (1,215) |  |  |  |  | 1,066,802 |
Commercial mortgage-backed securities | 149,054 |  |  | 53 |  |  | (180) |  |  |  |  | 148,927 |
Corporate notes (2) | 575,273 |  |  | 6,334 |  |  | (1,561) |  |  |  |  | 580,046 |
Private label collateralized mortgage obligations | 1,248,142 |  |  | 333 |  |  | (6,010) |  |  |  |  | 1,242,465 |
State and political subdivision debt securities (3) | 8,535 |  |  | — |  |  | (104) |  |  |  |  | 8,431 |
Available for sale debt securities | $ | 3,799,851 |  |  | $ | 7,427 |  |  | $ | (15,703) |  |  |  |  | 3,791,575 |
Equity securities (4) |  |  |  |  |  |  |  |  | 25,575 |
Total investment securities, at fair value |  |  |  |  |  |  |  |  | $ | 3,817,150 |
| December 31, 2020 (1)
(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 agencies securities | 20,000 |  |  | 34 |  |  | — |  |  | 20,034 |
Agency-guaranteed residential mortgage-backed securities | 61,178 |  |  | 1,913 |  |  | — |  |  | 63,091 |
Agency-guaranteed residential collateralized mortgage obligations | 139,985 |  |  | 916 |  |  | (60) |  |  | 140,841 |
Agency-guaranteed commercial collateralized mortgage obligations | 20,965 |  |  | — |  |  | (39) |  |  | 20,926 |
Collateralized loan obligations | 32,367 |  |  | — |  |  | — |  |  | 32,367 |
Corporate notes (2) | 372,764 |  |  | 24,144 |  |  | (164) |  |  | 396,744 |
Private label collateralized mortgage obligations | 136,943 |  |  | 423 |  |  | (374) |  |  | 136,992 |
State and political subdivision debt securities (3) | 17,346 |  |  | 945 |  |  | — |  |  | 18,291 |
Available for sale debt securities | $ | 1,174,188 |  |  | $ | 32,890 |  |  | $ | (647) |  |  | 1,206,431 |
Equity securities (4) |  |  |  |  |  |  | 3,854 |
Total investment securities, at fair value |  |  |  |  |  |  | $ | 1,210,285 |
(1)Accrued interest on AFS debt securities totaled $11.0 million and $4.2 million at December 31, 2021 and 2020, respectively, and is included in accrued interest receivable on the consolidated balance sheet. (2)Includes corporate securities issued by domestic bank holding companies. (3)Includes both taxable and non-taxable municipal securities. (4)Includes perpetual preferred stock issued by domestic banks and bank holding companies and equity securities issued by fintech companies, without a readily determinable fair value, and the CRA-qualified mutual fund shares at December 31, 2021 and equity securities issued by a foreign entity at December 31, 2020. No impairments or measurement adjustments have been recorded on the equity securities without a readily determinable fair value since acquisition. 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, 2021, Customers sold all of the outstanding shares in CB Green Ventures Pte Ltd. and CUBI India Ventures Pte Ltd., which held the equity securities issued by a foreign entity, for $3.8 million, and recognized $2.8 million in loss on sale of foreign subsidiaries within non-interest income on the consolidated statement of income. During the years ended December 31, 2021 and 2020, Customers recognized unrealized gains of $2.7 million on these equity securities prior to the sale of foreign subsidiaries and $1.4 million, respectively. 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. Customers' transactions with unconsolidated VIEs include sales of consumer installment loans and investments in the securities issued by the VIEs. Customers is not the primary beneficiary of the VIEs because Customers has no right to make decisions that will most significantly affect the economic performance of the VIEs. Customers' continuing involvement with the unconsolidated VIEs is not significant. Customers' continuing involvement is not considered to be significant where Customers only invests in securities issued by the VIE and was not involved in the design of the VIE or where Customers has transferred financial assets to the VIE for only cash consideration. Customers' investments in the securities issued by the VIEs are classified as AFS debt securities on the consolidated balance sheets, and represent Customers' maximum exposure to loss. Proceeds from the sale of AFS debt securities were $689.9 million, $387.8 million and $97.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. Realized gains from the sale of AFS debt securities were $31.4 million, $20.1 million and $1.0 million for the years ended December 31, 2021, 2020 and 2019, respectively. These gains 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, 2021
(amounts in thousands) | Amortized Cost |  | Fair Value
Due in one year or less | $ | 4,962 |  |  | $ | 5,008 |
Due after one year through five years | 358,429 |  |  | 358,774 |
Due after five years through ten years | 220,417 |  |  | 224,695 |
Asset-backed securities | 297,291 |  |  | 297,425 |
Collateralized loan obligations | 1,067,770 |  |  | 1,066,802 |
Commercial mortgage-backed securities | 149,054 |  |  | 148,927 |
Agency-guaranteed residential mortgage-backed securities | 9,865 |  |  | 9,553 |
Agency-guaranteed commercial mortgage-backed securities | 2,162 |  |  | 2,152 |
Agency-guaranteed residential collateralized mortgage obligations | 199,091 |  |  | 196,930 |
Agency-guaranteed commercial collateralized mortgage obligations | 242,668 |  |  | 238,844 |
Private label collateralized mortgage obligations | 1,248,142 |  |  | 1,242,465 |
Total debt securities | $ | 3,799,851 |  |  | $ | 3,791,575 |
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, 2021 were as follows:
| December 31, 2021
| 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 | $ | 54,753 |  |  | $ | (119) |  |  | $ | — |  |  | $ | — |  |  | $ | 54,753 |  |  | $ | (119) |
Agency-guaranteed residential mortgage-backed securities | 9,554 |  |  | (312) |  |  | — |  |  | — |  |  | 9,554 |  |  | (312) |
Agency-guaranteed commercial mortgage-backed securities | 2,152 |  |  | (10) |  |  | — |  |  | — |  |  | 2,152 |  |  | (10) |
Agency-guaranteed residential collateralized mortgage obligations | 173,492 |  |  | (2,315) |  |  | — |  |  | — |  |  | 173,492 |  |  | (2,315) |
Agency-guaranteed commercial collateralized mortgage obligations | 118,334 |  |  | (3,877) |  |  | — |  |  | — |  |  | 118,334 |  |  | (3,877) |
Collateralized loan obligations | 715,250 |  |  | (1,215) |  |  | — |  |  | — |  |  | 715,250 |  |  | (1,215) |
Commercial mortgage-backed securities | 122,597 |  |  | (180) |  |  | — |  |  | — |  |  | 122,597 |  |  | (180) |
Corporate notes | 188,100 |  |  | (1,561) |  |  |  |  |  |  | 188,100 |  |  | (1,561) |
Private label collateralized mortgage obligations | 632,091 |  |  | (5,874) |  |  | 6,818 |  |  | (136) |  |  | 638,909 |  |  | (6,010) |
State and political subdivision debt securities | 8,430 |  |  | (104) |  |  | — |  |  | — |  |  | 8,430 |  |  | (104) |
Total | $ | 2,024,753 |  |  | $ | (15,567) |  |  | $ | 6,818 |  |  | $ | (136) |  |  | $ | 2,031,571 |  |  | $ | (15,703) |
| 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 residential collateralized mortgage obligations | 8,896 |  |  | (60) |  |  | — |  |  | — |  |  | 8,896 |  |  | (60) |
Agency-guaranteed commercial collateralized mortgage obligations | 20,926 |  |  | (39) |  |  | — |  |  | — |  |  | 20,926 |  |  | (39) |
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, 2021, there were 115 AFS debt securities with unrealized losses in the less-than-twelve-months category and two 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. Substantially 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 117 securities, and it is not more likely than not that Customers will be required to sell any of the 117 securities before recovery of the amortized cost basis. At December 31, 2020, there were 16 AFS debt securities in an unrealized loss position. At December 31, 2021 and 2020, Customers Bank had pledged investment securities aggregating $11.3 million and $18.8 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, 2021 and 2020, 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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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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