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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Summary of Amortized Cost and Approximate Fair Value of Investment Securities

The amortized cost and approximate fair value of investment securities as of March 31, 2022 and December 31, 2021 are summarized as follows:

			March 31, 2022 (1)
(amounts in thousands)			Amortized Cost						Allowance for Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Available for sale debt securities:
Asset-backed securities			$	351,847					$	(728)					$	87					$	(7,587)					$	343,619
Agency-guaranteed residential mortgage-backed securities			9,242						—						—						(973)						8,269
Agency-guaranteed commercial mortgage-backed securities			2,140						—						—						(95)						2,045
Agency-guaranteed residential collateralized mortgage obligations			618,998						—						833						(16,428)						603,403
Agency-guaranteed commercial collateralized mortgage obligations			172,410						—						—						(9,811)						162,599
Collateralized loan obligations			1,010,938						—						—						(6,576)						1,004,362
Commercial mortgage-backed securities			148,993						—						—						(1,368)						147,625
Corporate notes (2)			607,230						—						1,376						(14,856)						593,750
Private label collateralized mortgage obligations			1,302,400						—						—						(31,993)						1,270,407
State and political subdivision debt securities (3)			8,531						—						—						(581)						7,950
Available for sale debt securities			$	4,232,729					$	(728)					$	2,296					$	(90,268)					4,144,029
Equity securities (4)																											25,824
Total investment securities, at fair value																											$	4,169,853

			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

(1)Accrued interest on AFS debt securities totaled $14.3 million and $11.0 million at March 31, 2022 and December 31, 2021, 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 domestic bank holding companies and equity securities issued by fintech companies, without a

readily determinable fair value, and CRA-qualified mutual fund shares at March 31, 2022 and December 31, 2021. No impairments or measurement adjustments have been recorded on the equity securities without a readily determinable fair value since acquisition.

Summary of Available-for-Sale Debt Securities by Stated Maturity

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:

			March 31, 2022
(amounts in thousands)			Amortized Cost						Fair Value
Due in one year or less			$	4,992					$	4,999
Due after one year through five years			419,539						409,141
Due after five years through ten years			191,230						187,560
Asset-backed securities			351,847						343,619
Collateralized loan obligations			1,010,938						1,004,362
Commercial mortgage-backed securities			148,993						147,625
Agency-guaranteed residential mortgage-backed securities			9,242						8,269
Agency-guaranteed commercial mortgage-backed securities			2,140						2,045
Agency-guaranteed residential collateralized mortgage obligations			618,998						603,403
Agency-guaranteed commercial collateralized mortgage obligations			172,410						162,599
Private label collateralized mortgage obligations			1,302,400						1,270,407
Total debt securities			$	4,232,729					$	4,144,029

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value

Gross unrealized losses and fair value of Customers' AFS debt securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021 were as follows:

			March 31, 2022
			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			$	199,725					$	(3,832)					$	—					$	—					$	199,725					$	(3,832)
Agency-guaranteed residential mortgage-backed securities			—						—						8,269						(973)						8,269						(973)
Agency-guaranteed commercial mortgage-backed securities			2,045						(95)						—						—						2,045						(95)
Agency-guaranteed residential collateralized mortgage obligations			434,524						(16,428)						—						—						434,524						(16,428)
Agency-guaranteed commercial collateralized mortgage obligations			95,995						(3,764)						66,605						(6,047)						162,600						(9,811)
Collateralized loan obligations			934,954						(6,457)						25,510						(119)						960,464						(6,576)
Commercial mortgage-backed securities			129,365						(1,368)						—						—						129,365						(1,368)
Corporate notes			393,997						(13,972)						14,115						(884)						408,112						(14,856)
Private label collateralized mortgage obligations			856,760						(27,386)						42,196						(4,607)						898,956						(31,993)
State and political subdivision debt securities			7,950						(581)						—						—						7,950						(581)
Total			$	3,055,315					$	(73,883)					$	156,695					$	(12,630)					$	3,212,010					$	(86,513)

			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)

Debt Securities, Available-for-sale, Allowance for Credit Loss

The following table presents the activity in the allowance for credit losses on AFS debt securities, by major security type:

			Asset-backed securities
(amounts in thousands)			Three Months Ended March 31, 2022
Balance at January 1,			$	—
Credit losses on securities for which credit losses were not previously recorded			728
Balance at March 31,			$	728

X

- Definition

Tabular disclosure of allowance for credit loss on investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 30
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=124269663&loc=SL82922900-210455

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- Definition

Tabular disclosure of fair value of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale), in unrealized loss position, without allowance for credit loss. Includes beneficial interest in securitized financial asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=121590138&loc=SL82922954-210456

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123581744&loc=d3e27290-111563

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-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=124269663&loc=SL82922888-210455

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Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

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Tabular disclosure of unrealized gains and losses on investments.

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