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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Gain (Loss) on Securities

The following table presents gross realized gains and realized losses from the sale of AFS debt securities for the years ended December 31, 2022, 2021 and 2020:

			For the Years Ended December 31,
(amounts in thousands)			2022						2021						2020
Gross realized gains			$	3,087					$	31,392					$	20,078
Gross realized losses			(26,251)						—						—
Net realized gain (loss) on sale of available for sale debt securities			$	(23,164)					$	31,392					$	20,078

Summary of Investment Securities by Stated Maturity

The following table presents AFS 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, 2022
(amounts in thousands)			Amortized Cost						Fair Value
Due in one year or less			$	21,465					$	21,499
Due after one year through five years			507,162						460,649
Due after five years through ten years			128,459						113,105
Asset-backed securities			169,170						160,542
Collateralized loan obligations			896,992						872,738
Commercial mortgage-backed securities			142,222						136,357
Agency-guaranteed residential collateralized mortgage obligations			147,481						133,864
Private label collateralized mortgage obligations			1,125,583						1,062,261
Total available for sale debt securities			$	3,138,534					$	2,961,015

The following table presents HTM 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, 2022
(amounts in thousands)			Amortized Cost						Fair Value
Asset-backed securities			361,107						356,133
Agency-guaranteed residential mortgage-backed securities			7,189						6,626
Agency-guaranteed commercial mortgage-backed securities			1,928						1,824
Agency-guaranteed residential collateralized mortgage obligations			204,495						186,119
Agency-guaranteed commercial collateralized mortgage obligations			151,711						142,276
Private label collateralized mortgage obligations			113,829						100,835
Total held to maturity debt securities			$	840,259					$	793,813

Gross Unrealized Losses and Fair Value, Aggregated by Investment Category

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

			December 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			$	169,170					$	(578)					$	—					$	(8,050)					$	160,542
Agency-guaranteed residential collateralized mortgage obligations			147,481						—						—						(13,617)						133,864
Collateralized loan obligations			896,992						—						88						(24,342)						872,738
Commercial mortgage-backed securities			142,222						—						1						(5,866)						136,357
Corporate notes			657,086						—						45						(61,878)						595,253
Private label collateralized mortgage obligations			1,125,583						—						308						(63,630)						1,062,261
Available for sale debt securities			$	3,138,534					$	(578)					$	442					$	(177,383)					2,961,015
Equity securities (3)																											26,485
Total investment securities, at fair value																											$	2,987,500

			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			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 (2)			8,535						—						(104)						8,431
Available for sale debt securities			$	3,799,851					$	7,427					$	(15,703)					3,791,575
Equity securities (3)																					25,575
Total investment securities, at fair value																					$	3,817,150

(1)Accrued interest on AFS debt securities totaled $16.7 million and $11.0 million at December 31, 2022 and 2021, respectively, and is included in accrued interest receivable on the consolidated balance sheet.

(2)Includes both taxable and non-taxable municipal securities.

(3)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, 2022 and 2021. No impairments or measurement adjustments have been recorded on the equity securities without a readily determinable fair value since acquisition.

In 2019,

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 December 31, 2022 and 2021 were as follows:

			December 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			$	160,542					$	(8,050)					$	—					$	—					$	160,542					$	(8,050)
Agency-guaranteed residential collateralized mortgage obligations			133,864						(13,617)						—						—						133,864						(13,617)
Collateralized loan obligations			386,701						(13,516)						315,270						(10,826)						701,971						(24,342)
Commercial mortgage-backed securities			39,828						(1,410)						93,005						(4,456)						132,833						(5,866)
Corporate notes			386,464						(36,119)						178,955						(25,759)						565,419						(61,878)
Private label collateralized mortgage obligations			478,096						(29,364)						314,332						(34,266)						792,428						(63,630)
Total			$	1,585,495					$	(102,076)					$	901,562					$	(75,307)					$	2,487,057					$	(177,383)

			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)

The amortized cost, approximate fair value and allowance for credit losses of investment securities held to maturity as of December 31, 2022 are summarized as follows:

			December 31, 2022 (1)
(amounts in thousands)			Amortized Cost						Allowance for Credit Losses						Net Carrying Value						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Held to maturity debt securities:
Asset-backed securities			$	361,107					$	—					$	361,107					$	—					$	(4,974)					$	356,133
Agency-guaranteed residential mortgage-backed securities			7,189						—						7,189						—						(563)						$	6,626
Agency-guaranteed commercial mortgage-backed securities			1,928						—						1,928						—						(104)						$	1,824
Agency-guaranteed residential collateralized mortgage obligations			204,495						—						204,495						—						(18,376)						$	186,119
Agency-guaranteed commercial collateralized mortgage obligations			151,711						—						151,711						—						(9,435)						$	142,276
Private label collateralized mortgage obligations			113,829						—						113,829						—						(12,994)						$	100,835
Total held to maturity debt securities			$	840,259					$	—					$	840,259					$	—					$	(46,446)					$	793,813

(1)Accrued interest on HTM debt securities totaled $1.0 million at December 31, 2022, and is included in accrued interest receivable on the consolidated balance sheet.

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, for the period presented:

			Asset-backed securities
(amounts in thousands)			For the Year Ended December 31, 2022
Balance at January 1,			$	—
Credit losses on securities for which credit losses were not previously recorded			578
Balance at December 31,			$	578

Debt Securities, Held-to-Maturity, Credit Quality Indicator

The following table presents the amortized cost of HTM debt securities based on their lowest credit rating available:

			December 31, 2022
(amounts in thousands)			AAA						AA						A																														BBB												Not Rated						Total
Held to maturity debt securities:
Asset-backed securities			$	—					$	—					$	—																													$	—											$	361,107					$	361,107
Agency-guaranteed residential mortgage-backed securities			—						—						—																														—												7,189						$	7,189
Agency-guaranteed commercial mortgage-backed securities			—						—						—																														—												1,928						$	1,928
Agency-guaranteed residential collateralized mortgage obligations			—						—						—																														—												204,495						$	204,495
Agency-guaranteed commercial collateralized mortgage obligations			—						—						—																														—												151,711						$	151,711
Private label collateralized mortgage obligations			63,066						7,109						34,405																														9,249												—						$	113,829
Total held to maturity debt securities			$	63,066					$	7,109					$	34,405																													$	9,249											$	726,430					$	840,259

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- 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 https://asc.fasb.org/extlink&oid=124269663&loc=SL82922900-210455

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+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447

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