XML 49 R38.htm IDEA: XBRL DOCUMENT
v3.23.3

Disclosures About Fair Value of Financial Instruments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers' financial instruments at September 30, 2023 and December 31, 2022 were as follows:
|  |  |  |  | Fair Value Measurements at September 30, 2023
(amounts in thousands) | Carrying Amount |  | Estimated Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 3,419,974 |  |  | $ | 3,419,974 |  |  | $ | 3,419,974 |  |  | $ | — |  |  | $ | — |
Debt securities, available for sale | 2,746,728 |  |  | 2,746,728 |  |  | — |  |  | 2,704,363 |  |  | 42,365 |
Debt securities, held to maturity | 1,178,370 |  |  | 1,115,576 |  |  | — |  |  | 475,388 |  |  | 640,188 |
Loans held for sale | 150,368 |  |  | 150,368 |  |  | — |  |  | 1,005 |  |  | 149,363 |
Total loans and leases receivable, net of allowance for credit losses on loans and leases | 13,423,901 |  |  | 13,052,491 |  |  | — |  |  | 962,566 |  |  | 12,089,925 |
FHLB, Federal Reserve Bank, and other restricted stock | 126,098 |  |  | 126,098 |  |  | — |  |  | 126,098 |  |  | — |
Derivatives | 28,475 |  |  | 28,475 |  |  | — |  |  | 28,421 |  |  | 54 |
Liabilities: |  |  |  |  |  |  |  |  |
Deposits | $ | 18,195,364 |  |  | $ | 18,171,737 |  |  | $ | 14,201,038 |  |  | $ | 3,970,699 |  |  | $ | — |
FHLB advances | 1,529,839 |  |  | 1,507,761 |  |  | — |  |  | 1,507,761 |  |  | — |
Other borrowings | 123,775 |  |  | 103,388 |  |  | — |  |  | 103,388 |  |  | — |
Subordinated debt | 182,161 |  |  | 160,712 |  |  | — |  |  | 160,712 |  |  | — |
Derivatives | 41,433 |  |  | 41,433 |  |  | — |  |  | 41,433 |  |  | — |
|  |  |  |  | Fair Value Measurements at December 31, 2022
(amounts in thousands) | Carrying Amount |  | Estimated Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 455,806 |  |  | $ | 455,806 |  |  | $ | 455,806 |  |  | $ | — |  |  | $ | — |
Debt securities, available for sale | 2,961,015 |  |  | 2,961,015 |  |  | — |  |  | 2,887,749 |  |  | 73,266 |
Debt securities, held to maturity | 840,259 |  |  | 793,813 |  |  | — |  |  | 437,680 |  |  | 356,133 |
Loans held for sale | 328,312 |  |  | 328,312 |  |  | — |  |  | 322 |  |  | 327,990 |
Total loans and leases receivable, net of allowance for credit losses on loans and leases | 15,335,435 |  |  | 14,890,823 |  |  | — |  |  | 1,323,312 |  |  | 13,567,511 |
FHLB, Federal Reserve Bank, and other restricted stock | 74,196 |  |  | 74,196 |  |  | — |  |  | 74,196 |  |  | — |
Derivatives | 44,435 |  |  | 44,435 |  |  | — |  |  | 44,380 |  |  | 55 |
Liabilities: |  |  |  |  |  |  |  |  |
Deposits | $ | 18,156,953 |  |  | $ | 18,127,338 |  |  | $ | 13,907,087 |  |  | $ | 4,220,251 |  |  | $ | — |
FHLB advances | 800,000 |  |  | 781,113 |  |  | — |  |  | 781,113 |  |  | — |
Other borrowings | 123,580 |  |  | 108,081 |  |  | — |  |  | 108,081 |  |  | — |
Subordinated debt | 181,952 |  |  | 168,441 |  |  | — |  |  | 168,441 |  |  | — |
Derivatives | 42,106 |  |  | 42,106 |  |  | — |  |  | 42,106 |  |  | — |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2023 and December 31, 2022 were as follows:
| September 30, 2023
| Fair Value Measurements at the End of the Reporting Period Using
(amounts in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Measured at Fair Value on a Recurring Basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Available for sale debt securities: |  |  |  |  |  |  |
Asset-backed securities | $ | — |  |  | $ | 62,351 |  |  | $ | 42,365 |  |  | $ | 104,716 |
Agency-guaranteed residential collateralized mortgage obligations | — |  |  | 118,469 |  |  | — |  |  | 118,469 |
Collateralized loan obligations | — |  |  | 815,856 |  |  | — |  |  | 815,856 |
Commercial mortgage-backed securities | — |  |  | 131,188 |  |  | — |  |  | 131,188 |
Corporate notes | — |  |  | 578,897 |  |  | — |  |  | 578,897 |
Private label collateralized mortgage obligations | — |  |  | 997,602 |  |  | — |  |  | 997,602 |
Derivatives | — |  |  | 28,421 |  |  | 54 |  |  | 28,475 |
Loans held for sale – fair value option | — |  |  | 1,005 |  |  | 24,515 |  |  | 25,520 |
Loans receivable, mortgage warehouse – fair value option | — |  |  | 962,566 |  |  | — |  |  | 962,566 |
Total assets – recurring fair value measurements | $ | — |  |  | $ | 3,696,355 |  |  | $ | 66,934 |  |  | $ | 3,763,289 |
Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 41,433 |  |  | $ | — |  |  | $ | 41,433 |
Measured at Fair Value on a Nonrecurring Basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Collateral-dependent loans | $ | — |  |  | $ | — |  |  | $ | 3,515 |  |  | $ | 3,515 |
Total assets – nonrecurring fair value measurements | $ | — |  |  | $ | — |  |  | $ | 3,515 |  |  | $ | 3,515 |
| December 31, 2022
| Fair Value Measurements at the End of the Reporting Period Using
(amounts in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Measured at Fair Value on a Recurring Basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Available for sale debt securities: |  |  |  |  |  |  |
Asset-backed securities | $ | — |  |  | $ | 87,276 |  |  | $ | 73,266 |  |  | $ | 160,542 |
Agency-guaranteed residential collateralized mortgage obligations | — |  |  | 133,864 |  |  | — |  |  | 133,864 |
Collateralized loan obligations | — |  |  | 872,738 |  |  | — |  |  | 872,738 |
Commercial mortgage-backed securities | — |  |  | 136,357 |  |  | — |  |  | 136,357 |
Corporate notes | — |  |  | 595,253 |  |  | — |  |  | 595,253 |
Private label collateralized mortgage obligations | — |  |  | 1,062,261 |  |  | — |  |  | 1,062,261 |
Derivatives | — |  |  | 44,380 |  |  | 55 |  |  | 44,435 |
Loans held for sale – fair value option | — |  |  | 322 |  |  | — |  |  | 322 |
Loans receivable, mortgage warehouse – fair value option | — |  |  | 1,323,312 |  |  | — |  |  | 1,323,312 |
Total assets – recurring fair value measurements | $ | — |  |  | $ | 4,255,763 |  |  | $ | 73,321 |  |  | $ | 4,329,084 |
Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 42,106 |  |  | $ | — |  |  | $ | 42,106 |
Measured at Fair Value on a Nonrecurring Basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Collateral-dependent loans | $ | — |  |  | $ | — |  |  | $ | 4,819 |  |  | $ | 4,819 |
Total assets – nonrecurring fair value measurements | $ | — |  |  | $ | — |  |  | $ | 4,819 |  |  | $ | 4,819 |
Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | The changes in asset-backed securities (Level 3 assets) measured at fair value on a recurring basis for the three and nine months ended September 30, 2023 and 2022 are summarized in the tables below.
| Asset-backed securities
(amounts in thousands) | Three Months Ended September 30,
| 2023 |  | 2022
Balance at July 1 | $ | 51,825 |  |  | $ | 106,919 |
Principal payments and premium amortization | (10,023) |  |  | (16,852) |
Increase in allowance for credit losses | (442) |  |  | — |
Decrease in allowance for credit losses | 250 |  |  | 158 |
Change in fair value recognized in OCI | 755 |  |  | (2,339) |
Balance at September 30 | $ | 42,365 |  |  | $ | 87,886 |
| Asset-backed securities
(amounts in thousands) | Nine Months Ended September 30,
| 2023 |  | 2022
Balance at January 1 | $ | 73,266 |  |  | $ | 142,885 |
Principal payments and premium amortization | (31,683) |  |  | (51,348) |
Increase in allowance for credit losses | (1,488) |  |  | (253) |
Decrease in allowance for credit losses | 311 |  |  | — |
Change in fair value recognized in OCI | 1,959 |  |  | (3,398) |
Balance at September 30 | $ | 42,365 |  |  | $ | 87,886 |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis | The following tables summarize financial assets and financial liabilities measured at fair value as of September 30, 2023 and December 31, 2022 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. The unobservable Level 3 inputs noted below contain a level of uncertainty that may differ from what is realized in an immediate settlement of the assets. Therefore, Customers may realize a value higher or lower than the current estimated fair value of the assets.
| Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands) | Fair Value Estimate |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
September 30, 2023 |  |  |  |  |  |  |
Asset-backed securities | $ | 42,365 |  |  | Discounted cash flow |  | Discount rate Annualized loss rate Constant prepayment rate |  | 10% - 10% (10%) 3% - 6% (5%) 12% - 30% (25%)
| Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands) | Fair Value Estimate |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
December 31, 2022 |  |  |  |  |  |  |
Asset-backed securities | $ | 73,266 |  |  | Discounted cash flow |  | Discount rate Annualized loss rate Constant prepayment rate |  | 9% - 9% (9%) 4% - 5% (5%) 19% - 25% (23%)

X
- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2C -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2C Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482907/825-10-50-11 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration