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Investment Securities (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Gross Unrealized Losses and Fair Value, Aggregated by Investment Category

The amortized cost, approximate fair value and allowance for credit losses of investment securities at fair value as of December 31, 2023 and 2022 are summarized as follows:

			December 31, 2023 (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			$	97,359					$	(483)					$	15					$	(4,262)					$	92,629
Agency-guaranteed residential collateralized mortgage obligations			129,589						—						—						(12,681)						116,908
Collateralized loan obligations			500,109						—						1						(11,018)						489,092
Commercial mortgage-backed securities			125,885						—						—						(4,249)						121,636
Corporate notes			636,880						(3,469)						79						(50,456)						583,034
Private label collateralized mortgage obligations			1,034,841						—						1,201						(62,481)						973,561
Available for sale debt securities			$	2,524,663					$	(3,952)					$	1,296					$	(145,147)					2,376,860
Equity securities (2)																											28,780
Total investment securities, at fair value																											$	2,405,640

			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 (2)																											26,485
Total investment securities, at fair value																											$	2,987,500

(1)Accrued interest on AFS debt securities totaled $14.7 million and $16.7 million at December 31, 2023 and 2022, respectively, and is included in accrued interest receivable on the consolidated balance sheet.

(2)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, 2023 and 2022. No impairments or measurement adjustments have been recorded on the equity securities without a readily determinable fair value since acquisition.

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, 2023 and 2022 were as follows:

			December 31, 2023
			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			$	—					$	—					$	64,029					$	(4,027)					$	64,029					$	(4,027)
Agency-guaranteed residential collateralized mortgage obligations			—						—						116,908						(12,681)						116,908						(12,681)
Collateralized loan obligations			29,241						(392)						438,551						(10,626)						467,792						(11,018)
Commercial mortgage-backed securities			—						—						121,636						(4,249)						121,636						(4,249)
Corporate notes			23,243						(1,147)						424,768						(33,764)						448,011						(34,911)
Private label collateralized mortgage obligations			303,750						(11,243)						613,007						(51,417)						916,757						(62,660)
Total			$	356,234					$	(12,782)					$	1,778,899					$	(116,764)					$	2,135,133					$	(129,546)

			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)

The amortized cost, approximate fair value and allowance for credit losses of investment securities held to maturity as of December 31, 2023 and 2022 are summarized as follows:

			December 31, 2023 (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			$	575,990					$	—					$	575,990					$	202					$	(2,064)					$	574,128
Agency-guaranteed residential mortgage-backed securities			7,039						—						7,039						—						(649)						6,390
Agency-guaranteed commercial mortgage-backed securities			1,850						—						1,850						—						(134)						1,716
Agency-guaranteed residential collateralized mortgage obligations			186,636						—						186,636						—						(19,049)						167,587
Agency-guaranteed commercial collateralized mortgage obligations			146,765						—						146,765						—						(23,178)						123,587
Private label collateralized mortgage obligations			184,890						—						184,890						—						(11,859)						173,031
Total held to maturity debt securities			$	1,103,170					$	—					$	1,103,170					$	202					$	(56,933)					$	1,046,439

			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 $2.7 million and $1.0 million at December 31, 2023 and 2022, respectively, and is included in accrued interest receivable on the consolidated balance sheet.

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, 2023, 2022 and 2021:

			For the Years Ended December 31,
(amounts in thousands)			2023						2022						2021
Gross realized gains			$	1,430					$	3,087					$	31,392
Gross realized losses			(2,004)						(26,251)						—
Net realized gain (loss) on sale of available for sale debt securities			$	(574)					$	(23,164)					$	31,392

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, 2023
(amounts in thousands)			Amortized Cost						Fair Value
Due in one year or less			$	4,000					$	3,851
Due after one year through five years			576,918						532,411
Due after five years through ten years			55,962						46,772
Asset-backed securities			97,359						92,629
Agency-guaranteed residential collateralized mortgage obligations			129,589						116,908
Collateralized loan obligations			500,109						489,092
Commercial mortgage-backed securities			125,885						121,636
Private label collateralized mortgage obligations			1,034,841						973,561
Total available for sale debt securities			$	2,524,663					$	2,376,860

The following table presents HTM debt securities by stated maturity, including debt securities backed by mortgages and other assets with expected maturities that differ from contractual maturities because borrowers have the right to call or prepay and, therefore, are classified separately with no specific maturity date:

			December 31, 2023
(amounts in thousands)			Amortized Cost						Fair Value
Asset-backed securities			$	575,990					$	574,128
Agency-guaranteed residential mortgage-backed securities			7,039						6,390
Agency-guaranteed commercial mortgage-backed securities			1,850						1,716
Agency-guaranteed residential collateralized mortgage obligations			186,636						167,587
Agency-guaranteed commercial collateralized mortgage obligations			146,765						123,587
Private label collateralized mortgage obligations			184,890						173,031
Total held to maturity debt securities			$	1,103,170					$	1,046,439

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 periods presented:

			For the Years Ended December 31,
			2023																		2022
(amounts in thousands)			Asset-backed securities						Corporate notes						Total						Asset-backed securities						Corporate notes						Total
Balance at January 1			$	578					$	—					$	578					$	—					$	—					$	—
Credit losses on securities for which credit losses were not previously recorded			—						3,860						3,860						578						—						578
Decrease in allowance for credit losses on previously impaired securities			(95)						—						(95)						—						—						—
Reduction due to sales			—						(391)						(391)						—						—						—
Balance at December 31			$	483					$	3,469					$	3,952					$	578					$	—					$	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, 2023
(amounts in thousands)			AAA						AA						A																																										Not Rated						Total
Held to maturity debt securities:
Asset-backed securities			$	—					$	—					$	—																																									$	575,990					$	575,990
Agency-guaranteed residential mortgage-backed securities			—						—						—																																										7,039						7,039
Agency-guaranteed commercial mortgage-backed securities			—						—						—																																										1,850						1,850
Agency-guaranteed residential collateralized mortgage obligations			—						—						—																																										186,636						186,636
Agency-guaranteed commercial collateralized mortgage obligations			—						—						—																																										146,765						146,765
Private label collateralized mortgage obligations			66,962						34,976						9,279																																										73,673						184,890
Total held to maturity debt securities			$	66,962					$	34,976					$	9,279																																									$	991,953					$	1,103,170

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
-Topic 326
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479106/326-30-50-9

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+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 326
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479319/326-20-50-5

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Tabular disclosure of realized and unrealized gain (loss) on investment in security.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(7)(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

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-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
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-Publisher FASB
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