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Disclosures about Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers’ financial instruments at December 31, 2023 and 2022 were as follows:

			Carrying Amount						Estimated Fair Value						Fair Value Measurements at December 31, 2023
(amounts in thousands)															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			$	3,846,346					$	3,846,346					$	3,846,346					$	—					$	—
Debt securities, available for sale			2,376,860						2,376,860						—						2,341,911						34,949
Debt securities, held to maturity			1,103,170						1,046,439						—						472,311						574,128
Loans held for sale			340,317						340,317						—						1,215						339,102
Total loans and leases receivable, net of allowance for credit losses on loans and leases			12,726,456						12,513,386						—						897,912						11,615,474
FHLB, Federal Reserve Bank, and other restricted stock			109,548						109,548						—						109,548						—
Derivatives			17,931						17,931						—						17,906						25
Liabilities:
Deposits			$	17,920,236					$	17,922,005					$	14,632,357					$	3,289,648					$	—
FHLB advances			1,203,207						1,188,517						—						1,188,517						—
Other borrowings			123,840						103,674						—						103,674						—
Subordinated debt			182,230						164,233						—						164,233						—
Derivatives			27,110						27,110						—						27,110						—

			Carrying Amount						Estimated Fair Value						Fair Value Measurements at December 31, 2022
(amounts in thousands)															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 Non-recurring Basis

For financial assets and liabilities measured at fair value on a recurring and non-recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2023 and 2022 were as follows:

			December 31, 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 securities:
Asset-backed securities			$	—					$	57,680					$	34,949					$	92,629
Agency-guaranteed residential collateralized mortgage obligations			—						116,908						—						116,908
Collateralized loan obligations			—						489,092						—						489,092
Commercial mortgage-backed securities			—						121,636						—						121,636
Corporate notes			—						583,034						—						583,034
Private label collateralized mortgage obligations			—						973,561						—						973,561
Derivatives			—						17,906						25						17,931
Loans held for sale – fair value option			—						1,215						188,062						189,277
Loans receivable, mortgage warehouse – fair value option			—						897,912						—						897,912
Total assets – recurring fair value measurements			$	—					$	3,258,944					$	223,036					$	3,481,980
Liabilities
Derivatives			$	—					$	27,110					$	—					$	27,110
Measured at Fair Value on a Nonrecurring Basis:
Assets
Collateral-dependent loans			$	—					$	—					$	2,373					$	2,373
Total assets – nonrecurring fair value measurements			$	—					$	—					$	2,373					$	2,373

			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 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 and Liabilities 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 years ended December 31, 2023, 2022 and 2021 are summarized in the table below.

						Asset-backed securities
						For the Years Ended December 31,
(amounts in thousands)						2023						2022						2021
Balance at January 1						$	73,266					$	142,885					$	—
Purchases						—						—						142,885
Principal payments and premium amortization						(40,041)						(64,181)						—
Increase in allowance for credit losses						(1,487)						(1,604)						—
Decrease in allowance for credit losses						1,582						1,026						—
Change in fair value recognized in OCI						1,629						(4,860)						—
Balance at December 31						$	34,949					$	73,266					$	142,885

The changes in other installment loans (Level 3 assets) measured at fair value on a recurring basis, based on an election made to account for the loans at fair value for the year ended December 31, 2023 are summarized in the table below:

						Other Installment Loans
(amounts in thousands)						For the Year Ended December 31, 2023
Balance at January 1						$	—
Originations						218,794
Principal payments						(30,732)
Change in fair value recognized in earnings						—
Balance at December 31						$	188,062

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 December 31, 2023 and 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) (4)

December 31, 2023

Asset-backed securities

$

34,949

Discounted cash flow

Discount rate Annualized loss rate Constant prepayment rate

12% - 14% (13%) 3% - 13% (5%) 11% - 30% (26%)

Quantitative Information about Level 3 Fair Value Measurements

(dollars in thousands)

Fair Value Estimate

Valuation Technique

Unobservable Input

Range (Weighted Average) (4)

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.

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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.

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