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DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended
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Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Estimated Fair Values of Financial Instruments | The estimated fair values of Customers’ financial instruments at June 30, 2024 and December 31, 2023 were as follows:
|  |  |  |  | Fair Value Measurements at June 30, 2024
(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 | $ | 3,048,587 |  |  | $ | 3,048,587 |  |  | $ | 3,048,587 |  |  | $ | — |  |  | $ | — |
Debt securities, available for sale | 2,477,758 |  |  | 2,477,758 |  |  | — |  |  | 2,455,896 |  |  | 21,862 |
Debt securities, held to maturity | 962,799 |  |  | 908,075 |  |  | — |  |  | 462,372 |  |  | 445,703 |
Loans held for sale | 375,724 |  |  | 375,724 |  |  | — |  |  | 2,684 |  |  | 373,040 |
Total loans and leases receivable, net of allowance for credit losses on loans and leases | 13,124,479 |  |  | 12,817,379 |  |  | — |  |  | 1,002,711 |  |  | 11,814,668 |
FHLB, Federal Reserve Bank, and other restricted stock | 92,276 |  |  | 92,276 |  |  | — |  |  | 92,276 |  |  | — |
Derivatives | 20,292 |  |  | 20,292 |  |  | — |  |  | 20,180 |  |  | 112 |
Liabilities: |  |  |  |  |  |  |  |  |
Deposits | $ | 17,678,093 |  |  | $ | 17,672,062 |  |  | $ | 15,482,394 |  |  | $ | 2,189,668 |  |  | $ | — |
FHLB advances | 1,018,349 |  |  | 993,579 |  |  | — |  |  | 993,579 |  |  | — |
Other borrowings | 123,970 |  |  | 102,945 |  |  | — |  |  | 102,945 |  |  | — |
Subordinated debt | 182,370 |  |  | 161,420 |  |  | — |  |  | 161,420 |  |  | — |
Derivatives | 29,108 |  |  | 29,108 |  |  | — |  |  | 29,108 |  |  | — |
|  |  |  |  | Fair Value Measurements at December 31, 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 | $ | 3,846,346 |  |  | $ | 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 |  |  | — |
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 June 30, 2024 and December 31, 2023 were as follows:
| June 30, 2024
| 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 | $ | — |  |  | $ | 25,250 |  |  | $ | 21,862 |  |  | $ | 47,112 |
Agency-guaranteed residential mortgage-backed securities | — |  |  | 199,487 |  |  | — |  |  | 199,487 |
Agency-guaranteed residential collateralized mortgage obligations | — |  |  | 169,512 |  |  | — |  |  | 169,512 |
Agency-guaranteed commercial collateralized mortgage obligations | — |  |  | 81,818 |  |  | — |  |  | 81,818 |
Collateralized loan obligations | — |  |  | 406,033 |  |  | — |  |  | 406,033 |
Commercial mortgage-backed securities | — |  |  | 99,022 |  |  | — |  |  | 99,022 |
Corporate notes | — |  |  | 587,745 |  |  | — |  |  | 587,745 |
Private label collateralized mortgage obligations | — |  |  | 887,029 |  |  | — |  |  | 887,029 |
Derivatives | — |  |  | 20,180 |  |  | 112 |  |  | 20,292 |
Loans held for sale – fair value option | — |  |  | 2,684 |  |  | 247,442 |  |  | 250,126 |
Loans receivable, mortgage finance – fair value option | — |  |  | 1,002,711 |  |  | — |  |  | 1,002,711 |
Total assets – recurring fair value measurements | $ | — |  |  | $ | 3,481,471 |  |  | $ | 269,416 |  |  | $ | 3,750,887 |
Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 29,108 |  |  | $ | — |  |  | $ | 29,108 |
Measured at Fair Value on a Nonrecurring Basis: |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |
Collateral-dependent loans | $ | — |  |  | $ | — |  |  | $ | 18,051 |  |  | $ | 18,051 |
Total assets – nonrecurring fair value measurements | $ | — |  |  | $ | — |  |  | $ | 18,051 |  |  | $ | 18,051 |
| 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 debt 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 finance – 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 |
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 six months ended June 30, 2024 and 2023 are summarized in the tables below.
| Asset-backed securities
(amounts in thousands) | Three Months Ended June 30,
| 2024 |  | 2023
Balance at April 1 | $ | 28,263 |  |  | $ | 63,376 |
Principal payments and premium amortization | (6,834) |  |  | (10,444) |
Increase in allowance for credit losses | — |  |  | (773) |
Decrease in allowance for credit losses | 83 |  |  | — |
Change in fair value recognized in OCI | 350 |  |  | (334) |
Balance at June 30 | $ | 21,862 |  |  | $ | 51,825 |
| Asset-backed securities
(amounts in thousands) | Six Months Ended June 30,
| 2024 |  | 2023
Balance at January 1 | $ | 34,949 |  |  | $ | 73,266 |
Principal payments and premium amortization | (13,948) |  |  | (21,660) |
Increase in allowance for credit losses | — |  |  | (1,046) |
Decrease in allowance for credit losses | 116 |  |  | 61 |
Change in fair value recognized in OCI | 745 |  |  | 1,204 |
Balance at June 30 | $ | 21,862 |  |  | $ | 51,825 |
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 three and six months ended June 30, 2024 and 2023 are summarized in the tables below.
| Other Installment Loans
(amounts in thousands) | Three Months Ended June 30,
| 2024 |  | 2023
Balance at April 1 | $ | 219,015 |  |  | $ | — |
Originations | 245,025 |  |  | — |
Sales | (160,015) |  |  | — |
Principal payments | (56,583) |  |  | — |
Change in fair value recognized in earnings | — |  |  | — |
Balance at June 30 | $ | 247,442 |  |  | $ | — |
| Other Installment Loans
(amounts in thousands) | Six Months Ended June 30,
| 2024 |  | 2023
Balance at January 1 | $ | 188,062 |  |  | $ | — |
Originations | 480,456 |  |  | — |
Sales | (318,230) |  |  | — |
Principal payments | (102,846) |  |  | — |
Change in fair value recognized in earnings | — |  |  | — |
Balance at June 30 | $ | 247,442 |  |  | $ | — |
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 June 30, 2024 and December 31, 2023 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)
June 30, 2024 |  |  |  |  |  |  |
Asset-backed securities | $ | 21,862 |  |  | Discounted cash flow |  | Discount rate Annualized loss rate Constant prepayment rate |  | 10% - 13% (12%) 3% - 17% (6%) 8% - 31% (26%)
| Quantitative Information about Level 3 Fair Value Measurements
(dollars in thousands) | Fair Value Estimate |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)
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%)

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