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DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

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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