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DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers’ financial instruments at September 30, 2024 and December 31, 2023 were as follows:

															Fair Value Measurements at September 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			$	3,088,022					$	3,088,022					$	3,088,022					$	—					$	—
Debt securities, available for sale			2,377,733						2,377,733						—						2,360,908						16,825
Debt securities, held to maturity			1,064,437						1,027,514						—						487,238						540,276
Loans held for sale			275,420						275,420						—						2,523						272,897
Total loans and leases receivable, net of allowance for credit losses on loans and leases			13,644,538						13,511,102						—						1,250,413						12,260,689
FHLB, Federal Reserve Bank, and other restricted stock			95,035						95,035						—						95,035						—
Derivatives			15,546						15,546						—						15,474						72
Liabilities:
Deposits			$	18,069,389					$	18,096,656					$	15,638,305					$	2,458,351					$	—
FHLB advances			1,117,229						1,121,074						—						1,121,074						—
Other borrowings			99,033						78,000						—						78,000						—
Subordinated debt			182,439						157,542						—						157,542						—
Derivatives			21,486						21,486						—						21,486						—

															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 September 30, 2024 and December 31, 2023 were as follows:

			September 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			$	—					$	20,845					$	16,825					$	37,670
Agency-guaranteed residential mortgage-backed securities			—						221,178						—						221,178
Agency-guaranteed residential collateralized mortgage obligations			—						194,873						—						194,873
Agency-guaranteed commercial collateralized mortgage obligations			—						96,943						—						96,943
Collateralized loan obligations			—						310,429						—						310,429
Commercial mortgage-backed securities			—						77,074						—						77,074
Corporate notes			—						594,971						—						594,971
Private label collateralized mortgage obligations			—						844,595						—						844,595
Derivatives			—						15,474						72						15,546
Loans held for sale – fair value option			—						2,523						217,098						219,621
Loans receivable, mortgage finance – fair value option			—						1,250,413						—						1,250,413
Total assets – recurring fair value measurements			$	—					$	3,629,318					$	233,995					$	3,863,313
Liabilities
Derivatives			$	—					$	21,486					$	—					$	21,486
Measured at Fair Value on a Nonrecurring Basis:
Assets
Collateral-dependent loans			$	—					$	—					$	18,003					$	18,003
Total assets – nonrecurring fair value measurements			$	—					$	—					$	18,003					$	18,003

			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 nine months ended September 30, 2024 and 2023 are summarized in the tables below.

			Asset-backed securities
(amounts in thousands)			Three Months Ended September 30,
			2024						2023
Balance at July 1			$	21,862					$	51,825
Principal payments and premium amortization			(5,704)						(10,023)
Increase in allowance for credit losses			(24)						(442)
Decrease in allowance for credit losses			84						250
Change in fair value recognized in OCI			607						755
Balance at September 30			$	16,825					$	42,365

			Asset-backed securities
(amounts in thousands)			Nine Months Ended September 30,
			2024						2023
Balance at January 1			$	34,949					$	73,266
Principal payments and premium amortization			(19,652)						(31,683)
Increase in allowance for credit losses			(24)						(1,488)
Decrease in allowance for credit losses			200						311
Change in fair value recognized in OCI			1,352						1,959
Balance at September 30			$	16,825					$	42,365

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 nine months ended September 30, 2024 and 2023 are summarized in the tables below.

			Other Installment Loans
(amounts in thousands)			Three Months Ended September 30,
			2024						2023
Balance at July 1			$	247,442					$	—
Originations			223,625						—
Sales			(200,041)						—
Principal payments			(53,928)						—
Change in fair value recognized in earnings			—						—
Balance at September 30			$	217,098					$	—

			Other Installment Loans
(amounts in thousands)			Nine Months Ended September 30,
			2024						2023
Balance at January 1			$	188,062					$	—
Originations			704,081						—
Sales			(518,271)						—
Principal payments			(156,774)						—
Change in fair value recognized in earnings			—						—
Balance at September 30			$	217,098					$	—

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, 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)

September 30, 2024

Asset-backed securities

$

16,825

Discounted cash flow

Discount rate Annualized loss rate Constant prepayment rate

9% - 10% (9%) 3% - 13% (5%) 19% - 20% (20%)

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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