XML 75 R33.htm IDEA: XBRL DOCUMENT
v3.25.1

INVESTMENT SECURITIES (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract] |
Summary of Amortized Cost and Approximate Fair Value of Investment Securities and Held-to-Maturity Securities | The amortized cost, approximate fair value and allowance for credit losses of investment securities at fair value as of March 31, 2025 and December 31, 2024 are summarized as follows:
| March 31, 2025 (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 | $ | 169,570 |  |  | $ | (353) |  |  | $ | — |  |  | $ | (742) |  |  | $ | 168,475 |
Agency-guaranteed residential mortgage-backed securities | 322,646 |  |  | — |  |  | 1,349 |  |  | (1,111) |  |  | 322,884 |
Agency-guaranteed residential collateralized mortgage obligations | 236,386 |  |  | — |  |  | 2,037 |  |  | (10,080) |  |  | 228,343 |
Agency-guaranteed commercial collateralized mortgage obligations | 95,734 |  |  | — |  |  | 269 |  |  | (2,256) |  |  | 93,747 |
Collateralized loan obligations | 187,703 |  |  | — |  |  | 66 |  |  | (290) |  |  | 187,479 |
Commercial mortgage-backed securities | 76,008 |  |  | — |  |  | — |  |  | — |  |  | 76,008 |
Corporate notes | 518,545 |  |  | (12,774) |  |  | 914 |  |  | (24,324) |  |  | 482,361 |
Private label collateralized mortgage obligations | 488,626 |  |  | — |  |  | — |  |  | (23,486) |  |  | 465,140 |
Available for sale debt securities | $ | 2,095,218 |  |  | $ | (13,127) |  |  | $ | 4,635 |  |  | $ | (62,289) |  |  | 2,024,437 |
Equity securities (2) |  |  |  |  |  |  |  |  | 33,118 |
Total investment securities, at fair value |  |  |  |  |  |  |  |  | $ | 2,057,555 |
| December 31, 2024 (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 | $ | 14,820 |  |  | $ | (362) |  |  | $ | — |  |  | $ | (1,222) |  |  | $ | 13,236 |
Agency-guaranteed residential mortgage-backed securities | 330,637 |  |  | — |  |  | 146 |  |  | (3,745) |  |  | 327,038 |
Agency-guaranteed residential collateralized mortgage obligations | 242,858 |  |  | — |  |  | — |  |  | (16,112) |  |  | 226,746 |
Agency-guaranteed commercial collateralized mortgage obligations | 95,850 |  |  | — |  |  | 44 |  |  | (2,819) |  |  | 93,075 |
Collateralized loan obligations | 257,500 |  |  | — |  |  | 100 |  |  | (2,193) |  |  | 255,407 |
Commercial mortgage-backed securities | 78,707 |  |  | — |  |  | — |  |  | (999) |  |  | 77,708 |
Corporate notes | 564,524 |  |  | (7,135) |  |  | 347 |  |  | (41,406) |  |  | 516,330 |
Private label collateralized mortgage obligations | 502,985 |  |  | (107) |  |  | 95 |  |  | (27,075) |  |  | 475,898 |
Available for sale debt securities | $ | 2,087,881 |  |  | $ | (7,604) |  |  | $ | 732 |  |  | $ | (95,571) |  |  | 1,985,438 |
Equity securities (2) |  |  |  |  |  |  |  |  | 34,256 |
Total investment securities, at fair value |  |  |  |  |  |  |  |  | $ | 2,019,694 |
(1)Accrued interest on AFS debt securities totaled $12.4 million and $15.0 million at March 31, 2025 and December 31, 2024, respectively, and is included in accrued interest receivable on the consolidated balance sheet. (2)Includes perpetual preferred stock issued by domestic banks and domestic bank holding companies and equity securities issued by fintech companies, without a readily determinable fair value, and CRA-qualified mutual fund shares at March 31, 2025 and December 31, 2024. No impairments or measurement adjustments have been recorded on the equity securities without a readily determinable fair value since acquisition. The amortized cost, approximate fair value and allowance for credit losses of investment securities held to maturity as of March 31, 2025 and December 31, 2024 are summarized as follows:
| March 31, 2025 (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 | $ | 409,904 |  |  | $ | — |  |  | $ | 409,904 |  |  | $ | 397 |  |  | $ | (1,631) |  |  | $ | 408,670 |
Agency-guaranteed residential mortgage-backed securities | 6,833 |  |  | — |  |  | 6,833 |  |  | — |  |  | (822) |  |  | 6,011 |
Agency-guaranteed commercial mortgage-backed securities | 1,750 |  |  | — |  |  | 1,750 |  |  | — |  |  | (262) |  |  | 1,488 |
Agency-guaranteed residential collateralized mortgage obligations | 165,521 |  |  | — |  |  | 165,521 |  |  | — |  |  | (16,848) |  |  | 148,673 |
Agency-guaranteed commercial collateralized mortgage obligations | 171,307 |  |  | — |  |  | 171,307 |  |  | — |  |  | (21,702) |  |  | 149,605 |
Private label collateralized mortgage obligations | 182,846 |  |  | — |  |  | 182,846 |  |  | 372 |  |  | (11,127) |  |  | 172,091 |
Total held to maturity debt securities | $ | 938,161 |  |  | $ | — |  |  | $ | 938,161 |  |  | $ | 769 |  |  | $ | (52,392) |  |  | $ | 886,538 |
| December 31, 2024 (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 | $ | 471,996 |  |  | $ | — |  |  | $ | 471,996 |  |  | $ | 1,775 |  |  | $ | (401) |  |  | $ | 473,370 |
Agency-guaranteed residential mortgage-backed securities | 6,880 |  |  | — |  |  | 6,880 |  |  | — |  |  | (940) |  |  | 5,940 |
Agency-guaranteed commercial mortgage-backed securities | 1,770 |  |  | — |  |  | 1,770 |  |  | — |  |  | (146) |  |  | 1,624 |
Agency-guaranteed residential collateralized mortgage obligations | 169,754 |  |  | — |  |  | 169,754 |  |  | — |  |  | (21,984) |  |  | 147,770 |
Agency-guaranteed commercial collateralized mortgage obligations | 158,320 |  |  | — |  |  | 158,320 |  |  | — |  |  | (22,689) |  |  | 135,631 |
Private label collateralized mortgage obligations | 183,217 |  |  | — |  |  | 183,217 |  |  | 574 |  |  | (13,449) |  |  | 170,342 |
Total held to maturity debt securities | $ | 991,937 |  |  | $ | — |  |  | $ | 991,937 |  |  | $ | 2,349 |  |  | $ | (59,609) |  |  | $ | 934,677 |
(1)Accrued interest on HTM debt securities totaled $2.2 million and $2.4 million at March 31, 2025 and December 31, 2024, 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 three months ended March 31, 2025 and 2024:
| Three Months Ended March 31, |  |
(amounts in thousands) | 2025 |  | 2024 |  |  |  |
Gross realized gains | $ | — |  |  | $ | — |  |  |  |  |
Gross realized losses | — |  |  | (30) |  |  |  |  |
Net realized gains (losses) on sale of available for sale debt securities | $ | — |  |  | $ | (30) |  |  |  |  |
Summary of Available-for-Sale and Held-to-Maturity Debt 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.
| March 31, 2025
(amounts in thousands) | Amortized Cost |  | Fair Value
Due in one year or less | $ | 20,195 |  |  | $ | 19,816 |
Due after one year through five years | 422,613 |  |  | 391,589 |
Due after five years through ten years | 68,214 |  |  | 65,011 |
Due after ten years | 7,523 |  |  | 5,945 |
Asset-backed securities | 169,570 |  |  | 168,475 |
Agency-guaranteed residential mortgage-backed securities | 322,646 |  |  | 322,884 |
Agency-guaranteed residential collateralized mortgage obligations | 236,386 |  |  | 228,343 |
Agency-guaranteed commercial collateralized mortgage obligations | 95,734 |  |  | 93,747 |
Collateralized loan obligations | 187,703 |  |  | 187,479 |
Commercial mortgage-backed securities | 76,008 |  |  | 76,008 |
Private label collateralized mortgage obligations | 488,626 |  |  | 465,140 |
Total available for sale debt securities | $ | 2,095,218 |  |  | $ | 2,024,437 |
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:
| March 31, 2025
(amounts in thousands) | Amortized Cost |  | Fair Value
Asset-backed securities | $ | 409,904 |  |  | $ | 408,670 |
Agency-guaranteed residential mortgage-backed securities | 6,833 |  |  | 6,011 |
Agency-guaranteed commercial mortgage-backed securities | 1,750 |  |  | 1,488 |
Agency-guaranteed residential collateralized mortgage obligations | 165,521 |  |  | 148,673 |
Agency-guaranteed commercial collateralized mortgage obligations | 171,307 |  |  | 149,605 |
Private label collateralized mortgage obligations | 182,846 |  |  | 172,091 |
Total held to maturity debt securities | $ | 938,161 |  |  | $ | 886,538 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | 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 March 31, 2025 and December 31, 2024 were as follows:
| March 31, 2025
| 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: |  |  |  |  |  |  |  |  |  |  |
Agency-guaranteed residential mortgage-backed securities | $ | 191,812 |  |  | $ | (1,111) |  |  | $ | — |  |  | $ | — |  |  | $ | 191,812 |  |  | $ | (1,111) |
Agency-guaranteed residential collateralized mortgage obligations | — |  |  | — |  |  | 99,860 |  |  | (10,080) |  |  | 99,860 |  |  | (10,080) |
Agency-guaranteed commercial collateralized mortgage obligations | 59,818 |  |  | (1,571) |  |  | 16,881 |  |  | (685) |  |  | 76,699 |  |  | (2,256) |
Collateralized loan obligations | — |  |  | — |  |  | 131,203 |  |  | (290) |  |  | 131,203 |  |  | (290) |
Corporate notes | 68,532 |  |  | (716) |  |  | 266,678 |  |  | (12,087) |  |  | 335,210 |  |  | (12,803) |
Private label collateralized mortgage obligations | 89,058 |  |  | (261) |  |  | 385,532 |  |  | (23,225) |  |  | 474,590 |  |  | (23,486) |
Total | $ | 409,220 |  |  | $ | (3,659) |  |  | $ | 900,154 |  |  | $ | (46,367) |  |  | $ | 1,309,374 |  |  | $ | (50,026) |
| December 31, 2024
| 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: |  |  |  |  |  |  |  |  |  |  |
Agency-guaranteed residential mortgage-backed securities | $ | 266,568 |  |  | $ | (3,745) |  |  | $ | — |  |  | $ | — |  |  | $ | 266,568 |  |  | $ | (3,745) |
Agency-guaranteed residential collateralized mortgage obligations | 126,602 |  |  | (2,717) |  |  | 100,144 |  |  | (13,395) |  |  | 226,746 |  |  | (16,112) |
Agency-guaranteed commercial collateralized mortgage obligations | 85,902 |  |  | (2,819) |  |  | — |  |  | — |  |  | 85,902 |  |  | (2,819) |
Collateralized loan obligations | 35,710 |  |  | (265) |  |  | 205,639 |  |  | (1,928) |  |  | 241,349 |  |  | (2,193) |
Commercial mortgage-backed securities | — |  |  | — |  |  | 77,708 |  |  | (999) |  |  | 77,708 |  |  | (999) |
Corporate notes | 74,373 |  |  | (976) |  |  | 239,509 |  |  | (16,064) |  |  | 313,882 |  |  | (17,040) |
Private label collateralized mortgage obligations | 29,419 |  |  | (581) |  |  | 351,040 |  |  | (24,552) |  |  | 380,459 |  |  | (25,133) |
Total | $ | 618,574 |  |  | $ | (11,103) |  |  | $ | 974,040 |  |  | $ | (56,938) |  |  | $ | 1,592,614 |  |  | $ | (68,041) |
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:
| Three Months Ended March 31, |  |  |  |  |  |  |
| 2025 |  | 2024 |  |  |  |  |
(amounts in thousands) | Asset-backed securities |  | Corporate notes |  | Private label CMOs |  | Total |  | Asset-backed securities |  | Corporate notes |  | Total |  |  |  |  |  |  |
Balance at January 1 | $ | 362 |  |  | $ | 7,135 |  |  | $ | 107 |  |  | $ | 7,604 |  |  | $ | 483 |  |  | $ | 3,469 |  |  | $ | 3,952 |  |  |  |  |  |  |  |
Credit losses on securities for which credit losses were not previously recorded | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 502 |  |  | 502 |  |  |  |  |  |  |  |
Credit losses on previously impaired securities | 66 |  |  | 7,007 |  |  | — |  |  | 7,073 |  |  | — |  |  | 648 |  |  | 648 |  |  |  |  |  |  |  |
Decrease in allowance for credit losses on previously impaired securities | (75) |  |  | (146) |  |  | — |  |  | (221) |  |  | (33) |  |  | — |  |  | (33) |  |  |  |  |  |  |  |
Reduction due to sales and intent to sell | — |  |  | (1,222) |  |  | (107) |  |  | (1,329) |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |
Balance at March 31 | $ | 353 |  |  | $ | 12,774 |  |  | $ | — |  |  | $ | 13,127 |  |  | $ | 450 |  |  | $ | 4,619 |  |  | $ | 5,069 |  |  |  |  |  |  |  |
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:
| March 31, 2025
(amounts in thousands) | AAA |  | AA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Not Rated |  | Total
Held to maturity debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed securities | $ | — |  |  | $ | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 409,904 |  |  | $ | 409,904 |
Agency-guaranteed residential mortgage-backed securities | — |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,833 |  |  | 6,833 |
Agency-guaranteed commercial mortgage-backed securities | — |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,750 |  |  | 1,750 |
Agency-guaranteed residential collateralized mortgage obligations | — |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 165,521 |  |  | 165,521 |
Agency-guaranteed commercial collateralized mortgage obligations | — |  |  | — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 171,307 |  |  | 171,307 |
Private label collateralized mortgage obligations | 82,060 |  |  | 26,323 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 74,463 |  |  | 182,846 |
Total held to maturity debt securities | $ | 82,060 |  |  | $ | 26,323 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 829,778 |  |  | $ | 938,161 |

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 + Details
Name: | us-gaap_DebtSecuritiesAvailableForSaleAllowanceForCreditLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of fair value of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale), in unrealized loss position, without allowance for credit loss. Includes beneficial interest in securitized financial asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 55 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479081/326-30-55-8 Reference 2: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-6 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479106/326-30-50-4 + Details
Name: | us-gaap_DebtSecuritiesAvailableForSaleUnrealizedLossPositionFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of credit quality indicator for investment in debt security measured at amortized cost (held-to-maturity). + 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 + Details
Name: | us-gaap_DebtSecuritiesHeldToMaturityCreditQualityIndicatorTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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(9)(a)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2 Reference 2: 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 + Details
Name: | us-gaap_GainLossOnInvestmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrealized gains and losses on investments. + References No definition available. + Details
Name: | us-gaap_UnrealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration