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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

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