The amortized cost, approximate fair value and allowance for credit losses of investment securities at fair value as of June 30, 2025 and December 31, 2024 are summarized as follows:


	June 30, 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	$	230,077	$	(584)	$	—	$	(795)	$	228,698

Agency-guaranteed residential mortgage-backed securities	457,217		—		831		(3,417)		454,631

Agency-guaranteed residential collateralized mortgage obligations	337,857		—		869		(11,388)		327,338
Agency-guaranteed commercial collateralized mortgage obligations	97,755		—		321		(3,345)		94,731
Collateralized loan obligations	10,800		—		—		(248)		10,552

Corporate notes	402,854		(16,772)		1,079		(20,951)		366,210
Private label collateralized mortgage obligations	391,532		—		—		(27,126)		364,406


Available for sale debt securities	$	1,928,092	$	(17,356)	$	3,100	$	(67,270)	1,846,566

Equity securities (2)									30,840
Total investment securities, at fair value									$	1,877,406


	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

(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 June 30, 2025 and December 31, 2024. Impairments of $2.3 million have been recorded on certain equity securities without a readily determinable fair value during the three and six months ended June 30, 2025 and included within other non-interest income on the consolidated statements of income.

Customers’ transactions with unconsolidated VIEs include sales of consumer installment loans and investments in the securities issued by the VIEs. Customers is not the primary beneficiary of the VIEs because Customers has no right to make decisions that will most significantly affect the economic performance of the VIEs. Customers’ continuing involvement with the unconsolidated VIEs is not significant. Customers’ continuing involvement is not considered to be significant where Customers only invests in securities issued by the VIE and was not involved in the design of the VIE or where Customers has transferred financial assets to the VIE for only cash consideration. Customers’ investments in the securities issued by the VIEs are classified as AFS or HTM debt securities on the consolidated balance sheets, and represent Customers’ maximum exposure to loss.

Proceeds from the sale of AFS debt securities were $450.4 million for the three and six months ended June 30, 2025. Proceeds from the sale of AFS debt securities were $218.7 million and $240.7 million for the three and six months ended June 30, 2024, respectively. The following table presents gross realized gains and realized losses from the sale of AFS debt securities for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,				Six Months Ended June 30,
(amounts in thousands)	2025		2024		2025		2024
Gross realized gains	$	3,248	$	176	$	3,248	$	176
Gross realized losses	(5,045)		(895)		(5,045)		(925)
Net realized gains (losses) on sale of available for sale debt securities	$	(1,797)	$	(719)	$	(1,797)	$	(749)

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.


	June 30, 2025
(amounts in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	34,170	$	33,748
Due after one year through five years	304,280		275,437
Due after five years through ten years	59,404		51,932
Due after ten years	5,000		5,093
Asset-backed securities	230,077		228,698
Agency-guaranteed residential mortgage-backed securities	457,217		454,631

Agency-guaranteed residential collateralized mortgage obligations	337,857		327,338
Agency-guaranteed commercial collateralized mortgage obligations	97,755		94,731
Collateralized loan obligations	10,800		10,552

Private label collateralized mortgage obligations	391,532		364,406


Total available for sale debt securities	$	1,928,092	$	1,846,566

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 June 30, 2025 and December 31, 2024 were as follows:


	June 30, 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:
Asset-backed securities	$	—	$	—	$	3,200	$	(216)	$	3,200	$	(216)
Agency-guaranteed residential mortgage-backed securities	308,429		(3,417)		—		—		308,429		(3,417)

Agency-guaranteed residential collateralized mortgage obligations	115,580		(1,540)		96,069		(9,848)		211,649		(11,388)
Agency-guaranteed commercial collateralized mortgage obligations	44,598		(1,926)		30,891		(1,419)		75,489		(3,345)
Collateralized loan obligations	—		—		10,552		(248)		10,552		(248)

Corporate notes	25,766		(1,734)		143,729		(9,544)		169,495		(11,278)
Private label collateralized mortgage obligations	29,701		(299)		334,705		(26,827)		364,406		(27,126)


Total	$	524,074	$	(8,916)	$	619,146	$	(48,102)	$	1,143,220	$	(57,018)


	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)

At June 30, 2025, there were 30 AFS debt securities with unrealized losses in the less-than-twelve-months category and 40 AFS debt securities with unrealized losses in the twelve-months-or-more category. Except for certain AFS debt securities where there was a change in future estimated cash flows as further discussed below, the unrealized losses were principally due to changes in credit spreads that resulted in a negative impact on the respective securities’ fair value and expected to be recovered when market prices recover or at maturity. Customers does not intend to sell any of the 70 securities with unrealized losses, and it is not more likely than not that Customers will be required to sell any of the 70 securities before recovery of the amortized cost basis. At December 31, 2024, there were 117 AFS debt securities in an unrealized loss position.

Customers recorded an allowance for credit losses on certain AFS debt securities where there was a change in future estimated cash flows during the three and six months ended June 30, 2025 and 2024. A discounted cash flow approach is used to determine the amount of the allowance. The cash flows expected to be collected, after considering expected prepayments, are discounted at the original effective interest rate. The amount of the allowance is limited to the difference between the amortized cost basis of the security and its estimated fair value.

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 June 30,
	2025								2024
(amounts in thousands)	Asset-backed securities		Corporate notes		Private label CMOs		Total		Asset-backed securities		Corporate notes		Total
Balance at April 1	$	353	$	12,774	$	—	$	13,127	$	450	$	4,619	$	5,069
Credit losses on securities for which credit losses were not previously recorded	400		128		—		528		—		466		466
Credit losses on previously impaired securities	—		2,189		—		2,189		—		242		242
Decrease in allowance for credit losses on previously impaired securities	(169)		(124)		—		(293)		(83)		(355)		(438)
Reduction due to sales and intent to sell	—		(100)		—		(100)		—		—		—
Allowance for credit losses on PCD debt securities	—		1,905		—		1,905		—		—		—
Balance at June 30	$	584	$	16,772	$	—	$	17,356	$	367	$	4,972	$	5,339


	Six Months Ended June 30,
	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	400		128		—		528		—		631		631
Credit losses on previously impaired securities	16		9,188		—		9,204		—		1,057		1,057
Decrease in allowance for credit losses on previously impaired securities	(194)		(223)		—		(417)		(116)		(185)		(301)
Reduction due to sales and intent to sell	—		(1,361)		(107)		(1,468)		—		—		—
Allowance for credit losses on PCD debt securities	—		1,905		—		1,905		—		—		—
Balance at June 30	$	584	$	16,772	$	—	$	17,356	$	367	$	4,972	$	5,339

Customers acquired $5.1 million of corporate notes at a discount that are PCD debt securities classified as available-for-sale during the three and six months ended June 30, 2025. The reconciliation between the purchase price and the par value of the PCD debt securities was as follows:

Customers has elected to not estimate an ACL on accrued interest receivable on AFS debt securities, as it already has a policy in place to reverse or write-off accrued interest, through interest income, for debt securities in nonaccrual status in a timely manner. At June 30, 2025, there were eleven positions in two corporate note issuers in nonaccrual status. At December 31, 2024, there was one corporate note in nonaccrual status. No accrued interest income was reversed for the three months ended June 30, 2025. Customers recorded a reversal of $4.1 million in accrued interest income for the six months ended June 30, 2025. No accrued interest income was reversed for the three and six months ended June 30, 2024.

At June 30, 2025 and December 31, 2024, Customers Bank had pledged AFS investment securities aggregating $1.2 billion and $1.3 billion in fair value, respectively, as collateral primarily for immediately available liquidity from the FRB and the FHLB. The counterparty does not have the ability to sell or repledge these securities.


	June 30, 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	$	352,781	$	—	$	352,781	$	251	$	(1,597)	$	351,435

Agency-guaranteed residential mortgage-backed securities	6,792		—		6,792		—		(942)		5,850
Agency-guaranteed commercial mortgage-backed securities	1,729		—		1,729		—		(243)		1,486
Agency-guaranteed residential collateralized mortgage obligations	161,284		—		161,284		—		(17,502)		143,782
Agency-guaranteed commercial collateralized mortgage obligations	170,372		—		170,372		—		(25,156)		145,216



Private label collateralized mortgage obligations	160,168		—		160,168		—		(13,502)		146,666

Total held to maturity debt securities	$	853,126	$	—	$	853,126	$	251	$	(58,942)	$	794,435


	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

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:


	June 30, 2025
(amounts in thousands)	Amortized Cost		Fair Value




Asset-backed securities	$	352,781	$	351,435


Agency-guaranteed residential mortgage-backed securities	6,792		5,850
Agency-guaranteed commercial mortgage-backed securities	1,729		1,486
Agency-guaranteed residential collateralized mortgage obligations	161,284		143,782
Agency-guaranteed commercial collateralized mortgage obligations	170,372		145,216
Private label collateralized mortgage obligations	160,168		146,666
Total held to maturity debt securities	$	853,126	$	794,435

Customers recorded no allowance for credit losses on investment securities classified as held to maturity at June 30, 2025 and December 31, 2024. The U.S. government agency securities represent obligations issued by a U.S. government-sponsored enterprise or other federal government agency that are explicitly or implicitly guaranteed by the U.S. federal government and therefore, assumed to have zero credit losses. The private label collateralized mortgage obligations that are highly rated with sufficient overcollateralization are estimated to have no expected credit losses. Customers recorded no allowance for its investments in the asset-backed securities. Customers considered the seniority of its beneficial interests, which include overcollateralization of these asset-backed securities in the estimate of the ACL at June 30, 2025 and December 31, 2024. The unrealized losses on HTM debt securities with no ACL were primarily due to changes in market interest rates that resulted in a negative impact on the respective securities’ fair value and are expected to be recovered when market prices recover or at maturity.

Customers monitors the credit quality of HTM debt securities primarily through credit ratings provided by rating agencies. Investment grade debt securities are rated BBB- or higher by S&P Global Ratings, Baa3 or higher by Moody’s Investors Service or equivalent ratings by other rating agencies, and are generally considered to be of low credit risk. Except for the asset-backed securities and a private label collateralized mortgage obligation, all of the HTM debt securities held by Customers were investment grade or U.S. government agency guaranteed securities that were not rated at June 30, 2025 and December 31, 2024. The asset-backed securities and a private label collateralized mortgage obligation are not rated by rating agencies. Customers monitors the credit quality of these asset-backed securities and a private label collateralized mortgage obligation by evaluating the performance of the sold consumer installment loans and other underlying loans against the overcollateralization available for these securities.


	June 30, 2025
(amounts in thousands)	AAA		AA		Not Rated		Total
Held to maturity debt securities:
Asset-backed securities	$	—	$	—	$	352,781	$	352,781

Agency-guaranteed residential mortgage-backed securities	—		—		6,792		6,792
Agency-guaranteed commercial mortgage-backed securities	—		—		1,729		1,729
Agency-guaranteed residential collateralized mortgage obligations	—		—		161,284		161,284
Agency-guaranteed commercial collateralized mortgage obligations	—		—		170,372		170,372



Private label collateralized mortgage obligations	98,151		9,348		52,669		160,168

Total held to maturity debt securities	$	98,151	$	9,348	$	745,627	$	853,126

Customers has elected to not estimate an ACL on accrued interest receivable on HTM debt securities, as it already has a policy in place to reverse or write-off accrued interest, through interest income, for debt securities in nonaccrual status in a timely manner. At June 30, 2025 and December 31, 2024, there were no HTM debt securities past due under the terms of their agreements or in nonaccrual status.

At June 30, 2025 and December 31, 2024, Customers Bank had pledged HTM investment securities aggregating $391.2 million and $386.4 million in fair value, respectively, as collateral primarily for immediately available liquidity from the FRB and the FHLB. The counterparties do not have the ability to sell or repledge these securities.