XML 59 R32.htm IDEA: XBRL DOCUMENT v3.25.2
INVESTMENT SECURITIES (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2025 and December 31, 2024 are summarized as follows:
 
June 30, 2025 (1)
(amounts in thousands)Amortized CostAllowance for Credit LossesGross Unrealized GainsGross Unrealized LossesFair 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 obligations337,857 — 869 (11,388)327,338 
Agency-guaranteed commercial collateralized mortgage obligations97,755 — 321 (3,345)94,731 
Collateralized loan obligations10,800 — — (248)10,552 
Corporate notes402,854 (16,772)1,079 (20,951)366,210 
Private label collateralized mortgage obligations391,532 — — (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 CostAllowance for Credit LossesGross Unrealized GainsGross Unrealized LossesFair 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 obligations242,858 — — (16,112)226,746 
Agency-guaranteed commercial collateralized mortgage obligations95,850 — 44 (2,819)93,075 
Collateralized loan obligations257,500 — 100 (2,193)255,407 
Commercial mortgage-backed securities78,707 — — (999)77,708 
Corporate notes564,524 (7,135)347 (41,406)516,330 
Private label collateralized mortgage obligations502,985 (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 $11.5 million and $15.0 million at June 30, 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 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.
The amortized cost, approximate fair value and allowance for credit losses of investment securities held to maturity as of June 30, 2025 and December 31, 2024 are summarized as follows:
June 30, 2025 (1)
(amounts in thousands)Amortized CostAllowance for Credit LossesNet Carrying ValueGross Unrealized GainsGross Unrealized LossesFair 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 obligations161,284 — 161,284 — (17,502)143,782 
Agency-guaranteed commercial collateralized mortgage obligations170,372 — 170,372 — (25,156)145,216 
Private label collateralized mortgage obligations160,168 — 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 CostAllowance for Credit LossesNet Carrying ValueGross Unrealized GainsGross Unrealized LossesFair 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 obligations169,754 — 169,754 — (21,984)147,770 
Agency-guaranteed commercial collateralized mortgage obligations158,320 — 158,320 — (22,689)135,631 
Private label collateralized mortgage obligations183,217 — 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 $1.9 million and $2.4 million at June 30, 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 and six months ended June 30, 2025 and 2024:
Three Months Ended June 30,Six Months Ended June 30,
(amounts in thousands)2025202420252024
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)
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.
 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 years304,280 275,437 
Due after five years through ten years59,404 51,932 
Due after ten years5,000 5,093 
Asset-backed securities230,077 228,698 
Agency-guaranteed residential mortgage-backed securities457,217 454,631 
Agency-guaranteed residential collateralized mortgage obligations337,857 327,338 
Agency-guaranteed commercial collateralized mortgage obligations97,755 94,731 
Collateralized loan obligations10,800 10,552 
Private label collateralized mortgage obligations391,532 364,406 
Total available for sale debt securities$1,928,092 $1,846,566 
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 securities6,792 5,850 
Agency-guaranteed commercial mortgage-backed securities1,729 1,486 
Agency-guaranteed residential collateralized mortgage obligations161,284 143,782 
Agency-guaranteed commercial collateralized mortgage obligations170,372 145,216 
Private label collateralized mortgage obligations160,168 146,666 
Total held to maturity debt securities$853,126 $794,435 
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
Gross unrealized losses and fair value of Customers’ AFS debt securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2025 and December 31, 2024 were as follows:
 June 30, 2025
 Less Than 12 Months12 Months or MoreTotal
(amounts in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Available for sale debt securities:
Asset-backed securities$— $— $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 obligations115,580 (1,540)96,069 (9,848)211,649 (11,388)
Agency-guaranteed commercial collateralized mortgage obligations44,598 (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 obligations29,701 (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 Months12 Months or MoreTotal
(amounts in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized 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 obligations126,602 (2,717)100,144 (13,395)226,746 (16,112)
Agency-guaranteed commercial collateralized mortgage obligations85,902 (2,819)— — 85,902 (2,819)
Collateralized loan obligations35,710 (265)205,639 (1,928)241,349 (2,193)
Commercial mortgage-backed securities— — 77,708 (999)77,708 (999)
Corporate notes74,373 (976)239,509 (16,064)313,882 (17,040)
Private label collateralized mortgage obligations29,419 (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 June 30,
20252024
(amounts in thousands)Asset-backed securitiesCorporate notes
Private label CMOs
TotalAsset-backed securitiesCorporate notesTotal
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 recorded400 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 $5,339 
Debt Securities, Held-to-Maturity, Credit Quality Indicator
The following table presents the amortized cost of HTM debt securities based on their lowest credit rating available:
June 30, 2025
(amounts in thousands)AAAAANot RatedTotal
Held to maturity debt securities:
Asset-backed securities$— $— $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 obligations98,151 9,348 52,669 160,168 
Total held to maturity debt securities$98,151 $9,348 $745,627 $853,126 
Financing Receivable, Purchased With Credit Deterioration The reconciliation between the purchase price and the par value of the PCD debt securities was as follows:
(amounts in thousands)
Par value$5,100 
Unamortized discount(1,165)
Allowance for credit losses(1,905)
Purchase price$2,030 
The reconciliation between the purchase price and the unpaid principal balance was as follows:
(amounts in thousands)
Par value$32,050 
Unamortized discount(16,217)
Allowance for credit losses(1,000)
Purchase price$14,833