The amortized cost, approximate fair value and allowance for credit losses of investment securities at fair value as of March 31, 2026 and December 31, 2025 are summarized as follows:


	March 31, 2026 (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	$	273,593	$	(42)	$	2,394	$	(239)	$	275,706

Agency-guaranteed residential mortgage-backed securities	491,169		—		2,057		(2,366)		490,860

Agency-guaranteed residential collateralized mortgage obligations	481,331		—		3,245		(7,918)		476,658
Agency-guaranteed commercial collateralized mortgage obligations	117,586		—		287		(4,449)		113,424


Corporate notes	294,229		(24,524)		430		(23,837)		246,298
Private label collateralized mortgage obligations	370,550		—		—		(11,644)		358,906


Available for sale debt securities	$	2,028,458	$	(24,566)	$	8,413	$	(50,453)	1,961,852

Equity securities (2)									31,300
Total investment securities, at fair value									$	1,993,152


	December 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	$	239,259	$	(586)	$	—	$	(860)	$	237,813

Agency-guaranteed residential mortgage-backed securities	410,648		—		3,238		(125)		413,761

Agency-guaranteed residential collateralized mortgage obligations	496,595		—		4,307		(7,395)		493,507
Agency-guaranteed commercial collateralized mortgage obligations	118,049		—		548		(3,021)		115,576


Corporate notes	340,793		(28,219)		1,091		(27,807)		285,858
Private label collateralized mortgage obligations	376,803		—		—		(16,783)		360,020

Available for sale debt securities	$	1,982,147	$	(28,805)	$	9,184	$	(55,991)	1,906,535

Equity securities (2)									31,111
Total investment securities, at fair value									$	1,937,646

(2)Primarily 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, 2026 and December 31, 2025. No impairments or measurement adjustments have been recorded on equity securities without a readily determinable fair value during the three months ended March 31, 2026 and 2025.

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 $41.3 million for the three months ended March 31, 2026. There was no sale of AFS debt securities for the three months ended March 31, 2025. The following table presents gross realized gains and realized losses from the sale of AFS debt securities for the periods presented:



	Three Months Ended March 31,
(amounts in thousands)	2026		2025
Gross realized gains	$	674	$	—
Gross realized losses	(319)		—
Net realized gains (losses) on sale of available for sale debt securities	$	355	$	—

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, 2026
(amounts in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	73,585	$	61,427
Due after one year through five years	115,513		92,456
Due after five years through ten years	105,131		92,415

Asset-backed securities	273,593		275,706
Agency-guaranteed residential mortgage-backed securities	491,169		490,860

Agency-guaranteed residential collateralized mortgage obligations	481,331		476,658
Agency-guaranteed commercial collateralized mortgage obligations	117,586		113,424


Private label collateralized mortgage obligations	370,550		358,906


Total available for sale debt securities	$	2,028,458	$	1,961,852

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, 2026 and December 31, 2025 were as follows:



	March 31, 2026
	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	$	—	$	—	$	2,204	$	(239)	$	2,204	$	(239)
Agency-guaranteed residential mortgage-backed securities	224,467		(2,309)		3,750		(57)		228,217		(2,366)

Agency-guaranteed residential collateralized mortgage obligations	107,682		(767)		88,077		(7,151)		195,759		(7,918)
Agency-guaranteed commercial collateralized mortgage obligations	20,823		(561)		73,652		(3,888)		94,475		(4,449)


Corporate notes	71,418		(1,332)		86,274		(9,226)		157,692		(10,558)
Private label collateralized mortgage obligations	—		—		358,907		(11,644)		358,907		(11,644)


Total	$	424,390	$	(4,969)	$	612,864	$	(32,205)	$	1,037,254	$	(37,174)


	December 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:
Asset-backed securities	$	—	$	—	$	1,478	$	(176)	$	1,478	$	(176)
Agency-guaranteed residential mortgage-backed securities	121,782		(95)		3,793		(30)		125,575		(125)

Agency-guaranteed residential collateralized mortgage obligations	171,773		(905)		92,018		(6,490)		263,791		(7,395)
Agency-guaranteed commercial collateralized mortgage obligations	21,190		(276)		75,013		(2,745)		96,203		(3,021)


Corporate notes	26,590		(910)		83,414		(9,086)		110,004		(9,996)
Private label collateralized mortgage obligations	—		—		360,020		(16,783)		360,020		(16,783)


Total	$	341,335	$	(2,186)	$	615,736	$	(35,310)	$	957,071	$	(37,496)

At March 31, 2026, there were 33 AFS debt securities with unrealized losses in the less-than-twelve-months category and 43 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 market interest rates and 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 76 securities, and it is not more likely than not that Customers will be required to sell any of the 76 securities before recovery of the amortized cost basis. At December 31, 2025, there were 57 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 months ended March 31, 2026 and 2025. 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 March 31,
	2026				2025
(amounts in thousands)	Asset-backed securities		Corporate notes		Total		Asset-backed securities		Corporate notes		Private label CMOs		Total
Balance at January 1	$	586	$	28,219	$	28,805	$	362	$	7,135	$	107	$	7,604

Credit losses on previously impaired securities	—		7,043		7,043		66		7,007		—		7,073
Decrease in allowance for credit losses on previously impaired securities	(544)		(1,688)		(2,232)		(75)		(146)		—		(221)
Reduction due to sales and intent to sell	—		(9,050)		(9,050)		—		(1,222)		(107)		(1,329)

Balance at March 31	$	42	$	24,524	$	24,566	$	353	$	12,774	$	—	$	13,127

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 non-accrual status in a timely manner. No accrued interest income was reversed for the three months ended March 31, 2026. Customers recorded a reversal of $4.1 million in accrued interest income for the three months ended March 31, 2025.

At March 31, 2026 and December 31, 2025, Customers Bank had pledged AFS investment securities aggregating $1.4 billion in fair value 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.


	March 31, 2026 (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	$	217,790	$	—	$	217,790	$	140	$	(2,426)	$	215,504

Agency-guaranteed residential mortgage-backed securities	6,665		—		6,665		—		(754)		5,911
Agency-guaranteed commercial mortgage-backed securities	1,666		—		1,666		—		(240)		1,426
Agency-guaranteed residential collateralized mortgage obligations	150,633		—		150,633		—		(14,760)		135,873
Agency-guaranteed commercial collateralized mortgage obligations	181,395		—		181,395		—		(26,123)		155,272



Private label collateralized mortgage obligations	105,396		—		105,396		—		(10,920)		94,476

Total held to maturity debt securities	$	663,545	$	—	$	663,545	$	140	$	(55,223)	$	608,462


	December 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	$	258,371	$	—	$	258,371	$	678	$	(2,432)	$	256,617

Agency-guaranteed residential mortgage-backed securities	6,708		—		6,708		—		(718)		5,990
Agency-guaranteed commercial mortgage-backed securities	1,687		—		1,687		—		(238)		1,449
Agency-guaranteed residential collateralized mortgage obligations	153,662		—		153,662		—		(10,629)		143,033
Agency-guaranteed commercial collateralized mortgage obligations	182,272		—		182,272		—		(22,242)		160,030



Private label collateralized mortgage obligations	126,434		—		126,434		—		(9,955)		116,479

Total held to maturity debt securities	$	729,134	$	—	$	729,134	$	678	$	(46,214)	$	683,598

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, 2026
(amounts in thousands)	Amortized Cost		Fair Value




Asset-backed securities	$	217,790	$	215,504


Agency-guaranteed residential mortgage-backed securities	6,665		5,911
Agency-guaranteed commercial mortgage-backed securities	1,666		1,426
Agency-guaranteed residential collateralized mortgage obligations	150,633		135,873
Agency-guaranteed commercial collateralized mortgage obligations	181,395		155,272
Private label collateralized mortgage obligations	105,396		94,476
Total held to maturity debt securities	$	663,545	$	608,462

Customers recorded no allowance for credit losses on investment securities classified as held to maturity at March 31, 2026 and December 31, 2025. 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 March 31, 2026 and December 31, 2025. 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, all of the HTM debt securities held by Customers were investment grade or U.S. government agency guaranteed securities that were not rated at March 31, 2026 and December 31, 2025. The asset-backed securities are not rated by rating agencies. Customers monitors the credit quality of these asset-backed securities by evaluating the performance of the sold consumer installment loans and other underlying loans against the overcollateralization available for these securities.

The following table presents the amortized cost of HTM debt securities based on their lowest credit rating available:


	March 31, 2026
(amounts in thousands)	AAA		Not Rated		Total
Held to maturity debt securities:
Asset-backed securities	$	—	$	217,790	$	217,790

Agency-guaranteed residential mortgage-backed securities	—		6,665		6,665
Agency-guaranteed commercial mortgage-backed securities	—		1,666		1,666
Agency-guaranteed residential collateralized mortgage obligations	—		150,633		150,633
Agency-guaranteed commercial collateralized mortgage obligations	—		181,395		181,395



Private label collateralized mortgage obligations	86,556		18,840		105,396

Total held to maturity debt securities	$	86,556	$	576,989	$	663,545

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 non-accrual status in a timely manner. At March 31, 2026 and December 31, 2025, there were no HTM debt securities past due under the terms of their agreements or in non-accrual status.

At March 31, 2026 and December 31, 2025, Customers Bank had pledged HTM investment securities aggregating $393.0 million and $406.5 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.