Customers is involved with financial instruments and other commitments with off-balance sheet risks. Financial instruments with off-balance sheet risks are incurred in the normal course of business to meet the financing needs of the Bank’s customers. These financial instruments include commitments to extend credit, including unused portions of lines of credit, and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized on the balance sheet.

As of March 31, 2026 and December 31, 2025, the following off-balance sheet commitments, financial instruments and other arrangements were outstanding:


(amounts in thousands)	March 31, 2026		December 31, 2025
Commitments to fund loans and leases	$	305,434	$	190,268
Unfunded commitments to fund mortgage finance loans	1,294,154		1,379,938
Unfunded commitments under lines of credit and credit cards	4,059,209		3,912,704
Letters of credit	46,246		43,345
Other unused and unfunded commitments	33,526		37,308

ACL on lending related commitments is a liability account, calculated in accordance with ASC 326, Financial Instruments - Credit Losses (“ASC 326”), representing expected credit losses over the contractual period for which Customers is exposed to credit risk resulting from a contractual obligation to extend credit. Customers recognized a provision for credit losses of $0.4 million for the three months ended March 31, 2026 resulting in an ACL of $9.4 million as of March 31, 2026. Customers recognized a provision for credit losses of $1.2 million for the three months ended March 31, 2025 resulting in an ACL of $6.1 million as of March 31, 2025. Customers had an ACL on unfunded lending-related commitments of $9.0 million as of December 31, 2025. The ACL on lending-related commitments is recorded in accrued interest payable and other liabilities in the consolidated balance sheet and the credit loss expense is recorded as a provision for credit losses within other non-interest expense in the consolidated statement of income.