v3.26.1
INVESTMENT SECURITIES (Tables)
 3 Months Ended
Mar. 31, 2026
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, 2026 and December 31, 2025 are summarized as follows:
 
March 31, 2026 (1)
(amounts in thousands)Amortized CostAllowance for Credit LossesGross Unrealized GainsGross Unrealized LossesFair 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 obligations481,331 — 3,245 (7,918)476,658 
Agency-guaranteed commercial collateralized mortgage obligations117,586 — 287 (4,449)113,424 
Corporate notes294,229 (24,524)430 (23,837)246,298 
Private label collateralized mortgage obligations370,550 — — (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 CostAllowance for Credit LossesGross Unrealized GainsGross Unrealized LossesFair 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 obligations496,595 — 4,307 (7,395)493,507 
Agency-guaranteed commercial collateralized mortgage obligations118,049 — 548 (3,021)115,576 
Corporate notes340,793 (28,219)1,091 (27,807)285,858 
Private label collateralized mortgage obligations376,803 — — (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 
(1)Accrued interest on AFS debt securities totaled $11.2 million and $9.2 million at March 31, 2026 and December 31, 2025, respectively, and is included in accrued interest receivable on the consolidated balance sheet.
(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.
The amortized cost, approximate fair value and allowance for credit losses of investment securities held to maturity as of March 31, 2026 and December 31, 2025 are summarized as follows:
March 31, 2026 (1)
(amounts in thousands)Amortized CostAllowance for Credit LossesNet Carrying ValueGross Unrealized GainsGross Unrealized LossesFair 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 obligations150,633 — 150,633 — (14,760)135,873 
Agency-guaranteed commercial collateralized mortgage obligations181,395 — 181,395 — (26,123)155,272 
Private label collateralized mortgage obligations105,396 — 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 CostAllowance for Credit LossesNet Carrying ValueGross Unrealized GainsGross Unrealized LossesFair 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 obligations153,662 — 153,662 — (10,629)143,033 
Agency-guaranteed commercial collateralized mortgage obligations182,272 — 182,272 — (22,242)160,030 
Private label collateralized mortgage obligations126,434 — 126,434 — (9,955)116,479 
Total held to maturity debt securities$729,134 $— $729,134 $678 $(46,214)$683,598 
(1)Accrued interest on HTM debt securities totaled $1.3 million and $1.5 million at March 31, 2026 and December 31, 2025, 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 periods presented:
Three Months Ended March 31,
(amounts in thousands)20262025
Gross realized gains$674 $— 
Gross realized losses(319)— 
Net realized gains (losses) on sale of available for sale debt securities$355 $— 
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, 2026
(amounts in thousands)Amortized
Cost		Fair
Value
Due in one year or less$73,585 $61,427 
Due after one year through five years115,513 92,456 
Due after five years through ten years105,131 92,415 
Asset-backed securities273,593 275,706 
Agency-guaranteed residential mortgage-backed securities491,169 490,860 
Agency-guaranteed residential collateralized mortgage obligations481,331 476,658 
Agency-guaranteed commercial collateralized mortgage obligations117,586 113,424 
Private label collateralized mortgage obligations370,550 358,906 
Total available for sale debt securities$2,028,458 $1,961,852 
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 securities6,665 5,911 
Agency-guaranteed commercial mortgage-backed securities1,666 1,426 
Agency-guaranteed residential collateralized mortgage obligations150,633 135,873 
Agency-guaranteed commercial collateralized mortgage obligations181,395 155,272 
Private label collateralized mortgage obligations105,396 94,476 
Total held to maturity debt securities$663,545 $608,462 
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value
Gross unrealized losses and fair value of Customers’ AFS debt securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2026 and December 31, 2025 were as follows:
 March 31, 2026
 Less Than 12 Months12 Months or MoreTotal
(amounts in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Available for sale debt securities:
Asset-backed securities$— $— $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 obligations107,682 (767)88,077 (7,151)195,759 (7,918)
Agency-guaranteed commercial collateralized mortgage obligations20,823 (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 $(37,174)
 December 31, 2025
 Less Than 12 Months12 Months or MoreTotal
(amounts in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Available for sale debt securities:
Asset-backed securities$— $— $1,478 $(176)$1,478 $(176)
Agency-guaranteed residential mortgage-backed securities121,782 (95)3,793 (30)125,575 (125)
Agency-guaranteed residential collateralized mortgage obligations171,773 (905)92,018 (6,490)263,791 (7,395)
Agency-guaranteed commercial collateralized mortgage obligations21,190 (276)75,013 (2,745)96,203 (3,021)
Corporate notes26,590 (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)
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,
20262025
(amounts in thousands)Asset-backed securitiesCorporate notesTotalAsset-backed securitiesCorporate 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 $— $13,127 
Debt Securities, Held-to-Maturity, Credit Quality Indicator
The following table presents the amortized cost of HTM debt securities based on their lowest credit rating available:
March 31, 2026
(amounts in thousands)AAANot RatedTotal
Held to maturity debt securities:
Asset-backed securities$— $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 obligations86,556 18,840 105,396 
Total held to maturity debt securities$86,556 $576,989 $663,545