DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2026

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers’ financial instruments at March 31, 2026 and December 31, 2025 were as follows:


					Fair Value Measurements at March 31, 2026
(amounts in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	4,798,204	$	4,798,204	$	4,798,204	$	—	$	—
Debt securities, available for sale	1,961,852		1,961,852		—		1,686,146		275,706
Debt securities, held to maturity	663,545		608,462		—		392,958		215,504


Loans held for sale	20,282		20,282		—		1,767		18,515

Total loans and leases receivable, net of allowance for credit losses on loans and leases	17,210,302		16,965,491		—		1,758,685		15,206,806
FHLB, Federal Reserve Bank, and other restricted stock	117,880		117,880		—		117,880		—
Derivatives	10,363		10,363		—		10,310		53

Liabilities:
Deposits	$	21,592,645	$	21,600,454	$	18,172,386	$	3,428,068	$	—



Federal funds purchased	70,000		70,000		—		70,000		—
FHLB advances	1,561,655		1,597,424		—		1,597,424		—
Other borrowings	99,243		96,760		—		96,760		—
Subordinated debt	171,614		167,648		—		167,648		—
Derivatives	14,942		14,942		—		14,942		—


					Fair Value Measurements at December 31, 2025
(amounts in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	4,411,463	$	4,411,463	$	4,411,463	$	—	$	—
Debt securities, available for sale	1,906,535		1,906,535		—		1,668,722		237,813
Debt securities, held to maturity	729,134		683,598		—		426,981		256,617


Loans held for sale	26,102		26,102		—		1,851		24,251

Total loans and leases receivable, net of allowance for credit losses on loans and leases	16,600,758		16,307,551		—		1,612,997		14,694,554
FHLB, Federal Reserve Bank, and other restricted stock	110,411		110,411		—		110,411		—
Derivatives	11,369		11,369		—		11,325		44

Liabilities:
Deposits	$	20,778,704	$	20,806,081	$	17,482,736	$	3,323,345	$	—



FHLB advances	1,325,068		1,327,565		—		1,327,565		—
Other borrowings	99,208		93,834		—		93,834		—
Subordinated debt	281,147		277,105		—		277,105		—
Derivatives	15,799		15,799		—		15,799		—

Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis

For financial assets and liabilities measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2026 and December 31, 2025 were as follows:


	March 31, 2026
	Fair Value Measurements at the End of the Reporting Period Using
(amounts in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Measured at Fair Value on a Recurring Basis:
Assets
Available for sale debt securities:
Asset-backed securities	$	—	$	—	$	275,706	$	275,706

Agency-guaranteed residential mortgage-backed securities	—		490,860		—		490,860

Agency-guaranteed residential collateralized mortgage obligations	—		476,658		—		476,658
Agency-guaranteed commercial collateralized mortgage obligations	—		113,424		—		113,424


Corporate notes	—		246,298		—		246,298
Private label collateralized mortgage obligations	—		358,906		—		358,906



Derivatives	—		10,310		53		10,363
Loans held for sale – fair value option	—		1,767		1,459		3,226
Loans receivable, mortgage finance – fair value option	—		1,758,685		—		1,758,685
Loans receivable, installment – fair value option	—		—		93,086		93,086
Total assets – recurring fair value measurements	$	—	$	3,456,908	$	370,304	$	3,827,212
Liabilities
Derivatives	$	—	$	14,942	$	—	$	14,942
Measured at Fair Value on a Nonrecurring Basis:
Assets


Collateral-dependent loans	$	—	$	—	$	27,494	$	27,494
Other real estate owned	—		—		12,506		12,506
Total assets – nonrecurring fair value measurements	$	—	$	—	$	40,000	$	40,000


	December 31, 2025
	Fair Value Measurements at the End of the Reporting Period Using
(amounts in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Measured at Fair Value on a Recurring Basis:
Assets
Available for sale debt securities:
Asset-backed securities	$	—	$	—	$	237,813	$	237,813

Agency-guaranteed residential mortgage–backed securities	—		413,761		—		413,761

Agency-guaranteed residential collateralized mortgage obligations	—		493,507		—		493,507
Agency-guaranteed commercial collateralized mortgage obligations	—		115,576		—		115,576


Corporate notes	—		285,858		—		285,858
Private label collateralized mortgage obligations	—		360,020		—		360,020



Derivatives	—		11,325		44		11,369
Loans held for sale – fair value option	—		1,851		894		2,745
Loans receivable, mortgage finance – fair value option	—		1,612,997		—		1,612,997
Loans receivable, installment – fair value option	—		—		102,077		102,077
Total assets – recurring fair value measurements	$	—	$	3,294,895	$	340,828	$	3,635,723
Liabilities
Derivatives	$	—	$	15,799	$	—	$	15,799
Measured at Fair Value on a Nonrecurring Basis:
Assets


Collateral-dependent loans	$	—	$	—	$	20,668	$	20,668
Other real estate owned	—		—		12,432		12,432
Total assets – nonrecurring fair value measurements	$	—	$	—	$	33,100	$	33,100

Statement of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in asset-backed securities (Level 3 assets) measured at fair value on a recurring basis for the three months ended March 31, 2026 and 2025 are summarized in the table below:


	Asset-backed securities
(amounts in thousands)	Three Months Ended March 31,
	2026		2025
Balance at January 1	$	237,813	$	13,236
Purchases	67,980		157,827
Principal payments and premium amortization	(33,646)		(3,077)
Increase in allowance for credit losses	—		(66)
Decrease in allowance for credit losses	544		75
Change in fair value recognized in OCI	3,015		480
Balance at March 31	$	275,706	$	168,475

The changes in other installment loans (Level 3 assets) classified as held for sale and held for investment, and measured at fair value on a recurring basis, based on an election made to account for the loans at fair value for the three months ended March 31, 2026 and 2025 are summarized in the table below:


	Other Installment Loans
(amounts in thousands)	Three Months Ended March 31,
	2026		2025
Balance at January 1	$	102,971	$	162,055

Originations	671		194,333
Sales	—		(175,564)
Principal payments	(8,866)		(42,600)
Change in fair value recognized in earnings	(231)		—
Balance at March 31	$	94,545	$	138,224

Summary of Financial Assets and Financial Liabilities Measured at Fair Value on Recurring and Nonrecurring Basis

The following tables summarize financial assets and financial liabilities measured at fair value as of March 31, 2026 and December 31, 2025 on a recurring and nonrecurring basis for which Customers utilized Level 3 inputs to measure fair value. The unobservable Level 3 inputs noted below contain a level of uncertainty that may differ from what is realized in an immediate settlement of the assets. Therefore, Customers may realize a value higher or lower than the current estimated fair value of the assets.

Quantitative Information about Level 3 Fair Value Measurements

(dollars in thousands)

Fair Value
Estimate

Valuation Technique

Unobservable Input

Range
(Weighted Average)

March 31, 2026

Asset-backed securities

275,706

Discounted cash flow

Discount rate

Annualized loss rate

Constant prepayment rate

8% - 9%

(8%)

1% - 13%

(4%)

19% - 20%

(19%)

Other real estate owned

12,506

Collateral appraisal (1)

Liquidation expenses (2)

6% - 7%

(6%)

Quantitative Information about Level 3 Fair Value Measurements

(dollars in thousands)

Fair Value
Estimate

Valuation Technique

Unobservable Input

Range
(Weighted Average)

December 31, 2025

Asset-backed securities

237,813

Discounted cash flow

Discount rate

Annualized loss rate

Constant prepayment rate

8% - 9%

(8%)

3% - 13%

(4%)

17% - 20%

(19%)

Other real estate owned

12,432

Collateral appraisal (1)

Liquidation expenses (2)

6% - 7%

(6%)

(1) Obtained from approved independent appraisers. Appraisals are current and in compliance with credit policy. Customers does not generally discount appraisals. Fair value is also estimated based on sale agreements or letters of intent with third parties.

(2) Appraisals are adjusted by management for liquidation expenses. The range and weighted average of liquidation expense adjustments are presented as a percentage of the appraisal.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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