The amortized cost, approximate fair value and allowance for credit losses of investment securities at fair value as of June 30, 2026 and December 31, 2025 are summarized as follows:


	June 30, 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	$	300,305	$	—	$	1,187	$	—	$	301,492

Agency-guaranteed residential mortgage-backed securities	754,024		—		2,372		(5,401)		750,995

Agency-guaranteed residential collateralized mortgage obligations	852,422		—		1,582		(9,138)		844,866
Agency-guaranteed commercial collateralized mortgage obligations	116,879		—		150		(5,004)		112,025


Corporate notes	280,206		(29,910)		417		(13,834)		236,879
Private label collateralized mortgage obligations	362,873		—		—		(13,164)		349,709


Available for sale debt securities	$	2,666,709	$	(29,910)	$	5,708	$	(46,541)	2,595,966

Equity securities (2)									30,751
Total investment securities, at fair value									$	2,626,717


	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 June 30, 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 and six months ended June 30, 2026. 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.

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 $29.7 million and $71.0 million for the three and six months ended June 30, 2026, respectively. Proceeds from the sale of AFS debt securities were $450.4 million for the three and six months ended June 30, 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 June 30,				Six Months Ended June 30,
(amounts in thousands)	2026		2025		2026		2025
Gross realized gains	$	208	$	3,248	$	882	$	3,248
Gross realized losses	(54)		(5,045)		(373)		(5,045)
Net realized gains (losses) on sale of available for sale debt securities	$	154	$	(1,797)	$	509	$	(1,797)

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, 2026
(amounts in thousands)	Amortized Cost		Fair Value
Due in one year or less	$	48,687	$	38,561
Due after one year through five years	108,891		88,676
Due after five years through ten years	114,628		101,642
Due after ten years	8,000		8,000
Asset-backed securities	300,305		301,492
Agency-guaranteed residential mortgage-backed securities	754,024		750,995

Agency-guaranteed residential collateralized mortgage obligations	852,422		844,866
Agency-guaranteed commercial collateralized mortgage obligations	116,879		112,025


Private label collateralized mortgage obligations	362,873		349,709


Total available for sale debt securities	$	2,666,709	$	2,595,966

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, 2026 and December 31, 2025 were as follows:



	June 30, 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:

Agency-guaranteed residential mortgage-backed securities	$	401,772	$	(5,401)	$	—	$	—	$	401,772	$	(5,401)

Agency-guaranteed residential collateralized mortgage obligations	301,286		(1,574)		84,221		(7,564)		385,507		(9,138)
Agency-guaranteed commercial collateralized mortgage obligations	23,085		(449)		72,551		(4,555)		95,636		(5,004)


Corporate notes	68,632		(1,118)		44,953		(3,047)		113,585		(4,165)
Private label collateralized mortgage obligations	—		—		349,709		(13,164)		349,709		(13,164)


Total	$	794,775	$	(8,542)	$	551,434	$	(28,330)	$	1,346,209	$	(36,872)


	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 June 30, 2026, there were 50 AFS debt securities with unrealized losses in the less-than-twelve-months category and 35 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 85 securities, and it is not more likely than not that Customers will be required to sell any of the 85 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 and six months ended June 30, 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 tables present 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,
	2026				2025
(amounts in thousands)	Asset-backed securities		Corporate notes		Total		Asset-backed securities		Corporate notes		Private label CMOs		Total
Balance at April 1	$	42	$	24,524	$	24,566	$	353	$	12,774	$	—	$	13,127
Credit losses on securities for which credit losses were not previously recorded	—		202		202		400		128		—		528
Credit losses on previously impaired securities	—		5,316		5,316		—		2,189		—		2,189
Decrease in allowance for credit losses on previously impaired securities	(42)		(132)		(174)		(169)		(124)		—		(293)
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	$	—	$	29,910	$	29,910	$	584	$	16,772	$	—	$	17,356


	Six Months Ended June 30,
	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 securities for which credit losses were not previously recorded	—		202		202		400		128		—		528
Credit losses on previously impaired securities	—		12,109		12,109		16		9,188		—		9,204
Decrease in allowance for credit losses on previously impaired securities	(586)		(1,570)		(2,156)		(194)		(223)		—		(417)
Reduction due to sales and intent to sell	—		(9,050)		(9,050)		—		(1,361)		(107)		(1,468)
Allowance for credit losses on PCD debt securities	—		—		—		—		1,905		—		1,905
Balance at June 30	$	—	$	29,910	$	29,910	$	584	$	16,772	$	—	$	17,356

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. Customers recorded a reversal of $0.6 million in accrued interest income for the three and six months ended June 30, 2026. No accrued interest income was reversed for the three months ended June 30, 2025. Customers recorded a reversal of $4.1 million in accrued interest income for the six months ended June 30, 2025.

At June 30, 2026 and December 31, 2025, Customers Bank had pledged AFS investment securities aggregating $2.0 billion and $1.4 billion in fair value, respectively, 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.


	June 30, 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	$	181,633	$	—	$	181,633	$	3	$	(3,425)	$	178,211

Agency-guaranteed residential mortgage-backed securities	6,622		—		6,622		—		(758)		5,864
Agency-guaranteed commercial mortgage-backed securities	1,645		—		1,645		—		(239)		1,406
Agency-guaranteed residential collateralized mortgage obligations	146,909		—		146,909		—		(13,485)		133,424
Agency-guaranteed commercial collateralized mortgage obligations	190,374		—		190,374		—		(28,243)		162,131



Private label collateralized mortgage obligations	104,411		—		104,411		—		(9,899)		94,512

Total held to maturity debt securities	$	631,594	$	—	$	631,594	$	3	$	(56,049)	$	575,548


	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:


	June 30, 2026
(amounts in thousands)	Amortized Cost		Fair Value




Asset-backed securities	$	181,633	$	178,211


Agency-guaranteed residential mortgage-backed securities	6,622		5,864
Agency-guaranteed commercial mortgage-backed securities	1,645		1,406
Agency-guaranteed residential collateralized mortgage obligations	146,909		133,424
Agency-guaranteed commercial collateralized mortgage obligations	190,374		162,131
Private label collateralized mortgage obligations	104,411		94,512
Total held to maturity debt securities	$	631,594	$	575,548

Customers recorded no allowance for credit losses on investment securities classified as held to maturity at June 30, 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 June 30, 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 June 30, 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:


	June 30, 2026
(amounts in thousands)	AAA		Not Rated		Total
Held to maturity debt securities:
Asset-backed securities	$	—	$	181,633	$	181,633

Agency-guaranteed residential mortgage-backed securities	—		6,622		6,622
Agency-guaranteed commercial mortgage-backed securities	—		1,645		1,645
Agency-guaranteed residential collateralized mortgage obligations	—		146,909		146,909
Agency-guaranteed commercial collateralized mortgage obligations	—		190,374		190,374



Private label collateralized mortgage obligations	104,411		—		104,411

Total held to maturity debt securities	$	104,411	$	527,183	$	631,594

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 June 30, 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 June 30, 2026 and December 31, 2025, Customers Bank had pledged HTM investment securities aggregating $397.3 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.