v3.26.1
INVESTMENT SECURITIES (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2026 and December 31, 2025 are summarized as follows:
June 30, 2026 (1)
(amounts in thousands)Amortized CostAllowance for Credit LossesGross Unrealized GainsGross Unrealized LossesFair 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 obligations852,422 — 1,582 (9,138)844,866 
Agency-guaranteed commercial collateralized mortgage obligations116,879 — 150 (5,004)112,025 
Corporate notes280,206 (29,910)417 (13,834)236,879 
Private label collateralized mortgage obligations362,873 — — (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 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 $10.2 million and $9.2 million at June 30, 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 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.
The amortized cost, approximate fair value and allowance for credit losses of investment securities held to maturity as of June 30, 2026 and December 31, 2025 are summarized as follows:
June 30, 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$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 obligations146,909 — 146,909 — (13,485)133,424 
Agency-guaranteed commercial collateralized mortgage obligations190,374 — 190,374 — (28,243)162,131 
Private label collateralized mortgage obligations104,411 — 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 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 $1.2 million and $1.5 million at June 30, 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 June 30,Six Months Ended June 30,
(amounts in thousands)2026202520262025
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)
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:
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 years108,891 88,676 
Due after five years through ten years114,628 101,642 
Due after ten years8,000 8,000 
Asset-backed securities300,305 301,492 
Agency-guaranteed residential mortgage-backed securities754,024 750,995 
Agency-guaranteed residential collateralized mortgage obligations852,422 844,866 
Agency-guaranteed commercial collateralized mortgage obligations116,879 112,025 
Private label collateralized mortgage obligations362,873 349,709 
Total available for sale debt securities$2,666,709 $2,595,966 
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 securities6,622 5,864 
Agency-guaranteed commercial mortgage-backed securities1,645 1,406 
Agency-guaranteed residential collateralized mortgage obligations146,909 133,424 
Agency-guaranteed commercial collateralized mortgage obligations190,374 162,131 
Private label collateralized mortgage obligations104,411 94,512 
Total held to maturity debt securities$631,594 $575,548 
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 June 30, 2026 and December 31, 2025 were as follows:
June 30, 2026
Less Than 12 Months12 Months or MoreTotal
(amounts in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized 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 obligations301,286 (1,574)84,221 (7,564)385,507 (9,138)
Agency-guaranteed commercial collateralized mortgage obligations23,085 (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 $(36,872)
December 31, 2025
Less Than 12 Months12 Months or MoreTotal
(amounts in thousands)Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized Losses
Available for sale debt securities:
Asset-backed securities$— $— $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 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,
20262025
(amounts in thousands)Asset-backed securitiesCorporate notesTotalAsset-backed securitiesCorporate 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,
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 $7,604 
Credit losses on securities for which credit losses were not previously recorded— 202 202 400 128 — 528 
Credit losses on previously impaired securities— 12,109 12,109 16 9,188 — 9,204 
Decrease in allowance for credit losses on previously impaired securities(586)(1,570)(2,156)(194)(223)— (417)
Reduction due to sales and intent to sell
— (9,050)(9,050)— (1,361)(107)(1,468)
Allowance for credit losses on PCD debt securities
— — — — 1,905 — 1,905 
Balance at June 30$— $29,910 $29,910 $584 $16,772 $— $17,356 
Debt Securities, Held-to-Maturity, Credit Quality Indicator
The following table presents the amortized cost of HTM debt securities based on their lowest credit rating available:
June 30, 2026
(amounts in thousands)AAANot RatedTotal
Held to maturity debt securities:
Asset-backed securities$— $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 obligations104,411 — 104,411 
Total held to maturity debt securities$104,411 $527,183 $631,594