DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2026

Estimated Fair Values of Financial Instruments

The estimated fair values of Customers’ financial instruments at June 30, 2026 and December 31, 2025 were as follows:


					Fair Value Measurements at June 30, 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	$	4,178,852	$	4,178,852	$	4,178,852	$	—	$	—
Debt securities, available for sale	2,595,966		2,595,966		—		2,294,474		301,492
Debt securities, held to maturity	631,594		575,548		—		397,337		178,211


Loans held for sale	58,611		58,611		—		2,528		56,083

Total loans and leases receivable, net of allowance for credit losses on loans and leases	17,792,583		17,656,866		—		1,654,795		16,002,071
FHLB, Federal Reserve Bank, and other restricted stock	144,971		144,971		—		144,971		—
Derivatives	9,626		9,626		—		9,533		93

Liabilities:
Deposits	$	21,732,897	$	21,735,283	$	18,170,236	$	3,565,047	$	—




FHLB advances	2,059,163		2,057,460		—		2,057,460		—
Other borrowings	99,278		95,509		—		95,509		—
Subordinated debt	171,741		164,402		—		164,402		—
Derivatives	14,443		14,443		—		14,443		—


					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 June 30, 2026 and December 31, 2025 were as follows:


	June 30, 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	$	—	$	—	$	301,492	$	301,492

Agency-guaranteed residential mortgage-backed securities	—		750,995		—		750,995

Agency-guaranteed residential collateralized mortgage obligations	—		844,866		—		844,866
Agency-guaranteed commercial collateralized mortgage obligations	—		112,025		—		112,025


Corporate notes	—		236,879		—		236,879
Private label collateralized mortgage obligations	—		349,709		—		349,709



Derivatives	—		9,533		93		9,626
Loans held for sale – fair value option	—		2,528		2,982		5,510
Loans receivable, mortgage finance – fair value option	—		1,654,795		—		1,654,795
Loans receivable, installment – fair value option	—		—		84,826		84,826
Total assets – recurring fair value measurements	$	—	$	3,961,330	$	389,393	$	4,350,723
Liabilities
Derivatives	$	—	$	14,443	$	—	$	14,443
Measured at Fair Value on a Nonrecurring Basis:
Assets


Collateral-dependent loans	$	—	$	—	$	37,611	$	37,611
Other real estate owned	—		—		12,568		12,568
Total assets – nonrecurring fair value measurements	$	—	$	—	$	50,179	$	50,179


	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 and six months ended June 30, 2026 and 2025 are summarized in the tables below:


	Asset-backed securities
(amounts in thousands)	Three Months Ended June 30,
	2026		2025
Balance at April 1	$	275,706	$	168,475
Purchases	69,529		78,429
Principal payments and premium amortization	(42,816)		(17,922)
Increase in allowance for credit losses	—		(400)
Decrease in allowance for credit losses	42		169
Change in fair value recognized in OCI	(969)		(53)
Balance at June 30	$	301,492	$	228,698


	Asset-backed securities
(amounts in thousands)	Six Months Ended June 30,
	2026		2025
Balance at January 1	$	237,813	$	13,236
Purchases	137,509		236,256
Principal payments and premium amortization	(76,462)		(20,999)
Increase in allowance for credit losses	—		(466)
Decrease in allowance for credit losses	586		244
Change in fair value recognized in OCI	2,046		427
Balance at June 30	$	301,492	$	228,698

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 and six months ended June 30, 2026 and 2025 are summarized in the tables below:


	Other Installment Loans
(amounts in thousands)	Three Months Ended June 30,
	2026		2025
Balance at April 1	$	94,545	$	138,224

Originations	14,316		1,625
Sales	(12,798)		(357)
Principal payments	(8,195)		(18,087)
Change in fair value recognized in earnings	(60)		2,050
Balance at June 30	$	87,808	$	123,455


	Other Installment Loans
(amounts in thousands)	Six Months Ended June 30,
	2026		2025
Balance at January 1	$	102,971	$	162,055
Originations	14,987		195,958
Sales	(12,798)		(175,921)
Principal payments	(17,061)		(60,687)
Change in fair value recognized in earnings	(291)		2,050
Balance at June 30	$	87,808	$	123,455

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 June 30, 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)

June 30, 2026

Asset-backed securities

301,492

Discounted cash flow

Discount rate

Annualized loss rate

Constant prepayment rate

7% - 9%

(7%)

5% - 7%

(5%)

19% - 19%

(19%)

Other real estate owned

12,568

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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