Customers Bancorp CUBI Derivative, Fair Value, Amount Offset Against Collateral, Net

Agreements with major derivative dealer counterparties contain provisions whereby default on any of Customers’ indebtedness would be considered a default on its derivative obligations. Customers also has entered into agreements that contain provisions under which the counterparty could require Customers to settle its obligations if Customers fails to maintain its status as a well/adequately capitalized institution. Under these agreements, Customers had derivative assets of $7.3 million and derivative liabilities of $2.5 million, resulting in a net asset position of $4.8 million at June 30, 2026. In addition, Customers, which has collateral posting thresholds with certain of these counterparties, had received $5.9 million and posted $2.1 million, resulting in net cash collateral received of $3.8 million at June 30, 2026. Customers records cash posted or received as collateral with these counterparties, except with a central clearing entity, as a reduction or an increase in the outstanding balance of cash and cash equivalents and an increase in the balance of other assets or other liabilities.