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Loans and Leases Receivable and Allowance for Credit Losses | 3 Months Ended
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Mar. 31, 2020
Receivables [Abstract] |
Loans and Leases Receivable and Allowance for Credit Losses | LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES The following table presents loans and leases receivable as of March 31, 2020 and December 31, 2019.
(amounts in thousands) | March 31, 2020 |  | December 31, 2019
Loans and leases receivable, mortgage warehouse, at fair value | $ | 2,518,012 |  |  | $ | 2,245,758 |
Loans receivable: |  |  |
Commercial: |  |  |
Multi-family | 1,621,633 |  |  | 1,907,331 |
Commercial and industrial (1) | 2,072,952 |  |  | 1,891,152 |
Commercial real estate owner occupied | 543,945 |  |  | 551,948 |
Commercial real estate non-owner occupied | 1,252,826 |  |  | 1,222,772 |
Construction | 115,448 |  |  | 117,617 |
Total commercial loans and leases receivable | 5,606,804 |  |  | 5,690,820 |
Consumer: |  |  |
Residential real estate | 362,047 |  |  | 382,634 |
Manufactured housing | 69,240 |  |  | 71,359 |
Other consumer | 1,315,171 |  |  | 1,174,175 |
Total consumer loans receivable | 1,746,458 |  |  | 1,628,168 |
Loans and leases receivable (2) | 7,353,262 |  |  | 7,318,988 |
Allowance for credit losses | (149,283) |  |  | (56,379) |
Total loans and leases receivable, net of allowance for credit losses | $ | 9,721,991 |  |  | $ | 9,508,367 |
(1)Includes direct finance equipment leases of $96.6 million and $89.2 million at March 31, 2020 and December 31, 2019, respectively. (2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $3.2 million and $2.1 million at March 31, 2020 and December 31, 2019, respectively. Customers' total loans and leases receivable portfolio includes loans receivable which are reported at fair value based on an election made to account for these loans at fair value and loans and leases receivable which are predominately reported at their outstanding unpaid principal balance, net of charge-offs and deferred costs and fees and unamortized premiums and discounts and are evaluated for impairment. The total amount of accrued interest recorded for total loans was $36.3 million and $34.8 million at March 31, 2020 and December 31, 2019, respectively, and is presented in accrued interest receivable in the consolidated balance sheet. At March 31, 2020, there were $56.5 million of individually evaluated loans that were collateral-dependent. Substantially all individually evaluated loans are collateral-dependent and consisted primarily of commercial and industrial, commercial real estate, and residential real estate loans. Collateral-dependent commercial and industrial loans were secured by accounts receivable, inventory and equipment; collateral-dependent commercial real estate loans were secured by commercial real estate assets; and residential real estate loans were secured by residential real estate assets. There were no significant changes in collateral values during the three months ended March 31, 2020. Subsequent to March 31, 2020, Customers decided to sell a commercial real estate loan collateralized by a Class A office building in northern New Jersey. At March 31, 2020, this collateral dependent loan has been charged down to its estimated fair value of $19.1 million. Loans receivable, mortgage warehouse, at fair value: Mortgage warehouse loans consist of commercial loans to mortgage companies. These mortgage warehouse lending transactions are subject to master repurchase agreements. As a result of the contractual provisions, for accounting purposes control of the underlying mortgage loan has not transferred and the rewards and risks of the mortgage loans are not assumed by Customers. The mortgage warehouse loans are designated as loans held for investment and reported at fair value based on an election made to account for the loans at fair value. Pursuant to the agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded mortgage loans and receives proceeds directly from third party investors when the underlying mortgage loans are sold into the secondary market. The fair value of the mortgage warehouse loans is estimated as the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The interest rates on these loans are variable, and the lending transactions are short-term, with an average life under 30 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. At March 31, 2020 and December 31, 2019, all of Customers' commercial mortgage warehouse loans were current in terms of payment. As these loans are reported at their fair value, they do not have an ACL and are therefore excluded from ACL-related disclosures. Loans and leases receivable: The following tables summarize loans and leases receivable by loan and lease type and performance status as of March 31, 2020 and December 31, 2019:
| March 31, 2020 |  |  |  |  |  |  |  |  |  |
(amounts in thousands) | 30-59 Days past due |  | 60-89 Days past due |  | 90 Days or more past due |  | Total past due |  | Loans and leases not past due (2) |  | Total loans and leases (3)
Multi-family | $ | 2,378 |  |  | $ | — |  |  | $ | 4,021 |  |  | $ | 6,399 |  |  | $ | 1,615,234 |  |  | $ | 1,621,633 |
Commercial and industrial | 1,332 |  |  | 659 |  |  | 10,182 |  |  | 12,173 |  |  | 2,060,779 |  |  | 2,072,952 |
Commercial real estate owner occupied | 4,391 |  |  | 971 |  |  | 2,740 |  |  | 8,102 |  |  | 535,843 |  |  | 543,945 |
Commercial real estate non-owner occupied | 30,723 |  |  | — |  |  | 21,470 |  |  | 52,193 |  |  | 1,200,633 |  |  | 1,252,826 |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | 115,448 |  |  | 115,448 |
Residential real estate | 5,253 |  |  | 68 |  |  | 6,248 |  |  | 11,569 |  |  | 350,478 |  |  | 362,047 |
Manufactured housing (5) | 2,138 |  |  | 962 |  |  | 5,089 |  |  | 8,189 |  |  | 61,051 |  |  | 69,240 |
Other consumer | 6,502 |  |  | 3,725 |  |  | 2,527 |  |  | 12,754 |  |  | 1,302,417 |  |  | 1,315,171 |
Total | $ | 52,717 |  |  | $ | 6,385 |  |  | $ | 52,277 |  |  |  | $ | 111,379 |  |  | $ | 7,241,883 |  |  | $ | 7,353,262 |
| December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
(amounts in thousands) | 30-89 Days past due (1) |  | 90 Days or more past due (1) |  | Total past due (1) |  | Non-accrual |  | Current (2) |  | Purchased-credit-impaired loans (4) |  | Total loans and leases (5)
Multi-family | $ | 2,133 |  |  | — |  |  |  | $ | 2,133 |  |  | $ | 4,117 |  |  | $ | 1,901,336 |  |  | $ | 1,688 |  |  | $ | 1,909,274 |
Commercial and industrial | 2,395 |  |  | — |  |  |  | 2,395 |  |  | 4,531 |  |  | 1,882,700 |  |  | 354 |  |  | 1,889,980 |
Commercial real estate owner occupied | 5,388 |  |  | — |  |  |  | 5,388 |  |  | 1,963 |  |  | 537,992 |  |  | 6,664 |  |  | 552,007 |
Commercial real estate non-owner occupied | 8,034 |  |  | — |  |  |  | 8,034 |  |  | 76 |  |  | 1,211,892 |  |  | 3,527 |  |  | 1,223,529 |
Construction | — |  |  | — |  |  |  | — |  |  | — |  |  | 118,418 |  |  | — |  |  | 118,418 |
Residential real estate | 5,924 |  |  | — |  |  |  | 5,924 |  |  | 6,128 |  |  | 359,491 |  |  | 3,471 |  |  | 375,014 |
Manufactured housing | 3,699 |  |  | 1,794 |  |  |  | 5,493 |  |  | 1,655 |  |  | 61,649 |  |  | 1,601 |  |  | 70,398 |
Other consumer | 5,756 |  |  | $ | — |  |  |  | 5,756 |  |  | 1,551 |  |  | 1,170,793 |  |  | 183 |  |  | 1,178,283 |
Total | $ | 33,329 |  |  | $ | 1,794 |  |  |  | $ | 35,123 |  |  | $ | 20,021 |  |  | $ | 7,244,271 |  |  | $ | 17,488 |  |  | $ | 7,316,903 |
(1)Includes past due loans and leases that are accruing interest because collection is considered probable. (2)Loans and leases where next payment due is less than 30 days from the report date. (3)Includes purchased credit deteriorated loans of $16.6 million at March 31, 2020. (4)Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Due to the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (5)Amounts exclude deferred costs and fees and unamortized premiums and discounts. As of both March 31, 2020 and December 31, 2019, the Bank had $0.1 million and $0.2 million, respectively, of residential real estate held in OREO. As of both March 31, 2020 and December 31, 2019, the Bank had initiated foreclosure proceedings on $0.9 million, respectively, in loans secured by residential real estate. Nonaccrual Loans and Leases The following table provides amortized cost of loans and leases on nonaccrual status.
| March 31, 2020 (1) |  |  |  |  |  | December 31, 2020 (2) |  |  |  |  |  |  |  |  |  |  |  |
(amounts in thousands) | Nonaccrual loans with no related allowance |  | Nonaccrual loans with related allowance |  | Total nonaccrual loans |  | Nonaccrual loans with no related allowance |  | Nonaccrual loans with related allowance |  | Total nonaccrual loans |  |  |  |  |  |  |  |
Multi-family | $ | 4,020 |  |  | $ | — |  |  | $ | 4,020 |  |  | $ | 4,117 |  |  | $ | — |  |  | $ | 4,117 |  |  |  |  |  |  |  |  |
Commercial and industrial | 8,967 |  |  | 1,026 |  |  | 9,993 |  |  | 3,083 |  |  | 1,448 |  |  | 4,531 |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied | 2,371 |  |  | 40 |  |  | 2,411 |  |  | 1,109 |  |  | 854 |  |  | 1,963 |  |  |  |  |  |  |  |  |
Commercial real estate non-owner occupied | 21,479 |  |  | — |  |  | 21,479 |  |  | 76 |  |  | — |  |  | 76 |  |  |  |  |  |  |  |  |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Residential real estate | 4,730 |  |  | 1,324 |  |  | 6,054 |  |  | 4,559 |  |  | 1,569 |  |  | 6,128 |  |  |  |  |  |  |  |  |
Manufactured housing | — |  |  | 2,558 |  |  | 2,558 |  |  | — |  |  | 1,655 |  |  | 1,655 |  |  |  |  |  |  |  |  |
Other consumer | 270 |  |  | 2,249 |  |  | 2,519 |  |  | 140 |  |  | 1,411 |  |  | 1,551 |  |  |  |  |  |  |  |  |
Total | $ | 41,837 |  |  | $ | 7,197 |  |  | $ | 49,034 |  |  | $ | 13,084 |  |  | $ | 6,937 |  |  | $ | 20,021 |  |  |  |  |  |  |  |  |
(1) Presented at amortized cost basis. (2) Amounts exclude deferred costs and fees and unamortized premiums and discounts. Interest income of $0.2 million and $0.2 million was recognized on nonaccrual loans for the three months ended March 31, 2020 and 2019, respectively. PCD loans are considered to be performing and are not included in the table above. Allowance for credit losses on loans and leases The changes in the allowance for credit losses on loans and leases for the three months ended March 31, 2020 and 2019, is presented in the tables below.
Three Months Ended March 31, 2020 | Multi-family |  | Commercial and industrial |  | Commercial real estate owner occupied |  | Commercial real estate non-owner occupied |  | Construction |  | Residential real estate |  | Manufactured housing |  | Other consumer |  | Total
(amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, at December 31, 2019 | $ | 6,157 |  |  | $ | 15,556 |  |  | $ | 2,235 |  |  | $ | 6,243 |  |  | $ | 1,262 |  |  | $ | 3,218 |  |  | $ | 1,060 |  |  | $ | 20,648 |  |  | $ | 56,379 |
Cumulative effect of change in accounting principle | 2,171 |  |  | 759 |  |  | 5,773 |  |  | 7,918 |  |  | (98) |  |  | 1,518 |  |  | 3,802 |  |  | 57,986 |  |  | 79,829 |
Charge-offs | — |  |  | (97) |  |  | — |  |  | (12,797) |  |  | — |  |  | — |  |  | — |  |  | (6,246) |  |  | (19,140) |
Recoveries | — |  |  | 54 |  |  | 3 |  |  | — |  |  | 3 |  |  | 29 |  |  | — |  |  | 340 |  |  | 429 |
Provision for credit loss expense | 422 |  |  | 2,534 |  |  | 516 |  |  | 17,166 |  |  | 767 |  |  | (585) |  |  | 125 |  |  | 10,841 |  |  | 31,786 |
Total ending allowance balance | $ | 8,750 |  |  | $ | 18,806 |  |  | $ | 8,527 |  |  | $ | 18,530 |  |  | $ | 1,934 |  |  | $ | 4,180 |  |  | $ | 4,987 |  |  | $ | 83,569 |  |  | $ | 149,283 |
Three Months Ended March 31, 2019 | Multi-family |  | Commercial and industrial |  | Commercial real estate owner occupied |  | Commercial real estate non-owner occupied |  | Construction |  | Residential real estate |  | Manufactured housing |  | Other consumer |  | Total
(amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, December 31, 2018 | $ | 11,462 |  |  | $ | 12,145 |  |  | $ | 3,320 |  |  | $ | 6,093 |  |  | $ | 624 |  |  | $ | 3,654 |  |  | $ | 145 |  |  | $ | 2,529 |  |  | $ | 39,972 |
Charge-offs | (541) |  |  | — |  |  | (8) |  |  | — |  |  | — |  |  | (40) |  |  | — |  |  | (755) |  |  | (1,344) |
Recoveries | — |  |  | 119 |  |  | 128 |  |  | — |  |  | 6 |  |  | 7 |  |  | — |  |  | 24 |  |  | 284 |
Provision for loan and lease losses | (291) |  |  | 383 |  |  | (15) |  |  | (78) |  |  | (46) |  |  | 2,951 |  |  | (28) |  |  | 1,891 |  |  | 4,767 |
Ending Balance, March 31, 2019 | $ | 10,630 |  |  | $ | 12,647 |  |  | $ | 3,425 |  |  | $ | 6,015 |  |  | $ | 584 |  |  | $ | 6,572 |  |  | $ | 117 |  |  | $ | 3,689 |  |  | $ | 43,679 |
At March 31, 2020, the ACL was $149.3 million, an increase of $13.1 million from the January 1, 2020 balance of $136.2 million. The increase resulted primarily from the impact of reserve build for the COVID-19 pandemic, an increase in net charge-offs, mostly attributed to the commercial real estate non-owner occupied and other consumer portfolios, and portfolio growth. Commercial real estate non-owner occupied charge-offs is attributable to one collateral dependent loan. Other consumer charge-offs is attributable to delinquencies and defaults of originated and purchased unsecured consumer loans through arrangements with fintech companies and other market place lenders. Troubled Debt Restructurings At March 31, 2020 and December 31, 2019, there were $13.5 million and $13.3 million, respectively, in loans reported as TDRs. TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if it satisfies a minimum performance requirement of six months, however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Customers had no lease receivables that had been restructured as a TDR as of March 31, 2020 and December 31, 2019, respectively. The CARES Act and certain regulatory agencies recently issued guidance stating certain loan modifications to borrowers experiencing financial distress as a result of the economic impacts created by COVID-19 may not be required to be treated as TDRs under U.S GAAP. For COVID-19 related loan modifications which occurred in March 2020, and met the loan modification criteria under either the CARES Act or the criteria specified by the regulatory agencies, Customers elected to suspend TDR accounting for such loan modifications. The following table presents loans modified in a TDR by type of concession for the three months ended March 31, 2020 and 2019. There were no modifications that involved forgiveness of debt for the three months ended March 31, 2020 and 2019.
| Three Months Ended March 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 2020 |  |  |  | 2019 |  |  |  |  |  |  |  |  |  |
(dollars in thousands) | Number of loans |  | Recorded investment |  | Number of loans |  | Recorded investment |  |  |  |  |  |  |  |
Extensions of maturity | 4 |  |  | $ | 245 |  |  | 2 |  |  | $ | 514 |  |  |  |  |  |  |  |  |
Interest-rate reductions | 12 |  |  | 530 |  |  | 10 |  |  | 385 |  |  |  |  |  |  |  |  |
Total | 16 |  |  | $ | 775 |  |  | 12 |  |  | $ | 899 |  |  |  |  |  |  |  |  |
As of March 31, 2020, there were no commitments to lend additional funds to debtors whose loans have been modified in TDRs. As of December 31, 2019, there were no commitments to lend additional funds to debtors whose loans have been modified in TDRs. The following table presents, by loan type, the number of loans modified in TDRs and the related recorded investment, for which there was a payment default within twelve months following the modification:
| March 31, 2020 |  |  |  | March 31, 2019 |  |
(dollars in thousands) | Number of loans |  | Recorded investment |  | Number of loans |  | Recorded investment
Manufactured housing | — |  |  | $ | — |  |  | 5 |  |  | $ | 137 |
Commercial and industrial | — |  |  | — |  |  | 1 |  |  | 431 |
Commercial real estate owner occupied | 1 |  |  | 8 |  |  | — |  |  | — |
Residential real estate | 5 |  |  | 684 |  |  | — |  |  | — |
Total loans | 6 |  |  | $ | 692 |  |  | 6 |  |  | $ | 568 |
Loans modified in TDRs are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of ACL. Purchased Credit-Deteriorated Loans Customers adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration that were previously classified as PCI and accounted for under ASC 310-30. In accordance with the standard, Customers did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $0.2 million of the allowance for credit losses on PCD loans and leases. The remaining noncredit discount of $0.3 million, based on the adjusted amortized cost basis, will be accreted into interest income at the effective interest rate as of January 1, 2020. As of March 31, 2020, the amortized cost basis of PCD assets amounted to $16.6 million. Credit Quality Indicators The ACL represents management's estimate of probable losses in Customers' loans and leases receivable portfolio, excluding commercial mortgage warehouse loans reported at fair value pursuant to a fair value option election. Multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, and construction loans are rated based on an internally assigned risk rating system which is assigned at the time of loan origination and reviewed on a periodic, or on an “as needed” basis. Residential real estate loans, manufactured housing and other consumer loans are evaluated based on the payment activity of the loan. To facilitate the monitoring of credit quality within the multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, and construction loan portfolios, and as an input in the ACL lifetime loss rate model for the C&I portfolio, the Bank utilizes the following categories of risk ratings: pass/satisfactory (includes risk rating 1 through 6), special mention, substandard, doubtful, and loss. The risk rating categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass/satisfactory ratings, which are assigned to those borrowers who do not have identified potential or well-defined weaknesses and for whom there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter. While assigning risk ratings involves judgment, the risk-rating process allows management to identify riskier credits in a timely manner and allocate the appropriate resources to manage those loans and leases. The 2019 Form 10-K describes Customers Bancorp’s risk rating grades. Risk ratings are not established for certain consumer loans, including residential real estate, home equity, manufactured housing, and installment loans, mainly because these portfolios consist of a larger number of homogeneous loans with smaller balances. Instead, these portfolios are evaluated for risk mainly based upon aggregate payment history through the monitoring of delinquency levels and trends and are classified as performing and non-performing. The following tables present the credit ratings of loans and leases receivable as of March 31, 2020 and December 31, 2019.
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multi-family: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 26,646 |  |  |  | $ | 23,689 |  |  | $ | 172,088 |  |  | $ | 445,613 |  |  | $ | 329,586 |  |  | $ | 569,400 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,567,022 |
Special mention | — |  |  | — |  |  | — |  |  | 19,510 |  |  | 1,968 |  |  | — |  |  | — |  |  | — |  |  | 21,478 |
Substandard | — |  |  | — |  |  | — |  |  | 12,028 |  |  | 13,904 |  |  | 7,201 |  |  | — |  |  | — |  |  | 33,133 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total multi-family loans | $ | 26,646 |  |  | $ | 23,689 |  |  | $ | 172,088 |  |  | $ | 477,151 |  |  | $ | 345,458 |  |  | $ | 576,601 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,621,633 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 323,338 |  |  | $ | 491,492 |  |  | $ | 183,202 |  |  | $ | 120,795 |  |  | $ | 55,483 |  |  | $ | 101,805 |  |  | $ | 718,827 |  |  | $ | — |  |  | $ | 1,994,942 |
Special mention | — |  |  | 7,788 |  |  | 2,403 |  |  | 17,652 |  |  | 120 |  |  | 26 |  |  | 20,800 |  |  | — |  |  | 48,789 |
Substandard | — |  |  | 5,576 |  |  | 276 |  |  | 1,760 |  |  | 7,774 |  |  | 3,318 |  |  | 10,517 |  |  | — |  |  | 29,221 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial and industrial loans and leases | $ | 323,338 |  |  | $ | 504,856 |  |  | $ | 185,881 |  |  | $ | 140,207 |  |  | $ | 63,377 |  |  | $ | 105,149 |  |  | $ | 750,144 |  |  | $ | — |  |  | $ | 2,072,952 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 18,672 |  |  |  | $ | 184,756 |  |  |  | $ | 90,261 |  |  |  | $ | 82,509 |  |  |  | $ | 49,074 |  |  |  | $ | 102,449 |  |  |  | $ | 1,672 |  |  |  | $ | — |  |  |  | $ | 529,393 |
Special mention | — |  |  |  | — |  |  |  | 483 |  |  |  | 114 |  |  |  | — |  |  |  | 399 |  |  |  | — |  |  |  | — |  |  | 996 |
Substandard | — |  |  |  | — |  |  |  | — |  |  |  | 350 |  |  |  | 2,266 |  |  |  | 10,940 |  |  |  | — |  |  |  | — |  |  | 13,556 |
Doubtful | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | — |
Total commercial real estate owner occupied loans | $ | 18,672 |  |  |  | $ | 184,756 |  |  |  | $ | 90,744 |  |  |  | $ | 82,973 |  |  |  | $ | 51,340 |  |  |  | $ | 113,788 |  |  |  | $ | 1,672 |  |  |  | $ | — |  |  |  | $ | 543,945 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate non-owner occupied: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 74,905 |  |  |  | $ | 118,164 |  |  |  | $ | 118,424 |  |  |  | $ | 249,784 |  |  |  | $ | 201,214 |  |  |  | $ | 412,250 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 1,174,741 |
Special mention | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 374 |  |  |  | 4,201 |  |  |  | — |  |  |  | — |  |  | 4,575 |
Substandard | — |  |  |  | — |  |  |  | 30,772 |  |  |  | — |  |  |  | 2,080 |  |  |  | 21,608 |  |  |  | — |  |  |  | — |  |  | 54,460 |
Doubtful | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 19,050 |  |  |  | — |  |  |  | — |  |  |  | — |  |  | 19,050 |
Total commercial real estate non-owner occupied loans | $ | 74,905 |  |  |  | $ | 118,164 |  |  |  | $ | 149,196 |  |  |  | $ | 249,784 |  |  |  | $ | 222,718 |  |  |  | $ | 438,059 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 1,252,826 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 451 |  |  |  | $ | 83,774 |  |  |  | $ | 20,241 |  |  |  | $ | — |  |  |  | $ | 9,886 |  |  |  | $ | — |  |  |  | $ | 1,096 |  |  |  | $ | — |  |  |  | $ | 115,448 |
Special mention | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | — |
Substandard | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | — |
Doubtful | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  | — |
Total construction loans | $ | 451 |  |  |  | $ | 83,774 |  |  |  | $ | 20,241 |  |  |  | $ | — |  |  |  | $ | 9,886 |  |  |  | $ | — |  |  |  | $ | 1,096 |  |  |  | $ | — |  |  |  | $ | 115,448 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 1,527 |  |  |  | $ | 15,164 |  |  |  | $ | 8,103 |  |  |  | $ | 14,644 |  |  |  | $ | 47,557 |  |  |  | $ | 86,675 |  |  |  | $ | 182,652 |  |  |  | $ | — |  |  |  | $ | 356,322 |
Non-performing | — |  |  |  | — |  |  |  | 161 |  |  |  | 160 |  |  |  | 860 |  |  |  | 4,117 |  |  |  | 427 |  |  |  | — |  |  |  | 5,725 |
Total residential real estate loans | $ | 1,527 |  |  |  | $ | 15,164 |  |  |  | $ | 8,264 |  |  |  | $ | 14,804 |  |  |  | $ | 48,417 |  |  |  | $ | 90,792 |  |  |  | $ | 183,079 |  |  |  | $ | — |  |  |  | $ | 362,047 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | — |  |  |  | $ | 312 |  |  |  | $ | 643 |  |  |  | $ | 81 |  |  |  | $ | 44 |  |  |  | $ | 64,782 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 65,862 |
Non-performing | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,378 |  |  |  | — |  |  |  | — |  |  |  | 3,378 |
Total manufactured housing loans | $ | — |  |  |  | $ | 312 |  |  |  | $ | 643 |  |  |  | $ | 81 |  |  |  | $ | 44 |  |  |  | $ | 68,160 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 69,240 |
| Term Loans Amortized Cost Basis by Origination Year |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(in thousands) | 2020 |  | 2019 |  | 2018 |  | 2017 |  | 2016 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
As of March 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Payment performance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 122,726 |  |  |  | $ | 1,034,536 |  |  |  | $ | 147,669 |  |  |  | $ | 7,004 |  |  |  | $ | 762 |  |  |  | $ | 55 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 1,312,752 |
Non-performing | — |  |  |  | 1,785 |  |  |  | 618 |  |  |  | 16 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,419 |
Total other consumer loans | $ | 122,726 |  |  |  | $ | 1,036,321 |  |  |  | $ | 148,287 |  |  |  | $ | 7,020 |  |  |  | $ | 762 |  |  |  | $ | 55 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 1,315,171 |
| December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(amounts in thousands) | Multi-family |  | Commercial and industrial |  | Commercial real estate owner occupied |  | Commercial real estate non-owner occupied |  | Construction |  | Residential real estate |  | Manufactured housing |  | Other consumer |  | Total (3)
Pass/Satisfactory | $ | 1,816,200 |  |  | $ | 1,841,074 |  |  | $ | 536,777 |  |  | $ | 1,129,838 |  |  | $ | 118,418 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,442,307 |
Special Mention | 69,637 |  |  | 26,285 |  |  | 8,286 |  |  | 6,949 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 111,157 |
Substandard | 23,437 |  |  | 22,621 |  |  | 6,944 |  |  | 86,742 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 139,744 |
Performing (1) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 362,962 |  |  | 63,250 |  |  | 1,170,976 |  |  | 1,597,188 |
Non-performing (2) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 12,052 |  |  | 7,148 |  |  | 7,307 |  |  | 26,507 |
Total | $ | 1,909,274 |  |  | $ | 1,889,980 |  |  | $ | 552,007 |  |  | $ | 1,223,529 |  |  | $ | 118,418 |  |  | $ | 375,014 |  |  | $ | 70,398 |  |  | $ | 1,178,283 |  |  | $ | 7,316,903 |
(1)Includes residential real estate, manufactured housing, and other consumer loans not assigned internal ratings. (2)Includes residential real estate, manufactured housing, and other consumer loans that are past due and still accruing interest or on nonaccrual status. (3)Excludes commercial mortgage warehouse loans reported at fair value. Loan Purchases and Sales Purchases and sales of loans were as follows for the three months ended March 31, 2020 and 2019:
| Three Months Ended March 31, |  |  |  |  |  |
(amounts in thousands) | 2020 |  | 2019 |  |  |  |
Purchases (1) |  |  |  |  |  |  |
Residential real estate | $ | 495 |  |  | $ | 66,384 |  |  |  |  |
Other consumer (2) | 191,761 |  |  | 66,136 |  |  |  |  |
Total | $ | 192,256 |  |  | $ | 132,520 |  |  |  |  |
Sales (3) |  |  |  |  |  |  |
Other consumer | 1,822 |  |  | — |  |  |  |  |
Total | $ | 1,822 |  |  | $ | — |  |  |  |  |
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 100.6% and 97.6% of loans outstanding for the three months ended March 31, 2020 and 2019, respectively. (2)Other consumer loan purchases for the three months ended March 31, 2020 consist of third-party originated unsecured consumer loans. None of the loans are considered sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660. (3)Amounts reported in the above table are the unpaid principal balance at time of sale. There were no loan sales in the three months ended March 31, 2019. Loans Pledged as Collateral Customers has pledged eligible real estate and commercial and industrial loans as collateral for borrowings from the FHLB and FRB in the amount of $4.1 billion and $4.6 billion at March 31, 2020 and December 31, 2019, respectively.

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