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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases LOANS AND LEASES RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES ON LOANS AND LEASES
The following table presents loans and leases receivable as of June 30, 2022 and December 31, 2021.
(amounts in thousands)June 30, 2022December 31, 2021
Loans and leases receivable, mortgage warehouse, at fair value$1,874,603 $2,284,325 
Loans receivable, PPP1,570,160 3,250,008 
Loans and leases receivable:
Commercial:
Commercial and industrial, including specialty lending (1)
5,737,670 3,424,783 
Multi-family2,008,784 1,486,308 
Commercial real estate owner occupied710,577 654,922 
Commercial real estate non-owner occupied1,152,869 1,121,238 
Construction195,687 198,981 
Total commercial loans and leases receivable9,805,587 6,886,232 
Consumer:
Residential real estate457,768 334,730 
Manufactured housing48,570 52,861 
Installment1,901,070 1,744,475 
Total consumer loans receivable2,407,408 2,132,066 
Loans and leases receivable12,212,995 9,018,298 
Allowance for credit losses on loans and leases(156,530)(137,804)
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2)
$15,501,228 $14,414,827 
(1)Includes direct finance equipment leases of $149.2 million and $146.5 million at June 30, 2022 and December 31, 2021, respectively.
(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(12.1) million and $(52.0) million at June 30, 2022 and December 31, 2021, 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 $86.1 million and $81.6 million at June 30, 2022 and December 31, 2021, respectively, and is presented in accrued interest receivable in the consolidated balance sheet. At June 30, 2022 and December 31, 2021, there were $17.2 million and $38.9 million of individually evaluated loans that were collateral-dependent, respectively. 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.
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 June 30, 2022 and December 31, 2021, 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 receivable, PPP
Customers had $1.6 billion and $3.3 billion of PPP loans outstanding as of June 30, 2022 and December 31, 2021, respectively, which are fully guaranteed by the SBA and earn a fixed interest rate of 1.00%. Customers recognized interest income, including origination fees, of $20.6 million and $57.5 million for the three and six months ended June 30, 2022, respectively. Customers recognized interest income, including origination fees, of $41.1 million and $79.9 million for the three and six months ended June 30, 2021, respectively.
PPP loans include an embedded credit enhancement from the SBA, which guarantees 100% of the principal and interest owed by the borrower provided that the SBA's eligibility criteria are met. As a result, the eligible PPP loans 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 June 30, 2022 and December 31, 2021:
 June 30, 2022
(amounts in thousands)
30-59 Days past due (1)
60-89 Days past due (1)
90 Days or more past due (2)
Total past due
Loans and leases not past due (3)
Total loans and leases (4)
Commercial and industrial, including specialty lending$340 $339 $3,918 $4,597 $5,733,073 $5,737,670 
Multi-family— — 1,153 1,153 2,007,631 2,008,784 
Commercial real estate owner occupied857 648 1,149 2,654 707,923 710,577 
Commercial real estate non-owner occupied— — — — 1,152,869 1,152,869 
Construction— — — — 195,687 195,687 
Residential real estate2,689 1,513 3,379 7,581 450,187 457,768 
Manufactured housing690 288 3,955 4,933 43,637 48,570 
Installment8,050 5,929 5,965 19,944 1,881,126 1,901,070 
Total$12,626 $8,717 $19,519 $40,862 $12,172,133 $12,212,995 
 December 31, 2021
(amounts in thousands)
30-59 Days past due (1)
60-89 Days past due (1)
90 Days or more past due (2)
Total past due
Loans and leases not past due (3)
Total loans and leases (4)
Commercial and industrial, including specialty lending$2,093 $95 $5,929 $8,117 $3,416,666 $3,424,783 
Multi-family1,682 2,707 18,235 22,624 1,463,684 1,486,308 
Commercial real estate owner occupied287 — 1,304 1,591 653,331 654,922 
Commercial real estate non-owner occupied— — 2,815 2,815 1,118,423 1,121,238 
Construction— — — — 198,981 198,981 
Residential real estate4,655 789 4,390 9,834 324,896 334,730 
Manufactured housing2,308 768 4,949 8,025 44,836 52,861 
Installment7,349 4,295 3,783 15,427 1,729,048 1,744,475 
Total$18,374 $8,654 $41,405 $68,433 $8,949,865 $9,018,298 
(1)Includes past due loans and leases that are accruing interest because collection is considered probable.
(2)Includes loans amounting to $1.5 million and $1.4 million as of June 30, 2022 and December 31, 2021, respectively, that are still accruing interest because collection is considered probable.
(3)Loans and leases where next payment due is less than 30 days from the report date. The tables exclude PPP loans of $1.6 billion, of which $3.3 million were 30-59 days past due and $33.4 million were 60 days or more past due as of June 30, 2022, and PPP loans of $3.3 billion, of which $6.3 million were 30-59 days past due and $21.8 million were 60 days or more past due as of December 31, 2021. Claims for guarantee payments are submitted to the SBA for eligible PPP loans more than 60 days past due.
(4)Includes PCD loans of $9.0 million and $9.9 million at June 30, 2022 and December 31, 2021, respectively.
Nonaccrual Loans and Leases
The following table presents the amortized cost of loans and leases held for investment on nonaccrual status.
 
June 30, 2022 (1)
December 31, 2021 (1)
(amounts in thousands)Nonaccrual loans with no related allowanceNonaccrual loans with related allowanceTotal nonaccrual loansNonaccrual loans with no related allowanceNonaccrual loans with related allowanceTotal nonaccrual loans
Commercial and industrial, including specialty lending$4,061 $— $4,061 $5,837 $259 $6,096 
Multi-family1,153 — 1,153 22,654 — 22,654 
Commercial real estate owner occupied2,913 — 2,913 2,475 — 2,475 
Commercial real estate non-owner occupied— — — 2,815 — 2,815 
Residential real estate6,258 — 6,258 7,727 — 7,727 
Manufactured housing— 3,071 3,071 — 3,563 3,563 
Installment— 5,965 5,965 — 3,783 3,783 
Total$14,385 $9,036 $23,421 $41,508 $7,605 $49,113 
(1) Presented at amortized cost basis.
Interest income recognized on nonaccrual loans was insignificant for the three and six months ended June 30, 2022 and 2021. Accrued interest reversed when the loans went to nonaccrual status was insignificant during the three and six months ended June 30, 2022 and 2021.
Allowance for credit losses on loans and leases
The changes in the ACL on loans and leases by loan and lease type for the three and six months ended June 30, 2022 and 2021 are presented in the tables below.
(amounts in thousands)Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
Three Months Ended
June 30, 2022
Ending balance, March 31, 2022$7,437 $10,765 $3,841 $5,955 $939 $4,685 $4,342 $107,883 $145,847 
Charge-offs(1,990)(276)— (163)— — — (12,851)(15,280)
Recoveries— 692 42 4 103 39 — 919 1,799 
Provision (benefit) for credit losses on loans and leases4,318 (100)862 3,084 137 854 (262)15,271 24,164 
Ending Balance,
June 30, 2022		$9,765 $11,081 $4,745 $8,880 $1,179 $5,578 $4,080 $111,222 $156,530 
Six Months Ended
June 30, 2022
Ending Balance,
December 31, 2021		$4,477 $12,702 $3,213 $6,210 $692 $2,383 $4,278 $103,849 $137,804 
Charge-offs(1,990)(578)— (163)— (4)— (21,716)(24,451)
Recoveries337 1,053 49 12 216 45 — 2,032 3,744 
Provision (benefit) for credit losses on loans and leases6,941 (2,096)1,483 2,821 271 3,154 (198)27,057 39,433 
Ending Balance,
June 30, 2022		$9,765 $11,081 $4,745 $8,880 $1,179 $5,578 $4,080 $111,222 $156,530 
(amounts in thousands)Multi-familyCommercial and industrialCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
Three Months Ended
June 30, 2021
Ending balance, March 31, 2021$8,026 $7,503 $5,935 $11,621 $4,103 $3,209 $4,800 $83,539 $128,736 
Charge-offs— (2)(1)— — — — (7,958)(7,961)
Recoveries— 285 2 59 114 12 — 898 1,370 
Provision (benefit) for credit losses on loan and lease losses(2,998)341 (1,472)(4,306)(1,574)(922)(428)14,650 3,291 
Ending Balance,
June 30, 2021		$5,028 $8,127 $4,464 $7,374 $2,643 $2,299 $4,372 $91,129 $125,436 
Six Months Ended
June 30, 2021
Ending Balance,
December 31, 2020		$12,620 $12,239 $9,512 $19,452 $5,871 $3,977 $5,190 $75,315 $144,176 
Charge-offs(1,132)(637)(142)— — (50)— (20,645)(22,606)
Recoveries— 545 9 69 119 22 — 2,730 3,494 
Provision (benefit) for credit losses on loan and lease losses(6,460)(4,020)(4,915)(12,147)(3,347)(1,650)(818)33,729 372 
Ending Balance,
June 30, 2021		$5,028 $8,127 $4,464 $7,374 $2,643 $2,299 $4,372 $91,129 $125,436 
At June 30, 2022, the ACL on loans and leases was $156.5 million, an increase of $18.7 million from the December 31, 2021 balance of $137.8 million. The increase in ACL for the three and six months ended June 30, 2022 was primarily attributable to loan growth.
Troubled Debt Restructurings
At June 30, 2022 and December 31, 2021, there were $16.8 million and $16.5 million, respectively, in loans reported as TDRs. TDRs are reported as impaired loans in the quarter of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent quarters, 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 June 30, 2022 and December 31, 2021, respectively.
The following table presents loans modified in a TDR by type of concession for the three and six months ended June 30, 2022 and 2021. There were no modifications that involved forgiveness of debt for the three and six months ended June 30, 2022 and 2021.
Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investment
Interest-rate reductions4 $124 4 $157 14 $470 12 $341 
Other (1)
67 743 99 1,141 99 1,194 119 1,682 
Total71 $867 103 $1,298 113 $1,664 131 $2,023 
(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.
As of June 30, 2022 and December 31, 2021, 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:
June 30, 2022June 30, 2021
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investment
Manufactured housing4 $94 7 $189 
Residential real estate1 119 1 43 
Installment38 473 15 247 
Total loans43 $686 23 $479 
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.
Credit Quality Indicators
The ACL represents management's estimate of expected losses in Customers' loans and leases receivable portfolio, excluding commercial mortgage warehouse loans reported at fair value pursuant to a fair value option election and PPP loans receivable. 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, manufactured housing and installment 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 commercial and industrial loan 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 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 2021 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 June 30, 2022 and December 31, 2021.
Term Loans Amortized Cost Basis by Origination Year as of
June 30, 2022
(amounts in thousands)20222021202020192018PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial and industrial loans and leases, including specialty lending:
Pass$2,288,409 $600,191 $305,601 $231,819 $79,656 $116,210 $2,006,671 $— $5,628,557 
Special mention— — — — — 380 3,222 — 3,602 
Substandard— 21,825 9,691 8,652 12,601 43,664 9,078 — 105,511 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$2,288,409 $622,016 $315,292 $240,471 $92,257 $160,254 $2,018,971 $— $5,737,670 
Multi-family loans:
Pass$882,267 $399,236 $131,741 $22,663 $119,914 $329,640 $— $— $1,885,461 
Special mention— — — — 5,009 66,748 — — 71,757 
Substandard— 1,515 — — — 50,051 — — 51,566 
Doubtful— — — — — — — — — 
Total multi-family loans$882,267 $400,751 $131,741 $22,663 $124,923 $446,439 $— $— $2,008,784 
Commercial real estate owner occupied loans:
Pass$129,586 $203,769 $58,688 $116,646 $41,654 $137,023 $672 $— $688,038 
Special mention— — — — — 3,880 — — 3,880 
Substandard— — — 134 9,544 8,981 — — 18,659 
Doubtful— — — — — — — — 
Total commercial real estate owner occupied loans$129,586 $203,769 $58,688 $116,780 $51,198 $149,884 $672 $— $710,577 
Commercial real estate non-owner occupied:
Pass$134,207 $120,804 $146,492 $75,872 $64,787 $415,941 $— $— $958,103 
Special mention— — 21,454 — — 5,873 — — 27,327 
Substandard— — — 29,008 38,246 100,185 — — 167,439 
Doubtful— — — — — — — — — 
Total commercial real estate non-owner occupied loans$134,207 $120,804 $167,946 $104,880 $103,033 $521,999 $— $— $1,152,869 
Construction:
Pass$44,282 $81,791 $17,939 $29,061 $4,760 $9,243 $8,611 $— $195,687 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$44,282 $81,791 $17,939 $29,061 $4,760 $9,243 $8,611 $— $195,687 
Total commercial loans and leases receivable$3,478,751 $1,429,131 $691,606 $513,855 $376,171 $1,287,819 $2,028,254 $— $9,805,587 
Residential real estate loans:
Performing$113,101 $142,389 $7,526 $16,970 $10,374 $76,795 $84,904 $— $452,059 
Non-performing— — — 382 1,264 3,128 935 — 5,709 
Total residential real estate loans$113,101 $142,389 $7,526 $17,352 $11,638 $79,923 $85,839 $— $457,768 
Manufactured housing loans:
Performing$— $— $— $220 $171 $45,271 $— $— $45,662 
Non-performing— — — — — 2,908 — — 2,908 
Total manufactured housing loans$— $— $— $220 $171 $48,179 $— $— $48,570 
Installment loans:
Performing$553,321 $774,689 $265,103 $202,825 $19,122 $1,471 $78,600 $— $1,895,131 
Non-performing138 3,421 1,000 1,066 172 61 81 — 5,939 
Total installment loans$553,459 $778,110 $266,103 $203,891 $19,294 $1,532 $78,681 $— $1,901,070 
Total consumer loans$666,560 $920,499 $273,629 $221,463 $31,103 $129,634 $164,520 $— $2,407,408 
Loans and leases receivable$4,145,311 $2,349,630 $965,235 $735,318 $407,274 $1,417,453 $2,192,774 $— $12,212,995 
Term Loans Amortized Cost Basis by Origination Year as of December 31, 2021
(amounts in thousands)20212020201920182017PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial and industrial loans and leases, including specialty lending:
Pass$974,016 $337,045 $266,677 $86,691 $55,536 $89,860 $1,484,287 $— $3,294,112 
Special mention476 1,408 3,325 4,904 36,252 92 14,662 — 61,119 
Substandard18,786 10,257 9,543 11,586 5,682 6,764 6,934 — 69,552 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$993,278 $348,710 $279,545 $103,181 $97,470 $96,716 $1,505,883 $— $3,424,783 
Multi-family loans:
Pass$403,075 $133,452 $23,068 $209,070 $282,663 $316,491 $— $— $1,367,819 
Special mention— — — 9,936 18,489 28,776 — — 57,201 
Substandard— — — — 38,216 23,072 — — 61,288 
Doubtful— — — — — — — — — 
Total multi-family loans$403,075 $133,452 $23,068 $219,006 $339,368 $368,339 $— $— $1,486,308 
Commercial real estate owner occupied loans:
Pass$213,102 $59,348 $124,626 $60,993 $58,073 $99,219 $672 $— $616,033 
Special mention— — 2,876 318 2,044 572 — — 5,810 
Substandard— — 3,750 9,682 8,824 10,823 — — 33,079 
Doubtful— — — — — — — — — 
Total commercial real estate owner occupied loans$213,102 $59,348 $131,252 $70,993 $68,941 $110,614 $672 $— $654,922 
Commercial real estate non-owner occupied:
Pass$136,897 $149,898 $95,504 $66,040 $153,509 $310,435 $— $— $912,283 
Special mention— 21,694 11,113 9,373 43,215 20,540 — — 105,935 
Substandard— — — 35,846 20,516 46,658 — — 103,020 
Doubtful— — — — — — — — — 
Total commercial real estate non-owner occupied loans$136,897 $171,592 $106,617 $111,259 $217,240 $377,633 $— $— $1,121,238 
Construction:
Pass$57,105 $49,199 $77,622 $4,828 $— $9,414 $813 $— $198,981 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$57,105 $49,199 $77,622 $4,828 $— $9,414 $813 $— $198,981 
Total commercial loans and leases receivable$1,803,457 $762,301 $618,104 $509,267 $723,019 $962,716 $1,507,368 $— $6,886,232 
Residential real estate loans:
Performing$107,854 $8,251 $21,096 $11,389 $6,707 $84,035 $87,438 $— $326,770 
Non-performing— — 335 1,015 669 3,587 2,354 — 7,960 
Total residential real estate loans$107,854 $8,251 $21,431 $12,404 $7,376 $87,622 $89,792 $— $334,730 
Manufactured housing loans:
Performing$— $— $253 $299 $73 $47,537 $— $— 48,162 
Non-performing— — — — — 4,699 — — 4,699 
Total manufactured housing loans$— $— $253 $299 $73 $52,236 $— $— $52,861 
Installment loans:
Performing$973,525 $390,788 $341,582 $31,481 $1,601 $1,016 $25 $— $1,740,018 
Non-performing1,162 1,002 2,074 156 2 61 — — 4,457 
Total installment loans$974,687 $391,790 $343,656 $31,637 $1,603 $1,077 $25 $— $1,744,475 
Total consumer loans$1,082,541 $400,041 $365,340 $44,340 $9,052 $140,935 $89,817 $— $2,132,066 
Loans and leases receivable$2,885,998 $1,162,342 $983,444 $553,607 $732,071 $1,103,651 $1,597,185 $— $9,018,298 
Loan Purchases and Sales
Purchases and sales of loans were as follows for the three and six months ended June 30, 2022 and 2021:
Three Months Ended June 30,Six Months Ended June 30,
(amounts in thousands)2022202120222021
Purchases (1)
Loans receivable, PPP$— $460,456 $— $621,487 
Residential real estate8,081 — 154,955 — 
Installment (2)
16,551 — 76,007 115,849 
Total$24,632 $460,456 $230,962 $737,336 
Sales (3)
Multi-family$2,879 $19,443 $2,879 $19,443 
Commercial and industrial14,040 10,059 22,880 28,990 
Commercial real estate owner occupied3,519 4,461 8,960 6,698 
Commercial real estate non-owner occupied— — — 18,366 
Residential real estate— 11,623 — 28,186 
Installment— 28,818 — 28,818 
Total$20,438 $74,404 $34,719 $130,501 
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 98.9% and 102.0% of loans outstanding for the three months ended June 30, 2022 and 2021, respectively. The purchase price was 98.2% and 103.0% of loans outstanding for the six months ended June 30, 2022 and 2021, respectively.
(2)Installment loan purchases for the three and six months ended June 30, 2022 and 2021 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)For the three months ended June 30, 2022 and 2021, loan sales resulted in net gains of $1.5 million and $2.2 million, respectively, included in gain (loss) on sale of SBA and other loans in the consolidated statements of income. For the six months ended June 30, 2022 and 2021, loan sales resulted in net gains of $3.6 million and $4.3 million, respectively.
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 $4.0 billion and $3.7 billion at June 30, 2022 and December 31, 2021, respectively. No PPP loans were pledged to the FRB in accordance with borrowing from the PPPLF at June 30, 2022 and December 31, 2021.