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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases
 3 Months Ended
Mar. 31, 2023
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 March 31, 2023 and December 31, 2022.
(amounts in thousands)March 31, 2023December 31, 2022
Loans and leases receivable, mortgage warehouse, at fair value$1,247,367 $1,323,312 
Loans receivable, PPP246,258 998,153 
Loans and leases receivable:
Commercial:
Commercial and industrial:
Specialty lending (1)
5,519,176 5,412,887 
Other commercial and industrial1,295,688 1,259,943 
Multifamily2,195,211 2,213,019 
Commercial real estate owner occupied895,314 885,339 
Commercial real estate non-owner occupied1,245,248 1,290,730 
Construction188,123 162,009 
Total commercial loans and leases receivable11,338,760 11,223,927 
Consumer:
Residential real estate494,815 497,952 
Manufactured housing43,272 45,076 
Installment:
Personal849,420 964,641 
Other419,085 413,298 
Total consumer loans receivable1,806,592 1,920,967 
Loans and leases receivable13,145,352 13,144,894 
Allowance for credit losses on loans and leases(130,281)(130,924)
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2)
$14,508,696 $15,335,435 
(1)Includes direct finance equipment leases of $168.8 million and $157.4 million at March 31, 2023 and December 31, 2022, respectively.
(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(0.7) million and $(21.5) million at March 31, 2023 and December 31, 2022, respectively.
Customers' total loans and leases receivable 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, 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 $100.9 million and $105.5 million at March 31, 2023 and December 31, 2022, respectively, and is presented in accrued interest receivable in the consolidated balance sheet. At March 31, 2023 and December 31, 2022, there were $13.8 million and $11.5 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 March 31, 2023 and December 31, 2022, 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 $246.3 million and $998.2 million of PPP loans outstanding as of March 31, 2023 and December 31, 2022, respectively, which are fully guaranteed by the SBA, provided that the SBA's eligibility criteria are met and earn a fixed interest rate of 1.00%. Customers recognized interest income, including net origination fees, of $23.6 million and $36.9 million for the three months ended March 31, 2023 and 2022, 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 March 31, 2023 and December 31, 2022:
 March 31, 2023
(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$1,158 $172 $3,422 $4,752 $6,810,112 $6,814,864 
Multifamily— 5,189 881 6,070 2,189,141 2,195,211 
Commercial real estate owner occupied2,412 — 3,563 5,975 889,339 895,314 
Commercial real estate non-owner occupied— — 11 11 1,245,237 1,245,248 
Construction— — — — 188,123 188,123 
Residential real estate6,808 420 2,563 9,791 485,024 494,815 
Manufactured housing819 771 3,333 4,923 38,349 43,272 
Installment11,393 8,257 8,720 28,370 1,240,135 1,268,505 
Total$22,590 $14,809 $22,493 $59,892 $13,085,460 $13,145,352 
 December 31, 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$3,123 $717 $1,415 $5,255 $6,667,575 $6,672,830 
Multifamily10,684 5,217 1,143 17,044 2,195,975 2,213,019 
Commercial real estate owner occupied5,173 — 2,704 7,877 877,462 885,339 
Commercial real estate non-owner occupied2,136 — 11 2,147 1,288,583 1,290,730 
Construction— — — — 162,009 162,009 
Residential real estate5,208 1,157 3,158 9,523 488,429 497,952 
Manufactured housing901 537 3,346 4,784 40,292 45,076 
Installment11,246 7,942 9,527 28,715 1,349,224 1,377,939 
Total$38,471 $15,570 $21,304 $75,345 $13,069,549 $13,144,894 
(1)Includes past due loans and leases that are accruing interest because collection is considered probable.
(2)Includes loans amounting to $1.7 million and $1.9 million as of March 31, 2023 and December 31, 2022, 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 $246.3 million, of which $0.8 million were 30-59 days past due and $117.9 million were 60 days or more past due as of March 31, 2023, and PPP loans of $998.2 million, of which $0.6 million were 30-59 days past due and $36.0 million were 60 days or more past due as of December 31, 2022. Claims for guarantee payments are submitted to the SBA for eligible PPP loans more than 60 days past due.
(4)Includes PCD loans of $7.9 million and $8.3 million at March 31, 2023 and December 31, 2022, respectively.
Nonaccrual Loans and Leases
The following table presents the amortized cost of loans and leases held for investment on nonaccrual status.
 
March 31, 2023 (1)
December 31, 2022 (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$3,742 $144 $3,886 $1,731 $30 $1,761 
Multifamily881 — 881 1,143 — 1,143 
Commercial real estate owner occupied3,621 — 3,621 2,768 — 2,768 
Residential real estate6,473 — 6,473 6,922 — 6,922 
Manufactured housing— 2,568 2,568 — 2,410 2,410 
Installment— 8,720 8,720 — 9,527 9,527 
Total$14,717 $11,432 $26,149 $12,564 $11,967 $24,531 
(1) Presented at amortized cost basis.
Interest income recognized on nonaccrual loans was insignificant for the three months ended March 31, 2023 and 2022. Accrued interest reversed when the loans went to nonaccrual status was insignificant for the three months ended March 31, 2023 and 2022.
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 months ended March 31, 2023 and 2022 are presented in the tables below.
(amounts in thousands)
Commercial and industrial (1)
MultifamilyCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
Three Months Ended
March 31, 2023
Ending Balance,
December 31, 2022		$17,582 $14,541 $6,454 $11,219 $1,913 $6,094 $4,430 $68,691 $130,924 
Charge-offs(160)— — (4,239)— — — (16,715)(21,114)
Recoveries231 — — 5 116 2 — 2,109 2,463 
Provision (benefit) for credit losses on loans and leases2,397 543 2,018 4,047 307 757 (91)8,030 18,008 
Ending Balance,
March 31, 2023		$20,050 $15,084 $8,472 $11,032 $2,336 $6,853 $4,339 $62,115 $130,281 
(amounts in thousands)
Commercial and industrial (1)
MultifamilyCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
Three Months Ended
March 31, 2022
Ending Balance,
December 31, 2021		$12,702 $4,477 $3,213 $6,210 $692 $2,383 $4,278 $103,849 $137,804 
Charge-offs(301)— — — — (4)— (8,865)(9,170)
Recoveries360 337 7 8 113 6 — 1,113 1,944 
Provision (benefit) for credit losses on loans and leases(1,996)2,623 621 (263)134 2,300 64 11,786 15,269 
Ending Balance,
March 31, 2022		$10,765 $7,437 $3,841 $5,955 $939 $4,685 $4,342 $107,883 $145,847 
(1) Includes specialty lending.
At March 31, 2023, the ACL on loans and leases was $130.3 million, a decrease of $0.6 million from the December 31, 2022 balance of $130.9 million. The decrease in ACL for the three months ended March 31, 2023 was primarily attributable to a decrease in consumer installment loans, partially offset by additional provision for credit losses from the recognition of weaker macroeconomic forecasts.
Loan Modifications for Borrowers Experiencing Financial Difficulty
Customers adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02") effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measurement of TDRs and enhanced the disclosures for loan modifications to borrowers experiencing financial difficulty. Refer to NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION for additional information on the adoption.
A borrower is considered to be experiencing financial difficulty when there is a significant doubt about the borrower's ability to make the required principal and interest payments on the loan or to get an equivalent financing from another creditor at a market rate for a similar loan.
When borrowers are experiencing financial difficulty, Customers may make certain loan modifications as part of loss mitigation strategies to maximize expected payment. To be classified as a modification made to a borrower experiencing financial difficulty the modification must be in the form of an interest rate reduction, principal forgiveness, or an other-than-insignificant payment delay (payment deferral), term extension, or combinations thereof.
Customers will generally try other forms of relief before principal forgiveness but would define any contractual reduction in the amount of principal due without receiving payment or assets as forgiveness. For the purpose of this disclosure, Customers considers any contractual change in interest rate that results in a reduction in interest rate relative to the current stated interest rate as an interest rate reduction. Generally, Customers would consider any delay in payment of greater than 90 days in the last 12 months to be significant. Term extensions extend the original contractual maturity of the loan. For the purpose of this disclosure, modification of contingent payment features or covenants that would have accelerated payment are not considered term extensions.
The following table presents the amortized cost of loans that were modified to borrowers experiencing financial difficulty for the three months ended March 31, 2023, disaggregated by class of financing receivable and type of modification granted.
Three Months Ended March 31, 2023
(dollars in thousands)Term ExtensionPayment DeferralDebt ForgivenessInterest Rate Reduction and Term ExtensionTotalPercentage of Total by Financing Class
Commercial and industrial, including specialty lending$172 $— $— $— $172 0.00 %
Commercial real estate owner occupied169 — — — 169 0.02 %
Manufactured housing7 — — 63 70 0.16 %
Personal installment4,833 131 114 — 5,078 0.60 %
Total$5,181 $131 $114 $63 $5,489 
As of March 31, 2023, there were no commitments to lend additional funds to debtors experiencing financial difficulty whose loans have been modified during the three months ended March 31, 2023.
The following table summarizes the impacts of loan modifications made to borrowers experiencing financial difficulty for the three months ended March 31, 2023.
Three Months Ended March 31, 2023
Weighted Average
(dollars in thousands)Interest Rate Reduction (%)Term Extension
(in months)		Payment Deferral
(in months)		Debt Forgiven
Commercial and industrial, including specialty lending—%40$— 
Commercial real estate owner occupied—40— 
Manufactured housing0.8550— 
Personal installment—5666 
The performance of loans made to borrowers experiencing financial difficulty in which modifications were made is closely monitored to understand the effectiveness of modification efforts. Loans are considered to be in payment default at 90 days or more past due. The following table presents an aging analysis of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023.
March 31, 2023
(dollars in thousands)30-59 Days past due60-89 Days past due90 Days or more past dueCurrentTotal
Commercial and industrial, including specialty lending$— $172 $— $— $172 
Commercial real estate owner occupied— — 169 — 169 
Manufactured housing— — — 70 70 
Personal installment202 44 21 4,811 5,078 
Total$202 $216 $190 $4,881 $5,489 
As of March 31, 2023, Customers did not have any loans that were made to borrowers experiencing financial difficulty during the three months ended March 31, 2023 that subsequently defaulted. Customers' ACL is influenced by loan level characteristics that inform the assessed propensity to default. As such, the provision for credit losses is impacted by changes in such loan level characteristics, such as payment performance. Loans made to borrowers experiencing financial difficulty can be classified as either accrual or nonaccrual.
Troubled Debt Restructuring
At December 31, 2022, there were $16.8 million in loans reported as TDRs. The following table presents loans modified by type of concession for the three months ended March 31, 2022. There were no modifications that involved forgiveness of debt for the three months ended March 31, 2022.
Three Months Ended March 31, 2022
(dollars in thousands)Number of loansRecorded investment
Interest-rate reductions10 $346 
Other (1)
32 451 
Total42 $797 
(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.
As of December 31, 2022, 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, 2022
(dollars in thousands)Number of loansRecorded investment
Manufactured housing1 $49 
Installment23 276 
Total loans24 $325 
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. Commercial and industrial including specialty lending, multifamily, 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 commercial and industrial including specialty lending, multifamily, 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 2022 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 and current period gross write-offs as of March 31, 2023 and December 31, 2022.
Term Loans Amortized Cost Basis by Origination Year as of
March 31, 2023
(amounts in thousands)20232022202120202019PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial and industrial loans and leases, including specialty lending:
Pass$706,320 $2,821,406 $610,166 $205,708 $169,511 $116,433 $1,969,270 $78,949 $6,677,763 
Special mention6,000 10,967 355 23,813 — 1,637 1,795 215 44,782 
Substandard— 3,000 23,696 4,672 8,327 44,779 7,845 — 92,319 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$712,320 $2,835,373 $634,217 $234,193 $177,838 $162,849 $1,978,910 $79,164 $6,814,864 
Commercial and industrial loans and leases charge-offs:
Three Months Ended March 31, 2023$— $— $7 $— $— $153 $— $— $160 
Multifamily loans:
Pass$— $1,255,264 $361,915 $129,659 $21,944 $324,392 $— $— $2,093,174 
Special mention— — — — — 60,200 — — 60,200 
Substandard— — 1,492 — — 40,345 — — 41,837 
Doubtful— — — — — — — — — 
Total multifamily loans$— $1,255,264 $363,407 $129,659 $21,944 $424,937 $— $— $2,195,211 
Multifamily loans charge-offs:
Three Months Ended March 31, 2023$— $— $— $— $— $— $— $— $— 
Commercial real estate owner occupied loans:
Pass$24,001 $304,107 $206,692 $107,215 $91,158 $142,199 $— $— $875,372 
Special mention— — — — 350 1,962 — — 2,312 
Substandard— — — — 134 17,496 — — 17,630 
Doubtful— — — — — — — — 
Total commercial real estate owner occupied loans$24,001 $304,107 $206,692 $107,215 $91,642 $161,657 $— $— $895,314 
Commercial real estate owner occupied loans charge-offs:
Three Months Ended March 31, 2023$— $— $— $— $— $— $— $— $— 
Commercial real estate non-owner occupied:
Pass$668 $332,095 $116,170 $152,613 $71,417 $421,225 $— $— $1,094,188 
Special mention— — — 21,083 — 8,609 — — 29,692 
Substandard— 10,910 — — 28,473 81,985 — — 121,368 
Doubtful— — — — — — — — — 
Total commercial real estate non-owner occupied loans$668 $343,005 $116,170 $173,696 $99,890 $511,819 $— $— $1,245,248 
Commercial real estate non-owner occupied loans charge-offs:
Three Months Ended March 31, 2023$— $— $— $— $— $4,239 $— $— $4,239 
Construction:
Pass$— $93,193 $41,077 $9,918 $28,512 $13,755 $568 $1,100 $188,123 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$— $93,193 $41,077 $9,918 $28,512 $13,755 $568 $1,100 $188,123 
Construction loans charge-offs:
Three Months Ended March 31, 2023$— $— $— $— $— $— $— $— $— 
Total commercial loans and leases receivable$736,989 $4,830,942 $1,361,563 $654,681 $419,826 $1,275,017 $1,979,478 $80,264 $11,338,760 
Term Loans Amortized Cost Basis by Origination Year as of
March 31, 2023
(amounts in thousands)20232022202120202019PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial loans and leases receivable charge-offs:
Three Months Ended March 31, 2023$— $— $7 $— $— $4,392 $— $— $4,399 
Residential real estate loans:
Performing$2,825 $172,464 $151,252 $6,690 $15,856 $74,745 $64,870 $— $488,702 
Non-performing— 271 457 234 434 4,282 435 — 6,113 
Total residential real estate loans$2,825 $172,735 $151,709 $6,924 $16,290 $79,027 $65,305 $— $494,815 
Residential real estate loans charge-offs:
Three Months Ended March 31, 2023$— $— $— $— $— $— $— $— $— 
Manufactured housing loans:
Performing$— $— $— $— $— $40,173 $— $— $40,173 
Non-performing— — — — 211 2,888 — — 3,099 
Total manufactured housing loans$— $— $— $— $211 $43,061 $— $— $43,272 
Manufactured housing loans charge-offs:
Three Months Ended March 31, 2023$— $— $— $— $— $— $— $— $— 
Installment loans:
Performing$38,376 $602,558 $338,980 $105,550 $103,290 $8,934 $60,349 $— $1,258,037 
Non-performing— 5,426 3,007 737 1,035 156 107 — 10,468 
Total installment loans$38,376 $607,984 $341,987 $106,287 $104,325 $9,090 $60,456 $— $1,268,505 
Installment loans charge-offs:
Three Months Ended March 31, 2023$1,724 $4,192 $6,856 $1,655 $1,933 $355 $— $— $16,715 
Total consumer loans$41,201 $780,719 $493,696 $113,211 $120,826 $131,178 $125,761 $— $1,806,592 
Consumer loans charge-offs:
Three Months Ended March 31, 2023$1,724 $4,192 $6,856 $1,655 $1,933 $355 $— $— $16,715 
Loans and leases receivable$778,190 $5,611,661 $1,855,259 $767,892 $540,652 $1,406,195 $2,105,239 $80,264 $13,145,352 
Loans and leases receivable charge-offs:
Three Months Ended March 31, 2023$1,724 $4,192 $6,863 $1,655 $1,933 $4,747 $— $— $21,114 
Term Loans Amortized Cost Basis by Origination Year as of December 31, 2022
(amounts in thousands)20222021202020192018PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial and industrial loans and leases, including specialty lending:
Pass$3,206,250 $682,132 $242,516 $198,866 $56,572 $83,417 $2,066,349 $— $6,536,102 
Special mention11,134 6,023 27,780 — 1,501 172 2,599 — 49,209 
Substandard— 22,917 967 8,431 6,713 39,554 8,937 — 87,519 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$3,217,384 $711,072 $271,263 $207,297 $64,786 $123,143 $2,077,885 $— $6,672,830 
Multifamily loans:
Pass$1,260,544 $364,047 $130,656 $22,167 $112,212 $203,215 $— $— $2,092,841 
Special mention— — — — 4,959 50,858 — — 55,817 
Substandard— 1,500 — — — 62,861 — — 64,361 
Doubtful— — — — — — — — — 
Total multifamily loans$1,260,544 $365,547 $130,656 $22,167 $117,171 $316,934 $— $— $2,213,019 
Commercial real estate owner occupied loans:
Pass$293,096 $220,515 $105,925 $90,752 $34,196 $121,616 $— $— $866,100 
Special mention— — — — 134 1,841 — — 1,975 
Substandard— — — 134 10,569 6,561 — — 17,264 
Doubtful— — — — — — — — — 
Total commercial real estate owner occupied loans$293,096 $220,515 $105,925 $90,886 $44,899 $130,018 $— $— $885,339 
Commercial real estate non-owner occupied:
Pass$339,044 $119,304 $156,281 $73,827 $62,237 $386,235 $— $— $1,136,928 
Special mention— — 21,211 — — 10,617 — — 31,828 
Substandard10,910 — — 28,656 8,198 74,210 — — 121,974 
Doubtful— — — — — — — — — 
Total commercial real estate non-owner occupied loans$349,954 $119,304 $177,492 $102,483 $70,435 $471,062 $— $— $1,290,730 
Construction:
Pass$72,177 $36,114 $9,537 $28,644 $4,696 $9,112 $1,729 $— $162,009 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$72,177 $36,114 $9,537 $28,644 $4,696 $9,112 $1,729 $— $162,009 
Total commercial loans and leases receivable$5,193,155 $1,452,552 $694,873 $451,477 $301,987 $1,050,269 $2,079,614 $— $11,223,927 
Residential real estate loans:
Performing$162,217 $148,217 $7,224 $17,128 $10,739 $77,762 $67,782 $— $491,069 
Non-performing271 366 238 441 1,425 3,357 785 — 6,883 
Total residential real estate loans$162,488 $148,583 $7,462 $17,569 $12,164 $81,119 $68,567 $— $497,952 
Manufactured housing loans:
Performing$— $— $— $213 $103 $41,918 $— $— 42,234 
Non-performing— — — — — 2,842 — — 2,842 
Total manufactured housing loans$— $— $— $213 $103 $44,760 $— $— $45,076 
Installment loans:
Performing$785,699 $305,729 $100,173 $100,570 $8,430 $782 $64,690 $— $1,366,073 
Non-performing5,164 4,356 1,023 1,111 61 59 92 — 11,866 
Total installment loans$790,863 $310,085 $101,196 $101,681 $8,491 $841 $64,782 $— $1,377,939 
Total consumer loans$953,351 $458,668 $108,658 $119,463 $20,758 $126,720 $133,349 $— $1,920,967 
Loans and leases receivable$6,146,506 $1,911,220 $803,531 $570,940 $322,745 $1,176,989 $2,212,963 $— $13,144,894 
Loan Purchases and Sales
Purchases and sales of loans were as follows for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31,
(amounts in thousands)20232022
Purchases (1)
Other commercial and industrial$5,445 $— 
Commercial real estate owner occupied2,867 — 
Residential real estate4,238 146,874 
Personal installment (2)
— 59,456 
Total$12,550 $206,330 
Sales (3)
Other commercial and industrial (4)
$— $8,840 
Commercial real estate owner occupied (4)
— 5,441 
Total$— $14,281 
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 101.9% and 98.1% of the loans' unpaid principal balance for the three months ended March 31, 2023 and 2022, respectively.
(2)Installment loan purchases for the three months ended March 31, 2023 and 2022 consist of third-party originated unsecured consumer loans. None of the loans held for investment are considered sub-prime at the time of origination. Customers considers sub-prime borrowers to be those with FICO scores below 660.
(3)There were no sales of loans held for investment for the three months ended March 31, 2023. Gains of $1.5 million from the sales of loans held for investment for the three months ended March 31, 2022 are included in gain (loss) on sale of SBA and other loans in the consolidated statement of income.
(4)Primarily sales of SBA loans.
Loans Pledged as Collateral
Customers has pledged eligible real estate, commercial and industrial, mortgage warehouse, PPP and consumer installment loans as collateral for borrowings outstanding or available immediately from the FHLB and FRB in the amount of $9.9 billion and $7.1 billion at March 31, 2023 and December 31, 2022, respectively.