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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases | 6 Months Ended
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Jun. 30, 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 June 30, 2023 and December 31, 2022.
(amounts in thousands) | June 30, 2023 |  | December 31, 2022
Loans and leases receivable, mortgage warehouse, at fair value | $ | 1,006,268 |  |  | $ | 1,323,312 |
Loans receivable, PPP | 188,763 |  |  | 998,153 |
Loans and leases receivable: |  |  |
Commercial: |  |  |
Commercial and industrial: |  |  |
Specialty lending (1) | 5,534,832 |  |  | 5,412,887 |
Other commercial and industrial | 1,154,475 |  |  | 1,259,943 |
Multifamily | 2,151,734 |  |  | 2,213,019 |
Commercial real estate owner occupied | 842,042 |  |  | 885,339 |
Commercial real estate non-owner occupied | 1,211,091 |  |  | 1,290,730 |
Construction | 212,214 |  |  | 162,009 |
Total commercial loans and leases receivable | 11,106,388 |  |  | 11,223,927 |
Consumer: |  |  |
Residential real estate | 487,199 |  |  | 497,952 |
Manufactured housing | 41,664 |  |  | 45,076 |
Installment: |  |  |
Personal | 752,470 |  |  | 964,641 |
Other | 250,047 |  |  | 413,298 |
Total consumer loans receivable | 1,531,380 |  |  | 1,920,967 |
Loans and leases receivable | 12,637,768 |  |  | 13,144,894 |
Allowance for credit losses on loans and leases | (139,656) |  |  | (130,924) |
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2) | $ | 13,693,143 |  |  | $ | 15,335,435 |
(1)Includes direct finance equipment leases of $186.1 million and $157.4 million at June 30, 2023 and December 31, 2022, respectively. (2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(83.3) million and $(21.5) million at June 30, 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 $99.8 million and $105.5 million at June 30, 2023 and December 31, 2022, respectively, and is presented in accrued interest receivable in the consolidated balance sheet. At June 30, 2023 and December 31, 2022, there were $17.1 million and $11.5 million of individually evaluated loans that were collateral-dependent, respectively. Substantially all individually evaluated loans were 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, 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 $188.8 million and $998.2 million of PPP loans outstanding as of June 30, 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 $1.6 million and $25.2 million for the three and six months ended June 30, 2023, respectively. Customers recognized interest income, including net origination fees, of $20.6 million and $57.5 million for the three and six months ended June 30, 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 June 30, 2023 and December 31, 2022:
| June 30, 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)(4) |  | Total loans and leases (4)
Commercial and industrial, including specialty lending | $ | 2,516 |  |  | $ | 104 |  |  | $ | 4,081 |  |  | $ | 6,701 |  |  | $ | 6,682,606 |  |  | $ | 6,689,307 |
Multifamily | — |  |  | — |  |  | 2,950 |  |  | 2,950 |  |  | 2,148,784 |  |  | 2,151,734 |
Commercial real estate owner occupied | — |  |  | 134 |  |  | 3,251 |  |  | 3,385 |  |  | 838,657 |  |  | 842,042 |
Commercial real estate non-owner occupied | — |  |  | — |  |  | — |  |  | — |  |  | 1,211,091 |  |  | 1,211,091 |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | 212,214 |  |  | 212,214 |
Residential real estate | 1,751 |  |  | 1,586 |  |  | 3,764 |  |  | 7,101 |  |  | 480,098 |  |  | 487,199 |
Manufactured housing | 380 |  |  | 506 |  |  | 3,538 |  |  | 4,424 |  |  | 37,240 |  |  | 41,664 |
Installment | 9,558 |  |  | 7,679 |  |  | 6,537 |  |  | 23,774 |  |  | 978,743 |  |  | 1,002,517 |
Total | $ | 14,205 |  |  | $ | 10,009 |  |  | $ | 24,121 |  |  | $ | 48,335 |  |  | $ | 12,589,433 |  |  | $ | 12,637,768 |
| 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 |
Multifamily | 10,684 |  |  | 5,217 |  |  | 1,143 |  |  | 17,044 |  |  | 2,195,975 |  |  | 2,213,019 |
Commercial real estate owner occupied | 5,173 |  |  | — |  |  | 2,704 |  |  | 7,877 |  |  | 877,462 |  |  | 885,339 |
Commercial real estate non-owner occupied | 2,136 |  |  | — |  |  | 11 |  |  | 2,147 |  |  | 1,288,583 |  |  | 1,290,730 |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | 162,009 |  |  | 162,009 |
Residential real estate | 5,208 |  |  | 1,157 |  |  | 3,158 |  |  | 9,523 |  |  | 488,429 |  |  | 497,952 |
Manufactured housing | 901 |  |  | 537 |  |  | 3,346 |  |  | 4,784 |  |  | 40,292 |  |  | 45,076 |
Installment | 11,246 |  |  | 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 $0.9 million and $1.9 million as of June 30, 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 $188.8 million, of which $2.4 million were 30-59 days past due and $144.2 million were 60 days or more past due as of June 30, 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 $204.1 million and $8.3 million at June 30, 2023 and December 31, 2022, respectively. On June 15, 2023, Customers acquired $631.0 million of Venture Banking loan portfolio (included within Specialty Lending above) from the FDIC, which included $228.7 million of PCD loans. Nonaccrual Loans and Leases The following table presents the amortized cost of loans and leases held for investment on nonaccrual status.
| June 30, 2023 (1) |  | December 31, 2022 (1) |  |  |  |
(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 |  |  |  |  |  |  |  |
Commercial and industrial, including specialty lending | $ | 3,281 |  |  | $ | 1,160 |  |  | $ | 4,441 |  |  | $ | 1,731 |  |  | $ | 30 |  |  | $ | 1,761 |  |  |  |  |  |  |  |  |
Multifamily | 4,022 |  |  | — |  |  | 4,022 |  |  | 1,143 |  |  | — |  |  | 1,143 |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied | 3,304 |  |  | — |  |  | 3,304 |  |  | 2,768 |  |  | — |  |  | 2,768 |  |  |  |  |  |  |  |  |
Residential real estate | 7,306 |  |  | — |  |  | 7,306 |  |  | 6,922 |  |  | — |  |  | 6,922 |  |  |  |  |  |  |  |  |
Manufactured housing | — |  |  | 2,634 |  |  | 2,634 |  |  | — |  |  | 2,410 |  |  | 2,410 |  |  |  |  |  |  |  |  |
Installment | — |  |  | 6,537 |  |  | 6,537 |  |  | — |  |  | 9,527 |  |  | 9,527 |  |  |  |  |  |  |  |  |
Total | $ | 17,913 |  |  | $ | 10,331 |  |  | $ | 28,244 |  |  | $ | 12,564 |  |  | $ | 11,967 |  |  | $ | 24,531 |  |  |  |  |  |  |  |  |
(1) Presented at amortized cost basis. Interest income recognized on nonaccrual loans was insignificant for the three and six months ended June 30, 2023 and 2022. Accrued interest reversed when the loans went to nonaccrual status was insignificant for the three and six months ended June 30, 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 and six months ended June 30, 2023 and 2022 are presented in the tables below.
(amounts in thousands) | Commercial and industrial (1) |  | Multifamily |  | Commercial real estate owner occupied |  | Commercial real estate non-owner occupied |  | Construction |  | Residential real estate |  | Manufactured housing |  | Installment |  |  |  | Total
Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, March 31, 2023 | $ | 20,050 |  |  | $ | 15,084 |  |  | $ | 8,472 |  |  | $ | 11,032 |  |  | $ | 2,336 |  |  | $ | 6,853 |  |  | $ | 4,339 |  |  | $ | 62,115 |  |  |  |  | $ | 130,281 |
Allowance for credit losses on FDIC PCD loans, net of charge-offs (2) | 2,576 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 2,576 |
Charge-offs | (432) |  |  | (1,448) |  |  | — |  |  | (288) |  |  | — |  |  | (27) |  |  | — |  |  | (16,384) |  |  |  |  | (18,579) |
Recoveries | 174 |  |  | — |  |  | 34 |  |  | 22 |  |  | — |  |  | 3 |  |  | — |  |  | 2,782 |  |  |  |  | 3,015 |
Provision (benefit) for credit losses on loans and leases | 6,724 |  |  | 1,764 |  |  | 1,709 |  |  | 2,729 |  |  | 303 |  |  | 17 |  |  | (1) |  |  | 9,118 |  |  |  |  | 22,363 |
Ending Balance, June 30, 2023 | $ | 29,092 |  |  | $ | 15,400 |  |  | $ | 10,215 |  |  | $ | 13,495 |  |  | $ | 2,639 |  |  | $ | 6,846 |  |  | $ | 4,338 |  |  | $ | 57,631 |  |  |  |  | $ | 139,656 |
Six Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, December 31, 2022 | $ | 17,582 |  |  | $ | 14,541 |  |  | $ | 6,454 |  |  | $ | 11,219 |  |  | $ | 1,913 |  |  | $ | 6,094 |  |  | $ | 4,430 |  |  | $ | 68,691 |  |  |  |  | $ | 130,924 |
Allowance for credit losses on FDIC PCD loans, net of charge-offs (2) | 2,576 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | $ | 2,576 |
Charge-offs | (592) |  |  | (1,448) |  |  | — |  |  | (4,527) |  |  | — |  |  | (27) |  |  | — |  |  | (33,099) |  |  |  |  | $ | (39,693) |
Recoveries | 405 |  |  | — |  |  | 34 |  |  | 27 |  |  | 116 |  |  | 5 |  |  | — |  |  | 4,891 |  |  |  |  | $ | 5,478 |
Provision (benefit) for credit losses on loans and leases | 9,121 |  |  | 2,307 |  |  | 3,727 |  |  | 6,776 |  |  | 610 |  |  | 774 |  |  | (92) |  |  | 17,148 |  |  |  |  | $ | 40,371 |
Ending Balance, June 30, 2023 | $ | 29,092 |  |  | $ | 15,400 |  |  | $ | 10,215 |  |  | $ | 13,495 |  |  | $ | 2,639 |  |  | $ | 6,846 |  |  | $ | 4,338 |  |  | $ | 57,631 |  |  |  |  | $ | 139,656 |
(amounts in thousands) | Commercial and industrial (1) |  | Multifamily |  | Commercial real estate owner occupied |  | Commercial real estate non-owner occupied |  | Construction |  | Residential real estate |  | Manufactured housing |  | Installment |  |  |  | Total
Three Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, March 31, 2022 | $ | 10,765 |  |  | $ | 7,437 |  |  | $ | 3,841 |  |  | $ | 5,955 |  |  | $ | 939 |  |  | $ | 4,685 |  |  | $ | 4,342 |  |  | $ | 107,883 |  |  |  |  | $ | 145,847 |
Charge-offs | (276) |  |  | (1,990) |  |  | — |  |  | (163) |  |  | — |  |  | — |  |  | — |  |  | (12,851) |  |  |  |  | (15,280) |
Recoveries | 692 |  |  | — |  |  | 42 |  |  | 4 |  |  | 103 |  |  | 39 |  |  | — |  |  | 919 |  |  |  |  | 1,799 |
Provision (benefit) for credit losses on loans and leases | (100) |  |  | 4,318 |  |  | 862 |  |  | 3,084 |  |  | 137 |  |  | 854 |  |  | (262) |  |  | 15,271 |  |  |  |  | 24,164 |
Ending Balance, June 30, 2022 | $ | 11,081 |  |  | $ | 9,765 |  |  | $ | 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 | $ | 12,702 |  |  | $ | 4,477 |  |  | $ | 3,213 |  |  | $ | 6,210 |  |  | $ | 692 |  |  | $ | 2,383 |  |  | $ | 4,278 |  |  | $ | 103,849 |  |  |  |  | $ | 137,804 |
Charge-offs | (578) |  |  | (1,990) |  |  | — |  |  | (163) |  |  | — |  |  | (4) |  |  | — |  |  | (21,716) |  |  |  |  | (24,451) |
Recoveries | 1,053 |  |  | 337 |  |  | 49 |  |  | 12 |  |  | 216 |  |  | 45 |  |  | — |  |  | 2,032 |  |  |  |  | 3,744 |
Provision (benefit) for credit losses on loans and leases | (2,096) |  |  | 6,941 |  |  | 1,483 |  |  | 2,821 |  |  | 271 |  |  | 3,154 |  |  | (198) |  |  | 27,057 |  |  |  |  | 39,433 |
Ending Balance, June 30, 2022 | $ | 11,081 |  |  | $ | 9,765 |  |  | $ | 4,745 |  |  | $ | 8,880 |  |  | $ | 1,179 |  |  | $ | 5,578 |  |  | $ | 4,080 |  |  | $ | 111,222 |  |  |  |  | $ | 156,530 |
(1) Includes Specialty Lending. (2) Represents $8.7 million of allowance for credit losses on PCD loans recognized upon acquisition of a Venture Banking loan portfolio (included within Specialty Lending) from the FDIC on June 15, 2023, net of $6.2 million of charge-offs for certain of these PCD loans upon acquisition.
At June 30, 2023, the ACL on loans and leases was $139.7 million, an increase of $8.8 million from the December 31, 2022 balance of $130.9 million. The increase in ACL for the three and six months ended June 30, 2023 was primarily attributable to additional provision for credit losses from the recognition of weaker macroeconomic forecasts and the recognition of ACL for PCD loans acquired from the FDIC, net of related charge-offs upon acquisition, partially offset by a decrease in consumer installment loans. 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 and six months ended June 30, 2023, disaggregated by class of financing receivable and type of modification granted.
|  |  | Three Months Ended June 30, 2023 |  |
(dollars in thousands) |  |  | Term Extension |  | Payment Deferral |  | Debt Forgiveness |  | Interest Rate Reduction and Term Extension |  | Total |  | Percentage of Total by Financing Class |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing |  |  | $ | 52 |  |  | $ | — |  |  | $ | — |  |  | $ | 229 |  |  | $ | 281 |  |  | 0.67 | % |  |  |  |  |  |  |  |  |  |  |  |
Personal installment |  |  | 3,540 |  |  | 180 |  |  | 183 |  |  | — |  |  | 3,903 |  |  | 0.52 | % |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | $ | 3,592 |  |  | $ | 180 |  |  | $ | 183 |  |  | $ | 229 |  |  | $ | 4,184 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Six Months Ended June 30, 2023 |  |
(dollars in thousands) |  |  | Term Extension |  | Payment Deferral |  | Debt Forgiveness |  | Interest Rate Reduction and Term Extension |  | Total |  | Percentage of Total by Financing Class |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial, including specialty lending |  |  | $ | 169 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 169 |  |  | 0.00 | % |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied |  |  | 169 |  |  | — |  |  | — |  |  | — |  |  | 169 |  |  | 0.02 | % |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing |  |  | 59 |  |  | — |  |  | — |  |  | 291 |  |  | 350 |  |  | 0.84 | % |  |  |  |  |  |  |  |  |  |  |  |
Personal installment |  |  | 8,067 |  |  | 269 |  |  | 264 |  |  | — |  |  | 8,600 |  |  | 1.14 | % |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | $ | 8,464 |  |  | $ | 269 |  |  | $ | 264 |  |  | $ | 291 |  |  | $ | 9,288 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of June 30, 2023, there were no commitments to lend additional funds to debtors experiencing financial difficulty whose loans have been modified during the three and six months ended June 30, 2023. The following table summarizes the impacts of loan modifications made to borrowers experiencing financial difficulty for the three and six months ended June 30, 2023.
| Three Months Ended June 30, 2023
| Weighted Average |  |
(dollars in thousands) | Interest Rate Reduction (%) |  | Term Extension (in months) |  | Payment Deferral (in months) |  | Debt Forgiven
Manufactured housing | 3.5% |  | 47 |  | 0 |  | $ | — |
Personal installment | — |  | 5 |  | 6 |  | 100 |
| Six Months Ended June 30, 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 | —% |  | 4 |  | 0 |  | $ | — |
Commercial real estate owner occupied | — |  | 4 |  | 0 |  | — |
Manufactured housing | 2.9% |  | 49 |  | 0 |  | — |
Personal installment | — |  | 5 |  | 6 |  | 166 |
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 six months ended June 30, 2023.
| June 30, 2023 |  |
(dollars in thousands) | 30-59 Days past due |  | 60-89 Days past due |  | 90 Days or more past due |  | Current |  | Total |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial, including specialty lending | $ | — |  |  | $ | — |  |  | $ | 169 |  |  | $ | — |  |  | $ | 169 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied | — |  |  | — |  |  | 169 |  |  | — |  |  | 169 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing | — |  |  | — |  |  | — |  |  | 350 |  |  | 350 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal installment | 492 |  |  | 459 |  |  | 63 |  |  | 7,586 |  |  | 8,600 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total | $ | 492 |  |  | $ | 459 |  |  | $ | 401 |  |  | $ | 7,936 |  |  | $ | 9,288 |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of June 30, 2023, the loans that were made to borrowers experiencing financial difficulty during the six months ended June 30, 2023 that subsequently defaulted were not material. 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 and six months ended June 30, 2022. There were no modifications that involved forgiveness of debt for the three and six months ended June 30, 2022.
|  |  |  |  | Three Months Ended June 30, 2022 |  |  |  |  |  | Six Months Ended June 30, 2022
(dollars in thousands) |  |  |  |  | Number of loans |  | Recorded investment |  |  |  |  |  | Number of loans |  | Recorded investment
Interest-rate reductions |  |  |  |  | 4 |  |  | $ | 124 |  |  |  |  |  |  | 14 |  |  | $ | 470 |
Other (1) |  |  |  |  | 67 |  |  | 743 |  |  |  |  |  |  | 99 |  |  | 1,194 |
Total |  |  |  |  | 71 |  |  | $ | 867 |  |  |  |  |  |  | 113 |  |  | $ | 1,664 |
(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.
| June 30, 2022 |  |  |  |
(dollars in thousands) | Number of loans |  | Recorded investment |  |  |  |  |  |  |  |
Manufactured housing | 4 |  |  | $ | 94 |  |  |  |  |  |  |  |  |
Residential real estate | 1 |  |  | 119 |  |  |  |  |  |  |  |  |
Installment | 38 |  |  | 473 |  |  |  |  |  |  |  |  |
Total loans | 43 |  |  | $ | 686 |  |  |  |  |  |  |  |  |
Loans modified in TDRs were evaluated for impairment. The nature and extent of impairment of TDRs, including those which had experienced a subsequent default, was 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 June 30, 2023 and December 31, 2022.
| Term Loans Amortized Cost Basis by Origination Year as of June 30, 2023 |  |  |  |  |  |
(amounts in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Commercial and industrial loans and leases, including specialty lending: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 743,652 |  |  | $ | 2,468,753 |  |  | $ | 596,056 |  |  | $ | 215,938 |  |  | $ | 154,366 |  |  | $ | 76,197 |  |  | $ | 2,184,999 |  |  | $ | 72,498 |  |  | $ | 6,512,459 |
Special mention (1) | 18,000 |  |  | 182 |  |  | 20,349 |  |  | 100 |  |  | — |  |  | 149 |  |  | 5,116 |  |  | 112 |  |  | 44,008 |
Substandard (1) | — |  |  | 16,860 |  |  | 22,839 |  |  | 29,322 |  |  | 10,928 |  |  | 45,026 |  |  | 7,865 |  |  | — |  |  | 132,840 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial and industrial loans and leases | $ | 761,652 |  |  | $ | 2,485,795 |  |  | $ | 639,244 |  |  | $ | 245,360 |  |  | $ | 165,294 |  |  | $ | 121,372 |  |  | $ | 2,197,980 |  |  | $ | 72,610 |  |  | $ | 6,689,307 |
Commercial and industrial loans and leases charge-offs (2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | 222 |  |  | $ | 16 |  |  | $ | 26 |  |  | $ | 24 |  |  | $ | 144 |  |  | $ | — |  |  | $ | — |  |  | $ | 432 |
Six Months Ended June 30, 2023 | — |  |  | 222 |  |  | 23 |  |  | 26 |  |  | 24 |  |  | 297 |  |  | — |  |  | — |  |  | 592 |
| Term Loans Amortized Cost Basis by Origination Year as of June 30, 2023 |  |  |  |  |  |
(amounts in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Multifamily loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 580 |  |  | $ | 1,250,428 |  |  | $ | 360,461 |  |  | $ | 128,996 |  |  | $ | 21,778 |  |  | $ | 277,797 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,040,040 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 72,033 |  |  | — |  |  | — |  |  | 72,033 |
Substandard | — |  |  | — |  |  | 1,485 |  |  | — |  |  | — |  |  | 38,176 |  |  | — |  |  | — |  |  | 39,661 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total multifamily loans | $ | 580 |  |  | $ | 1,250,428 |  |  | $ | 361,946 |  |  | $ | 128,996 |  |  | $ | 21,778 |  |  | $ | 388,006 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,151,734 |
Multifamily loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,448 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,448 |
Six Months Ended June 30, 2023 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,448 |  |  | — |  |  | — |  |  | 1,448 |
Commercial real estate owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 26,963 |  |  | $ | 282,131 |  |  | $ | 214,253 |  |  | $ | 89,565 |  |  | $ | 82,882 |  |  | $ | 128,916 |  |  | $ | — |  |  | $ | — |  |  | $ | 824,710 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | 350 |  |  | 182 |  |  | — |  |  | — |  |  | 532 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16,800 |  |  | — |  |  | — |  |  | 16,800 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate owner occupied loans | $ | 26,963 |  |  | $ | 282,131 |  |  | $ | 214,253 |  |  | $ | 89,565 |  |  | $ | 83,232 |  |  | $ | 145,898 |  |  | $ | — |  |  | $ | — |  |  | $ | 842,042 |
Commercial real estate owner occupied loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2023 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Commercial real estate non-owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 2,918 |  |  | $ | 334,317 |  |  | $ | 116,796 |  |  | $ | 150,408 |  |  | $ | 72,431 |  |  | $ | 401,371 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,078,241 |
Special mention | — |  |  | — |  |  | — |  |  | 20,958 |  |  | 17,550 |  |  | 11,342 |  |  | — |  |  | — |  |  | 49,850 |
Substandard | — |  |  | 10,910 |  |  | — |  |  | — |  |  | 10,742 |  |  | 61,348 |  |  | — |  |  | — |  |  | 83,000 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate non-owner occupied loans | $ | 2,918 |  |  | $ | 345,227 |  |  | $ | 116,796 |  |  | $ | 171,366 |  |  | $ | 100,723 |  |  | $ | 474,061 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,211,091 |
Commercial real estate non-owner occupied loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 288 |  |  | $ | — |  |  | $ | — |  |  | $ | 288 |
Six Months Ended June 30, 2023 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,527 |  |  | — |  |  | — |  |  | 4,527 |
Construction loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 971 |  |  | $ | 116,169 |  |  | $ | 42,119 |  |  | $ | 9,861 |  |  | $ | 28,289 |  |  | $ | 13,660 |  |  | $ | — |  |  | $ | 1,100 |  |  | $ | 212,169 |
Special mention | 45 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 45 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total construction loans | $ | 1,016 |  |  | $ | 116,169 |  |  | $ | 42,119 |  |  | $ | 9,861 |  |  | $ | 28,289 |  |  | $ | 13,660 |  |  | $ | — |  |  | $ | 1,100 |  |  | $ | 212,214 |
Construction loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2023 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial loans and leases receivable | $ | 793,129 |  |  | $ | 4,479,750 |  |  | $ | 1,374,358 |  |  | $ | 645,148 |  |  | $ | 399,316 |  |  | $ | 1,142,997 |  |  | $ | 2,197,980 |  |  | $ | 73,710 |  |  | $ | 11,106,388 |
Total commercial loans and leases receivable charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | 222 |  |  | $ | 16 |  |  | $ | 26 |  |  | $ | 24 |  |  | $ | 1,880 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,168 |
Six Months Ended June 30, 2023 | — |  |  | 222 |  |  | 23 |  |  | 26 |  |  | 24 |  |  | 6,272 |  |  | — |  |  | — |  |  | 6,567 |
| Term Loans Amortized Cost Basis by Origination Year as of June 30, 2023 |  |  |  |  |  |
(amounts in thousands) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Residential real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 6,135 |  |  | $ | 176,946 |  |  | $ | 137,037 |  |  | $ | 6,926 |  |  | $ | 15,872 |  |  | $ | 75,906 |  |  | $ | 61,598 |  |  | $ | — |  |  | $ | 480,420 |
Non-performing | — |  |  | 1,228 |  |  | 632 |  |  | 232 |  |  | 427 |  |  | 4,066 |  |  | 194 |  |  | — |  |  | 6,779 |
Total residential real estate loans | $ | 6,135 |  |  | $ | 178,174 |  |  | $ | 137,669 |  |  | $ | 7,158 |  |  | $ | 16,299 |  |  | $ | 79,972 |  |  | $ | 61,792 |  |  | $ | — |  |  | $ | 487,199 |
Residential real estate loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 27 |  |  | $ | — |  |  | $ | — |  |  | $ | 27 |
Six Months Ended June 30, 2023 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | — |  |  | — |  |  | 27 |
Manufactured housing loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 199 |  |  | $ | 38,549 |  |  | $ | — |  |  | $ | — |  |  | $ | 38,748 |
Non-performing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,916 |  |  | — |  |  | — |  |  | 2,916 |
Total manufactured housing loans | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 199 |  |  | $ | 41,465 |  |  | $ | — |  |  | $ | — |  |  | $ | 41,664 |
Manufactured housing loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2023 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Installment loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 51,195 |  |  | $ | 426,913 |  |  | $ | 306,319 |  |  | $ | 85,210 |  |  | $ | 57,912 |  |  | $ | 4,403 |  |  | $ | 57,088 |  |  | $ | — |  |  | $ | 989,040 |
Non-performing | — |  |  | 6,982 |  |  | 4,743 |  |  | 840 |  |  | 682 |  |  | 141 |  |  | 89 |  |  | — |  |  | 13,477 |
Total installment loans | $ | 51,195 |  |  | $ | 433,895 |  |  | $ | 311,062 |  |  | $ | 86,050 |  |  | $ | 58,594 |  |  | $ | 4,544 |  |  | $ | 57,177 |  |  | $ | — |  |  | $ | 1,002,517 |
Installment loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | 1,764 |  |  | $ | 5,627 |  |  | $ | 5,635 |  |  | $ | 1,438 |  |  | $ | 1,533 |  |  | $ | 387 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,384 |
Six Months Ended June 30, 2023 | 3,488 |  |  | 9,819 |  |  | 12,491 |  |  | 3,093 |  |  | 3,466 |  |  | 742 |  |  | — |  |  | — |  |  | 33,099 |
Total consumer loans | $ | 57,330 |  |  | $ | 612,069 |  |  | $ | 448,731 |  |  | $ | 93,208 |  |  | $ | 75,092 |  |  | $ | 125,981 |  |  | $ | 118,969 |  |  | $ | — |  |  | $ | 1,531,380 |
Total consumer loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | 1,764 |  |  | $ | 5,627 |  |  | $ | 5,635 |  |  | $ | 1,438 |  |  | $ | 1,533 |  |  | $ | 414 |  |  | $ | — |  |  | $ | — |  |  | $ | 16,411 |
Six Months Ended June 30, 2023 | 3,488 |  |  | 9,819 |  |  | 12,491 |  |  | 3,093 |  |  | 3,466 |  |  | 769 |  |  | — |  |  | — |  |  | 33,126 |
Loans and leases receivable | $ | 850,459 |  |  | $ | 5,091,819 |  |  | $ | 1,823,089 |  |  | $ | 738,356 |  |  | $ | 474,408 |  |  | $ | 1,268,978 |  |  | $ | 2,316,949 |  |  | $ | 73,710 |  |  | $ | 12,637,768 |
Loans and leases receivable charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2023 | $ | 1,764 |  |  | $ | 5,849 |  |  | $ | 5,651 |  |  | $ | 1,464 |  |  | $ | 1,557 |  |  | $ | 2,294 |  |  | $ | — |  |  | $ | — |  |  | $ | 18,579 |
Six Months Ended June 30, 2023 | $ | 3,488 |  |  | $ | 10,041 |  |  | $ | 12,514 |  |  | $ | 3,119 |  |  | $ | 3,490 |  |  | $ | 7,041 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,693 |
(1) Includes $24.3 million of Specialty Lending loans rated Special Mention and $2.1 million rated Substandard at June 30, 2023 that were acquired from the FDIC on June 15, 2023. (2) Excludes $6.2 million of charge-offs for certain PCD loans against $8.7 million of allowance for credit losses on PCD loans recognized upon acquisition of a Venture Banking loan portfolio (included within Specialty Lending) from the FDIC on June 15, 2023. These PCD loans were originated in years 2016 to 2022.
| Term Loans Amortized Cost Basis by Origination Year as of December 31, 2022 |  |  |  |  |  |
(amounts in thousands) | 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
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 mention | 11,134 |  |  | 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 loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 339,044 |  |  | $ | 119,304 |  |  | $ | 156,281 |  |  | $ | 73,827 |  |  | $ | 62,237 |  |  | $ | 386,235 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,136,928 |
Special mention | — |  |  | — |  |  | 21,211 |  |  | — |  |  | — |  |  | 10,617 |  |  | — |  |  | — |  |  | 31,828 |
Substandard | 10,910 |  |  | — |  |  | — |  |  | 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 loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
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-performing | 271 |  |  | 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-performing | 5,164 |  |  | 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 and six months ended June 30, 2023 and 2022:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(amounts in thousands) | 2023 |  | 2022 |  | 2023 |  | 2022
Purchases (1) |  |  |  |  |  |  |
Specialty lending | $ | 631,252 |  |  | $ | — |  |  | $ | 631,252 |  |  | $ | — |
Other commercial and industrial | 4,863 |  |  | — |  |  | 10,308 |  |  | — |
Commercial real estate owner occupied | — |  |  | — |  |  | 2,867 |  |  | — |
Residential real estate | — |  |  | 8,081 |  |  | 4,238 |  |  | 154,955 |
Personal installment (2) | — |  |  | 16,551 |  |  | — |  |  | 76,007 |
Total | $ | 636,115 |  |  | $ | 24,632 |  |  | $ | 648,665 |  |  | $ | 230,962 |
Sales (3) |  |  |  |  |  |  |
Specialty lending (4) | $ | 287,185 |  |  | $ | — |  |  | $ | 287,185 |  |  | $ | — |
Other commercial and industrial (5) | 47,358 |  |  | 14,040 |  |  | 47,358 |  |  | 22,880 |
Multifamily | — |  |  | 2,879 |  |  | — |  |  | 2,879 |
Commercial real estate owner occupied (5) | 18,851 |  |  | 3,519 |  |  | 18,851 |  |  | 8,960 |
Commercial real estate non-owner occupied | 16,000 |  |  | — |  |  | 16,000 |  |  | — |
Other installment | 154,042 |  |  | — |  |  | 154,042 |  |  | — |
Total | $ | 523,436 |  |  | $ | 20,438 |  |  | $ | 523,436 |  |  | $ | 34,719 |
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 85.1% and 98.9% of the loans' unpaid principal balance for the three months ended June 30, 2023 and 2022, respectively. The purchase price was 85.5% and 98.2% of the loans' unpaid principal balance for the six months ended June 30, 2023 and 2022, respectively. (2)Installment loan purchases for the three and six months ended June 30, 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)For the three months ended June 30, 2023 and 2022, sales of loans held for investment resulted in net gains of $0.4 million and $1.5 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, 2023 and 2022, sales of loans held for investment resulted in net gains of $0.4 million and $3.6 million, respectively. (4)Includes a loss of $5.0 million from the sale of $670.0 million of short-term syndicated capital call lines of credit ($280.7 million of loans held for investment in unpaid principal balance and $389.3 million of unfunded loan commitments) included in the consolidated statements of income for the three and six months ended June 30, 2023. (5)Primarily sales of SBA loans. On June 15, 2023, Customers acquired $631.0 million of a Venture Banking loan portfolio at a discount from the FDIC, including $228.7 million of PCD loans. The reconciliation between the purchase price and the unpaid principal balance of the PCD loans was as follows:
(amounts in thousands) |  |
PCD loans acquired: |  |
Unpaid principal balance |  | $ | 228,700 |
Unamortized discount |  | (25,509) |
Allowance for credit losses |  | (8,736) |
Purchase price |  | $ | 194,455 |
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 $8.6 billion and $7.1 billion at June 30, 2023 and December 31, 2022, respectively.

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