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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Schedule of Loans and Leases Receivable
The following table presents loans and leases receivable as of June 30, 2023 and December 31, 2022.
(amounts in thousands)June 30, 2023December 31, 2022
Loans and leases receivable, mortgage warehouse, at fair value$1,006,268 $1,323,312 
Loans receivable, PPP188,763 998,153 
Loans and leases receivable:
Commercial:
Commercial and industrial:
Specialty lending (1)
5,534,832 5,412,887 
Other commercial and industrial1,154,475 1,259,943 
Multifamily2,151,734 2,213,019 
Commercial real estate owner occupied842,042 885,339 
Commercial real estate non-owner occupied1,211,091 1,290,730 
Construction212,214 162,009 
Total commercial loans and leases receivable11,106,388 11,223,927 
Consumer:
Residential real estate487,199 497,952 
Manufactured housing41,664 45,076 
Installment:
Personal752,470 964,641 
Other250,047 413,298 
Total consumer loans receivable1,531,380 1,920,967 
Loans and leases receivable12,637,768 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.
Loans and Leases Receivable by Loan Type and Performance Status
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 estate1,751 1,586 3,764 7,101 480,098 487,199 
Manufactured housing380 506 3,538 4,424 37,240 41,664 
Installment9,558 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 
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 $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.
Amortized cost of Loans and Leases on Nonaccrual Status
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 allowanceNonaccrual loans with related allowanceTotal nonaccrual loansNonaccrual loans with no related allowanceNonaccrual loans with related allowanceTotal nonaccrual loans
Commercial and industrial, including specialty lending$3,281 $1,160 $4,441 $1,731 $30 $1,761 
Multifamily4,022 — 4,022 1,143 — 1,143 
Commercial real estate owner occupied3,304 — 3,304 2,768 — 2,768 
Residential real estate7,306 — 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.
Schedule of 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)
MultifamilyCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
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)
Recoveries174 — 34 22 — 3 — 2,782 3,015 
Provision (benefit) for credit losses on loans and leases6,724 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)
Recoveries405 — 34 27 116 5 — 4,891 $5,478 
Provision (benefit) for credit losses on loans and leases9,121 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)
MultifamilyCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
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)
Recoveries692 — 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)
Recoveries1,053 337 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.
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment
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 ExtensionPayment DeferralDebt ForgivenessInterest Rate Reduction and Term ExtensionTotalPercentage of Total by Financing Class
Manufactured housing$52 $— $— $229 $281 0.67 %
Personal installment3,540 180 183 — 3,903 0.52 %
Total$3,592 $180 $183 $229 $4,184 
Six Months Ended June 30, 2023
(dollars in thousands)Term ExtensionPayment DeferralDebt ForgivenessInterest Rate Reduction and Term ExtensionTotalPercentage of Total by Financing Class
Commercial and industrial, including specialty lending$169 $— $— $— $169 0.00 %
Commercial real estate owner occupied169 — — — 169 0.02 %
Manufactured housing59 — — 291 350 0.84 %
Personal installment8,067 269 264 — 8,600 1.14 %
Total$8,464 $269 $264 $291 $9,288 
The following table summarizes the impacts of loan modifications made to borrowers experiencing financial difficulty for the three and six months ended June 30, 2023.
Three Months Ended June 30, 2023
Weighted Average
(dollars in thousands)Interest Rate Reduction (%)Term Extension
(in months)		Payment Deferral
(in months)		Debt Forgiven
Manufactured housing3.5%470$— 
Personal installment—56100 
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—%40$— 
Commercial real estate owner occupied—40— 
Manufactured housing2.9%490— 
Personal installment—56166 
The performance of loans made to borrowers experiencing financial difficulty in which modifications were made is closely monitored to understand the effectiveness of modification efforts. Loans are considered to be in payment default at 90 days or more past due. The following table presents an aging analysis of loan modifications made to borrowers experiencing financial difficulty during the six months ended June 30, 2023.
June 30, 2023
(dollars in thousands)30-59 Days past due60-89 Days past due90 Days or more past dueCurrentTotal
Commercial and industrial, including specialty lending$— $— $169 $— $169 
Commercial real estate owner occupied— — 169 — 169 
Manufactured housing— — — 350 350 
Personal installment492 459 63 7,586 8,600 
Total$492 $459 $401 $7,936 $9,288 
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, 2022Six Months Ended June 30, 2022
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investment
Interest-rate reductions4 $124 14 $470 
Other (1)
67 743 99 1,194 
Total71 $867 113 $1,664 
(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.
Financing Receivable, Modified, Subsequent Default 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 loansRecorded investment
Manufactured housing4 $94 
Residential real estate1 119 
Installment38 473 
Total loans43 $686 
Credit Ratings of Covered and Non-Covered Loan Portfolio 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)20232022202120202019PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
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)20232022202120202019PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
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 mention45 — — — — — — — 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)20232022202120202019PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
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, 20233,488 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, 20233,488 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)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 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 
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 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-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 
Schedule of 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)2023202220232022
Purchases (1)
Specialty lending$631,252 $— $631,252 $— 
Other commercial and industrial4,863 — 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 occupied16,000 — 16,000 — 
Other installment154,042 — 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.
Reconciliation of Purchase Price, Loans Purchased with Credit Deterioration 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