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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Loans and Leases Receivable
The following table presents loans and leases receivable as of December 31, 2023 and 2022:
December 31,
(amounts in thousands)20232022
Loans receivable, mortgage warehouse, at fair value$897,912 $1,323,312 
Loans receivable, PPP74,735 998,153 
Loans and leases receivable:
Commercial:
Commercial and industrial:
Specialty lending (1)
5,006,693 5,412,887 
Other commercial and industrial1,204,412 1,259,943 
Multifamily2,138,622 2,213,019 
Commercial real estate owner occupied797,319 885,339 
Commercial real estate non-owner occupied1,177,650 1,290,730 
Construction166,393 162,009 
Total commercial loans and leases receivable10,491,089 11,223,927 
Consumer:
Residential real estate484,435 497,952 
Manufactured housing38,670 45,076 
Installment:
Personal555,533 964,641 
Other319,393 413,298 
Total consumer loans receivable1,398,031 1,920,967 
Loans and leases receivable11,889,120 13,144,894 
Allowance for credit losses on loans and leases(135,311)(130,924)
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2)
$12,726,456 $15,335,435 
(1)Includes direct finance equipment leases of $205.7 million and $157.4 million at December 31, 2023 and 2022, respectively.
(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(22.7) million and $(21.5) million at December 31, 2023 and 2022, respectively.
Loans Receivable by Class and Performance Status
The following tables summarize loans and leases receivable by loan and lease type and performance status as of December 31, 2023 and 2022:
December 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)(4)
Total loans and leases (4)
Commercial and industrial, including specialty lending$1,516 $322 $4,153 $5,991 $6,205,114 $6,211,105 
Multifamily16,003 — — 16,003 2,122,619 2,138,622 
Commercial real estate owner occupied449 3,814 5,827 10,090 787,229 797,319 
Commercial real estate non-owner occupied16,653 — — 16,653 1,160,997 1,177,650 
Construction— — — — 166,393 166,393 
Residential real estate10,504 2,255 3,764 16,523 467,912 484,435 
Manufactured housing1,152 343 2,869 4,364 34,306 38,670 
Installment9,255 7,866 7,211 24,332 850,594 874,926 
Total$55,532 $14,600 $23,824 $93,956 $11,795,164 $11,889,120 
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 $0.5 million and $1.9 million as of December 31, 2023 and 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 $74.7 million, of which $0.7 million were 30-59 days past due and $48.5 million were 60 days or more past due as of December 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 that are more than 60 days past due.
(4)Includes PCD loans of $157.2 million and $8.3 million at December 31, 2023 and 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.
 
December 31, 2023
December 31, 2022
(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$3,365 $1,071 $4,436 $1,731 $30 $1,761 
Multifamily— — — 1,143 — 1,143 
Commercial real estate owner occupied5,869 — 5,869 2,768 — 2,768 
Residential real estate6,685 117 6,802 6,922 — 6,922 
Manufactured housing— 2,331 2,331 — 2,410 2,410 
Installment— 7,211 7,211 — 9,527 9,527 
Total$15,919 $10,730 $26,649 $12,564 $11,967 $24,531 
Schedule of Allowance for Loan Losses
The changes in the ACL on loans and leases by loan and lease type for the years ended December 31, 2023, 2022 and 2021, are presented in the tables below. ACL as of December 31, 2023, 2022 and 2021 is calculated in accordance with the CECL methodology as described in NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION.
(amounts in thousands)
Commercial and industrial (1)
MultifamilyCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
Ending Balance,
December 31, 2020		$12,239 $12,620 $9,512 $19,452 $5,871 $3,977 $5,190 $75,315 $144,176 
Charge-offs(1,550)(1,132)(749)(944)— (130)— (35,876)(40,381)
Recoveries1,102 — 500 84 125 54 — 4,718 6,583 
Provision (benefit) for credit losses on loans and leases911 (7,011)(6,050)(12,382)(5,304)(1,518)(912)59,692 27,426 
Ending Balance,
December 31, 2021		$12,702 $4,477 $3,213 $6,210 $692 $2,383 $4,278 $103,849 $137,804 
Charge-offs
(16,248)(1,990)— (6,075)— (17)— (52,866)(77,196)
Recoveries1,182 337 51 121 236 64 — 8,837 10,828 
Provision (benefit) for credit losses on loans and leases19,946 11,717 3,190 10,963 985 3,664 152 8,871 59,488 
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(16,915)(3,574)(39)(4,527)— (69)— (69,942)(95,066)
Recoveries8,472 — 34 315 116 35 — 17,059 26,031 
Provision (benefit) for credit losses on loans and leases11,788 5,376 3,433 9,852 (547)526 (191)40,609 70,846 
Ending Balance,
December 31, 2023		$23,503 $16,343 $9,882 $16,859 $1,482 $6,586 $4,239 $56,417 $135,311 
(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 Recorded Investments
The following table presents the amortized cost of loans that were modified to borrowers experiencing financial difficulty for the year ended December 31, 2023, disaggregated by class of financing receivable and type of modification granted.
For the Year Ended December 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$250 $14,791 $— $— $15,041 0.24 %
Commercial real estate owner occupied169 — — — 169 0.02 %
Residential real estate46 — — — 46 0.01 %
Manufactured housing158 — — 664 822 2.13 %
Personal installment14,075 756 312 — 15,143 2.73 %
Total$14,698 $15,547 $312 $664 $31,221 
The following table summarizes the impacts of loan modifications made to borrowers experiencing financial difficulty for the year ended December 31, 2023.
For the Year Ended December 31, 2023
Weighted Average
(dollars in thousands)Interest Rate Reduction (%)Term Extension
(in months)		Payment Deferral
(in months)		Debt Forgiven
Commercial and industrial, including specialty lending—%5610$— 
Commercial real estate owner occupied—40— 
Residential real estate—2280— 
Manufactured housing2.5560— 
Personal installment—56462 
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 year ended December 31, 2023.
December 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$— $— $— $15,041 $15,041 
Commercial real estate owner occupied— — 169 — 169 
Residential real estate— — — 46 46 
Manufactured housing51 31 — 740 822 
Personal installment1,000 785 518 12,840 15,143 
Total$1,051 $816 $687 $28,667 $31,221 
Analysis of Loans Modified in Troubled Debt Restructuring by Type of Concession
The following table presents loans modified in a TDR by type of concession for the years ended December 31, 2022 and 2021. There were no modifications that involved forgiveness of debt for the years ended December 31, 2022 and 2021.
 For the Years Ended December 31,
20222021
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investment
Interest-rate reductions18 $582 17 $622 
Other (1)
241 2,748 185 2,875 
Total259 $3,330 202 $3,497 
(1) Other includes covenant modifications, forbearance, loans discharged under Chapter 7 bankruptcy, or other concessions.
Summary of Loans Modified in Troubled Debt Restructurings and Related Recorded Investment Within Twelve Months
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:
December 31, 2022December 31, 2021
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investment
Installment212 $2,206 21 $263 
Residential real estate2 201 1 121 
Manufactured housing15 491 2 71 
Total loans229 $2,898 24 $455 
Credit Quality Tables The following tables present the credit ratings of loans and leases receivable and current period gross write-offs as of December 31, 2023 and 2022.
Term Loans Amortized Cost Basis by Origination Year as of December 31, 2023
(amounts in thousands)20232022202120202019PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial and industrial loans and leases, including specialty lending:
Pass$1,184,923 $1,909,592 $483,039 $170,384 $59,213 $63,480 $1,722,559 $384,947 $5,978,137 
Special mention
18,000 3,377 5,127 1,986 — 595 7,916 2,903 39,904 
Substandard
14,738 39,258 61,533 26,660 4,803 42,062 4,010 — 193,064 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$1,217,661 $1,952,227 $549,699 $199,030 $64,016 $106,137 $1,734,485 $387,850 $6,211,105 
Commercial and industrial loans and leases charge-offs:
For the Year Ended December 31, 2023 (1)(2)
$1,483 $381 $3,169 $10,348 $24 $1,510 $— $— $16,915 
Multifamily loans:
Pass$845 $1,229,198 $371,016 $127,493 $43,046 $253,806 $— $— $2,025,404 
Special mention— — — — 6,468 67,035 — — 73,503 
Substandard— — — — — 39,715 — — 39,715 
Doubtful— — — — — — — — — 
Total multifamily loans$845 $1,229,198 $371,016 $127,493 $49,514 $360,556 $— $— $2,138,622 
Multifamily loans charge-offs:
For the Year Ended December 31, 2023$— $— $— $— $— $3,574 $— $— $3,574 
Commercial real estate owner occupied loans:
Pass$41,011 $254,878 $180,289 $77,821 $44,382 $120,248 $— $11,318 $729,947 
Special mention— — 15,432 — 35,691 47 — — 51,170 
Substandard— — — — 347 15,855 — — 16,202 
Doubtful— — — — — — — — — 
Total commercial real estate owner occupied loans$41,011 $254,878 $195,721 $77,821 $80,420 $136,150 $— $11,318 $797,319 
Commercial real estate owner occupied loans charge-offs:
For the Year Ended December 31, 2023$— $— $— $— $— $39 $— $— $39 
Commercial real estate non-owner occupied loans:
Pass$12,906 $325,881 $109,521 $152,227 $88,586 $367,996 $— $— $1,057,117 
Special mention— — — 20,702 — 9,148 — — 29,850 
Substandard— 10,910 — — 8,113 71,660 — — 90,683 
Doubtful— — — — — — — — 
Total commercial real estate non-owner occupied loans$12,906 $336,791 $109,521 $172,929 $96,699 $448,804 $— $— $1,177,650 
Commercial real estate non-owner occupied loans charge-offs:
For the Year Ended December 31, 2023$— $— $— $— $— $4,527 $— $— $4,527 
Term Loans Amortized Cost Basis by Origination Year as of December 31, 2023
(amounts in thousands)20232022202120202019PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Construction loans:
Pass$17,594 $138,797 $2,567 $— $— $4,580 $— $1,100 $164,638 
Special mention1,755 — — — — — — — 1,755 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$19,349 $138,797 $2,567 $— $— $4,580 $— $1,100 $166,393 
Construction loans charge-offs:
For the Year Ended December 31, 2023$— $— $— $— $— $— $— $— $— 
Total commercial loans and leases receivable$1,291,772 $3,911,891 $1,228,524 $577,273 $290,649 $1,056,227 $1,734,485 $400,268 $10,491,089 
Total commercial loans and leases receivable charge-offs:
For the Year Ended December 31, 2023$1,483 $381 $3,169 $10,348 $24 $9,650 $— $— $25,055 
Residential real estate loans:
Performing$22,613 $173,424 $131,621 $6,458 $15,508 $71,433 $56,844 $— $477,901 
Non-performing— 350 1,236 229 545 3,993 181 — 6,534 
Total residential real estate loans$22,613 $173,774 $132,857 $6,687 $16,053 $75,426 $57,025 $— $484,435 
Residential real estate loans charge-offs:
For the Year Ended December 31, 2023$— $— $— $— $— $69 $— $— $69 
Manufactured housing loans:
Performing$— $— $— $— $98 $36,464 $— $— $36,562 
Non-performing— — — — — 2,108 — — 2,108 
Total manufactured housing loans$— $— $— $— $98 $38,572 $— $— $38,670 
Manufactured housing loans charge-offs:
For the Year Ended December 31, 2023$— $— $— $— $— $— $— $— $— 
Installment loans:
Performing$253,958 $307,566 $158,381 $50,354 $39,953 $3,448 $51,480 $— $865,140 
Non-performing2,634 4,102 1,751 546 477 86 190 — 9,786 
Total installment loans$256,592 $311,668 $160,132 $50,900 $40,430 $3,534 $51,670 $— $874,926 
Installment loans charge-offs:
For the Year Ended December 31, 2023$7,728 $24,605 $23,984 $5,590 $6,797 $1,238 $— $— $69,942 
Total consumer loans$279,205 $485,442 $292,989 $57,587 $56,581 $117,532 $108,695 $— $1,398,031 
Total consumer loans charge-offs:
For the Year Ended December 31, 2023$7,728 $24,605 $23,984 $5,590 $6,797 $1,307 $— $— $70,011 
Loans and leases receivable$1,570,977 $4,397,333 $1,521,513 $634,860 $347,230 $1,173,759 $1,843,180 $400,268 $11,889,120 
Loans and leases receivable charge-offs:
For the Year Ended December 31, 2023$9,211 $24,986 $27,153 $15,938 $6,821 $10,957 $— $— $95,066 
(1)    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.
(2)    Charge-offs for the years ended December 31, 2023 and 2022 included $10.7 million and $11.0 million, respectively, of commercial and industrial loans originated under the PPP that were subsequently determined to be ineligible for SBA forgiveness and guarantee and were ultimately deemed uncollectible.
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 held for investment were as follows for the years ended December 31, 2023, 2022 and 2021:
For the Years Ended December 31,
(amounts in thousands)202320222021
Purchases (1)
Specialty lending$631,252 $— $— 
Other commercial and industrial22,073 2,975 — 
Commercial real estate owner occupied2,867 — — 
Loans receivable, PPP— — 1,536,213 
Residential real estate4,238 207,251 92,939 
Personal installment (2)
— 123,785 178,970 
Other installment (2)
96,758 149,969 99,100 
Total$757,188 $483,980 $1,907,222 
Sales (3)
Specialty lending (4)
$287,185 $2,200 $— 
Other commercial and industrial (5)
54,083 22,880 47,142 
Multifamily— 2,879 36,900 
Commercial real estate owner occupied (5)
24,522 8,960 19,420 
Commercial real estate non-owner occupied16,000 — 18,366 
Residential real estate— — 63,932 
Personal installment (6)
— 500,001 212,255 
Other installment154,042 — — 
Total$535,832 $536,920 $398,015 
(1)Amounts reported represent the unpaid principal balance at time of purchase. The purchase price was 87.9%, 99.1% and 100.8% of the loans’ unpaid principal balance for the years ended December 31, 2023, 2022 and 2021, respectively.
(2)Installment loan purchases for the years ended December 31, 2023, 2022 and 2021 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 years ended December 31, 2023, 2022 and 2021, sales of loans held for investment resulted in net gains of $0.2 million, $3.2 million and $11.3 million, respectively, included in gain (loss) on sale of SBA and other loans in the consolidated statements of income.
(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 loss on sale of capital call lines of credit in the consolidated statement of income for the year ended December 31, 2023.
(5)Primarily sales of SBA loans.
(6)Customers sold $521.8 million of consumer installment loans held for investment, inclusive of accrued interest and unamortized deferred loan origination costs, to a third-party sponsored VIE for a loss of $23.5 million included in loss on sale of consumer installment loans in the consolidated statement of income for the year ended December 31, 2022. Customers provided financing to the purchaser for a portion of the sales price in the form of $400.0 million of asset-backed securities. $100.7 million of the remaining sales proceeds were paid in cash. Refer to “NOTE 6 – INVESTMENT SECURITIES” for additional information.
Reconciliation of Purchase Price 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