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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, 2025
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, 2025 and December 31, 2024:
(amounts in thousands) | June 30, 2025 |  | December 31, 2024
Loans and leases receivable: |  |  |
Commercial: |  |  |
Commercial and industrial: |  |  |
Specialized lending (1) | $ | 6,454,661 |  |  | $ | 5,842,420 |
Other commercial and industrial | 1,127,194 |  |  | 1,182,350 |
Multifamily | 2,247,282 |  |  | 2,252,246 |
Commercial real estate owner occupied | 1,065,006 |  |  | 1,100,944 |
Commercial real estate non-owner occupied | 1,497,385 |  |  | 1,359,130 |
Construction | 98,626 |  |  | 147,209 |
Total commercial loans and leases receivable | 12,490,154 |  |  | 11,884,299 |
Consumer: |  |  |
Residential real estate | 520,570 |  |  | 496,559 |
Manufactured housing | 30,287 |  |  | 33,123 |
Installment: |  |  |
Personal | 457,728 |  |  | 463,854 |
Other | 221,090 |  |  | 249,799 |
Total consumer loans receivable | 1,229,675 |  |  | 1,243,335 |
Loans and leases receivable | 13,719,829 |  |  | 13,127,634 |
Loans receivable, mortgage finance, at fair value | 1,536,254 |  |  | 1,321,128 |
Loans receivable, installment, at fair value | 123,354 |  |  | — |
Allowance for credit losses on loans and leases | (147,418) |  |  | (136,775) |
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2) | $ | 15,232,019 |  |  | $ | 14,311,987 |
(1)Includes direct finance and sales-type equipment leases of $264.3 million and $262.7 million at June 30, 2025 and December 31, 2024, respectively. (2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(47.2) million and $(20.8) million at June 30, 2025 and December 31, 2024, respectively. Customers’ total loans and leases receivable includes loans receivable reported at fair value based on an election made to account for these loans at fair value and loans and leases receivable predominately reported at their outstanding unpaid principal balance, net of charge-offs, deferred costs and fees and unamortized premiums and discounts, and evaluated for impairment. The total amount of accrued interest recorded for total loans was $85.9 million and $88.2 million at June 30, 2025 and December 31, 2024, respectively, and is presented in accrued interest receivable in the consolidated balance sheet. At June 30, 2025 and December 31, 2024, there were $18.3 million and $31.9 million of individually evaluated loans that were collateral-dependent, respectively. Substantially all individually evaluated loans are collateral-dependent and consisted primarily of commercial and industrial, commercial real estate, and residential real estate loans. Collateral-dependent commercial and industrial loans were secured by accounts receivable, inventory and equipment; collateral-dependent commercial real estate loans were secured by commercial real estate assets; and residential real estate loans were secured by residential real estate assets. Loans and leases receivable The following tables summarize loans and leases receivable by loan and lease type and performance status as of June 30, 2025 and December 31, 2024:
| June 30, 2025
(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 specialized lending | $ | 5,611 |  |  | $ | 1,492 |  |  | $ | 3,548 |  |  | $ | 10,651 |  |  | $ | 7,560,142 |  |  | $ | 7,570,793 |
Multifamily | — |  |  | — |  |  | — |  |  | — |  |  | 2,247,282 |  |  | 2,247,282 |
Commercial real estate owner occupied | 533 |  |  | — |  |  | 7,004 |  |  | 7,537 |  |  | 1,057,469 |  |  | 1,065,006 |
Commercial real estate non-owner occupied | — |  |  | — |  |  | 62 |  |  | 62 |  |  | 1,497,323 |  |  | 1,497,385 |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | 98,626 |  |  | 98,626 |
Residential real estate | 6,279 |  |  | 2,935 |  |  | 3,769 |  |  | 12,983 |  |  | 507,587 |  |  | 520,570 |
Manufactured housing | 439 |  |  | 196 |  |  | 1,906 |  |  | 2,541 |  |  | 27,746 |  |  | 30,287 |
Installment | 4,843 |  |  | 6,507 |  |  | 4,944 |  |  | 16,294 |  |  | 662,524 |  |  | 678,818 |
Total | $ | 17,705 |  |  | $ | 11,130 |  |  | $ | 21,233 |  |  | $ | 50,068 |  |  | $ | 13,658,699 |  |  | $ | 13,708,767 |
| December 31, 2024
(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 specialized lending | $ | 3,655 |  |  | $ | 19,854 |  |  | $ | 3,606 |  |  | $ | 27,115 |  |  | $ | 6,974,904 |  |  | $ | 7,002,019 |
Multifamily | — |  |  | — |  |  | 11,834 |  |  | 11,834 |  |  | 2,240,412 |  |  | 2,252,246 |
Commercial real estate owner occupied | 11,395 |  |  | — |  |  | 8,071 |  |  | 19,466 |  |  | 1,081,478 |  |  | 1,100,944 |
Commercial real estate non-owner occupied | — |  |  | — |  |  | 17,007 |  |  | 17,007 |  |  | 1,342,123 |  |  | 1,359,130 |
Construction | — |  |  | — |  |  | — |  |  | — |  |  | 147,209 |  |  | 147,209 |
Residential real estate | 9,541 |  |  | 4,560 |  |  | 3,384 |  |  | 17,485 |  |  | 479,074 |  |  | 496,559 |
Manufactured housing | 766 |  |  | 155 |  |  | 2,262 |  |  | 3,183 |  |  | 29,940 |  |  | 33,123 |
Installment | 7,918 |  |  | 5,108 |  |  | 5,613 |  |  | 18,639 |  |  | 695,014 |  |  | 713,653 |
Total | $ | 33,275 |  |  | $ | 29,677 |  |  | $ | 51,777 |  |  | $ | 114,729 |  |  | $ | 12,990,154 |  |  | $ | 13,104,883 |
(1)Includes past due loans and leases that are accruing interest because collection is considered probable. (2)Includes loans amounting to $4.7 million and $17.1 million as of June 30, 2025 and December 31, 2024, 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. (4)Includes PCD loans of $109.3 million and $126.4 million at June 30, 2025 and December 31, 2024, respectively. Customers acquired $32.1 million of PCD commercial and industrial loans and recognized $1.0 million of allowance for credit losses upon acquisition during the three and six months ended June 30, 2025. Nonaccrual Loans and Leases The following table presents the amortized cost of loans and leases held for investment on nonaccrual status:
| June 30, 2025 |  | December 31, 2024 |  |  |  |
(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 specialized lending | $ | 4,218 |  |  | $ | — |  |  | $ | 4,218 |  |  | $ | 4,041 |  |  | $ | — |  |  | $ | 4,041 |  |  |  |  |  |  |  |  |
Multifamily | — |  |  | — |  |  | — |  |  | 11,834 |  |  | — |  |  | 11,834 |  |  |  |  |  |  |  |  |
Commercial real estate owner occupied | 7,005 |  |  | — |  |  | 7,005 |  |  | 8,090 |  |  | — |  |  | 8,090 |  |  |  |  |  |  |  |  |
Commercial real estate non-owner occupied | 62 |  |  | — |  |  | 62 |  |  | 354 |  |  | — |  |  | 354 |  |  |  |  |  |  |  |  |
Residential real estate | 7,964 |  |  | 270 |  |  | 8,234 |  |  | 8,274 |  |  | 440 |  |  | 8,714 |  |  |  |  |  |  |  |  |
Manufactured housing | — |  |  | 1,608 |  |  | 1,608 |  |  | — |  |  | 1,852 |  |  | 1,852 |  |  |  |  |  |  |  |  |
Installment | — |  |  | 4,944 |  |  | 4,944 |  |  | — |  |  | 5,613 |  |  | 5,613 |  |  |  |  |  |  |  |  |
Total | $ | 19,249 |  |  | $ | 6,822 |  |  | $ | 26,071 |  |  | $ | 32,593 |  |  | $ | 7,905 |  |  | $ | 40,498 |  |  |  |  |  |  |  |  |
Interest income recognized on nonaccrual loans was insignificant for the three and six months ended June 30, 2025 and 2024. Accrued interest reversed when the loans went to nonaccrual status was insignificant for the three and six months ended June 30, 2025 and 2024. Loans receivable, mortgage finance, at fair value Mortgage finance loans consist of commercial loans to mortgage companies. These mortgage finance 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 finance 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 finance 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, 2025 and December 31, 2024, all of Customers’ mortgage finance 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, installment, at fair value Customers has a lending arrangement with a fintech company, which recently was acquired by a bank, whereby Customers has been originating consumer installment loans and holding these loans prior to sale. These consumer installment loans were designated as loans held for sale and reported at fair value based on an election made to account for the loans at fair value. The lending arrangement with this fintech company expired during the three months ended June 30, 2025. Customers transferred these consumer installment loans from held for sale to held for investment during the three months ended March 31, 2025, and continue to be reported at fair value based on an election made to account for the loans at fair value. At June 30, 2025, Customers had $2.0 million of consumer installment loans, at fair value, in nonaccrual status. As these loans are reported at their fair value, they do not have an ACL and are therefore excluded from ACL-related disclosures. 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, 2025 and 2024 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, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, March 31, 2025 | $ | 30,584 |  |  | $ | 18,790 |  |  | $ | 10,780 |  |  | $ | 18,058 |  |  | $ | 1,264 |  |  | $ | 6,163 |  |  | $ | 3,800 |  |  | $ | 51,637 |  |  |  |  | $ | 141,076 |
Allowance for credit losses on PCD loans, net of charge-offs and recoveries (2) | 1,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 1,000 |
Charge-offs | (5,996) |  |  | — |  |  | (417) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (10,750) |  |  |  |  | (17,163) |
Recoveries | 2,125 |  |  | — |  |  | 6 |  |  | — |  |  | 3 |  |  | 4 |  |  | — |  |  | 1,910 |  |  |  |  | 4,048 |
Provision (benefit) for credit losses on loans and leases | 8,549 |  |  | 2,074 |  |  | 2,145 |  |  | 2,621 |  |  | 893 |  |  | 164 |  |  | (79) |  |  | 2,090 |  |  |  |  | 18,457 |
Ending Balance, June 30, 2025 | $ | 36,262 |  |  | $ | 20,864 |  |  | $ | 12,514 |  |  | $ | 20,679 |  |  | $ | 2,160 |  |  | $ | 6,331 |  |  | $ | 3,721 |  |  | $ | 44,887 |  |  |  |  | $ | 147,418 |
Six Months Ended June 30, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, December 31, 2024 | $ | 29,379 |  |  | $ | 18,511 |  |  | $ | 10,755 |  |  | $ | 17,405 |  |  | $ | 1,250 |  |  | $ | 5,968 |  |  | $ | 3,829 |  |  | $ | 49,678 |  |  |  |  | $ | 136,775 |
Allowance for credit losses on PCD loans, net of charge-offs (2) | 1,000 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 1,000 |
Charge-offs | (10,503) |  |  | (3,834) |  |  | (436) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (23,153) |  |  |  |  | (37,926) |
Recoveries | 3,401 |  |  | — |  |  | 9 |  |  | — |  |  | 6 |  |  | 4 |  |  | — |  |  | 4,247 |  |  |  |  | 7,667 |
Provision (benefit) for credit losses on loans and leases | 12,985 |  |  | 6,187 |  |  | 2,186 |  |  | 3,274 |  |  | 904 |  |  | 359 |  |  | (108) |  |  | 14,115 |  |  |  |  | 39,902 |
Ending Balance, June 30, 2025 | $ | 36,262 |  |  | $ | 20,864 |  |  | $ | 12,514 |  |  | $ | 20,679 |  |  | $ | 2,160 |  |  | $ | 6,331 |  |  | $ | 3,721 |  |  | $ | 44,887 |  |  |  |  | $ | 147,418 |
(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, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, March 31, 2024 | $ | 23,003 |  |  | $ | 18,307 |  |  | $ | 10,201 |  |  | $ | 18,320 |  |  | $ | 1,866 |  |  | $ | 6,707 |  |  | $ | 4,160 |  |  | $ | 50,732 |  |  |  |  | $ | 133,296 |
Charge-offs | (7,348) |  |  | (1,433) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (13,943) |  |  |  |  | (22,724) |
Recoveries | 1,683 |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 20 |  |  | — |  |  | 2,303 |  |  |  |  | 4,013 |
Provision (benefit) for credit losses on loans and leases | 6,383 |  |  | 3,778 |  |  | (1,770) |  |  | (354) |  |  | (17) |  |  | (843) |  |  | (66) |  |  | 10,740 |  |  |  |  | 17,851 |
Ending Balance, June 30, 2024 | $ | 23,721 |  |  | $ | 20,652 |  |  | $ | 8,431 |  |  | $ | 17,966 |  |  | $ | 1,856 |  |  | $ | 5,884 |  |  | $ | 4,094 |  |  | $ | 49,832 |  |  |  |  | $ | 132,436 |
Six Months Ended June 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending Balance, December 31, 2023 | $ | 23,503 |  |  | $ | 16,343 |  |  | $ | 9,882 |  |  | $ | 16,859 |  |  | $ | 1,482 |  |  | $ | 6,586 |  |  | $ | 4,239 |  |  | $ | 56,417 |  |  |  |  | $ | 135,311 |
Charge-offs | (12,744) |  |  | (1,906) |  |  | (22) |  |  | — |  |  | — |  |  | (19) |  |  | — |  |  | (30,860) |  |  |  |  | (45,551) |
Recoveries | 3,407 |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 21 |  |  | — |  |  | 5,437 |  |  |  |  | 8,872 |
Provision (benefit) for credit losses on loans and leases | 9,555 |  |  | 6,215 |  |  | (1,429) |  |  | 1,107 |  |  | 367 |  |  | (704) |  |  | (145) |  |  | 18,838 |  |  |  |  | 33,804 |
Ending Balance, June 30, 2024 | $ | 23,721 |  |  | $ | 20,652 |  |  | $ | 8,431 |  |  | $ | 17,966 |  |  | $ | 1,856 |  |  | $ | 5,884 |  |  | $ | 4,094 |  |  | $ | 49,832 |  |  |  |  | $ | 132,436 |
(1) Includes specialized lending. (2) Represents $1.0 million of allowance for credit losses on PCD loans recognized upon acquisition of commercial and industrial loans during the three and six months ended June 30, 2025. At June 30, 2025, the ACL on loans and leases was $147.4 million, an increase of $10.6 million from the December 31, 2024 balance of $136.8 million. The increase in ACL for the three and six months ended June 30, 2025 was primarily attributable to slight deterioration in macroeconomic forecasts and an increase in loan balances held for investment. Loan Modifications for Borrowers Experiencing Financial Difficulty 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. Any contractual reduction in the amount of principal due without receiving payment or assets is considered 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 considers any delay in payment of greater than 90 days in the last twelve 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 tables present the amortized cost of loans that were modified to borrowers experiencing financial difficulty for the three and six months ended June 30, 2025 and 2024, disaggregated by class of financing receivable and type of modification granted:
|  |  | Three Months Ended June 30, 2025 |  |
(dollars in thousands) |  |  | Term Extension |  | Payment Deferral |  | Debt Forgiveness |  | Interest Rate Reduction and Term Extension |  | Total |  | Percentage of Total by Financing Class |  |  |  |  |  |  |  |  |  |  |  |
Personal installment |  |  | $ | 665 |  |  | $ | 233 |  |  | $ | 789 |  |  | $ | — |  |  | $ | 1,687 |  |  | 0.37 | % |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | $ | 665 |  |  | $ | 233 |  |  | $ | 789 |  |  | $ | — |  |  | $ | 1,687 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Three Months Ended June 30, 2024 |  |
(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 specialized lending |  |  | $ | 1,997 |  |  | $ | 1,756 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,753 |  |  | 0.06 | % |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate non-owner occupied |  |  | 17,265 |  |  | — |  |  | — |  |  | — |  |  | 17,265 |  |  | 1.44 | % |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing |  |  | 82 |  |  | — |  |  | — |  |  | 49 |  |  | 131 |  |  | 0.36 | % |  |  |  |  |  |  |  |  |  |  |  |
Personal installment |  |  | 373 |  |  | 34 |  |  | 35 |  |  | — |  |  | 442 |  |  | 0.09 | % |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | $ | 19,717 |  |  | $ | 1,790 |  |  | $ | 35 |  |  | $ | 49 |  |  | $ | 21,591 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Six Months Ended June 30, 2025 |  |
(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 specialized lending |  |  | $ | 731 |  |  | $ | 760 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,491 |  |  | 0.02 | % |  |  |  |  |  |  |  |  |  |  |  |
Personal installment |  |  | 2,922 |  |  | 1,491 |  |  | 888 |  |  | 126 |  |  | 5,427 |  |  | 1.19 | % |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | $ | 3,653 |  |  | $ | 2,251 |  |  | $ | 888 |  |  | $ | 126 |  |  | $ | 6,918 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Six Months Ended June 30, 2024 |  |
(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 specialized lending |  |  | $ | 1,997 |  |  | $ | 3,743 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,740 |  |  | 0.09 | % |  |  |  |  |  |  |  |  |  |  |  |
Multifamily |  |  | — |  |  | 10,691 |  |  | — |  |  | — |  |  | 10,691 |  |  | 0.52 | % |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate non-owner occupied |  |  | 17,265 |  |  | — |  |  | — |  |  | — |  |  | 17,265 |  |  | 1.44 | % |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  |  | — |  |  | 53 |  |  | — |  |  | — |  |  | 53 |  |  | 0.01 | % |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing |  |  | 82 |  |  | — |  |  | — |  |  | 49 |  |  | 131 |  |  | 0.36 | % |  |  |  |  |  |  |  |  |  |  |  |
Personal installment |  |  | 3,840 |  |  | 189 |  |  | 68 |  |  | — |  |  | 4,097 |  |  | 0.86 | % |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | $ | 23,184 |  |  | $ | 14,676 |  |  | $ | 68 |  |  | $ | 49 |  |  | $ | 37,977 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of June 30, 2025, 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, 2025. The following tables summarize the impacts of loan modifications made to borrowers experiencing financial difficulty for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, 2025 |  | Three Months Ended June 30, 2024
| Weighted Average |  |  |  | Weighted Average |  |
(dollars in thousands) | Interest Rate Reduction (%) |  | Term Extension (in months) |  | Payment Deferral (in months) |  | Debt Forgiven |  | Interest Rate Reduction (%) |  | Term Extension (in months) |  | Payment Deferral (in months) |  | Debt Forgiven
Commercial and industrial, including specialized lending | —% |  | 0 |  | 0 |  | $ | — |  |  | —% |  | 1 |  | 7 |  | $ | — |
Commercial real estate non-owner occupied | — |  | 0 |  | 0 |  | — |  |  | — |  | 12 |  | 0 |  | — |
Manufactured housing | — |  | 0 |  | 0 |  | — |  |  | 4.3 |  | 50 |  | 0 |  | — |
Personal installment | — |  | 5 |  | 9 |  | 794 |  |  | — |  | 4 |  | 7 |  | 41 |
| Six Months Ended June 30, 2025 |  | Six Months Ended June 30, 2024
| Weighted Average |  |  |  | Weighted Average |  |
(dollars in thousands) | Interest Rate Reduction (%) |  | Term Extension (in months) |  | Payment Deferral (in months) |  | Debt Forgiven |  | Interest Rate Reduction (%) |  | Term Extension (in months) |  | Payment Deferral (in months) |  | Debt Forgiven
Commercial and industrial, including specialized lending | — | % |  | 11 |  | 6 |  | $ | — |  |  | — | % |  | 1 |  | 5 |  | $ | — |
Multifamily | — |  |  | 0 |  | 0 |  | — |  |  | — |  |  | 0 |  | 5 |  | — |
Commercial real estate non-owner occupied | — |  |  | 0 |  | 0 |  | — |  |  | — |  |  | 12 |  | 0 |  | — |
Residential real estate | — |  |  | 0 |  | 0 |  | — |  |  | — |  |  | 0 |  | 5 |  | — |
Manufactured housing | — |  |  | 0 |  | 0 |  | — |  |  | 4.3 |  |  | 50 |  | 0 |  | — |
Personal installment | 11.5 |  |  | 5 |  | 7 |  | 867 |  |  | — |  |  | 6 |  | 7 |  | 141 |
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 tables present an aging analysis of loan modifications made to borrowers experiencing financial difficulty in the twelve months ended June 30, 2025 and 2024:
| June 30, 2025 |  |  |  |
(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 specialized lending | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6,286 |  |  | $ | 6,286 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate | — |  |  | — |  |  | — |  |  | 301 |  |  | 301 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing | — |  |  | — |  |  | — |  |  | 167 |  |  | 167 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal installment | 542 |  |  | 574 |  |  | 517 |  |  | 5,431 |  |  | 7,064 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total | $ | 542 |  |  | $ | 574 |  |  | $ | 517 |  |  | $ | 12,185 |  |  | $ | 13,818 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| June 30, 2024 |  |  |
(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 specialized lending | $ | — |  |  | $ | — |  |  | $ | 3,743 |  |  | $ | 14,101 |  |  | $ | 17,844 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Multifamily | — |  |  | — |  |  | — |  |  | 10,691 |  |  | 10,691 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate non-owner occupied | — |  |  | — |  |  | — |  |  | 17,265 |  |  | 17,265 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate | — |  |  | — |  |  | — |  |  | 99 |  |  | 99 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Manufactured housing | 124 |  |  | 36 |  |  | — |  |  | 317 |  |  | 477 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Personal installment | 510 |  |  | 312 |  |  | 417 |  |  | 9,317 |  |  | 10,556 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total | $ | 634 |  |  | $ | 348 |  |  | $ | 4,160 |  |  | $ | 51,790 |  |  | $ | 56,932 |  |  |  |  |  |  |  |  |  |  |  |  |  |
The loans to borrowers experiencing financial difficulty that were modified during the twelve months ended June 30, 2025 and 2024, respectively, 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. Credit Quality Indicators The ACL represents management’s estimate of expected losses in Customers’ loans and leases receivable portfolio, excluding mortgage finance and consumer installment loans reported at fair value pursuant to a fair value option election and PPP loans as these loans are fully guaranteed by the SBA, provided that the eligibility criteria are met. Commercial and industrial including specialized 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 specialized 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 2024 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, 2025 and December 31, 2024:
| Term Loans Amortized Cost Basis by Origination Year as of June 30, 2025 |  |  |  |  |  |
(amounts in thousands) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Commercial and industrial loans and leases, including specialized lending: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 1,542,752 |  |  | $ | 1,416,872 |  |  | $ | 678,303 |  |  | $ | 1,073,219 |  |  | $ | 308,666 |  |  | $ | 154,004 |  |  | $ | 2,018,133 |  |  | $ | 144,228 |  |  | $ | 7,336,177 |
Special mention | 7,200 |  |  | 11,194 |  |  | — |  |  | 22,625 |  |  | 3,993 |  |  | — |  |  | 13,736 |  |  | 7,956 |  |  | 66,704 |
Substandard | — |  |  | 3,750 |  |  | 1,399 |  |  | 19,790 |  |  | 394 |  |  | 94,403 |  |  | 45,629 |  |  | 2,547 |  |  | 167,912 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial and industrial loans and leases | $ | 1,549,952 |  |  | $ | 1,431,816 |  |  | $ | 679,702 |  |  | $ | 1,115,634 |  |  | $ | 313,053 |  |  | $ | 248,407 |  |  | $ | 2,077,498 |  |  | $ | 154,731 |  |  | $ | 7,570,793 |
Commercial and industrial loans and leases charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,565 |  |  | $ | — |  |  | $ | 431 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,996 |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | 103 |  |  | 9,578 |  |  | 12 |  |  | 810 |  |  | — |  |  | — |  |  | 10,503 |
Multifamily loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 152,314 |  |  | $ | 239,500 |  |  | $ | 794 |  |  | $ | 1,165,607 |  |  | $ | 274,385 |  |  | $ | 311,652 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,144,252 |
Special mention | — |  |  | — |  |  | — |  |  | 11,242 |  |  | 9,535 |  |  | 17,890 |  |  | — |  |  | — |  |  | 38,667 |
Substandard | — |  |  | — |  |  | — |  |  | 7,243 |  |  | 11,955 |  |  | 45,165 |  |  | — |  |  | — |  |  | 64,363 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total multifamily loans | $ | 152,314 |  |  | $ | 239,500 |  |  | $ | 794 |  |  | $ | 1,184,092 |  |  | $ | 295,875 |  |  | $ | 374,707 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,247,282 |
Multifamily loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,834 |  |  | — |  |  | — |  |  | 3,834 |
Commercial real estate owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 66,025 |  |  | $ | 394,619 |  |  | $ | 53,471 |  |  | $ | 208,759 |  |  | $ | 164,087 |  |  | $ | 134,525 |  |  | $ | 7,605 |  |  | $ | 34 |  |  | $ | 1,029,125 |
Special mention | — |  |  | — |  |  | — |  |  | 392 |  |  | 1,520 |  |  | 7,086 |  |  | — |  |  | 11,061 |  |  | 20,059 |
Substandard | — |  |  | — |  |  | 2,944 |  |  | — |  |  | — |  |  | 12,878 |  |  | — |  |  | — |  |  | 15,822 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate owner occupied loans | $ | 66,025 |  |  | $ | 394,619 |  |  | $ | 56,415 |  |  | $ | 209,151 |  |  | $ | 165,607 |  |  | $ | 154,489 |  |  | $ | 7,605 |  |  | $ | 11,095 |  |  | $ | 1,065,006 |
Commercial real estate owner occupied loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 417 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 417 |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | — |  |  | 417 |  |  | — |  |  | 19 |  |  | — |  |  | — |  |  | 436 |
Commercial real estate non-owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 197,119 |  |  | $ | 162,718 |  |  | $ | 16,348 |  |  | $ | 393,371 |  |  | $ | 94,341 |  |  | $ | 573,579 |  |  | $ | 2,000 |  |  | $ | — |  |  | $ | 1,439,476 |
Special mention | — |  |  | — |  |  | 21,971 |  |  | 26,639 |  |  | — |  |  | 547 |  |  | — |  |  | — |  |  | 49,157 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,752 |  |  | — |  |  | — |  |  | 8,752 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate non-owner occupied loans | $ | 197,119 |  |  | $ | 162,718 |  |  | $ | 38,319 |  |  | $ | 420,010 |  |  | $ | 94,341 |  |  | $ | 582,878 |  |  | $ | 2,000 |  |  | $ | — |  |  | $ | 1,497,385 |
Commercial real estate non-owner occupied loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
| Term Loans Amortized Cost Basis by Origination Year as of June 30, 2025 |  |  |  |  |  |
(amounts in thousands) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Construction loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 9,917 |  |  | $ | 32,740 |  |  | $ | 36,512 |  |  | $ | 19,457 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 98,626 |
Special mention | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total construction loans | $ | 9,917 |  |  | $ | 32,740 |  |  | $ | 36,512 |  |  | $ | 19,457 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 98,626 |
Construction loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial loans and leases receivable | $ | 1,975,327 |  |  | $ | 2,261,393 |  |  | $ | 811,742 |  |  | $ | 2,948,344 |  |  | $ | 868,876 |  |  | $ | 1,360,481 |  |  | $ | 2,087,103 |  |  | $ | 165,826 |  |  | $ | 12,479,092 |
Total commercial loans and leases receivable charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,982 |  |  | $ | — |  |  | $ | 431 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,413 |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | 103 |  |  | 9,995 |  |  | 12 |  |  | 4,663 |  |  | — |  |  | — |  |  | 14,773 |
Residential real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 41,585 |  |  | $ | 43,880 |  |  | $ | 20,275 |  |  | $ | 158,868 |  |  | $ | 119,203 |  |  | $ | 80,485 |  |  | $ | 48,282 |  |  | $ | — |  |  | $ | 512,578 |
Non-performing | — |  |  | 135 |  |  | 416 |  |  | 1,200 |  |  | 1,160 |  |  | 4,796 |  |  | 285 |  |  | — |  |  | 7,992 |
Total residential real estate loans | $ | 41,585 |  |  | $ | 44,015 |  |  | $ | 20,691 |  |  | $ | 160,068 |  |  | $ | 120,363 |  |  | $ | 85,281 |  |  | $ | 48,567 |  |  | $ | — |  |  | $ | 520,570 |
Residential real estate loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Manufactured housing loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 29,186 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,186 |
Non-performing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,101 |  |  | — |  |  | — |  |  | 1,101 |
Total manufactured housing loans | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 30,287 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,287 |
Manufactured housing loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Six Months Ended June 30, 2025 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Installment loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 35,106 |  |  | $ | 89,950 |  |  | $ | 194,252 |  |  | $ | 199,486 |  |  | $ | 64,404 |  |  | $ | 40,627 |  |  | $ | 43,786 |  |  | $ | 2 |  |  | $ | 667,613 |
Non-performing | 951 |  |  | 6,010 |  |  | 1,830 |  |  | 1,367 |  |  | 641 |  |  | 313 |  |  | 93 |  |  | — |  |  | 11,205 |
Total installment loans | $ | 36,057 |  |  | $ | 95,960 |  |  | $ | 196,082 |  |  | $ | 200,853 |  |  | $ | 65,045 |  |  | $ | 40,940 |  |  | $ | 43,879 |  |  | $ | 2 |  |  | $ | 678,818 |
Installment loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | 364 |  |  | $ | 1,081 |  |  | $ | 3,258 |  |  | $ | 3,437 |  |  | $ | 1,713 |  |  | $ | 897 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,750 |
Six Months Ended June 30, 2025 | 581 |  |  | 1,739 |  |  | 6,557 |  |  | 8,266 |  |  | 4,277 |  |  | 1,733 |  |  | — |  |  | — |  |  | 23,153 |
Total consumer loans | $ | 77,642 |  |  | $ | 139,975 |  |  | $ | 216,773 |  |  | $ | 360,921 |  |  | $ | 185,408 |  |  | $ | 156,508 |  |  | $ | 92,446 |  |  | $ | 2 |  |  | $ | 1,229,675 |
Total consumer loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | 364 |  |  | $ | 1,081 |  |  | $ | 3,258 |  |  | $ | 3,437 |  |  | $ | 1,713 |  |  | $ | 897 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,750 |
Six Months Ended June 30, 2025 | 581 |  |  | 1,739 |  |  | 6,557 |  |  | 8,266 |  |  | 4,277 |  |  | 1,733 |  |  | — |  |  | — |  |  | 23,153 |
| Term Loans Amortized Cost Basis by Origination Year as of June 30, 2025 |  |  |  |  |  |
(amounts in thousands) | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Loans and leases receivable | $ | 2,052,969 |  |  | $ | 2,401,368 |  |  | $ | 1,028,515 |  |  | $ | 3,309,265 |  |  | $ | 1,054,284 |  |  | $ | 1,516,989 |  |  | $ | 2,179,549 |  |  | $ | 165,828 |  |  | $ | 13,708,767 |
Loans and leases receivable charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended June 30, 2025 | $ | 364 |  |  | $ | 1,081 |  |  | $ | 3,258 |  |  | $ | 9,419 |  |  | $ | 1,713 |  |  | $ | 1,328 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,163 |
Six Months Ended June 30, 2025 | $ | 581 |  |  | $ | 1,739 |  |  | $ | 6,660 |  |  | $ | 18,261 |  |  | $ | 4,289 |  |  | $ | 6,396 |  |  | $ | — |  |  | $ | — |  |  | $ | 37,926 |
| Term Loans Amortized Cost Basis by Origination Year as of December 31, 2024 |  |  |  |  |  |
(amounts in thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Commercial and industrial loans and leases, including specialized lending: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 2,103,150 |  |  | $ | 738,456 |  |  | $ | 1,278,246 |  |  | $ | 333,068 |  |  | $ | 107,840 |  |  | $ | 6,742 |  |  | $ | 1,907,480 |  |  | $ | 336,100 |  |  | $ | 6,811,082 |
Special mention | 16,905 |  |  | — |  |  | 6,933 |  |  | 1,522 |  |  | — |  |  | 62 |  |  | 8,144 |  |  | 3,630 |  |  | 37,196 |
Substandard | — |  |  | 1,631 |  |  | 43,668 |  |  | 11,525 |  |  | 4,178 |  |  | 62,095 |  |  | 27,830 |  |  | 2,814 |  |  | 153,741 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial and industrial loans and leases | $ | 2,120,055 |  |  | $ | 740,087 |  |  | $ | 1,328,847 |  |  | $ | 346,115 |  |  | $ | 112,018 |  |  | $ | 68,899 |  |  | $ | 1,943,454 |  |  | $ | 342,544 |  |  | $ | 7,002,019 |
Commercial and industrial loans and leases charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 (1) | $ | 312 |  |  | $ | 2,765 |  |  | $ | 5,833 |  |  | $ | 4,865 |  |  | $ | 2,429 |  |  | $ | 7,531 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,735 |
Multifamily loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 235,685 |  |  | $ | 813 |  |  | $ | 1,182,371 |  |  | $ | 288,055 |  |  | $ | 124,779 |  |  | $ | 314,967 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,146,670 |
Special mention | — |  |  | — |  |  | 14,040 |  |  | 12,093 |  |  | — |  |  | 32,316 |  |  | — |  |  | — |  |  | 58,449 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 47,127 |  |  | — |  |  | — |  |  | 47,127 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total multifamily loans | $ | 235,685 |  |  | $ | 813 |  |  | $ | 1,196,411 |  |  | $ | 300,148 |  |  | $ | 124,779 |  |  | $ | 394,410 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,252,246 |
Multifamily loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,073 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,073 |
Commercial real estate owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 395,522 |  |  | $ | 54,356 |  |  | $ | 211,300 |  |  | $ | 195,169 |  |  | $ | 42,078 |  |  | $ | 118,677 |  |  | $ | 7,605 |  |  | $ | 104 |  |  | $ | 1,024,811 |
Special mention | — |  |  | — |  |  | 159 |  |  | 16,429 |  |  | 10,000 |  |  | 15,885 |  |  | — |  |  | 11,136 |  |  | 53,609 |
Substandard | — |  |  | 2,944 |  |  | 703 |  |  | — |  |  | — |  |  | 18,877 |  |  | — |  |  | — |  |  | 22,524 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate owner occupied loans | $ | 395,522 |  |  | $ | 57,300 |  |  | $ | 212,162 |  |  | $ | 211,598 |  |  | $ | 52,078 |  |  | $ | 153,439 |  |  | $ | 7,605 |  |  | $ | 11,240 |  |  | $ | 1,100,944 |
Commercial real estate owner occupied loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 365 |  |  | $ | — |  |  | $ | — |  |  | $ | 365 |
Commercial real estate non-owner occupied loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 163,429 |  |  | $ | 30,367 |  |  | $ | 412,352 |  |  | $ | 96,656 |  |  | $ | 165,111 |  |  | $ | 413,336 |  |  | $ | 2,000 |  |  | $ | — |  |  | $ | 1,283,251 |
Special mention | — |  |  | 12,000 |  |  | 4,277 |  |  | — |  |  | — |  |  | 431 |  |  | — |  |  | — |  |  | 16,708 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 59,171 |  |  | — |  |  | — |  |  | 59,171 |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total commercial real estate non-owner occupied loans | $ | 163,429 |  |  | $ | 42,367 |  |  | $ | 416,629 |  |  | $ | 96,656 |  |  | $ | 165,111 |  |  | $ | 472,938 |  |  | $ | 2,000 |  |  | $ | — |  |  | $ | 1,359,130 |
Commercial real estate non-owner occupied loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 145 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 145 |
Construction loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 16,103 |  |  | $ | 22,610 |  |  | $ | 94,957 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,446 |  |  | $ | — |  |  | $ | — |  |  | $ | 138,116 |
Special mention | — |  |  | 9,093 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9,093 |
Substandard | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Doubtful | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total construction loans | $ | 16,103 |  |  | $ | 31,703 |  |  | $ | 94,957 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,446 |  |  | $ | — |  |  | $ | — |  |  | $ | 147,209 |
Construction loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total commercial loans and leases receivable | $ | 2,930,794 |  |  | $ | 872,270 |  |  | $ | 3,249,006 |  |  | $ | 954,517 |  |  | $ | 453,986 |  |  | $ | 1,094,132 |  |  | $ | 1,953,059 |  |  | $ | 353,784 |  |  | $ | 11,861,548 |
| Term Loans Amortized Cost Basis by Origination Year as of December 31, 2024 |  |  |  |  |  |
(amounts in thousands) | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior |  | Revolving loans amortized cost basis |  | Revolving loans converted to term |  | Total
Total commercial loans and leases receivable charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | 312 |  |  | $ | 2,765 |  |  | $ | 5,833 |  |  | $ | 4,865 |  |  | $ | 2,574 |  |  | $ | 11,969 |  |  | $ | — |  |  | $ | — |  |  | $ | 28,318 |
Residential real estate loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 45,757 |  |  | $ | 20,701 |  |  | $ | 163,473 |  |  | $ | 123,170 |  |  | $ | 5,827 |  |  | $ | 77,989 |  |  | $ | 50,807 |  |  | $ | — |  |  | $ | 487,724 |
Non-performing | 138 |  |  | 273 |  |  | 925 |  |  | 1,077 |  |  | 317 |  |  | 5,425 |  |  | 680 |  |  | — |  |  | 8,835 |
Total residential real estate loans | $ | 45,895 |  |  | $ | 20,974 |  |  | $ | 164,398 |  |  | $ | 124,247 |  |  | $ | 6,144 |  |  | $ | 83,414 |  |  | $ | 51,487 |  |  | $ | — |  |  | $ | 496,559 |
Residential real estate loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 38 |  |  | $ | — |  |  | $ | — |  |  | $ | 38 |
Manufactured housing loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 31,570 |  |  | $ | — |  |  | $ | — |  |  | $ | 31,570 |
Non-performing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,553 |  |  | — |  |  | — |  |  | 1,553 |
Total manufactured housing loans | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 33,123 |  |  | $ | — |  |  | $ | — |  |  | $ | 33,123 |
Manufactured housing loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Installment loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing | $ | 86,018 |  |  | $ | 164,223 |  |  | $ | 255,777 |  |  | $ | 98,375 |  |  | $ | 31,808 |  |  | $ | 25,733 |  |  | $ | 46,126 |  |  | $ | 5 |  |  | $ | 708,065 |
Non-performing | 238 |  |  | 1,829 |  |  | 1,698 |  |  | 918 |  |  | 260 |  |  | 504 |  |  | 141 |  |  | — |  |  | 5,588 |
Total installment loans | $ | 86,256 |  |  | $ | 166,052 |  |  | $ | 257,475 |  |  | $ | 99,293 |  |  | $ | 32,068 |  |  | $ | 26,237 |  |  | $ | 46,267 |  |  | $ | 5 |  |  | $ | 713,653 |
Installment loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | 2,797 |  |  | $ | 8,791 |  |  | $ | 22,707 |  |  | $ | 15,211 |  |  | $ | 2,811 |  |  | $ | 3,792 |  |  | $ | — |  |  | $ | — |  |  | $ | 56,109 |
Total consumer loans | $ | 132,151 |  |  | $ | 187,026 |  |  | $ | 421,873 |  |  | $ | 223,540 |  |  | $ | 38,212 |  |  | $ | 142,774 |  |  | $ | 97,754 |  |  | $ | 5 |  |  | $ | 1,243,335 |
Total consumer loans charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | 2,797 |  |  | $ | 8,791 |  |  | $ | 22,707 |  |  | $ | 15,211 |  |  | $ | 2,811 |  |  | $ | 3,830 |  |  | $ | — |  |  | $ | — |  |  | $ | 56,147 |
Loans and leases receivable | $ | 3,062,945 |  |  | $ | 1,059,296 |  |  | $ | 3,670,879 |  |  | $ | 1,178,057 |  |  | $ | 492,198 |  |  | $ | 1,236,906 |  |  | $ | 2,050,813 |  |  | $ | 353,789 |  |  | $ | 13,104,883 |
Loans and leases receivable charge-offs: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Year Ended December 31, 2024 | $ | 3,109 |  |  | $ | 11,556 |  |  | $ | 28,540 |  |  | $ | 20,076 |  |  | $ | 5,385 |  |  | $ | 15,799 |  |  | $ | — |  |  | $ | — |  |  | $ | 84,465 |
(1) Charge-offs for the year ended December 31, 2024 included $5.0 million 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.
Loan Purchases and Sales Purchases and sales of loans held for investment were as follows for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(amounts in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Purchases (1) |  |  |  |  |  |  |
Other commercial and industrial | $ | 52,776 |  |  | $ | — |  |  | $ | 53,855 |  |  | $ | 7,403 |
Construction | 10,080 |  |  | — |  |  | 10,080 |  |  | — |
Personal installment (2) | 40,700 |  |  | 43,241 |  |  | 145,641 |  |  | 43,241 |
Total | $ | 103,556 |  |  | $ | 43,241 |  |  | $ | 209,576 |  |  | $ | 50,644 |
Sales (3) |  |  |  |  |  |  |
Other commercial and industrial | $ | — |  |  | $ | 23,708 |  |  | $ | — |  |  | $ | 23,708 |
Multifamily | — |  |  | — |  |  | 8,000 |  |  | — |
Personal installment | — |  |  | — |  |  | 281 |  |  | — |
Total | $ | — |  |  | $ | 23,708 |  |  | $ | 8,281 |  |  | $ | 23,708 |
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 74.4% and 99.5% of the loans’ unpaid principal balance for the three months ended June 30, 2025 and 2024, respectively. The purchase price was 87.1% and 99.6% of the loans’ unpaid principal balance for the six months ended June 30, 2025 and 2024, respectively. (2)Installment loan purchases for the three and six months ended June 30, 2025 and 2024 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)The gain on sales of loans held for investment was insignificant for the three and six months ended June 30, 2025. For the three and six months ended June 30, 2024, sales of loans held for investment resulted in net losses of $0.2 million included in net gain (loss) on sale of loans and leases in the consolidated statements of income. $32.1 million of the other commercial and industrial loans purchased during three and six months ended June 30, 2025 were classified as PCD. The reconciliation between the purchase price and the unpaid principal balance was as follows:
(amounts in thousands) |  |
Par value |  | $ | 32,050 |
Unamortized discount |  | (16,217) |
Allowance for credit losses |  | (1,000) |
Purchase price |  | $ | 14,833 |
Loans Pledged as Collateral Customers has pledged eligible commercial and residential real estate, multifamily, commercial and industrial, PPP and consumer installment loans as collateral for borrowings outstanding or available immediately from the FHLB and FRB in the amount of $7.9 billion and $8.0 billion at June 30, 2025 and December 31, 2024, respectively.

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