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Loans and Leases Receivable and Allowance for Credit Losses on Loans and Leases (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of Loans and Leases Receivable
The following table presents loans and leases receivable as of September 30, 2022 and December 31, 2021.
(amounts in thousands)September 30, 2022December 31, 2021
Loans and leases receivable, mortgage warehouse, at fair value$1,569,090 $2,284,325 
Loans receivable, PPP1,154,632 3,250,008 
Loans and leases receivable:
Commercial:
Commercial and industrial:
Specialty lending (1)
5,103,974 2,403,991 
Other commercial and industrial1,203,829 1,020,792 
Multi-family2,263,268 1,486,308 
Commercial real estate owner occupied726,670 654,922 
Commercial real estate non-owner occupied1,263,211 1,121,238 
Construction136,133 198,981 
Total commercial loans and leases receivable10,697,085 6,886,232 
Consumer:
Residential real estate465,772 334,730 
Manufactured housing46,990 52,861 
Installment:
Personal1,056,432 1,392,862 
Other341,463 351,613 
Total consumer loans receivable1,910,657 2,132,066 
Loans and leases receivable12,607,742 9,018,298 
Allowance for credit losses on loans and leases(130,197)(137,804)
Total loans and leases receivable, net of allowance for credit losses on loans and leases (2)
$15,201,267 $14,414,827 
(1)Includes direct finance equipment leases of $145.6 million and $146.5 million at September 30, 2022 and December 31, 2021, respectively.
(2)Includes deferred (fees) costs and unamortized (discounts) premiums, net of $(21.0) million and $(52.0) million at September 30, 2022 and December 31, 2021, 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 September 30, 2022 and December 31, 2021:
 September 30, 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$739 $419 $3,950 $5,108 $6,302,695 $6,307,803 
Multi-family— — 1,159 1,159 2,262,109 2,263,268 
Commercial real estate owner occupied115 — 2,127 2,242 724,428 726,670 
Commercial real estate non-owner occupied— 324 — 324 1,262,887 1,263,211 
Construction— — — — 136,133 136,133 
Residential real estate746 1,313 2,377 4,436 461,336 465,772 
Manufactured housing1,416 410 3,438 5,264 41,726 46,990 
Installment10,906 8,697 6,847 26,450 1,371,445 1,397,895 
Total$13,922 $11,163 $19,898 $44,983 $12,562,759 $12,607,742 
 December 31, 2021
(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$2,093 $95 $5,929 $8,117 $3,416,666 $3,424,783 
Multi-family1,682 2,707 18,235 22,624 1,463,684 1,486,308 
Commercial real estate owner occupied287 — 1,304 1,591 653,331 654,922 
Commercial real estate non-owner occupied— — 2,815 2,815 1,118,423 1,121,238 
Construction— — — — 198,981 198,981 
Residential real estate4,655 789 4,390 9,834 324,896 334,730 
Manufactured housing2,308 768 4,949 8,025 44,836 52,861 
Installment7,349 4,295 3,783 15,427 1,729,048 1,744,475 
Total$18,374 $8,654 $41,405 $68,433 $8,949,865 $9,018,298 
(1)Includes past due loans and leases that are accruing interest because collection is considered probable.
(2)Includes loans amounting to $1.5 million and $1.4 million as of September 30, 2022 and December 31, 2021, 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 $1.2 billion, of which $274.4 million were 30-59 days past due and $178.2 million were 60 days or more past due as of September 30, 2022, and PPP loans of $3.3 billion, of which $6.3 million were 30-59 days past due and $21.8 million were 60 days or more past due as of December 31, 2021. Claims for guarantee payments are submitted to the SBA for eligible PPP loans more than 60 days past due.
(4)Includes PCD loans of $8.7 million and $9.9 million at September 30, 2022 and December 31, 2021, respectively.
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.
 
September 30, 2022 (1)
December 31, 2021 (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$4,054 $24 $4,078 $5,837 $259 $6,096 
Multi-family1,158 — 1,158 22,654 — 22,654 
Commercial real estate owner occupied2,198 — 2,198 2,475 — 2,475 
Commercial real estate non-owner occupied— — — 2,815 — 2,815 
Residential real estate6,438 — 6,438 7,727 — 7,727 
Manufactured housing— 2,584 2,584 — 3,563 3,563 
Installment— 6,848 6,848 — 3,783 3,783 
Total$13,848 $9,456 $23,304 $41,508 $7,605 $49,113 
(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 nine months ended September 30, 2022 and 2021 are presented in the tables below.
(amounts in thousands)
Commercial and industrial (1)
Multi-familyCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
Three Months Ended
September 30, 2022
Ending Balance,
June 30, 2022		$11,081 $9,765 $4,745 $8,880 $1,179 $5,578 $4,080 $111,222 $156,530 
Charge-offs(2,657)— — (4,862)— — — (13,965)$(21,484)
Recoveries76 — — 31 10 13 — 2,857 $2,987 
Provision (benefit) for credit losses on loans and leases6,631 4,479 1,475 7,283 425 (138)402 (28,393)$(7,836)
Ending Balance,
September 30, 2022		$15,131 $14,244 $6,220 $11,332 $1,614 $5,453 $4,482 $71,721 $130,197 
Nine Months Ended
September 30, 2022
Ending Balance,
December 31, 2021		$12,702 $4,477 $3,213 $6,210 $692 $2,383 $4,278 $103,849 $137,804 
Charge-offs(3,235)(1,990)— (5,025)— (4)— (35,681)$(45,935)
Recoveries1,129 337 49 43 226 58 — 4,889 $6,731 
Provision (benefit) for credit losses on loans and leases4,535 11,420 2,958 10,104 696 3,016 204 (1,336)$31,597 
Ending Balance,
September 30, 2022		$15,131 $14,244 $6,220 $11,332 $1,614 $5,453 $4,482 $71,721 $130,197 
(amounts in thousands)
Commercial and industrial (1)
Multi-familyCommercial real estate owner occupiedCommercial real estate non-owner occupiedConstructionResidential real estateManufactured housingInstallmentTotal
Three Months Ended
September 30, 2021
Ending Balance,
June 30, 2021		$8,127 $5,028 $4,464 $7,374 $2,643 $2,299 $4,372 $91,129 $125,436 
Charge-offs(516)— (524)(943)— (79)— (6,693)(8,755)
Recoveries400 — 474 — 3 25 — 749 1,651 
Provision (benefit) for credit losses on loans and leases2,849 (631)(797)944 (1,760)(333)38 12,854 13,164 
Ending Balance,
September 30, 2021		$10,860 $4,397 $3,617 $7,375 $886 $1,912 $4,410 $98,039 $131,496 
Nine Months Ended
September 30, 2021
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(1,153)(1,132)(666)(943)— (129)— (27,338)(31,361)
Recoveries945 — 483 69 122 47 — 3,479 5,145 
Provision (benefit) for credit losses on loans and leases(1,171)(7,091)(5,712)(11,203)(5,107)(1,983)(780)46,583 13,536 
Ending Balance,
September 30, 2021		$10,860 $4,397 $3,617 $7,375 $886 $1,912 $4,410 $98,039 $131,496 
(1) Includes specialty lending.
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 three and nine months ended September 30, 2022 and 2021. There were no modifications that involved forgiveness of debt for the three and nine months ended September 30, 2022 and 2021.
Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investmentNumber of loansRecorded investment
Interest-rate reductions— $— 4 $244 14 $470 16 $585 
Other (1)
71 739 39 687 170 1,933 158 2,369 
Total71 $739 43 $931 184 $2,403 174 $2,954 
(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:
September 30, 2022September 30, 2021
(dollars in thousands)Number of loansRecorded investmentNumber of loansRecorded investment
Manufactured housing1 $46 2 $71 
Residential real estate1 119 — — 
Installment34 420 19 231 
Total loans36 $585 21 $302 
Credit Ratings of Covered and Non-Covered Loan Portfolio The following tables present the credit ratings of loans and leases receivable as of September 30, 2022 and December 31, 2021.
Term Loans Amortized Cost Basis by Origination Year as of
September 30, 2022
(amounts in thousands)20222021202020192018PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial and industrial loans and leases, including specialty lending:
Pass$2,811,777 $638,308 $290,113 $210,755 $72,613 $87,766 $2,091,816 $— $6,203,148 
Special mention— 6,000 — — — 290 2,816 — 9,106 
Substandard— 22,733 8,800 8,798 7,429 43,134 4,655 — 95,549 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$2,811,777 $667,041 $298,913 $219,553 $80,042 $131,190 $2,099,287 $— $6,307,803 
Multi-family loans:
Pass$1,257,398 $364,730 $131,310 $22,364 $114,430 $241,843 $— $— $2,132,075 
Special mention— — — — 4,984 58,964 — — 63,948 
Substandard— 1,508 — — — 65,737 — — 67,245 
Doubtful— — — — — — — — — 
Total multi-family loans$1,257,398 $366,238 $131,310 $22,364 $119,414 $366,544 $— $— $2,263,268 
Commercial real estate owner occupied loans:
Pass$186,167 $203,200 $56,956 $92,437 $36,062 $129,565 $— $— $704,387 
Special mention— — — — 461 3,858 — — 4,319 
Substandard— — — 134 9,447 8,383 — — 17,964 
Doubtful— — — — — — — — 
Total commercial real estate owner occupied loans$186,167 $203,200 $56,956 $92,571 $45,970 $141,806 $— $— $726,670 
Commercial real estate non-owner occupied:
Pass$279,854 $119,817 $144,199 $74,694 $63,318 $405,022 $— $— $1,086,904 
Special mention— — 21,335 — — 5,852 — — 27,187 
Substandard— — — 28,833 20,753 99,534 — — 149,120 
Doubtful— — — — — — — — — 
Total commercial real estate non-owner occupied loans$279,854 $119,817 $165,534 $103,527 $84,071 $510,408 $— $— $1,263,211 
Construction:
Pass$49,417 $32,431 $9,510 $28,817 $4,722 $9,161 $2,075 $— $136,133 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$49,417 $32,431 $9,510 $28,817 $4,722 $9,161 $2,075 $— $136,133 
Total commercial loans and leases receivable$4,584,613 $1,388,727 $662,223 $466,832 $334,219 $1,159,109 $2,101,362 $— $10,697,085 
Residential real estate loans:
Performing$136,267 $144,010 $7,420 $16,643 $10,471 $75,826 $68,839 $— $459,476 
Non-performing— — 177 372 1,378 3,713 656 — 6,296 
Total residential real estate loans$136,267 $144,010 $7,597 $17,015 $11,849 $79,539 $69,495 $— $465,772 
Manufactured housing loans:
Performing$— $— $— $218 $105 $43,801 $— $— $44,124 
Non-performing— — — — — 2,866 — — 2,866 
Total manufactured housing loans$— $— $— $218 $105 $46,667 $— $— $46,990 
Installment loans:
Performing$580,370 $427,400 $148,318 $152,836 $13,033 $1,132 $67,288 $— $1,390,377 
Non-performing1,133 3,919 904 1,336 85 60 81 — 7,518 
Total installment loans$581,503 $431,319 $149,222 $154,172 $13,118 $1,192 $67,369 $— $1,397,895 
Total consumer loans$717,770 $575,329 $156,819 $171,405 $25,072 $127,398 $136,864 $— $1,910,657 
Loans and leases receivable$5,302,383 $1,964,056 $819,042 $638,237 $359,291 $1,286,507 $2,238,226 $— $12,607,742 
Term Loans Amortized Cost Basis by Origination Year as of December 31, 2021
(amounts in thousands)20212020201920182017PriorRevolving loans amortized cost basisRevolving loans converted to termTotal
Commercial and industrial loans and leases, including specialty lending:
Pass$974,016 $337,045 $266,677 $86,691 $55,536 $89,860 $1,484,287 $— $3,294,112 
Special mention476 1,408 3,325 4,904 36,252 92 14,662 — 61,119 
Substandard18,786 10,257 9,543 11,586 5,682 6,764 6,934 — 69,552 
Doubtful— — — — — — — — — 
Total commercial and industrial loans and leases$993,278 $348,710 $279,545 $103,181 $97,470 $96,716 $1,505,883 $— $3,424,783 
Multi-family loans:
Pass$403,075 $133,452 $23,068 $209,070 $282,663 $316,491 $— $— $1,367,819 
Special mention— — — 9,936 18,489 28,776 — — 57,201 
Substandard— — — — 38,216 23,072 — — 61,288 
Doubtful— — — — — — — — — 
Total multi-family loans$403,075 $133,452 $23,068 $219,006 $339,368 $368,339 $— $— $1,486,308 
Commercial real estate owner occupied loans:
Pass$213,102 $59,348 $124,626 $60,993 $58,073 $99,219 $672 $— $616,033 
Special mention— — 2,876 318 2,044 572 — — 5,810 
Substandard— — 3,750 9,682 8,824 10,823 — — 33,079 
Doubtful— — — — — — — — — 
Total commercial real estate owner occupied loans$213,102 $59,348 $131,252 $70,993 $68,941 $110,614 $672 $— $654,922 
Commercial real estate non-owner occupied:
Pass$136,897 $149,898 $95,504 $66,040 $153,509 $310,435 $— $— $912,283 
Special mention— 21,694 11,113 9,373 43,215 20,540 — — 105,935 
Substandard— — — 35,846 20,516 46,658 — — 103,020 
Doubtful— — — — — — — — — 
Total commercial real estate non-owner occupied loans$136,897 $171,592 $106,617 $111,259 $217,240 $377,633 $— $— $1,121,238 
Construction:
Pass$57,105 $49,199 $77,622 $4,828 $— $9,414 $813 $— $198,981 
Special mention— — — — — — — — — 
Substandard— — — — — — — — — 
Doubtful— — — — — — — — — 
Total construction loans$57,105 $49,199 $77,622 $4,828 $— $9,414 $813 $— $198,981 
Total commercial loans and leases receivable$1,803,457 $762,301 $618,104 $509,267 $723,019 $962,716 $1,507,368 $— $6,886,232 
Residential real estate loans:
Performing$107,854 $8,251 $21,096 $11,389 $6,707 $84,035 $87,438 $— $326,770 
Non-performing— — 335 1,015 669 3,587 2,354 — 7,960 
Total residential real estate loans$107,854 $8,251 $21,431 $12,404 $7,376 $87,622 $89,792 $— $334,730 
Manufactured housing loans:
Performing$— $— $253 $299 $73 $47,537 $— $— 48,162 
Non-performing— — — — — 4,699 — — 4,699 
Total manufactured housing loans$— $— $253 $299 $73 $52,236 $— $— $52,861 
Installment loans:
Performing$973,525 $390,788 $341,582 $31,481 $1,601 $1,016 $25 $— $1,740,018 
Non-performing1,162 1,002 2,074 156 2 61 — — 4,457 
Total installment loans$974,687 $391,790 $343,656 $31,637 $1,603 $1,077 $25 $— $1,744,475 
Total consumer loans$1,082,541 $400,041 $365,340 $44,340 $9,052 $140,935 $89,817 $— $2,132,066 
Loans and leases receivable$2,885,998 $1,162,342 $983,444 $553,607 $732,071 $1,103,651 $1,597,185 $— $9,018,298 
Schedule of Loan Purchases and Sales
Purchases and sales of loans were as follows for the three and nine months ended September 30, 2022 and 2021:
Three Months Ended September 30,Nine Months Ended September 30,
(amounts in thousands)2022202120222021
Purchases (1)
Loans receivable, PPP$— $602,175 $— $1,223,662 
Residential real estate15,067 — 170,022 — 
Personal installment (2)
47,778 — 123,785 109,142 
Other installment (2)
74,969 50,001 74,969 56,708 
Total$137,814 $652,176 $368,776 $1,389,512 
Sales (3)
Specialty lending$2,200 $— $2,200 $— 
Other commercial and industrial (4)
— 6,176 22,880 35,166 
Multi-family— — 2,879 19,443 
Commercial real estate owner occupied (4)
— 5,728 8,960 12,426 
Commercial real estate non-owner occupied— — — 18,366 
Residential real estate— 14,549 — 42,735 
Personal installment (5)
500,001 103,897 500,001 132,715 
Total$502,201 $130,350 $536,920 $260,851 
(1)Amounts reported in the above table are the unpaid principal balance at time of purchase. The purchase price was 99.9% and 99.2% of the loans' unpaid principal balance for the three months ended September 30, 2022 and 2021, respectively. The purchase price was 98.7% and 101.0% of the loans' unpaid principal balance for the nine months ended September 30, 2022 and 2021, respectively.
(2)Installment loan purchases for the three and nine months ended September 30, 2022 and 2021 consist of third-party originated unsecured consumer loans. None of the loans 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 September 30, 2022 and 2021, loan sales resulted in net losses of $23.4 million and net gains of $5.8 million, respectively, included in gain (loss) on sale of SBA and other loans and in loss on sale of consumer installment loans (refer to (5) below) in the consolidated statements of income. For the nine months ended September 30, 2022 and 2021, loan sales resulted in net losses of $19.7 million and net gains of $10.1 million, respectively.
(4)Primarily sales of SBA loans.
(5)On September 30, 2022, Customers sold $521.8 million of consumer installment loans, inclusive of accrued interest and unamortized deferred loan origination costs, to a third-party sponsored VIE. 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.