Loans Receivable and Allowance for Loan Losses | OANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES - As Restated The following table presents loans receivable as of September 30, 2018 and December 31, 2017 . September 30, 2018 December 31, 2017 (amounts in thousands) (As Restated) Loans receivable, mortgage warehouse, at fair value $ 1,516,327 $ 1,793,408 Loans receivable: Commercial: Multi-family 3,504,540 3,502,381 Commercial and industrial (including owner occupied commercial real estate) 1,841,704 1,633,818 Commercial real estate non-owner occupied 1,157,849 1,218,719 Construction 95,250 85,393 Total commercial loans receivable 6,599,343 6,440,311 Consumer: Residential real estate 509,853 234,090 Manufactured housing 82,589 90,227 Other 51,210 3,547 Total consumer loans receivable 643,652 327,864 Loans receivable 7,242,995 6,768,175 Deferred (fees)/costs and unamortized (discounts)/premiums, net (3,045 ) 83 Allowance for loan losses (40,741 ) (38,015 ) Total loans receivable, net of allowance for loan losses $ 8,715,536 $ 8,523,651 Customers' total loans receivable portfolio includes loans receivable which are reported at fair value based on an election made to account for these loans at fair value and loans receivable which are predominately reported at their outstanding unpaid principal balance, net of charge-offs and deferred costs and fees and unamortized premiums and discounts and are evaluated for impairment. Loans receivable mortgage warehouse, at fair value: Mortgage warehouse loans consist of commercial loans to mortgage companies. These mortgage warehouse lending transactions are subject to master repurchase agreements. As a result of the contractual provisions, for accounting purposes control of the underlying mortgage loan has not transferred and the rewards and risks of the mortgage loans are not assumed by Customers. The mortgage warehouse loans receivable are designated as loans held for investment and reported at fair value based on an election made to account for the loans at fair value. Pursuant to the agreements, Customers funds the pipelines for these mortgage lenders by sending payments directly to the closing agents for funded mortgage loans and receives proceeds directly from third party investors when the underlying mortgage loans are sold into the secondary market. The fair value of the mortgage warehouse loans is estimated as the amount of cash initially advanced to fund the mortgage, plus accrued interest and fees, as specified in the respective agreements. The interest rates on these loans are variable, and the lending transactions are short-term, with an average life of 25 days from purchase to sale. The primary goal of these lending transactions is to provide liquidity to mortgage companies. At September 30, 2018 and December 31, 2017, all of Customers' commercial mortgage warehouse loans were current in terms of payment. Because these loans are reported at their fair value, they do not have an allowance for loan loss and are therefore excluded from allowance for loan losses related disclosures. Loans receivable: The following tables summarize loans receivable by loan type and performance status as of September 30, 2018 and December 31, 2017 : September 30, 2018 30-89 Days 90 Days Total Past Non- Current (2) Purchased- Total (amounts in thousands) Multi-family $ — $ — $ — $ 1,343 $ 3,501,450 $ 1,747 $ 3,504,540 Commercial and industrial 418 — 418 13,287 1,271,813 572 1,286,090 Commercial real estate owner occupied — — — 1,298 545,647 8,669 555,614 Commercial real estate non-owner occupied — — — 158 1,153,107 4,584 1,157,849 Construction — — — — 95,250 — 95,250 Residential real estate 2,321 — 2,321 5,522 497,211 4,799 509,853 Manufactured housing (5) 3,475 2,300 5,775 1,921 72,777 2,116 82,589 Other consumer 45 — 45 112 50,832 221 51,210 Total $ 6,259 $ 2,300 $ 8,559 $ 23,641 $ 7,188,087 $ 22,708 $ 7,242,995 December 31, 2017 30-89 Days 90 Days Total Past Non- Current (2) Purchased- Total (amounts in thousands) Multi-family $ 4,900 $ — $ 4,900 $ — $ 3,495,600 $ 1,881 $ 3,502,381 Commercial and industrial 103 — 103 17,392 1,130,831 764 1,149,090 Commercial real estate owner occupied 202 — 202 1,453 472,501 10,572 484,728 Commercial real estate non-owner occupied 93 — 93 160 1,213,216 5,250 1,218,719 Construction — — — — 85,393 — 85,393 Residential real estate 7,628 — 7,628 5,420 215,361 5,681 234,090 Manufactured housing (5) 4,028 2,743 6,771 1,959 78,946 2,551 90,227 Other consumer 116 — 116 31 3,184 216 3,547 Total $ 17,070 $ 2,743 $ 19,813 $ 26,415 $ 6,695,032 $ 26,915 $ 6,768,175 (1) Includes past due loans that are accruing interest because collection is considered probable. (2) Loans where next payment due is less than 30 days from the report date. (3) Purchased-credit-impaired loans aggregated into a pool are accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, and the past due status of the pools, or that of the individual loans within the pools, is not meaningful. Due to the credit impaired nature of the loans, the loans are recorded at a discount reflecting estimated future cash flows and the Bank recognizes interest income on each pool of loans reflecting the estimated yield and passage of time. Such loans are considered to be performing. Purchased-credit-impaired loans that are not in pools accrete interest when the timing and amount of their expected cash flows are reasonably estimable, and are reported as performing loans. (4) Amounts exclude deferred costs and fees, unamortized premiums and discounts, and the allowance for loan losses. (5) Manufactured housing loans purchased in 2010 are supported by cash reserves held at the Bank that are used to fund past-due payments when the loan becomes 90 days or more delinquent. Subsequent purchases are subject to varying provisions in the event of borrowers’ delinquencies. As of September 30, 2018 and December 31, 2017 , the Bank had $0.4 million and $0.3 million , respectively, of residential real estate held in other real estate owned. As of September 30, 2018 and December 31, 2017 , the Bank had initiated foreclosure proceedings on $2.1 million and $1.6 million , respectively, in loans secured by residential real estate. Allowance for loan losses The changes in the allowance for loan losses for the three and nine months ended September 30, 2018 and 2017 , and the loans and allowance for loan losses by loan type based on impairment-evaluation method as of September 30, 2018 and December 31, 2017 are presented in the tables below. Three Months Ended September 30, 2018 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Construction Residential Manufactured Other Consumer Total (amounts in thousands) Ending Balance, $ 12,069 $ 12,258 $ 2,988 $ 6,698 $ 992 $ 2,908 $ 149 $ 226 $ 38,288 Charge-offs — (90 ) — — — — — (437 ) (527 ) Recoveries — 30 — 5 11 6 — 4 56 Provision for loan losses (240 ) 516 164 (254 ) 59 987 (55 ) 1,747 2,924 Ending Balance, $ 11,829 $ 12,714 $ 3,152 $ 6,449 $ 1,062 $ 3,901 $ 94 $ 1,540 $ 40,741 Nine Months Ended September 30, 2018 Ending Balance, $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 Charge-offs — (314 ) (501 ) — — (407 ) — (1,155 ) (2,377 ) Recoveries — 205 326 5 231 69 — 10 846 Provision for loan losses (339 ) 1,905 95 (993 ) (148 ) 1,310 (86 ) 2,513 4,257 Ending Balance, $ 11,829 $ 12,714 $ 3,152 $ 6,449 $ 1,062 $ 3,901 $ 94 $ 1,540 $ 40,741 As of September 30, 2018 Loans: Individually evaluated for impairment $ 1,343 $ 13,353 $ 1,335 $ 158 $ — $ 8,581 $ 10,378 $ 112 $ 35,260 Collectively evaluated for impairment 3,501,450 1,272,165 545,610 1,153,107 95,250 496,473 70,095 50,877 7,185,027 Loans acquired with credit deterioration 1,747 572 8,669 4,584 — 4,799 2,116 221 22,708 Total loans receivable (1) $ 3,504,540 $ 1,286,090 $ 555,614 $ 1,157,849 $ 95,250 $ 509,853 $ 82,589 $ 51,210 $ 7,242,995 Allowance for loan losses: Individually evaluated for impairment $ — $ 1,381 $ 80 $ — $ — $ 306 $ 4 $ — $ 1,771 Collectively evaluated for impairment 11,829 10,881 3,072 4,298 1,062 3,072 88 1,471 35,773 Loans acquired with credit deterioration — 452 — 2,151 — 523 2 69 3,197 Allowance for loan losses $ 11,829 $ 12,714 $ 3,152 $ 6,449 $ 1,062 $ 3,901 $ 94 $ 1,540 $ 40,741 Three Months Ended September 30, 2017 Multi-family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Real Estate Manufactured Housing Other Consumer Total (amounts in thousands) Ending Balance, $ 12,028 $ 11,585 $ 2,976 $ 7,786 $ 716 $ 2,995 $ 268 $ 104 $ 38,458 Charge-offs — (2,032 ) — (77 ) — (120 ) — (356 ) (2,585 ) Recoveries — 54 — — 27 7 — 1 89 Provision for loan losses 668 966 262 (53 ) 104 72 (77 ) 410 2,352 Ending Balance, $ 12,696 $ 10,573 $ 3,238 $ 7,656 $ 847 $ 2,954 $ 191 $ 159 $ 38,314 Nine Months Ended September 30, 2017 Ending Balance, $ 11,602 $ 11,050 $ 2,183 $ 7,894 $ 840 $ 3,342 $ 286 $ 118 $ 37,315 Charge-offs — (4,079 ) — (485 ) — (410 ) — (602 ) (5,576 ) Recoveries — 337 9 — 157 34 — 101 638 Provision for loan losses 1,094 3,265 1,046 247 (150 ) (12 ) (95 ) 542 5,937 Ending Balance, $ 12,696 $ 10,573 $ 3,238 $ 7,656 $ 847 $ 2,954 $ 191 $ 159 $ 38,314 As of December 31, 2017 Loans: Individually evaluated for impairment $ — $ 17,461 $ 1,448 $ 160 $ — $ 9,247 $ 10,089 $ 30 $ 38,435 Collectively evaluated for impairment 3,500,500 1,130,865 472,708 1,213,309 85,393 219,162 77,587 3,301 6,702,825 Loans acquired with credit deterioration 1,881 764 10,572 5,250 — 5,681 2,551 216 26,915 Total loans receivable $ 3,502,381 $ 1,149,090 $ 484,728 $ 1,218,719 $ 85,393 $ 234,090 $ 90,227 $ 3,547 $ 6,768,175 Allowance for loan losses: Individually evaluated for impairment $ — $ 650 $ 642 $ — $ — $ 155 $ 4 $ — $ 1,451 Collectively evaluated for impairment 12,168 9,804 2,580 4,630 979 2,177 82 117 32,537 Loans acquired with credit deterioration — 464 10 2,807 — 597 94 55 4,027 Allowance for loan losses $ 12,168 $ 10,918 $ 3,232 $ 7,437 $ 979 $ 2,929 $ 180 $ 172 $ 38,015 Certain manufactured housing loans were purchased in August 2010. A portion of the purchase price may be used to reimburse the Bank under the specified terms in the purchase agreement for defaults of the underlying borrower and other specified items. At September 30, 2018 and December 31, 2017 , funds available for reimbursement, if necessary, were $0.5 million and $0.6 million , respectively. Each quarter, these funds are evaluated to determine if they would be sufficient to absorb the probable incurred losses within the manufactured housing portfolio. Impaired Loans - Individually Evaluated for Impairment The following tables present the recorded investment (net of charge-offs), unpaid principal balance, and related allowance by loan type for impaired loans that were individually evaluated for impairment as of September 30, 2018 and December 31, 2017 and the average recorded investment and interest income recognized for the three and nine months ended September 30, 2018 and 2017 . Purchased-credit-impaired loans are considered to be performing and are not included in the tables below. September 30, 2018 Three Months Ended September 30, 2018 Nine Months Ended Recorded Unpaid Related Average Interest Average Interest (amounts in thousands) With no recorded allowance: Multi-family $ 1,343 $ 1,343 $ — $ 1,343 $ — $ 672 $ 8 Commercial and industrial 9,888 10,224 — 7,765 166 7,623 168 Commercial real estate owner occupied 704 1,187 — 711 — 711 — Commercial real estate non-owner occupied 158 271 — 1,347 — 774 8 Other consumer 112 112 — 103 1 83 1 Residential real estate 4,259 4,504 — 4,281 23 3,952 25 Manufactured housing 10,152 10,152 — 10,147 144 10,011 421 With an allowance recorded: Commercial and industrial 3,465 3,648 1,381 5,787 27 7,089 39 Commercial real estate owner occupied 631 631 80 336 9 546 11 Residential real estate 4,322 4,329 306 4,398 61 4,760 124 Manufactured housing 226 226 4 227 4 225 10 Total $ 35,260 $ 36,627 $ 1,771 $ 36,445 $ 435 $ 36,446 $ 815 December 31, 2017 Three Months Ended Nine Months Ended Recorded Unpaid Related Average Interest Average Interest (amounts in thousands) With no recorded allowance: Commercial and industrial $ 9,138 $ 9,287 $ — $ 13,345 $ 354 $ 8,796 $ 450 Commercial real estate owner occupied 806 806 — 1,744 15 1,589 18 Commercial real estate non-owner occupied 160 272 — 184 91 989 93 Other consumer 30 30 — 44 — 50 — Residential real estate 3,628 3,801 — 5,228 125 4,865 126 Manufactured housing 9,865 9,865 — 10,243 164 10,038 457 With an allowance recorded: Commercial and industrial 8,323 8,506 650 1,963 — 5,400 22 Commercial real estate owner occupied 642 642 642 1,056 1 950 3 Commercial real estate non-owner occupied — — — 51 — 94 — Other consumer — — — 12 — 6 — Residential real estate 5,619 5,656 155 2,862 — 2,729 84 Manufactured housing 224 224 4 114 — 108 8 Total $ 38,435 $ 39,089 $ 1,451 $ 36,846 $ 750 $ 35,614 $ 1,261 Troubled Debt Restructurings At September 30, 2018 and December 31, 2017 , there were $19.4 million and $20.4 million , respectively, in loans reported as troubled debt restructurings (“TDRs”). TDRs are reported as impaired loans in the calendar year of their restructuring and are evaluated to determine whether they should be placed on non-accrual status. In subsequent years, a TDR may be returned to accrual status if it satisfies a minimum performance requirement of six months , however, it will remain classified as impaired. Generally, the Bank requires sustained performance for nine months before returning a TDR to accrual status. Modifications of purchased-credit-impaired loans that are accounted for within loan pools in accordance with the accounting standards for purchased-credit-impaired loans do not result in the removal of these loans from the pool even if the modifications would otherwise be considered a TDR. Accordingly, as each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, modifications of loans within such pools are not considered TDRs. The following table presents total TDRs based on loan type and accrual status at September 30, 2018 and December 31, 2017 . Nonaccrual TDRs are included in the reported amount of total non-accrual loans. September 30, 2018 December 31, 2017 Accruing Nonaccrual TDRs Total Accruing TDRs Nonaccrual TDRs Total (amounts in thousands) Commercial and industrial $ 66 $ 5,311 $ 5,377 $ 63 $ 5,939 $ 6,002 Commercial real estate owner occupied 37 — 37 — — — Manufactured housing 8,457 1,781 10,238 8,130 1,766 9,896 Residential real estate 3,059 698 3,757 3,828 703 4,531 Other consumer — 13 13 — — — Total TDRs $ 11,619 $ 7,803 $ 19,422 $ 12,021 $ 8,408 $ 20,429 The following table presents loans modified in a troubled debt restructuring by type of concession for the three and nine months ended September 30, 2018 and 2017 . There were no modifications that involved forgiveness of debt for the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Extensions of maturity — $ — 1 $ 60 Interest-rate reductions 8 473 3 122 Total 8 $ 473 4 $ 182 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Extensions of maturity 1 $ 56 4 $ 6,263 Interest-rate reductions 32 1,402 32 1,297 Total 33 $ 1,458 36 $ 7,560 The following table provides, by loan type, the number of loans modified in troubled debt restructurings, and the related recorded investment, during the three and nine months ended September 30, 2018 and 2017 . Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Manufactured housing 7 $ 321 4 $ 182 Residential real estate 1 152 — — Total loans 8 $ 473 4 $ 182 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Number of Loans Recorded Investment Number of Loans Recorded Investment (dollars in thousands) Commercial and industrial — $ — 3 $ 6,203 Manufactured housing 30 1,093 33 1,357 Residential real estate 2 352 — — Other consumer 1 13 — — Total loans 33 $ 1,458 36 $ 7,560 As of September 30, 2018 and December 31, 2017 , except for one commercial and industrial loan with an outstanding commitment of $1.5 million and $2.1 million , respectively, there were no other commitments to lend additional funds to debtors whose loans have been modified in TDRs. As of September 30, 2018 , there were no loans modified in a TDR within the past twelve months that defaulted on payments. As of September 30, 2017 , ten manufactured housing loans totaling $0.5 million , that were modified in TDRs within the past twelve months , defaulted on payments. Loans modified in troubled debt restructurings are evaluated for impairment. The nature and extent of impairment of TDRs, including those which have experienced a subsequent default, is considered in the determination of an appropriate level of allowance for loan losses. There was no allowance recorded as a result of TDR modifications during the three and nine months ended September 30, 2018 . There was no allowance recorded as a result of TDR modifications during the three months ended September 30, 2017 . For the nine months ended September 30, 2017 , there was one allowance recorded resulting from TDR modifications, totaling $1 thousand for one manufactured housing loan. Purchased-Credit-Impaired Loans The changes in accretable yield related to purchased-credit-impaired loans for the three and nine months ended September 30, 2018 and 2017 were as follows: Three Months Ended September 30, 2018 2017 (amounts in thousands) Accretable yield balance as of June 30, $ 7,403 $ 9,006 Accretion to interest income (310 ) (368 ) Reclassification from nonaccretable difference and disposals, net (4 ) (276 ) Accretable yield balance as of September 30, $ 7,089 $ 8,362 Nine Months Ended September 30, 2018 2017 (amounts in thousands) Accretable yield balance as of December 31, $ 7,825 $ 10,202 Accretion to interest income (1,164 ) (1,326 ) Reclassification from nonaccretable difference and disposals, net 428 (514 ) Accretable yield balance as of September 30, $ 7,089 $ 8,362 Credit Quality Indicators The allowance for loan losses represents management's estimate of probable losses in Customers loans receivable portfolio, excluding mortgage warehouse loans carried under the fair value option. Multi-family, commercial and industrial, 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 loans, manufactured housing and other consumer loans are evaluated based on the payment activity of the loan. To facilitate the monitoring of credit quality within the multi-family, commercial and industrial, owner occupied commercial real estate, non-owner occupied commercial real estate, and construction loan portfolios, and for purposes of analyzing historical loss rates used in the determination of the allowance for loan losses for the respective loan portfolios, 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/satisfactory 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. The risk rating grades are defined as follows: “1” – Pass / Excellent Loans rated 1 represent a credit extension of the highest quality. The borrower’s historic (at least five years) cash flows manifest extremely large and stable margins of coverage. Balance sheets are conservative, well capitalized, and liquid. After considering debt service for proposed and existing debt, projected cash flows continue to be strong and provide ample coverage. The borrower typically reflects broad geographic and product diversification and has access to alternative financial markets. “2” – Pass / Superior Loans rated 2 are those for which the borrower has a strong financial condition, balance sheet, operations, cash flow, debt capacity and coverage with ratios better than industry norms. The borrowers of these loans exhibit a limited leverage position, are virtually immune to local economies, and are in stable growing industries. The management team is well respected and the company has ready access to public markets. “3” – Pass / Strong Loans rated 3 are those loans for which the borrowers have above average financial condition and flexibility; more than satisfactory debt service coverage; balance sheet and operating ratios are consistent with or better than industry peers; operate in industries with little risk; move in diversified markets; and are experienced and competent in their industry. These borrowers’ access to capital markets is limited mostly to private sources, often secured, but the borrower typically has access to a wide range of refinancing alternatives. “4” – Pass / Good Loans rated 4 have a sound primary and secondary source of repayment. The borrower may have access to alternative sources of financing, but sources are not as widely available as they are to a higher grade borrower. These loans carry a normal level of risk, with very low loss exposure. The borrower has the ability to perform according to the terms of the credit facility. The margins of cash flow coverage are satisfactory but vulnerable to more rapid deterioration than the higher quality loans. “5” – Satisfactory Loans rated 5 are extended to borrowers who are considered to be a reasonable credit risk and demonstrate the ability to repay the debt from normal business operations. Risk factors may include reliability of margins and cash flows, liquidity, dependence on a single product or industry, cyclical trends, depth of management, or limited access to alternative financing sources. The borrower’s historical financial information may indicate erratic performance, but current trends are positive and the quality of financial information is adequate, but is not as detailed and sophisticated as information found on higher grade loans. If adverse circumstances arise, the impact on the borrower may be significant. “6” – Satisfactory / Bankable with Care Loans rated 6 are those for which the borrower has higher than normal credit risk; however, cash flow and asset values are generally intact. These borrowers may exhibit declining financial characteristics, with increasing leverage and decreasing liquidity and may have limited resources and access to financial alternatives. Signs of weakness in these borrowers may include delinquent taxes, trade slowness and eroding profit margins. “7” – Special Mention Loans rated 7 are credit facilities that may have potential developing weaknesses and deserve extra attention from the account manager and other management personnel. In the event potential weaknesses are not corrected or mitigated, deterioration in the ability of the borrower to repay the debt in the future may occur. This grade is not assigned to loans that bear certain peculiar risks normally associated with the type of financing involved, unless circumstances have caused the risk to increase to a level higher than would have been acceptable when the credit was originally approved. Loans where significant actual, not potential, weaknesses or problems are clearly evident are graded in the category below. “8” – Substandard Loans are rated 8 when the loans are inadequately protected by the current sound worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt and are characterized by the distinct possibility that the company will sustain some loss if the weaknesses are not corrected. “9” – Doubtful The Bank assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. “10” – Loss The Bank assigns a loss rating to loans considered uncollectible and of such little value that their continuance as an active asset is not warranted. Amounts classified as loss are immediately charged off. 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 receivable as of September 30, 2018 and December 31, 2017 . September 30, 2018 Multi-Family Commercial and Industrial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Manufactured Housing Other Consumer Total (3) (amounts in thousands) Pass/Satisfactory $ 3,399,892 $ 1,235,945 $ 539,252 $ 1,084,388 $ 95,250 $ — $ — $ — $ 6,354,727 Special Mention 81,253 7,756 8,793 30,406 — — — — 128,208 Substandard 23,395 42,389 7,569 43,055 — — — — 116,408 Performing (1) — — — — — 502,010 74,893 51,053 627,956 Non-performing (2) — — — — — 7,843 7,696 157 15,696 Total $ 3,504,540 $ 1,286,090 $ 555,614 $ 1,157,849 $ 95,250 $ 509,853 $ 82,589 $ 51,210 $ 7,242,995 December 31, 2017 Multi-Family Commercial Commercial Real Estate Owner Occupied Commercial Real Estate Non-Owner Occupied Construction Residential Manufactured Housing Other Consumer Total (3) (amounts in thousands) Pass/Satisfactory $ 3,438,554 $ 1,118,889 $ 471,826 $ 1,185,933 $ 85,393 $ — $ — $ — $ 6,300,595 Special Mention 53,873 7,652 5,987 31,767 — — — — 99,279 Substandard 9,954 22,549 6,915 1,019 — — — — 40,437 Performing (1) — — — — — 221,042 81,497 3,400 305,939 Non-performing (2) — — — — — 13,048 8,730 147 21,925 Total $ 3,502,381 $ 1,149,090 $ 484,728 $ 1,218,719 $ 85,393 $ 234,090 $ 90,227 $ 3,547 $ 6,768,175 (1) Includes residential real estate, manufactured housing, and other consumer loans not subject to risk ratings. (2) Includes residential real estate, manufactured housing, and other consumer loans that are past due and still accruing interest or on nonaccrual status. (3) Excludes mortgage warehouse loans carried under the fair value option. Loan Purchases and Sales During third quarter 2018 , Customers purchased $72.7 million of mortgage and consumer loans from third party financial institutions. The purchase price was 95.3% of loans outstanding. During third quarter 2018 , Customers sold $12.1 million of Small Business Administration (SBA) loans resulting in a gain on sale of $1.1 million . There were no loan purchases during third quarter 2017 . In third quarter 2017 , Customers sold $11.0 million of SBA loans resulting in a gain on sale of $1.1 million . In second quarter 2018 , Customers purchased $277.4 million of thirty -year fixed-rate residential mortgage loans from a third party financial institution. The purchase price was 100.4% of loans outstanding. During second quarter 2018 , Customers sold $11.7 million of SBA loans resulting in a gain on sale of $0.9 million . In second quarter 2017 , Customers purchased $90 million of thirty -year fixed-rate residential mortgage loans from a third party financial institution. The purchase price was 101.0% of loans outstanding. In second quarter 2017 , Customers sold $7.0 million of SBA loans resulting in a gain on sale of $0.6 million . Customers did not purchase any loans during first quarter 2018 . During first quarter 2018 , Customers sold $15.0 million of SBA loans resulting in a gain on sale of $1.4 million . In first quarter 2017 , Customers purchased $174.2 million of thirty -year fixed-rate residential mortgage loans from a third party financial institution. The purchase price was 98.5% of loans outstanding. In first quarter 2017 , Customers sold $94.9 million of multi-family loans for $95.4 million resulting in a gain on sale of $0.5 million and $8.7 million of SBA loans resulting in a gain on sale of $0.8 million . None of the purchases and sales during the three and nine months ended September 30, 2018 and 2017 materially affected the credit profile of Customers’ loan portfolio. Loans Pledged as Collateral Customers has pledged eligible real estate loans as collateral for potential borrowings from the Federal Home Loan Bank of Pittsburgh ("FHLB") and Federal Reserve Bank of Philadelphia ("FRB") in the amount of $5.5 billion at both September 30, 2018 and December 31, 2017 . |