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Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of composition of loans portfolio

The following table summarizes the composition of our loans and leases held for investment as of the dates indicated:


	June 30,		December 31,
	2020		2019
	(In thousands)
Real estate mortgage	$	7,963,898	$	7,982,383
Real estate construction and land	3,371,672		2,773,209
Commercial	8,033,592		7,714,358
Consumer	411,314		440,790
Total gross loans and leases held for investment	19,780,476		18,910,740
Deferred fees, net	(85,845)		(63,868)
Total loans and leases held for investment, net of deferred fees	19,694,631		18,846,872
Allowance for loan and lease losses	(301,050)		(138,785)
Total loans and leases held for investment, net ⁽¹⁾	$	19,393,581	$	18,708,087

____________________

(1) Excludes accrued interest receivable of $63.0 million and $67.5 million at June 30, 2020 and December 31, 2019, respectively, which is recorded in "Other assets" on the condensed consolidated balance sheets.

Delinquent loans in loan portfolio

The following tables present an aging analysis of our loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated:


	June 30, 2020
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	42,784	$	6,985	$	49,769	$	4,172,306	$	4,222,075
Income producing and other residential	50		654		704		3,732,955		3,733,659
Total real estate mortgage	42,834		7,639		50,473		7,905,261		7,955,734
Real estate construction and land:
Commercial	—		—		—		1,167,609		1,167,609
Residential	1,022		—		1,022		2,171,897		2,172,919
Total real estate construction and land	1,022		—		1,022		3,339,506		3,340,528
Commercial:
Asset-based	3,697		17,725		21,422		3,391,009		3,412,431
Venture capital	3,939		—		3,939		1,810,402		1,814,341
Other commercial	7,991		1,877		9,868		2,750,410		2,760,278
Total commercial	15,627		19,602		35,229		7,951,821		7,987,050
Consumer	1,067		215		1,282		410,037		411,319
Total	$	60,550	$	27,456	$	88,006	$	19,606,625	$	19,694,631


	December 31, 2019
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	2,448	$	5,919	$	8,367	$	4,194,320	$	4,202,687
Income producing and other residential	2,105		802		2,907		3,767,153		3,770,060
Total real estate mortgage	4,553		6,721		11,274		7,961,473		7,972,747
Real estate construction and land:
Commercial	—		—		—		1,082,368		1,082,368
Residential	1,429		—		1,429		1,654,005		1,655,434
Total real estate construction and land	1,429		—		1,429		2,736,373		2,737,802
Commercial:
Asset-based	19		—		19		3,748,388		3,748,407
Venture capital	—		—		—		2,179,422		2,179,422
Other commercial	2,781		4,164		6,945		1,760,722		1,767,667
Total commercial	2,800		4,164		6,964		7,688,532		7,695,496
Consumer	1,006		200		1,206		439,621		440,827
Total	$	9,788	$	11,085	$	20,873	$	18,825,999	$	18,846,872

Financing Receivable, Nonaccrual

The following table presents our nonaccrual and performing loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated:


	June 30, 2020										December 31, 2019
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	61,771	$	4,160,304	$	4,222,075	$	18,346	$	4,184,341	$	4,202,687
Income producing and other residential	2,207		3,731,452		3,733,659		2,478		3,767,582		3,770,060
Total real estate mortgage	63,978		7,891,756		7,955,734		20,824		7,951,923		7,972,747
Real estate construction and land:
Commercial	337		1,167,272		1,167,609		364		1,082,004		1,082,368
Residential	—		2,172,919		2,172,919		—		1,655,434		1,655,434
Total real estate construction and land	337		3,340,191		3,340,528		364		2,737,438		2,737,802
Commercial:
Asset-based	19,013		3,393,418		3,412,431		30,162		3,718,245		3,748,407
Venture capital	8,270		1,806,071		1,814,341		12,916		2,166,506		2,179,422
Other commercial	73,995		2,686,283		2,760,278		27,594		1,740,073		1,767,667
Total commercial	101,278		7,885,772		7,987,050		70,672		7,624,824		7,695,496
Consumer	520		410,799		411,319		493		440,334		440,827
Total	$	166,113	$	19,528,518	$	19,694,631	$	92,353	$	18,754,519	$	18,846,872

CV of loans held for investment by class by performing and nonperforming

The following tables present the credit risk rating categories for loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated. Classified loans and leases are those with a credit risk rating of either substandard or doubtful.


	June 30, 2020
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	71,446	$	322,312	$	3,828,317	$	4,222,075
Income producing and other residential	6,941		6,150		3,720,568		3,733,659
Total real estate mortgage	78,387		328,462		7,548,885		7,955,734
Real estate construction and land:
Commercial	337		12,354		1,154,918		1,167,609
Residential	—		—		2,172,919		2,172,919
Total real estate construction and land	337		12,354		3,327,837		3,340,528
Commercial:
Asset-based	25,008		186,813		3,200,610		3,412,431
Venture capital	29,054		138,403		1,646,884		1,814,341
Other commercial	159,814		82,313		2,518,151		2,760,278
Total commercial	213,876		407,529		7,365,645		7,987,050
Consumer	630		18,052		392,637		411,319
Total	$	293,230	$	766,397	$	18,635,004	$	19,694,631


	December 31, 2019
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	33,535	$	30,070	$	4,139,082	$	4,202,687
Income producing and other residential	8,600		1,711		3,759,749		3,770,060
Total real estate mortgage	42,135		31,781		7,898,831		7,972,747
Real estate construction and land:
Commercial	364		—		1,082,004		1,082,368
Residential	—		1,429		1,654,005		1,655,434
Total real estate construction and land	364		1,429		2,736,009		2,737,802
Commercial:
Asset-based	32,223		38,936		3,677,248		3,748,407
Venture capital	35,316		74,813		2,069,293		2,179,422
Other commercial	65,261		174,785		1,527,621		1,767,667
Total commercial	132,800		288,534		7,274,162		7,695,496
Consumer	613		1,212		439,002		440,827
Total	$	175,912	$	322,956	$	18,348,004	$	18,846,872

Finance Receivable Investment And Interest Income, Nonaccrual

The following table presents our nonaccrual loans and leases by loan portfolio segment and class and by with and without an allowance recorded as of the date indicated and interest income recognized on nonaccrual loans and leases for the period indicated:


	At and For the Three Months Ended						At and For the Six Months Ended
	June 30, 2020						June 30, 2020
	Nonaccrual		Interest		Nonaccrual		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)						(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	304	$	—	$	304	$	—
Income producing and other residential	1,445		—		1,445		—



Commercial:
Asset based	2,458		—		2,458		—
Venture capital	8,270		—		8,270		—
Other commercial	45,569		—		45,569		—
Consumer	520		—		520		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	61,467	$	62	$	61,467	$	130
Income producing and other residential	762		—		762		—
Real estate construction and land:
Commercial	337		—		337		—

Commercial:
Asset based	16,555		—		16,555		—

Other commercial	28,426		1,196		28,426		1,220

Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	63,978	$	62	$	63,978	$	130
Real estate construction and land	337		—		337		—
Commercial	101,278		1,196		101,278		1,220
Consumer	520		—		520		—
Total	$	166,113	$	1,258	$	166,113	$	1,350

Finance Receivable, Loans By Origination Year

The following tables present our loans held for investment by loan portfolio segment and class, by credit quality indicator (internal risk ratings), and by year of origination (vintage year) as of the date indicated:


															Revolving
															Converted
Amortized Cost Basis	Term Loans by Origination Year																		Revolving	to Term
June 30, 2020	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	15,131	$	15,672	$	10,233	$	62,921	$	—	$	—	$	103,957
3-4 Pass	338,636		538,666		720,870		805,795		358,812		890,775		66,993		3,813		3,724,360
5 Special mention	—		55,250		92,175		2,558		77,811		94,518		—		—		322,312
6-8 Classified	—		1,367		183		21,747		2,909		45,240		—		—		71,446
Total	$	338,636	$	595,283	$	828,359	$	845,772	$	449,765	$	1,093,454	$	66,993	$	3,813	$	4,222,075
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	1,831	$	—	$	2,676	$	—	$	—	$	4,507
Gross recoveries	—		—		—		—		—		(237)		—		—		(237)
Net	$	—	$	—	$	—	$	1,831	$	—	$	2,439	$	—	$	—	$	4,270

Real Estate Mortgage:
Income Producing and
Other Residential
Internal risk rating:
1-2 High pass	$	—	$	34,966	$	76,744	$	46,031	$	54,261	$	28,639	$	—	$	—	$	240,641
3-4 Pass	148,116		843,413		1,243,035		653,956		260,740		220,111		109,783		773		3,479,927
5 Special mention	—		—		2,888		962		—		—		2,300		—		6,150
6-8 Classified	—		—		—		—		—		5,452		106		1,383		6,941
Total	$	148,116	$	878,379	$	1,322,667	$	700,949	$	315,001	$	254,202	$	112,189	$	2,156	$	3,733,659
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	175	$	175
Gross recoveries	—		—		—		—		—		(13)		(1)		—		(14)
Net	$	—	$	—	$	—	$	—	$	—	$	(13)	$	(1)	$	175	$	161

Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	22,576		285,286		362,367		216,294		119,503		137,008		7,112		4,772		1,154,918
5 Special mention	—		—		12,354		—		—		—		—		—		12,354
6-8 Classified	—		—		—		—		—		337		—		—		337
Total	$	22,576	$	285,286	$	374,721	$	216,294	$	119,503	$	137,345	$	7,112	$	4,772	$	1,167,609
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Gross recoveries	—		—		—		—		—		—		—		—		—
Net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—


															Revolving
															Converted
Amortized Cost Basis	Term Loans by Origination Year																		Revolving	to Term
June 30, 2020	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	177,247		366,209		783,534		671,665		110,532		2,051		18,714		42,967		2,172,919
5 Special mention	—		—		—		—		—		—		—		—		—
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	177,247	$	366,209	$	783,534	$	671,665	$	110,532	$	2,051	$	18,714	$	42,967	$	2,172,919
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Gross recoveries	—		—		—		—		—		—		—		—		—
Net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	22,993	$	178,052	$	116,797	$	65,756	$	130,266	$	95,166	$	288,230	$	98,416	$	995,676
3-4 Pass	45,866		141,935		111,495		40,166		58,534		60,573		1,722,555		23,810		2,204,934
5 Special mention	—		66,446		52,740		22,597		18,793		1,429		19,720		5,088		186,813
6-8 Classified	—		—		—		—		—		15,854		8,836		318		25,008
Total	$	68,859	$	386,433	$	281,032	$	128,519	$	207,593	$	173,022	$	2,039,341	$	127,632	$	3,412,431
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	11,550	$	—	$	—	$	11,550
Gross recoveries	(8)		—		—		—		—		(323)		(56)		—		(387)
Net	$	(8)	$	—	$	—	$	—	$	—	$	11,227	$	(56)	$	—	$	11,163

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass⁽¹⁾	$	—	$	5,649	$	—	$	(6)	$	(6)	$	(2)	$	237,484	$	—	$	243,119
3-4 Pass	50,908		172,879		82,954		11,696		34,275		9,055		1,036,748		5,250		1,403,765
5 Special mention	9,499		28,162		27,430		4,000		610		—		66,685		2,017		138,403
6-8 Classified	—		(866)		10,871		—		—		3,632		12,574		2,843		29,054
Total	$	60,407	$	205,824	$	121,255	$	15,690	$	34,879	$	12,685	$	1,353,491	$	10,110	$	1,814,341
Current YTD period:
Gross charge-offs	$	—	$	—	$	6,532	$	—	$	(8)	$	149	$	140	$	—	$	6,813
Gross recoveries	—		—		(41)		(104)		(136)		(3)		(15)		—		(299)
Net	$	—	$	—	$	6,491	$	(104)	$	(144)	$	146	$	125	$	—	$	6,514

____________________

(1) Amounts with negative balances are loans with zero principal balances but have deferred loan origination fees.


															Revolving
															Converted
Amortized Cost Basis	Term Loans by Origination Year																		Revolving	to Term
June 30, 2020	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	1,209,264	$	432	$	8	$	16,894	$	1	$	3,076	$	97,116	$	136	$	1,326,927
3-4 Pass	19,833		102,743		112,650		97,807		33,596		108,841		698,428		17,326		1,191,224
5 Special mention	—		109		—		818		1,995		4,892		73,339		1,160		82,313
6-8 Classified	1		3		35		70		4,126		46,522		105,085		3,972		159,814
Total	$	1,229,098	$	103,287	$	112,693	$	115,589	$	39,718	$	163,331	$	973,968	$	22,594	$	2,760,278
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	52	$	—	$	996	$	10,031	$	1,229	$	12,308
Gross recoveries	—		—		(8)		(19)		(73)		(2,459)		(100)		(2)		(2,661)
Net	$	—	$	—	$	(8)	$	33	$	(73)	$	(1,463)	$	9,931	$	1,227	$	9,647

Consumer
Internal risk rating:
1-2 High pass	$	23	$	—	$	10	$	18	$	—	$	—	$	752	$	—	$	803
3-4 Pass	51,068		138,584		71,591		50,523		53,886		15,445		10,735		2		391,834
5 Special mention	—		637		9,971		2,097		3,592		1,755		—		—		18,052
6-8 Classified	—		57		116		—		62		355		1		39		630
Total	$	51,091	$	139,278	$	81,688	$	52,638	$	57,540	$	17,555	$	11,488	$	41	$	411,319
Current YTD period:
Gross charge-offs	$	—	$	97	$	86	$	135	$	295	$	—	$	21	$	4	$	638
Gross recoveries	—		—		(1)		(5)		(14)		(21)		—		—		(41)
Net	$	—	$	97	$	85	$	130	$	281	$	(21)	$	21	$	4	$	597

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	1,232,280	$	219,099	$	208,690	$	144,365	$	194,755	$	189,800	$	623,582	$	98,552	$	2,911,123
3-4 Pass	854,250		2,589,715		3,488,496		2,547,902		1,029,878		1,443,859		3,671,068		98,713		15,723,881
5 Special mention	9,499		150,604		197,558		33,032		102,801		102,594		162,044		8,265		766,397
6-8 Classified	1		561		11,205		21,817		7,097		117,392		126,602		8,555		293,230
Total	$	2,096,030	$	2,959,979	$	3,905,949	$	2,747,116	$	1,334,531	$	1,853,645	$	4,583,296	$	214,085	$	19,694,631
Current YTD period:
Gross charge-offs	$	—	$	97	$	6,618	$	2,018	$	287	$	15,371	$	10,192	$	1,408	$	35,991
Gross recoveries	(8)		—		(50)		(128)		(223)		(3,056)		(172)		(2)		(3,639)
Net	$	(8)	$	97	$	6,568	$	1,890	$	64	$	12,315	$	10,020	$	1,406	$	32,352

Troubled debt restructurings on financing receivables

The following table presents our troubled debt restructurings of loans held for investment by loan portfolio segment and class for the periods indicated:


	Three Months Ended June 30,
	2020								2019
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
	Number	Outstanding		Outstanding		Number	Outstanding		Outstanding
	of	Recorded		Recorded		of	Recorded		Recorded
Troubled Debt Restructurings	Loans	Investment		Investment		Loans	Investment		Investment
	(Dollars in thousands)
Real estate mortgage:
Commercial	7	$	3,745	$	3,745	—	$	—	$	—
Income producing and other residential	5	787		787		3	456		456



Commercial:
Asset-based	6	1,234		1,234		1	620		620
Venture capital	—	—		—		4	13,971		14,972
Other commercial	19	18,840		15,726		3	107		107
Consumer	3	212		212		—	—		—
Total	40	$	24,818	$	21,704	11	$	15,154	$	16,155


	Six Months Ended June 30,
	2020								2019
		Pre-		Post-			Pre-		Post-
		Modification		Modification			Modification		Modification
	Number	Outstanding		Outstanding		Number	Outstanding		Outstanding
	of	Recorded		Recorded		of	Recorded		Recorded
Troubled Debt Restructurings	Loans	Investment		Investment		Loans	Investment		Investment
	(Dollars in thousands)
Real estate mortgage:
Commercial	8	$	3,745	$	3,745	1	$	37	$	—
Income producing and other residential	5	787		787		6	1,245		1,245



Commercial:
Asset-based	7	1,741		1,741		1	620		620
Venture capital	2	2,047		2,047		10	16,076		16,214
Other commercial	30	23,219		21,444		11	692		692
Consumer	3	212		212		—	—		—
Total	55	$	31,751	$	29,976	29	$	18,670	$	18,771

Lease Income of Direct Financing Leases

The following table provides the components of leases receivable income for the periods indicated:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2020		2019		2020		2019
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	2,103	$	2,886	$	4,355	$	6,026

Assets and Liabilities, Lessor

The following table presents the components of leases receivable as of the dates indicated:


	June 30, 2020		December 31, 2019
	(In thousands)
Net investment in direct financing leases:
Lease payments receivable	$	137,984	$	147,729
Unguaranteed residual assets	18,653		20,806
Deferred costs and other	577		655
Aggregate net investment in leases	$	157,214	$	169,190

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

The following table presents maturities of leases receivable as of the date indicated:


	June 30, 2020
	(In thousands)
Period ending December 31,
2020	$	35,218
2021	61,182
2022	24,981
2023	14,366
2024	10,469
2025 and thereafter	2,766
Total undiscounted cash flows	148,982
Less: Unearned income	(10,998)
Present value of lease payments	$	137,984

Finance Receivable, Allowance For Loan Losses

The following tables present a summary of the activity in the allowance for loan and lease losses on loans and leases held for investment by loan portfolio segment for the periods indicated:















	Three Months Ended June 30, 2020
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	91,372	$	40,173	$	87,570	$	2,177	$	221,292
Charge-offs	(4,182)		—		(11,439)		(165)		(15,786)
Recoveries	127		—		2,392		25		2,544
Net charge-offs	(4,055)		—		(9,047)		(140)		(13,242)
Provision	43,407		29,940		19,424		229		93,000
Balance, end of period	$	130,724	$	70,113	$	97,947	$	2,266	$	301,050















	Six Months Ended June 30, 2020
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	44,575	$	30,544	$	61,528	$	2,138	$	138,785
Charge-offs	(4,682)		—		(30,671)		(638)		(35,991)
Recoveries	251		—		3,347		41		3,639
Net charge-offs	(4,431)		—		(27,324)		(597)		(32,352)
Provision	85,272		48,161		56,883		684		191,000
Cumulative effect of change in accounting
principle - CECL	5,308		(8,592)		6,860		41		3,617
Balance, end of period	$	130,724	$	70,113	$	97,947	$	2,266	$	301,050

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	211	$	—	$	8,282	$	—	$	8,493
Collectively evaluated	$	130,513	$	70,113	$	89,665	$	2,266	$	292,557

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	68,240	$	1,799	$	105,661	$	—	$	175,700
Collectively evaluated	7,887,494		3,338,729		7,881,389		411,319		19,518,931
Ending balance	$	7,955,734	$	3,340,528	$	7,987,050	$	411,319	$	19,694,631















	Three Months Ended June 30, 2019
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	45,754	$	27,208	$	61,496	$	1,823	$	136,281
Charge-offs	(534)		—		(16,927)		(176)		(17,637)
Recoveries	240		—		6,080		73		6,393
Net charge-offs	(294)		—		(10,847)		(103)		(11,244)
Provision (negative provision)	1,366		(830)		8,752		712		10,000
Balance, end of period	$	46,826	$	26,378	$	59,401	$	2,432	$	135,037















	Six Months Ended June 30, 2019
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	46,021	$	28,209	$	56,360	$	1,882	$	132,472
Charge-offs	(730)		—		(19,930)		(442)		(21,102)
Recoveries	383		—		9,186		98		9,667
Net charge-offs	(347)		—		(10,744)		(344)		(11,435)
Provision (negative provision)	1,152		(1,831)		13,785		894		14,000
Balance, end of period	$	46,826	$	26,378	$	59,401	$	2,432	$	135,037

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	260	$	—	$	4,482	$	—	$	4,742
Collectively evaluated	$	46,566	$	26,378	$	54,919	$	2,432	$	130,295

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	27,594	$	5,376	$	60,380	$	—	$	93,350
Collectively evaluated	8,048,432		2,370,754		7,513,934		446,382		18,379,502
Ending balance	$	8,076,026	$	2,376,130	$	7,574,314	$	446,382	$	18,472,852

Collateral-dependent Finance Receivable

The following table summarizes collateral-dependent loans held for investment by collateral type as of the following date:


	June 30, 2020
	Real		Business
	Property		Assets		Total
	(In thousands)
Real estate mortgage	$	62,021	$	—	$	62,021
Real estate construction and land	1,799		—		1,799
Commercial	—		32,135		32,135
Total	$	63,820	$	32,135	$	95,955

Allowance for credit losses on financing receivables

The following tables present a summary of the activity in the allowance for loan and lease losses and reserve for unfunded loan commitments for the periods indicated:


	Three Months Ended
	June 30, 2020
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	221,292	$	53,571	$	274,863
Charge-offs	(15,786)		—		(15,786)
Recoveries	2,544		—		2,544
Net charge-offs	(13,242)		—		(13,242)
Provision	93,000		27,000		120,000
Balance, end of period	$	301,050	$	80,571	$	381,621


	Six Months Ended
	June 30, 2020
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	138,785	$	35,861	$	174,646
Charge-offs	(35,991)		—		(35,991)
Recoveries	3,639		—		3,639
Net charge-offs	(32,352)		—		(32,352)
Provision	191,000		41,000		232,000
Cumulative effect of change in accounting
principle - CECL	3,617		3,710		7,327
Balance, end of period	$	301,050	$	80,571	$	381,621


	Three Months Ended
	June 30, 2019
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	136,281	$	36,861	$	173,142
Charge-offs	(17,637)		—		(17,637)
Recoveries	6,393		—		6,393
Net charge-offs	(11,244)		—		(11,244)
Provision (negative provision)	10,000		(2,000)		8,000
Balance, end of period	$	135,037	$	34,861	$	169,898


	Six Months Ended
	June 30, 2019
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	132,472	$	36,861	$	169,333
Charge-offs	(21,102)		—		(21,102)
Recoveries	9,667		—		9,667
Net charge-offs	(11,435)		—		(11,435)
Provision (negative provision)	14,000		(2,000)		12,000
Balance, end of period	$	135,037	$	34,861	$	169,898