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Loans and Leases
 12 Months Ended
Dec. 31, 2020
Statement of Financial Position [Abstract]  
Loans and Leases
NOTE 4.  LOANS AND LEASES
Loans and Leases Held for Investment
The following table summarizes the composition of our loans and leases held for investment as of the dates indicated:
December 31,
20202019
(In thousands)
Real estate mortgage$7,905,193 $7,982,383 
Real estate construction and land3,393,145 2,773,209 
Commercial7,534,801 7,714,358 
Consumer320,218 440,790 
Total gross loans and leases held for investment19,153,357 18,910,740 
Deferred fees, net(69,980)(63,868)
Total loans and leases held for investment, net of deferred fees19,083,377 18,846,872 
Allowance for loan and lease losses(348,181)(138,785)
Total loans and leases held for investment, net (1)$18,735,196 $18,708,087 
____________________
(1)    Excludes accrued interest receivable of $79.7 million and $67.5 million at December 31, 2020 and December 31, 2019, respectively, which is recorded in "Other assets" on the consolidated balance sheets.
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:
December 31, 2020
30 - 8990 or More
DaysDaysTotal
Past DuePast DuePast DueCurrentTotal
 (In thousands)
Real estate mortgage:
Commercial$6,750 $29,145 $35,895 $4,060,776 $4,096,671 
Income producing and other residential600 373 973 3,802,292 3,803,265 
Total real estate mortgage7,350 29,518 36,868 7,863,068 7,899,936 
Real estate construction and land:
Commercial— — — 1,117,121 1,117,121 
Residential759 — 759 2,242,401 2,243,160 
Total real estate construction and land759 — 759 3,359,522 3,360,281 
Commercial:
Asset-based— 2,128 2,128 3,427,155 3,429,283 
Venture capital540 — 540 1,697,968 1,698,508 
Other commercial2,323 4,766 7,089 2,368,025 2,375,114 
Total commercial2,863 6,894 9,757 7,493,148 7,502,905 
Consumer 1,260 111 1,371 318,884 320,255 
Total$12,232 $36,523 $48,755 $19,034,622 $19,083,377 
December 31, 2019
30 - 8990 or More
DaysDaysTotal
Past DuePast DuePast DueCurrentTotal
 (In thousands)
Real estate mortgage:
Commercial$2,448 $5,919 $8,367 $4,194,320 $4,202,687 
Income producing and other residential2,105 802 2,907 3,767,153 3,770,060 
Total real estate mortgage4,553 6,721 11,274 7,961,473 7,972,747 
Real estate construction and land:
Commercial— — — 1,082,368 1,082,368 
Residential1,429 — 1,429 1,654,005 1,655,434 
Total real estate construction and land1,429 — 1,429 2,736,373 2,737,802 
Commercial:
Asset-based19 — 19 3,748,388 3,748,407 
Venture capital— — — 2,179,422 2,179,422 
Other commercial2,781 4,164 6,945 1,760,722 1,767,667 
Total commercial2,800 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 
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:  
December 31,
 20202019
NonaccrualPerformingTotalNonaccrualPerformingTotal
 (In thousands)
Real estate mortgage:
Commercial$43,731 $4,052,940 $4,096,671 $18,346 $4,184,341 $4,202,687 
Income producing and other residential1,826 3,801,439 3,803,265 2,478 3,767,582 3,770,060 
Total real estate mortgage45,557 7,854,379 7,899,936 20,824 7,951,923 7,972,747 
Real estate construction and land:
Commercial315 1,116,806 1,117,121 364 1,082,004 1,082,368 
Residential— 2,243,160 2,243,160 — 1,655,434 1,655,434 
Total real estate construction and land315 3,359,966 3,360,281 364 2,737,438 2,737,802 
Commercial:
Asset-based2,679 3,426,604 3,429,283 30,162 3,718,245 3,748,407 
Venture capital1,980 1,696,528 1,698,508 12,916 2,166,506 2,179,422 
Other commercial40,243 2,334,871 2,375,114 27,594 1,740,073 1,767,667 
Total commercial44,902 7,458,003 7,502,905 70,672 7,624,824 7,695,496 
Consumer 389 319,866 320,255 493 440,334 440,827 
Total $91,163 $18,992,214 $19,083,377 $92,353 $18,754,519 $18,846,872 
The amount of interest income that would have been recorded on nonaccrual loans and leases at December 31, 2020 and 2019 had such loans and leases been current in accordance with their original terms was $7.5 million and $8.1 million for 2020 and 2019.
At December 31, 2020, nonaccrual loans and leases included $36.5 million of loans and leases 90 or more days past due, $3.4 million of loans 30 to 89 days past due and $51.3 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectability. At December 31, 2019, nonaccrual loans and leases included $11.1 million of loans and leases 90 or more days past due, $1.2 million of loans 30 to 89 days past due and $80.0 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectability.
As of December 31, 2020, our three largest loan relationships on nonaccrual status had an aggregate carrying value of $53.4 million and represented 59% of total nonaccrual loans and leases.
The following tables present the credit risk rating categories for loans and leases held for investment 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.
December 31, 2020
ClassifiedSpecial MentionPassTotal
(In thousands)
Real estate mortgage:
Commercial$91,543 $262,462 $3,742,666 $4,096,671 
Income producing and other residential8,767 61,384 3,733,114 3,803,265 
Total real estate mortgage100,310 323,846 7,475,780 7,899,936 
Real estate construction and land:
Commercial42,558 107,592 966,971 1,117,121 
Residential— 759 2,242,401 2,243,160 
Total real estate construction and land42,558 108,351 3,209,372 3,360,281 
Commercial:
Asset-based27,867 153,301 3,248,115 3,429,283 
Venture capital6,508 118,125 1,573,875 1,698,508 
Other commercial87,557 14,930 2,272,627 2,375,114 
Total commercial121,932 286,356 7,094,617 7,502,905 
Consumer 462 2,732 317,061 320,255 
Total $265,262 $721,285 $18,096,830 $19,083,377 

December 31, 2019
ClassifiedSpecial MentionPassTotal
(In thousands)
Real estate mortgage:
Commercial$33,535 $30,070 $4,139,082 $4,202,687 
Income producing and other residential8,600 1,711 3,759,749 3,770,060 
Total real estate mortgage42,135 31,781 7,898,831 7,972,747 
Real estate construction and land:
Commercial364 — 1,082,004 1,082,368 
Residential— 1,429 1,654,005 1,655,434 
Total real estate construction and land364 1,429 2,736,009 2,737,802 
Commercial:
Asset-based32,223 38,936 3,677,248 3,748,407 
Venture capital35,316 74,813 2,069,293 2,179,422 
Other commercial65,261 174,785 1,527,621 1,767,667 
Total commercial132,800 288,534 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 
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 year indicated:
At and For the Year Ended
 December 31, 2020
NonaccrualInterest
RecordedIncome
InvestmentRecognized
 (In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial$78 $— 
Income producing and other residential1,260 — 
Commercial:
Asset based2,128 — 
Venture capital1,980 — 
Other commercial2,438 — 
Consumer389 — 
With No Related Allowance Recorded:
Real estate mortgage:
Commercial$43,653 $524 
Income producing and other residential566 — 
Real estate construction and land:
Commercial315 — 
Commercial:
Asset based551 — 
Other commercial37,805 5,052 
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage$45,557 $524 
Real estate construction and land315 — 
Commercial44,902 5,052 
Consumer389 — 
Total$91,163 $5,576 
Prior to January 1, 2020, a loan or lease was considered impaired when it was probable that we would be unable to collect all amounts due according to the contractual terms of the loan or lease agreement. Impaired loans and leases included loans and leases on nonaccrual status and performing troubled debt restructured loans.
The following tables present information regarding our impaired loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of and for the years indicated:

 December 31, 2019
Unpaid
Recorded PrincipalRelated
InvestmentBalanceAllowance
 (In thousands)
With An Allowance Recorded:   
Real estate mortgage:
Commercial$479 $479 $71 
Income producing and other residential2,002 2,005 160 
Commercial:
Venture capital7,811 9,106 2,581 
Other commercial14,805 15,191 3,385 
With No Related Allowance Recorded:
Real estate mortgage:
Commercial$21,264 $36,247 $— 
Income producing and other residential7,244 9,442 — 
Real estate construction and land:
Commercial1,834 1,887 — 
Commercial:
Asset based30,162 52,139 — 
Venture capital5,270 44,468 — 
Other commercial13,174 32,242 — 
Consumer565 728 — 
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage$30,989 $48,173 $231 
Real estate construction and land1,834 1,887 — 
Commercial71,222 153,146 5,966 
Consumer565 728 — 
Total$104,610 $203,934 $6,197 
 Year Ended December 31,
 20192018
WeightedInterest WeightedInterest
Average Income Average Income
Balance (1)
Recognized
Balance (1)
Recognized
 (In thousands)
With An Allowance Recorded:    
Real estate mortgage:
Commercial$479 $31 $1,736 $72 
Income producing and other residential2,001 58 2,199 75 
Commercial:
Venture capital7,008 — 9,449 — 
Other commercial3,710 — 35 — 
With No Related Allowance Recorded:
Real estate mortgage:
Commercial$16,252 $230 $15,714 $236 
Income producing and other residential6,898 217 7,191 181 
Real estate construction and land:
Commercial1,834 118 5,460 383 
Commercial:
Asset-based28,829 — 32,324 — 
Venture capital4,735 — 689 — 
Other commercial7,303 75 6,286 98 
Consumer413 5 844 7 
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage$25,630 $536 $26,840 $564 
Real estate construction and land1,834 118 5,460 383 
Commercial51,585 75 48,783 98 
Consumer413 5 844 7 
Total$79,462 $734 $81,927 $1,052 
____________________
(1)    For loans and leases reported as impaired at December 31, 2019 and 2018, amounts were calculated based on the period of time such loans and leases were impaired during the reporting period.
The following tables present our loans held for investment by loan portfolio segment and class, by credit quality indicator (internal risk ratings), and by year of origination (vintage year) as of the date indicated:
Revolving
Converted
Amortized Cost BasisTerm Loans by Origination YearRevolvingto Term
December 31, 202020202019201820172016PriorLoansLoansTotal
(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass$— $28,304 $4,848 $13,184 $12,241 $41,222 $— $— $99,799 
3-4 Pass554,143 413,785 574,497 725,503 405,367 893,008 62,586 13,978 3,642,867 
5 Special mention2,622 78,484 99,397 14,625 9,967 57,367 — — 262,462 
6-8 Classified504 1,255 7,489 7,869 16,797 57,629 — — 91,543 
Total$557,269 $521,828 $686,231 $761,181 $444,372 $1,049,226 $62,586 $13,978 $4,096,671 
Current YTD period:
Gross charge-offs$— $— $154 $3,330 $— $6,694 $— $— $10,178 
Gross recoveries— — — (9)— (280)— — (289)
Net $— $— $154 $3,321 $— $6,414 $— $— $9,889 
Real Estate Mortgage:
Income Producing and
Other Residential
Internal risk rating:
1-2 High pass$58,714 $55,826 $28,831 $33,017 $18,991 $9,265 $— $— $204,644 
3-4 Pass491,504 850,978 1,067,109 577,906 238,499 187,959 113,987 528 3,528,470 
5 Special mention12,307 4,207 42,455 1,554 — — 861 — 61,384 
6-8 Classified— — 2,862 — — 4,950 118 837 8,767 
Total$562,525 $911,011 $1,141,257 $612,477 $257,490 $202,174 $114,966 $1,365 $3,803,265 
Current YTD period:
Gross charge-offs$— $— $— $— $— $51 $— $457 $508 
Gross recoveries— — — — — (327)(1)— (328)
Net $— $— $— $— $— $(276)$(1)$457 $180 
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass$— $— $— $— $— $— $— $— $— 
3-4 Pass66,114 369,588 357,295 118,586 36,027 11,778 7,583 — 966,971 
5 Special mention— — 40,396 67,196 — — — — 107,592 
6-8 Classified— — — — 42,243 315 — — 42,558 
Total$66,114 $369,588 $397,691 $185,782 $78,270 $12,093 $7,583 $— $1,117,121 
Current YTD period:
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Gross recoveries— — — — — — — — — 
Net $— $— $— $— $— $— $— $— $— 
Revolving
Converted
Amortized Cost BasisTerm Loans by Origination YearRevolvingto Term
December 31, 202020202019201820172016PriorLoansLoansTotal
(In thousands)
Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass$— $— $— $— $— $— $— $— $— 
3-4 Pass345,134 670,894 849,819 285,072 28,725 688 9,034 53,035 2,242,401 
5 Special mention759 — — — — — — — 759 
6-8 Classified— — — — — — — — — 
Total$345,893 $670,894 $849,819 $285,072 $28,725 $688 $9,034 $53,035 $2,243,160 
Current YTD period:
Gross charge-offs$— $— $— $— $— $— $— $— $— 
Gross recoveries— — — — — (21)— — (21)
Net $— $— $— $— $— $(21)$— $— $(21)
Commercial: Asset-Based
Internal risk rating:
1-2 High pass$116,247 $173,457 $111,630 $69,244 $121,838 $88,201 $275,093 $72,017 $1,027,727 
3-4 Pass155,221 84,798 85,539 42,928 8,227 46,663 1,750,934 46,078 2,220,388 
5 Special mention— 59,822 41,789 9,022 14,274 482 23,257 4,655 153,301 
6-8 Classified— — — — 19,417 551 8,799 (900)27,867 
Total$271,468 $318,077 $238,958 $121,194 $163,756 $135,897 $2,058,083 $121,850 $3,429,283 
Current YTD period:
Gross charge-offs$— $— $— $— $— $11,817 $— $— $11,817 
Gross recoveries(52)— — — — (420)(236)— (708)
Net $(52)$— $— $— $— $11,397 $(236)$— $11,109 
Commercial: Venture
Capital
Internal risk rating:
1-2 High pass (1)
$1,999 $4,797 $— $(4)$(4)$52 $167,296 $— $174,136 
3-4 Pass48,132 103,437 37,818 7,789 29,738 5,494 1,161,606 5,725 1,399,739 
5 Special mention21,645 42,499 2,202 — — — 46,765 5,014 118,125 
6-8 Classified— (1,710)4,000 — — 3,690 528 — 6,508 
Total$71,776 $149,023 $44,020 $7,785 $29,734 $9,236 $1,376,195 $10,739 $1,698,508 
Current YTD period:
Gross charge-offs$— $— $6,533 $— $(8)$150 $144 $— $6,819 
Gross recoveries— — (478)(176)(154)(3)(450)— (1,261)
Net $— $— $6,055 $(176)$(162)$147 $(306)$— $5,558 
____________________
(1)    Amounts with negative balances are loans with zero principal balances and deferred loan origination fees.
Revolving
Converted
Amortized Cost BasisTerm Loans by Origination YearRevolvingto Term
December 31, 202020202019201820172016PriorLoansLoansTotal
(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass$1,057,405 $380 $4 $366 $69 $1,350 $74,206 $80 $1,133,860 
3-4 Pass88,875 95,110 99,434 77,557 23,305 89,865 657,088 7,533 1,138,767 
5 Special mention— 40 2,145 564 484 10,440 335 922 14,930 
6-8 Classified2 564 80 230 755 3,813 75,046 7,067 87,557 
Total$1,146,282 $96,094 $101,663 $78,717 $24,613 $105,468 $806,675 $15,602 $2,375,114 
Current YTD period:
Gross charge-offs$— $— $— $506 $239 $33,521 $27,332 $1,871 $63,469 
Gross recoveries— (18)(8)(34)(226)(3,155)(100)(19)(3,560)
Net $— $(18)$(8)$472 $13 $30,366 $27,232 $1,852 $59,909 
Consumer
Internal risk rating:
1-2 High pass$15 $— $8 $14 $— $— $509 $— $546 
3-4 Pass40,585 110,993 62,833 39,036 41,623 12,831 8,536 78 316,515 
5 Special mention45 137 1,628 261 422 239 — — 2,732 
6-8 Classified— 35 — 36 56 306 2 27 462 
Total$40,645 $111,165 $64,469 $39,347 $42,101 $13,376 $9,047 $105 $320,255 
Current YTD period:
Gross charge-offs$— $97 $86 $177 $363 $44 $22 $9 $798 
Gross recoveries— — (1)(10)(16)(174)— — (201)
Net $— $97 $85 $167 $347 $(130)$22 $9 $597 
Total Loans and Leases
Internal risk rating:
1-2 High pass$1,234,380 $262,764 $145,321 $115,821 $153,135 $140,090 $517,104 $72,097 $2,640,712 
3-4 Pass1,789,708 2,699,583 3,134,344 1,874,377 811,511 1,248,286 3,771,354 126,955 15,456,118 
5 Special mention37,378 185,189 230,012 93,222 25,147 68,528 71,218 10,591 721,285 
6-8 Classified506 144 14,431 8,135 79,268 71,254 84,493 7,031 265,262 
Total$3,061,972 $3,147,680 $3,524,108 $2,091,555 $1,069,061 $1,528,158 $4,444,169 $216,674 $19,083,377 
Current YTD period:
Gross charge-offs$— $97 $6,773 $4,013 $594 $52,277 $27,498 $2,337 $93,589 
Gross recoveries(52)(18)(487)(229)(396)(4,380)(787)(19)(6,368)
Net $(52)$79 $6,286 $3,784 $198 $47,897 $26,711 $2,318 $87,221 
TDRs are a result of rate reductions, term extensions, fee concessions, transfers to foreclosed assets, discounted loan payoffs, and debt forgiveness, or a combination thereof. The Company has granted various commercial and consumer loan modifications to provide borrowers relief from the economic impacts of COVID-19. In accordance with the CARES Act, the Company elected to not apply TDR classification to COVID-19 related loan modifications that met all of the requisite criteria as stipulated in the CARES Act. The following table presents our troubled debt restructurings of loans held for investment by loan portfolio segment and class for the years indicated:
Troubled Debt Restructurings
 Troubled Debt Restructurings
That Subsequently Defaulted(1)
Pre-ModificationPost-Modification
NumberOutstandingOutstandingNumber
of RecordedRecordedof Recorded
LoansInvestmentInvestmentLoans
Investment(1)
 (Dollars In thousands)
Year Ended December 31, 2020
Real estate mortgage:
Commercial12 $17,201 $4,222 1 $412 
Income producing and other residential9 1,816 1,816 — — 
Commercial:
Asset-based 8 17,008 1,741 — — 
Venture capital2 2,047 2,047 — — 
Other commercial37 41,906 27,403 1 92 
Consumer 3 212 212 — — 
Total71 $80,190 $37,441 2 $504 
Year Ended December 31, 2019
Real estate mortgage:
Commercial3 $121 $— — $— 
Income producing and other residential9 1,591 1,591 1 254 
Commercial:
Asset-based 5 3,082 3,082 — — 
Venture capital14 19,017 19,155 — — 
Other commercial20 3,835 3,835 4 154 
Total51 $27,646 $27,663 5 $408 
Year Ended December 31, 2018
Real estate mortgage:
Commercial10 $17,181 $2,604 — $— 
Income producing and other residential10 3,262 2,203 — — 
Commercial:
Asset-based (2)
4 28,947 33,947 — — 
Venture capital14 37,416 36,919 — — 
Other commercial19 14,399 14,027 — — 
Consumer 3 673 673 — — 
Total60 $101,878 $90,373 — $— 
_________________________
(1)     The population of defaulted TDRs for the period indicated includes only those loans restructured during the preceding 12-month period. For example, for the year ended December 31, 2020, the population of defaulted TDRs includes only those loans restructured after December 31, 2019. The table excludes defaulted TDRs in those classes for which the recorded investment was zero at the end of the period.
(2)     One commercial asset-based loan with a pre-modification balance of $27.3 million and a post-modification balance of $32.3 million was previously restructured in December 2017.
At December 31, 2020 and 2019, we had unfunded commitments related to TDRs of $0.9 million and $1.2 million.
Leases Receivable
We provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for allowance for loan and lease losses. See Note 9. Leases for information regarding operating leases where we are the lessor.
The following table provides the components of leases receivable income for the period indicated:
Year Ended December 31,
20202019
(In thousands)
Component of leases receivable income:
Interest income on net investments in leases$8,049 $11,061 
The following table presents the components of leases receivable as of the date indicated:
December 31, 2020December 31, 2019
(In thousands)
Net investment in direct financing leases:
Lease payments receivable$158,740 $147,729 
Unguaranteed residual assets19,303 20,806 
Deferred costs and other996 655 
Aggregate net investment in leases$179,039 $169,190 
The following table presents maturities of leases receivable as of the date indicated:
December 31, 2020
(In thousands)
Year Ending December 31,
2021$74,542 
202238,644 
202325,887 
202420,266 
20258,335 
Thereafter4,913 
Total undiscounted cash flows172,587 
Less: Unearned income(13,847)
Present value of lease payments$158,740 
Allowance for Loan and Lease 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 years indicated:
Year Ended December 31, 2020
Real Estate
Real EstateConstruction
Mortgageand LandCommercialConsumerTotal
(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of year $44,575 $30,544 $61,528 $2,138 $138,785 
Cumulative effect of change in accounting
principle - CECL5,308 (8,592)6,860 41 3,617 
Balance, January 1, 202049,883 21,952 68,388 2,179 142,402 
Charge-offs(10,686)— (82,105)(798)(93,589)
Recoveries617 21 5,529 201 6,368 
Net (charge-offs) recoveries(10,069)21 (76,576)(597)(87,221)
Provision 98,528 56,383 134,591 3,498 293,000 
Balance, end of year$138,342 $78,356 $126,403 $5,080 $348,181 
Ending Allowance by
Evaluation Methodology:
Individually evaluated $237 $— $3,422 $— $3,659 
Collectively evaluated $138,105 $78,356 $122,981 $5,080 $344,522 
Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated $50,139 $1,766 $81,171 $— $133,076 
Collectively evaluated 7,849,797 3,358,515 7,421,734 320,255 18,950,301 
Ending balance$7,899,936 $3,360,281 $7,502,905 $320,255 $19,083,377 
Year Ended December 31, 2019
Real Estate
Real EstateConstruction
Mortgageand LandCommercialConsumerTotal
(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of year $46,021 $28,209 $56,360 $1,882 $132,472 
Charge-offs(997)— (30,426)(839)(32,262)
Recoveries983 — 14,397 195 15,575 
Net charge-offs(14)— (16,029)(644)(16,687)
Provision (negative provision)(1,432)2,335 21,197 900 23,000 
Balance, end of year$44,575 $30,544 $61,528 $2,138 $138,785 
Ending Allowance by
Evaluation Methodology:
Individually evaluated $231 $— $5,966 $— $6,197 
Collectively evaluated $44,344 $30,544 $55,562 $2,138 $132,588 
Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated $28,038 $1,834 $69,674 $— $99,546 
Collectively evaluated 7,944,709 2,735,968 7,625,822 440,827 18,747,326 
Ending balance$7,972,747 $2,737,802 $7,695,496 $440,827 $18,846,872 
The allowance for loan and lease losses increased by $209.4 million in 2020 due primarily to a provision for loan and lease losses of $293.0 million. The higher provision for loan and lease losses in 2020 was primarily a result of the impact of the current economic forecast used in our ACL estimation, which reflected a significant deterioration in key macro-economic forecast variables such as unemployment and Real GDP as a result of the COVID-19 pandemic, significant loan downgrades into special mention, and higher provisions on individually evaluated loans.
We actively participated in the Paycheck Protection Program ("PPP"), under the provisions of the CARES Act during the second quarter of 2020. As of December 31, 2020, PPP loans had an outstanding balance of approximately $1.1 billion. The loans have two or three year terms, are fully guaranteed by the SBA, and do not carry an allowance.

A loan is considered collateral-dependent, and is individually evaluated for reserve purposes, when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The following table summarizes collateral-dependent loans held for investment by collateral type as of the following date:
December 31, 2020
RealBusiness
PropertyAssetsTotal
(In thousands)
Real estate mortgage$43,656 $— $43,656 
Real estate construction and land1,766 — 1,766 
Commercial— 31,100 31,100 
     Total$45,422 $31,100 $76,522 
Allowance for Credit Losses
The allowance for credit losses is the combination of the allowance for loan and lease losses and the reserve for unfunded loan commitments. The reserve for unfunded loan commitments is included within "Accrued interest payable and other liabilities" on the consolidated balance sheets.
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 years indicated:
Year Ended December 31, 2020
Allowance for Reserve forTotal
Loan and Unfunded LoanAllowance for
Lease LossesCommitmentsCredit Losses
(In thousands)
Balance, beginning of year $138,785 $35,861 $174,646 
Cumulative effect of change in accounting
principle - CECL3,617 3,710 7,327 
Balance, January 1, 2020142,402 39,571 181,973 
Charge-offs(93,589)— (93,589)
Recoveries6,368 — 6,368 
Net charge-offs(87,221)— (87,221)
Provision 293,000 46,000 339,000 
Balance, end of year$348,181 $85,571 $433,752 

Year Ended December 31, 2019
Allowance for Reserve forTotal
Loan and Unfunded LoanAllowance for
Lease LossesCommitmentsCredit Losses
(In thousands)
Balance, beginning of year$132,472 $36,861 $169,333 
Charge-offs(32,262)— (32,262)
Recoveries15,575 — 15,575 
Net charge-offs(16,687)— (16,687)
Provision (negative provision)23,000 (1,000)22,000 
Balance, end of year $138,785 $35,861 $174,646