XML 41 R30.htm IDEA: XBRL DOCUMENT

Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2021

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:


	September 30,		December 31,
	2021		2020
	(In thousands)
Real estate mortgage	$	9,590,037	$	7,905,193
Real estate construction and land	3,699,435		3,393,145
Commercial	6,892,846		7,534,801
Consumer	405,937		320,218
Total gross loans and leases held for investment	20,588,255		19,153,357
Deferred fees, net	(77,235)		(69,980)
Total loans and leases held for investment, net of deferred fees	20,511,020		19,083,377
Allowance for loan and lease losses	(203,733)		(348,181)
Total loans and leases held for investment, net (1)	$	20,307,287	$	18,735,196

____________________

(1) Excludes accrued interest receivable of $75.7 million and $79.7 million at September 30, 2021 and December 31, 2020, 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:


	September 30, 2021
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	899	$	2,954	$	3,853	$	3,690,744	$	3,694,597
Income producing and other residential	3,760		5,661		9,421		5,876,939		5,886,360
Total real estate mortgage	4,659		8,615		13,274		9,567,683		9,580,957
Real estate construction and land:
Commercial	—		—		—		992,003		992,003
Residential	13,017		19,587		32,604		2,627,266		2,659,870
Total real estate construction and land	13,017		19,587		32,604		3,619,269		3,651,873
Commercial:
Asset-based	—		479		479		3,661,290		3,661,769
Venture capital	1,670		—		1,670		1,631,191		1,632,861
Other commercial	561		1,654		2,215		1,575,377		1,577,592
Total commercial	2,231		2,133		4,364		6,867,858		6,872,222
Consumer	1,042		357		1,399		404,569		405,968
Total	$	20,949	$	30,692	$	51,641	$	20,459,379	$	20,511,020


	December 31, 2020
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	6,750	$	29,145	$	35,895	$	4,060,776	$	4,096,671
Income producing and other residential	600		373		973		3,802,292		3,803,265
Total real estate mortgage	7,350		29,518		36,868		7,863,068		7,899,936
Real estate construction and land:
Commercial	—		—		—		1,117,121		1,117,121
Residential	759		—		759		2,242,401		2,243,160
Total real estate construction and land	759		—		759		3,359,522		3,360,281
Commercial:
Asset-based	—		2,128		2,128		3,427,155		3,429,283
Venture capital	540		—		540		1,697,968		1,698,508
Other commercial	2,323		4,766		7,089		2,368,025		2,375,114
Total commercial	2,863		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

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:


	September 30, 2021						December 31, 2020
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	25,615	$	3,668,982	$	3,694,597	$	43,731	$	4,052,940	$	4,096,671
Income producing and other residential	7,547		5,878,813		5,886,360		1,826		3,801,439		3,803,265
Total real estate mortgage	33,162		9,547,795		9,580,957		45,557		7,854,379		7,899,936
Real estate construction and land:
Commercial	—		992,003		992,003		315		1,116,806		1,117,121
Residential	19,918		2,639,952		2,659,870		—		2,243,160		2,243,160
Total real estate construction and land	19,918		3,631,955		3,651,873		315		3,359,966		3,360,281
Commercial:
Asset-based	1,605		3,660,164		3,661,769		2,679		3,426,604		3,429,283
Venture capital	2,348		1,630,513		1,632,861		1,980		1,696,528		1,698,508
Other commercial	6,979		1,570,613		1,577,592		40,243		2,334,871		2,375,114
Total commercial	10,932		6,861,290		6,872,222		44,902		7,458,003		7,502,905
Consumer	495		405,473		405,968		389		319,866		320,255
Total	$	64,507	$	20,446,513	$	20,511,020	$	91,163	$	18,992,214	$	19,083,377

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.


	September 30, 2021
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	69,059	$	202,029	$	3,423,509	$	3,694,597
Income producing and other residential	13,603		73,831		5,798,926		5,886,360
Total real estate mortgage	82,662		275,860		9,222,435		9,580,957
Real estate construction and land:
Commercial	—		67,649		924,354		992,003
Residential	19,918		7,324		2,632,628		2,659,870
Total real estate construction and land	19,918		74,973		3,556,982		3,651,873
Commercial:
Asset-based	4,734		87,980		3,569,055		3,661,769
Venture capital	4,840		38,281		1,589,740		1,632,861
Other commercial	28,926		17,107		1,531,559		1,577,592
Total commercial	38,500		143,368		6,690,354		6,872,222
Consumer	524		2,165		403,279		405,968
Total	$	141,604	$	496,366	$	19,873,050	$	20,511,020


	December 31, 2020
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	91,543	$	262,462	$	3,742,666	$	4,096,671
Income producing and other residential	8,767		61,384		3,733,114		3,803,265
Total real estate mortgage	100,310		323,846		7,475,780		7,899,936
Real estate construction and land:
Commercial	42,558		107,592		966,971		1,117,121
Residential	—		759		2,242,401		2,243,160
Total real estate construction and land	42,558		108,351		3,209,372		3,360,281
Commercial:
Asset-based	27,867		153,301		3,248,115		3,429,283
Venture capital	6,508		118,125		1,573,875		1,698,508
Other commercial	87,557		14,930		2,272,627		2,375,114
Total commercial	121,932		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

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 periods indicated:


			Three Months		Nine Months				Three Months		Nine Months
			Ended		Ended				Ended		Ended
	September 30,		September 30,		September 30,		September 30,		September 30,		September 30,
	2021		2021		2021		2020		2020		2020
	Nonaccrual		Interest		Interest		Nonaccrual		Interest		Interest
	Recorded		Income		Income		Recorded		Income		Income
	Investment		Recognized		Recognized		Investment		Recognized		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	72	$	—	$	—	$	736	$	—	$	—
Income producing and other residential	3,323		—		—		1,163		—		—
Real estate construction and land:

Residential	1,987		—		—		—		—		—
Commercial:
Asset based	1,126		—		—		2,248		—		—
Venture capital	2,347		—		—		2,001		—		—
Other commercial	1,170		—		—		1,235		—		—
Consumer	495		—		—		404		—		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	25,543	$	90	$	511	$	44,384	$	155	$	285
Income producing and other residential	4,224		—		—		845		—		—
Real estate construction and land:
Commercial	—		—		—		324		—		—
Residential	17,931		—		—		—		—		—
Commercial:
Asset based	479		—		—		569		—		—

Other commercial	5,810		3		5		31,706		517		1,628

Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	33,162	$	90	$	511	$	47,128	$	155	$	285
Real estate construction and land	19,918		—		—		324		—		—
Commercial	10,932		3		5		37,759		517		1,628
Consumer	495		—		—		404		—		—
Total	$	64,507	$	93	$	516	$	85,615	$	672	$	1,913

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 dates indicated:


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
September 30, 2021	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	565	$	5,835	$	48,421	$	5,816	$	10,448	$	37,536	$	2	$	—	$	108,623
3-4 Pass	316,700		539,855		344,575		536,615		505,934		1,014,656		44,726		11,825		3,314,886
5 Special mention	—		4,839		67,336		79,223		7,985		42,646		—		—		202,029
6-8 Classified	—		494		17,116		5,767		12,473		33,209		—		—		69,059
Total	$	317,265	$	551,023	$	477,448	$	627,421	$	536,840	$	1,128,047	$	44,728	$	11,825	$	3,694,597
Current YTD period:
Gross charge-offs	$	—	$	—	$	190	$	168	$	53	$	168	$	—	$	—	$	579
Gross recoveries	—		—		—		—		—		(5,934)		—		—		(5,934)
Net	$	—	$	—	$	190	$	168	$	53	$	(5,766)	$	—	$	—	$	(5,355)

Real Estate Mortgage:
Income Producing and
Other Residential
Internal risk rating:
1-2 High pass	$	28,374	$	32,923	$	62,522	$	26,751	$	13,363	$	26,586	$	28,044	$	—	$	218,563
3-4 Pass	2,327,323		625,371		713,871		944,356		594,336		265,707		109,206		193		5,580,363
5 Special mention	384		13,803		17,214		42,270		—		—		160		—		73,831
6-8 Classified	334		4,022		—		3,045		101		5,793		—		308		13,603
Total	$	2,356,415	$	676,119	$	793,607	$	1,016,422	$	607,800	$	298,086	$	137,410	$	501	$	5,886,360
Current YTD period:
Gross charge-offs	$	28	$	1	$	—	$	—	$	—	$	55	$	—	$	—	$	84
Gross recoveries	—		—		—		—		—		(55)		(1)		—		(56)
Net	$	28	$	1	$	—	$	—	$	—	$	—	$	(1)	$	—	$	28

Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	43	$	—	$	—	$	—	$	—	$	—	$	43
3-4 Pass	29,494		100,207		367,405		396,084		725		14,220		16,176		—		924,311
5 Special mention	—		—		—		—		67,649		—		—		—		67,649
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	29,494	$	100,207	$	367,448	$	396,084	$	68,374	$	14,220	$	16,176	$	—	$	992,003
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	775	$	—	$	—	$	—	$	—	$	775
Gross recoveries	—		—		—		—		—		—		—		—		—
Net	$	—	$	—	$	—	$	775	$	—	$	—	$	—	$	—	$	775


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
September 30, 2021	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	841,092		532,400		973,649		195,691		51,769		5,471		25,435		7,121		2,632,628
5 Special mention	1,767		5,557		—		—		—		—		—		—		7,324
6-8 Classified	5,398		5,899		8,621		—		—		—		—		—		19,918
Total	$	848,257	$	543,856	$	982,270	$	195,691	$	51,769	$	5,471	$	25,435	$	7,121	$	2,659,870
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Gross recoveries	—		—		—		—		—		—		—		—		—
Net	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	103,920	$	76,652	$	172,748	$	120,030	$	67,234	$	183,114	$	577,818	$	54,890	$	1,356,406
3-4 Pass	83,672		86,281		62,353		48,794		16,584		38,221		1,866,135		10,609		2,212,649
5 Special mention	—		—		50,293		20,949		—		—		12,640		4,098		87,980
6-8 Classified	—		—		—		—		—		479		4,029		226		4,734
Total	$	187,592	$	162,933	$	285,394	$	189,773	$	83,818	$	221,814	$	2,460,622	$	69,823	$	3,661,769
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	232	$	232
Gross recoveries	—		—		—		—		—		(451)		(23)		—		(474)
Net	$	—	$	—	$	—	$	—	$	—	$	(451)	$	(23)	$	232	$	(242)

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	—	$	1,999	$	—	$	—	$	(3)	$	15	$	170,192	$	—	$	172,203
3-4 Pass	106,056		67,392		56,089		12,490		5,771		4,791		1,155,622		9,326		1,417,537
5 Special mention	10,992		3,111		20,506		—		—		3,704		(32)		—		38,281
6-8 Classified	—		—		—		2,500		—		—		(7)		2,347		4,840
Total	$	117,048	$	72,502	$	76,595	$	14,990	$	5,768	$	8,510	$	1,325,775	$	11,673	$	1,632,861
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	620	$	—	$	—	$	620
Gross recoveries	—		—		—		(13)		(93)		(27)		—		—		(133)
Net	$	—	$	—	$	—	$	(13)	$	(93)	$	593	$	—	$	—	$	487

____________________

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


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
September 30, 2021	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	227,874	$	44,485	$	285	$	5	$	278	$	51	$	41,464	$	694	$	315,136
3-4 Pass	270,186		73,562		80,334		78,067		49,397		90,990		564,920		8,967		1,216,423
5 Special mention	—		1,901		658		1,509		97		10,591		2,261		90		17,107
6-8 Classified	2,042		—		414		(2)		229		4,275		20,808		1,160		28,926
Total	$	500,102	$	119,948	$	81,691	$	79,579	$	50,001	$	105,907	$	629,453	$	10,911	$	1,577,592
Current YTD period:
Gross charge-offs	$	—	$	—	$	122	$	47	$	63	$	521	$	75	$	2,122	$	2,950
Gross recoveries	—		—		(27)		—		(44)		(1,423)		(57)		(111)		(1,662)
Net	$	—	$	—	$	95	$	47	$	19	$	(902)	$	18	$	2,011	$	1,288

Consumer
Internal risk rating:
1-2 High pass	$	—	$	11	$	—	$	6	$	6	$	—	$	663	$	—	$	686
3-4 Pass	181,973		31,750		74,081		44,997		23,654		37,991		8,137		10		402,593
5 Special mention	256		377		1,071		210		23		153		—		75		2,165
6-8 Classified	—		—		159		—		173		171		2		19		524
Total	$	182,229	$	32,138	$	75,311	$	45,213	$	23,856	$	38,315	$	8,802	$	104	$	405,968
Current YTD period:
Gross charge-offs	$	—	$	55	$	545	$	259	$	107	$	113	$	—	$	1	$	1,080
Gross recoveries	—		—		—		(27)		(10)		(75)		(1)		—		(113)
Net	$	—	$	55	$	545	$	232	$	97	$	38	$	(1)	$	1	$	967

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	360,733	$	161,905	$	284,019	$	152,608	$	91,326	$	247,302	$	818,183	$	55,584	$	2,171,660
3-4 Pass	4,156,496		2,056,818		2,672,357		2,257,094		1,248,170		1,472,047		3,790,357		48,051		17,701,390
5 Special mention	13,399		29,588		157,078		144,161		75,754		57,094		15,029		4,263		496,366
6-8 Classified	7,774		10,415		26,310		11,310		12,976		43,927		24,832		4,060		141,604
Total	$	4,538,402	$	2,258,726	$	3,139,764	$	2,565,173	$	1,428,226	$	1,820,370	$	4,648,401	$	111,958	$	20,511,020
Current YTD period:
Gross charge-offs	$	28	$	56	$	857	$	1,249	$	223	$	1,477	$	75	$	2,355	$	6,320
Gross recoveries	—		—		(27)		(40)		(147)		(7,965)		(82)		(111)		(8,372)
Net	$	28	$	56	$	830	$	1,209	$	76	$	(6,488)	$	(7)	$	2,244	$	(2,052)

______________________

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


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2020	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(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 Pass	554,143		413,785		574,497		725,503		405,367		893,008		62,586		13,978		3,642,867
5 Special mention	2,622		78,484		99,397		14,625		9,967		57,367		—		—		262,462
6-8 Classified	504		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 Pass	491,504		850,978		1,067,109		577,906		238,499		187,959		113,987		528		3,528,470
5 Special mention	12,307		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 Pass	66,114		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 Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 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	345,134		670,894		849,819		285,072		28,725		688		9,034		53,035		2,242,401
5 Special mention	759		—		—		—		—		—		—		—		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 Pass	155,221		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	$	1,999	$	4,797	$	—	$	(4)	$	(4)	$	52	$	167,296	$	—	$	174,136
3-4 Pass	48,132		103,437		37,818		7,789		29,738		5,494		1,161,606		5,725		1,399,739
5 Special mention	21,645		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


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2020	2020		2019		2018		2017		2016		Prior		Loans		Loans		Total
	(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 Pass	88,875		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 Classified	2		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 Pass	40,585		110,993		62,833		39,036		41,623		12,831		8,536		78		316,515
5 Special mention	45		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 Pass	1,789,708		2,699,583		3,134,344		1,874,377		811,511		1,248,286		3,771,354		126,955		15,456,118
5 Special mention	37,378		185,189		230,012		93,222		25,147		68,528		71,218		10,591		721,285
6-8 Classified	506		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

______________________

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

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 September 30,
	2021					2020
		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	—	$	—	$	—	1	$	12,594	$	—
Income producing and other residential	3	297		297		2	157		157



Commercial:
Asset-based	1	1,484		1,484		1	15,267		—
Venture capital	2	2,382		2,382		1	2,015		2,015
Other commercial	2	85		85		5	7,105		100

Total	8	$	4,248	$	4,248	10	$	37,138	$	2,272


	Nine Months Ended September 30,
	2021					2020
		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	2	$	647	$	—	9	$	16,339	$	3,745
Income producing and other residential	4	518		518		6	911		911
Real estate construction and land:

Residential	1	208		208		—	—		—
Commercial:
Asset-based	2	1,987		1,987		8	17,008		1,741
Venture capital	4	4,502		2,529		2	2,047		2,047
Other commercial	37	48,694		30,719		33	30,324		21,544
Consumer	1	20		20		3	212		212
Total	51	$	56,576	$	35,981	61	$	66,841	$	30,200

Lease Income of Direct Financing Leases

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	2,287	$	1,869	$	6,645	$	6,224

Assets and Liabilities, Lessor

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


	September 30, 2021		December 31, 2020
	(In thousands)
Net investment in direct financing leases:
Lease payments receivable	$	171,412	$	158,740
Unguaranteed residual assets	24,862		19,303
Deferred costs and other	1,257		996
Aggregate net investment in leases	$	197,531	$	179,039

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

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


	September 30, 2021
	(In thousands)
Period ending December 31,
2021	$	18,527
2022	52,542
2023	39,820
2024	35,214
2025	20,231
Thereafter	24,163
Total undiscounted cash flows	190,497
Less: Unearned income	(19,085)
Present value of lease payments	$	171,412

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 September 30, 2021
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	107,013	$	54,582	$	57,697	$	6,308	$	225,600
Charge-offs	(29)		—		(951)		(536)		(1,516)
Recoveries	563		—		543		43		1,149
Net (charge-offs) recoveries	534		—		(408)		(493)		(367)
Provision	(11,344)		(1,923)		(9,792)		1,559		(21,500)
Balance, end of period	$	96,203	$	52,659	$	47,497	$	7,374	$	203,733


	Nine Months Ended September 30, 2021
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	138,342	$	78,356	$	126,403	$	5,080	$	348,181



Charge-offs	(663)		(775)		(3,802)		(1,080)		(6,320)
Recoveries	5,990		—		2,269		113		8,372
Net (charge-offs) recoveries	5,327		(775)		(1,533)		(967)		2,052
Provision	(47,466)		(24,922)		(77,373)		3,261		(146,500)
Balance, end of period	$	96,203	$	52,659	$	47,497	$	7,374	$	203,733

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	189	$	—	$	2,721	$	—	$	2,910
Collectively evaluated	$	96,014	$	52,659	$	44,776	$	7,374	$	200,823

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	34,822	$	19,364	$	38,647	$	—	$	92,833
Collectively evaluated	9,546,135		3,632,509		6,833,575		405,968		20,418,187
Ending balance	$	9,580,957	$	3,651,873	$	6,872,222	$	405,968	$	20,511,020


	Three Months Ended September 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	$	130,724	$	70,113	$	97,947	$	2,266	$	301,050
Charge-offs	(1,551)		—		(35,666)		(67)		(37,284)
Recoveries	109		21		1,063		7		1,200
Net (charge-offs) recoveries	(1,442)		21		(34,603)		(60)		(36,084)
Provision	(7,588)		20,039		64,921		3,628		81,000
Balance, end of period	$	121,694	$	90,173	$	128,265	$	5,834	$	345,966


	Nine Months Ended September 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
Cumulative effect of change in accounting
principle - CECL	5,308		(8,592)		6,860		41		3,617
Balance, January 1, 2020	49,883		21,952		68,388		2,179		142,402
Charge-offs	(6,233)		—		(66,337)		(705)		(73,275)
Recoveries	360		21		4,410		48		4,839
Net (charge-offs) recoveries	(5,873)		21		(61,927)		(657)		(68,436)
Provision	77,684		68,200		121,804		4,312		272,000
Balance, end of period	$	121,694	$	90,173	$	128,265	$	5,834	$	345,966

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	340	$	—	$	2,584	$	—	$	2,924
Collectively evaluated	$	121,354	$	90,173	$	125,681	$	5,834	$	343,042

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	51,852	$	1,782	$	41,501	$	—	$	95,135
Collectively evaluated	7,825,193		3,421,965		7,321,673		362,234		18,931,065
Ending balance	$	7,877,045	$	3,423,747	$	7,363,174	$	362,234	$	19,026,200

Collateral-dependent Finance Receivable

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


	September 30, 2021						December 31, 2020
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	28,195	$	—	$	28,195	$	43,656	$	—	$	43,656
Real estate construction and land	19,364		—		19,364		1,766		—		1,766
Commercial	—		3,662		3,662		—		31,100		31,100
Total	$	47,559	$	3,662	$	51,221	$	45,422	$	31,100	$	76,522

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
	September 30, 2021
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	225,600	$	74,571	$	300,171
Charge-offs	(1,516)		—		(1,516)
Recoveries	1,149		—		1,149
Net charge-offs	(367)		—		(367)
Provision	(21,500)		1,500		(20,000)
Balance, end of period	$	203,733	$	76,071	$	279,804


	Nine Months Ended
	September 30, 2021
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	348,181	$	85,571	$	433,752
Charge-offs	(6,320)		—		(6,320)
Recoveries	8,372		—		8,372
Net recoveries	2,052		—		2,052
Provision	(146,500)		(9,500)		(156,000)
Balance, end of period	$	203,733	$	76,071	$	279,804


	Three Months Ended
	September 30, 2020
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	301,050	$	80,571	$	381,621
Charge-offs	(37,284)		—		(37,284)
Recoveries	1,200		—		1,200
Net charge-offs	(36,084)		—		(36,084)
Provision	81,000		16,000		97,000
Balance, end of period	$	345,966	$	96,571	$	442,537


	Nine Months Ended
	September 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
Cumulative effect of change in accounting
principle - CECL	3,617		3,710		7,327
Balance, January 1, 2020	142,402		39,571		181,973
Charge-offs	(73,275)		—		(73,275)
Recoveries	4,839		—		4,839
Net charge-offs	(68,436)		—		(68,436)
Provision	272,000		57,000		329,000
Balance, end of period	$	345,966	$	96,571	$	442,537