Loans and Leases

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Loans and Leases

LOANS AND LEASES

Our loans are carried at the principal amount outstanding, net of deferred fees and costs, and in the case of acquired and purchased loans, net of purchase discounts and premiums. Deferred fees and costs and purchase discounts and premiums on acquired loans are recognized as an adjustment to interest income over the contractual life of the loans primarily using the effective interest method or taken into income when the related loans are paid off or included in the carrying amount of loans that are sold.

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:

	March 31,		December 31,
	2022		2021
	(In thousands)
Real estate mortgage	$	12,052,868	$	11,189,278
Real estate construction and land	3,748,539		3,491,340
Commercial	8,133,779		7,888,068
Consumer	504,563		457,622
Total gross loans and leases held for investment	24,439,749		23,026,308
Deferred fees, net	(87,677)		(84,760)
Total loans and leases held for investment, net of deferred fees	24,352,072		22,941,548
Allowance for loan and lease losses	(197,398)		(200,564)
Total loans and leases held for investment, net (1)	$	24,154,674	$	22,740,984

____________________

(1)    Excludes accrued interest receivable of $82.7 million and $80.3 million at March 31, 2022 and December 31, 2021, respectively, which is recorded in "Other assets" on the condensed 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:

	March 31, 2022
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	3,777	$	2,323	$	6,100	$	3,663,641	$	3,669,741
Residential	36,703		8,547		45,250		8,324,300		8,369,550
Total real estate mortgage	40,480		10,870		51,350		11,987,941		12,039,291
Real estate construction and land:
Commercial	—		—		—		802,022		802,022
Residential	21,413		5,818		27,231		2,864,236		2,891,467
Total real estate construction and land	21,413		5,818		27,231		3,666,258		3,693,489
Commercial:
Asset-based	—		449		449		4,738,771		4,739,220
Venture capital	—		—		—		2,077,339		2,077,339
Other commercial	167		549		716		1,297,420		1,298,136
Total commercial	167		998		1,165		8,113,530		8,114,695
Consumer	995		369		1,364		503,233		504,597
Total	$	63,055	$	18,055	$	81,110	$	24,270,962	$	24,352,072

	December 31, 2021
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	5,307	$	2,236	$	7,543	$	3,754,756	$	3,762,299
Residential	40,505		9,666		50,171		7,366,250		7,416,421
Total real estate mortgage	45,812		11,902		57,714		11,121,006		11,178,720
Real estate construction and land:
Commercial	—		—		—		832,591		832,591
Residential	7,271		2,223		9,494		2,595,042		2,604,536
Total real estate construction and land	7,271		2,223		9,494		3,427,633		3,437,127
Commercial:
Asset-based	—		464		464		4,075,013		4,075,477
Venture capital	—		—		—		2,320,593		2,320,593
Other commercial	955		3,601		4,556		1,467,425		1,471,981
Total commercial	955		4,065		5,020		7,863,031		7,868,051
Consumer	1,004		276		1,280		456,370		457,650
Total	$	55,042	$	18,466	$	73,508	$	22,868,040	$	22,941,548

It is our policy to discontinue accruing interest when principal or interest payments are past due 90 days or more (unless the loan is both well secured and in the process of collection) or when, in the opinion of management, there is a reasonable doubt as to the collectability of a loan or lease in the normal course of business. Interest income on nonaccrual loans is recognized only to the extent cash is received and the principal balance of the loan is deemed collectable.

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:  

	March 31, 2022						December 31, 2021
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	32,071	$	3,637,670	$	3,669,741	$	27,540	$	3,734,759	$	3,762,299
Residential	17,463		8,352,087		8,369,550		12,292		7,404,129		7,416,421
Total real estate mortgage	49,534		11,989,757		12,039,291		39,832		11,138,888		11,178,720
Real estate construction and land:
Commercial	—		802,022		802,022		—		832,591		832,591
Residential	6,215		2,885,252		2,891,467		4,715		2,599,821		2,604,536
Total real estate construction and land	6,215		3,687,274		3,693,489		4,715		3,432,412		3,437,127
Commercial:
Asset-based	1,323		4,737,897		4,739,220		1,464		4,074,013		4,075,477
Venture capital	3,659		2,073,680		2,077,339		2,799		2,317,794		2,320,593
Other commercial	5,420		1,292,716		1,298,136		11,950		1,460,031		1,471,981
Total commercial	10,402		8,104,293		8,114,695		16,213		7,851,838		7,868,051
Consumer	387		504,210		504,597		414		457,236		457,650
Total	$	66,538	$	24,285,534	$	24,352,072	$	61,174	$	22,880,374	$	22,941,548

At March 31, 2022, nonaccrual loans and leases included $18.1 million of loans and leases 90 or more days past due, $7.4 million of loans and leases 30 to 89 days past due, and $41.1 million of loans and leases current with respect to contractual payments that were placed on nonaccrual status based on management’s judgment regarding their collectability. At December 31, 2021, nonaccrual loans and leases included $18.5 million of loans and leases 90 or more days past due, $6.3 million of loans and leases 30 to 89 days past due, and $36.4 million of current loans and leases that were placed on nonaccrual status based on management’s judgment regarding their collectability.

As of March 31, 2022, our three largest loan relationships on nonaccrual status had an aggregate carrying value of $21.6 million and represented 32% of total nonaccrual loans and leases.

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.

	March 31, 2022
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	35,463	$	168,240	$	3,466,038	$	3,669,741
Residential	22,844		13,450		8,333,256		8,369,550
Total real estate mortgage	58,307		181,690		11,799,294		12,039,291
Real estate construction and land:
Commercial	—		68,864		733,158		802,022
Residential	6,215		15,780		2,869,472		2,891,467
Total real estate construction and land	6,215		84,644		3,602,630		3,693,489
Commercial:
Asset-based	4,449		60,367		4,674,404		4,739,220
Venture capital	3,722		37,083		2,036,534		2,077,339
Other commercial	8,911		10,914		1,278,311		1,298,136
Total commercial	17,082		108,364		7,989,249		8,114,695
Consumer	464		2,617		501,516		504,597
Total	$	82,068	$	377,315	$	23,892,689	$	24,352,072

	December 31, 2021
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	62,206	$	191,809	$	3,508,284	$	3,762,299
Residential	17,700		19,848		7,378,873		7,416,421
Total real estate mortgage	79,906		211,657		10,887,157		11,178,720
Real estate construction and land:
Commercial	—		67,727		764,864		832,591
Residential	4,715		1,720		2,598,101		2,604,536
Total real estate construction and land	4,715		69,447		3,362,965		3,437,127
Commercial:
Asset-based	4,591		78,305		3,992,581		4,075,477
Venture capital	4,794		14,833		2,300,966		2,320,593
Other commercial	21,659		15,528		1,434,794		1,471,981
Total commercial	31,044		108,666		7,728,341		7,868,051
Consumer	439		1,841		455,370		457,650
Total	$	116,104	$	391,611	$	22,433,833	$	22,941,548

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				Three Months
			Ended				Ended
	March 31,		March 31,		March 31,		March 31,
	2022		2022		2021		2021
	Nonaccrual		Interest		Nonaccrual		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	68	$	—	$	76	$	—
Residential	4,003		—		1,883		—
Real estate construction and land:
Commercial	—		—		—		—
Residential	600		—		116		—
Commercial:
Asset based	874		—		1,880		—
Venture capital	3,659		—		2,432		—
Other commercial	1,274		—		1,655		—
Consumer	387		—		556		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	32,003	$	17	$	46,360	$	287
Residential	13,460		—		588		—
Real estate construction and land:
Commercial	—		—		302		—
Residential	5,615		—		300		—
Commercial:
Asset based	449		—		500		—
Venture capital	—		—		—		—
Other commercial	4,146		354		11,004		1,830
Consumer	—		—		—		—
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	49,534	$	17	$	48,907	$	287
Real estate construction and land	6,215		—		718		—
Commercial	10,402		354		17,471		1,830
Consumer	387		—		556		—
Total	$	66,538	$	371	$	67,652	$	2,117

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
March 31, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	—	$	3,047	$	9,084	$	33,387	$	5,171	$	36,008	$	27,646	$	—	$	114,343
3-4 Pass	81,116		497,356		544,479		307,947		500,197		1,332,409		77,592		10,599		3,351,695
5 Special mention	—		—		4,783		73,552		50,681		39,224		—		—		168,240
6-8 Classified	—		—		482		2,158		14,404		18,419		—		—		35,463
Total	$	81,116	$	500,403	$	558,828	$	417,044	$	570,453	$	1,426,060	$	105,238	$	10,599	$	3,669,741
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	168	$	—	$	—	$	168
Real Estate Mortgage:
Residential
Internal risk rating:
1-2 High pass	$	—	$	94,641	$	23,097	$	52,848	$	50,593	$	45,650	$	1,000	$	—	$	267,829
3-4 Pass	1,346,363		4,241,531		559,766		559,016		531,570		686,935		140,148		98		8,065,427
5 Special mention	—		—		315		13,007		—		128		—		—		13,450
6-8 Classified	—		9,751		6,695		—		2,791		3,370		—		237		22,844
Total	$	1,346,363	$	4,345,923	$	589,873	$	624,871	$	584,954	$	736,083	$	141,148	$	335	$	8,369,550
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	22,136		105,608		93,720		341,314		155,658		14,722		—		—		733,158
5 Special mention	—		—		—		—		—		68,864		—		—		68,864
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	22,136	$	105,608	$	93,720	$	341,314	$	155,658	$	83,586	$	—	$	—	$	802,022
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
March 31, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Construction
and Land: Residential
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	182,292		872,932		789,164		807,854		169,889		15,040		21,516		10,785		2,869,472
5 Special mention	14,796		—		984		—		—		—		—		—		15,780
6-8 Classified	(356)		799		4,925		588		—		259		—		—		6,215
Total	$	196,732	$	873,731	$	795,073	$	808,442	$	169,889	$	15,299	$	21,516	$	10,785	$	2,891,467
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	68,608	$	151,162	$	57,290	$	187,578	$	127,761	$	248,433	$	781,457	$	25,004	$	1,647,293
3-4 Pass	255,030		243,085		69,827		57,963		41,262		39,438		2,320,506		—		3,027,111
5 Special mention	—		—		—		33,826		11,118		3,857		11,566		—		60,367
6-8 Classified	—		—		—		—		—		(451)		4,026		874		4,449
Total	$	323,638	$	394,247	$	127,117	$	279,367	$	180,141	$	291,277	$	3,117,555	$	25,878	$	4,739,220
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(17)	$	—	$	1,999	$	—	$	—	$	6	$	137,784	$	—	$	139,772
3-4 Pass	14,765		165,342		44,015		41,113		5,745		5,155		1,617,921		2,706		1,896,762
5 Special mention	—		26,956		2,445		4,538		—		1,481		1,663		—		37,083
6-8 Classified	—		492		—		—		1,500		—		63		1,667		3,722
Total	$	14,748	$	192,790	$	48,459	$	45,651	$	7,245	$	6,642	$	1,757,431	$	4,373	$	2,077,339
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

____________________

(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
March 31, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	—	$	62,070	$	9,051	$	240	$	4	$	246	$	20,646	$	—	$	92,257
3-4 Pass	23,414		301,454		71,590		49,401		55,452		117,879		558,276		8,588		1,186,054
5 Special mention	—		—		—		—		1,564		9,204		47		99		10,914
6-8 Classified	—		2		1		376		(3)		3,369		3,994		1,172		8,911
Total	$	23,414	$	363,526	$	80,642	$	50,017	$	57,017	$	130,698	$	582,963	$	9,859	$	1,298,136
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	1,010	$	1,775	$	48	$	2,833
Consumer
Internal risk rating:
1-2 High pass	$	—	$	35	$	10	$	—	$	4	$	1	$	626	$	—	$	676
3-4 Pass	86,309		243,928		21,440		65,561		31,735		47,998		3,869		—		500,840
5 Special mention	145		1,496		51		519		—		406		—		—		2,617
6-8 Classified	—		170		—		199		—		76		1		18		464
Total	$	86,454	$	245,629	$	21,501	$	66,279	$	31,739	$	48,481	$	4,496	$	18	$	504,597
Current YTD period:
Gross charge-offs	$	—	$	—	$	22	$	120	$	—	$	91	$	—	$	—	$	233
Total Loans and Leases
Internal risk rating:
1-2 High pass	$	68,591	$	310,955	$	100,531	$	274,053	$	183,533	$	330,344	$	969,159	$	25,004	$	2,262,170
3-4 Pass	2,011,425		6,671,236		2,194,001		2,230,169		1,491,508		2,259,576		4,739,828		32,776		21,630,519
5 Special mention	14,941		28,452		8,578		125,442		63,363		123,164		13,276		99		377,315
6-8 Classified	(356)		11,214		12,103		3,321		18,692		25,042		8,084		3,968		82,068
Total	$	2,094,601	$	7,021,857	$	2,315,213	$	2,632,985	$	1,757,096	$	2,738,126	$	5,730,347	$	61,847	$	24,352,072
Current YTD period:
Gross charge-offs	$	—	$	—	$	22	$	120	$	—	$	1,269	$	1,775	$	48	$	3,234

______________________

(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, 2021	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	561	$	9,148	$	32,304	$	8,289	$	6,248	$	33,493	$	3	$	—	$	90,046
3-4 Pass	499,626		531,989		321,728		578,436		489,727		932,950		51,805		11,977		3,418,238
5 Special mention	—		4,811		63,381		76,372		6,533		40,712		—		—		191,809
6-8 Classified	—		488		17,037		5,340		6,278		33,063		—		—		62,206
Total	$	500,187	$	546,436	$	434,450	$	668,437	$	508,786	$	1,040,218	$	51,808	$	11,977	$	3,762,299
Current YTD period:
Gross charge-offs	$	—	$	—	$	189	$	168	$	344	$	264	$	—	$	—	$	965
Gross recoveries	—		—		—		—		(8)		(6,073)		—		—		(6,081)
Net	$	—	$	—	$	189	$	168	$	336	$	(5,809)	$	—	$	—	$	(5,116)
Real Estate Mortgage:
Residential
Internal risk rating:
1-2 High pass	$	95,016	$	29,339	$	57,874	$	47,688	$	11,776	$	16,703	$	28,115	$	—	$	286,511
3-4 Pass	4,405,055		623,207		573,718		616,515		547,531		234,525		91,655		156		7,092,362
5 Special mention	2,871		3,810		13,007		—		—		—		160		—		19,848
6-8 Classified	5,161		5,217		—		3,323		304		3,424		—		271		17,700
Total	$	4,508,103	$	661,573	$	644,599	$	667,526	$	559,611	$	254,652	$	119,930	$	427	$	7,416,421
Current YTD period:
Gross charge-offs	$	28	$	80	$	—	$	—	$	—	$	55	$	—	$	—	$	163
Gross recoveries	(28)		—		—		—		—		(357)		—		(301)		(686)
Net	$	—	$	80	$	—	$	—	$	—	$	(302)	$	—	$	(301)	$	(523)
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	96,108		96,448		386,832		152,444		720		14,122		18,190		—		764,864
5 Special mention	—		—		—		—		67,727		—		—		—		67,727
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	96,108	$	96,448	$	386,832	$	152,444	$	68,447	$	14,122	$	18,190	$	—	$	832,591
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
December 31, 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	849,188		672,864		851,127		163,950		17,526		3,970		28,804		10,672		2,598,101
5 Special mention	276		1,185		—		—		259		—		—		—		1,720
6-8 Classified	849		3,278		588		—		—		—		—		—		4,715
Total	$	850,313	$	677,327	$	851,715	$	163,950	$	17,785	$	3,970	$	28,804	$	10,672	$	2,604,536
Current YTD period:
Gross charge-offs	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	7
Gross recoveries	—		—		—		—		—		—		—		—		—
Net	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	7
Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	138,836	$	72,725	$	178,291	$	123,947	$	71,940	$	188,411	$	706,656	$	50,495	$	1,531,301
3-4 Pass	242,209		71,930		59,748		45,375		8,350		34,833		1,992,677		6,158		2,461,280
5 Special mention	—		—		48,796		13,138		—		—		12,393		3,978		78,305
6-8 Classified	—		—		—		—		—		464		4,027		100		4,591
Total	$	381,045	$	144,655	$	286,835	$	182,460	$	80,290	$	223,708	$	2,715,753	$	60,731	$	4,075,477
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	232	$	232
Gross recoveries	—		—		—		—		—		(691)		(28)		—		(719)
Net	$	—	$	—	$	—	$	—	$	—	$	(691)	$	(28)	$	232	$	(487)
Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	—	$	1,999	$	—	$	—	$	(4)	$	14	$	228,820	$	—	$	230,829
3-4 Pass	229,567		58,283		46,007		7,241		1,614		4,166		1,715,057		8,202		2,070,137
5 Special mention	8,980		2,778		499		—		—		2,593		(17)		—		14,833
6-8 Classified	500		—		—		2,000		—		—		(6)		2,300		4,794
Total	$	239,047	$	63,060	$	46,506	$	9,241	$	1,610	$	6,773	$	1,943,854	$	10,502	$	2,320,593
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	620	$	—	$	—	$	620
Gross recoveries	—		—		(127)		(37)		(158)		(82)		—		—		(404)
Net	$	—	$	—	$	(127)	$	(37)	$	(158)	$	538	$	—	$	—	$	216

____________________

(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, 2021	2021		2020		2019		2018		2017		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	134,825	$	22,556	$	261	$	4	$	246	$	(50)	$	18,206	$	693	$	176,741
3-4 Pass	286,281		73,328		77,487		67,591		46,939		89,408		607,197		9,822		1,258,053
5 Special mention	—		291		1		2,088		115		11,911		1,061		61		15,528
6-8 Classified	53		1		395		(3)		223		4,212		15,731		1,047		21,659
Total	$	421,159	$	96,176	$	78,144	$	69,680	$	47,523	$	105,481	$	642,195	$	11,623	$	1,471,981
Current YTD period:
Gross charge-offs	$	1,992	$	—	$	122	$	47	$	139	$	797	$	985	$	2,364	$	6,446
Gross recoveries	—		—		(42)		—		(268)		(4,076)		(57)		(145)		(4,588)
Net	$	1,992	$	—	$	80	$	47	$	(129)	$	(3,279)	$	928	$	2,219	$	1,858
Consumer
Internal risk rating:
1-2 High pass	$	36	$	11	$	—	$	5	$	4	$	—	$	646	$	—	$	702
3-4 Pass	261,678		24,195		73,860		35,623		21,707		31,916		5,689		—		454,668
5 Special mention	797		363		496		—		50		135		—		—		1,841
6-8 Classified	—		22		123		111		21		143		—		19		439
Total	$	262,511	$	24,591	$	74,479	$	35,739	$	21,782	$	32,194	$	6,335	$	19	$	457,650
Current YTD period:
Gross charge-offs	$	—	$	185	$	654	$	156	$	270	$	188	$	—	$	54	$	1,507
Gross recoveries	—		—		—		(27)		(13)		(79)		(1)		—		(120)
Net	$	—	$	185	$	654	$	129	$	257	$	109	$	(1)	$	54	$	1,387
Total Loans and Leases
Internal risk rating:
1-2 High pass	$	369,274	$	135,778	$	268,730	$	179,933	$	90,210	$	238,571	$	982,446	$	51,188	$	2,316,130
3-4 Pass	6,869,712		2,152,244		2,390,507		1,667,175		1,134,114		1,345,890		4,511,074		46,987		20,117,703
5 Special mention	12,924		13,238		126,180		91,598		74,684		55,351		13,597		4,039		391,611
6-8 Classified	6,563		9,006		18,143		10,771		6,826		41,306		19,752		3,737		116,104
Total	$	7,258,473	$	2,310,266	$	2,803,560	$	1,949,477	$	1,305,834	$	1,681,118	$	5,526,869	$	105,951	$	22,941,548
Current YTD period:
Gross charge-offs	$	2,027	$	265	$	965	$	1,146	$	753	$	1,924	$	985	$	2,650	$	10,715
Gross recoveries	(28)		—		(169)		(64)		(447)		(11,358)		(86)		(446)		(12,598)
Net	$	1,999	$	265	$	796	$	1,082	$	306	$	(9,434)	$	899	$	2,204	$	(1,883)

____________________

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

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 granted various commercial and consumer loan modifications to provide borrowers relief from the economic impacts of COVID-19. In accordance with the Coronavirus Aid, Relief, and Economic Security ("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 during its applicable period beginning on March 1, 2020 and ending on January 1, 2022. 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 March 31,
	2022					2021
		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	$	647	$	—
Residential	1	304		—		2	266		266
Commercial:
Asset-based	—	—		—		1	503		503
Venture capital	—	—		—		3	4,502		2,529
Other commercial	13	1,074		1,074		12	32,250		14,276
Consumer	—	—		—		1	20		20
Total	14	$	1,378	$	1,074	20	$	38,188	$	17,594

During the three months ended March 31, 2022, there were two other commercial loans for $78,000 restructured in the preceding 12-month period that subsequently defaulted. During the three months ended March 31, 2021, there was one residential real estate mortgage loan for $163,000 and one other commercial loan for $87,000 restructured in the preceding 12-month period that subsequently defaulted.

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 8. Leases for information regarding operating leases where we are the lessor.

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

	Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	2,388	$	2,080

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

	March 31, 2022		December 31, 2021
	(In thousands)
Net investment in direct financing leases:
Lease payments receivable	$	189,992	$	190,025
Unguaranteed residual assets	22,146		21,487
Deferred costs and other	1,352		1,373
Aggregate net investment in leases	$	213,490	$	212,885

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

	March 31, 2022
	(In thousands)
Period ending December 31,
2022	$	43,028
2023	49,649
2024	45,301
2025	29,371
2026	18,268
Thereafter	26,760
Total undiscounted cash flows	212,377
Less: Unearned income	(22,385)
Present value of lease payments	$	189,992

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 periods indicated:

	Three Months Ended March 31, 2022
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	98,053	$	45,079	$	48,718	$	8,714	$	200,564
Charge-offs	(168)		—		(2,833)		(233)		(3,234)
Recoveries	163		149		1,735		21		2,068
Net (charge-offs) recoveries	(5)		149		(1,098)		(212)		(1,166)
Provision	(11,333)		(1,067)		9,436		964		(2,000)
Balance, end of period	$	86,715	$	44,161	$	57,056	$	9,466	$	197,398
Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	156	$	—	$	1,023	$	—	$	1,179
Collectively evaluated	$	86,559	$	44,161	$	56,033	$	9,466	$	196,219
Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	44,392	$	13,403	$	17,813	$	—	$	75,608
Collectively evaluated	11,994,899		3,680,086		8,096,882		504,597		24,276,464
Ending balance	$	12,039,291	$	3,693,489	$	8,114,695	$	504,597	$	24,352,072

	Three Months Ended March 31, 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	(368)		(700)		(2,574)		(346)		(3,988)
Recoveries	545		—		697		10		1,252
Net (charge-offs) recoveries	177		(700)		(1,877)		(336)		(2,736)
Provision	2,603		(10,881)		(45,810)		1,088		(53,000)
Balance, end of period	$	141,122	$	66,775	$	78,716	$	5,832	$	292,445
Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	220	$	—	$	1,581	$	—	$	1,801
Collectively evaluated	$	140,902	$	66,775	$	77,135	$	5,832	$	290,644
Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	52,823	$	2,047	$	35,285	$	—	$	90,155
Collectively evaluated	7,934,390		3,563,776		7,050,555		340,352		18,889,073
Ending balance	$	7,987,213	$	3,565,823	$	7,085,840	$	340,352	$	18,979,228

The allowance for loan and lease losses decreased by $3.2 million in the first quarter of 2022 to $197.4 million due primarily to a provision for loan and lease losses benefit of $2.0 million driven by improvement in loan portfolio credit quality metrics combined with changes in our loan portfolio composition, offset partially by increased provisions for unfunded commitments and loan growth.

We actively participated in both rounds of the Paycheck Protection Program ("PPP"), under the provisions of the CARES Act during 2020 and 2021, originating $1.65 billion of such loans. As of March 31, 2022, PPP loans totaled $70.4 million, net of deferred fees. The loans have two or five 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 dates:

	March 31, 2022						December 31, 2021
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	44,662	$	—	$	44,662	$	30,817	$	—	$	30,817
Real estate construction and land	7,578		—		7,578		10,421		—		10,421
Commercial	—		1,986		1,986		—		7,586		7,586
Total	$	52,240	$	1,986	$	54,226	$	41,238	$	7,586	$	48,824

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 condensed 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 periods indicated:

	Three Months Ended
	March 31, 2022
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	200,564	$	73,071	$	273,635
Charge-offs	(3,234)		—		(3,234)
Recoveries	2,068		—		2,068
Net charge-offs	(1,166)		—		(1,166)
Provision	(2,000)		2,000		—
Balance, end of period	$	197,398	$	75,071	$	272,469

	Three Months Ended
	March 31, 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	(3,988)		—		(3,988)
Recoveries	1,252		—		1,252
Net charge-offs	(2,736)		—		(2,736)
Provision	(53,000)		5,000		(48,000)
Balance, end of period	$	292,445	$	90,571	$	383,016