Loans and Leases

6 Months Ended

Jun. 30, 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:

	June 30,		December 31,
	2022		2021
	(In thousands)
Real estate mortgage	$	13,570,353	$	11,189,278
Real estate construction and land (1)	4,059,965		3,491,340
Commercial	8,494,614		7,888,068
Consumer	483,609		457,622
Total gross loans and leases held for investment	26,608,541		23,026,308
Deferred fees, net	(107,404)		(84,760)
Total loans and leases held for investment, net of deferred fees	26,501,137		22,941,548
Allowance for loan and lease losses	(188,705)		(200,564)
Total loans and leases held for investment, net (2)	$	26,312,432	$	22,740,984

____________________

(1)    Includes land and acquisition and development loans of $116.3 million and $151.8 million at June 30, 2022 and December 31, 2021.

(2)    Excludes accrued interest receivable of $88.9 million and $80.3 million at June 30, 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:

	June 30, 2022
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	13,345	$	1,859	$	15,204	$	3,655,311	$	3,670,515
Residential	14,425		22,447		36,872		9,842,259		9,879,131
Total real estate mortgage	27,770		24,306		52,076		13,497,570		13,549,646
Real estate construction and land:
Commercial	—		—		—		837,423		837,423
Residential	26,288		12,477		38,765		3,114,851		3,153,616
Total real estate construction and land	26,288		12,477		38,765		3,952,274		3,991,039
Commercial:
Asset-based	—		441		441		5,067,671		5,068,112
Venture capital	—		—		—		2,179,190		2,179,190
Other commercial	10,812		638		11,450		1,218,054		1,229,504
Total commercial	10,812		1,079		11,891		8,464,915		8,476,806
Consumer	1,711		205		1,916		481,730		483,646
Total	$	66,581	$	38,067	$	104,648	$	26,396,489	$	26,501,137

	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:  

	June 30, 2022						December 31, 2021
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	28,529	$	3,641,986	$	3,670,515	$	27,540	$	3,734,759	$	3,762,299
Residential	27,524		9,851,607		9,879,131		12,292		7,404,129		7,416,421
Total real estate mortgage	56,053		13,493,593		13,549,646		39,832		11,138,888		11,178,720
Real estate construction and land:
Commercial	—		837,423		837,423		—		832,591		832,591
Residential	13,287		3,140,329		3,153,616		4,715		2,599,821		2,604,536
Total real estate construction and land	13,287		3,977,752		3,991,039		4,715		3,432,412		3,437,127
Commercial:
Asset-based	1,189		5,066,923		5,068,112		1,464		4,074,013		4,075,477
Venture capital	3,120		2,176,070		2,179,190		2,799		2,317,794		2,320,593
Other commercial	4,655		1,224,849		1,229,504		11,950		1,460,031		1,471,981
Total commercial	8,964		8,467,842		8,476,806		16,213		7,851,838		7,868,051
Consumer	223		483,423		483,646		414		457,236		457,650
Total	$	78,527	$	26,422,610	$	26,501,137	$	61,174	$	22,880,374	$	22,941,548

At June 30, 2022, nonaccrual loans and leases included $38.1 million of loans and leases 90 or more days past due, $15.8 million of loans and leases 30 to 89 days past due, and $24.7 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 June 30, 2022, our three largest loan relationships on nonaccrual status had an aggregate carrying value of $19.5 million and represented 25% 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.

	June 30, 2022
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	46,203	$	157,476	$	3,466,836	$	3,670,515
Residential	32,443		19,248		9,827,440		9,879,131
Total real estate mortgage	78,646		176,724		13,294,276		13,549,646
Real estate construction and land:
Commercial	—		155,745		681,678		837,423
Residential	13,287		39,357		3,100,972		3,153,616
Total real estate construction and land	13,287		195,102		3,782,650		3,991,039
Commercial:
Asset-based	1,189		54,131		5,012,792		5,068,112
Venture capital	3,116		37,831		2,138,243		2,179,190
Other commercial	7,727		11,081		1,210,696		1,229,504
Total commercial	12,032		103,043		8,361,731		8,476,806
Consumer	299		5,392		477,955		483,646
Total	$	104,264	$	480,261	$	25,916,612	$	26,501,137

	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		Six Months				Three Months		Six Months
			Ended		Ended				Ended		Ended
	June 30,		June 30,		June 30,		June 30,		June 30,		June 30,
	2022		2022		2022		2021		2021		2021
	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	$	66	$	—	$	—	$	74	$	—	$	—
Residential	6,941		—		—		2,806		—		—
Real estate construction and land:
Commercial	—		—		—		—		—		—
Residential	1,646		—		—		403		—		—
Commercial:
Asset based	748		—		—		1,484		—		—
Venture capital	3,120		—		—		2,717		—		—
Other commercial	1,262		—		—		1,472		—		—
Consumer	223		—		—		360		—		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	28,463	$	14	$	98	$	31,991	$	140	$	430
Residential	20,583		—		—		3,327		—		—
Real estate construction and land:
Commercial	—		—		—		284		—		—
Residential	11,641		—		—		1,531		—		—
Commercial:
Asset based	441		—		—		489		—		—
Venture capital	—		—		—		—		—		—
Other commercial	3,393		7		361		9,865		1,814		3,644
Consumer	—		—		—		—		—		—
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	56,053	$	14	$	98	$	38,198	$	140	$	430
Real estate construction and land	13,287		—		—		2,218		—		—
Commercial	8,964		7		361		16,027		1,814		3,644
Consumer	223		—		—		360		—		—
Total	$	78,527	$	21	$	459	$	56,803	$	1,954	$	4,074

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
June 30, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	—	$	3,156	$	7,553	$	7,041	$	6,031	$	40,194	$	27,677	$	—	$	91,652
3-4 Pass	282,678		497,641		522,878		283,379		493,351		1,203,978		80,868		10,411		3,375,184
5 Special mention	—		—		3,278		73,578		50,678		29,942		—		—		157,476
6-8 Classified	—		—		476		2,078		29,357		14,292		—		—		46,203
Total	$	282,678	$	500,797	$	534,185	$	366,076	$	579,417	$	1,288,406	$	108,545	$	10,411	$	3,670,515
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	1,488	$	183	$	—	$	—	$	1,671
Real Estate Mortgage:
Residential
Internal risk rating:
1-2 High pass	$	—	$	99,724	$	22,983	$	57,363	$	55,435	$	44,419	$	1,000	$	—	$	280,924
3-4 Pass	3,118,273		4,045,948		568,720		583,160		452,990		646,013		131,295		117		9,546,516
5 Special mention	1,828		4,279		151		12,990		—		—		—		—		19,248
6-8 Classified	2,724		20,325		3,209		—		3,061		2,897		—		227		32,443
Total	$	3,122,825	$	4,170,276	$	595,063	$	653,513	$	511,486	$	693,329	$	132,295	$	344	$	9,879,131
Current YTD period:
Gross charge-offs	$	—	$	34	$	1	$	—	$	—	$	—	$	—	$	—	$	35
Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	33,665		132,772		80,308		368,548		57,553		8,843		(11)		—		681,678
5 Special mention	—		—		—		—		86,528		69,217		—		—		155,745
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	33,665	$	132,772	$	80,308	$	368,548	$	144,081	$	78,060	$	(11)	$	—	$	837,423
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
June 30, 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	505,330		962,146		845,779		621,951		165,271		820		(325)		—		3,100,972
5 Special mention	16,070		3,421		19,866		—		—		—		—		—		39,357
6-8 Classified	(365)		7,105		5,700		588		—		259		—		—		13,287
Total	$	521,035	$	972,672	$	871,345	$	622,539	$	165,271	$	1,079	$	(325)	$	—	$	3,153,616
Current YTD period:
Gross charge-offs	$	—	$	7	$	—	$	—	$	—	$	—	$	—	$	—	$	7
Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	180,149	$	166,488	$	53,533	$	189,543	$	117,975	$	231,190	$	868,141	$	17,039	$	1,824,058
3-4 Pass	383,309		248,015		59,956		56,192		36,185		49,379		2,248,953		106,745		3,188,734
5 Special mention	—		—		—		32,720		9,070		—		8,604		3,737		54,131
6-8 Classified	—		—		—		—		—		441		—		748		1,189
Total	$	563,458	$	414,503	$	113,489	$	278,455	$	163,230	$	281,010	$	3,125,698	$	128,269	$	5,068,112
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	16,009	$	—	$	1,999	$	—	$	—	$	8	$	137,261	$	—	$	155,277
3-4 Pass	46,412		164,767		18,740		21,192		4,510		4,523		1,697,801		25,021		1,982,966
5 Special mention	—		29,958		2,111		4,025		—		—		1,737		—		37,831
6-8 Classified	—		475		—		—		1,284		—		(4)		1,361		3,116
Total	$	62,421	$	195,200	$	22,850	$	25,217	$	5,794	$	4,531	$	1,836,795	$	26,382	$	2,179,190
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
June 30, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	494	$	24,925	$	8,799	$	214	$	9	$	217	$	21,052	$	—	$	55,710
3-4 Pass	43,910		292,506		65,676		47,213		52,217		93,869		547,544		12,051		1,154,986
5 Special mention	—		830		202		503		1,508		7,863		77		98		11,081
6-8 Classified	—		1,150		—		357		(3)		2,841		2,147		1,235		7,727
Total	$	44,404	$	319,411	$	74,677	$	48,287	$	53,731	$	104,790	$	570,820	$	13,384	$	1,229,504
Current YTD period:
Gross charge-offs	$	—	$	159	$	—	$	—	$	—	$	1,701	$	1,818	$	66	$	3,744
Consumer
Internal risk rating:
1-2 High pass	$	—	$	34	$	9	$	—	$	3	$	—	$	614	$	—	$	660
3-4 Pass	83,997		230,843		19,477		59,951		29,422		43,835		9,770		—		477,295
5 Special mention	890		2,401		183		1,433		87		305		93		—		5,392
6-8 Classified	—		181		—		—		24		75		1		18		299
Total	$	84,887	$	233,459	$	19,669	$	61,384	$	29,536	$	44,215	$	10,478	$	18	$	483,646
Current YTD period:
Gross charge-offs	$	—	$	—	$	22	$	338	$	—	$	216	$	—	$	—	$	576
Total Loans and Leases
Internal risk rating:
1-2 High pass	$	196,652	$	294,327	$	94,876	$	254,161	$	179,453	$	316,028	$	1,055,745	$	17,039	$	2,408,281
3-4 Pass	4,497,574		6,574,638		2,181,534		2,041,586		1,291,499		2,051,260		4,715,895		154,345		23,508,331
5 Special mention	18,788		40,889		25,791		125,249		147,871		107,327		10,511		3,835		480,261
6-8 Classified	2,359		29,236		9,385		3,023		33,723		20,805		2,144		3,589		104,264
Total	$	4,715,373	$	6,939,090	$	2,311,586	$	2,424,019	$	1,652,546	$	2,495,420	$	5,784,295	$	178,808	$	26,501,137
Current YTD period:
Gross charge-offs	$	—	$	200	$	23	$	338	$	1,488	$	2,100	$	1,818	$	66	$	6,033

______________________

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

															Revolving
															Converted
Amortized Cost Basis	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 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,
	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	$	—	$	—
Residential	1	208		208		—	—		—
Real estate construction and land:
Residential	—	—		—		1	208		208
Commercial:
Venture capital	4	3,330		3,330		1	2,408		2,408
Other commercial	6	57		57		25	16,358		16,358
Consumer	1	18		18		—	—		—
Total	12	$	3,613	$	3,613	28	$	18,974	$	18,974

	Six Months Ended June 30,
	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	$	—	$	—	2	$	647	$	—
Residential	2	512		207		2	266		266
Real estate construction and land:
Residential	—	—		—		1	208		208
Commercial:
Asset-based	—	—		—		1	503		503
Venture capital	5	3,330		3,330		3	4,502		2,529
Other commercial	19	1,131		1,131		35	48,608		30,634
Consumer	1	18		18		1	20		20
Total	28	$	4,991	$	4,686	45	$	54,754	$	34,160

During the three months and six months ended June 30, 2022, there was one residential real estate mortgage loan for $104,000 and two other commercial loans for $110,000 restructured in the preceding 12-month period that subsequently defaulted. During the three months and six months ended June 30, 2021, there were two other commercial loan for $134,000 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				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	2,491	$	2,278	$	4,879	$	4,358

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

	June 30, 2022		December 31, 2021
	(In thousands)
Net investment in direct financing leases:
Lease payments receivable	$	213,628	$	190,025
Unguaranteed residual assets	23,976		21,487
Deferred costs and other	1,822		1,373
Aggregate net investment in leases	$	239,426	$	212,885

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

	June 30, 2022
	(In thousands)
Period ending December 31,
2022	$	29,235
2023	59,343
2024	54,917
2025	37,721
2026	25,076
Thereafter	33,619
Total undiscounted cash flows	239,911
Less: Unearned income	(26,283)
Present value of lease payments	$	213,628

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 June 30, 2022
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	86,715	$	44,161	$	57,056	$	9,466	$	197,398
Charge-offs	(1,538)		(7)		(911)		(343)		(2,799)
Recoveries	1,305		—		2,790		11		4,106
Net (charge-offs) recoveries	(233)		(7)		1,879		(332)		1,307
Provision	(1,195)		(2,376)		(4,904)		(1,525)		(10,000)
Balance, end of period	$	85,287	$	41,778	$	54,031	$	7,609	$	188,705
	Six Months Ended June 30, 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	(1,706)		(7)		(3,744)		(576)		(6,033)
Recoveries	1,468		149		4,525		32		6,174
Net (charge-offs) recoveries	(238)		142		781		(544)		141
Provision	(12,528)		(3,443)		4,532		(561)		(12,000)
Balance, end of period	$	85,287	$	41,778	$	54,031	$	7,609	$	188,705
Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	140	$	—	$	812	$	—	$	952
Collectively evaluated	$	85,147	$	41,778	$	53,219	$	7,609	$	187,753
Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	40,178	$	27,121	$	11,419	$	—	$	78,718
Collectively evaluated	13,509,468		3,963,918		8,465,387		483,646		26,422,419
Ending balance	$	13,549,646	$	3,991,039	$	8,476,806	$	483,646	$	26,501,137

	Three Months Ended June 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	$	141,122	$	66,775	$	78,716	$	5,832	$	292,445
Charge-offs	(266)		(75)		(277)		(198)		(816)
Recoveries	4,882		—		1,029		60		5,971
Net (charge-offs) recoveries	4,616		(75)		752		(138)		5,155
Provision	(38,725)		(12,118)		(21,771)		614		(72,000)
Balance, end of period	$	107,013	$	54,582	$	57,697	$	6,308	$	225,600
	Six Months Ended June 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	(634)		(775)		(2,851)		(544)		(4,804)
Recoveries	5,427		—		1,726		70		7,223
Net (charge-offs) recoveries	4,793		(775)		(1,125)		(474)		2,419
Provision	(36,122)		(22,999)		(67,581)		1,702		(125,000)
Balance, end of period	$	107,013	$	54,582	$	57,697	$	6,308	$	225,600
Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	203	$	—	$	3,265	$	—	$	3,468
Collectively evaluated	$	106,810	$	54,582	$	54,432	$	6,308	$	222,132
Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	41,145	$	3,254	$	46,400	$	—	$	90,799
Collectively evaluated	8,371,875		3,502,330		7,175,844		365,409		19,415,458
Ending balance	$	8,413,020	$	3,505,584	$	7,222,244	$	365,409	$	19,506,257

The allowance for loan and lease losses decreased by $8.7 million in the second quarter of 2022 to $188.7 million due primarily to a provision for loan and lease losses benefit of $10.0 million driven by improvement in credit risks specific to the COVID-19 pandemic combined with changes in our loan portfolio composition, offset partially by an increased provision for loan growth and economic uncertainty.

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 June 30, 2022, PPP loans totaled $33.0 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:

	June 30, 2022						December 31, 2021
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	48,253	$	—	$	48,253	$	30,817	$	—	$	30,817
Real estate construction and land	13,621		—		13,621		10,421		—		10,421
Commercial	—		440		440		—		7,586		7,586
Total	$	61,874	$	440	$	62,314	$	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
	June 30, 2022
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	197,398	$	75,071	$	272,469
Charge-offs	(2,799)		—		(2,799)
Recoveries	4,106		—		4,106
Net recoveries	1,307		—		1,307
Provision	(10,000)		20,000		10,000
Balance, end of period	$	188,705	$	95,071	$	283,776
	Six Months Ended
	June 30, 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	(6,033)		—		(6,033)
Recoveries	6,174		—		6,174
Net recoveries	141		—		141
Provision	(12,000)		22,000		10,000
Balance, end of period	$	188,705	$	95,071	$	283,776

	Three Months Ended
	June 30, 2021
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	292,445	$	90,571	$	383,016
Charge-offs	(816)		—		(816)
Recoveries	5,971		—		5,971
Net recoveries	5,155		—		5,155
Provision	(72,000)		(16,000)		(88,000)
Balance, end of period	$	225,600	$	74,571	$	300,171
	Six Months Ended
	June 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	(4,804)		—		(4,804)
Recoveries	7,223		—		7,223
Net recoveries	2,419		—		2,419
Provision	(125,000)		(11,000)		(136,000)
Balance, end of period	$	225,600	$	74,571	$	300,171