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Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2022

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,
	2022		2021
	(In thousands)
Real estate mortgage	$	14,656,888	$	11,189,278
Real estate construction and land (1)	4,366,162		3,491,340
Commercial	8,288,359		7,888,068
Consumer	464,553		457,622
Total gross loans and leases held for investment	27,775,962		23,026,308
Deferred fees, net	(115,921)		(84,760)
Total loans and leases held for investment, net of deferred fees	27,660,041		22,941,548
Allowance for loan and lease losses	(189,327)		(200,564)
Total loans and leases held for investment, net (2)	$	27,470,714	$	22,740,984

____________________

(1) Includes land and acquisition and development loans of $151.2 million and $151.8 million at September 30, 2022 and December 31, 2021.

(2) Excludes accrued interest receivable of $106.1 million and $80.3 million at September 30, 2022 and December 31, 2021, 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, 2022
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	381	$	14,084	$	14,465	$	3,756,241	$	3,770,706
Residential	23,653		12,267		35,920		10,824,123		10,860,043
Total real estate mortgage	24,034		26,351		50,385		14,580,364		14,630,749
Real estate construction and land:
Commercial	—		—		—		843,086		843,086
Residential	3,051		7,020		10,071		3,440,359		3,450,430
Total real estate construction and land	3,051		7,020		10,071		4,283,445		4,293,516
Commercial:
Asset-based	—		437		437		5,154,217		5,154,654
Venture capital	—		—		—		2,001,086		2,001,086
Other commercial	452		3,963		4,415		1,111,027		1,115,442
Total commercial	452		4,400		4,852		8,266,330		8,271,182
Consumer	1,996		350		2,346		462,248		464,594
Total	$	29,533	$	38,121	$	67,654	$	27,592,387	$	27,660,041


	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

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, 2022						December 31, 2021
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	42,772	$	3,727,934	$	3,770,706	$	27,540	$	3,734,759	$	3,762,299
Residential	25,950		10,834,093		10,860,043		12,292		7,404,129		7,416,421
Total real estate mortgage	68,722		14,562,027		14,630,749		39,832		11,138,888		11,178,720
Real estate construction and land:
Commercial	—		843,086		843,086		—		832,591		832,591
Residential	7,101		3,443,329		3,450,430		4,715		2,599,821		2,604,536
Total real estate construction and land	7,101		4,286,415		4,293,516		4,715		3,432,412		3,437,127
Commercial:
Asset-based	2,127		5,152,527		5,154,654		1,464		4,074,013		4,075,477
Venture capital	3,809		1,997,277		2,001,086		2,799		2,317,794		2,320,593
Other commercial	7,616		1,107,826		1,115,442		11,950		1,460,031		1,471,981
Total commercial	13,552		8,257,630		8,271,182		16,213		7,851,838		7,868,051
Consumer	367		464,227		464,594		414		457,236		457,650
Total	$	89,742	$	27,570,299	$	27,660,041	$	61,174	$	22,880,374	$	22,941,548

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, 2022
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	44,014	$	215,057	$	3,511,635	$	3,770,706
Residential	31,892		28,660		10,799,491		10,860,043
Total real estate mortgage	75,906		243,717		14,311,126		14,630,749
Real estate construction and land:
Commercial	—		—		843,086		843,086
Residential	7,543		68,586		3,374,301		3,450,430
Total real estate construction and land	7,543		68,586		4,217,387		4,293,516
Commercial:
Asset-based	2,127		79,991		5,072,536		5,154,654
Venture capital	3,803		56,974		1,940,309		2,001,086
Other commercial	6,864		8,235		1,100,343		1,115,442
Total commercial	12,794		145,200		8,113,188		8,271,182
Consumer	442		6,491		457,661		464,594
Total	$	96,685	$	463,994	$	27,099,362	$	27,660,041


	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

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,
	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	$	15,546	$	—	$	—	$	72	$	—	$	—
Residential	4,412		—		—		3,323		—		—
Real estate construction and land:
Commercial	—		—		—		—		—		—
Residential	1,103		—		—		1,987		—		—
Commercial:
Asset based	587		—		—		1,126		—		—
Venture capital	3,809		—		—		2,347		—		—
Other commercial	933		—		—		1,170		—		—
Consumer	367		—		—		495		—		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	27,227	$	16	$	113	$	25,543	$	90	$	511
Residential	21,537		—		—		4,224		—		—
Real estate construction and land:
Commercial	—		—		—		—		—		—
Residential	5,998		—		—		17,931		—		—
Commercial:
Asset based	1,539		—		—		479		—		—
Venture capital	—		—		—		—		—		—
Other commercial	6,684		7		368		5,810		3		5
Consumer	—		—		—		—		—		—
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	68,722	$	16	$	113	$	33,162	$	90	$	511
Real estate construction and land	7,101		—		—		19,918		—		—
Commercial	13,552		7		368		10,932		3		5
Consumer	367		—		—		495		—		—
Total	$	89,742	$	23	$	481	$	64,507	$	93	$	516

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, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	2,801	$	2,549	$	7,263	$	26,769	$	6,587	$	40,878	$	1,290	$	—	$	88,137
3-4 Pass	439,549		502,035		487,182		261,639		465,339		1,178,198		79,452		10,104		3,423,498
5 Special mention	—		—		3,259		73,740		50,770		87,288		—		—		215,057
6-8 Classified	—		—		471		2,021		27,371		14,151		—		—		44,014
Total	$	442,350	$	504,584	$	498,175	$	364,169	$	550,067	$	1,320,515	$	80,742	$	10,104	$	3,770,706
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	62	$	2,258	$	229	$	—	$	—	$	2,549

Real Estate Mortgage:
Residential
Internal risk rating:
1-2 High pass	$	—	$	83,666	$	21,749	$	69,618	$	49,468	$	43,981	$	1,000	$	—	$	269,482
3-4 Pass	3,738,534		4,312,948		603,627		692,921		481,322		610,842		89,709		106		10,530,009
5 Special mention	5,471		9,152		1,098		12,939		—		—		—		—		28,660
6-8 Classified	3,951		15,442		5,627		419		2,762		3,474		—		217		31,892
Total	$	3,747,956	$	4,421,208	$	632,101	$	775,897	$	533,552	$	658,297	$	90,709	$	323	$	10,860,043
Current YTD period:
Gross charge-offs	$	228	$	398	$	135	$	—	$	—	$	—	$	—	$	—	$	761

Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	96,495		156,338		82,003		355,819		144,407		8,034		(10)		—		843,086
5 Special mention	—		—		—		—		—		—		—		—		—
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	96,495	$	156,338	$	82,003	$	355,819	$	144,407	$	8,034	$	(10)	$	—	$	843,086
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
September 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	736,072		1,177,709		870,592		403,791		119,138		308		66,691		—		3,374,301
5 Special mention	16,483		5,076		2,068		44,959		—		—		—		—		68,586
6-8 Classified	(771)		8,092		222		—		—		—		—		—		7,543
Total	$	751,784	$	1,190,877	$	872,882	$	448,750	$	119,138	$	308	$	66,691	$	—	$	3,450,430
Current YTD period:
Gross charge-offs	$	—	$	241	$	772	$	—	$	—	$	—	$	—	$	—	$	1,013

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	204,759	$	186,276	$	53,885	$	195,491	$	127,280	$	213,054	$	787,447	$	—	$	1,768,192
3-4 Pass	489,877		272,795		57,635		25,262		32,247		45,743		2,288,106		92,679		3,304,344
5 Special mention	—		—		—		60,618		8,200		3,620		7,553		—		79,991
6-8 Classified	—		—		—		—		—		437		1,103		587		2,127
Total	$	694,636	$	459,071	$	111,520	$	281,371	$	167,727	$	262,854	$	3,084,209	$	93,266	$	5,154,654
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	750	$	—	$	750

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	6,450	$	—	$	2,000	$	—	$	134	$	7	$	199,456	$	503	$	208,550
3-4 Pass	68,823		157,404		18,285		2,210		3,277		886		1,456,269		24,605		1,731,759
5 Special mention	1,995		26,698		—		23,548		—		—		4,733		—		56,974
6-8 Classified	—		473		1,000		—		1,220		—		(6)		1,116		3,803
Total	$	77,268	$	184,575	$	21,285	$	25,758	$	4,631	$	893	$	1,660,452	$	26,224	$	2,001,086
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
September 30, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	3,495	$	12,010	$	1,995	$	187	$	6	$	112	$	21,102	$	—	$	38,907
3-4 Pass	58,573		293,987		63,757		45,138		49,346		90,893		456,738		3,004		1,061,436
5 Special mention	—		813		179		—		2,506		4,627		16		94		8,235
6-8 Classified	—		1,150		—		532		(3)		3,376		900		909		6,864
Total	$	62,068	$	307,960	$	65,931	$	45,857	$	51,855	$	99,008	$	478,756	$	4,007	$	1,115,442
Current YTD period:
Gross charge-offs	$	—	$	209	$	—	$	—	$	—	$	2,096	$	1,817	$	394	$	4,516

Consumer
Internal risk rating:
1-2 High pass	$	—	$	32	$	8	$	—	$	2	$	—	$	718	$	—	$	760
3-4 Pass	65,245		234,722		21,905		50,988		33,432		40,644		9,965		—		456,901
5 Special mention	931		3,124		307		1,555		147		332		95		—		6,491
6-8 Classified	144		—		128		—		—		152		1		17		442
Total	$	66,320	$	237,878	$	22,348	$	52,543	$	33,581	$	41,128	$	10,779	$	17	$	464,594
Current YTD period:
Gross charge-offs	$	6	$	227	$	22	$	601	$	—	$	240	$	—	$	—	$	1,096

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	217,505	$	284,533	$	86,900	$	292,065	$	183,477	$	298,032	$	1,011,013	$	503	$	2,374,028
3-4 Pass	5,693,168		7,107,938		2,204,986		1,837,768		1,328,508		1,975,548		4,446,920		130,498		24,725,334
5 Special mention	24,880		44,863		6,911		217,359		61,623		95,867		12,397		94		463,994
6-8 Classified	3,324		25,157		7,448		2,972		31,350		21,590		1,998		2,846		96,685
Total	$	5,938,877	$	7,462,491	$	2,306,245	$	2,350,164	$	1,604,958	$	2,391,037	$	5,472,328	$	133,941	$	27,660,041
Current YTD period:
Gross charge-offs	$	234	$	1,075	$	929	$	663	$	2,258	$	2,565	$	2,567	$	394	$	10,685

______________________

(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.

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,
	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:

Residential	10	$	3,596	$	1,050	3	$	297	$	297
Real estate construction and land:

Residential	2	422		—		—	—		—
Commercial:
Asset-based	—	—		—		1	1,484		1,484
Venture capital	2	1,649		1,649		2	2,382		2,382
Other commercial	2	102		102		2	85		85

Total	16	$	5,769	$	2,801	8	$	4,248	$	4,248


	Nine Months Ended September 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	—	$	—	$	—	2	$	647	$	—
Residential	11	3,903		1,053		4	518		518
Real estate construction and land:

Residential	2	422		—		1	208		208
Commercial:
Asset-based	—	—		—		2	1,987		1,987
Venture capital	5	3,330		3,330		4	4,502		2,529
Other commercial	21	1,233		1,233		37	48,694		30,719
Consumer	1	18		18		1	20		20
Total	40	$	8,906	$	5,634	51	$	56,576	$	35,981

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,
	2022		2021		2022		2021
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	2,815	$	2,287	$	7,694	$	6,645

Assets and Liabilities, Lessor

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


	September 30, 2022		December 31, 2021
	(In thousands)
Net Investment in Direct Financing Leases:
Lease payments receivable	$	228,192	$	190,025
Unguaranteed residual assets	24,862		21,487
Deferred costs and other	1,802		1,373
Aggregate net investment in leases	$	254,856	$	212,885

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

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


	September 30, 2022
	(In thousands)
Period ending December 31,
2022	$	15,098
2023	66,313
2024	61,901
2025	43,908
2026	32,184
Thereafter	36,641
Total undiscounted cash flows	256,045
Less: Unearned income	(27,853)
Present value of lease payments	$	228,192

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, 2022
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of period	$	85,287	$	41,778	$	54,031	$	7,609	$	188,705
Charge-offs	(1,604)		(1,006)		(1,522)		(520)		(4,652)
Recoveries	231		29		1,996		18		2,274
Net (charge-offs) recoveries	(1,373)		(977)		474		(502)		(2,378)
Provision	(5,018)		9,427		(3,284)		1,875		3,000
Balance, end of period	$	78,896	$	50,228	$	51,221	$	8,982	$	189,327


	Nine Months Ended September 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	(3,310)		(1,013)		(5,266)		(1,096)		(10,685)
Recoveries	1,699		178		6,521		50		8,448
Net (charge-offs) recoveries	(1,611)		(835)		1,255		(1,046)		(2,237)
Provision	(17,546)		5,984		1,248		1,314		(9,000)
Balance, end of period	$	78,896	$	50,228	$	51,221	$	8,982	$	189,327

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	3,108	$	—	$	749	$	—	$	3,857
Collectively evaluated	$	75,788	$	50,228	$	50,472	$	8,982	$	185,470

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	58,187	$	20,724	$	12,973	$	—	$	91,884
Collectively evaluated	14,572,562		4,272,792		8,258,209		464,594		27,568,157
Ending balance	$	14,630,749	$	4,293,516	$	8,271,182	$	464,594	$	27,660,041


	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 recoveries (charge-offs)	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 recoveries (charge-offs)	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

Collateral-dependent Finance Receivable

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


	September 30, 2022						December 31, 2021
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	61,167	$	—	$	61,167	$	30,817	$	—	$	30,817
Real estate construction and land	8,397		—		8,397		10,421		—		10,421
Commercial	—		1,539		1,539		—		7,586		7,586
Total	$	69,564	$	1,539	$	71,103	$	41,238	$	7,586	$	48,824

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, 2022
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of period	$	188,705	$	95,071	$	283,776
Charge-offs	(4,652)		—		(4,652)
Recoveries	2,274		—		2,274
Net charge-offs	(2,378)		—		(2,378)
Provision	3,000		—		3,000
Balance, end of period	$	189,327	$	95,071	$	284,398


	Nine Months Ended
	September 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	(10,685)		—		(10,685)
Recoveries	8,448		—		8,448
Net charge-offs	(2,237)		—		(2,237)
Provision	(9,000)		22,000		13,000
Balance, end of period	$	189,327	$	95,071	$	284,398


	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