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Loans and Leases (Tables)

12 Months Ended

Dec. 31, 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:


	December 31,
	2022		2021
	(In thousands)
Real estate mortgage	$	15,272,527	$	11,189,278
Real estate construction and land (1)	4,711,677		3,491,340
Commercial	8,297,182		7,888,068
Consumer	444,630		457,622
Total gross loans and leases held for investment	28,726,016		23,026,308
Deferred fees, net	(116,887)		(84,760)
Total loans and leases held for investment, net of deferred fees	28,609,129		22,941,548
Allowance for loan and lease losses	(200,732)		(200,564)
Total loans and leases held for investment, net (2)	$	28,408,397	$	22,740,984

____________________

(1) Includes land and acquisition and development loans of $153.5 million and $151.8 million at December 31, 2022 and 2021.

(2) Excludes accrued interest receivable of $124.3 million and $80.3 million at December 31, 2022 and 2021, which is recorded in "Other assets" on the 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:


	December 31, 2022
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	1,721	$	29,269	$	30,990	$	3,815,841	$	3,846,831
Residential	74,918		30,963		105,881		11,290,900		11,396,781
Total real estate mortgage	76,639		60,232		136,871		15,106,741		15,243,612
Real estate construction and land:
Commercial	—		—		—		898,592		898,592
Residential	26,810		8,912		35,722		3,704,570		3,740,292
Total real estate construction and land	26,810		8,912		35,722		4,603,162		4,638,884
Commercial:
Asset-based	—		434		434		5,139,775		5,140,209
Venture capital	—		—		—		2,033,302		2,033,302
Other commercial	461		1,195		1,656		1,106,795		1,108,451
Total commercial	461		1,629		2,090		8,279,872		8,281,962
Consumer	1,935		149		2,084		442,587		444,671
Total	$	105,845	$	70,922	$	176,767	$	28,432,362	$	28,609,129


	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 Non Accrual And Performing

The following table presents our nonaccrual and performing loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated:


	December 31,
	2022						2021
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	42,509	$	3,804,322	$	3,846,831	$	27,540	$	3,734,759	$	3,762,299
Residential	45,272		11,351,509		11,396,781		12,292		7,404,129		7,416,421
Total real estate mortgage	87,781		15,155,831		15,243,612		39,832		11,138,888		11,178,720
Real estate construction and land:
Commercial	—		898,592		898,592		—		832,591		832,591
Residential	10,621		3,729,671		3,740,292		4,715		2,599,821		2,604,536
Total real estate construction and land	10,621		4,628,263		4,638,884		4,715		3,432,412		3,437,127
Commercial:
Asset-based	865		5,139,344		5,140,209		1,464		4,074,013		4,075,477
Venture capital	—		2,033,302		2,033,302		2,799		2,317,794		2,320,593
Other commercial	4,345		1,104,106		1,108,451		11,950		1,460,031		1,471,981
Total commercial	5,210		8,276,752		8,281,962		16,213		7,851,838		7,868,051
Consumer	166		444,505		444,671		414		457,236		457,650
Total	$	103,778	$	28,505,351	$	28,609,129	$	61,174	$	22,880,374	$	22,941,548

CV of Loans Held for Investment by Class by Classified and Nonclassiified

The following tables present the credit risk rating categories for loans and leases held for investment by loan portfolio segment and class as of the dates indicated. Classified loans and leases are those with a credit risk rating of either substandard or doubtful.


	December 31, 2022
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	43,737	$	106,493	$	3,696,601	$	3,846,831
Residential	53,207		82,688		11,260,886		11,396,781
Total real estate mortgage	96,944		189,181		14,957,487		15,243,612
Real estate construction and land:
Commercial	—		91,334		807,258		898,592
Residential	10,961		80,860		3,648,471		3,740,292
Total real estate construction and land	10,961		172,194		4,455,729		4,638,884
Commercial:
Asset-based	865		56,836		5,082,508		5,140,209
Venture capital	2,753		127,907		1,902,642		2,033,302
Other commercial	6,473		13,233		1,088,745		1,108,451
Total commercial	10,091		197,976		8,073,895		8,281,962
Consumer	275		6,908		437,488		444,671
Total	$	118,271	$	566,259	$	27,924,599	$	28,609,129


	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

Troubled Debt Restructurings on Financing Receivables

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. Between March 2020 and December 2021, the Company granted various commercial and consumer loan modifications to provide borrowers relief from the economic impacts of COVID-19. In accordance with the CARES Act, the Company elected to not apply TDR classification to COVID-19 related loan modifications that met all of the requisite criteria as stipulated in the CARES Act. The following table presents our troubled debt restructurings of loans held for investment by loan portfolio segment and class for the years indicated:


						Troubled Debt Restructurings
	Troubled Debt Restructurings					That Subsequently Defaulted(1)
		Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding		Number
	of	Recorded		Recorded		of	Recorded
	Loans	Investment		Investment		Loans	Investment(1)
	(Dollars In thousands)
Year Ended December 31, 2022
Real estate mortgage:
Commercial	4	$	626	$	626	—	$	—
Residential	18	5,562		1,098		1	97
Real estate construction and land:

Residential	4	3,521		—		—	—
Commercial:

Venture capital	6	6,262		3,330		—	—
Other commercial	23	1,484		1,484		—	—
Consumer	1	18		18		—	—
Total	56	$	17,473	$	6,556	1	$	97
Year Ended December 31, 2021
Real estate mortgage:
Commercial	2	$	647	$	—	—	$	—
Residential	6	802		802		—	—
Real estate construction and land:

Residential	1	208		208		—	—
Commercial:
Asset-based	2	1,987		1,987		1	464
Venture capital	5	4,502		2,529		—	—
Other commercial	40	48,760		30,786		3	2,066
Consumer	1	20		20		—	—
Total	57	$	56,926	$	36,332	4	$	2,530
Year Ended December 31, 2020
Real estate mortgage:
Commercial	12	$	17,201	$	4,222	1	$	412
Residential	9	1,816		1,816		—	—



Commercial:
Asset-based	8	17,008		1,741		—	—
Venture capital	2	2,047		2,047		—	—
Other commercial	37	41,906		27,403		1	92
Consumer	3	212		212		—	—
Total	71	$	80,190	$	37,441	2	$	504

_________________________

(1) The population of defaulted TDRs for the period indicated includes only those loans restructured during the preceding 12-month period. For example, for the year ended December 31, 2022, the population of defaulted TDRs includes only those loans restructured after December 31, 2021. The table excludes defaulted TDRs in those classes for which the recorded investment was zero at the end of the period.

Direct Financing Lease, Lease Income

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


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	10,813	$	8,976	$	8,049

Direct Finance Lease, Receivable Components

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


	December 31,
	2022		2021
	(In thousands)
Net Investment in Direct Financing Leases:
Lease payments receivable	$	232,909	$	190,025
Unguaranteed residual assets	23,561		21,487
Deferred costs and other	1,815		1,373
Aggregate net investment in leases	$	258,285	$	212,885

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

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


	December 31, 2022
	(In thousands)
Year Ending December 31,
2023	$	69,139
2024	68,022
2025	49,643
2026	34,251
2027	21,892
Thereafter	17,998
Total undiscounted cash flows	260,945
Less: Unearned income	(28,036)
Present value of lease payments	$	232,909

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 years indicated:


	Year Ended December 31, 2022
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of year	$	98,053	$	45,079	$	48,718	$	8,714	$	200,564



Charge-offs	(3,625)		(1,431)		(6,817)		(2,164)		(14,037)
Recoveries	1,749		177		7,163		116		9,205
Net (charge-offs) recoveries	(1,876)		(1,254)		346		(2,048)		(4,832)
Provision	(9,530)		9,157		3,785		1,588		5,000
Balance, end of year	$	86,647	$	52,982	$	52,849	$	8,254	$	200,732

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	3,053	$	—	$	247	$	—	$	3,300
Collectively evaluated	$	83,594	$	52,982	$	52,602	$	8,254	$	197,432

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	68,571	$	27,451	$	4,422	$	—	$	100,444
Collectively evaluated	15,175,041		4,611,433		8,277,540		444,671		28,508,685
Ending balance	$	15,243,612	$	4,638,884	$	8,281,962	$	444,671	$	28,609,129


	Year Ended December 31, 2021
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of year	$	138,342	$	78,356	$	126,403	$	5,080	$	348,181
Charge-offs	(1,128)		(782)		(7,298)		(1,507)		(10,715)
Recoveries	6,767		—		5,711		120		12,598
Net recoveries (charge-offs)	5,639		(782)		(1,587)		(1,387)		1,883
Provision	(45,928)		(32,495)		(76,098)		5,021		(149,500)
Balance, end of year	$	98,053	$	45,079	$	48,718	$	8,714	$	200,564

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	161	$	—	$	2,433	$	—	$	2,594
Collectively evaluated	$	97,892	$	45,079	$	46,285	$	8,714	$	197,970

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	37,030	$	10,043	$	31,317	$	—	$	78,390
Collectively evaluated	11,141,690		3,427,084		7,836,734		457,650		22,863,158
Ending balance	$	11,178,720	$	3,437,127	$	7,868,051	$	457,650	$	22,941,548

The allowance for loan and lease losses increased by $0.2 million in 2022 due primarily to a provision for loan and lease losses of $5.0 million, offset partially by $4.8 million of net charge-offs. The provision for loan and lease losses in 2022 was driven by growth in loans and leases and a less favorable economic forecast offset partially by a decrease in qualitative reserves. For additional information regarding the calculation of the allowance for loan and lease losses using the CECL methodology, including discussion of forecasts used to estimate the allowance, please see Note 1(j). Nature of Operations and Summary of Significant Accounting Policies - Allowance for Credit Losses on Loans and Leases Held for Investment.

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 December 31, 2022, PPP loans totaled $10.2 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 date:


	December 31,
	2022						2021
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	80,145	$	—	$	80,145	$	30,817	$	—	$	30,817
Real estate construction and land	11,742		—		11,742		10,421		—		10,421
Commercial	—		434		434		—		7,586		7,586
Total	$	91,887	$	434	$	92,321	$	41,238	$	7,586	$	48,824

The following tables present a summary of the activity in the allowance for loan and lease losses and reserve for unfunded loan commitments for the years indicated:


	Year Ended December 31, 2022
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of year	$	200,564	$	73,071	$	273,635



Charge-offs	(14,037)		—		(14,037)
Recoveries	9,205		—		9,205
Net charge-offs	(4,832)		—		(4,832)
Provision	5,000		18,000		23,000
Balance, end of year	$	200,732	$	91,071	$	291,803


	Year Ended December 31, 2021
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of year	$	348,181	$	85,571	$	433,752
Charge-offs	(10,715)		—		(10,715)
Recoveries	12,598		—		12,598
Net recoveries	1,883		—		1,883
Provision	(149,500)		(12,500)		(162,000)
Balance, end of year	$	200,564	$	73,071	$	273,635

Loans and Leases

NOTE 5. LOANS AND LEASES

Loans and Leases Held for Investment

The following table summarizes the composition of our loans and leases held for investment as of the dates indicated:


	December 31,
	2022		2021
	(In thousands)
Real estate mortgage	$	15,272,527	$	11,189,278
Real estate construction and land (1)	4,711,677		3,491,340
Commercial	8,297,182		7,888,068
Consumer	444,630		457,622
Total gross loans and leases held for investment	28,726,016		23,026,308
Deferred fees, net	(116,887)		(84,760)
Total loans and leases held for investment, net of deferred fees	28,609,129		22,941,548
Allowance for loan and lease losses	(200,732)		(200,564)
Total loans and leases held for investment, net (2)	$	28,408,397	$	22,740,984

____________________

(1) Includes land and acquisition and development loans of $153.5 million and $151.8 million at December 31, 2022 and 2021.

(2) Excludes accrued interest receivable of $124.3 million and $80.3 million at December 31, 2022 and 2021, which is recorded in "Other assets" on the consolidated balance sheets.

The following tables present an aging analysis of our loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated:


	December 31, 2022
	30 - 89		90 or More
	Days		Days		Total
	Past Due		Past Due		Past Due		Current		Total
	(In thousands)
Real estate mortgage:
Commercial	$	1,721	$	29,269	$	30,990	$	3,815,841	$	3,846,831
Residential	74,918		30,963		105,881		11,290,900		11,396,781
Total real estate mortgage	76,639		60,232		136,871		15,106,741		15,243,612
Real estate construction and land:
Commercial	—		—		—		898,592		898,592
Residential	26,810		8,912		35,722		3,704,570		3,740,292
Total real estate construction and land	26,810		8,912		35,722		4,603,162		4,638,884
Commercial:
Asset-based	—		434		434		5,139,775		5,140,209
Venture capital	—		—		—		2,033,302		2,033,302
Other commercial	461		1,195		1,656		1,106,795		1,108,451
Total commercial	461		1,629		2,090		8,279,872		8,281,962
Consumer	1,935		149		2,084		442,587		444,671
Total	$	105,845	$	70,922	$	176,767	$	28,432,362	$	28,609,129


	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

The following table presents our nonaccrual and performing loans and leases held for investment, net of deferred fees, by loan portfolio segment and class as of the dates indicated:


	December 31,
	2022						2021
	Nonaccrual		Performing		Total		Nonaccrual		Performing		Total
	(In thousands)
Real estate mortgage:
Commercial	$	42,509	$	3,804,322	$	3,846,831	$	27,540	$	3,734,759	$	3,762,299
Residential	45,272		11,351,509		11,396,781		12,292		7,404,129		7,416,421
Total real estate mortgage	87,781		15,155,831		15,243,612		39,832		11,138,888		11,178,720
Real estate construction and land:
Commercial	—		898,592		898,592		—		832,591		832,591
Residential	10,621		3,729,671		3,740,292		4,715		2,599,821		2,604,536
Total real estate construction and land	10,621		4,628,263		4,638,884		4,715		3,432,412		3,437,127
Commercial:
Asset-based	865		5,139,344		5,140,209		1,464		4,074,013		4,075,477
Venture capital	—		2,033,302		2,033,302		2,799		2,317,794		2,320,593
Other commercial	4,345		1,104,106		1,108,451		11,950		1,460,031		1,471,981
Total commercial	5,210		8,276,752		8,281,962		16,213		7,851,838		7,868,051
Consumer	166		444,505		444,671		414		457,236		457,650
Total	$	103,778	$	28,505,351	$	28,609,129	$	61,174	$	22,880,374	$	22,941,548

The amount of interest income that would have been recorded on nonaccrual loans and leases at December 31, 2022 and 2021 had such loans and leases been current in accordance with their original terms was $6.3 million and $4.9 million for 2022 and 2021.

At December 31, 2022, nonaccrual loans and leases included $70.9 million of loans and leases 90 or more days past due, $6.8 million of loans 30 to 89 days past due and $26.0 million of current loans 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 30 to 89 days past due and $36.4 million of current loans that were placed on nonaccrual status based on management’s judgment regarding their collectability.

As of December 31, 2022, our three largest loan relationships on nonaccrual status had an aggregate carrying value of $30.8 million and represented 30% of total nonaccrual loans and leases.


	December 31, 2022
	Classified		Special Mention		Pass		Total
	(In thousands)
Real estate mortgage:
Commercial	$	43,737	$	106,493	$	3,696,601	$	3,846,831
Residential	53,207		82,688		11,260,886		11,396,781
Total real estate mortgage	96,944		189,181		14,957,487		15,243,612
Real estate construction and land:
Commercial	—		91,334		807,258		898,592
Residential	10,961		80,860		3,648,471		3,740,292
Total real estate construction and land	10,961		172,194		4,455,729		4,638,884
Commercial:
Asset-based	865		56,836		5,082,508		5,140,209
Venture capital	2,753		127,907		1,902,642		2,033,302
Other commercial	6,473		13,233		1,088,745		1,108,451
Total commercial	10,091		197,976		8,073,895		8,281,962
Consumer	275		6,908		437,488		444,671
Total	$	118,271	$	566,259	$	27,924,599	$	28,609,129


	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 year indicated:


	At and For the Year Ended
	December 31, 2022				December 31, 2021
	Nonaccrual		Interest		Nonaccrual		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
	(In thousands)
With An Allowance Recorded:
Real estate mortgage:
Commercial	$	15,487	$	—	$	70	$	—
Residential	6,392		—		3,555		—
Real estate construction and land:
Commercial	—		—		—		—
Residential	1,575		—		616		—
Commercial:
Asset based	431		—		1,000		—
Venture capital	—		—		2,799		—
Other commercial	1,116		—		1,081		—
Consumer	166		—		19		—
With No Related Allowance Recorded:
Real estate mortgage:
Commercial	$	27,022	$	444	$	27,470	$	596
Residential	38,880		—		8,737		—
Real estate construction and land:
Commercial	—		—		—		—
Residential	9,046		—		4,099		—
Commercial:
Asset based	434		—		464		—
Venture capital	—		—		—		—
Other commercial	3,229		480		10,869		169
Consumer	—		—		395		—
Total Loans and Leases With and
Without an Allowance Recorded:
Real estate mortgage	$	87,781	$	444	$	39,832	$	596
Real estate construction and land	10,621		—		4,715		—
Commercial	5,210		480		16,213		169
Consumer	166		—		414		—
Total	$	103,778	$	924	$	61,174	$	765

The following tables present our loans held for investment by loan portfolio segment and class, by credit quality indicator (internal risk ratings), and by year of origination (vintage year) as of the date indicated:


															Revolving
															Converted
Amortized Cost Basis (1)	Term Loans by Origination Year												Revolving		to Term
December 31, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Real Estate Mortgage:
Commercial
Internal risk rating:
1-2 High pass	$	4,957	$	3,791	$	7,215	$	26,132	$	4,690	$	35,343	$	1,290	$	—	$	83,418
3-4 Pass	537,931		501,576		467,792		322,448		539,701		1,148,386		85,284		10,065		3,613,183
5 Special mention	—		—		728		16,394		2,294		87,077		—		—		106,493
6-8 Classified	—		559		464		1,310		27,396		14,008		—		—		43,737
Total	$	542,888	$	505,926	$	476,199	$	366,284	$	574,081	$	1,284,814	$	86,574	$	10,065	$	3,846,831
Current YTD period:
Gross charge-offs	$	—	$	67	$	—	$	79	$	2,258	$	326	$	—	$	—	$	2,730

Real Estate Mortgage:
Residential
Internal risk rating:
1-2 High pass	$	—	$	89,251	$	19,945	$	58,275	$	66,219	$	69,805	$	1,000	$	—	$	304,495
3-4 Pass	4,401,409		4,193,056		603,065		676,169		447,223		531,579		103,794		96		10,956,391
5 Special mention	9,455		11,841		5,897		16,974		7,112		31,409		—		—		82,688
6-8 Classified	16,558		25,590		4,690		—		2,750		3,416		—		203		53,207
Total	$	4,427,422	$	4,319,738	$	633,597	$	751,418	$	523,304	$	636,209	$	104,794	$	299	$	11,396,781
Current YTD period:
Gross charge-offs	$	249	$	425	$	140	$	—	$	—	$	81	$	—	$	—	$	895

Real Estate Construction
and Land: Commercial
Internal risk rating:
1-2 High pass	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
3-4 Pass	299,538		170,397		74,634		237,294		17,763		7,632		—		—		807,258
5 Special mention	—		—		—		—		91,334		—		—		—		91,334
6-8 Classified	—		—		—		—		—		—		—		—		—
Total	$	299,538	$	170,397	$	74,634	$	237,294	$	109,097	$	7,632	$	—	$	—	$	898,592
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
December 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	950,144		1,393,485		848,201		282,076		125,806		204		48,555		—		3,648,471
5 Special mention	17,817		13,925		3,963		45,155		—		—		—		—		80,860
6-8 Classified	2,690		7,628		643		—		—		—		—		—		10,961
Total	$	970,651	$	1,415,038	$	852,807	$	327,231	$	125,806	$	204	$	48,555	$	—	$	3,740,292
Current YTD period:
Gross charge-offs	$	—	$	659	$	772	$	—	$	—	$	—	$	—	$	—	$	1,431

Commercial: Asset-Based
Internal risk rating:
1-2 High pass	$	225,140	$	209,272	$	57,727	$	202,063	$	121,600	$	208,542	$	850,031	$	—	$	1,874,375
3-4 Pass	547,675		188,269		52,711		35,811		33,426		40,714		2,239,785		69,742		3,208,133
5 Special mention	—		—		—		43,409		—		3,505		9,922		—		56,836
6-8 Classified	—		—		—		—		—		434		—		431		865
Total	$	772,815	$	397,541	$	110,438	$	281,283	$	155,026	$	253,195	$	3,099,738	$	70,173	$	5,140,209
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	750	$	—	$	750

Commercial: Venture
Capital
Internal risk rating:
1-2 High pass	$	(40)	$	—	$	2,000	$	—	$	134	$	3	$	216,535	$	503	$	219,135
3-4 Pass	92,015		136,296		18,075		3,705		1,833		910		1,365,101		65,572		1,683,507
5 Special mention	13,970		40,924		4,483		23,202		—		—		40,335		4,993		127,907
6-8 Classified	—		2,753		—		—		—		—		—		—		2,753
Total	$	105,945	$	179,973	$	24,558	$	26,907	$	1,967	$	913	$	1,621,971	$	71,068	$	2,033,302
Current YTD period:
Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	940	$	—	$	940

____________________

(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, 2022	2022		2021		2020		2019		2018		Prior		Loans		Loans		Total
	(In thousands)
Commercial: Other
Commercial
Internal risk rating:
1-2 High pass	$	3,591	$	10,880	$	12	$	161	$	3	$	14	$	20,958	$	—	$	35,619
3-4 Pass	84,930		278,208		54,542		41,908		47,771		87,645		454,438		3,684		1,053,126
5 Special mention	7,038		796		184		695		1,526		2,858		47		89		13,233
6-8 Classified	—		806		—		319		(3)		2,653		1,600		1,098		6,473
Total	$	95,559	$	290,690	$	54,738	$	43,083	$	49,297	$	93,170	$	477,043	$	4,871	$	1,108,451
Current YTD period:
Gross charge-offs	$	—	$	209	$	—	$	1	$	—	$	2,537	$	1,906	$	474	$	5,127

Consumer
Internal risk rating:
1-2 High pass	$	34	$	30	$	7	$	—	$	1	$	—	$	854	$	—	$	926
3-4 Pass	62,868		226,084		20,798		48,542		31,693		37,838		8,739		—		436,562
5 Special mention	1,252		3,490		464		1,126		278		238		60		—		6,908
6-8 Classified	47		—		—		59		79		74		—		16		275
Total	$	64,201	$	229,604	$	21,269	$	49,727	$	32,051	$	38,150	$	9,653	$	16	$	444,671
Current YTD period:
Gross charge-offs	$	309	$	529	$	237	$	728	$	—	$	354	$	—	$	7	$	2,164

Total Loans and Leases
Internal risk rating:
1-2 High pass	$	233,682	$	313,224	$	86,906	$	286,631	$	192,647	$	313,707	$	1,090,668	$	503	$	2,517,968
3-4 Pass	6,976,510		7,087,371		2,139,818		1,647,953		1,245,216		1,854,908		4,305,696		149,159		25,406,631
5 Special mention	49,532		70,976		15,719		146,955		102,544		125,087		50,364		5,082		566,259
6-8 Classified	19,295		37,336		5,797		1,688		30,222		20,585		1,600		1,748		118,271
Total	$	7,279,019	$	7,508,907	$	2,248,240	$	2,083,227	$	1,570,629	$	2,314,287	$	5,448,328	$	156,492	$	28,609,129
Current YTD period:
Gross charge-offs	$	558	$	1,889	$	1,149	$	808	$	2,258	$	3,298	$	3,596	$	481	$	14,037

____________________

(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

____________________

(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 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
	Troubled Debt Restructurings					That Subsequently Defaulted(1)
		Pre-Modification		Post-Modification
	Number	Outstanding		Outstanding		Number
	of	Recorded		Recorded		of	Recorded
	Loans	Investment		Investment		Loans	Investment(1)
	(Dollars In thousands)
Year Ended December 31, 2022
Real estate mortgage:
Commercial	4	$	626	$	626	—	$	—
Residential	18	5,562		1,098		1	97
Real estate construction and land:

Residential	4	3,521		—		—	—
Commercial:

Venture capital	6	6,262		3,330		—	—
Other commercial	23	1,484		1,484		—	—
Consumer	1	18		18		—	—
Total	56	$	17,473	$	6,556	1	$	97
Year Ended December 31, 2021
Real estate mortgage:
Commercial	2	$	647	$	—	—	$	—
Residential	6	802		802		—	—
Real estate construction and land:

Residential	1	208		208		—	—
Commercial:
Asset-based	2	1,987		1,987		1	464
Venture capital	5	4,502		2,529		—	—
Other commercial	40	48,760		30,786		3	2,066
Consumer	1	20		20		—	—
Total	57	$	56,926	$	36,332	4	$	2,530
Year Ended December 31, 2020
Real estate mortgage:
Commercial	12	$	17,201	$	4,222	1	$	412
Residential	9	1,816		1,816		—	—



Commercial:
Asset-based	8	17,008		1,741		—	—
Venture capital	2	2,047		2,047		—	—
Other commercial	37	41,906		27,403		1	92
Consumer	3	212		212		—	—
Total	71	$	80,190	$	37,441	2	$	504

_________________________

At December 31, 2022 and 2021, we had unfunded commitments related to TDRs of $897,000 and $2.0 million.

Leases Receivable

We provide equipment financing to our customers primarily with operating and direct financing leases. For direct financing leases, lease receivables are recorded on the balance sheet but the leased equipment is not, although we generally retain legal title to the leased equipment until the end of each lease. Direct financing leases are stated at the net amount of minimum lease payments receivable, plus any unguaranteed residual value, less the amount of unearned income and net acquisition discount at the reporting date. Direct lease origination costs are amortized using the effective interest method over the life of the leases. Direct financing leases are subject to our accounting for allowance for loan and lease losses. See Note 10. Leases for information regarding operating leases where we are the lessor.

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


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Component of leases receivable income:
Interest income on net investments in leases	$	10,813	$	8,976	$	8,049

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


	December 31,
	2022		2021
	(In thousands)
Net Investment in Direct Financing Leases:
Lease payments receivable	$	232,909	$	190,025
Unguaranteed residual assets	23,561		21,487
Deferred costs and other	1,815		1,373
Aggregate net investment in leases	$	258,285	$	212,885

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


	December 31, 2022
	(In thousands)
Year Ending December 31,
2023	$	69,139
2024	68,022
2025	49,643
2026	34,251
2027	21,892
Thereafter	17,998
Total undiscounted cash flows	260,945
Less: Unearned income	(28,036)
Present value of lease payments	$	232,909

Allowance for Loan and Lease Losses

The following tables present a summary of the activity in the allowance for loan and lease losses on loans and leases held for investment by loan portfolio segment for the years indicated:


	Year Ended December 31, 2022
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of year	$	98,053	$	45,079	$	48,718	$	8,714	$	200,564



Charge-offs	(3,625)		(1,431)		(6,817)		(2,164)		(14,037)
Recoveries	1,749		177		7,163		116		9,205
Net (charge-offs) recoveries	(1,876)		(1,254)		346		(2,048)		(4,832)
Provision	(9,530)		9,157		3,785		1,588		5,000
Balance, end of year	$	86,647	$	52,982	$	52,849	$	8,254	$	200,732

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	3,053	$	—	$	247	$	—	$	3,300
Collectively evaluated	$	83,594	$	52,982	$	52,602	$	8,254	$	197,432

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	68,571	$	27,451	$	4,422	$	—	$	100,444
Collectively evaluated	15,175,041		4,611,433		8,277,540		444,671		28,508,685
Ending balance	$	15,243,612	$	4,638,884	$	8,281,962	$	444,671	$	28,609,129


	Year Ended December 31, 2021
			Real Estate
	Real Estate		Construction
	Mortgage		and Land		Commercial		Consumer		Total
	(In thousands)
Allowance for Loan and Lease Losses:
Balance, beginning of year	$	138,342	$	78,356	$	126,403	$	5,080	$	348,181
Charge-offs	(1,128)		(782)		(7,298)		(1,507)		(10,715)
Recoveries	6,767		—		5,711		120		12,598
Net recoveries (charge-offs)	5,639		(782)		(1,587)		(1,387)		1,883
Provision	(45,928)		(32,495)		(76,098)		5,021		(149,500)
Balance, end of year	$	98,053	$	45,079	$	48,718	$	8,714	$	200,564

Ending Allowance by
Evaluation Methodology:
Individually evaluated	$	161	$	—	$	2,433	$	—	$	2,594
Collectively evaluated	$	97,892	$	45,079	$	46,285	$	8,714	$	197,970

Ending Loans and Leases by
Evaluation Methodology:
Individually evaluated	$	37,030	$	10,043	$	31,317	$	—	$	78,390
Collectively evaluated	11,141,690		3,427,084		7,836,734		457,650		22,863,158
Ending balance	$	11,178,720	$	3,437,127	$	7,868,051	$	457,650	$	22,941,548


	December 31,
	2022						2021
	Real		Business				Real		Business
	Property		Assets		Total		Property		Assets		Total
	(In thousands)
Real estate mortgage	$	80,145	$	—	$	80,145	$	30,817	$	—	$	30,817
Real estate construction and land	11,742		—		11,742		10,421		—		10,421
Commercial	—		434		434		—		7,586		7,586
Total	$	91,887	$	434	$	92,321	$	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 consolidated balance sheets.

The following tables present a summary of the activity in the allowance for loan and lease losses and reserve for unfunded loan commitments for the years indicated:


	Year Ended December 31, 2022
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of year	$	200,564	$	73,071	$	273,635



Charge-offs	(14,037)		—		(14,037)
Recoveries	9,205		—		9,205
Net charge-offs	(4,832)		—		(4,832)
Provision	5,000		18,000		23,000
Balance, end of year	$	200,732	$	91,071	$	291,803


	Year Ended December 31, 2021
	Allowance for		Reserve for		Total
	Loan and		Unfunded Loan		Allowance for
	Lease Losses		Commitments		Credit Losses
	(In thousands)
Balance, beginning of year	$	348,181	$	85,571	$	433,752
Charge-offs	(10,715)		—		(10,715)
Recoveries	12,598		—		12,598
Net recoveries	1,883		—		1,883
Provision	(149,500)		(12,500)		(162,000)
Balance, end of year	$	200,564	$	73,071	$	273,635