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Loans and Leases Held for Investment, Net of Allowance For Loan and Lease Losses (Tables)
 9 Months Ended
Sep. 30, 2022
Loans and Leases Receivable Disclosure [Abstract]  
Loans and Notes and Certificates
The Company defines its loans and leases HFI portfolio segments as (i) consumer and (ii) commercial. The following tables present the components of each portfolio segment by class of financing receivable:
September 30, 2022December 31, 2021
Unsecured personal$3,642,254 $1,804,578 
Residential mortgages197,776 151,362 
Secured consumer180,768 65,976 
Total consumer loans held for investment4,020,798 2,021,916 
Equipment finance (1)
167,447 149,155 
Commercial real estate372,406 310,399 
Commercial and industrial (2)
246,276 417,656 
Total commercial loans and leases held for investment786,129 877,210 
Total loans and leases held for investment4,806,927 2,899,126 
Allowance for loan and lease losses(303,201)(144,389)
Loans and leases held for investment, net (3)
$4,503,726 $2,754,737 
(1)    Comprised of sales-type leases for equipment. See “Note 16. Leases” for additional information.
(2)    Includes $89.4 million and $268.3 million of pledged loans under the Paycheck Protection Program (PPP) as of September 30, 2022 and December 31, 2021, respectively.
(3)    As of September 30, 2022 and December 31, 2021, the Company had $278.4 million and $149.2 million in loans pledged as collateral under the Federal Reserve Bank (FRB) Discount Window, respectively.

September 30, 2022GrossALLLNet
Allowance Ratios (1)
Total consumer loans held for investment$4,020,798 $288,138 $3,732,660 7.2 %
Total commercial loans and leases held for investment (2)
786,129 15,063 771,066 1.9 %
Total loans and leases held for investment (2)
$4,806,927 $303,201 $4,503,726 6.3 %
December 31, 2021GrossALLLNet
Allowance Ratios (1)
Total consumer loans held for investment$2,021,916 $128,812 $1,893,104 6.4 %
Total commercial loans and leases held for investment (2)
877,210 15,577 861,633 1.8 %
Total loans and leases held for investment (2)
$2,899,126 $144,389 $2,754,737 5.0 %
(1)    Calculated as the ratio of allowance for loan and lease losses (ALLL) to loans and leases HFI.
(2)    As of September 30, 2022, excluding the $89.4 million of PPP loans, the ALLL represented 2.2% of commercial loans and leases HFI and 6.4% of total loans and leases HFI. As of December 31, 2021, excluding $268.3 million of PPP loans, the ALLL represented 2.6% of commercial loans and leases HFI and 5.5% of total loans and leases HFI. PPP loans are guaranteed by the Small Business Administration (SBA) and, therefore, the Company determined no ACL is required on these loans.
Financing Receivable, Allowance for Credit Loss
The activity in the ACL by portfolio segment was as follows:
Three Months Ended September 30,
20222021
ConsumerCommercialTotalConsumerCommercialTotal
Allowance for loan and lease losses, beginning of period$228,184 $15,076 $243,260 $54,058 $17,023 $71,081 
Credit loss expense for loans and leases held for investment
81,935 664 82,599 37,695 (562)37,133 
Charge-offs (1)
(22,944)(784)(23,728)(3,142)(1,194)(4,336)
Recoveries963 107 1,070 20 838 858 
Allowance for loan and lease losses, end of period$288,138 $15,063 $303,201 $88,631 $16,105 $104,736 
Reserve for unfunded lending commitments, beginning of period$136 $1,889 $2,025 $— $390 $390 
Credit loss expense for unfunded lending commitments (78)218 140 50 837 887 
Reserve for unfunded lending commitments, end of period (2)
$58 $2,107 $2,165 $50 $1,227 $1,277 
Nine Months Ended September 30,
20222021
ConsumerCommercialTotalConsumerCommercialTotal
Allowance for loan and lease losses, beginning of period$128,812 $15,577 $144,389 $— $— $— 
Credit loss expense for loans and leases held for investment (3)
203,967 913 204,880 91,194 4,468 95,662 
Initial allowance for PCD loans acquired during the period (4)
— — — 603 11,837 12,440 
Charge-offs (1)
(46,668)(2,001)(48,669)(3,232)(1,350)(4,582)
Recoveries2,027 574 2,601 66 1,150 1,216 
Allowance for loan and lease losses, end of period$288,138 $15,063 $303,201 $88,631 $16,105 $104,736 
Reserve for unfunded lending commitments, beginning of period$— $1,231 $1,231 $— $— $— 
Credit loss expense for unfunded lending commitments 58 876 934 50 1,227 1,277 
Reserve for unfunded lending commitments, end of period (2)
$58 $2,107 $2,165 $50 $1,227 $1,277 
(1)    Unsecured personal loans are charged-off when a borrower is (i) contractually 120 days past due or (ii) two payments past due and has filed for bankruptcy or is deceased.
(2)    Relates to $144.0 million and $115.5 million of unfunded commitments as of September 30, 2022 and 2021, respectively.
(3)    Includes $6.9 million of credit loss expense for Radius loans at Acquisition for the first quarter of 2021.
(4)    For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date for the first quarter of 2021. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off
policy, an ACL of $18.0 million included as part of the grossed-up loan balance at Acquisition was immediately written-off during the first quarter of 2021. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million for the first quarter of 2021.
Financing Receivable Credit Quality Indicators The following tables present the classes of financing receivables within the consumer portfolio segment by credit quality indicator based on delinquency status and origination year:
September 30, 2022 Term Loans and Leases by Origination Year
20222021202020192018PriorTotal
Unsecured personal
Current $2,458,166 $1,146,225 $— $— $— $— $3,604,391 
30-59 days past due 5,758 9,041 — — — — 14,799 
60-89 days past due 4,038 8,425 — — — — 12,463 
90 or more days past due 2,520 8,081 — — — — 10,601 
Total unsecured personal2,470,482 1,171,772 — — — — 3,642,254 
Residential mortgages
Current 43,130 59,682 33,680 21,835 4,573 34,539 197,439 
30-59 days past due — — — — — — — 
60-89 days past due — — — — — — — 
90 or more days past due — — — — 4 333 337 
Total residential mortgages 43,130 59,682 33,680 21,835 4,577 34,872 197,776 
Secured consumer
Current133,644 42,910 — 2,563 — — 179,117 
30-59 days past due596 389 — — — — 985 
60-89 days past due270 234 — — — — 504 
90 or more days past due67 95 — — — — 162 
Total secured consumer134,577 43,628 — 2,563 — — 180,768 
Total consumer loans held for investment$2,648,189 $1,275,082 $33,680 $24,398 $4,577 $34,872 $4,020,798 
December 31, 2021 Term Loans and Leases by Origination Year
20212020201920182017PriorWithin Revolving PeriodTotal
Unsecured personal
Current $1,796,678 $— $— $— $— $— $— $1,796,678 
30-59 days past due 3,624 — — — — — — 3,624 
60-89 days past due 2,600 — — — — — — 2,600 
90 or more days past due 1,676 — — — — — — 1,676 
Total unsecured personal1,804,578 — — — — — — 1,804,578 
Residential mortgages
Current 36,732 37,620 26,798 7,277 2,682 37,685 1,265 150,059 
30-59 days past due — — — — — 142 — 142 
60-89 days past due — — — — 92 — — 92 
90 or more days past due — — — — 251 818 — 1,069 
Total residential mortgages 36,732 37,620 26,798 7,277 3,025 38,645 1,265 151,362 
Secured consumer
Current62,731 — — — — — 10 62,741 
30-59 days past due171 — — — — — — 171 
60-89 days past due53 — — — — — — 53 
90 or more days past due— — — 2,629 382 — — 3,011 
Total secured consumer62,955 — — 2,629 382 — 10 65,976 
Total consumer loans held for investment$1,904,265 $37,620 $26,798 $9,906 $3,407 $38,645 $1,275 $2,021,916 
The following tables present the classes of financing receivables within the commercial portfolio segment by risk rating and origination year:
September 30, 2022 Term Loans and Leases by Origination Year
20222021202020192018PriorTotal
Equipment finance
Pass $55,947 $42,853 $28,066 $20,145 $12,751 $3,704 $163,466 
Special mention— 2,198 — 1,603 — — 3,801 
Substandard — — — — 180 — 180 
Doubtful — — — — — — — 
Loss— — — — — — — 
Total equipment finance55,947 45,051 28,066 21,748 12,931 3,704 167,447 
Commercial real estate
Pass 84,608 56,575 50,985 52,967 38,941 63,589 347,665 
Special mention— — 8,415 262 1,242 842 10,761 
Substandard — — — 658 2,403 10,364 13,425 
Doubtful — — — — — — — 
Loss— — — — — 555 555 
Total commercial real estate84,608 56,575 59,400 53,887 42,586 75,350 372,406 
Commercial and industrial
Pass 37,626 126,661 26,382 15,190 4,702 12,710 223,271 
Special mention— 176 1,962 1,852 166 473 4,629 
Substandard — 4,746 4,678 3,812 1,668 1,839 16,743 
Doubtful — — 111 — — 287 398 
Loss— — — — 6 1,229 1,235 
Total commercial and industrial (1)
37,626 131,583 33,133 20,854 6,542 16,538 246,276 
Total commercial loans and leases held for investment$178,181 $233,209 $120,599 $96,489 $62,059 $95,592 $786,129 
(1)    Includes $89.4 million of PPP loans.
December 31, 2021 Term Loans and Leases by Origination Year
20212020201920182017PriorWithin Revolving PeriodTotal
Equipment finance
Pass $52,440 $35,398 $26,918 $15,457 $6,184 $8,814 $— $145,211 
Special mention1,531 — 1,810 — — — — 3,341 
Substandard — — — 603 — — — 603 
Doubtful — — — — — — — — 
Loss— — — — — — — — 
Total equipment finance53,971 35,398 28,728 16,060 6,184 8,814 — 149,155 
Commercial real estate
Pass 55,613 55,202 54,460 39,981 22,366 57,235 — 284,857 
Special mention— 8,397 — 1,366 1,018 7,242 — 18,023 
Substandard — — 277 2,496 — 4,179 — 6,952 
Doubtful — — — — — — — — 
Loss— — — — — 567 — 567 
Total commercial real estate55,613 63,599 54,737 43,843 23,384 69,223 — 310,399 
Commercial and industrial
Pass 241,368 108,574 24,106 7,874 14,756 8,058 599 405,335 
Special mention— — 2,207 463 1,467 40 — 4,177 
Substandard — 1,122 862 1,858 1,525 1,571 87 7,025 
Doubtful — — — — — — — — 
Loss— — — 52 4 1,063 — 1,119 
Total commercial and industrial (1)
241,368 109,696 27,175 10,247 17,752 10,732 686 417,656 
Total commercial loans and leases held for investment$350,952 $208,693 $110,640 $70,150 $47,320 $88,769 $686 $877,210 
(1)    Includes $268.3 million of PPP loans.
Past Due Financing Receivables
The following tables present an analysis of the past due loans and leases HFI within the commercial portfolio segment:
September 30, 202230-59
Days		60-89
Days		90 or More DaysTotal
Equipment finance$— $— $— $— 
Commercial real estate— 101 452 553 
Commercial and industrial (1)
— — 1,650 1,650 
Total commercial loans and leases held for investment$— $101 $2,102 $2,203 
December 31, 202130-59
Days		60-89
Days		90 or More
Days		Total
Equipment finance$— $— $— $— 
Commercial real estate104 — 609 713 
Commercial and industrial (1)
— — 1,410 1,410 
Total commercial loans and leases held for investment$104 $— $2,019 $2,123 
(1)    Past due PPP loans are excluded from the tables.
The following table presents nonaccrual loans and leases:
September 30, 2022December 31, 2021
Nonaccrual(1)
Nonaccrual with no related ACL(2)
Nonaccrual(1)
Nonaccrual with no related ACL(2)
Unsecured personal$10,601 $— $1,676 $— 
Residential mortgages337 337 1,373 1,373 
Secured consumer162 — 3,011 3,011 
Total nonaccrual consumer loans held for investment11,100 337 6,060 4,384 
Equipment finance180 — 603 — 
Commercial real estate1,013 1,013 989 989 
Commercial and industrial12,214 1,338 2,333 1,061 
Total nonaccrual commercial loans and leases held for investment13,407 2,351 3,925 2,050 
Total nonaccrual loans and leases held for investment$24,507 $2,688 $9,985 $6,434 
(1)     Excluding PPP loans, there were no loans and leases that were 90 days or more past due and accruing as of both September 30, 2022 and December 31, 2021.
(2)     Subset of total nonaccrual loans and leases.

September 30, 2022December 31, 2021
Nonaccrual
Nonaccrual Ratios (1)
Nonaccrual
Nonaccrual Ratios (1)
Total nonaccrual consumer loans held for investment$11,100 0.28 %$6,060 0.30 %
Total nonaccrual commercial loans and leases held for investment13,407 1.71 %3,925 0.45 %
Total nonaccrual loans and leases held for investment (2)
$24,507 0.51 %$9,985 0.34 %
(1)     Calculated as the ratio of nonaccruing loans and leases to loans and leases HFI.
(2)     Nonaccruing loans and leases represented 0.52% and 0.38% of total loans and leases HFI, excluding PPP loans, as of September 30, 2022 and December 31, 2021, respectively.
Financing Receivable, Acquired Financial Assets With Credit Deterioration Acquired PCD loans during the first nine months of 2021 were as follows:
Purchase price$337,118 
Allowance for expected credit losses (1)
30,378 
Discount attributable to other factors12,204 
Par value$379,700 
(1)    For acquired PCD loans, an ACL of $30.4 million was required with a corresponding increase to the amortized cost basis as of the acquisition date for the first quarter of 2021. For PCD loans where all or a portion of the loan balance had been previously written-off, or would be subject to write-off under the Company’s charge-off policy, an ACL of $18.0 million included as part of the grossed-up loan balance at acquisition was immediately written-off during the first quarter of 2021. The net impact to the allowance for PCD assets on the acquisition date was $12.4 million for the first quarter of 2021.