Bank Loans (Tables)

9 Months Ended

Sep. 30, 2023

Receivables [Abstract]

Schedule of Balance and Associated Percentage of Each Major Loan Category in Bank Loan Portfolio

The following table presents the balance and associated percentage of each major loan category in our bank loan portfolio at September 30, 2023 and December 31, 2022 (in thousands, except percentages):

	September 30, 2023						December 31, 2022
	Balance			Percent			Balance			Percent
Residential real estate	$	7,957,027			38.9	%	$	7,371,671			35.8	%
Commercial and industrial		4,367,671			21.4			4,897,176			23.8
Fund banking		4,114,889			20.1			4,182,641			20.3
Securities-based loans		2,317,631			11.3			2,724,551			13.2
Construction and land		851,709			4.2			593,191			2.9
Commercial real estate		670,907			3.3			675,599			3.3
Home equity lines of credit		123,995			0.6			107,136			0.5
Other		48,560			0.2			50,593			0.2
Gross bank loans		20,452,389			100.0	%		20,602,558			100.0	%
Loans in process		(8,509	)					(3,526	)
Unamortized loan fees, net		(15,530	)					(22,287	)
Allowance for loan losses		(135,797	)					(111,653	)
Loans held for investment, net	$	20,292,553					$	20,465,092

Activity in Allowance for Loan Losses by Portfolio Segment

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2023 (in thousands).

	Three Months Ended September 30, 2023
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	66,377	$	8,584		$	(302	)	$	—	$	74,659
Commercial real estate		13,429		6,437			—			—		19,866
Residential real estate		14,413		194			—			—		14,607
Fund banking		12,178		(660	)		—			—		11,518
Construction and land		12,645		(1,145	)		—			—		11,500
Securities-based loans		3,086		(68	)		—			—		3,018
Home equity lines of credit		168		27			—			—		195
Other		385		49			—			—		434
	$	122,681	$	13,418		$	(302	)	$	—	$	135,797

	Nine Months Ended September 30, 2023
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	54,143	$	21,283		$	(920	)	$	153	$	74,659
Commercial real estate		12,897		6,969			—			—		19,866
Residential real estate		20,441		(5,834	)		—			—		14,607
Fund banking		11,711		(193	)		—			—		11,518
Construction and land		8,568		2,932			—			—		11,500
Securities-based loans		3,157		(139	)		—			—		3,018
Home equity lines of credit		364		(169	)		—			—		195
Other		372		62			—			—		434
	$	111,653	$	24,911		$	(920	)	$	153	$	135,797

The following tables detail activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2022 (in thousands).

	Three Months Ended September 30, 2022
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	57,594	$	(1,511	)	$	(4,008	)	$	—	$	52,075
Residential real estate		22,615		(5,150	)		—			—		17,465
Fund banking		9,758		2,414			—			—		12,172
Commercial real estate		6,483		5,480			—			—		11,963
Construction and land		5,854		1,675			—			—		7,529
Securities-based loans		3,976		(658	)		—			—		3,318
Home equity lines of credit		922		(724	)		—			—		198
Other		280		24			—			—		304
	$	107,482	$	1,550		$	(4,008	)	$	—	$	105,024

	Nine Months Ended September 30, 2022
	Beginning Balance		Provision			Charge-offs			Recoveries		Ending Balance
Commercial and industrial	$	44,661	$	11,420		$	(4,008	)	$	2	$	52,075
Residential real estate		28,560		(11,095	)		—			—		17,465
Fund banking		8,868		3,304			—			—		12,172
Commercial real estate		3,934		8,029			—			—		11,963
Construction and land		8,536		(1,007	)		—			—		7,529
Securities-based loans		4,006		(652	)		(36	)		—		3,318
Home equity lines of credit		511		(313	)		—			—		198
Other		268		36			—			—		304
	$	99,344	$	9,722		$	(4,044	)	$	2	$	105,024

Aging of Recorded Investment in Past Due Loans

The following tables present the aging of the recorded investment in past due loans at September 30, 2023 and December 31, 2022 by portfolio segment (in thousands):

	As of September 30, 2023
	30 – 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current Balance		Total
Residential real estate	$	5,072	$	1,540	$	6,612	$	7,950,415	$	7,957,027
Commercial and industrial		—		9,233		9,233		4,358,438		4,367,671
Fund banking		—		—		—		4,114,889		4,114,889
Securities-based loans		—		—		—		2,317,631		2,317,631
Construction and land		—		—		—		851,709		851,709
Commercial real estate		—		—		—		670,907		670,907
Home equity lines of credit		51		22		73		123,922		123,995
Other		53		31		84		48,476		48,560
Total	$	5,176	$	10,826	$	16,002	$	20,436,387	$	20,452,389

	As of September 30, 2023*
	Nonaccrual		Restructured		Nonperforming loans with no allowance		Total
Commercial real estate	$	39,747	$	—	$	—	$	39,747
Commercial and industrial		9,233		—		—		9,233
Residential real estate		616		146		924		1,686
Home equity lines of credit		22		—		—		22
Other		29		—		2		31
Total	$	49,647	$	146	$	926	$	50,719

* There were no loans past due 90 days and still accruing interest at September 30, 2023.

	As of December 31, 2022
	30 – 89 Days Past Due		90 or More Days Past Due		Total Past Due		Current Balance		Total
Residential real estate	$	2,445	$	688	$	3,133	$	7,368,538	$	7,371,671
Commercial and industrial		—		9,226		9,226		4,887,950		4,897,176
Fund banking		—		—		—		4,182,641		4,182,641
Securities-based loans		—		—		—		2,724,551		2,724,551
Commercial real estate		—		—		—		675,599		675,599
Construction and land		—		—		—		593,191		593,191
Home equity lines of credit		29		182		211		106,925		107,136
Other		36		6		42		50,551		50,593
Total	$	2,510	$	10,102	$	12,612	$	20,589,946	$	20,602,558

	As of December 31, 2022*
	Nonaccrual		Restructured		Nonperforming loans with no allowance		Total
Commercial and industrial	$	9,226	$	—	$	—	$	9,226
Residential real estate		870		150		—		1,020
Other		6		—		—		6
Total	$	10,102	$	150	$	—	$	10,252

* There were no loans past due 90 days and still accruing interest at December 31, 2022.

Risk Category of Loan Portfolio

Based on the most recent analysis performed, the risk category of our loan portfolio was as follows (in thousands):

	As of September 30, 2023
	Pass		Special Mention		Substandard		Doubtful		Total
Residential real estate	$	7,955,487	$	—	$	—	$	1,540	$	7,957,027
Commercial and industrial		4,122,791		75,483		160,164		9,233		4,367,671
Fund banking		4,114,889		—		—		—		4,114,889
Securities-based loans		2,317,629		—		—		2		2,317,631
Construction and land		827,228		24,481		—		—		851,709
Commercial real estate		553,124		77,979		39,804		—		670,907
Home equity lines of credit		123,973		—		—		22		123,995
Other		48,531		—		14		15		48,560
Total	$	20,063,652	$	177,943	$	199,982	$	10,812	$	20,452,389

	As of December 31, 2022
	Pass		Special Mention		Substandard		Doubtful		Total
Residential real estate	$	7,370,717	$	266	$	—	$	688	$	7,371,671
Commercial and industrial		4,743,290		87,761		56,899		9,226		4,897,176
Fund banking		4,182,641		—		—		—		4,182,641
Securities-based loans		2,724,548		—		—		3		2,724,551
Commercial real estate		655,599		20,000		—		—		675,599
Construction and land		593,191		—		—		—		593,191
Home equity lines of credit		106,954		—		—		182		107,136
Other		50,587		—		—		6		50,593
Total	$	20,427,527	$	108,027	$	56,899	$	10,105	$	20,602,558

Schedule of Term Loans Amortized Cost Basis by Origination Year and Revolving Cost Amortized Cost Basis

	Term Loans Amortized Cost Basis by Origination Year – September 30, 2023
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
Residential real estate:
Pass	$	1,009,765	$	2,677,509	$	2,349,447	$	934,506	$	418,909	$	565,351	$	—	$	7,955,487
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		924		—		—		—		616		—		1,540
	$	1,009,765	$	2,678,433	$	2,349,447	$	934,506	$	418,909	$	565,967	$	—	$	7,957,027
Commercial and industrial:
Pass	$	560,666	$	1,167,661	$	1,060,510	$	220,224	$	215,160	$	199,041	$	699,529	$	4,122,791
Special Mention		—		9,839		35,909		17,419		—		—		12,316		75,483
Substandard		—		26,967		74,411		—		3,913		—		54,873		160,164
Doubtful		—		—		—		433		—		8,800		—		9,233
	$	560,666	$	1,204,467	$	1,170,830	$	238,076	$	219,073	$	207,841	$	766,718	$	4,367,671
Fund banking:
Pass	$	—	$	55,267	$	—	$	578	$	—	$	—	$	4,059,044	$	4,114,889
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
	$	—	$	55,267	$	—	$	578	$	—	$	—	$	4,059,044	$	4,114,889
Securities-based loans:
Pass	$	13,954	$	28,362	$	2,503	$	48,070	$	27,278	$	9,293	$	2,188,169	$	2,317,629
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		2		2
	$	13,954	$	28,362	$	2,503	$	48,070	$	27,278	$	9,293	$	2,188,171	$	2,317,631
Construction and land:
Pass	$	26,811	$	376,902	$	191,175	$	171,049	$	61,291	$	—	$	—	$	827,228
Special Mention		—		—		—		—		24,481		—		—		24,481
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		—		—
	$	26,811	$	376,902	$	191,175	$	171,049	$	85,772	$	—	$	—	$	851,709
Commercial real estate:
Pass	$	30,849	$	356,640	$	64,064	$	31,201	$	2,785	$	67,585	$	—	$	553,124
Special Mention		—		60,000		—		—		17,979		—		—		77,979
Substandard		—		—		39,804		—		—		—		—		39,804
Doubtful		—		—		—		—		—		—		—		—
	$	30,849	$	416,640	$	103,868	$	31,201	$	20,764	$	67,585	$	—	$	670,907
Home equity lines of credit:
Pass	$	—	$	—	$	—	$	—	$	—	$	—	$	123,973	$	123,973
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—
Doubtful		—		—		—		—		—		—		22		22
	$	—	$	—	$	—	$	—	$	—	$	—	$	123,995	$	123,995
Other:
Pass	$	4,000	$	3,991	$	—	$	10,000	$	—	$	22,555	$	7,985	$	48,531
Special Mention		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		14		14
Doubtful		—		—		—		—		—		—		15		15
	$	4,000	$	3,991	$	—	$	10,000	$	—	$	22,555	$	8,014	$	48,560