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Loans (Tables)

6 Months Ended

Jun. 30, 2020



	June 30,	December 31,
	2020	2019

SBL non-real estate	$ 293,692	$ 84,579
SBL commercial mortgage	259,020	218,110
SBL construction	33,193	45,310
Small business loans *	585,905	347,999
Direct lease financing	422,505	434,460
SBLOC / IBLOC **	1,287,350	1,024,420
Advisor financing ***	15,529	-
Other specialty lending	2,706	3,055
Other consumer loans ****	4,003	4,554
	2,317,998	1,814,488
Unamortized loan fees and costs	4,739	9,757
Total loans, net of unamortized loan fees and costs	$ 2,322,737	$ 1,824,245


	June 30,	December 31,
	2020	2019

SBL loans, including deferred fees and costs of ($1,970) and $4,215
for June 30, 2020 and December 31, 2019, respectively	$ 583,935	$ 352,214
SBL loans included in held-for-sale	225,401	220,358
Total small business loans	$ 809,336	$ 572,572

* The preceding table shows small business loans, or SBL and SBL held-for-sale at the dates indicated (in thousands). Included in SBL non-real estate loans are $207.9 million of Paycheck Protection Program loans with estimated lives of less than one year. While the majority of SBL are comprised of SBA loans, SBL also includes $22.4 million of non-SBA loans as of June 30, 2020 and $17.0 million at December 31, 2019.

** Securities Backed Lines of Credit, or SBLOC, are collateralized by marketable securities, while Insurance Backed Lines of Credit, or IBLOC, are collateralized by the cash surrender value of insurance policies. At June 30, 2020 and December 31, 2019, respectively, IBLOC loans amounted to $284.3 million and $144.6 million.

*** In 2020, the Company began originating loans to investment advisors for purposes of debt refinance, acquisition of another firm or internal succession. Maximum loan amounts are subject to loan-to-value ratios of 70%, based on third party business appraisals, but may be increased depending upon the debt service coverage ratio. Personal guarantees and blanket business liens are obtained as appropriate.

**** Included in the table above under other consumer loans are demand deposit overdrafts reclassified as loan balances totaling $361,000 and $882,000 at June 30, 2020 and December 31, 2019, respectively. Estimated overdraft charge-offs and recoveries are reflected in the allowance for credit losses.

Impaired Loans



	June 30, 2020
	Recorded ‎investment	Unpaid ‎principal ‎balance	Related ‎allowance	Average ‎recorded ‎investment	Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$ 415	$ 3,567	$ -	$ 339	$ 5
SBL commercial mortgage	2,036	2,036	-	730	-
SBL construction	-	-	-	-	-
Direct lease financing	296	296	-	5,401	-
Consumer - home equity	574	574	-	549	5
With an allowance recorded
SBL non-real estate	2,930	2,930	(1,991)	3,488	22
SBL commercial mortgage	971	971	(136)	971	-
SBL construction	711	711	(25)	711	-
Direct lease financing	2,583	2,583	(536)	831	-
Consumer - home equity	-	-	-	40	-
Total
SBL non-real estate	3,345	6,497	(1,991)	3,827	27
SBL commercial mortgage	3,007	3,007	(136)	1,701	-
SBL construction	711	711	(25)	711	-
Direct lease financing	2,879	2,879	(536)	6,232	-
Consumer - home equity	574	574	-	589	5
	$ 10,516	$ 13,668	$ (2,688)	$ 13,060	$ 32



	December 31, 2019
	Recorded ‎investment	Unpaid ‎principal ‎balance	Related ‎allowance	Average ‎recorded ‎investment	Interest ‎income ‎recognized
Without an allowance recorded
SBL non-real estate	$ 335	$ 2,717	$ -	$ 277	$ 5
SBL commercial mortgage	76	76	-	15	-
SBL construction	-	-	-	284	-
Direct lease financing	286	286	-	362	11
Consumer - home equity	489	489	-	1,161	9
With an allowance recorded
SBL non-real estate	3,804	4,371	(2,961)	3,925	30
SBL commercial mortgage	971	971	(136)	561	-
SBL construction	711	711	(36)	284	-
Direct lease financing	-	-	-	244	-
Consumer - home equity	121	121	(9)	344	-
Total
SBL non-real estate	4,139	7,088	(2,961)	4,202	35
SBL commercial mortgage	1,047	1,047	(136)	576	-
SBL construction	711	711	(36)	568	-
Direct lease financing	286	286	-	606	11
Consumer - home equity	610	610	(9)	1,505	9
	$ 6,793	$ 9,742	$ (3,142)	$ 7,457	$ 55

Summary Of Non-Accrual Loans With And Without Allowance For Credit Losses


	June 30, 2020			December 31, 2019
	Non-accrual loans with a related ACL *	Non-accrual loans without a related ACL *	Total non-accrual loans	Total non-accrual loans
SBL non-real estate	$ 2,684	$ 363	$ 3,047	$ 3,693
SBL commercial mortgage	971	2,036	3,007	1,047
SBL construction	711	-	711	711
Direct leasing	2,583	296	2,879	-
Consumer	-	313	313	345
	$ 6,949	$ 3,008	$ 9,957	$ 5,796

* Allowance for credit losses

Non-accrual Loans, Loans Past Due 90 Days And Other Real Estate Owned And Delinquent Loans By Loan Category



	June 30,	December 31,
	2020	2019

Non-accrual loans
SBL non-real estate	$ 3,047	$ 3,693
SBL commercial mortgage	3,007	1,047
SBL construction	711	711
Direct leasing	2,879	-
Consumer	313	345
Total non-accrual loans	9,957	5,796

Loans past due 90 days or more and still accruing	352	3,264
Total non-performing loans	10,309	9,060
Other real estate owned	-	-
Total non-performing assets	$ 10,309	$ 9,060

Loans Modified And Considered Troubled Debt Restructurings



	June 30, 2020			December 31, 2019
	Number	Pre-modification recorded investment	Post-modification recorded investment	Number	Pre-modification recorded investment	Post-modification recorded investment
SBL non-real estate	8	$ 944	$ 944	8	$ 1,309	$ 1,309
Direct lease financing	1	273	273	1	286	286
Consumer	2	479	479	2	489	489
Total	11	$ 1,696	$ 1,696	11	$ 2,084	$ 2,084

Loans Modified As Troubled Debt Restructurings



	June 30, 2020			December 31, 2019
	Adjusted interest rate	Extended maturity	Combined rate and maturity	Adjusted interest rate	Extended maturity	Combined rate and maturity
SBL non-real estate	$ -	$ 32	$ 912	$ -	$ 51	$ 1,258
Direct lease financing	-	273	-	-	286	-
Consumer	-	-	479	-	-	489
Total	$ -	$ 305	$ 1,391	$ -	$ 337	$ 1,747

Effect Of The Adoption Of CECL


	December 31, 2019		January 1, 2020		June 30, 2020
	Incurred loss method		CECL (day 1 adoption)		CECL
	Amount	% of Segment	Amount	% of Segment	Amount	% of Segment
Allowance for credit losses on loans and leases
SBL non real estate	$ 4,914	8.33%	$ 4,766	8.08%	$ 4,726	1.61%
SBL commercial mortgage	1,458	0.71%	2,009	0.98%	2,614	1.01%
SBL construction	432	0.95%	571	1.26%	513	1.55%
Direct lease financing	2,426	0.56%	4,788	1.10%	5,808	1.34%
SBLOC	440	0.05%	440	0.05%	501	0.05%
IBLOC	113	0.08%	72	0.05%	142	0.05%
Advisor financing	-	0.00%	-	0.00%	116	0.75%
Other specialty lending (1)	97	0.39%	170	0.40%	153	5.65%
Consumer - other	40	0.88%	58	1.27%	52	1.30%
Unallocated	318		-		-	0.00%
	$ 10,238	0.56%	$ 12,874	0.71%	$ 14,625	0.63%

Liabilities:
Allowance for credit losses on off-balance sheet credit exposures	-		569		864
Total allowance for credit losses	$ 10,238		$ 13,443		$ 15,489

(1) Included in other specialty lending are $36.6 million of SBA loans purchased for Community Reinvestment Act purposes. These loans are classified as SBL loans in our loan tables.

Summary Of Gross Loans Held For Investment By Year Of Origination And Internally Assigned Credit Grade


As of June 30, 2020	2020	2019	2018	2017	2016	Prior	Revolving loans at amortized cost	Total
SBL non real estate
Non-rated	$ 205,247	$ -					$ -	$ 205,247
Pass (I-IV)	5,484	9,701	12,809	7,124	7,887	11,923	-	54,928
Special mention	-	-	1,164	43	534	750	-	2,491
Substandard	-	43	-	635	1,386	1,929	-	3,993
Total SBL non-real estate	210,731	9,744	13,973	7,802	9,807	14,602	-	266,659

SBL commercial mortgage
Non-rated	7,037	8,795	-	-	-	-	-	15,832
Pass (I-IV)	11,840	53,823	44,165	43,370	32,767	37,966	-	223,931
Special mention	-	-	-	-	-	261	-	261
Substandard	-	-	-	-	76	8,098	-	8,174
Total SBL commercial mortgage	18,877	62,618	44,165	43,370	32,843	46,325	-	248,198

SBL construction
Non-rated	382	-	-	-	-	-	-	382
Pass (I-IV)	698	16,907	14,878	-	-	-	-	32,483
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	711	-	-	711
Total SBL construction	1,080	16,907	14,878	-	711	-	-	33,576

Direct lease financing
Non-rated	5,235	3,839	2,837	1,421	763	62	-	14,157
Pass (I-IV)	157,214	114,013	69,443	38,538	16,872	4,755	-	400,835
Special mention	-	-	-	-	8	-	-	8
Substandard	5,703	315	529	224	674	61	-	7,506
Total direct lease financing	168,152	118,167	72,809	40,183	18,317	4,878	-	422,506

SBLOC
Non-rated	-	-	-	-	-	-	19,126	19,126
Pass (I-IV)	-	-	-	-	-	-	987,668	987,668
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total SBLOC	-	-	-	-	-	-	1,006,794	1,006,794

IBLOC
Non-rated	-	-	-	-	-	-	75,814	75,814
Pass (I-IV)	-	-	-	-	-	-	208,486	208,486
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total IBLOC	-	-	-	-	-	-	284,300	284,300

Other specialty
Non-rated	2,696	-	-	-	-	-	-	2,696
Pass (I-IV)	117	3,688	7,001	7,202	7,221	13,108	-	38,337
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total other specialty	2,813	3,688	7,001	7,202	7,221	13,108	-	41,033

Advisor financing
Non-rated	140	-	-	-	-	-	-	140
Pass (I-IV)	15,529	-	-	-	-	-	-	15,529
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	-	-	-
Total advisor financing	15,669	-	-	-	-	-	-	15,669

Consumer
Non-rated	521	-	-	16	-	1,682	-	2,219
Pass (I-IV)	-	-	-	-	-	1,471	-	1,471
Special mention	-	-	-	-	-	-	-	-
Substandard	-	-	-	-	-	312	-	312
Total consumer	521	-	-	16	-	3,465	-	4,002
Total	$ 417,843	$ 211,124	$ 152,826	$ 98,573	$ 68,899	$ 82,378	$ 1,291,094	$ 2,322,737

Changes In Allowance For Loan And Lease Losses By Loan Category



	June 30, 2020
	SBL non-real estate	SBL commercial mortgage	SBL construction	Direct lease financing	SBLOC / IBLOC	Advisor financing	Other specialty lending	Other consumer loans	Unallocated	Total
Beginning 12/31/2019	$ 4,985	$ 1,472	$ 432	$ 2,426	$ 553	$ -	$ 12	$ 40	$ 318	$ 10,238
1/1 CECL adjustment	(220)	537	139	2,362	(41)	-	158	20	(318)	2,637
Charge-offs	(1,048)	-	-	(1,552)	-	-	-	-	-	(2,600)
Recoveries	60	-	-	84	-	-	-	-	-	144
Provision (credit)	949	605	(58)	2,488	131	116	(17)	(8)	-	4,206
Ending balance	$ 4,726	$ 2,614	$ 513	$ 5,808	$ 643	$ 116	$ 153	$ 52	$ -	$ 14,625

Ending balance: Individually evaluated for expected credit loss	$ 1,991	$ 136	$ 26	$ 536	$ -	$ -	$ -	$ -	$ -	$ 2,689

Ending balance: Collectively evaluated for expected credit loss	$ 2,735	$ 2,478	$ 487	$ 5,272	$ 643	$ 116	$ 153	$ 52	$ -	$ 11,936

Loans:
Ending balance	$ 293,692	$ 259,020	$ 33,193	$ 422,505	$ 1,287,350	$ 15,529	$ 2,706	$ 4,003	$ 4,739	$ 2,322,737

Ending balance: Individually evaluated for expected credit loss	$ 3,345	$ 3,007	$ 711	$ 2,879	$ -	$ -	$ -	$ 574	$ -	$ 10,516

Ending balance: Collectively evaluated for expected credit loss	$ 290,347	$ 256,013	$ 32,482	$ 419,626	$ 1,287,350	$ 15,529	$ 2,706	$ 3,429	$ 4,739	$ 2,312,221



	December 31, 2019
	SBL non-real estate	SBL commercial mortgage	SBL construction	Direct lease financing	SBLOC / IBLOC	Other specialty lending	Other consumer loans	Unallocated	Total
Beginning 1/1/2019	$ 4,636	$ 941	$ 250	$ 2,025	$ 393	$ 60	$ 108	$ 240	$ 8,653
Charge-offs	(1,362)	-	-	(528)	-	-	(1,103)	-	(2,993)
Recoveries	125	-	-	51	-	-	2	-	178
Provision (credit)	1,586	531	182	878	160	(48)	1,033	78	4,400
Ending balance	$ 4,985	$ 1,472	$ 432	$ 2,426	$ 553	$ 12	$ 40	$ 318	$ 10,238

Ending balance: Individually evaluated for impairment	$ 2,961	$ 136	$ 36	$ -	$ -	$ -	$ 9	$ -	$ 3,142

Ending balance: Collectively evaluated for impairment	$ 2,024	$ 1,336	$ 396	$ 2,426	$ 553	$ 12	$ 31	$ 318	$ 7,096	-
										-
Loans:
Ending balance	$ 84,579	$ 218,110	$ 45,310	$ 434,460	$ 1,024,420	$ 3,055	$ 4,554	$ 9,757	$ 1,824,245	-

Ending balance: Individually evaluated for impairment	$ 4,139	$ 1,047	$ 711	$ 286	$ -	$ -	$ 610	$ -	$ 6,793

Ending balance: Collectively evaluated for impairment	$ 80,440	$ 217,063	$ 44,599	$ 434,174	$ 1,024,420	$ 3,055	$ 3,944	$ 9,757	$ 1,817,452	-



	June 30, 2019
	SBL non-real estate	SBL commercial mortgage	SBL construction	Direct lease financing	SBLOC	Other specialty lending	Other consumer loans	Unallocated	Total
Beginning 1/1/2019	$ 4,636	$ 941	$ 250	$ 2,025	$ 393	$ 60	$ 108	$ 240	$ 8,653
Charge-offs	(893)	-	-	(185)	-	-	(2)	-	(1,080)
Recoveries	100	-	-	16	-	-	-	-	116
Provision (credit)	1,306	274	39	735	51	(47)	(32)	(26)	2,300
Ending balance	$ 5,149	$ 1,215	$ 289	$ 2,591	$ 444	$ 13	$ 74	$ 214	$ 9,989

Ending balance: Individually evaluated for impairment	$ 3,164	$ 71	$ -	$ 145	$ -	$ -	$ 15	$ -	$ 3,395

Ending balance: Collectively evaluated for impairment	$ 1,985	$ 1,144	$ 289	$ 2,446	$ 444	$ 13	$ 59	$ 214	$ 6,594

Loans:
Ending balance	$ 75,475	$ 189,427	$ 29,298	$ 407,907	$ 837,672	$ 3,432	$ 7,898	$ 10,342	$ 1,561,451

Ending balance: Individually evaluated for impairment	$ 4,290	$ 458	$ 710	$ 636	$ -	$ -	$ 1,726	$ -	$ 7,820

Ending balance: Collectively evaluated for impairment	$ 71,185	$ 188,969	$ 28,588	$ 407,271	$ 837,672	$ 3,432	$ 6,172	$ 10,342	$ 1,553,631

Delinquent Loans By Loan Category



	June 30, 2020
	30-59 Days	60-89 Days	90+ Days		Total		Total
	past due	past due	still accruing	Non-accrual	past due	Current	loans
SBL non-real estate	$ 2,376	$ 1,749	$ 347	$ 3,047	$ 7,519	$ 286,173	$ 293,692
SBL commercial mortgage	3,638	311	-	3,007	6,956	252,064	259,020
SBL construction	-	-	-	711	711	32,482	33,193
Direct lease financing	534	534	5	2,879	3,952	418,553	422,505
SBLOC / IBLOC	107	1,054	-	-	1,161	1,286,189	1,287,350
Advisor financing	-	-	-	-	-	15,529	15,529
Other specialty lending	-	-	-	-	-	2,706	2,706
Consumer - other	-	-	-	-	-	761	761
Consumer - home equity	-	-	-	313	313	2,929	3,242
Unamortized loan fees and costs	-	-	-	-	-	4,739	4,739
	$ 6,655	$ 3,648	$ 352	$ 9,957	$ 20,612	$ 2,302,125	$ 2,322,737

‎



	December 31, 2019
	30-59 Days	60-89 Days	90+ Days		Total		Total
	past due	past due	still accruing	Non-accrual	past due	Current	loans
SBL non-real estate	$ 36	$ 125	$ -	$ 3,693	$ 3,854	$ 80,725	$ 84,579
SBL commercial mortgage	-	1,983	-	1,047	3,030	215,080	218,110
SBL construction	-	-	-	711	711	44,599	45,310
Direct lease financing	2,008	2,692	3,264	-	7,964	426,496	434,460
SBLOC / IBLOC	290	75	-	-	365	1,024,055	1,024,420
Other specialty lending	-	-	-	-	-	3,055	3,055
Consumer - other	-	-	-	-	-	1,137	1,137
Consumer - home equity	-	-	-	345	345	3,072	3,417
Unamortized loan fees and costs	-	-	-	-	-	9,757	9,757
	$ 2,334	$ 4,875	$ 3,264	$ 5,796	$ 16,269	$ 1,807,976	$ 1,824,245

Loans By Categories



	Pass	Special mention	Substandard	Doubtful	Loss	Unrated subject to review *	Unrated not subject to review *	Total loans
SBL non-real estate	$ 76,108	$ 3,045	$ 4,430	$ -	$ -	$ -	$ 996	$ 84,579
SBL commercial mortgage	208,809	2,249	5,577	-	-	-	1,475	218,110
SBL construction	44,599	-	711	-	-	-	-	45,310
Direct lease financing	420,289	-	8,792	-	-	-	5,379	434,460
SBLOC / IBLOC	942,858	-	-	-	-	-	81,562	1,024,420
Other specialty lending	3,055	-	-	-	-	-	-	3,055
Consumer	2,545	-	345	-	-	-	1,664	4,554
Unamortized loan fees and costs	-	-	-	-	-	-	9,757	9,757
	$ 1,698,263	$ 5,294	$ 19,855	$ -	$ -	$ -	$ 100,833	$ 1,824,245

* For information on targeted loan review thresholds see “Allowance for Loan Losses” in the 2019 Form 10-K Report in the loans footnote and in this Form 10-Q in the Management’s Discussion and Analysis of Financial Condition and Results of Operations.